UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
July
27, 2023
Barclays PLC
(Name
of Registrant)
1 Churchill Place
London E14 5HP
England
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F.
Form
20-F x Form 40-F
This
Report on Form 6-K is filed by Barclays PLC.
This
Report comprises:
Information
given to The London Stock Exchange and furnished pursuant
to
General
Instruction B to the General Instructions to Form 6-K.
EXHIBIT
INDEX
__________________________________________________________________________________
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.
|
BARCLAYS
PLC
|
|
(Registrant)
|
Date:
July 27, 2023
|
By: /s/
Garth Wright
--------------------------------
|
|
Garth
Wright
|
|
Assistant
Secretary
|
Exhibit
No. 1
Barclays PLC
Interim Results Announcement
30 June 2023
Results Announcement
|
Page
|
|
|
Notes
|
1
|
|
|
Performance Highlights
|
2
|
|
|
Group Finance Director’s Review
|
6
|
|
|
Results by Business
|
|
|
|
●
Barclays UK
|
8
|
|
|
●
Barclays
International
|
11
|
|
|
●
Head Office
|
16
|
|
|
Quarterly Results Summary
|
17
|
|
|
Quarterly Results by Business
|
18
|
|
|
Performance Management
|
|
|
|
●
Margins and
Balances
|
24
|
|
|
Risk Management
|
|
|
|
●
Risk Management and Principal
Risks
|
25
|
|
|
●
Credit Risk
|
26
|
|
|
●
Market Risk
|
48
|
|
|
●
Treasury and Capital
Risk
|
49
|
|
|
Statement of Directors' Responsibilities
|
59
|
|
|
Independent Review Report to Barclays PLC
|
60
|
|
|
Condensed Consolidated Financial Statements
|
62
|
|
|
Financial Statement Notes
|
68
|
|
|
Appendix: Non-IFRS Performance Measures
|
89
|
|
|
Shareholder Information
|
96
|
BARCLAYS PLC, 1
CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44
(0) 20 7116 1000. COMPANY NO. 48839.
The
terms Barclays and Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the six months ended 30 June 2023 to the
corresponding six months of 2022 and balance sheet analysis as at
30 June 2023 with comparatives relating to 31 December 2022 and 30
June 2022. 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, which can
be accessed at home.barclays/investor-relations.
The
information in this announcement, which was approved by the Board
of Directors on 26 July 2023, does not comprise statutory accounts
within the meaning of Section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2022, 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) will be 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 89 to
95 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. 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 directors,
officers and employees of the Group (including during management
presentations) 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 levels, costs, assets and liabilities,
impairment charges, provisions, capital, leverage and other
regulatory ratios, capital distributions (including dividend policy
and share buybacks), return on tangible equity, projected levels of
growth in banking and financial markets, industry trends, any
commitments and targets (including environmental, social and
governance (ESG) commitments and targets), business strategy, plans
and objectives for future operations and other statements that are
not historical or current facts. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. 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, regulation and the
interpretation thereof, changes in IFRS and other accounting
standards, including practices with regard to the interpretation
and application thereof and emerging and developing ESG reporting
standards; the outcome of current and future legal proceedings and
regulatory investigations; 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 incidents and similar events beyond the
Group’s control; the impact of competition; capital, leverage
and other regulatory rules applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business
conditions, including inflation; volatility in credit and capital
markets; market related risks such as changes in interest rates and
foreign exchange rates; higher or lower asset valuations; changes
in credit ratings of any entity within the Group or any securities
issued by it; changes in counterparty risk; changes in consumer
behaviour; 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 any
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; the Group’s ability to access funding; and the
success of acquisitions, disposals and other strategic
transactions. A number of these factors are beyond the
Group’s control. As a result, the Group’s actual
financial position, results, financial and non-financial metrics or
performance measures or its 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 financial year ended
31 December 2022), which are available on the SEC’s website
at www.sec.gov.
Subject to Barclays PLC’s 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 return on tangible equity (RoTE) of 11.4% in
Q223 and 13.2% in H123, with a half year dividend of 2.7p per share
and intends to initiate a share buyback of up to
£750m
C. S. Venkatakrishnan, Group Chief Executive,
commented
“We have positioned Barclays carefully for this mixed
macroeconomic environment and delivered a consistent performance in
the second quarter. Through our diverse sources of income, prudent
risk management, and ongoing cost discipline we have again
demonstrated the stability and strength of the franchise we have
built over many years. This means we are able to distribute
increased capital returns to shareholders, while providing targeted
support to our customers and clients. Looking forward we are very
confident of meeting our targets for the full
year.”
|
●
|
Q223
RoTE of 11.4% and H123 of
13.2%, with double-digit RoTE across all operating
divisions in both periods
|
●
|
Announced H123 dividend of 2.7p per share and a share buyback of up
to £750m
|
●
|
Strong balance sheet with Common Equity Tier 1 (CET1) ratio of
13.8% and Liquidity Coverage Ratio (LCR) of 158%
|
Key financial metrics:
|
Income
|
Cost: income ratio
|
LLR
|
Profit before tax
|
Attributable profit
|
RoTE
|
EPS
|
TNAV per share
|
CET1 ratio
|
Total capital
return1
|
Q223
|
£6.3bn
|
63%
|
37bps
|
£2.0bn
|
£1.3bn
|
11.4%
|
8.6p
|
291p
|
13.8%
|
c.7.5p
|
H123
|
£13.5bn
|
60%
|
44bps
|
£4.6bn
|
£3.1bn
|
13.2%
|
19.9p
|
Q223 Performance highlights:
●
|
Group RoTE of 11.4% with profit before tax increased to
£2.0bn
(Q222: £1.5bn). The prior year includes impacts from
the Over-issuance of Securities2; £0.8bn income
gain and £1.1bn litigation and conduct charges. Excluding
these impacts
|
|
–
|
Group income, up 6% year-on-year to £6.3bn, reflects diverse sources of income
across Barclays:
|
|
|
–
|
Barclays UK income increased 14% to £2.0bn, primarily
driven by net interest income growth from higher rates, including
continued structural hedge income, partially offset by product
dynamics in deposits and mortgages
|
|
|
–
|
Corporate and Investment Bank (CIB) income decreased
3%
to £3.2bn, reflecting
lower client activity in Global Markets and Investment Banking
fees, more than offsetting a strong performance in Transaction
Banking from higher rates
|
|
|
–
|
Consumer, Cards and Payments (CC&P) increased 18% to £1.3bn reflecting
higher balances in US cards (including the Gap
portfolio3),
growth in client assets and liabilities, and higher rates in
Private Bank
|
|
–
|
Group total operating expenses were £4.0bn, up 2% year-on-year, as inflation and business
growth were partially offset by efficiency savings and lower
litigation and conduct charges
|
|
|
–
|
Cost:
income ratio was 63% as the
Group delivered positive cost: income jaws
|
●
|
Credit impairment charges were £0.4bn, with a loss loan rate (LLR) of
37bps
|
●
|
CET1 ratio of 13.8%, based on broadly stable risk weighted
assets (RWAs) of £336.9bn,
and tangible net asset value (TNAV) per share of 291p
|
H123 Performance highlights:
●
|
Group RoTE was 13.2%, well positioned to achieve our greater
than 10% target for 2023
|
●
|
Excluding the impact of Over-issuance of Securities in the prior
year4:
|
|
–
|
Group income of £13.5bn,
up 9% year-on-year
|
|
–
|
Group total operating expenses were £8.1bn, up 5% year-on-year. Cost: income ratio of
60%, consistent with full year
guidance of low 60s in 2023
|
●
|
Credit impairment charges were £0.9bn, reflecting the anticipated normalising
of charges, with an LLR of 44bps; maintaining expectation of 50-60bps
LLR for 2023
|
●
|
On a
statutory basis:
|
|
–
|
Group
income was £13.5bn, up
2% year-on-year
|
|
–
|
Group
total operating expenses were £8.1bn, down 12% year-on-year
|
1
|
Includes dividend for H123 of 2.7p per share and share buyback
announced in relation to H123 of £750m.
|
2
|
Denotes the Over-issuance of Securities under Barclays Bank PLC's
US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019. See
page 5 for reconciliation of ex. Over-issuance of Securities
performance.
|
3
|
The Gap portfolio refers to the Gap Inc. US credit card
portfolio
|
4
|
H122 impacts from the Over-Issuance of Securities; £0.8bn
income gain and £1.5bn litigation and conduct
charges.
|
Group Targets and Outlook:
●
|
Returns: targeting RoTE of
greater than 10% in 2023, consistent with our medium-term
target
|
●
|
Income: diversified income
streams continue to position the Group well for the current
economic and market environment including higher interest rates. In
2023, Barclays UK Net Interest Margin (NIM) is now expected to be
less than 3.20%, with a current view of around 3.15%.
Guidance remains sensitive to product dynamics including the
trajectory of deposit balances and further macroeconomic
developments
|
●
|
Costs: targeting a cost: income
ratio percentage in the low 60s in 2023, investing for growth
whilst progressing towards the Group’s medium-term target of
below 60%
|
●
|
Impairment: expect an LLR of
50-60bps in 2023, based on the current macroeconomic
outlook
|
●
|
Capital: expect to operate
within the CET1 ratio medium-term target range of
13-14%
|
●
|
Capital returns: capital
distribution policy incorporates a progressive ordinary dividend,
supplemented with share buybacks as appropriate
|
Barclays Group results
|
Half year ended
|
|
Three months ended
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Barclays UK
|
3,922
|
3,373
|
16
|
|
1,961
|
1,724
|
14
|
Corporate
and Investment Bank
|
7,138
|
7,971
|
(10)
|
|
3,162
|
4,033
|
(22)
|
Consumer,
Cards and Payments
|
2,584
|
1,969
|
31
|
|
1,278
|
1,083
|
18
|
Barclays International
|
9,722
|
9,940
|
(2)
|
|
4,440
|
5,116
|
(13)
|
Head Office
|
(122)
|
(109)
|
(12)
|
|
(116)
|
(132)
|
12
|
Total income
|
13,522
|
13,204
|
2
|
|
6,285
|
6,708
|
(6)
|
Operating costs
|
(8,030)
|
(7,270)
|
(10)
|
|
(3,919)
|
(3,682)
|
(6)
|
Litigation and conduct
|
(32)
|
(1,857)
|
98
|
|
(33)
|
(1,334)
|
98
|
Total operating expenses
|
(8,062)
|
(9,127)
|
12
|
|
(3,952)
|
(5,016)
|
21
|
Other net (expenses)/income
|
(2)
|
(3)
|
33
|
|
3
|
7
|
(57)
|
Profit before impairment
|
5,458
|
4,074
|
34
|
|
2,336
|
1,699
|
37
|
Credit impairment charges
|
(896)
|
(341)
|
|
|
(372)
|
(200)
|
(86)
|
Profit before tax
|
4,562
|
3,733
|
22
|
|
1,964
|
1,499
|
31
|
Tax charge
|
(914)
|
(823)
|
(11)
|
|
(353)
|
(209)
|
(69)
|
Profit after tax
|
3,648
|
2,910
|
25
|
|
1,611
|
1,290
|
25
|
Non-controlling interests
|
(30)
|
(21)
|
(43)
|
|
(22)
|
(20)
|
(10)
|
Other equity instrument holders
|
(507)
|
(414)
|
(22)
|
|
(261)
|
(199)
|
(31)
|
Attributable profit
|
3,111
|
2,475
|
26
|
|
1,328
|
1,071
|
24
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
13.2%
|
10.1%
|
|
|
11.4%
|
8.7%
|
|
Average tangible shareholders' equity (£bn)
|
47.2
|
48.9
|
|
|
46.7
|
49.0
|
|
Cost: income ratio
|
60%
|
69%
|
|
|
63%
|
75%
|
|
Loan loss rate (bps)
|
44
|
17
|
|
|
37
|
20
|
|
Basic earnings per share
|
19.9p
|
14.8p
|
|
|
8.6p
|
6.4p
|
|
Dividend per share
|
2.7p
|
2.25p
|
|
|
|
|
|
Share buyback announced (£m)
|
750
|
500
|
|
|
|
|
|
Total payout equivalent per share
|
c.7.5p
|
c.5.25p
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
15,645
|
16,684
|
(6)
|
|
15,523
|
16,684
|
(7)
|
Period end number of shares (m)
|
15,556
|
16,531
|
(6)
|
|
15,556
|
16,531
|
(6)
|
|
As at 30.06.23
|
As at 31.12.22
|
As at 30.06.22
|
Balance sheet and capital management1
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
401.4
|
398.8
|
395.8
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.4%
|
1.4%
|
1.4%
|
Total assets
|
1,549.7
|
1,513.7
|
1,589.2
|
Deposits at amortised cost
|
554.7
|
545.8
|
568.7
|
Tangible net asset value per share
|
291p
|
295p
|
297p
|
Common equity tier 1 ratio
|
13.8%
|
13.9%
|
13.6%
|
Common equity tier 1 capital
|
46.6
|
46.9
|
46.7
|
Risk weighted assets
|
336.9
|
336.5
|
344.5
|
UK leverage ratio
|
5.1%
|
5.3%
|
5.1%
|
UK leverage exposure
|
1,183.7
|
1,130.0
|
1,151.2
|
|
|
|
|
Funding and liquidity
|
|
|
|
Group liquidity pool (£bn)
|
330.7
|
318.0
|
342.5
|
Liquidity coverage ratio
|
158%
|
165%
|
156%
|
Net
stable funding ratio2
|
139%
|
137%
|
|
Loan: deposit ratio
|
72%
|
73%
|
70%
|
1
|
Refer to pages 14 to 59 for further information on how capital,
RWAs and leverage are calculated.
|
2
|
Represents average of the last four spot quarter end
positions
|
Reconciliation of financial results excluding the impact of the
Over-issuance of Securities in the prior year
|
|
|
|
Three months ended
|
30.06.23
|
|
30.06.22
|
|
|
|
Statutory
|
|
Statutory
|
Impact of the Over-issuance
of Securities
|
Excluding impact of
the Over-issuance
of Securities
|
|
|
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
1,961
|
|
1,724
|
—
|
1,724
|
|
14
|
Corporate
and Investment Bank
|
3,162
|
|
4,033
|
758
|
3,275
|
|
(3)
|
Consumer,
Cards and Payments
|
1,278
|
|
1,083
|
—
|
1,083
|
|
18
|
Barclays International
|
4,440
|
|
5,116
|
758
|
4,358
|
|
2
|
Head Office
|
(116)
|
|
(132)
|
—
|
(132)
|
|
12
|
Total income
|
6,285
|
|
6,708
|
758
|
5,950
|
|
6
|
Operating
costs
|
(3,919)
|
|
(3,682)
|
—
|
(3,682)
|
|
(6)
|
Litigation
and conduct
|
(33)
|
|
(1,334)
|
(1,149)
|
(185)
|
|
82
|
Total operating expenses
|
(3,952)
|
|
(5,016)
|
(1,149)
|
(3,867)
|
|
(2)
|
Other net income
|
3
|
|
7
|
—
|
7
|
|
(57)
|
Profit before impairment
|
2,336
|
|
1,699
|
(391)
|
2,090
|
|
12
|
Credit impairment charges
|
(372)
|
|
(200)
|
—
|
(200)
|
|
(86)
|
Profit before tax
|
1,964
|
|
1,499
|
(391)
|
1,890
|
|
4
|
Attributable profit
|
1,328
|
|
1,071
|
(341)
|
1,412
|
|
(6)
|
|
|
|
|
|
|
|
|
Average tangible shareholders' equity (£bn)
|
46.7
|
|
49.0
|
|
49.0
|
|
|
Return on average tangible shareholders' equity
|
11.4%
|
|
8.7%
|
|
11.5%
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
30.06.23
|
|
30.06.22
|
|
|
|
Statutory
|
|
Statutory
|
Impact of the Over-issuance
of Securities
|
Excluding impact of
the Over-issuance of Securities
|
|
|
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
3,922
|
|
3,373
|
—
|
3,373
|
|
16
|
Corporate
and Investment Bank
|
7,138
|
|
7,971
|
758
|
7,213
|
|
(1)
|
Consumer,
Cards and Payments
|
2,584
|
|
1,969
|
—
|
1,969
|
|
31
|
Barclays International
|
9,722
|
|
9,940
|
758
|
9,182
|
|
6
|
Head Office
|
(122)
|
|
(109)
|
—
|
(109)
|
|
(12)
|
Total income
|
13,522
|
|
13,204
|
758
|
12,446
|
|
9
|
Operating
costs
|
(8,030)
|
|
(7,270)
|
—
|
(7,270)
|
|
(10)
|
Litigation
and conduct
|
(32)
|
|
(1,857)
|
(1,469)
|
(388)
|
|
92
|
Total operating expenses
|
(8,062)
|
|
(9,127)
|
(1,469)
|
(7,658)
|
|
(5)
|
Other net expenses
|
(2)
|
|
(3)
|
—
|
(3)
|
|
33
|
Profit before impairment
|
5,458
|
|
4,074
|
(711)
|
4,785
|
|
14
|
Credit impairment charges
|
(896)
|
|
(341)
|
—
|
(341)
|
|
|
Profit before tax
|
4,562
|
|
3,733
|
(711)
|
4,444
|
|
3
|
Attributable profit
|
3,111
|
|
2,475
|
(581)
|
3,056
|
|
2
|
|
|
|
|
|
|
|
|
Average tangible shareholders' equity (£bn)
|
47.2
|
|
48.9
|
|
48.9
|
|
|
Return on average tangible shareholders' equity
|
13.2%
|
|
10.1%
|
|
12.5%
|
|
|
Group Finance Director’s Review
H123 Group performance
●
|
Barclays delivered a profit before tax of £4,562m (H122:
£3,733m), RoTE of 13.2% (H122: 10.1%) and earnings per share
(EPS) of 19.9p (H122: 14.8p)
|
●
|
The Group has a diverse income profile across businesses and
geographies including a significant presence in the US.
The appreciation of average USD
against GBP positively impacted income and profits and adversely
impacted credit impairment charges and total operating
expenses
|
●
|
Group income increased 2% to £13,522m
primarily from the higher interest
rate environment, including continued structural hedge income, and
the benefit of higher balances in US cards, partially offset by the
prior year benefit from hedging arrangements related to the
Over-issuance of Securities and lower client activity in Global
Markets and Investment Banking fees
|
●
|
Group total operating expenses
decreased to £8,062m
(H122: £9,127m)
|
|
–
|
Group
operating expenses excluding litigation and conduct charges
increased to £8,030m
(H122: £7,270m)
reflecting the impact of business
growth, including the Gap portfolio acquisition in US cards and the
Kensington Mortgage Company (KMC) acquisition in Barclays UK, with
the impact of inflation broadly offset by efficiency
savings
|
|
–
|
Litigation
and conduct charges decreased to £32m (H122: £1,857m). The prior year charges
included £1,469m of costs related to the Over-issuance of
Securities
|
●
|
Credit impairment charges were £896m (H122:
£341m), reflecting higher
US cards balances and normalising delinquencies. Total
coverage ratio remains strong at 1.4% (December 2022: 1.4%)
|
●
|
The effective tax rate (ETR) was 20.0% (H122: 22.0%).
The prior year included the tax charge
recognised for the re-measurement of the Group’s UK deferred
tax assets as a result of the UK banking surcharge rate being
reduced from 8% to 3%
|
●
|
Attributable profit was £3,111m (H122:
£2,475m)
|
●
|
Total assets increased to £1,549.7bn
(December 2022: £1,513.7bn)
driven by increased trading and client activity within Global
Markets, partially offset by the strengthening of GBP against USD
since December 2022. The Group liquidity pool was further
strengthened by growth in deposits
|
●
|
TNAV per share was
291p (December
2022: 295p) as EPS of
19.9p was more than offset by the 2022 full year dividend
paid on 31 March 2023 and net negative reserve movements driven by
currency movements and the interest rate environment
|
Capital distributions
●
|
Announced
a half year dividend of 2.7p per share and intention to initiate a
further share buyback of up to £750m
|
●
|
Barclays
is committed to maintaining a balance between a strong capital
position, delivering total cash returns to shareholders and
investment in the business. 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 dividend as appropriate, including with share
buybacks
|
Group capital and leverage
●
|
The CET1 ratio decreased by c.10bps to 13.8% (December 2022: 13.9%)
as CET1 capital decreased to £46.6bn (December 2022:
£46.9bn) whilst RWAs remained broadly stable at
£336.9bn:
|
|
–
|
c.90bps increase from attributable profit generated in the
period
|
|
–
|
c.40bps aggregate decrease from expected capital impacts in Q123,
including the £0.5bn share buyback announced at FY22 results,
the impact of regulatory change on 1 January 2023 relating to IFRS
9 transitional relief, and the impact of the KMC
acquisition
|
|
–
|
c.30bps decrease as a result of a £8.6bn increase in RWAs
primarily driven by increased trading and credit risk RWAs within
CIB
|
|
–
|
c.30bps decrease primarily due to increased regulatory capital
deductions largely driven by an accrual for the FY23
dividend
|
|
–
|
An £8.8bn decrease in RWAs as a result of foreign exchange
movements was broadly offset by a £1.2bn decrease in CET1
capital due to a decrease in the currency translation
reserve
|
●
|
The UK leverage ratio decreased to 5.1% (December 2022: 5.3%)
primarily due to a £53.7bn increase in leverage exposure to
£1,183.7bn (December 2022: £1,130.0bn). This is largely
driven by increased trading and client activity within Global
Markets
|
Group funding and liquidity
●
|
The
liquidity and funding position remains robust and stable in H123.
The liquidity pool increased to £330.7bn (December 2022:
£318.0bn) driven by deposit growth. The composition of the
liquidity pool is conservative, with 80% held in cash and deposits
with central banks and the remainder primarily held in high quality
government bonds, materially held at fair value or
hedged
|
●
|
The
strength of the funding and liquidity position is supported by a
diverse and stable deposit franchise. Total deposits increased to
£554.7bn (December 2022:
£545.8bn)
|
●
|
The LCR
remained significantly above the 100% regulatory requirement at
158% (December 2022: 165%),
equivalent to a surplus of £115.3bn (December 2022:
£116.4bn)
|
●
|
Net
Stable Funding Ratio (average of last four quarter ends) was 139%
(December 2022: 137%), which represents a £166.6bn
(December 2022: £155.6bn)
surplus above the 100% regulatory requirement
|
●
|
Wholesale
funding outstanding, excluding repurchase agreements, was
£183.3bn (December 2022: £184.0bn)
|
●
|
The
Group issued £7.1bn
equivalent of minimum requirement for own funds and eligible
liabilities (MREL) instruments from Barclays PLC (the Parent
company) in H123. The Group has a strong MREL position with a ratio
of 32.9%, which is in excess of the regulatory requirement of 29.2%
plus a confidential, institution specific, Prudential Regulation
Authority (PRA) buffer
|
Other matters
●
|
KMC acquisition: on 1 March 2023 Barclays completed the
acquisition of UK specialist mortgage lender KMC, including a
portfolio of mortgages totalling £2.2bn with an RWA impact of
£0.8bn
|
●
|
Combination of the Private Bank and Barclays UK Wealth
business: on 1 May 2023, Wealth
Management & Investments (WM&I) was transferred from
Barclays UK to CC&P, creating a combined Private Bank and
Wealth Management business. The combination seeks to improve
customer and client experience and create business
synergies:
|
|
–
|
The
business transferred includes c.£28bn of invested assets,
generating annualised income of c.£0.2bn
|
|
|
–
|
Excluding
the transfer, Q223 Barclays UK income would have been c.£35m
higher, NIM c.2bps higher and operating costs c.£35m higher,
with corresponding impacts to income and operating costs for
CC&P
|
|
Anna Cross, Group Finance Director
Results by Business
Barclays UK
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
3,278
|
2,732
|
20
|
|
1,660
|
1,393
|
19
|
Net fee, commission and other income
|
644
|
641
|
—
|
|
301
|
331
|
(9)
|
Total income
|
3,922
|
3,373
|
16
|
|
1,961
|
1,724
|
14
|
Operating costs
|
(2,182)
|
(2,083)
|
(5)
|
|
(1,090)
|
(1,085)
|
—
|
Litigation and conduct
|
3
|
(25)
|
|
|
5
|
(16)
|
|
Total operating expenses
|
(2,179)
|
(2,108)
|
(3)
|
|
(1,085)
|
(1,101)
|
1
|
Other net income
|
—
|
—
|
|
|
—
|
—
|
#DIV/0!
|
Profit before impairment
|
1,743
|
1,265
|
38
|
|
876
|
623
|
41
|
Credit impairment charges
|
(208)
|
(48)
|
|
|
(95)
|
—
|
|
Profit before tax
|
1,535
|
1,217
|
26
|
|
781
|
623
|
25
|
Attributable profit
|
1,049
|
854
|
23
|
|
534
|
458
|
17
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
20.4%
|
17.0%
|
|
|
20.9%
|
18.4%
|
|
Average allocated tangible equity (£bn)
|
10.3
|
10.0
|
|
|
10.2
|
10.0
|
|
Cost: income ratio
|
56%
|
62%
|
|
|
55%
|
64%
|
|
Loan loss rate (bps)
|
18
|
4
|
|
|
17
|
—
|
|
Net interest margin
|
3.20%
|
2.67%
|
|
|
3.22%
|
2.71%
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
UK mortgage balances (£bn)
|
163.6
|
159.6
|
|
|
|
|
|
Mortgage gross lending flow (£bn)
|
12.2
|
13.9
|
|
|
|
|
|
Average
loan to value of mortgage portfolio1
|
53%
|
51%
|
|
|
|
|
|
Average
loan to value of new mortgage lending1
|
63%
|
69%
|
|
|
|
|
|
Number of branches
|
414
|
593
|
|
|
|
|
|
Mobile banking active customers (m)
|
10.8
|
10.1
|
|
|
|
|
|
30 day arrears rate - Barclaycard Consumer UK
|
0.9%
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
30.06.23
|
As at
31.12.22
|
As at
30.06.22
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Loans and advances to customers at amortised cost
|
206.8
|
205.1
|
205.9
|
|
|
|
|
Total assets
|
304.8
|
313.2
|
318.8
|
|
|
|
|
Customer deposits at amortised cost
|
249.8
|
258.0
|
261.5
|
|
|
|
|
Loan: deposit ratio
|
90%
|
87%
|
85%
|
|
|
|
|
Risk weighted assets
|
73.0
|
73.1
|
72.2
|
|
|
|
|
Period end allocated tangible equity
|
10.1
|
10.1
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Average loan to value of mortgages is balance weighted and reflects
both residential and buy-to-let mortgage portfolios within the Home
Loans portfolio.
|
Analysis of Barclays UK
|
Half year ended
|
|
Three months ended
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Personal Banking
|
2,497
|
2,099
|
19
|
|
1,244
|
1,077
|
16
|
Barclaycard Consumer UK
|
484
|
541
|
(11)
|
|
237
|
265
|
(11)
|
Business Banking
|
941
|
733
|
28
|
|
480
|
382
|
26
|
Total income
|
3,922
|
3,373
|
16
|
|
1,961
|
1,724
|
14
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
Personal Banking
|
(120)
|
(21)
|
|
|
(92)
|
(42)
|
|
Barclaycard Consumer UK
|
(118)
|
40
|
|
|
(35)
|
84
|
|
Business Banking
|
30
|
(67)
|
|
|
32
|
(42)
|
|
Total credit impairment charges
|
(208)
|
(48)
|
|
|
(95)
|
—
|
|
|
|
|
|
|
|
|
|
|
As at
30.06.23
|
As at
31.12.22
|
As at
30.06.22
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Personal Banking
|
173.3
|
169.7
|
167.1
|
|
|
|
|
Barclaycard Consumer UK
|
9.3
|
9.2
|
8.8
|
|
|
|
|
Business Banking
|
24.2
|
26.2
|
30.0
|
|
|
|
|
Total loans and advances to customers at amortised
cost
|
206.8
|
205.1
|
205.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
Personal Banking
|
191.1
|
195.6
|
197.0
|
|
|
|
|
Barclaycard Consumer UK
|
—
|
—
|
—
|
|
|
|
|
Business Banking
|
58.7
|
62.4
|
64.5
|
|
|
|
|
Total customer deposits at amortised cost
|
249.8
|
258.0
|
261.5
|
|
|
|
|
Barclays UK delivered a RoTE of 20.4% supported by the higher interest rate environment
and the continued investment in our transformation into a
next-generation, digitised consumer bank. The challenging
environment has persisted with customer behaviour driving a
reduction in the NIM outlook.
Income statement - H123 compared to H122
●
|
Profit before tax increased 26% to £1,535m with a RoTE of
20.4% (H122: 17.0%)
|
●
|
Total income increased 16% to £3,922m. Net
interest income increased
20% to £3,278m with a NIM of 3.20% (H122:
2.67%), as higher interest
rates and associated structural hedge benefit outweighed mortgage
margin pressure and lower deposit volumes. Net fee, commission and
other income was stable at £644m, including the impact of the
transfer of WM&I to CC&P
|
|
–
|
Personal
Banking income increased
19% to £2,497m, driven by higher interest
rates, partially offset by mortgage margin compression and lower
current accounts deposit volumes in line with wider market trends
and cost of living pressures
|
|
|
–
|
Barclaycard
Consumer UK income decreased
11% to £484m as higher customer spend volumes
were more than offset by lower interest earning lending balances
following repayments and ongoing prudent risk
management
|
|
|
–
|
Business
Banking income increased
28% to £941m driven by higher interest rates,
partially offset by lower government scheme lending as repayments
continue and lower deposit volumes in line with wider market
trends
|
|
●
|
Total operating expenses increased 3% to £2,179m from the impact of inflation,
partially offset by the transfer of WM&I to CC&P. Ongoing
efficiency savings continue to be reinvested in digitisation to
support further improvements to the cost: income ratio over
time
|
●
|
Credit impairment charges increased to £208m (H122: £48m), driven by UK cards and Mortgages. The
updated macroeconomic scenarios reflect improvement in GDP and
unemployment outlook against a backdrop of higher interest rates
and a weaker House Price Index (HPI). UK cards 30 and 90 day
arrears remained low at 0.9%
(H122: 1.0%) and 0.2% (H122:
0.2%) respectively. The UK cards total coverage ratio was
7.1% (December 2022: 7.6%)
|
Balance sheet - 30 June 2023 compared to 31 December
2022
●
|
Loans and advances to customers at amortised cost
increased 1% to £206.8bn primarily
reflecting the acquisition of KMC and continued mortgage lending,
which more than offset repayment of government scheme lending in
Business Banking
|
●
|
Customer deposits at amortised cost decreased 3% to £249.8bn.
Increases in savings product balances were more than offset by
reduced current account and Business Banking deposits, reflecting
broader market trends. The loan: deposit ratio increased to
90% (December 2022:
87%)
|
●
|
RWAs were broadly stable at £73.0bn
(December 2022: £73.1bn) including a capital Loss Given Default
(LGD) model update for the mortgages portfolio, partially offset by
the acquisition of KMC
|
Barclays International
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
3,084
|
1,965
|
57
|
|
1,730
|
1,029
|
68
|
Net trading income
|
3,697
|
5,212
|
(29)
|
|
1,278
|
2,766
|
(54)
|
Net fee, commission and other income
|
2,941
|
2,763
|
6
|
|
1,432
|
1,321
|
8
|
Total income
|
9,722
|
9,940
|
(2)
|
|
4,440
|
5,116
|
(13)
|
Operating costs
|
(5,703)
|
(5,042)
|
(13)
|
|
(2,747)
|
(2,537)
|
(8)
|
Litigation and conduct
|
(30)
|
(1,832)
|
98
|
|
(33)
|
(1,319)
|
97
|
Total operating expenses
|
(5,733)
|
(6,874)
|
17
|
|
(2,780)
|
(3,856)
|
28
|
Other net income
|
9
|
13
|
(31)
|
|
6
|
5
|
20
|
Profit before impairment
|
3,998
|
3,079
|
30
|
|
1,666
|
1,265
|
32
|
Credit impairment charges
|
(679)
|
(310)
|
|
|
(275)
|
(209)
|
(32)
|
Profit before tax
|
3,319
|
2,769
|
20
|
|
1,391
|
1,056
|
32
|
Attributable profit
|
2,301
|
2,083
|
10
|
|
953
|
783
|
22
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
12.4%
|
11.5%
|
|
|
10.3%
|
8.4%
|
|
Average allocated tangible equity (£bn)
|
37.1
|
36.2
|
|
|
37.1
|
37.3
|
|
Cost: income ratio
|
59%
|
69%
|
|
|
63%
|
75%
|
|
Loan loss rate (bps)
|
78
|
37
|
|
|
63
|
49
|
|
Net
interest margin1
|
5.86%
|
4.29%
|
|
|
5.85%
|
4.41%
|
|
|
|
|
|
|
|
|
|
|
As at
30.06.23
|
As at
31.12.22
|
As at
30.06.22
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Loans and advances to customers at amortised cost
|
126.6
|
133.7
|
126.7
|
|
|
|
|
Loans and advances to banks at amortised cost
|
9.7
|
8.7
|
11.3
|
|
|
|
|
Debt securities at amortised cost
|
35.2
|
27.2
|
29.3
|
|
|
|
|
Loans and advances at amortised cost
|
171.5
|
169.6
|
167.3
|
|
|
|
|
Trading portfolio assets
|
165.1
|
133.8
|
126.9
|
|
|
|
|
Derivative financial instrument assets
|
264.9
|
301.7
|
343.5
|
|
|
|
|
Financial assets at fair value through the income
statement
|
232.2
|
210.5
|
209.3
|
|
|
|
|
Cash collateral and settlement balances
|
123.9
|
107.7
|
128.5
|
|
|
|
|
Other assets
|
268.8
|
258.0
|
275.1
|
|
|
|
|
Total assets
|
1,226.4
|
1,181.3
|
1,250.6
|
|
|
|
|
Deposits at amortised cost
|
305.0
|
287.6
|
307.4
|
|
|
|
|
Derivative financial instrument liabilities
|
254.5
|
288.9
|
321.2
|
|
|
|
|
Loan: deposit ratio
|
56%
|
59%
|
54%
|
|
|
|
|
Risk weighted assets
|
254.6
|
254.8
|
263.8
|
|
|
|
|
Period end allocated tangible equity
|
36.7
|
36.8
|
38.0
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
CIB and Barclays International margins include the lending related
investment bank business.
|
Analysis of Barclays International
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
1,321
|
795
|
66
|
|
856
|
410
|
|
Net trading income
|
3,790
|
5,188
|
(27)
|
|
1,353
|
2,738
|
(51)
|
Net fee, commission and other income
|
2,027
|
1,988
|
2
|
|
953
|
885
|
8
|
Total income
|
7,138
|
7,971
|
(10)
|
|
3,162
|
4,033
|
(22)
|
Operating costs
|
(4,186)
|
(3,791)
|
(10)
|
|
(1,984)
|
(1,870)
|
(6)
|
Litigation and conduct
|
2
|
(1,632)
|
|
|
(1)
|
(1,314)
|
100
|
Total operating expenses
|
(4,184)
|
(5,423)
|
23
|
|
(1,985)
|
(3,184)
|
38
|
Other net income
|
1
|
—
|
|
|
1
|
—
|
|
Profit before impairment
|
2,955
|
2,548
|
16
|
|
1,178
|
849
|
39
|
Credit impairment (charges)/releases
|
(20)
|
(32)
|
38
|
|
13
|
(65)
|
|
Profit before tax
|
2,935
|
2,516
|
17
|
|
1,191
|
784
|
52
|
Attributable profit
|
2,007
|
1,895
|
6
|
|
798
|
579
|
38
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
12.6%
|
11.9%
|
|
|
10.0%
|
7.1%
|
|
Average allocated tangible equity (£bn)
|
31.8
|
31.8
|
|
|
31.8
|
32.7
|
|
Cost: income ratio
|
59%
|
68%
|
|
|
63%
|
79%
|
|
Loan loss rate (bps)
|
3
|
5
|
|
|
(4)
|
20
|
|
|
|
|
|
|
|
|
|
|
As at
30.06.23
|
As at
31.12.22
|
As at
30.06.22
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Loans and advances to customers at amortised cost
|
84.8
|
90.5
|
86.5
|
|
|
|
|
Loans and advances to banks at amortised cost
|
9.0
|
8.1
|
10.0
|
|
|
|
|
Debt securities at amortised cost
|
35.1
|
27.2
|
29.3
|
|
|
|
|
Loans and advances at amortised cost
|
128.9
|
125.8
|
125.8
|
|
|
|
|
Trading portfolio assets
|
165.0
|
133.7
|
126.7
|
|
|
|
|
Derivative financial instrument assets
|
264.8
|
301.6
|
343.4
|
|
|
|
|
Financial assets at fair value through the income
statement
|
232.1
|
210.5
|
209.2
|
|
|
|
|
Cash collateral and settlement balances
|
122.5
|
106.9
|
127.7
|
|
|
|
|
Other assets
|
224.6
|
222.6
|
237.2
|
|
|
|
|
Total assets
|
1,137.9
|
1,101.1
|
1,170.0
|
|
|
|
|
Deposits at amortised cost
|
225.5
|
205.8
|
229.5
|
|
|
|
|
Derivative financial instrument liabilities
|
254.5
|
288.9
|
321.2
|
|
|
|
|
Risk weighted assets
|
216.5
|
215.9
|
227.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
FICC
|
2,974
|
3,173
|
(6)
|
|
1,186
|
1,529
|
(22)
|
Equities
|
1,267
|
2,463
|
(49)
|
|
563
|
1,411
|
(60)
|
Global Markets
|
4,241
|
5,636
|
(25)
|
|
1,749
|
2,940
|
(41)
|
Advisory
|
342
|
421
|
(19)
|
|
130
|
236
|
(45)
|
Equity capital markets
|
119
|
84
|
42
|
|
69
|
37
|
86
|
Debt capital markets
|
614
|
697
|
(12)
|
|
273
|
281
|
(3)
|
Investment Banking fees
|
1,075
|
1,202
|
(11)
|
|
472
|
554
|
(15)
|
Corporate lending
|
263
|
78
|
|
|
168
|
(47)
|
|
Transaction banking
|
1,559
|
1,055
|
48
|
|
773
|
586
|
32
|
Corporate
|
1,822
|
1,133
|
61
|
|
941
|
539
|
75
|
Total income
|
7,138
|
7,971
|
(10)
|
|
3,162
|
4,033
|
(22)
|
Analysis of Barclays International
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
1,763
|
1,170
|
51
|
|
874
|
619
|
41
|
Net fee, commission, trading and other income
|
821
|
799
|
3
|
|
404
|
464
|
(13)
|
Total income
|
2,584
|
1,969
|
31
|
|
1,278
|
1,083
|
18
|
Operating costs
|
(1,517)
|
(1,251)
|
(21)
|
|
(763)
|
(667)
|
(14)
|
Litigation and conduct
|
(32)
|
(200)
|
84
|
|
(32)
|
(5)
|
|
Total operating expenses
|
(1,549)
|
(1,451)
|
(7)
|
|
(795)
|
(672)
|
(18)
|
Other net income
|
8
|
13
|
(38)
|
|
5
|
5
|
—
|
Profit before impairment
|
1,043
|
531
|
96
|
|
488
|
416
|
17
|
Credit impairment charges
|
(659)
|
(278)
|
|
|
(288)
|
(144)
|
|
Profit before tax
|
384
|
253
|
52
|
|
200
|
272
|
(26)
|
Attributable profit
|
294
|
188
|
56
|
|
155
|
204
|
(24)
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
11.1%
|
8.5%
|
|
|
11.8%
|
17.8%
|
|
Average allocated tangible equity (£bn)
|
5.3
|
4.4
|
|
|
5.3
|
4.6
|
|
Cost: income ratio
|
60%
|
74%
|
|
|
62%
|
62%
|
|
Loan loss rate (bps)
|
293
|
128
|
|
|
255
|
132
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
US cards 30 day arrears rate
|
2.4%
|
1.4%
|
|
|
|
|
|
US cards customer FICO score distribution
|
|
|
|
|
|
|
|
<660
|
11%
|
10%
|
|
|
|
|
|
>660
|
89%
|
90%
|
|
|
|
|
|
Total number of payments clients
|
401k
|
391k
|
|
|
|
|
|
Value
of payments processed (£bn)1,2
|
161
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
30.06.23
|
As at
31.12.22
|
As at
30.06.22
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Loans and advances to customers at amortised cost
|
41.7
|
43.2
|
40.2
|
|
|
|
|
Total assets
|
88.5
|
80.2
|
80.6
|
|
|
|
|
Deposits at amortised cost
|
79.5
|
81.8
|
77.9
|
|
|
|
|
Risk weighted assets
|
38.1
|
38.9
|
36.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
International Cards and Consumer Bank
|
1,734
|
1,229
|
41
|
|
835
|
691
|
21
|
Private Bank
|
554
|
459
|
21
|
|
295
|
245
|
20
|
Payments
|
296
|
281
|
5
|
|
148
|
147
|
1
|
Total income
|
2,584
|
1,969
|
31
|
|
1,278
|
1,083
|
18
|
1
|
Includes £155bn (H122: £145bn) of merchant acquiring
payments.
|
2
|
The H122 comparative has been restated to reflect only the turnover
of the Payments business to be consistent with H123
|
Barclays International delivered a RoTE of 12.4%.
Despite the reduced banking industry
fee pool and lower client activity in Global Markets, CIB delivered
a RoTE of 12.6% reflecting the benefits of income diversification
and investment in sustainable growth. CC&P RoTE of 11.1%
reflected continued investment in the business resulting in balance
growth and increased income, partially offset by higher impairment
charges.
Income statement - H123 compared to H122
●
|
Profit before tax increased 20% to £3,319m with a RoTE of
12.4% (H122: 11.5%), reflecting
a RoTE of 12.6% (H122: 11.9%) in CIB and 11.1% (H122: 8.5%) in
CC&P
|
●
|
Barclays International has a diverse income profile across
businesses and geographies including a significant presence in the
US. The appreciation of average
USD against GBP positively impacted income and profits, and
adversely impacted credit impairment charges and total operating
expenses
|
●
|
Total income decreased to
£9,722m (H122:
£9,940m)
|
|
–
|
CIB
income decreased 10% to
£7,138m. Excluding the
impact from prior year hedging arrangements related to the
Over-issuance of Securities1, CIB income
decreased 1%
|
|
|
–
|
Global
Markets income of £4,241m
decreased 25%, and 13% excluding the impact from prior year
hedging arrangements related to the Over-issuance of Securities.
FICC income decreased
6% to £2,974m, driven by macro reflecting
lower market volatility and client activity, partially offset by a
strong performance in credit. Equities income of £1,267m decreased 49%, and 26% excluding the impact from the
Over-issuance of Securities driven by a decline in derivatives
income reflecting less volatile equity market
conditions
|
|
|
–
|
Investment
Banking fees decreased
11% to £1,075m due to the reduced fee pool
across Advisory and Debt capital markets2, partially offset by
an improvement in Equity capital markets
|
|
|
–
|
Within
Corporate, Transaction banking income increased 48% to £1,559m driven by improved deposit
margins in the higher rate environment. Corporate lending income
increased to £263m (H122: £78m) mainly driven by lower costs of
hedging and the non-repeat of fair value losses on leverage finance
lending net of mark to market gains on related hedges in
H122
|
|
–
|
CC&P
income increased 31% to £2,584m
|
|
|
–
|
International
Cards and Consumer Bank income increased 41% to £1,734m reflecting higher cards
balances and improved margins, including the Gap portfolio
acquisition in Q222
|
|
|
–
|
Private
Bank income increased
21% to £554m, reflecting client balance
growth and improved margins, including the transfer of WM&I
from Barclays UK
|
|
|
–
|
Payments
income increased 5% to £296m driven by merchant acquiring
turnover growth
|
●
|
Total operating expenses decreased 17% to £5,733m and increased 13% to £5,703m excluding litigation and
conduct, reflecting investment in the business
|
|
–
|
CIB
total operating expenses decreased 23% to £4,184m. Operating expenses excluding
litigation and conduct charges increased 10% to £4,186m reflecting investment in
talent and technology, and the impact of inflation
|
|
–
|
CC&P
total operating expenses increased 7% to £1,549m. Operating expenses excluding
litigation and conduct charges increased 21% to £1,517m, driven by higher investment
spend to support growth, mainly in marketing and partnership costs,
including the Gap portfolio acquisition, the transfer of WM&I
from Barclays UK and the impact of inflation
|
●
|
Credit impairment charges were £679m (H122: £310m)
|
|
–
|
CIB
credit impairment charges of £20m (H122: £32m) were driven by single name
charges partially offset by the benefit of credit protection and
the updated macroeconomic scenarios
|
|
–
|
CC&P
credit impairment charges increased to £659m (H122: £278m), reflecting higher US cards
balances, including the Gap portfolio, and normalising
delinquencies. US cards 30 and 90 day arrears were 2.4% (H122:
1.4%) and 1.2% (H122: 0.7%) respectively. The US cards total
coverage ratio was 9.0% (December 2022: 8.1%)
|
1
|
H122 included a £758m of income related to hedging
arrangements to manage the risks of the rescission offer in
relation to the Over-issuance of Securities.
|
2
|
Data source: Dealogic for the period covering 1 January to 30 June
2023.
|
Balance sheet - 30 June 2023 compared to 31 December
2022
●
|
Loans and advances at amortised cost increased £1.9bn
to £171.5bn driven by
increased investment in debt securities in Treasury, offset by net
loan repayments in CIB and the strengthening of GBP against
USD
|
●
|
Trading portfolio assets increased £31.3bn to
£165.1bn driven
by increased trading activity at the end of the period within
Global Markets
|
●
|
Derivative assets and liabilities decreased £36.8bn and
£34.4bn respectively to £264.9bn
and £254.5bn reflecting
lower market volatility and the strengthening of GBP against
USD
|
●
|
Financial assets at fair value through the income statement
increased £21.7bn to £232.2bn driven by
increased secured lending
|
●
|
Deposits at amortised costs increased £17.4bn to
£305.0bn driven
by increased deposits in Treasury
|
●
|
RWAs decreased to £254.6bn
(December 2022: £254.8bn),
as a reduction from the strengthening of GBP against USD was
partially offset by increased trading and credit risk RWAs within
CIB
|
Head Office
|
Half year ended
|
|
Three months ended
|
|
30.06.23
|
30.06.22
|
|
|
30.06.23
|
30.06.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
(39)
|
66
|
|
|
(120)
|
—
|
|
Net fee, commission and other income
|
(83)
|
(175)
|
53
|
|
4
|
(132)
|
|
Total income
|
(122)
|
(109)
|
(12)
|
|
(116)
|
(132)
|
12
|
Operating costs
|
(145)
|
(145)
|
—
|
|
(82)
|
(60)
|
(37)
|
Litigation and conduct
|
(5)
|
—
|
#DIV/0!
|
|
(5)
|
1
|
|
Total operating expenses
|
(150)
|
(145)
|
(3)
|
|
(87)
|
(59)
|
(47)
|
Other net (expenses)/income
|
(11)
|
(16)
|
31
|
|
(3)
|
2
|
|
Loss before impairment
|
(283)
|
(270)
|
(5)
|
|
(206)
|
(189)
|
(9)
|
Credit impairment (charges)/releases
|
(9)
|
17
|
|
|
(2)
|
9
|
|
Loss before tax
|
(292)
|
(253)
|
(15)
|
|
(208)
|
(180)
|
(16)
|
Attributable loss
|
(239)
|
(462)
|
48
|
|
(159)
|
(170)
|
6
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
(0.2)
|
2.7
|
|
|
(0.6)
|
1.7
|
|
|
|
|
|
|
|
|
|
|
As at
30.06.23
|
As at
31.12.22
|
As at
30.06.22
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Total assets
|
18.5
|
19.2
|
19.8
|
|
|
|
|
Risk weighted assets
|
9.3
|
8.6
|
8.6
|
|
|
|
|
Period end allocated tangible equity
|
(1.5)
|
(0.2)
|
1.1
|
|
|
|
|
Income statement - H123 compared to H122
●
|
Loss before tax was £292m
(H122: £253m)
|
●
|
Total income was an expense of £122m (H122: £109m expense) primarily reflecting hedge
accounting and treasury items. The prior year included a one-off
gain of £86m from the sale and leaseback of UK data
centres
|
●
|
Total operating expenses were £150m (H122: £145m)
|
Balance sheet - 30 June 2023 compared to 31 December
2022
●
|
RWAs were £9.3bn (December
2022: £8.6bn)
|
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
3,270
|
3,053
|
|
2,741
|
3,068
|
2,422
|
2,341
|
|
2,230
|
1,940
|
Net fee, commission and other income
|
3,015
|
4,184
|
|
3,060
|
2,883
|
4,286
|
4,155
|
|
2,930
|
3,525
|
Total income
|
6,285
|
7,237
|
|
5,801
|
5,951
|
6,708
|
6,496
|
|
5,160
|
5,465
|
Operating costs
|
(3,919)
|
(4,111)
|
|
(3,748)
|
(3,939)
|
(3,682)
|
(3,588)
|
|
(3,514)
|
(3,446)
|
UK bank levy
|
—
|
—
|
|
(176)
|
—
|
—
|
—
|
|
(170)
|
—
|
Litigation and conduct
|
(33)
|
1
|
|
(79)
|
339
|
(1,334)
|
(523)
|
|
(92)
|
(129)
|
Total operating expenses
|
(3,952)
|
(4,110)
|
|
(4,003)
|
(3,600)
|
(5,016)
|
(4,111)
|
|
(3,776)
|
(3,575)
|
Other net income/(expenses)
|
3
|
(5)
|
|
10
|
(1)
|
7
|
(10)
|
|
13
|
94
|
Profit before impairment
|
2,336
|
3,122
|
|
1,808
|
2,350
|
1,699
|
2,375
|
|
1,397
|
1,984
|
Credit impairment (charges)/releases
|
(372)
|
(524)
|
|
(498)
|
(381)
|
(200)
|
(141)
|
|
31
|
(120)
|
Profit before tax
|
1,964
|
2,598
|
|
1,310
|
1,969
|
1,499
|
2,234
|
|
1,428
|
1,864
|
Tax (charge)/credit
|
(353)
|
(561)
|
|
33
|
(249)
|
(209)
|
(614)
|
|
(104)
|
(292)
|
Profit after tax
|
1,611
|
2,037
|
|
1,343
|
1,720
|
1,290
|
1,620
|
|
1,324
|
1,572
|
Non-controlling interests
|
(22)
|
(8)
|
|
(22)
|
(2)
|
(20)
|
(1)
|
|
(27)
|
(1)
|
Other equity instrument holders
|
(261)
|
(246)
|
|
(285)
|
(206)
|
(199)
|
(215)
|
|
(218)
|
(197)
|
Attributable profit
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
1,079
|
1,374
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
11.4%
|
15.0%
|
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
|
9.0%
|
11.4%
|
Average tangible shareholders' equity (£bn)
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
|
48.0
|
48.3
|
Cost: income ratio
|
63%
|
57%
|
|
69%
|
60%
|
75%
|
63%
|
|
73%
|
65%
|
Loan loss rate (bps)
|
37
|
52
|
|
49
|
36
|
20
|
15
|
|
(3)
|
13
|
Basic earnings per share
|
8.6p
|
11.3p
|
|
6.5p
|
9.4p
|
6.4p
|
8.4p
|
|
6.4p
|
8.0p
|
Basic weighted average number of shares (m)
|
15,523
|
15,770
|
|
15,828
|
16,148
|
16,684
|
16,682
|
|
16,985
|
17,062
|
Period end number of shares (m)
|
15,556
|
15,701
|
|
15,871
|
15,888
|
16,531
|
16,762
|
|
16,752
|
16,851
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital management2
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
337.4
|
343.6
|
|
343.3
|
346.3
|
337.2
|
325.8
|
|
319.9
|
313.5
|
Loans and advances to banks at amortised cost
|
10.9
|
11.0
|
|
10.0
|
12.5
|
12.5
|
11.4
|
|
9.7
|
10.6
|
Debt securities at amortised cost
|
53.1
|
48.9
|
|
45.5
|
54.8
|
46.1
|
34.5
|
|
31.8
|
28.9
|
Loans and advances at amortised cost
|
401.4
|
403.5
|
|
398.8
|
413.7
|
395.8
|
371.7
|
|
361.5
|
353.0
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.4%
|
1.4%
|
|
1.4%
|
1.4%
|
1.4%
|
1.5%
|
|
1.6%
|
1.7%
|
Total assets
|
1,549.7
|
1,539.1
|
|
1,513.7
|
1,726.9
|
1,589.2
|
1,496.1
|
|
1,384.3
|
1,406.5
|
Deposits at amortised cost
|
554.7
|
555.7
|
|
545.8
|
574.4
|
568.7
|
546.5
|
|
519.4
|
510.2
|
Tangible net asset value per share
|
291p
|
301p
|
|
295p
|
286p
|
297p
|
294p
|
|
291p
|
286p
|
Common equity tier 1 ratio
|
13.8%
|
13.6%
|
|
13.9%
|
13.8%
|
13.6%
|
13.8%
|
|
15.1%
|
15.3%
|
Common equity tier 1 capital
|
46.6
|
46.0
|
|
46.9
|
48.6
|
46.7
|
45.3
|
|
47.3
|
47.2
|
Risk weighted assets
|
336.9
|
338.4
|
|
336.5
|
350.8
|
344.5
|
328.8
|
|
314.1
|
307.7
|
UK leverage ratio
|
5.1%
|
5.1%
|
|
5.3%
|
5.0%
|
5.1%
|
5.0%
|
|
5.2%
|
5.1%
|
UK leverage exposure
|
1,183.7
|
1,168.9
|
|
1,130.0
|
1,232.1
|
1,151.2
|
1,123.5
|
|
1,137.9
|
1,162.7
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
330.7
|
333.0
|
|
318.0
|
325.8
|
342.5
|
319.8
|
|
291.0
|
292.8
|
Liquidity coverage ratio
|
158%
|
163%
|
|
165%
|
151%
|
156%
|
159%
|
|
168%
|
161%
|
Net
stable funding ratio3
|
139%
|
139%
|
|
137%
|
|
|
|
|
|
|
Loan: deposit ratio
|
72%
|
73%
|
|
73%
|
72%
|
70%
|
68%
|
|
70%
|
69%
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
2
|
Refer to pages 54 to 59 for
further information on how capital, RWAs and leverage are
calculated.
|
3.
|
Represents average of the last four spot quarter end
positions
|
Quarterly Results by Business
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
1,660
|
1,618
|
|
1,600
|
1,561
|
1,393
|
1,339
|
|
1,313
|
1,303
|
Net fee, commission and other income
|
301
|
343
|
|
370
|
355
|
331
|
310
|
|
386
|
335
|
Total income
|
1,961
|
1,961
|
|
1,970
|
1,916
|
1,724
|
1,649
|
|
1,699
|
1,638
|
Operating costs
|
(1,090)
|
(1,092)
|
|
(1,108)
|
(1,069)
|
(1,085)
|
(998)
|
|
(1,202)
|
(1,041)
|
UK bank levy
|
—
|
—
|
|
(26)
|
—
|
—
|
—
|
|
(36)
|
—
|
Litigation and conduct
|
5
|
(2)
|
|
(13)
|
(3)
|
(16)
|
(9)
|
|
(5)
|
(10)
|
Total operating expenses
|
(1,085)
|
(1,094)
|
|
(1,147)
|
(1,072)
|
(1,101)
|
(1,007)
|
|
(1,243)
|
(1,051)
|
Other net income/(expenses)
|
—
|
—
|
|
1
|
(1)
|
—
|
—
|
|
(1)
|
1
|
Profit before impairment
|
876
|
867
|
|
824
|
843
|
623
|
642
|
|
455
|
588
|
Credit impairment (charges)/releases
|
(95)
|
(113)
|
|
(157)
|
(81)
|
—
|
(48)
|
|
59
|
(137)
|
Profit before tax
|
781
|
754
|
|
667
|
762
|
623
|
594
|
|
514
|
451
|
Attributable profit
|
534
|
515
|
|
474
|
549
|
458
|
396
|
|
420
|
317
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
206.8
|
208.2
|
|
205.1
|
205.1
|
205.9
|
207.3
|
|
208.8
|
208.6
|
Total assets
|
304.8
|
308.6
|
|
313.2
|
316.8
|
318.8
|
317.2
|
|
321.2
|
312.1
|
Customer deposits at amortised cost
|
249.8
|
254.3
|
|
258.0
|
261.0
|
261.5
|
260.3
|
|
260.6
|
256.8
|
Loan: deposit ratio
|
90%
|
90%
|
|
87%
|
86%
|
85%
|
85%
|
|
85%
|
86%
|
Risk weighted assets
|
73.0
|
74.6
|
|
73.1
|
73.2
|
72.2
|
72.7
|
|
72.3
|
73.2
|
Period end allocated tangible equity
|
10.1
|
10.3
|
|
10.1
|
10.1
|
9.9
|
10.1
|
|
10.0
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
20.9%
|
20.0%
|
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
|
16.8%
|
12.7%
|
Average allocated tangible equity (£bn)
|
10.2
|
10.3
|
|
10.2
|
9.9
|
10.0
|
10.1
|
|
10.0
|
10.0
|
Cost: income ratio
|
55%
|
56%
|
|
58%
|
56%
|
64%
|
61%
|
|
73%
|
64%
|
Loan loss rate (bps)
|
17
|
20
|
|
27
|
14
|
—
|
9
|
|
(10)
|
24
|
Net interest margin
|
3.22%
|
3.18%
|
|
3.10%
|
3.01%
|
2.71%
|
2.62%
|
|
2.49%
|
2.49%
|
Analysis of Barclays UK
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Analysis of total income
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Personal Banking
|
1,244
|
1,253
|
|
1,229
|
1,212
|
1,077
|
1,022
|
|
983
|
990
|
Barclaycard Consumer UK
|
237
|
247
|
|
269
|
283
|
265
|
276
|
|
352
|
293
|
Business Banking
|
480
|
461
|
|
472
|
421
|
382
|
351
|
|
364
|
355
|
Total income
|
1,961
|
1,961
|
|
1,970
|
1,916
|
1,724
|
1,649
|
|
1,699
|
1,638
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(92)
|
(28)
|
|
(120)
|
(26)
|
(42)
|
21
|
|
8
|
(30)
|
Barclaycard Consumer UK
|
(35)
|
(83)
|
|
(12)
|
2
|
84
|
(44)
|
|
114
|
(108)
|
Business Banking
|
32
|
(2)
|
|
(25)
|
(57)
|
(42)
|
(25)
|
|
(63)
|
1
|
Total credit impairment (charges)/releases
|
(95)
|
(113)
|
|
(157)
|
(81)
|
—
|
(48)
|
|
59
|
(137)
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Personal Banking
|
173.3
|
173.6
|
|
169.7
|
168.7
|
167.1
|
166.5
|
|
165.4
|
164.6
|
Barclaycard Consumer UK
|
9.3
|
9.0
|
|
9.2
|
9.0
|
8.8
|
8.4
|
|
8.7
|
8.6
|
Business Banking
|
24.2
|
25.6
|
|
26.2
|
27.4
|
30.0
|
32.4
|
|
34.7
|
35.4
|
Total loans and advances to customers at amortised
cost
|
206.8
|
208.2
|
|
205.1
|
205.1
|
205.9
|
207.3
|
|
208.8
|
208.6
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
191.1
|
194.3
|
|
195.6
|
197.3
|
197.0
|
196.6
|
|
196.4
|
193.3
|
Barclaycard Consumer UK
|
—
|
—
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
Business Banking
|
58.7
|
60.0
|
|
62.4
|
63.7
|
64.5
|
63.7
|
|
64.2
|
63.5
|
Total customer deposits at amortised cost
|
249.8
|
254.3
|
|
258.0
|
261.0
|
261.5
|
260.3
|
|
260.6
|
256.8
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
1,730
|
1,354
|
|
1,465
|
1,497
|
1,029
|
936
|
|
955
|
749
|
Net trading income
|
1,278
|
2,419
|
|
1,169
|
1,328
|
2,766
|
2,446
|
|
789
|
1,515
|
Net fee, commission and other income
|
1,432
|
1,509
|
|
1,228
|
1,240
|
1,321
|
1,442
|
|
1,766
|
1,673
|
Total income
|
4,440
|
5,282
|
|
3,862
|
4,065
|
5,116
|
4,824
|
|
3,510
|
3,937
|
Operating costs
|
(2,747)
|
(2,956)
|
|
(2,543)
|
(2,776)
|
(2,537)
|
(2,505)
|
|
(2,160)
|
(2,310)
|
UK bank levy
|
—
|
—
|
|
(133)
|
—
|
—
|
—
|
|
(134)
|
—
|
Litigation and conduct
|
(33)
|
3
|
|
(67)
|
396
|
(1,319)
|
(513)
|
|
(84)
|
(100)
|
Total operating expenses
|
(2,780)
|
(2,953)
|
|
(2,743)
|
(2,380)
|
(3,856)
|
(3,018)
|
|
(2,378)
|
(2,410)
|
Other net income
|
6
|
3
|
|
5
|
10
|
5
|
8
|
|
3
|
15
|
Profit before impairment
|
1,666
|
2,332
|
|
1,124
|
1,695
|
1,265
|
1,814
|
|
1,135
|
1,542
|
Credit impairment (charges)/releases
|
(275)
|
(404)
|
|
(328)
|
(295)
|
(209)
|
(101)
|
|
(23)
|
18
|
Profit before tax
|
1,391
|
1,928
|
|
796
|
1,400
|
1,056
|
1,713
|
|
1,112
|
1,560
|
Attributable profit
|
953
|
1,348
|
|
625
|
1,136
|
783
|
1,300
|
|
818
|
1,191
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
126.6
|
131.0
|
|
133.7
|
137.0
|
126.7
|
113.9
|
|
106.4
|
99.9
|
Loans and advances to banks at amortised cost
|
9.7
|
9.8
|
|
8.7
|
11.0
|
11.3
|
10.2
|
|
8.4
|
9.4
|
Debt securities at amortised cost
|
35.2
|
30.8
|
|
27.2
|
36.2
|
29.3
|
20.7
|
|
19.0
|
16.6
|
Loans and advances at amortised cost
|
171.5
|
171.6
|
|
169.6
|
184.2
|
167.3
|
144.8
|
|
133.8
|
125.9
|
Trading portfolio assets
|
165.1
|
137.7
|
|
133.8
|
126.3
|
126.9
|
134.1
|
|
146.9
|
144.8
|
Derivative financial instrument assets
|
264.9
|
256.6
|
|
301.7
|
415.7
|
343.5
|
288.8
|
|
261.5
|
257.0
|
Financial assets at fair value through the income
statement
|
232.2
|
245.0
|
|
210.5
|
244.7
|
209.3
|
203.8
|
|
188.2
|
200.5
|
Cash collateral and settlement balances
|
123.9
|
125.5
|
|
107.7
|
163.3
|
128.5
|
132.0
|
|
88.1
|
115.9
|
Other assets
|
268.8
|
275.0
|
|
258.0
|
257.2
|
275.1
|
255.5
|
|
225.6
|
231.8
|
Total assets
|
1,226.4
|
1,211.4
|
|
1,181.3
|
1,391.4
|
1,250.6
|
1,159.0
|
|
1,044.1
|
1,075.9
|
Deposits at amortised cost
|
305.0
|
301.6
|
|
287.6
|
313.2
|
307.4
|
286.1
|
|
258.8
|
253.3
|
Derivative financial instrument liabilities
|
254.5
|
246.7
|
|
288.9
|
394.2
|
321.2
|
277.2
|
|
256.4
|
252.3
|
Loan: deposit ratio
|
56%
|
57%
|
|
59%
|
59%
|
54%
|
51%
|
|
52%
|
50%
|
Risk weighted assets
|
254.6
|
255.1
|
|
254.8
|
269.3
|
263.8
|
245.1
|
|
230.9
|
222.7
|
Period end allocated tangible equity
|
36.7
|
36.8
|
|
36.8
|
38.8
|
38.0
|
35.6
|
|
33.2
|
31.8
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.3%
|
14.5%
|
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
|
9.9%
|
14.9%
|
Average allocated tangible equity (£bn)
|
37.1
|
37.1
|
|
38.9
|
39.1
|
37.3
|
35.1
|
|
32.9
|
31.8
|
Cost: income ratio
|
63%
|
56%
|
|
71%
|
59%
|
75%
|
63%
|
|
68%
|
61%
|
Loan loss rate (bps)
|
63
|
94
|
|
75
|
62
|
49
|
28
|
|
7
|
(6)
|
Net
interest margin2
|
5.85%
|
5.87%
|
|
5.71%
|
5.58%
|
4.41%
|
4.15%
|
|
4.14%
|
4.02%
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
2
|
CIB and Barclays International margins include the lending related
investment bank business.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
856
|
465
|
|
548
|
606
|
410
|
385
|
|
432
|
279
|
Net trading income
|
1,353
|
2,437
|
|
1,201
|
1,344
|
2,738
|
2,450
|
|
774
|
1,467
|
Net fee, commission and other income
|
953
|
1,074
|
|
827
|
871
|
885
|
1,103
|
|
1,426
|
1,383
|
Total income
|
3,162
|
3,976
|
|
2,576
|
2,821
|
4,033
|
3,938
|
|
2,632
|
3,129
|
Operating costs
|
(1,984)
|
(2,202)
|
|
(1,796)
|
(2,043)
|
(1,870)
|
(1,921)
|
|
(1,562)
|
(1,747)
|
UK bank levy
|
—
|
—
|
|
(126)
|
—
|
—
|
—
|
|
(128)
|
—
|
Litigation and conduct
|
(1)
|
3
|
|
(55)
|
498
|
(1,314)
|
(318)
|
|
(59)
|
(99)
|
Total operating expenses
|
(1,985)
|
(2,199)
|
|
(1,977)
|
(1,545)
|
(3,184)
|
(2,239)
|
|
(1,749)
|
(1,846)
|
Other net income
|
1
|
—
|
|
2
|
—
|
—
|
—
|
|
1
|
—
|
Profit before impairment
|
1,178
|
1,777
|
|
601
|
1,276
|
849
|
1,699
|
|
884
|
1,283
|
Credit impairment releases/(charges)
|
13
|
(33)
|
|
(41)
|
(46)
|
(65)
|
33
|
|
73
|
128
|
Profit before tax
|
1,191
|
1,744
|
|
560
|
1,230
|
784
|
1,732
|
|
957
|
1,411
|
Attributable profit
|
798
|
1,209
|
|
454
|
1,015
|
579
|
1,316
|
|
695
|
1,085
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
84.8
|
89.2
|
|
90.5
|
93.6
|
86.5
|
79.5
|
|
73.4
|
68.3
|
Loans and advances to banks at amortised cost
|
9.0
|
9.2
|
|
8.1
|
10.2
|
10.0
|
9.4
|
|
7.6
|
8.9
|
Debt securities at amortised cost
|
35.1
|
30.7
|
|
27.2
|
36.2
|
29.3
|
20.7
|
|
19.0
|
16.6
|
Loans and advances at amortised cost
|
128.9
|
129.1
|
|
125.8
|
140.0
|
125.8
|
109.6
|
|
100.0
|
93.8
|
Trading portfolio assets
|
165.0
|
137.6
|
|
133.7
|
126.1
|
126.7
|
134.0
|
|
146.7
|
144.7
|
Derivative financial instruments assets
|
264.8
|
256.5
|
|
301.6
|
415.5
|
343.4
|
288.7
|
|
261.5
|
256.9
|
Financial assets at fair value through the income
statement
|
232.1
|
244.9
|
|
210.5
|
244.6
|
209.2
|
203.8
|
|
188.1
|
200.4
|
Cash collateral and settlement balances
|
122.5
|
124.7
|
|
106.9
|
162.6
|
127.7
|
131.2
|
|
87.2
|
115.1
|
Other assets
|
224.6
|
230.3
|
|
222.6
|
220.6
|
237.2
|
222.5
|
|
195.8
|
200.4
|
Total assets
|
1,137.9
|
1,123.1
|
|
1,101.1
|
1,309.4
|
1,170.0
|
1,089.8
|
|
979.3
|
1,011.3
|
Deposits at amortised cost
|
225.5
|
221.0
|
|
205.8
|
229.5
|
229.5
|
214.7
|
|
189.4
|
185.8
|
Derivative financial instrument liabilities
|
254.5
|
246.7
|
|
288.9
|
394.2
|
321.2
|
277.1
|
|
256.4
|
252.2
|
Risk weighted assets
|
216.5
|
216.8
|
|
215.9
|
230.6
|
227.6
|
213.5
|
|
200.7
|
192.5
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.0%
|
15.2%
|
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
|
9.7%
|
15.6%
|
Average allocated tangible equity (£bn)
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
|
28.7
|
27.8
|
Cost: income ratio
|
63%
|
55%
|
|
77%
|
55%
|
79%
|
57%
|
|
66%
|
59%
|
Loan loss rate (bps)
|
(4)
|
10
|
|
13
|
13
|
20
|
(12)
|
|
(29)
|
(54)
|
Net
interest margin2
|
3.98%
|
3.95%
|
|
3.73%
|
3.56%
|
2.88%
|
2.52%
|
|
2.67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
FICC
|
1,186
|
1,788
|
|
976
|
1,546
|
1,529
|
1,644
|
|
546
|
803
|
Equities
|
563
|
704
|
|
440
|
246
|
1,411
|
1,052
|
|
501
|
757
|
Global Markets
|
1,749
|
2,492
|
|
1,416
|
1,792
|
2,940
|
2,696
|
|
1,047
|
1,560
|
Advisory
|
130
|
212
|
|
197
|
150
|
236
|
185
|
|
287
|
253
|
Equity capital markets
|
69
|
50
|
|
40
|
42
|
37
|
47
|
|
158
|
186
|
Debt capital markets
|
273
|
341
|
|
243
|
341
|
281
|
416
|
|
511
|
532
|
Investment Banking fees
|
472
|
603
|
|
480
|
533
|
554
|
648
|
|
956
|
971
|
Corporate lending
|
168
|
95
|
|
(128)
|
(181)
|
(47)
|
125
|
|
176
|
168
|
Transaction banking
|
773
|
786
|
|
808
|
677
|
586
|
469
|
|
453
|
430
|
Corporate
|
941
|
881
|
|
680
|
496
|
539
|
594
|
|
629
|
598
|
Total income
|
3,162
|
3,976
|
|
2,576
|
2,821
|
4,033
|
3,938
|
|
2,632
|
3,129
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
2
|
CIB and Barclays International margins include the lending related
investment bank business.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
874
|
889
|
|
918
|
891
|
619
|
551
|
|
522
|
471
|
Net fee, commission, trading and other income
|
404
|
417
|
|
368
|
353
|
464
|
335
|
|
356
|
337
|
Total income
|
1,278
|
1,306
|
|
1,286
|
1,244
|
1,083
|
886
|
|
878
|
808
|
Operating costs
|
(763)
|
(754)
|
|
(747)
|
(733)
|
(667)
|
(584)
|
|
(598)
|
(563)
|
UK bank levy
|
—
|
—
|
|
(7)
|
—
|
—
|
—
|
|
(6)
|
—
|
Litigation and conduct
|
(32)
|
—
|
|
(12)
|
(102)
|
(5)
|
(195)
|
|
(25)
|
(1)
|
Total operating expenses
|
(795)
|
(754)
|
|
(766)
|
(835)
|
(672)
|
(779)
|
|
(629)
|
(564)
|
Other net income
|
5
|
3
|
|
3
|
10
|
5
|
8
|
|
2
|
15
|
Profit before impairment
|
488
|
555
|
|
523
|
419
|
416
|
115
|
|
251
|
259
|
Credit impairment charges
|
(288)
|
(371)
|
|
(287)
|
(249)
|
(144)
|
(134)
|
|
(96)
|
(110)
|
Profit/(loss) before tax
|
200
|
184
|
|
236
|
170
|
272
|
(19)
|
|
155
|
149
|
Attributable profit/(loss)
|
155
|
139
|
|
171
|
121
|
204
|
(16)
|
|
123
|
106
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
41.7
|
41.8
|
|
43.2
|
43.4
|
40.2
|
34.4
|
|
33.0
|
31.6
|
Total assets
|
88.5
|
88.3
|
|
80.2
|
82.0
|
80.6
|
69.2
|
|
64.8
|
64.6
|
Deposits at amortised cost
|
79.5
|
80.6
|
|
81.8
|
83.7
|
77.9
|
71.4
|
|
69.4
|
67.5
|
Risk weighted assets
|
38.1
|
38.2
|
|
38.9
|
38.7
|
36.2
|
31.6
|
|
30.2
|
30.2
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
11.8%
|
10.5%
|
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
|
11.7%
|
10.5%
|
Average allocated tangible equity (£bn)
|
5.3
|
5.3
|
|
5.2
|
5.1
|
4.6
|
4.3
|
|
4.2
|
4.0
|
Cost: income ratio
|
62%
|
58%
|
|
60%
|
67%
|
62%
|
88%
|
|
72%
|
70%
|
Loan loss rate (bps)
|
255
|
332
|
|
245
|
211
|
132
|
145
|
|
105
|
127
|
Net interest margin
|
8.25%
|
8.42%
|
|
8.40%
|
8.41%
|
6.68%
|
6.56%
|
|
6.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
International Cards and Consumer Bank
|
835
|
900
|
|
860
|
824
|
691
|
538
|
|
552
|
490
|
Private Bank
|
295
|
258
|
|
285
|
270
|
245
|
214
|
|
200
|
188
|
Payments
|
148
|
148
|
|
141
|
150
|
147
|
134
|
|
126
|
130
|
Total income
|
1,278
|
1,306
|
|
1,286
|
1,244
|
1,083
|
886
|
|
878
|
808
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
(120)
|
81
|
|
(324)
|
10
|
—
|
66
|
|
(38)
|
(112)
|
Net fee, commission and other income
|
4
|
(87)
|
|
293
|
(40)
|
(132)
|
(43)
|
|
(11)
|
2
|
Total income
|
(116)
|
(6)
|
|
(31)
|
(30)
|
(132)
|
23
|
|
(49)
|
(110)
|
Operating costs
|
(82)
|
(63)
|
|
(97)
|
(94)
|
(60)
|
(85)
|
|
(152)
|
(95)
|
UK bank levy
|
—
|
—
|
|
(17)
|
—
|
—
|
—
|
|
—
|
—
|
Litigation and conduct
|
(5)
|
—
|
|
1
|
(54)
|
1
|
(1)
|
|
(3)
|
(19)
|
Total operating expenses
|
(87)
|
(63)
|
|
(113)
|
(148)
|
(59)
|
(86)
|
|
(155)
|
(114)
|
Other net (expenses)/income
|
(3)
|
(8)
|
|
4
|
(10)
|
2
|
(18)
|
|
11
|
78
|
Loss before impairment
|
(206)
|
(77)
|
|
(140)
|
(188)
|
(189)
|
(81)
|
|
(193)
|
(146)
|
Credit impairment (charges)/releases
|
(2)
|
(7)
|
|
(13)
|
(5)
|
9
|
8
|
|
(5)
|
(1)
|
Loss before tax
|
(208)
|
(84)
|
|
(153)
|
(193)
|
(180)
|
(73)
|
|
(198)
|
(147)
|
Attributable loss
|
(159)
|
(80)
|
|
(63)
|
(173)
|
(170)
|
(292)
|
|
(159)
|
(134)
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Total assets
|
18.5
|
19.1
|
|
19.2
|
18.7
|
19.8
|
19.9
|
|
19.0
|
18.5
|
Risk
weighted assets1
|
9.3
|
8.8
|
|
8.6
|
8.2
|
8.6
|
11.0
|
|
11.0
|
11.8
|
Period
end allocated tangible equity1
|
(1.5)
|
0.2
|
|
(0.2)
|
(3.5)
|
1.1
|
3.6
|
|
5.5
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures1
|
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
(0.6)
|
0.2
|
|
(2.4)
|
(0.4)
|
1.7
|
3.6
|
|
5.1
|
6.5
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
Performance Management
Margins and balances
|
|
Half year ended 30.06.23
|
Half year ended 30.06.22
|
|
Net interest
income
|
Average
customer assets
|
Net interest
margin
|
Net interest
income
|
Average
customer assets
|
Net interest
margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
3,278
|
206,653
|
3.20
|
2,732
|
206,524
|
2.67
|
Corporate and
Investment Bank1
|
1,091
|
55,504
|
3.96
|
713
|
52,991
|
2.71
|
Consumer,
Cards and Payments
|
1,763
|
42,673
|
8.33
|
1,170
|
35,616
|
6.63
|
Barclays
International1
|
2,854
|
98,177
|
5.86
|
1,883
|
88,607
|
4.29
|
Total Barclays UK and Barclays International
|
6,132
|
304,830
|
4.06
|
4,615
|
295,131
|
3.15
|
Other2
|
191
|
|
|
148
|
|
|
Total Barclays Group
|
6,323
|
|
|
4,763
|
|
|
1
|
CIB and 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
Barclays UK and Barclays International NIM has increased
91bps from 3.15% in H122 to 4.06% in H123, driven by the higher
interest rate environment and continued structural hedge income
momentum across the Group as well as higher balances in CC&P
including the Gap portfolio acquisition, partially offset by
product dynamics in deposits and mortgages.
The
Group’s combined product and equity structural hedge notional
amount at June 2023 was
£256bn (December 2022: £263bn), with an average duration of
close to 2.5 years
(2022: average duration
close to 3 years). Gross
structural hedge contributions of £1,639m (H122: £879m) and net structural hedge
contributions of £(3,701)m
(H122: £83m) are included in Group net interest
income. Gross structural hedge contributions represent the absolute
level of interest earned from the fixed receipts on 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
|
|
|
|
|
|
|
|
|
|
Q223
|
Q123
|
Q422
|
Q322
|
Q222
|
Net interest income
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
1,660
|
1,618
|
1,600
|
1,561
|
1,393
|
Corporate and
Investment Bank1
|
540
|
551
|
556
|
529
|
397
|
Consumer,
Cards and Payments
|
874
|
889
|
918
|
891
|
619
|
Barclays
International1
|
1,414
|
1,440
|
1,474
|
1,420
|
1,016
|
Total Barclays UK and Barclays International
|
3,074
|
3,058
|
3,074
|
2,981
|
2,409
|
|
|
|
|
|
|
Average customer assets
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
207,073
|
206,241
|
204,941
|
205,881
|
205,834
|
Corporate and
Investment Bank1
|
54,417
|
56,612
|
59,146
|
58,891
|
55,181
|
Consumer,
Cards and Payments
|
42,503
|
42,840
|
43,319
|
42,019
|
37,190
|
Barclays
International1
|
96,920
|
99,452
|
102,465
|
100,910
|
92,371
|
Total Barclays UK and Barclays International
|
303,993
|
305,693
|
307,406
|
306,791
|
298,205
|
|
|
|
|
|
|
Net interest margin
|
%
|
%
|
%
|
%
|
%
|
Barclays UK
|
3.22
|
3.18
|
3.10
|
3.01
|
2.71
|
Corporate and
Investment Bank1
|
3.98
|
3.95
|
3.73
|
3.56
|
2.88
|
Consumer,
Cards and Payments
|
8.25
|
8.42
|
8.40
|
8.41
|
6.68
|
Barclays
International1
|
5.85
|
5.87
|
5.71
|
5.58
|
4.41
|
Total Barclays UK and Barclays International
|
4.06
|
4.06
|
3.97
|
3.85
|
3.24
|
1
|
CIB and Barclays International margins include the lending related
investment bank business.
|
Risk Management
Risk management and principal risks
The roles and responsibilities of the business groups, Risk and
Compliance in the management of risk in the Group are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of the Group, the
process by which the Group sets its appetite for these risks in its
business activities, and the consequent limits which it places on
related risk taking.
The
framework identifies nine principal risks: credit risk, market
risk, treasury and capital risk, climate risk, operational risk,
model risk, compliance risk, reputation risk and legal risk.
Further detail on the Group’s principal risks and previously
identified material existing and emerging risks and how such risks
are managed is available in the Barclays PLC Annual Report 2022
(pages 266 to 295), which can be accessed at home.barclays/annualreport. Other than the
changes set out in the paragraph below, there have been no
significant changes to these principal risks or previously
identified material existing and emerging risks in the
period.
In
Q223, the 'conduct risk' principal
risk was expanded to include “Laws, Rules and Regulations
(LRR) Risk” and consequently renamed 'compliance
risk’. Reflecting this, the definition of compliance
risk is: 'The risk of poor outcomes for, or harm to, customers,
clients and markets, arising from the delivery of the firm’s
products and services (also known as 'Conduct Risk') and the risk
to Barclays, its clients, customers or markets from a failure to
comply with the laws, rules and regulations applicable to the firm
(also known as Laws, Rules and Regulations Risk 'LRR Risk').' The
definition of the 'legal risk' principal risk was updated to: 'The
risk of loss or imposition of penalties, damages or fines from the
failure of the firm to meet applicable laws, rules and regulations
or contractual requirements or to assert or defend its intellectual
property rights.' The revised framework has been in force from June
2023.
The
following section gives an overview of credit risk, market risk, and treasury and capital risk
for the period.
Credit Risk
Loans and advances at amortised cost by stage
Total loans and advances at amortised cost in the credit risk
performance section includes Loans and advances at amortised cost
to banks, Loans and advances at amortised cost to customers and
Debt securities at amortised cost.
The table below presents a stage allocation and business segment
analysis of loans and advances at amortised cost by gross exposure,
impairment allowance, impairment charge and coverage ratio as at 30
June 2023. Also included are stage allocation of off-balance sheet
loan commitments and financial guarantee contracts by gross
exposure, impairment allowance and coverage as at 30 June
2023.
Impairment allowance under IFRS 9 considers both the drawn and the
undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to gross loans and advances to
the extent allowance does not exceed the drawn exposure and any
excess is reported on the liabilities side of the balance sheet as
a provision. For wholesale portfolios, impairment allowance on
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 30.06.23
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
164,741
|
23,408
|
2,390
|
190,539
|
|
324
|
669
|
507
|
1,500
|
189,039
|
Barclays International
|
32,431
|
4,645
|
1,954
|
39,030
|
|
365
|
1,211
|
1,144
|
2,720
|
36,310
|
Head Office
|
3,181
|
281
|
558
|
4,020
|
|
3
|
23
|
315
|
341
|
3,679
|
Total Barclays Group retail
|
200,353
|
28,334
|
4,902
|
233,589
|
|
692
|
1,903
|
1,966
|
4,561
|
229,028
|
Barclays UK
|
33,997
|
2,383
|
761
|
37,141
|
|
72
|
74
|
94
|
240
|
36,901
|
Barclays International
|
121,655
|
13,259
|
1,007
|
135,921
|
|
190
|
270
|
292
|
752
|
135,169
|
Head Office
|
307
|
—
|
17
|
324
|
|
—
|
—
|
17
|
17
|
307
|
Total Barclays Group wholesale
|
155,959
|
15,642
|
1,785
|
173,386
|
|
262
|
344
|
403
|
1,009
|
172,377
|
Total loans and advances at amortised cost
|
356,312
|
43,976
|
6,687
|
406,975
|
|
954
|
2,247
|
2,369
|
5,570
|
401,405
|
Off-balance
sheet loan commitments and financial guarantee
contracts1
|
364,839
|
28,637
|
1,262
|
394,738
|
|
200
|
308
|
41
|
549
|
394,189
|
Total2
|
721,151
|
72,613
|
7,949
|
801,713
|
|
1,154
|
2,555
|
2,410
|
6,119
|
795,594
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.06.23
|
|
Half year ended 30.06.23
|
|
|
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
|
2.9
|
21.2
|
0.8
|
|
|
225
|
|
24
|
|
Barclays International
|
1.1
|
26.1
|
58.5
|
7.0
|
|
|
665
|
|
344
|
|
Head Office
|
0.1
|
8.2
|
56.5
|
8.5
|
|
|
9
|
|
45
|
|
Total Barclays Group retail
|
0.3
|
6.7
|
40.1
|
2.0
|
|
|
899
|
|
78
|
|
Barclays UK
|
0.2
|
3.1
|
12.4
|
0.6
|
|
|
(47)
|
|
|
|
Barclays International
|
0.2
|
2.0
|
29.0
|
0.6
|
|
|
58
|
|
9
|
|
Head Office
|
—
|
—
|
100.0
|
5.2
|
|
|
—
|
|
|
|
Total Barclays Group wholesale
|
0.2
|
2.2
|
22.6
|
0.6
|
|
|
11
|
|
1
|
|
Total loans and advances at amortised cost
|
0.3
|
5.1
|
35.4
|
1.4
|
|
|
910
|
|
45
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts1
|
0.1
|
1.1
|
3.2
|
0.1
|
|
|
(25)
|
|
|
|
Other
financial assets subject to impairment2
|
|
|
|
|
|
|
11
|
|
|
|
Total3
|
0.2
|
3.5
|
30.3
|
0.8
|
|
|
896
|
|
|
|
1
|
Excludes loan commitments and financial guarantees of £12.3bn
carried at fair value.
|
2
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£198.2bn and impairment allowance of £165m. This
comprises £18m ECL on £196.8bn Stage 1 assets, £12m
on £1.3bn Stage 2 fair value through other comprehensive
income assets, cash collateral and settlement balances and
£135m on £145m Stage 3 other assets.
|
3
|
The annualised loan loss rate is 44bps after applying the total
impairment charge of £896m.
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
160,424
|
24,837
|
2,711
|
187,972
|
|
232
|
718
|
485
|
1,435
|
186,537
|
Barclays International
|
33,735
|
4,399
|
1,793
|
39,927
|
|
392
|
1,200
|
949
|
2,541
|
37,386
|
Head Office
|
3,644
|
252
|
661
|
4,557
|
|
3
|
24
|
359
|
386
|
4,171
|
Total Barclays Group retail
|
197,803
|
29,488
|
5,165
|
232,456
|
|
627
|
1,942
|
1,793
|
4,362
|
228,094
|
Barclays UK
|
34,858
|
2,954
|
805
|
38,617
|
|
129
|
109
|
96
|
334
|
38,283
|
Barclays International
|
117,692
|
14,298
|
1,098
|
133,088
|
|
301
|
265
|
312
|
878
|
132,210
|
Head Office
|
192
|
—
|
18
|
210
|
|
—
|
—
|
18
|
18
|
192
|
Total Barclays Group wholesale
|
152,742
|
17,252
|
1,921
|
171,915
|
|
430
|
374
|
426
|
1,230
|
170,685
|
Total loans and advances at amortised cost
|
350,545
|
46,740
|
7,086
|
404,371
|
|
1,057
|
2,316
|
2,219
|
5,592
|
398,779
|
Off-balance
sheet loan commitments and financial guarantee
contracts1
|
372,945
|
30,694
|
1,180
|
404,819
|
|
245
|
315
|
23
|
583
|
404,236
|
Total2
|
723,490
|
77,434
|
8,266
|
809,190
|
|
1,302
|
2,631
|
2,242
|
6,175
|
803,015
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.22
|
|
Year ended 31.12.22
|
|
|
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
|
2.9
|
17.9
|
0.8
|
|
|
169
|
|
9
|
|
Barclays International
|
1.2
|
27.3
|
52.9
|
6.4
|
|
|
763
|
|
191
|
|
Head Office
|
0.1
|
9.5
|
54.3
|
8.5
|
|
|
—
|
|
|
|
Total Barclays Group retail
|
0.3
|
6.6
|
34.7
|
1.9
|
|
|
932
|
|
40
|
|
Barclays UK
|
0.4
|
3.7
|
11.9
|
0.9
|
|
|
106
|
|
27
|
|
Barclays International
|
0.3
|
1.9
|
28.4
|
0.7
|
|
|
127
|
|
10
|
|
Head Office
|
—
|
—
|
100.0
|
8.6
|
|
|
—
|
|
|
|
Total Barclays Group wholesale
|
0.3
|
2.2
|
22.2
|
0.7
|
|
|
233
|
|
14
|
|
Total loans and advances at amortised cost
|
0.3
|
5.0
|
31.3
|
1.4
|
|
|
1,165
|
|
29
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts1
|
0.1
|
1.0
|
1.9
|
0.1
|
|
|
18
|
|
|
|
Other
financial assets subject to impairment2
|
|
|
|
|
|
|
37
|
|
|
|
Total3
|
0.2
|
3.4
|
27.1
|
0.8
|
|
|
1,220
|
|
|
|
1
|
Excludes loan commitments and financial guarantees of £14.9bn
carried at fair value.
|
2
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.1bn and impairment allowance of £163m. This
comprises £10m ECL on £178.4bn Stage 1 assets, £9m
on £1.5bn Stage 2 fair value through other comprehensive
income assets, cash collateral and settlement balances and
£144m on £149m Stage 3 other assets.
|
3
|
The annualised loan loss rate is 30bps after applying the total
impairment charge of £1,220m.
|
Taskforce on Disclosures about Expected Credit Losses
(DECL)
The latest DECL III Taskforce recommendation for the minimum
product groupings has been adopted in the credit risk performance
section for this period and the prior period comparatives have been
aligned accordingly. The Group intends to adopt further
enhancements such as geographical breakdown and other
recommendations in future periods.
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 30.06.23
|
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
|
Retail mortgages
|
155,521
|
15,114
|
1,841
|
848
|
17,803
|
2,108
|
175,432
|
Retail credit cards
|
29,351
|
5,676
|
356
|
266
|
6,298
|
1,455
|
37,104
|
Retail other
|
10,677
|
1,252
|
92
|
286
|
1,630
|
520
|
12,827
|
Corporate loans
|
106,387
|
14,074
|
133
|
209
|
14,416
|
2,602
|
123,405
|
Debt
securities and other1
|
54,376
|
3,829
|
—
|
—
|
3,829
|
2
|
58,207
|
Total
|
356,312
|
39,945
|
2,422
|
1,609
|
43,976
|
6,687
|
406,975
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Retail mortgages
|
41
|
67
|
21
|
16
|
104
|
409
|
554
|
Retail credit cards
|
474
|
1,235
|
164
|
152
|
1,551
|
1,125
|
3,150
|
Retail other
|
81
|
122
|
22
|
27
|
171
|
246
|
498
|
Corporate loans
|
335
|
367
|
12
|
8
|
387
|
589
|
1,311
|
Debt
securities and other1
|
23
|
34
|
—
|
—
|
34
|
—
|
57
|
Total
|
954
|
1,825
|
219
|
203
|
2,247
|
2,369
|
5,570
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Retail mortgages
|
155,480
|
15,047
|
1,820
|
832
|
17,699
|
1,699
|
174,878
|
Retail credit cards
|
28,877
|
4,441
|
192
|
114
|
4,747
|
330
|
33,954
|
Retail other
|
10,596
|
1,130
|
70
|
259
|
1,459
|
274
|
12,329
|
Corporate loans
|
106,052
|
13,707
|
121
|
201
|
14,029
|
2,013
|
122,094
|
Debt
securities and other1
|
54,353
|
3,795
|
—
|
—
|
3,795
|
2
|
58,150
|
Total
|
355,358
|
38,120
|
2,203
|
1,406
|
41,729
|
4,318
|
401,405
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Retail mortgages
|
—
|
0.4
|
1.1
|
1.9
|
0.6
|
19.4
|
0.3
|
Retail credit cards
|
1.6
|
21.8
|
46.1
|
57.1
|
24.6
|
77.3
|
8.5
|
Retail other
|
0.8
|
9.7
|
23.9
|
9.4
|
10.5
|
47.3
|
3.9
|
Corporate loans
|
0.3
|
2.6
|
9.0
|
3.8
|
2.7
|
22.6
|
1.1
|
Debt
securities and other1
|
—
|
0.9
|
—
|
—
|
0.9
|
—
|
0.1
|
Total
|
0.3
|
4.6
|
9.0
|
12.6
|
5.1
|
35.4
|
1.4
|
1
|
Predominantly includes debt securities within Treasury and CIB,
these have a total gross exposure of £53.2bn and an impairment
allowance of £57m. Also includes loans and advances of
£4.5bn within Treasury and £0.5bn within Head Office,
which have an impairment allowance of £nil.
|
|
|
Stage 2
|
|
|
As at 31.12.22
|
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
|
Retail mortgages
|
153,672
|
15,990
|
1,684
|
526
|
18,200
|
2,414
|
174,286
|
Retail credit cards
|
29,788
|
5,731
|
284
|
434
|
6,449
|
1,380
|
37,617
|
Retail other
|
13,470
|
1,232
|
104
|
132
|
1,468
|
720
|
15,658
|
Corporate loans
|
107,309
|
16,560
|
159
|
107
|
16,826
|
2,567
|
126,702
|
Debt
securities and other1
|
46,306
|
3,797
|
—
|
—
|
3,797
|
5
|
50,108
|
Total
|
350,545
|
43,310
|
2,231
|
1,199
|
46,740
|
7,086
|
404,371
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Retail mortgages
|
29
|
53
|
11
|
9
|
73
|
414
|
516
|
Retail credit cards
|
458
|
1,334
|
100
|
186
|
1,620
|
955
|
3,033
|
Retail other
|
100
|
118
|
22
|
26
|
166
|
308
|
574
|
Corporate loans
|
461
|
401
|
13
|
10
|
424
|
542
|
1,427
|
Debt
securities and other1
|
9
|
33
|
—
|
—
|
33
|
—
|
42
|
Total
|
1,057
|
1,939
|
146
|
231
|
2,316
|
2,219
|
5,592
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Retail mortgages
|
153,643
|
15,937
|
1,673
|
517
|
18,127
|
2,000
|
173,770
|
Retail credit cards
|
29,330
|
4,397
|
184
|
248
|
4,829
|
425
|
34,584
|
Retail other
|
13,370
|
1,114
|
82
|
106
|
1,302
|
412
|
15,084
|
Corporate loans
|
106,848
|
16,159
|
146
|
97
|
16,402
|
2,025
|
125,275
|
Debt
securities and other1
|
46,297
|
3,764
|
—
|
—
|
3,764
|
5
|
50,066
|
Total
|
349,488
|
41,371
|
2,085
|
968
|
44,424
|
4,867
|
398,779
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Retail mortgages
|
—
|
0.3
|
0.7
|
1.7
|
0.4
|
17.1
|
0.3
|
Retail credit cards
|
1.5
|
23.3
|
35.2
|
42.9
|
25.1
|
69.2
|
8.1
|
Retail other
|
0.7
|
9.6
|
21.2
|
19.7
|
11.3
|
42.8
|
3.7
|
Corporate loans
|
0.4
|
2.4
|
8.2
|
9.3
|
2.5
|
21.1
|
1.1
|
Debt
securities and other1
|
—
|
0.9
|
—
|
—
|
0.9
|
—
|
0.1
|
Total
|
0.3
|
4.5
|
6.5
|
19.3
|
5.0
|
31.3
|
1.4
|
1
|
Predominantly includes debt securities within Treasury and CIB,
these have a total gross exposure of £45.5bn and an impairment
allowance of £42m. Also includes loans and advances of
£4.1bn within Treasury and £0.5bn within Head Office,
which have an impairment allowance of £nil.
|
Loans and advances at amortised cost by selected
sectors
The table below presents a breakdown of drawn exposure and
impairment allowance for loans and advances at amortised cost with
stage allocation for selected industry sectors within the corporate
loan portfolio. As the nature of macroeconomic uncertainties have
evolved, including to higher interest rates and continuing
inflationary stress, so has the appraisal of selected sectors under
management focus.
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 30.06.23
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Autos
|
911
|
182
|
41
|
1,134
|
|
3
|
4
|
7
|
14
|
Consumer manufacture
|
4,046
|
1,351
|
231
|
5,628
|
|
20
|
37
|
49
|
106
|
Discretionary retail and wholesale
|
4,432
|
1,394
|
174
|
6,000
|
|
29
|
30
|
37
|
96
|
Hospitality and leisure
|
3,654
|
1,349
|
324
|
5,327
|
|
23
|
24
|
59
|
106
|
Passenger travel
|
733
|
194
|
39
|
966
|
|
6
|
7
|
13
|
26
|
Real estate
|
13,637
|
2,423
|
495
|
16,555
|
|
53
|
46
|
116
|
215
|
Steel and aluminium manufacturers
|
453
|
154
|
28
|
635
|
|
4
|
2
|
19
|
25
|
Total
|
27,866
|
7,047
|
1,332
|
36,245
|
|
138
|
150
|
300
|
588
|
Total of corporate exposures (%)
|
26%
|
49%
|
51%
|
29%
|
|
41%
|
39%
|
51%
|
45%
|
|
|
|
|
|
|
|
|
|
|
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Autos
|
881
|
194
|
31
|
1,106
|
|
6
|
5
|
6
|
17
|
Consumer manufacture
|
3,845
|
1,729
|
199
|
5,773
|
|
45
|
41
|
46
|
132
|
Discretionary retail and wholesale
|
5,143
|
1,711
|
249
|
7,103
|
|
41
|
37
|
51
|
129
|
Hospitality and leisure
|
3,902
|
1,316
|
429
|
5,647
|
|
40
|
31
|
70
|
141
|
Passenger travel
|
744
|
267
|
51
|
1,062
|
|
9
|
7
|
13
|
29
|
Real estate
|
13,042
|
3,049
|
499
|
16,590
|
|
91
|
66
|
123
|
280
|
Steel and aluminium manufacturers
|
486
|
85
|
18
|
589
|
|
7
|
1
|
8
|
16
|
Total
|
28,043
|
8,351
|
1,476
|
37,870
|
|
239
|
188
|
317
|
744
|
Total of corporate exposures (%)
|
26%
|
50%
|
57%
|
30%
|
|
52%
|
44%
|
58%
|
52%
|
Gross loans and advances to selected sectors have decreased through
the year, as has the coverage ratio at June 2023: 1.6%, (December
2022: 2.0%) primarily driven by non-default coverage reducing from
1.2% at December 2022 to 0.8% at June 2023. The lower impairment
provisioning is primarily driven by the retirement of the customer
uncertainty PMA following rebuild of certain CIB models, which
better capture the macroeconomic outlook; and a granular assessment
of the portfolio, which is subject to increased monitoring under
Barclays Risk Management framework. The portfolio also benefits
from an external hedge protection program that enables effective
risk management against credit losses.
An additional £72m (December 2022: £115m) impairment
allowance has been provisioned against undrawn commitments not
included in the table above.
Movement in gross exposures and impairment allowance including
provisions for loan commitments and financial
guarantees
The following tables present a reconciliation of the opening to the
closing balance of the exposure and impairment allowance. An
explanation of the methodology used to determine credit impairment
provisions is included in the Barclays PLC Annual Report
2022.
Transfers between stages in the tables have been reflected as if
they had taken place at the beginning of the year. 'Net drawdowns,
repayments, net re-measurement and movements due to exposure and
risk parameter changes' includes additional drawdowns and partial
repayments from existing facilities. Additionally, the below tables
do not include other financial assets subject to impairment such as
cash collateral and settlement balances, financial assets at fair
value through other comprehensive income and other
assets.
The movements are measured over a 6-month period.
Loans and advances at amortised cost
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Retail mortgages
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
153,672
|
29
|
18,200
|
73
|
2,414
|
414
|
174,286
|
516
|
Transfers from Stage 1 to Stage 2
|
(5,762)
|
(1)
|
5,762
|
1
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
5,086
|
15
|
(5,086)
|
(15)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(145)
|
—
|
(141)
|
(9)
|
286
|
9
|
—
|
—
|
Transfers from Stage 3
|
18
|
1
|
80
|
1
|
(98)
|
(2)
|
—
|
—
|
Business
activity in the period1
|
14,681
|
9
|
361
|
3
|
6
|
5
|
15,048
|
17
|
Refinements to models used for calculation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(6,695)
|
(11)
|
(589)
|
53
|
(300)
|
(2)
|
(7,584)
|
40
|
Final repayments
|
(5,334)
|
(1)
|
(784)
|
(3)
|
(190)
|
(5)
|
(6,308)
|
(9)
|
Disposals
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Write-offs
|
—
|
—
|
—
|
—
|
(10)
|
(10)
|
(10)
|
(10)
|
As at 30 June 2023
|
155,521
|
41
|
17,803
|
104
|
2,108
|
409
|
175,432
|
554
|
|
|
|
|
|
|
|
|
|
Retail credit cards
|
As at 1 January 2023
|
29,788
|
458
|
6,449
|
1,620
|
1,380
|
955
|
37,617
|
3,033
|
Transfers from Stage 1 to Stage 2
|
(2,037)
|
(57)
|
2,037
|
57
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
1,789
|
429
|
(1,789)
|
(429)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(239)
|
(13)
|
(531)
|
(255)
|
770
|
268
|
—
|
—
|
Transfers from Stage 3
|
12
|
7
|
6
|
3
|
(18)
|
(10)
|
—
|
—
|
Business activity in the period
|
1,290
|
25
|
97
|
25
|
2
|
1
|
1,389
|
51
|
Refinements
to models used for calculation2
|
—
|
—
|
—
|
—
|
—
|
(20)
|
—
|
(20)
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(1,128)
|
(360)
|
67
|
571
|
(152)
|
424
|
(1,213)
|
635
|
Final repayments
|
(124)
|
(15)
|
(38)
|
(41)
|
(12)
|
(13)
|
(174)
|
(69)
|
Disposals3
|
—
|
—
|
—
|
—
|
(91)
|
(56)
|
(91)
|
(56)
|
Write-offs
|
—
|
—
|
—
|
—
|
(424)
|
(424)
|
(424)
|
(424)
|
As at 30 June 2023
|
29,351
|
474
|
6,298
|
1,551
|
1,455
|
1,125
|
37,104
|
3,150
|
1
|
Business activity in the period reported within Retail mortgages
includes an acquisition of Kensington Mortgage Company in UK
Mortgages of £2.4bn.
|
2
|
Refinements to models used for calculation reported within Retail
credit cards include a £20m movement in US cards. These
reflect model enhancements made during the year. Barclays
continually reviews the output of models to determine accuracy of
the ECL calculation including review of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This helps to ensure that the models used continue
to reflect the risks inherent across the businesses.
|
3
|
The £91m disposals reported within Retail credit cards relates
to debt sales undertaken during the year.
|
Loans and advances at amortised cost
|
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Retail other
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
13,470
|
100
|
1,468
|
166
|
720
|
308
|
15,658
|
574
|
Transfers from Stage 1 to Stage 2
|
(890)
|
(12)
|
890
|
12
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
392
|
30
|
(392)
|
(30)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(86)
|
(3)
|
(107)
|
(35)
|
193
|
38
|
—
|
—
|
Transfers from Stage 3
|
10
|
2
|
11
|
4
|
(21)
|
(6)
|
—
|
—
|
Business activity in the period
|
2,481
|
16
|
53
|
8
|
9
|
5
|
2,543
|
29
|
Refinements to models used for calculation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(3,350)
|
(47)
|
(187)
|
50
|
(151)
|
27
|
(3,688)
|
30
|
Final repayments
|
(1,350)
|
(5)
|
(106)
|
(4)
|
(75)
|
(17)
|
(1,531)
|
(26)
|
Disposals1
|
—
|
—
|
—
|
—
|
(98)
|
(52)
|
(98)
|
(52)
|
Write-offs
|
—
|
—
|
—
|
—
|
(57)
|
(57)
|
(57)
|
(57)
|
As at 30 June 2023
|
10,677
|
81
|
1,630
|
171
|
520
|
246
|
12,827
|
498
|
|
|
|
|
|
|
|
|
|
Corporate loans
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
107,309
|
461
|
16,826
|
424
|
2,567
|
542
|
126,702
|
1,427
|
Transfers from Stage 1 to Stage 2
|
(5,875)
|
(31)
|
5,875
|
31
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
6,102
|
99
|
(6,102)
|
(99)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(370)
|
(3)
|
(584)
|
(22)
|
954
|
25
|
—
|
—
|
Transfers from Stage 3
|
109
|
8
|
195
|
12
|
(304)
|
(20)
|
—
|
—
|
Business activity in the period
|
11,281
|
24
|
355
|
14
|
123
|
17
|
11,759
|
55
|
Refinements
to models used for calculation2
|
—
|
(49)
|
—
|
142
|
—
|
—
|
—
|
93
|
Net
drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes3
|
1,521
|
(105)
|
(1,422)
|
(93)
|
(379)
|
225
|
(280)
|
27
|
Final repayments
|
(13,690)
|
(69)
|
(727)
|
(22)
|
(157)
|
(13)
|
(14,574)
|
(104)
|
Disposals1
|
—
|
—
|
—
|
—
|
(110)
|
(95)
|
(110)
|
(95)
|
Write-offs
|
—
|
—
|
—
|
—
|
(92)
|
(92)
|
(92)
|
(92)
|
As at 30 June 2023
|
106,387
|
335
|
14,416
|
387
|
2,602
|
589
|
123,405
|
1,311
|
1
|
The £98m disposals reported within Retail other includes
£64m part sale of Wealth portfolio in Italy and £34m
relates to debt sales undertaken during the year. The £110m
disposals reported within Corporate loans relates to debt sales
undertaken during the year.
|
2
|
Refinements to models used for calculation reported within
Corporate loans include a £93m movement in Corporate and
Investment Bank. These reflect model enhancements made during the
year. Barclays continually reviews the output of models to
determine accuracy of the ECL calculation including review of model
monitoring, external benchmarking and experience of model operation
over an extended period of time. This helps to ensure that the
models used continue to reflect the risks inherent across the
businesses.
|
3
|
'Net drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes' reported within Corporate
loans also include assets of £0.5bn de-recognised due to
payment received on defaulted loans from government guarantees
issued under government’s Bounce Back Loan
Scheme.
|
Loans and advances at amortised cost
|
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Debt securities and other
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
46,306
|
9
|
3,797
|
33
|
5
|
—
|
50,108
|
42
|
Transfers from Stage 1 to Stage 2
|
(260)
|
—
|
260
|
—
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
118
|
2
|
(118)
|
(2)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Transfers from Stage 3
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Business activity in the period
|
15,435
|
3
|
140
|
2
|
2
|
—
|
15,577
|
5
|
Refinements to models used for calculation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(2,087)
|
9
|
(82)
|
3
|
—
|
—
|
(2,169)
|
12
|
Final repayments
|
(5,136)
|
—
|
(168)
|
(2)
|
(5)
|
—
|
(5,309)
|
(2)
|
Disposals
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Write-offs
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
As at 30 June 2023
|
54,376
|
23
|
3,829
|
34
|
2
|
—
|
58,207
|
57
|
Reconciliation of ECL movement to impairment charge/(release) for
the period
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
12
|
31
|
5
|
48
|
Retail credit cards
|
16
|
(69)
|
650
|
597
|
Retail other
|
(19)
|
5
|
47
|
33
|
Corporate loans
|
(126)
|
(37)
|
234
|
71
|
Debt securities and other
|
14
|
1
|
—
|
15
|
ECL movement excluding assets derecognised due to disposals and
write-offs1
|
(103)
|
(69)
|
936
|
764
|
ECL
movement on loan
commitments and other financial guarantees
|
(45)
|
(7)
|
18
|
(34)
|
ECL
movement on other financial assets
|
8
|
3
|
(9)
|
2
|
Recoveries
and reimbursements2
|
62
|
(29)
|
(51)
|
(18)
|
Total
exchange and other adjustments
|
|
|
|
182
|
Total income statement charge for the period
|
|
|
|
896
|
1
|
In H123, gross write-offs amounted to £583m (H122:
£768m). Post write-off recoveries amounted to £21m (H122:
£36m). Net write-offs represent gross write-offs less post
write-off recoveries and amounted to £562m (H122:
£732m).
|
2
|
Recoveries and reimbursements includes a net reduction of £3m
(H122 gain: £11m) in amounts expected to be received under the
arrangement where Group has entered into financial guarantee
contracts which provide credit protection over certain loan assets
with third parties; cash recoveries of previously written off
amounts is £21m (H122: £36m).
|
Loan commitments and financial guarantees
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Retail mortgages
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
11,714
|
—
|
450
|
—
|
6
|
—
|
12,170
|
—
|
Net transfers between stages
|
(22)
|
—
|
20
|
—
|
2
|
—
|
—
|
—
|
Business activity in the period
|
6,019
|
—
|
—
|
—
|
—
|
—
|
6,019
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(7,423)
|
—
|
18
|
—
|
(4)
|
—
|
(7,409)
|
—
|
Limit management and final repayments
|
(190)
|
—
|
(21)
|
—
|
—
|
—
|
(211)
|
—
|
As at 30 June 2023
|
10,098
|
—
|
467
|
—
|
4
|
—
|
10,569
|
—
|
|
|
|
|
|
|
|
|
|
Retail credit cards
|
As at 1 January 2023
|
144,957
|
50
|
5,435
|
83
|
228
|
—
|
150,620
|
133
|
Net transfers between stages
|
(358)
|
36
|
293
|
(36)
|
65
|
—
|
—
|
—
|
Business activity in the period
|
10,136
|
7
|
107
|
6
|
1
|
—
|
10,244
|
13
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(6,446)
|
(34)
|
(646)
|
76
|
(36)
|
—
|
(7,128)
|
42
|
Limit management and final repayments
|
(7,696)
|
(5)
|
(331)
|
(20)
|
(37)
|
—
|
(8,064)
|
(25)
|
As at 30 June 2023
|
140,593
|
54
|
4,858
|
109
|
221
|
—
|
145,672
|
163
|
|
|
|
|
|
|
|
|
|
Retail other
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
10,427
|
5
|
520
|
—
|
80
|
—
|
11,027
|
5
|
Net transfers between stages
|
(92)
|
—
|
67
|
—
|
25
|
—
|
—
|
—
|
Business activity in the period
|
655
|
—
|
2
|
—
|
2
|
—
|
659
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(1,209)
|
3
|
(44)
|
—
|
(48)
|
—
|
(1,301)
|
3
|
Limit management and final repayments
|
(420)
|
—
|
(10)
|
—
|
—
|
—
|
(430)
|
—
|
As at 30 June 2023
|
9,361
|
8
|
535
|
—
|
59
|
—
|
9,955
|
8
|
|
|
|
|
|
|
|
|
|
Corporate loans
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
205,684
|
190
|
24,289
|
232
|
866
|
23
|
230,839
|
445
|
Net transfers between stages
|
747
|
18
|
(898)
|
(19)
|
151
|
1
|
—
|
—
|
Business activity in the period
|
22,771
|
7
|
544
|
8
|
1
|
—
|
23,316
|
15
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
1,977
|
(26)
|
594
|
(3)
|
184
|
19
|
2,755
|
(10)
|
Limit management and final repayments
|
(26,568)
|
(51)
|
(1,752)
|
(19)
|
(224)
|
(2)
|
(28,544)
|
(72)
|
As at 30 June 2023
|
204,611
|
138
|
22,777
|
199
|
978
|
41
|
228,366
|
378
|
|
|
|
|
|
|
|
|
|
Debt securities and other
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
163
|
—
|
—
|
—
|
—
|
—
|
163
|
—
|
Net transfers between stages
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Business activity in the period
|
14
|
—
|
—
|
—
|
—
|
—
|
14
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(1)
|
—
|
—
|
—
|
—
|
—
|
(1)
|
—
|
Limit management and final repayments
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
As at 30 June 2023
|
176
|
—
|
—
|
—
|
—
|
—
|
176
|
—
|
Management adjustments to models for impairment
Management adjustments to impairment models are applied in order to
factor in certain conditions or changes in policy that are not
fully incorporated into the impairment models, or to reflect
additional facts and circumstances at the period end. Management
adjustments are reviewed and incorporated into future model
development where applicable.
Management adjustments are captured through “Economic
uncertainty” and “Other” adjustments, and are
presented by product below:
Management adjustments to models for impairment
allowance presented by
product1
|
Impairment
allowance pre
management
adjustments2
|
Economic
uncertainty
adjustments
|
Other
adjustments
|
Management
adjustments
|
Total
impairment
allowance3
|
Proportion of
Management
adjustments to
total impairment
allowance
|
|
|
(a)
|
(b)
|
(a+b)
|
|
|
As at 30 June 2023
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Retail mortgages
|
416
|
22
|
116
|
138
|
554
|
24.9
|
Retail credit cards
|
3,122
|
143
|
48
|
191
|
3,313
|
5.8
|
Retail other
|
453
|
8
|
45
|
53
|
506
|
10.5
|
Corporate loans
|
1,441
|
98
|
150
|
248
|
1,689
|
14.7
|
Debt securities and other
|
57
|
—
|
—
|
—
|
57
|
—
|
Total
|
5,489
|
271
|
359
|
630
|
6,119
|
10.3
|
|
|
|
|
|
|
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Retail mortgages
|
427
|
4
|
85
|
89
|
516
|
17.2
|
Retail credit cards
|
2,986
|
93
|
87
|
180
|
3,166
|
5.7
|
Retail other
|
455
|
25
|
99
|
124
|
579
|
21.4
|
Corporate loans
|
1,740
|
195
|
(63)
|
132
|
1,872
|
7.1
|
Debt securities and other
|
42
|
—
|
—
|
—
|
42
|
—
|
Total
|
5,650
|
317
|
208
|
525
|
6,175
|
8.5
|
Economic uncertainty adjustments presented by stage
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 30 June 2023
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
5
|
14
|
3
|
22
|
Retail credit cards
|
27
|
116
|
—
|
143
|
Retail other
|
3
|
5
|
—
|
8
|
Corporate loans
|
77
|
14
|
7
|
98
|
Debt securities and other
|
—
|
—
|
—
|
—
|
Total
|
112
|
149
|
10
|
271
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
1
|
3
|
—
|
4
|
Retail credit cards
|
17
|
76
|
—
|
93
|
Retail other
|
7
|
17
|
1
|
25
|
Corporate loans
|
181
|
14
|
—
|
195
|
Debt securities and other
|
—
|
—
|
—
|
—
|
Total
|
206
|
110
|
1
|
317
|
1
|
Positive values reflect an increase in impairment allowance and
negative values reflect a reduction in the impairment
allowance
|
2
|
Includes £4.7bn (FY22: £4.8bn) of modelled ECL,
£0.4bn (FY22: £0.4bn) of individually assessed
impairments and £0.4bn (FY22: £0.5bn) ECL from
non-modelled exposures.
|
3
|
Total impairment allowance consists of ECL stock on drawn and
undrawn exposure.
|
Economic uncertainty adjustments
Models have been developed with data from non-inflationary periods
establishing a relationship between input variables and customer
delinquency based on past behaviour. Additionally, models are
trying to interpret significant rates of change in macroeconomic
variables and applying these to stable probability of default (PD)
levels. As such there is a risk that the modelled output fails to
capture the appropriate response to changes in macroeconomic
variables including higher interest rates and continuing
inflationary stress with modelled impairment provisions impacted by
uncertainty.
This uncertainty continues to be captured in two ways. Firstly,
customer uncertainty: the identification of customers and clients
who may be more vulnerable to economic instability; and secondly,
model uncertainty: to capture the impact from model limitations and
sensitivities to specific macroeconomic parameters which are
applied at a portfolio level.
Economic uncertainty adjustments have decreased from last year,
informed by retirement of all legacy Corporate and Investment Bank
(CIB) adjustments following the rebuild of certain CIB models in
order to better capture the macroeconomic outlook. Furthermore,
adjustments have been re-sized to capture affordability headwinds
in UK retail lending considered not adequately captured in modelled
outcomes.
The balance as at H123 is £271m (FY22: £317m) and
includes:
Customer and client uncertainty provisions of £221m (FY22:
£423m) includes:
●
|
Retail mortgages: £22m
(FY22: £4m) includes an adjustment applied to customers
considered most vulnerable to affordability pressures. The increase
is primarily driven by an adjustment introduced to reflect the risk
of borrowers refinancing onto higher rates in the medium
term.
|
●
|
Retail credit cards: £93m
(FY22: £93m) and Retail other:
£8m (FY22: £25m) includes an
adjustment applied to customers considered most vulnerable to
affordability pressures. This adjustment is predominantly held in
Stage 2 in line with customer risk profiles. Reduction
within Retail other
is primarily driven by re-scoping for
customers remaining resilient to affordability
headwinds.
|
●
|
Corporate loans: £98m
(FY22: £301m) includes an adjustment of £86m to reflect
possible cross default risk on Barclays’ lending in respect
of clients who have taken bounce back loans and £12m for SME
exposures considered most at risk from inflationary concerns,
supply chain constraints and consumer demand
headwinds.
The reduction of £(203)m is primarily informed by retirement
of adjustment for high risk sectors following a granular credit
risk assessment for qualifying exposures, and re-build of certain
CIB models which more appropriately capture downside
risk.
|
Model uncertainty provisions of £50m (FY22: £(106)m)
includes:
●
|
Retail credit cards: £50m
(FY22: £nil) includes an adjustment to reflect recent changes
to certain macroeconomic variables to more appropriately capture
the provision impact.
|
●
|
Previously held adjustment of £(106)m within
Corporate
loans to correct for model
oversensitivity has been retired following the re-build of certain
CIB models which more appropriately capture the macroeconomic
outlook.
|
Other adjustments
Other adjustments are operational in nature and are expected to
remain in place until they can be reflected in the underlying
models. These adjustments result from data limitations and model
performance related issues identified through model monitoring and
other established governance processes.
Other adjustments of £359m (FY22: £208m)
includes:
●
|
Retail mortgages: £116m
(FY22: £85m) primarily include adjustments informed by model
monitoring and an adjustment for the definition of default under
the Capital Requirements Regulation. The increase is predominantly
driven by resizing of model monitoring
adjustments.
|
●
|
Retail credit cards: £48m
(FY22: £87m) primarily includes an adjustment in the UK for
the definition of default under the Capital Requirements
Regulation, and an adjustment in the US to the qualitative measures
for high-risk account management (HRAM) accounts; partially offset
by model monitoring adjustments.
The reduction is primarily driven by an adjustment made during the
year in the US to limit ECL sensitivity to certain macroeconomic
variables partially offset by an adjustment in the UK for
recalibration of Loss Given Default (LGD) to reflect revised
recovery expectations.
|
●
|
Retail other: £45m (FY22:
£99m) primarily includes an adjustment for the definition of
default under the Capital Requirements Regulation and adjustments
informed by model monitoring. The reduction is primarily driven by
operational model adjustments made during the year within Private
Banking and Wealth Management.
|
●
|
Corporate loans: £150m
(FY22: £(63)m) primarily include adjustments within SME
informed by model monitoring and definition of default under the
Capital Requirements Regulation.
Movement of £213m within Corporate loans
is primarily driven by the retirement
of all CIB legacy adjustments. Management adjustments held in 2022
primarily comprised of an adjustment to limit ECL sensitivity to
the macroeconomic variable for Federal Tax Receipts and model
monitoring adjustments, which is no longer needed following the
re-build of certain CIB models.
|
Measurement uncertainty
Scenarios used to calculate the Group’s ECL charge were
refreshed in Q223 with the Baseline scenario reflecting the latest
consensus macroeconomic forecasts available at the time of the
scenario refresh. In the Baseline scenario, although the outlook in
major economies has improved somewhat (since Q422), the full effect
of the inflation shock and rising rates is lagged and so
contributes to a further squeeze of household finances over the
coming quarters, posing downside risks to GDP. UK and US
unemployment rates increase only gradually in the coming quarters,
peaking at 4.5% in Q424 and 4.7% in Q224 respectively. Central
banks continue raising interest rates, with both the UK bank rate
and the US federal funds rate peaking at 5.25% during
2023.
The Downside 2 scenario is broadly aligned to the previous scenario
refresh. Inflation rates rise again as energy prices suddenly surge
again amid renewed geopolitical risks. Inflation becomes entrenched
and inflation expectations go up, contributing to higher pressure
on wage growth. Central banks are forced to raise interest rates
sharply with the UK bank rate reaching 8% and the US federal funds
rate peaking at 7%. Weakened businesses lay off workers and
consumers stop spending exacerbating the downward stress.
Unemployment peaks at 8.5% in the UK and 9.8% in the US. Given
already stretched valuations, the sharp increase in borrowing costs
sees house prices decrease significantly. In the Upside scenarios,
lower energy prices add downward pressure on prices globally, while
recovering labour force participation limits wage growth. As a
result of easing inflation, central banks lower interest rates to
support the economic recovery.
The methodology for estimating scenario probability weights
involves simulating a range of future paths for UK and US GDP using
historical data with the five scenarios mapped against the
distribution of these future paths. The median is centred around
the Baseline with scenarios further from the Baseline attracting a
lower weighting before the five weights are normalised to total
100%. The decrease in the Downside weightings and the increase in
the Upside weightings reflected the improving economic outlook
which moved the Baseline UK/US GDP paths closer to the Upside
scenarios. For further details see page 38.
The economic uncertainty adjustments of £0.3bn (2022:
£0.3bn) have been applied as overlays to the modelled ECL
output. These adjustments consist of a customer and client
uncertainty provision of £0.2bn (2022: £0.4bn) which has
been applied to customers and clients considered most vulnerable to
affordability pressures, and a model uncertainty adjustment of
£0.1bn (2022: £(0.1)bn). For further details see page
36.
The following tables show the key macroeconomic variables used in
the five scenarios (5 year annual paths) and the probability
weights applied to each scenario.
Macroeconomic variables used in the calculation of ECL
|
As at 30.06.23
|
2023
|
2024
|
2025
|
2026
|
2027
|
Baseline
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
0.3
|
0.9
|
1.6
|
1.8
|
1.9
|
UK
unemployment2
|
4.1
|
4.4
|
4.2
|
4.2
|
4.2
|
UK
HPI3
|
(6.1)
|
(1.3)
|
2.0
|
4.3
|
5.7
|
UK bank rate
|
4.8
|
4.6
|
3.9
|
3.8
|
3.5
|
US
GDP1
|
1.1
|
0.7
|
2.0
|
2.0
|
2.0
|
US
unemployment4
|
3.8
|
4.6
|
4.6
|
4.6
|
4.6
|
US
HPI5
|
(0.7)
|
3.6
|
2.4
|
2.7
|
2.7
|
US federal funds rate
|
5.0
|
3.7
|
3.0
|
2.8
|
3.0
|
|
|
|
|
|
|
Downside 2
|
|
|
|
|
|
UK
GDP1
|
(0.5)
|
(5.0)
|
(0.4)
|
2.5
|
1.9
|
UK
unemployment2
|
4.4
|
7.8
|
8.3
|
7.7
|
7.1
|
UK
HPI3
|
(10.2)
|
(20.5)
|
(17.7)
|
5.6
|
8.2
|
UK bank rate
|
5.5
|
8.0
|
7.3
|
6.1
|
4.8
|
US
GDP1
|
0.5
|
(4.8)
|
(0.3)
|
2.8
|
2.1
|
US
unemployment4
|
4.5
|
8.7
|
9.6
|
8.5
|
7.0
|
US
HPI5
|
(1.8)
|
(3.7)
|
(4.2)
|
2.6
|
4.8
|
US federal funds rate
|
5.7
|
7.0
|
6.5
|
5.1
|
4.2
|
|
|
|
|
|
|
Downside 1
|
|
|
|
|
|
UK
GDP1
|
(0.1)
|
(2.1)
|
0.6
|
2.2
|
1.9
|
UK
unemployment2
|
4.2
|
6.1
|
6.2
|
5.9
|
5.6
|
UK
HPI3
|
(8.1)
|
(11.3)
|
(8.2)
|
5.0
|
7.0
|
UK bank rate
|
5.2
|
6.1
|
5.6
|
4.8
|
4.1
|
US
GDP1
|
0.8
|
(2.0)
|
0.8
|
2.4
|
2.0
|
US
unemployment4
|
4.1
|
6.7
|
7.1
|
6.5
|
5.8
|
US
HPI5
|
(1.2)
|
(0.1)
|
(0.9)
|
2.7
|
3.8
|
US federal funds rate
|
5.2
|
4.9
|
4.5
|
4.3
|
3.8
|
|
|
|
|
|
|
Upside 2
|
|
|
|
|
|
UK
GDP1
|
1.2
|
4.1
|
3.2
|
2.6
|
2.3
|
UK
unemployment2
|
3.9
|
3.6
|
3.5
|
3.6
|
3.6
|
UK
HPI3
|
0.4
|
10.6
|
4.8
|
4.2
|
3.8
|
UK bank rate
|
4.4
|
3.3
|
2.5
|
2.5
|
2.5
|
US
GDP1
|
2.2
|
3.9
|
3.0
|
2.8
|
2.8
|
US
unemployment4
|
3.4
|
3.5
|
3.6
|
3.6
|
3.6
|
US
HPI5
|
2.5
|
5.5
|
4.6
|
4.5
|
4.5
|
US federal funds rate
|
4.7
|
3.2
|
2.2
|
2.0
|
2.0
|
|
|
|
|
|
|
Upside 1
|
|
|
|
|
|
UK
GDP1
|
0.8
|
2.5
|
2.4
|
2.2
|
2.1
|
UK
unemployment2
|
4.0
|
4.0
|
3.9
|
3.9
|
3.9
|
UK
HPI3
|
(2.9)
|
4.5
|
3.4
|
4.3
|
4.7
|
UK bank rate
|
4.6
|
4.0
|
3.1
|
3.0
|
3.0
|
US
GDP1
|
1.6
|
2.3
|
2.5
|
2.4
|
2.4
|
US
unemployment4
|
3.6
|
4.1
|
4.1
|
4.1
|
4.1
|
US
HPI5
|
0.9
|
4.6
|
3.5
|
3.6
|
3.6
|
US federal funds rate
|
4.8
|
3.4
|
2.6
|
2.5
|
2.5
|
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.
|
Macroeconomic variables used in the calculation of ECL
|
As at 31.12.22
|
2022
|
2023
|
2024
|
2025
|
2026
|
Baseline
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
(0.8)
|
0.9
|
1.8
|
1.9
|
UK
unemployment2
|
3.7
|
4.5
|
4.4
|
4.1
|
4.2
|
UK
HPI3
|
8.4
|
(4.7)
|
(1.7)
|
2.2
|
2.2
|
UK bank rate
|
1.8
|
4.4
|
4.1
|
3.8
|
3.4
|
US
GDP1
|
1.8
|
0.5
|
1.2
|
1.5
|
1.5
|
US
unemployment4
|
3.7
|
4.3
|
4.7
|
4.7
|
4.7
|
US
HPI5
|
11.2
|
1.8
|
1.5
|
2.3
|
2.4
|
US federal funds rate
|
2.1
|
4.8
|
3.6
|
3.1
|
3.0
|
|
|
|
|
|
|
Downside 2
|
|
|
|
|
|
UK
GDP1
|
3.3
|
(3.4)
|
(3.8)
|
2.0
|
2.3
|
UK
unemployment2
|
3.7
|
6.0
|
8.4
|
8.0
|
7.4
|
UK
HPI3
|
8.4
|
(18.3)
|
(18.8)
|
(7.7)
|
8.2
|
UK bank rate
|
1.8
|
7.3
|
7.9
|
6.6
|
5.5
|
US
GDP1
|
1.8
|
(2.7)
|
(3.4)
|
2.0
|
2.6
|
US
unemployment4
|
3.7
|
6.0
|
8.5
|
8.1
|
7.1
|
US
HPI5
|
11.2
|
(3.1)
|
(4.0)
|
(1.9)
|
4.8
|
US federal funds rate
|
2.1
|
6.6
|
6.9
|
5.8
|
4.6
|
|
|
|
|
|
|
Downside 1
|
|
|
|
|
|
UK
GDP1
|
3.3
|
(2.1)
|
(1.5)
|
1.9
|
2.1
|
UK
unemployment2
|
3.7
|
5.2
|
6.4
|
6.0
|
5.8
|
UK
HPI3
|
8.4
|
(11.7)
|
(10.6)
|
(2.8)
|
5.2
|
UK bank rate
|
1.8
|
5.9
|
6.1
|
5.3
|
4.6
|
US
GDP1
|
1.8
|
(1.1)
|
(1.1)
|
1.7
|
2.1
|
US
unemployment4
|
3.7
|
5.1
|
6.6
|
6.4
|
5.9
|
US
HPI5
|
11.2
|
(0.7)
|
(1.3)
|
0.2
|
3.6
|
US federal funds rate
|
2.1
|
5.8
|
5.4
|
4.4
|
3.9
|
|
|
|
|
|
|
Upside 2
|
|
|
|
|
|
UK
GDP1
|
3.3
|
2.8
|
3.7
|
2.9
|
2.4
|
UK
unemployment2
|
3.7
|
3.5
|
3.4
|
3.4
|
3.4
|
UK
HPI3
|
8.4
|
8.7
|
7.5
|
4.4
|
4.2
|
UK bank rate
|
1.8
|
3.1
|
2.6
|
2.5
|
2.5
|
US
GDP1
|
1.8
|
3.3
|
3.5
|
2.8
|
2.8
|
US
unemployment4
|
3.7
|
3.3
|
3.3
|
3.3
|
3.3
|
US
HPI5
|
11.2
|
5.8
|
5.1
|
4.5
|
4.5
|
US federal funds rate
|
2.1
|
3.6
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 1
|
|
|
|
|
|
UK
GDP1
|
3.3
|
1.0
|
2.3
|
2.4
|
2.1
|
UK
unemployment2
|
3.7
|
4.0
|
3.9
|
3.8
|
3.8
|
UK
HPI3
|
8.4
|
1.8
|
2.9
|
3.3
|
3.2
|
UK bank rate
|
1.8
|
3.5
|
3.3
|
3.0
|
2.8
|
US
GDP1
|
1.8
|
1.9
|
2.3
|
2.2
|
2.2
|
US
unemployment4
|
3.7
|
3.8
|
4.0
|
4.0
|
4.0
|
US
HPI5
|
11.2
|
3.8
|
3.3
|
3.4
|
3.4
|
US federal funds rate
|
2.1
|
3.9
|
3.4
|
3.0
|
3.0
|
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 30.06.23
|
|
|
|
|
|
Scenario probability weighting
|
13.0
|
24.7
|
40.2
|
15.2
|
6.9
|
As at 31.12.22
|
|
|
|
|
|
Scenario probability weighting
|
10.9
|
23.1
|
39.4
|
17.6
|
9.0
|
Specific bases show the most extreme position of each variable in
the context of the downside/upside scenarios, for example, the
highest unemployment for downside scenarios, average unemployment
for baseline scenarios and lowest unemployment for upside
scenarios. GDP and HPI downside and upside scenario data represents
the lowest and highest cumulative position relative to the start
point, in the 20 quarter period.
Macroeconomic variables (specific
bases)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 30.06.23
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
15.1
|
11.2
|
1.3
|
(2.7)
|
(6.9)
|
UK
unemployment3
|
3.5
|
3.9
|
4.2
|
6.5
|
8.5
|
UK
HPI4
|
25.8
|
14.6
|
0.8
|
(25.2)
|
(41.5)
|
UK bank rate
|
2.5
|
3.0
|
4.1
|
6.3
|
8.0
|
US
GDP2
|
15.9
|
11.9
|
1.6
|
(2.3)
|
(6.2)
|
US
unemployment3
|
3.3
|
3.5
|
4.4
|
7.2
|
9.8
|
US
HPI4
|
23.6
|
17.2
|
2.1
|
(2.3)
|
(10.1)
|
US federal funds rate
|
2.0
|
2.5
|
3.5
|
5.3
|
7.0
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
13.9
|
9.4
|
1.4
|
(3.2)
|
(6.8)
|
UK
unemployment3
|
3.4
|
3.6
|
4.2
|
6.6
|
8.5
|
UK
HPI4
|
37.8
|
21.0
|
1.2
|
(17.9)
|
(35.0)
|
UK bank rate
|
0.5
|
0.5
|
3.5
|
6.3
|
8.0
|
US
GDP2
|
14.1
|
9.6
|
1.3
|
(2.5)
|
(6.3)
|
US
unemployment3
|
3.3
|
3.6
|
4.4
|
6.7
|
8.6
|
US
HPI4
|
35.0
|
27.5
|
3.8
|
3.7
|
0.2
|
US federal funds rate
|
0.1
|
0.1
|
3.3
|
6.0
|
7.0
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index. 20 quarter period starts from Q123 (2022:
Q122).
|
2
|
Maximum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Upside scenarios; 5-year yearly average CAGR in Baseline;
minimum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Downside scenarios.
|
3
|
Lowest quarter in 20 quarter period in Upside scenarios; 5-year
average in Baseline; highest quarter 20 quarter period in Downside
scenarios.
|
4
|
Maximum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Upside scenarios; 5-year quarter end CAGR in Baseline;
minimum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Downside scenarios.
|
Average basis represents the average quarterly value of variables
in the 20 quarter period with GDP and HPI based on yearly average
and quarterly CAGRs respectively.
Macroeconomic variables (5-year
averages)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 30.06.23
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
2.7
|
2.0
|
1.3
|
0.5
|
(0.3)
|
UK
unemployment3
|
3.6
|
3.9
|
4.2
|
5.6
|
7.0
|
UK
HPI4
|
4.7
|
2.8
|
0.8
|
(3.4)
|
(7.6)
|
UK bank rate
|
3.0
|
3.6
|
4.1
|
5.2
|
6.4
|
US
GDP2
|
2.9
|
2.3
|
1.6
|
0.8
|
—
|
US
unemployment3
|
3.5
|
4.0
|
4.4
|
6.0
|
7.6
|
US
HPI4
|
4.3
|
3.2
|
2.1
|
0.8
|
(0.5)
|
US federal funds rate
|
2.8
|
3.2
|
3.5
|
4.5
|
5.7
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
3.0
|
2.2
|
1.4
|
0.7
|
—
|
UK
unemployment3
|
3.5
|
3.8
|
4.2
|
5.4
|
6.7
|
UK
HPI4
|
6.6
|
3.9
|
1.2
|
(2.6)
|
(6.4)
|
UK bank rate
|
2.5
|
2.9
|
3.5
|
4.7
|
5.8
|
US
GDP2
|
2.9
|
2.1
|
1.3
|
0.7
|
—
|
US
unemployment3
|
3.4
|
3.9
|
4.4
|
5.5
|
6.7
|
US
HPI4
|
6.2
|
5.0
|
3.8
|
2.5
|
1.2
|
US federal funds rate
|
2.8
|
3.1
|
3.3
|
4.3
|
5.2
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index.
|
2
|
5-year yearly average CAGR, starting 2022 (2022:
2021).
|
3
|
5-year average. Period based on 20 quarters from Q123 (2022:
Q122).
|
4
|
5-year quarter end CAGR, starting Q422 (2022: Q421).
|
ECL under 100% weighted scenarios for modelled
portfolios
The table below shows the modelled ECL assuming each of the five
modelled scenarios are 100% weighted with the dispersion of results
around the Baseline, highlighting the impact on exposure and ECL
across the scenarios. Model exposure uses exposure at default (EAD)
values and is not directly comparable to gross exposure used in
prior disclosures.
|
Scenarios
|
As at 30 June 2023
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
149,626
|
151,300
|
150,889
|
150,274
|
147,210
|
141,860
|
Retail
credit cards2
|
66,280
|
66,587
|
66,408
|
66,240
|
66,101
|
65,834
|
Retail
other2
|
11,479
|
11,654
|
11,573
|
11,482
|
11,307
|
11,146
|
Corporate
loans2
|
146,763
|
152,688
|
150,797
|
147,814
|
142,071
|
127,549
|
Debt
securities and other3
|
28,515
|
28,693
|
28,673
|
28,515
|
28,503
|
28,226
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
10
|
3
|
4
|
5
|
18
|
49
|
Retail credit cards
|
495
|
483
|
489
|
495
|
505
|
515
|
Retail other
|
52
|
47
|
50
|
51
|
55
|
60
|
Corporate loans
|
278
|
234
|
257
|
275
|
300
|
303
|
Debt securities and other
|
21
|
18
|
19
|
21
|
23
|
26
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
—
|
—
|
—
|
—
|
—
|
—
|
Retail credit cards
|
0.7
|
0.7
|
0.7
|
0.7
|
0.8
|
0.8
|
Retail other
|
0.5
|
0.4
|
0.4
|
0.4
|
0.5
|
0.5
|
Corporate loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.2
|
0.2
|
Debt securities and other
|
0.1
|
0.1
|
0.1
|
0.1
|
0.1
|
0.1
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
18,147
|
16,473
|
16,884
|
17,499
|
20,563
|
25,913
|
Retail
credit cards2
|
7,471
|
6,748
|
7,090
|
7,424
|
8,170
|
9,066
|
Retail
other2
|
1,699
|
1,512
|
1,597
|
1,690
|
1,891
|
2,078
|
Corporate
loans2
|
26,584
|
20,495
|
22,449
|
25,555
|
31,422
|
46,128
|
Debt
securities and other3
|
2,629
|
2,451
|
2,471
|
2,629
|
2,641
|
2,918
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
40
|
18
|
21
|
24
|
62
|
300
|
Retail credit cards
|
1,559
|
1,376
|
1,456
|
1,541
|
1,757
|
2,023
|
Retail other
|
137
|
115
|
126
|
135
|
162
|
185
|
Corporate loans
|
558
|
368
|
427
|
521
|
805
|
1,401
|
Debt securities and other
|
35
|
28
|
31
|
34
|
41
|
56
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
0.2
|
0.1
|
0.1
|
0.1
|
0.3
|
1.2
|
Retail credit cards
|
20.9
|
20.4
|
20.5
|
20.8
|
21.5
|
22.3
|
Retail other
|
8.1
|
7.6
|
7.9
|
8.0
|
8.6
|
8.9
|
Corporate loans
|
2.1
|
1.8
|
1.9
|
2.0
|
2.6
|
3.0
|
Debt securities and other
|
1.3
|
1.1
|
1.3
|
1.3
|
1.6
|
1.9
|
Stage 3 Model Exposure (£m)4
|
|
|
|
|
|
|
Retail mortgages
|
1,580
|
1,580
|
1,580
|
1,580
|
1,580
|
1,580
|
Retail credit cards
|
1,497
|
1,497
|
1,497
|
1,497
|
1,497
|
1,497
|
Retail other
|
219
|
219
|
219
|
219
|
219
|
219
|
Corporate loans
|
3,193
|
3,193
|
3,193
|
3,193
|
3,193
|
3,193
|
Debt
securities and other3
|
—
|
—
|
—
|
—
|
—
|
—
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
329
|
303
|
309
|
316
|
360
|
455
|
Retail credit cards
|
983
|
966
|
975
|
983
|
996
|
1,007
|
Retail other
|
138
|
136
|
137
|
138
|
140
|
143
|
Corporate
loans5
|
81
|
76
|
78
|
80
|
88
|
97
|
Debt securities and other
|
—
|
—
|
—
|
—
|
—
|
—
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
20.8
|
19.2
|
19.6
|
20.0
|
22.8
|
28.8
|
Retail credit cards
|
65.7
|
64.5
|
65.1
|
65.7
|
66.5
|
67.3
|
Retail other
|
63.0
|
62.1
|
62.6
|
63.0
|
63.9
|
65.3
|
Corporate
loans5
|
2.5
|
2.4
|
2.4
|
2.5
|
2.8
|
3.0
|
Debt securities and other
|
—
|
—
|
—
|
—
|
—
|
—
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
379
|
324
|
334
|
345
|
440
|
804
|
Retail credit cards
|
3,037
|
2,825
|
2,920
|
3,019
|
3,258
|
3,545
|
Retail other
|
327
|
298
|
313
|
324
|
357
|
388
|
Corporate
loans5
|
917
|
678
|
762
|
876
|
1,193
|
1,801
|
Debt securities and other
|
56
|
46
|
50
|
55
|
64
|
82
|
Total Model ECL
|
4,716
|
4,171
|
4,379
|
4,619
|
5,312
|
6,620
|
Reconciliation to total ECL
|
£m
|
Total weighted model ECL
|
4,716
|
ECL
from individually assessed impairments5
|
420
|
ECL from non-modelled exposures and others
|
353
|
ECL from post model management adjustments
|
630
|
Of which: ECL from economic uncertainty adjustments
|
271
|
Total ECL
|
6,119
|
1
|
Model exposures are allocated to a stage based on an individual
scenario rather than a probability-weighted approach as required
for Barclays reported impairment allowances. As a result, it is not
possible to back solve the final reported weighted ECL from
individual scenarios given balances may be assigned to a different
stage dependent on the scenario.
|
2
|
For Retail credit cards, Retail other and Corporate loans, the
model exposure movement between stages 1 and 2 across scenarios
differs due to additional impacts from the undrawn
exposure.
|
3
|
Debt securities and other excludes Treasury exposures since these
are non-modelled.
|
4
|
Model exposures allocated to Stage 3 does not change in any of the
scenarios as the transition criteria relies only on an observable
evidence of default as at 30 June 2023 and not on macroeconomic
scenario.
|
5
|
Material corporate loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £420m is
reported as an individually assessed impairment in the
reconciliation table.
|
The use of five scenarios with associated weightings results in a
total weighted ECL uplift from the Baseline ECL of
2.1%.
Retail mortgages: Total
weighted ECL of £379m represents a 9.9% increase over the
Baseline ECL (£345m) with coverage ratios remaining steady
across the Upside scenarios, Baseline and Downside 1 scenario.
Under the Downside 2 scenario, total ECL increases to £804m
driven by a significant fall in UK HPI.
Retail credit cards: Total
weighted ECL of £3,037m is broadly aligned to the Baseline ECL
(£3,019m). Total ECL increases to £3,545m under the
Downside 2 scenario, driven by an increase in UK unemployment
rate.
Retail other: Total weighted
ECL of £327m is aligned to the Baseline ECL (£324m).
Total ECL increases to £388m under the Downside 2 scenario,
largely driven by increase in UK unemployment
rate.
Corporate loans: Total weighted
ECL of £917m represents a 4.7% increase over the Baseline ECL
(£876m). Total ECL increases to £1,801m under Downside 2
scenario, driven by decrease in UK GDP and US
GDP.
Debt securities and other: Total weighted ECL of £56m is broadly aligned
to the Baseline ECL (£55m). Total ECL increases to £82m
under the Downside 2 scenario.
|
Scenarios
|
As at 31 December 2022
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
144,701
|
147,754
|
146,873
|
145,322
|
142,599
|
138,619
|
Retail
credit cards2
|
67,204
|
67,622
|
67,352
|
67,080
|
66,908
|
66,636
|
Retail
other2
|
12,282
|
12,428
|
12,341
|
12,235
|
12,111
|
11,986
|
Corporate
loans2
|
156,302
|
164,207
|
161,578
|
158,218
|
150,827
|
138,618
|
Debt
securities and other3
|
32,380
|
32,484
|
32,403
|
32,385
|
32,321
|
31,137
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
7
|
3
|
3
|
4
|
9
|
30
|
Retail credit cards
|
509
|
493
|
503
|
512
|
517
|
521
|
Retail other
|
52
|
45
|
49
|
52
|
54
|
55
|
Corporate loans
|
341
|
259
|
290
|
325
|
397
|
443
|
Debt securities and other
|
14
|
10
|
11
|
13
|
17
|
21
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
—
|
—
|
—
|
—
|
—
|
—
|
Retail credit cards
|
0.8
|
0.7
|
0.7
|
0.8
|
0.8
|
0.8
|
Retail other
|
0.4
|
0.4
|
0.4
|
0.4
|
0.4
|
0.5
|
Corporate loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.3
|
0.3
|
Debt securities and other
|
—
|
—
|
—
|
—
|
0.1
|
0.1
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
18,723
|
15,670
|
16,551
|
18,102
|
20,825
|
24,805
|
Retail
credit cards2
|
7,611
|
6,551
|
7,118
|
7,691
|
8,313
|
9,062
|
Retail
other2
|
1,559
|
1,386
|
1,485
|
1,601
|
1,741
|
1,881
|
Corporate
loans2
|
24,935
|
16,858
|
19,550
|
23,031
|
30,548
|
42,952
|
Debt
securities and other3
|
943
|
839
|
919
|
938
|
1,002
|
2,186
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
33
|
15
|
18
|
23
|
45
|
151
|
Retail credit cards
|
1,624
|
1,361
|
1,487
|
1,624
|
1,811
|
2,032
|
Retail other
|
124
|
96
|
109
|
124
|
144
|
160
|
Corporate loans
|
610
|
399
|
470
|
569
|
817
|
1,304
|
Debt securities and other
|
32
|
23
|
26
|
31
|
42
|
66
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
0.2
|
0.1
|
0.1
|
0.1
|
0.2
|
0.6
|
Retail credit cards
|
21.3
|
20.8
|
20.9
|
21.1
|
21.8
|
22.4
|
Retail other
|
8.0
|
6.9
|
7.3
|
7.7
|
8.3
|
8.5
|
Corporate loans
|
2.4
|
2.4
|
2.4
|
2.5
|
2.7
|
3.0
|
Debt securities and other
|
3.4
|
2.7
|
2.8
|
3.3
|
4.2
|
3.0
|
Stage 3 Model Exposure (£m)4
|
|
|
|
|
|
|
Retail mortgages
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
Retail credit cards
|
1,354
|
1,354
|
1,354
|
1,354
|
1,354
|
1,354
|
Retail other
|
216
|
216
|
216
|
216
|
216
|
216
|
Corporate loans
|
2,892
|
2,892
|
2,892
|
2,892
|
2,892
|
2,892
|
Debt
securities and other3
|
—
|
—
|
—
|
—
|
—
|
—
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
332
|
311
|
317
|
323
|
347
|
405
|
Retail credit cards
|
880
|
861
|
871
|
880
|
893
|
903
|
Retail other
|
132
|
129
|
131
|
132
|
134
|
136
|
Corporate
loans5
|
70
|
66
|
68
|
70
|
78
|
85
|
Debt securities and other
|
—
|
—
|
—
|
—
|
—
|
—
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
21.4
|
20.0
|
20.4
|
20.8
|
22.3
|
26.1
|
Retail credit cards
|
65.0
|
63.6
|
64.3
|
65.0
|
66.0
|
66.7
|
Retail other
|
61.1
|
59.7
|
60.6
|
61.1
|
62.0
|
63.0
|
Corporate
loans5
|
2.4
|
2.3
|
2.4
|
2.4
|
2.7
|
2.9
|
Debt securities and other
|
—
|
—
|
—
|
—
|
—
|
—
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
372
|
329
|
338
|
350
|
401
|
586
|
Retail credit cards
|
3,013
|
2,715
|
2,861
|
3,016
|
3,221
|
3,456
|
Retail other
|
308
|
270
|
289
|
308
|
332
|
351
|
Corporate
loans5
|
1,021
|
724
|
828
|
964
|
1,292
|
1,832
|
Debt securities and other
|
46
|
33
|
37
|
44
|
59
|
87
|
Total Model ECL
|
4,760
|
4,071
|
4,353
|
4,682
|
5,305
|
6,312
|
Reconciliation to total ECL
|
£m
|
Total weighted model ECL
|
4,760
|
ECL
from individually assessed impairments5
|
434
|
ECL from non-modelled exposures and others
|
456
|
ECL from post model management adjustments
|
525
|
Of which: ECL from economic uncertainty adjustments
|
317
|
Total ECL
|
6,175
|
1
|
Model exposures are allocated to a stage based on an individual
scenario rather than a probability-weighted approach, as required
for Barclays reported impairment allowances. As a result, it is not
possible to back solve the final reported weighted ECL from
individual scenarios given balances may be assigned to a different
stage dependent on the scenario.
|
2
|
For Retail credit cards, Retail other and Corporate loans, the
model exposure movement between stages 1 and 2 across scenarios
differs due to additional impacts from the undrawn
exposure.
|
3
|
Debt securities and other excludes Treasury exposures since these
are non-modelled.
|
4
|
Model exposures allocated to Stage 3 does not change in any of the
scenarios as the transition criteria relies only on an observable
evidence of default as at 31 December 2022 and not on macroeconomic
scenario.
|
5
|
Material corporate loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £434m is
reported as an individually assessed impairment in the
reconciliation table
|
Analysis of specific portfolios and asset types
Secured home loans
The UK
home loan portfolio primarily comprises first lien mortgages and
accounts for 95% (December
2022: 93%) of the Group’s
total home loans balance.
|
Barclays UK
|
Home loans principal portfolios
|
As at 30.06.23
|
As at 31.12.22
|
Gross loans and advances (£m)
|
166,374
|
162,380
|
90 day arrears rate, excluding recovery book (%)
|
0.2
|
0.1
|
Annualised gross charge-off rates - 180 days past due
(%)
|
0.5
|
0.5
|
Recovery book proportion of outstanding balances (%)
|
0.6
|
0.5
|
Recovery
book impairment coverage ratio (%)1
|
6.4
|
5.2
|
|
|
|
Average marked to market LTV
|
|
|
Balance weighted %
|
52.8
|
50.4
|
Valuation weighted %
|
39.2
|
37.3
|
|
|
|
New lending
|
Half year ended
30.06.23
|
Half year ended
30.06.22
|
New home loan bookings (£m)
|
12,531
|
14,117
|
New home loan proportion > 90% LTV (%)
|
0.7
|
2.6
|
Average LTV on new home loans: balance weighted (%)
|
62.5
|
68.6
|
Average LTV on new home loans: valuation weighted (%)
|
53.7
|
60.4
|
1
|
Recovery Book Impairment Coverage Ratio excludes KMC and Settle
portfolios.
|
Home loans principal portfolios
– distribution of balances by LTV1
|
Distribution of balances
|
Distribution of impairment
allowance
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Barclays UK
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
As at 30.06.23
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
75.8
|
9.5
|
0.7
|
86.0
|
10.3
|
27.4
|
27.4
|
65.1
|
—
|
0.3
|
4.3
|
0.1
|
>75% and <=90%
|
11.4
|
0.9
|
0.1
|
12.4
|
5.7
|
13.5
|
8.2
|
27.4
|
0.1
|
1.8
|
30.4
|
0.3
|
>90% and <=100%
|
1.5
|
0.1
|
—
|
1.6
|
0.9
|
1.5
|
1.9
|
4.3
|
0.1
|
1.8
|
69.9
|
0.3
|
>100%
|
—
|
—
|
—
|
—
|
0.1
|
0.5
|
2.6
|
3.2
|
0.3
|
12.9
|
70.5
|
11.2
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
78.8
|
10.5
|
0.8
|
90.1
|
10.2
|
30.8
|
33.2
|
74.2
|
—
|
0.2
|
2.9
|
0.1
|
>75% and <=90%
|
8.8
|
0.5
|
—
|
9.3
|
3.9
|
9.7
|
5.2
|
18.8
|
—
|
1.4
|
30.8
|
0.1
|
>90% and <=100%
|
0.6
|
—
|
—
|
0.6
|
0.3
|
0.3
|
2.4
|
3.0
|
—
|
1.5
|
85.0
|
0.4
|
>100%
|
—
|
—
|
—
|
—
|
0.1
|
0.6
|
3.3
|
4.0
|
0.4
|
21.4
|
64.9
|
13.1
|
1
|
Portfolio marked to market based on the most updated valuation
including recovery book balances. Updated valuations reflect the
application of the latest HPI available as at 30 June
2023.
|
New lending reduced 11% to £12.5bn (H122: £14.1bn), mainly
driven by economic conditions that resulted in general mortgage
market suppression, including higher mortgage payments as rates
continued to rise and increased cost of living factors in line with
inflation. The reduction in new home loan proportion of >90% LTV
was driven by credit tightening actions taken in the period and the
impact from the withdrawal of the Government Help to Buy
scheme.
Head Office: Italian home loans and advances at amortised
cost reduced to £4.0bn
(2022: £4.5bn) and
continue to run off since new bookings ceased in 2016. The
portfolio is secured on residential property with an average
balance weighted mark to market LTV of 56.6% (2022: 58.8%). 90 day arrears increased to
1.6% (2022: 1.2%) due to deterioration caused by
affordability stress related to rising inflation and interest
rates. The gross charge-off rate was stable at 0.6% (2022: 0.6%).
Retail credit cards and Retail other
The
principal portfolios listed below accounted for 91% (December 2022: 85%) of the Group’s total credit
cards, unsecured loans and other retail lending.
Principal portfolios
|
Gross exposure
|
30 day arrears
rate, excluding
recovery book
|
90 day arrears
rate, excluding
recovery book
|
Annualised
gross write-off
rate
|
Annualised
net write-off
rate
|
As at 30.06.23
|
£m
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
UK cards
|
10,011
|
0.9
|
0.2
|
2.0
|
1.9
|
UK personal loans
|
3,717
|
1.5
|
0.6
|
1.3
|
1.1
|
Barclays Partner Finance
|
2,557
|
0.5
|
0.2
|
0.6
|
0.6
|
Barclays International
|
|
|
|
|
|
US cards
|
24,908
|
2.4
|
1.2
|
2.5
|
2.4
|
Germany consumer lending
|
4,098
|
1.7
|
0.8
|
0.8
|
0.8
|
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
UK cards
|
9,939
|
0.9
|
0.2
|
3.7
|
3.6
|
UK personal loans
|
4,023
|
1.4
|
0.6
|
4.1
|
3.8
|
Barclays Partner Finance
|
2,612
|
0.5
|
0.2
|
0.7
|
0.7
|
Barclays International
|
|
|
|
|
|
US cards
|
25,554
|
2.2
|
1.2
|
2.4
|
2.3
|
Germany consumer lending
|
4,269
|
1.7
|
0.7
|
0.7
|
0.6
|
UK cards: 30 day and 90 days
arrears rate remain stable at 0.9% (Q422: 0.9%) and 0.2% (Q422:
0.2%) respectively, whilst total exposure increased to £10bn.
Both the gross and net write off rates decreased by 1.7% due to the
impact of lower historical delinquency flows.
UK personal loans: 30 days
arrears rates have marginally increased to 1.5% (Q422: 1.4%) whilst
90 days arrears rate remained stable at 0.6% (Q422: 0.6%). Total
exposure decreased to £3.7bn due to lower demand and prudent
lending strategies. The annualised gross and net write off rates
decreased by 2.8% and 2.7% respectively, due to the impact of lower
historical delinquency flows.
Barclays Partner Finance: 30
day and 90 days arrears rate remain stable at 0.5% (Q422: 0.5%) and
0.2% (Q422: 0.2%) respectively, with total exposure stable at
£2.6bn. Both the annualised gross and net write off rates
decreased by 0.1%
US cards: Balances increased 2%
in USD as consumer spending remained strong, however movement in
the USD/GBP exchange rate resulted in a decrease in reported
balances. 30 day arrears rates increased to 2.4% (Q422: 2.2%) due
to the continued normalisation of customer behaviour, though rates
remain below pre-pandemic levels. Write-off rates increased due to
normalisation and as the impact of Gap portfolio write-offs lagging
the portfolio acquisition and building to steady state
levels.
Germany consumer lending: 30
day arrears rate remain at 1.7% (Q422: 1.7%) despite increase of
macroeconomic uncertainty in Germany.
Government supported loans
Since the COVID-19 pandemic Barclays has supported its customers
and clients by participating in the UK government's Bounce Back Loan
Scheme (BBLS), Coronavirus Business Interruption Loan Scheme
(CBILS), Coronavirus Large Business Interruption Loan Scheme
(CLBILS) and the Recovery Loan Scheme (RLS).
|
Gross exposure
|
Impairment allowance
|
Government guaranteed
exposure
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Modelled
impairment
|
Management adjustment
|
Impairment post- management adjustment
|
Impairment
Coverage
|
Total
|
As at 30.06.23
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
£m
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
BBLS
|
2,747
|
2,244
|
444
|
5,435
|
8
|
26
|
34
|
0.6
|
5,400
|
CBILS
|
233
|
288
|
76
|
597
|
17
|
(4)
|
13
|
2.2
|
478
|
RLS
|
13
|
2
|
2
|
17
|
—
|
—
|
—
|
—
|
13
|
Barclays International
|
|
|
|
|
|
|
CBILS
|
235
|
163
|
15
|
413
|
7
|
—
|
7
|
1.7
|
330
|
CLBILS
|
40
|
23
|
10
|
73
|
2
|
—
|
2
|
3.2
|
59
|
RLS
|
18
|
3
|
1
|
22
|
—
|
—
|
—
|
1.9
|
16
|
Total
|
3,286
|
2,723
|
548
|
6,557
|
34
|
22
|
56
|
0.9
|
6,296
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
BBLS
|
3,066
|
2,903
|
618
|
6,587
|
6
|
27
|
33
|
0.5
|
6,554
|
CBILS
|
286
|
396
|
66
|
748
|
22
|
(9)
|
13
|
1.7
|
598
|
RLS
|
13
|
4
|
1
|
18
|
—
|
—
|
—
|
—
|
14
|
Barclays International
|
|
|
|
|
|
|
CBILS
|
306
|
154
|
8
|
468
|
5
|
—
|
5
|
1.1
|
375
|
CLBILS
|
67
|
32
|
13
|
112
|
2
|
—
|
2
|
2.1
|
89
|
RLS
|
17
|
3
|
1
|
21
|
—
|
—
|
—
|
1.5
|
16
|
Total
|
3,755
|
3,492
|
707
|
7,954
|
35
|
18
|
53
|
0.7
|
7,646
|
The BBLS and CBILS schemes were launched to provide financial
support to smaller and medium-sized businesses and CLBILS for
larger businesses in the UK who may experience financial
difficulties as a result of the COVID-19 outbreak. The RLS aims to
help UK businesses access finance as they recover and grow
following the COVID-19 pandemic. These loans are guaranteed by the
government at 100% for BBLS and 80% for CBILS, CLBILS and RLS (70%
for RLS issued post January 1, 2022) as at the balance sheet
date.
In instances where Barclays has assessed the BBLS exposure to have
not met strict assessment criteria, no claim has been made against
the government guarantee resulting in an impairment allowance
against these loans of £34m (December 2022: £33m) as at
the balance sheet date. The remaining balance represents impairment
allowance against the CBILS & CLBILS which are 80% guaranteed
by government.
Additionally, while the government supported loans are covered by
guarantees, many BBLS customers have other financing arrangements
with Barclays which are not covered by the government guarantee.
Noting the elevated levels of delinquency across the BBLS
population, Barclays has continued to apply an adjustment of
£0.1bn to BBLS customers outside the scheme.
Market Risk
Analysis of management value at risk (VaR)
The
table below shows the total management VaR on a diversified basis
by asset class. Total management VaR includes all trading positions
in Barclays Bank Group and it is calculated with a one-day holding
period. VaR limits are applied to total management VaR and by asset
class. Additionally, the market risk management function applies
VaR sub-limits to material businesses and trading
desks.
Management VaR (95%) by asset class
|
Half year ended 30.06.23
|
|
Half year ended 31.12.22
|
|
Half year ended 30.06.22
|
|
Average
|
High
|
Low
|
|
Average
|
High
|
Low
|
|
Average
|
High
|
Low
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Credit risk
|
48
|
57
|
38
|
|
35
|
71
|
17
|
|
16
|
24
|
8
|
Interest rate risk
|
16
|
25
|
9
|
|
16
|
23
|
10
|
|
10
|
19
|
4
|
Equity risk
|
6
|
10
|
3
|
|
10
|
16
|
4
|
|
10
|
29
|
4
|
Basis risk
|
16
|
25
|
11
|
|
15
|
20
|
11
|
|
9
|
24
|
4
|
Spread risk
|
10
|
14
|
7
|
|
8
|
11
|
5
|
|
5
|
10
|
3
|
Foreign exchange risk
|
3
|
6
|
1
|
|
5
|
17
|
3
|
|
10
|
25
|
2
|
Commodity risk
|
—
|
1
|
—
|
|
—
|
1
|
—
|
|
—
|
1
|
—
|
Inflation risk
|
9
|
11
|
6
|
|
7
|
11
|
5
|
|
6
|
17
|
3
|
Diversification
effect1
|
(63)
|
n/a
|
n/a
|
|
(52)
|
n/a
|
n/a
|
|
(39)
|
n/a
|
n/a
|
Total management VaR
|
45
|
60
|
34
|
|
44
|
73
|
27
|
|
27
|
43
|
13
|
1
|
Diversification effects recognise that forecast losses from
different assets or businesses are unlikely to occur concurrently,
hence the expected aggregate loss is lower than the sum of the
expected losses from each area. Historical correlations between
losses are taken into account in making these assessments. The high
and low VaR figures reported for each category did not necessarily
occur on the same day as the high and low VaR reported as a whole.
Consequently, a diversification effect balance for the high and low
VaR figures would not be meaningful and is therefore omitted from
the above table
|
Average Management VaR was stable at £45m (H222: £44m)
and the range narrowed. Management VaR decreased in H123 from a
high of £73m in November 2022, driven by a reduction in
funded, fair value leverage loan exposure in Investment Banking and
lower volatility. Market volatility and credit spread levels
declined in H123 as geopolitical tensions eased, inflation
decreased and the pace of interest rate rises
moderated.
Treasury and Capital Risk
The
Group has established a comprehensive set of policies, standards
and controls for managing its liquidity risk; together these set
out the requirements for Barclays’ liquidity risk framework.
The liquidity risk framework meets the PRA standards and enables
Barclays to maintain liquidity resources that are sufficient in
amount and quality, and a funding profile that is appropriate to
meet the Group’s Liquidity Risk Appetite. The liquidity risk
framework is delivered via a combination of policy formation,
review and challenge, governance, analysis, stress testing, limit
setting and monitoring.
Liquidity risk stress testing
The
Internal Liquidity Stress Tests (ILST) measure the potential
contractual and contingent stress outflows under a range of
scenarios, which are then used to determine the size of the
liquidity pool that is immediately available to meet anticipated
outflows if a stress occurs. The short-term scenarios include a 30
day Barclays-specific stress event, a 90 day market-wide stress
event and a 30 day combined scenario consisting of both a Barclays
specific and market-wide stress event. The Group also runs a
liquidity stress test which measures the anticipated outflows over
a 12 month market-wide scenario.
The LCR
requirement takes into account the relative stability of different
sources of funding and potential incremental funding requirements
in a stress. The LCR is designed to promote short-term resilience
of a bank’s liquidity risk profile by holding sufficient high
quality liquid assets to survive an acute stress scenario lasting
for 30 days.
As at
30 June 2023 the spot LCR was 158% (December 2022: £165%), and
the average LCR (trailing average of last twelve month ends) was
157%. The Group held eligible liquid assets in excess of 100% of
net stress outflows to its internal and external regulatory
requirements.
Liquidity coverage ratio
|
As at 30.06.23
|
As at 31.12.22
|
|
£bn
|
£bn
|
LCR Eligible High Quality Liquid Assets (HQLA)
|
313
|
295
|
Net stress outflows
|
(198)
|
(178)
|
Surplus
|
115
|
117
|
|
|
|
Liquidity coverage ratio
|
158%
|
165%
|
Net Stable Funding Ratio
The
external NSFR metric requires
banks to maintain a stable funding profile taking into account both
on and certain off balance sheet exposures over a medium to long
term period. The ratio is defined as the Available Stable Funding
(capital and certain liabilities which are treated as stable
sources of funding) relative to the Required Stable Funding (assets
on balance sheet and certain off balance sheet exposures). The NSFR
(average of last four quarter ends) as at 30 June 2023 was 139%,
which was a surplus above requirements of £166bn.
Net Stable Funding
Ratio1
|
As at 30.06.23
|
As at 31.12.22
|
|
£bn
|
£bn
|
Total Available Stable Funding
|
596
|
576
|
Total Required Stable Funding
|
430
|
421
|
Surplus
|
166
|
155
|
|
|
|
Net Stable Funding Ratio
|
139%
|
137%
|
1
|
Represents average of the last four spot quarter end
positions
|
As part
of the liquidity risk appetite, Barclays establishes minimum LCR,
NSFR and internal liquidity stress test limits. The Group plans to
maintain its surplus to the internal and regulatory requirements at
an efficient level. Risks to market funding conditions, the
Group’s liquidity position and funding profile are assessed
continuously, and actions are taken to manage the size of the
liquidity pool and the funding profile as appropriate.
Composition of the Group liquidity pool
|
|
|
|
|
|
|
|
|
LCR eligible1
High Quality Liquid Assets
(HQLA)
|
|
Liquidity pool
|
|
Cash
|
Level 1
|
Level 2A
|
Level 2B
|
Total
|
|
2023
|
2022
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Cash and deposits with central banks2
|
249
|
—
|
—
|
—
|
249
|
|
264
|
263
|
|
|
|
|
|
|
|
|
|
Government bonds3
|
|
|
|
|
|
|
|
|
AAA to AA-
|
—
|
37
|
8
|
—
|
45
|
|
49
|
39
|
A+ to A-
|
—
|
3
|
1
|
—
|
4
|
|
4
|
3
|
BBB+ to BBB-
|
—
|
1
|
—
|
—
|
1
|
|
1
|
—
|
Total government bonds
|
—
|
41
|
9
|
—
|
50
|
|
54
|
42
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
Government Guaranteed Issuers, PSEs and GSEs
|
—
|
4
|
1
|
—
|
5
|
|
5
|
6
|
International Organisations and MDBs
|
—
|
2
|
—
|
—
|
2
|
|
2
|
2
|
Covered bonds
|
—
|
2
|
3
|
—
|
5
|
|
6
|
5
|
Other
|
—
|
—
|
—
|
2
|
2
|
|
—
|
—
|
Total other
|
—
|
8
|
4
|
2
|
14
|
|
13
|
13
|
|
|
|
|
|
|
|
|
|
Total as at 30 June 2023
|
249
|
49
|
13
|
2
|
313
|
|
331
|
|
Total as at 31 December 2022
|
248
|
31
|
15
|
1
|
295
|
|
|
318
|
1
|
The LCR eligible HQLA is adjusted for operational restrictions upon
consolidation under Article 8 of the Liquidity Coverage Ratio
section of the PRA rulebook (CRR) such as trapped liquidity within
Barclays subsidiaries. It also reflects differences in eligibility
of assets between the LCR and Barclays’ Liquidity
Pool.
|
2
|
Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 98% (December 2022: over
99%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
3
|
Of which over 78% (December 2022: over 79%) comprised UK, US,
French, German, Japanese, Swiss and Dutch securities.
|
The
Group liquidity pool increased to £331bn as at June 2023 (December 2022:
£318bn) driven by deposit growth. During 2023, the month-end
liquidity pool ranged from £321bn to £342bn (2022:
£309bn to £359bn), and the month-end average balance was
£331bn (2022:
£331bn). The liquidity pool is held unencumbered and is not
used to support payment or clearing requirements. Such requirements
are treated as part of our regular business funding. The liquidity
pool represents readily accessible funds to meet potential cash
outflows during stress periods.
As at
30 June 2023, 65% (December 2022: 60%) of the liquidity pool was
located in Barclays Bank PLC, 21% (December 2022: 25%) in Barclays
Bank UK PLC and 9% (December 2022: 9%) in Barclays Bank Ireland
PLC. The residual portion of the liquidity pool is held outside of
these entities, predominantly in US subsidiaries, to meet
entity-specific stress outflows and local regulatory requirements.
To the extent the use of this residual portion of the liquidity
pool is restricted due to local regulatory requirements, it is
assumed to be unavailable to the rest of the Group in calculating
the LCR.
The
composition of the pool is subject to limits set by the Board and
the independent liquidity risk, credit risk and market risk
functions. In addition, the investment of the liquidity pool is
monitored for concentration by issuer, currency and asset type.
Given returns generated by these highly liquid assets, the risk and
reward profile is continuously managed.
Deposit funding
|
As at 30.06.23
|
|
As at 31.12.22
|
|
Loans and
advances at
amortised
cost
|
Deposits at
amortised
cost
|
Loan: deposit
ratio1
|
|
Loan: deposit
ratio1
|
Funding of loans and advances
|
£bn
|
£bn
|
%
|
|
%
|
Barclays UK
|
226
|
250
|
90
|
|
87
|
Barclays International
|
171
|
305
|
56
|
|
59
|
Head Office
|
4
|
—
|
|
|
|
Barclays Group
|
401
|
555
|
72
|
|
73
|
1
|
The loan: deposit ratio is calculated as loans and advances at
amortised cost divided by deposits at amortised cost.
|
Funding structure and funding relationships
The
basis for liquidity risk management is a funding structure that
reduces the probability of a liquidity stress leading to an
inability to meet funding obligations as they fall due. The
Group’s overall funding strategy is to develop a diversified
funding base (geographically, by type and by counterparty) and
maintain access to a variety of alternative funding sources, to
provide protection against unexpected fluctuations, while
minimising the cost of funding.
Within
this, the Group aims to align the sources and uses of funding. As
such, retail and corporate loans and advances are largely funded by
deposits in the relevant entities, with the surplus primarily
funding the liquidity pool. The majority of reverse repurchase
agreements are matched by repurchase agreements. Derivative
liabilities and assets are largely matched. A substantial
proportion of balance sheet derivative positions qualify for
counterparty netting and the remaining portions are largely offset
when netted against cash collateral received and paid. Wholesale
debt and equity is used to fund residual assets.
These
funding relationships as at 30 June 2023 are summarised
below:
|
As at
30.06.23
|
As at
31.12.22
|
|
|
As at
30.06.23
|
As at
31.12.22
|
Assets
|
£bn
|
£bn
|
|
Liabilities and equity
|
£bn
|
£bn
|
Loans
and advances at amortised cost1
|
377
|
385
|
|
Deposits at amortised cost
|
555
|
546
|
Group liquidity pool
|
331
|
318
|
|
<1 Year wholesale funding
|
73
|
73
|
|
|
|
|
>1 Year wholesale funding
|
110
|
111
|
Reverse repurchase agreements, trading portfolio assets, cash
collateral and settlement balances
|
479
|
412
|
|
Repurchase agreements, trading portfolio liabilities, cash
collateral and settlement balances
|
428
|
370
|
Derivative financial instruments
|
266
|
302
|
|
Derivative financial instruments
|
255
|
290
|
Other
assets2
|
97
|
97
|
|
Other liabilities
|
60
|
55
|
|
|
|
|
Equity
|
69
|
69
|
Total assets
|
1,550
|
1,514
|
|
Total liabilities and equity
|
1,550
|
1,514
|
1
|
Adjusted for liquidity pool debt securities reported at amortised
cost of £24bn (December 2022: £14bn).
|
2
|
Other assets include fair value assets that are not part of reverse
repurchase agreements or trading portfolio assets, and other asset
categories.
|
Composition of wholesale funding
Wholesale
funding outstanding (excluding repurchase agreements) was
£183.3bn (December 2022:
£184.0bn). In 2023, the
Group issued £7.1bn of MREL eligible instruments from Barclays
PLC (the Parent company) in a range of tenors and
currencies.
Our
operating companies also access wholesale funding markets to
maintain their stable and diversified funding bases. Barclays Bank
PLC continued to issue in the shorter-term and medium-term notes
markets. In addition, Barclays Bank UK PLC continued to issue in
the shorter-term markets and maintains active secured funding
programmes.
Wholesale
funding of £73.1bn
(December 2022: £72.5bn)
matures in less than one year, representing 40% (December 2022:
39%) of total wholesale funding
outstanding. This includes £17.9bn (December 2022:
£15.0bn) related to term
funding1.
Maturity profile of wholesale
funding1,2
|
<1
|
1-3
|
3-6
|
6-12
|
<1
|
1-2
|
2-3
|
3-4
|
4-5
|
>5
|
|
|
month
|
months
|
months
|
months
|
year
|
years
|
years
|
years
|
years
|
years
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Barclays PLC (the Parent company)
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured (public benchmark)
|
0.2
|
0.6
|
0.9
|
1.5
|
3.2
|
7.2
|
6.8
|
5.7
|
3.3
|
17.7
|
43.9
|
Senior unsecured (privately placed)
|
—
|
—
|
0.1
|
—
|
0.1
|
—
|
—
|
—
|
—
|
0.9
|
1.0
|
Subordinated liabilities
|
—
|
—
|
—
|
—
|
—
|
0.9
|
1.5
|
—
|
1.6
|
5.8
|
9.8
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
7.3
|
11.2
|
14.0
|
7.3
|
39.8
|
1.6
|
0.2
|
—
|
—
|
—
|
41.6
|
Asset backed commercial paper
|
3.0
|
6.7
|
1.0
|
—
|
10.7
|
—
|
—
|
—
|
—
|
—
|
10.7
|
Senior unsecured (public benchmark)
|
—
|
—
|
—
|
1.0
|
1.0
|
—
|
—
|
—
|
—
|
—
|
1.0
|
Senior
unsecured (privately placed)3
|
1.3
|
1.9
|
2.8
|
6.0
|
12.0
|
12.3
|
8.4
|
4.1
|
6.6
|
18.8
|
62.2
|
Asset backed securities
|
—
|
—
|
0.6
|
0.4
|
1.0
|
1.7
|
0.4
|
0.4
|
0.1
|
1.9
|
5.5
|
Subordinated liabilities
|
0.1
|
0.1
|
0.2
|
0.2
|
0.6
|
0.1
|
—
|
0.3
|
—
|
0.4
|
1.4
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
4.7
|
—
|
—
|
—
|
4.7
|
—
|
—
|
—
|
—
|
—
|
4.7
|
Senior unsecured (public benchmark)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.1
|
0.1
|
Covered bonds
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.5
|
0.9
|
1.4
|
Total as at 30 June 2023
|
16.6
|
20.5
|
19.6
|
16.4
|
73.1
|
23.8
|
17.3
|
10.5
|
12.1
|
46.5
|
183.3
|
Of which secured
|
3.0
|
6.7
|
1.6
|
0.4
|
11.7
|
1.7
|
0.4
|
0.4
|
0.6
|
2.8
|
17.6
|
Of which unsecured
|
13.6
|
13.8
|
18.0
|
16.0
|
61.4
|
22.1
|
16.9
|
10.1
|
11.5
|
43.7
|
165.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2022
|
11.1
|
26.5
|
16.4
|
18.5
|
72.5
|
22.4
|
16.9
|
14.5
|
9.7
|
48.0
|
184.0
|
Of which secured
|
4.9
|
6.7
|
1.3
|
0.2
|
13.1
|
1.8
|
0.7
|
0.5
|
1.0
|
2.1
|
19.2
|
Of which unsecured
|
6.2
|
19.8
|
15.1
|
18.3
|
59.4
|
20.6
|
16.2
|
14.0
|
8.7
|
45.9
|
164.8
|
1
|
The composition of wholesale funds comprises the balance sheet
reported financial liabilities at fair value, debt securities in
issue and subordinated liabilities. It does not include
participation in the central bank facilities reported within
repurchase agreements and other similar secured
borrowing.
|
2
|
Term funding comprises public benchmark and privately placed senior
unsecured notes, covered bonds, asset-backed securities and
subordinated debt where the original maturity of the instrument is
more than 1 year.
|
3
|
Includes structured notes of £50.5bn, of which £10.5bn
matures within one year.
|
Credit ratings
In
addition to monitoring and managing key metrics related to the
financial strength of the Group, Barclays also solicits independent
credit ratings from Standard & Poor’s Global (S&P),
Moody’s, Fitch, and Rating and Investment Information
(R&I). These ratings assess the creditworthiness of the Group,
its subsidiaries and its branches, and are based on reviews of a
broad range of business and financial attributes including capital
strength, profitability, funding, liquidity, asset quality,
strategy and governance.
Barclays Bank PLC
|
Standard &
Poor's
|
Moody's
|
Fitch
|
Long-term
|
A+ / Stable
|
A1 / Stable
|
A+ /
Stable
|
Short-term
|
A-1
|
P-1
|
F1
|
|
|
|
|
Barclays Bank UK PLC
|
|
|
|
Long-term
|
A+ / Stable
|
A1 / Stable
|
A+ / Stable
|
Short-term
|
A-1
|
P-1
|
F1
|
|
|
|
|
Barclays PLC
|
|
|
|
Long-term
|
BBB+ / Stable
|
Baa1 / Stable
|
A /
Stable
|
Short-term
|
A-2
|
P-2
|
F1
|
In
March 2023, Moody’s upgraded Barclays PLC’s long-term
rating by one notch to Baa1 and reverted the outlook to stable,
reflecting Moody's expectation that the Group’s earnings will
be higher, more diversified and more sustainable than before, while
asset risk will remain broadly stable and capital and liquidity
will remain strong. This followed the review for upgrade that had
been placed on Barclays PLC in December 2022. Moody’s also
revised Barclays Bank PLC’s outlook to stable from negative,
reflecting Moody’s expectation that the Bank’s capital
and liquidity will remain strong and whilst profitability will
reduce from the exceptional levels of the last couple of years for
capital markets and investment banking, it will remain sound due to
improving income from other businesses and lower litigation and
conduct costs.
In May
2023, S&P upgraded all Barclays rated entities by one notch and
reverted the outlooks to stable, reflecting S&P’s view
that Barclays PLC's diversified international banking franchise has
performed well against a difficult economic and financial backdrop
and S&Ps expectation that Barclays PLC will generate solid
earnings over the next 12-24 months, even as interest rates
approach their peak. This action upgraded Barclays PLC’s
long-term rating to BBB+ and Barclays Bank PLC and Barclays Bank UK
PLC’s long-term ratings to A+.
In
September 2022, Fitch affirmed all ratings for Barclays PLC,
Barclays Bank PLC and Barclays Bank UK PLC.
Barclays
also solicits issuer ratings from R&I and the ratings of A for
Barclays PLC and A+ for Barclays Bank PLC were affirmed in November
2022 with stable outlooks.
A
credit rating downgrade could result in outflows to meet collateral
requirements on existing contracts. Outflows related to credit
rating downgrades are included in the ILST scenarios and a portion
of the liquidity pool is held against this risk. Credit ratings
downgrades could also result in reduced funding capacity and
increased funding costs.
The
contractual collateral requirement following one- and two-notch
long-term and associated short-term downgrades across all credit
rating agencies, would result in outflows of £1bn and
£3bn respectively on derivative contracts and other off
balance sheet products, and are provided for in determining an
appropriate liquidity pool size given the Group’s liquidity
risk appetite. These numbers do not assume any management or
restructuring actions that could be taken to reduce posting
requirements.
Regulatory
minimum requirements
Capital
The Group’s Overall Capital Requirement for CET1 is 11.4%
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 2.4% Pillar 2A requirement and a 0.5%
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 13 December
2021, the Financial Policy Committee (FPC) announced the
re-introduction of a CCyB rate of 1% for UK exposures with effect
from 13 December 2022. The buffer rates set by other national
authorities for non-UK exposures are not currently material.
Overall, this results in a 0.5% CCyB for the Group. On 5 July 2022,
the FPC announced that the UK CCyB rate will be increased from 1%
to 2% with effect from 5 July 2023.
The Group’s Pillar 2A requirement as per the PRA’s
Individual Capital Requirement is 4.3% of which at least 56.25%
needs to be met with CET1 capital, equating to 2.4% of RWAs. The
Pillar 2A requirement, based on a point in time assessment, has
been set as a proportion of RWAs and is subject to at least annual
review.
The Group’s CET1 target ratio of 13-14% takes into account
headroom above requirements which includes a confidential
institution-specific PRA buffer. The Group remains above its
minimum capital regulatory requirements including the PRA
buffer.
Leverage
The Group is subject to a UK leverage ratio requirement of
4.0%. This comprises the 3.25% minimum requirement, a G-SII
additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio
buffer (CCLB) of 0.2%. Although
the leverage ratio is expressed in terms of Tier 1 (T1) capital,
75% of the minimum requirement, equating to 2.4%, needs to be met with CET1 capital. In
addition, the G-SII ALRB and CCLB must be covered solely with CET1
capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.2bn and against the 0.2% CCLB was £2.4bn.
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 4.3% Pillar 2A equating to 24.7% of RWAs; and
(ii) 6.75% of leverage exposures. In addition, the higher of
regulatory capital and leverage buffers apply. CET1 capital cannot
be counted towards both MREL and the buffers, meaning that the
buffers, including the above mentioned confidential
institution-specific PRA buffer, will effectively be applied above
MREL requirements.
In the disclosures that follow, references to CRR, as amended by
CRR II, mean the capital regulatory requirements, as they form part
of domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended.
Capital ratios1,2
|
As at 30.06.23
|
As at 31.03.23
|
As at 31.12.22
|
CET1
|
13.8%
|
13.6%
|
13.9%
|
T1
|
17.9%
|
17.6%
|
17.9%
|
Total regulatory capital
|
20.5%
|
20.2%
|
20.8%
|
MREL ratio as a percentage of total RWAs
|
32.9%
|
32.7%
|
33.5%
|
|
|
|
|
Own funds and eligible liabilities
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests per the balance
sheet
|
67,669
|
69,699
|
68,292
|
Less: other equity instruments (recognised as AT1
capital)
|
(13,759)
|
(13,784)
|
(13,284)
|
Adjustment to retained earnings for foreseeable ordinary share
dividends
|
(622)
|
(338)
|
(787)
|
Adjustment to retained earnings for foreseeable repurchase of
shares
|
—
|
(224)
|
—
|
Adjustment to retained earnings for foreseeable other equity
coupons
|
(39)
|
(52)
|
(37)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,800)
|
(1,913)
|
(1,726)
|
Goodwill and intangible assets
|
(8,584)
|
(8,642)
|
(8,224)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(1,372)
|
(1,435)
|
(1,500)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
7,992
|
6,164
|
7,237
|
Excess of expected losses over impairment
|
(228)
|
(232)
|
(119)
|
Gains or losses on liabilities at fair value resulting from own
credit
|
(116)
|
(86)
|
(620)
|
Defined benefit pension fund assets
|
(2,995)
|
(3,593)
|
(3,430)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(20)
|
(20)
|
(20)
|
Adjustment under IFRS 9 transitional arrangements
|
206
|
245
|
700
|
Other regulatory adjustments
|
308
|
196
|
396
|
CET1 capital
|
46,640
|
45,985
|
46,878
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
13,759
|
13,784
|
13,284
|
Other regulatory adjustments and deductions
|
(60)
|
(60)
|
(60)
|
AT1 capital
|
13,699
|
13,724
|
13,224
|
|
|
|
|
T1 capital
|
60,339
|
59,709
|
60,102
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
8,212
|
7,538
|
9,000
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
769
|
1,061
|
1,095
|
Credit risk adjustments (excess of impairment over expected
losses)
|
71
|
66
|
35
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(160)
|
Total regulatory capital
|
69,231
|
68,214
|
70,072
|
|
|
|
|
Less : Ineligible T2 capital (including minority interests) issued
by subsidiaries
|
(769)
|
(1,061)
|
(1,095)
|
Eligible liabilities
|
42,559
|
43,489
|
43,851
|
Total own funds and eligible liabilities3
|
111,021
|
110,642
|
112,828
|
|
|
|
|
Total RWAs
|
336,946
|
338,448
|
336,518
|
1
|
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.
|
2
|
The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 13.8%,
with £46.4bn of CET1 capital and £336.9bn of RWAs
calculated without applying the transitional arrangements of the
CRR as amended by CRR II.
|
3
|
As at 30 June 2023, the Group's MREL requirement, excluding the PRA
buffer, was to hold £98.3bn of own funds and eligible
liabilities equating to 29.2%
of RWAs. The Group remains above its MREL regulatory requirement
including the PRA buffer.
|
|
Movement in CET1 capital
|
Three months ended 30.06.23
|
Six months ended 30.06.23
|
|
£m
|
£m
|
|
Opening CET1 capital
|
45,985
|
46,878
|
|
|
|
|
Profit for the period attributable to equity holders
|
1,588
|
3,618
|
|
Own credit relating to derivative liabilities
|
15
|
8
|
|
Ordinary share dividends paid and foreseen
|
(284)
|
(622)
|
|
Purchased and foreseeable share repurchase
|
—
|
(500)
|
|
Other equity coupons paid and foreseen
|
(246)
|
(507)
|
|
Increase in retained regulatory capital generated from
earnings
|
1,073
|
1,997
|
|
|
|
|
Net impact of share schemes
|
134
|
(156)
|
|
Fair value through other comprehensive income reserve
|
(74)
|
75
|
|
Currency translation reserve
|
(642)
|
(1,173)
|
|
Other reserves
|
(16)
|
(20)
|
|
Decrease in other qualifying reserves
|
(598)
|
(1,274)
|
|
|
|
|
Pension remeasurements within reserves
|
(611)
|
(476)
|
|
Defined benefit pension fund asset deduction
|
598
|
435
|
|
Net impact of pensions
|
(13)
|
(41)
|
|
|
|
|
Additional value adjustments (PVA)
|
113
|
(74)
|
|
Goodwill and intangible assets
|
58
|
(360)
|
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
63
|
128
|
|
Excess of expected loss over impairment
|
4
|
(109)
|
|
Adjustment under IFRS 9 transitional arrangements
|
(39)
|
(494)
|
|
Other regulatory adjustments
|
(6)
|
(11)
|
|
Increase/(decrease) in regulatory capital due to adjustments and
deductions
|
193
|
(920)
|
|
|
|
|
Closing CET1 capital
|
46,640
|
46,640
|
CET1 capital decreased £0.2bn to £46.6bn (December 2022:
£46.9bn).
£3.6bn of capital generated from profit was partially offset
by distributions of £1.6bn comprising:
|
●
|
£0.6bn accrual towards a FY23 dividend
|
●
|
£0.5bn of buybacks announced with FY22 results
|
●
|
£0.5bn of equity coupons paid and foreseen
|
Other significant movements in the period were:
|
●
|
£1.2bn decrease in the currency translation reserve driven by
the strengthening of GBP against USD since December
2022
|
●
|
£0.4bn increase in the goodwill and intangibles deduction
primarily as a result of the acquisition of KMC
|
●
|
£0.5bn decrease in IFRS 9 transitional relief primarily due to
the relief applied to the pre-2020 impairment charge reducing to 0%
in 2023 from 25% in 2022 and the relief applied to the
post-2022 impairment charge reducing to 50% in 2023 from 75% in
2022.
|
RWAs by risk type and business
|
|
Credit risk
|
|
Counterparty credit risk
|
|
Market Risk
|
|
Operational
risk
|
Total
RWAs
|
As at 30.06.23
|
STD
|
IRB
|
|
STD
|
IRB
|
Settlement
Risk
|
CVA
|
|
STD
|
IMA
|
|
|
|
Barclays UK
|
8,377
|
52,867
|
|
245
|
—
|
—
|
124
|
|
374
|
—
|
|
11,054
|
73,041
|
Corporate and Investment Bank
|
33,567
|
75,880
|
|
17,551
|
20,687
|
454
|
2,841
|
|
16,179
|
22,251
|
|
27,093
|
216,503
|
Consumer, Cards and Payments
|
26,306
|
4,484
|
|
202
|
51
|
—
|
63
|
|
3
|
424
|
|
6,527
|
38,060
|
Barclays International
|
59,873
|
80,364
|
|
17,753
|
20,738
|
454
|
2,904
|
|
16,182
|
22,675
|
|
33,620
|
254,563
|
Head Office
|
2,584
|
7,567
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(809)
|
9,342
|
Barclays Group
|
70,834
|
140,798
|
|
17,998
|
20,738
|
454
|
3,028
|
|
16,556
|
22,675
|
|
43,865
|
336,946
|
As at 31.03.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
7,816
|
55,174
|
|
246
|
—
|
—
|
115
|
|
196
|
—
|
|
11,054
|
74,601
|
Corporate and Investment Bank
|
33,904
|
75,225
|
|
17,014
|
21,692
|
237
|
2,811
|
|
15,734
|
23,136
|
|
27,093
|
216,846
|
Consumer, Cards and Payments
|
26,511
|
4,343
|
|
205
|
45
|
—
|
60
|
|
—
|
525
|
|
6,527
|
38,216
|
Barclays International
|
60,415
|
79,568
|
|
17,219
|
21,737
|
237
|
2,871
|
|
15,734
|
23,661
|
|
33,620
|
255,062
|
Head Office
|
2,578
|
7,016
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(809)
|
8,785
|
Barclays Group
|
70,809
|
141,758
|
|
17,465
|
21,737
|
237
|
2,986
|
|
15,930
|
23,661
|
|
43,865
|
338,448
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
6,836
|
54,752
|
|
167
|
—
|
—
|
72
|
|
233
|
—
|
|
11,023
|
73,083
|
Corporate and Investment Bank
|
35,738
|
75,413
|
|
16,814
|
21,449
|
80
|
3,093
|
|
13,716
|
22,497
|
|
27,064
|
215,864
|
Consumer, Cards and Payments
|
27,882
|
3,773
|
|
214
|
46
|
—
|
61
|
|
—
|
388
|
|
6,559
|
38,923
|
Barclays International
|
63,620
|
79,186
|
|
17,028
|
21,495
|
80
|
3,154
|
|
13,716
|
22,885
|
|
33,623
|
254,787
|
Head Office
|
2,636
|
6,843
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(831)
|
8,648
|
Barclays Group
|
73,092
|
140,781
|
|
17,195
|
21,495
|
80
|
3,226
|
|
13,949
|
22,885
|
|
43,815
|
336,518
|
Movement analysis of RWAs
|
Credit risk
|
Counterparty
credit risk
|
Market risk
|
Operational
risk
|
Total RWAs
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Opening RWAs (as at 31.12.22)
|
213,873
|
41,996
|
36,834
|
43,815
|
336,518
|
Book size
|
849
|
2,181
|
3,132
|
50
|
6,212
|
Acquisitions and disposals
|
688
|
—
|
—
|
—
|
688
|
Book quality
|
2,169
|
(247)
|
—
|
—
|
1,922
|
Model updates
|
(2,600)
|
—
|
—
|
—
|
(2,600)
|
Methodology and policy
|
2,461
|
583
|
—
|
—
|
3,044
|
Foreign
exchange movements1
|
(5,808)
|
(2,295)
|
(735)
|
—
|
(8,838)
|
Total RWA movements
|
(2,241)
|
222
|
2,397
|
50
|
428
|
Closing RWAs (as at 30.06.23)
|
211,632
|
42,218
|
39,231
|
43,865
|
336,946
|
1
|
Foreign exchange movements does not include the impact of foreign
exchange for modelled market risk or operational risk
|
Overall RWAs increased £0.4bn to £336.9bn (December 2022:
£336.5bn)
|
Credit risk RWAs decreased £2.2bn:
|
●
|
A £2.2bn increase in book quality RWAs primarily driven by
changes in risk parameters and HPI refresh within Barclays
UK
|
●
|
A £2.6bn decrease in model updates primarily driven by capital
LGD model update for the mortgage portfolio to reflect the
significant decrease in repossession volume during and post the
COVID pandemic
|
●
|
A £2.5bn increase in methodology and policy primarily driven
by the recalibration of the post model adjustment (PMA) introduced
to address the IRB roadmap changes
|
●
|
A £5.8bn decrease in FX primarily due to the strengthening of
GBP against USD since December 2022
|
Counterparty Credit risk RWAs increased £0.2bn:
|
●
|
A £2.2bn increase in book size primarily due to an increase in
trading activity within derivatives
|
●
|
A £2.3bn decrease in FX primarily due to the strengthening of
GBP against USD since December 2022
|
Market risk RWAs increased £2.4bn:
|
●
|
A £3.1bn increase in book size primarily due to increased
trading activity
|
Leverage ratios1,2
|
As at 30.06.23
|
As at 31.03.23
|
As at 31.12.22
|
£m
|
£m
|
£m
|
UK leverage ratio
|
5.1%
|
5.1%
|
5.3%
|
T1 capital
|
60,339
|
59,709
|
60,102
|
UK leverage exposure
|
1,183,703
|
1,168,899
|
1,129,973
|
Average UK leverage ratio
|
4.8%
|
4.8%
|
4.8%
|
Average T1 capital
|
60,176
|
59,488
|
60,865
|
Average UK leverage exposure
|
1,261,094
|
1,251,286
|
1,280,972
|
1
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR
II.
|
2
|
Fully loaded UK leverage ratio was 5.1%, with £60.1bn of T1
capital and £1,183.5bn of leverage exposure. Fully loaded
average UK leverage ratio was 4.8% with £60.0bn of T1 capital
and £1,260.9bn 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 5.1% (December 2022: 5.3%)
primarily due to a £53.7bn increase in leverage exposure to
£1,183.7bn (December 2022: £1,130.0bn). This is largely
driven by increased trading and client activity within Global
Markets.
Statement of Directors’ Responsibilities
The
Directors (the names of whom are set out below) are required to
prepare the financial statements on a going concern basis unless it
is not appropriate to do so. In making this assessment, the
directors have considered information relating to present and
future conditions. Each of the Directors confirm that to the best
of their knowledge, the condensed consolidated interim financial
statements set out on pages 62
to 67 have been prepared in
accordance with International Accounting Standard 34,
‘Interim Financial Reporting’, as adopted by the UK,
and that the interim management report herein includes a fair
review of the information required by Disclosure Guidance and
Transparency Rules 4.2.7R and 4.2.8R namely:
●
|
an
indication of important events that have occurred during the six
months ended 30 June 2023 and their impact on the condensed
consolidated interim financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year
|
●
|
any
related party transactions in the six months ended 30 June 2023
that have materially affected the financial position or performance
of Barclays during that period and any changes in the related party
transactions described in the last Annual Report that could have a
material effect on the financial position or performance of
Barclays in the six months ended 30 June 2023
|
Signed
on 26 July 2023 on behalf of the Board by
C.S. Venkatakrishnan
|
Anna Cross
|
Group Chief Executive
|
Group Finance Director
|
Barclays
PLC Board of Directors
Chairman
|
Executive Directors
|
Non-Executive Directors
|
Nigel Higgins
|
C.S. Venkatakrishnan
|
Robert Berry
|
|
Anna Cross
|
Tim Breedon CBE
|
|
|
Mohamed A. El-Erian
|
|
|
Dawn Fitzpatrick
|
|
|
Mary Francis CBE
|
|
|
Brian Gilvary
|
|
|
Sir John Kingman
|
|
|
Marc Moses
|
|
|
Diane Schueneman
|
|
|
Julia Wilson
|
|
|
|
Independent Review Report to Barclays PLC
Conclusion
We have
been engaged by Barclays PLC (“the Company” or "the
Group") to review the condensed set of financial statements in the
Interim Results Announcement for the six months ended 30 June 2023
which comprises:
●
|
the
condensed consolidated income statement and condensed consolidated
statement of comprehensive income for the period then
ended;
|
●
|
the
condensed consolidated balance sheet as at 30 June
2023;
|
●
|
the
condensed consolidated statement of changes in equity for the
period then ended;
|
●
|
the
condensed consolidated cash flow statement for the period then
ended; and
|
●
|
the
related explanatory notes.
|
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the
Interim Results Announcement for the six months ended 30 June 2023
is not prepared, in all material respects, in accordance with IAS
34 Interim Financial Reporting as adopted for use in the UK and the
Disclosure Guidance and Transparency Rules (“the DTR”)
of the UK’s Financial Conduct Authority (“the UK
FCA”).
Basis for conclusion
We
conducted our review in accordance with International Standard on
Review Engagements (UK) 2410 Review of Interim Financial
Information Performed by the Independent Auditor of the Entity
(“ISRE (UK) 2410”) issued for use in the UK. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. We
read the other information contained in the Interim Results
Announcement and consider whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
Conclusions relating to going concern
Based
on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for conclusion
section of this report, nothing has come to our attention that
causes us to believe that the directors have inappropriately
adopted the going concern basis of accounting, or that the
directors have identified material uncertainties relating to going
concern that have not been appropriately disclosed.
This
conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410. However, future events or
conditions may cause the Group to cease to continue as a going
concern, and the above conclusions are not a guarantee that the
Group will continue in operation.
Directors’ responsibilities
The
Interim Results Announcement is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing the Interim Results Announcement in accordance with the
DTR of the UK FCA.
As
disclosed in Note 1, the annual financial statements of the
Barclays PLC Group are prepared in accordance with UK-adopted
international accounting standards.
The
directors are responsible for preparing the condensed set of
financial statements included in the Interim Results Announcement
in accordance with IAS 34 as adopted for use in the
UK.
In
preparing the condensed set of financial statements, the directors
are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do
so.
Our responsibility
Our
responsibility is to express to the Company a conclusion on the
condensed set of financial statements in the Interim Results
Announcement based on our review. Our conclusion, including our
conclusions relating to going concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for conclusion section of this report.
The purpose of our review work and to whom we owe our
responsibilities
This
report is made solely to the Company in accordance with the terms
of our engagement to assist the Company in meeting the requirements
of the DTR of the UK FCA. Our review has been undertaken so that we
might state to the Company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Stuart Crisp
for and on behalf of KPMG LLP
Chartered Accountants
15
Canada Square
London,
E14 5GL
26 July
2023
Condensed Consolidated Financial Statements
Condensed consolidated income statement (unaudited)
|
|
|
Half year
ended
30.06.23
|
Half year
ended
30.06.22
|
|
Notes1
|
£m
|
£m
|
Interest and similar income
|
|
15,632
|
7,134
|
Interest and similar expense
|
|
(9,309)
|
(2,371)
|
Net interest income
|
|
6,323
|
4,763
|
Fee and commission income
|
3
|
5,257
|
4,726
|
Fee and commission expense
|
3
|
(1,898)
|
(1,302)
|
Net fee and commission income
|
3
|
3,359
|
3,424
|
Net trading income
|
|
3,786
|
5,013
|
Net investment income
|
|
10
|
(116)
|
Other income
|
|
44
|
120
|
Total income
|
|
13,522
|
13,204
|
|
|
|
|
Staff costs
|
4
|
(4,985)
|
(4,583)
|
Infrastructure, administration and general expenses
|
5
|
(3,045)
|
(2,687)
|
Litigation and conduct
|
|
(32)
|
(1,857)
|
Operating expenses
|
|
(8,062)
|
(9,127)
|
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
|
(2)
|
(3)
|
Profit before impairment
|
|
5,458
|
4,074
|
Credit impairment charges
|
|
(896)
|
(341)
|
Profit before tax
|
|
4,562
|
3,733
|
Tax charge
|
|
(914)
|
(823)
|
Profit after tax
|
|
3,648
|
2,910
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
3,111
|
2,475
|
Other equity instrument holders
|
|
507
|
414
|
Total equity holders of the parent
|
|
3,618
|
2,889
|
Non-controlling interests
|
|
30
|
21
|
Profit after tax
|
|
3,648
|
2,910
|
|
|
|
|
Earnings per share
|
|
|
|
Basic earnings per ordinary share
|
6
|
19.9p
|
14.8p
|
Diluted earnings per ordinary share
|
6
|
19.3p
|
14.5p
|
1
|
For Notes to the Financial Statements see pages 68 to
88.
|
Condensed consolidated statement of comprehensive income
(unaudited)
|
|
|
Half year
ended
30.06.23
|
Half year
ended
30.06.22
|
|
Notes1
|
£m
|
£m
|
Profit after tax
|
|
3,648
|
2,910
|
|
|
|
|
Other comprehensive income/(loss) that may be recycled to profit or
loss:2
|
|
|
Currency translation reserve
|
14
|
(1,173)
|
1,703
|
Fair value through other comprehensive income reserve
|
14
|
77
|
(913)
|
Cash flow hedging reserve
|
14
|
(755)
|
(3,818)
|
Other comprehensive loss that may be recycled to
profit
|
|
(1,851)
|
(3,028)
|
|
|
|
|
Other comprehensive income/(loss) not recycled to profit or
loss:2
|
|
|
Retirement benefit remeasurements
|
13
|
(476)
|
1,090
|
Fair value through other comprehensive income reserve
|
14
|
(2)
|
154
|
Own credit
|
14
|
(494)
|
855
|
Other comprehensive income not recycled to profit
|
|
(972)
|
2,099
|
|
|
|
|
Other comprehensive loss for the period
|
|
(2,823)
|
(929)
|
|
|
|
|
Total comprehensive income for the period
|
|
825
|
1,981
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
795
|
1,960
|
Non-controlling interests
|
|
30
|
21
|
Total comprehensive income for the period
|
|
825
|
1,981
|
1
|
For Notes to the Financial Statements see pages 68 to
88.
|
2
|
Reported net of tax.
|
Condensed consolidated balance sheet (unaudited)
|
|
|
As at 30.06.23
|
As at 31.12.22
|
Assets
|
Notes1
|
£m
|
£m
|
Cash and balances at central banks
|
|
252,830
|
256,351
|
Cash collateral and settlement balances
|
|
130,489
|
112,597
|
Debt
securities at amortised cost2
|
|
53,147
|
45,487
|
Loans and advances at amortised cost to banks
|
|
10,895
|
10,015
|
Loans and advances at amortised cost to customers
|
|
337,363
|
343,277
|
Reverse repurchase agreements and other similar secured
lending
|
|
2,600
|
776
|
Trading portfolio assets
|
|
165,834
|
133,813
|
Financial assets at fair value through the income
statement
|
|
235,100
|
213,568
|
Derivative financial instruments
|
8
|
266,312
|
302,380
|
Financial assets at fair value through other comprehensive
income
|
|
66,068
|
65,062
|
Investments in associates and joint ventures
|
|
900
|
922
|
Goodwill and intangible assets
|
10
|
8,607
|
8,239
|
Property, plant and equipment
|
|
3,478
|
3,616
|
Current tax assets
|
|
100
|
385
|
Deferred tax assets
|
|
7,371
|
6,991
|
Retirement benefit assets
|
13
|
4,140
|
4,743
|
Other assets
|
|
4,480
|
5,477
|
Total assets
|
|
1,549,714
|
1,513,699
|
|
|
|
|
Liabilities
|
|
|
|
Deposits at amortised cost from banks
|
|
26,827
|
19,979
|
Deposits at amortised cost from customers
|
|
527,839
|
525,803
|
Cash collateral and settlement balances
|
|
115,190
|
96,927
|
Repurchase agreements and other similar secured
borrowing
|
|
41,213
|
27,052
|
Debt securities in issue
|
|
105,018
|
112,881
|
Subordinated liabilities
|
11
|
11,019
|
11,423
|
Trading portfolio liabilities
|
|
70,980
|
72,924
|
Financial liabilities designated at fair value
|
|
314,654
|
271,637
|
Derivative financial instruments
|
8
|
254,849
|
289,620
|
Current tax liabilities
|
|
675
|
580
|
Deferred tax liabilities
|
|
16
|
16
|
Retirement benefit liabilities
|
13
|
261
|
264
|
Other liabilities
|
|
11,204
|
13,789
|
Provisions
|
12
|
1,424
|
1,544
|
Total liabilities
|
|
1,481,169
|
1,444,439
|
|
|
|
|
Equity
|
|
|
|
Called up share capital and share premium
|
|
4,325
|
4,373
|
Other reserves
|
14
|
(4,457)
|
(2,192)
|
Retained earnings
|
|
54,042
|
52,827
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
53,910
|
55,008
|
Other equity instruments
|
|
13,759
|
13,284
|
Total equity excluding non-controlling interests
|
|
67,669
|
68,292
|
Non-controlling interests
|
|
876
|
968
|
Total equity
|
|
68,545
|
69,260
|
1
|
For Notes to the Financial Statements see pages 68 to
88
|
2
|
For the fair value of debt securities at amortised cost see page
85
|
Condensed consolidated statement of changes in equity
(unaudited)
|
|
Called up
share capital and
share premium1,2
|
Other equity
instruments3
|
Other
reserves2,4
|
Retained
earnings2
|
Total
|
Non-controlling
interests5
|
Total equity
|
Half year ended 30.06.2023
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2023
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
Profit after tax
|
—
|
507
|
—
|
3,111
|
3,618
|
30
|
3,648
|
Currency translation movements
|
—
|
—
|
(1,173)
|
—
|
(1,173)
|
—
|
(1,173)
|
Fair value through other comprehensive income reserve
|
—
|
—
|
75
|
—
|
75
|
—
|
75
|
Cash flow hedges
|
—
|
—
|
(755)
|
—
|
(755)
|
—
|
(755)
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
(476)
|
(476)
|
—
|
(476)
|
Own credit
|
—
|
—
|
(494)
|
—
|
(494)
|
—
|
(494)
|
Total comprehensive income for the period
|
—
|
507
|
(2,347)
|
2,635
|
795
|
30
|
825
|
Employee share schemes and hedging thereof
|
38
|
—
|
—
|
371
|
409
|
—
|
409
|
Issue and redemption of other equity instruments
|
—
|
500
|
—
|
(8)
|
492
|
(93)
|
399
|
Other equity instruments coupon paid
|
—
|
(507)
|
—
|
—
|
(507)
|
—
|
(507)
|
Vesting of employee share schemes
|
—
|
—
|
(4)
|
(484)
|
(488)
|
—
|
(488)
|
Dividends paid
|
—
|
—
|
—
|
(793)
|
(793)
|
(30)
|
(823)
|
Repurchase of shares
|
(86)
|
—
|
86
|
(503)
|
(503)
|
—
|
(503)
|
Other movements
|
—
|
(25)
|
—
|
(3)
|
(28)
|
1
|
(27)
|
Balance as at 30 June 2023
|
4,325
|
13,759
|
(4,457)
|
54,042
|
67,669
|
876
|
68,545
|
|
Called up s
hare capital and
share premium1,2
|
Other equity
instruments3
|
Other
reserves2,4
|
Retained
earnings2
|
Total
|
Non-controlling
interests5
|
Total equity
|
Half year ended 31.12.2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 July 2022
|
4,508
|
12,357
|
(218)
|
52,980
|
69,627
|
969
|
70,596
|
Profit after tax
|
—
|
491
|
—
|
2,548
|
3,039
|
24
|
3,063
|
Currency translation movements
|
—
|
—
|
329
|
—
|
329
|
—
|
329
|
Fair value through other comprehensive income reserve
|
—
|
—
|
(434)
|
—
|
(434)
|
—
|
(434)
|
Cash flow hedges
|
—
|
—
|
(2,564)
|
—
|
(2,564)
|
—
|
(2,564)
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
(1,371)
|
(1,371)
|
—
|
(1,371)
|
Own credit
|
—
|
—
|
608
|
—
|
608
|
—
|
608
|
Total comprehensive income for the period
|
—
|
491
|
(2,061)
|
1,177
|
(393)
|
24
|
(369)
|
Employee share schemes and hedging thereof
|
37
|
—
|
—
|
59
|
96
|
—
|
96
|
Issue and redemption of other equity instruments
|
—
|
917
|
—
|
3
|
920
|
—
|
920
|
Other equity instruments coupon paid
|
—
|
(491)
|
—
|
—
|
(491)
|
—
|
(491)
|
Disposal of Absa holding
|
—
|
—
|
(45)
|
45
|
—
|
—
|
—
|
Vesting of employee share schemes
|
—
|
—
|
(2)
|
(21)
|
(23)
|
—
|
(23)
|
Dividends paid
|
—
|
—
|
—
|
(364)
|
(364)
|
(24)
|
(388)
|
Repurchase of shares
|
(172)
|
—
|
172
|
(1,076)
|
(1,076)
|
—
|
(1,076)
|
Own credit realisation
|
—
|
—
|
(36)
|
36
|
—
|
—
|
—
|
Other movements
|
—
|
10
|
(2)
|
(12)
|
(4)
|
(1)
|
(5)
|
Balance as at 31 December 2022
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
Condensed consolidated statement of changes in equity
(unaudited)
|
|
Called up
share capital and
share premium1,2
|
Other equity
instruments3
|
Other
reserves2,4
|
Retained
earnings2
|
Total
|
Non-controlling
interests5
|
Total equity
|
Half year ended 30.06.2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2022
|
4,536
|
12,259
|
1,770
|
50,487
|
69,052
|
989
|
70,041
|
Profit after tax
|
—
|
414
|
—
|
2,475
|
2,889
|
21
|
2,910
|
Currency translation movements
|
—
|
—
|
1,703
|
—
|
1,703
|
—
|
1,703
|
Fair value through other comprehensive income reserve
|
—
|
—
|
(759)
|
—
|
(759)
|
—
|
(759)
|
Cash flow hedges
|
—
|
—
|
(3,818)
|
—
|
(3,818)
|
—
|
(3,818)
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
1,090
|
1,090
|
—
|
1,090
|
Own credit
|
—
|
—
|
855
|
—
|
855
|
—
|
855
|
Total comprehensive income for the period
|
—
|
414
|
(2,019)
|
3,565
|
1,960
|
21
|
1,981
|
Employee share schemes and hedging thereof
|
33
|
—
|
—
|
417
|
450
|
—
|
450
|
Issue and redemption of other equity instruments
|
—
|
115
|
—
|
25
|
140
|
(20)
|
120
|
Other equity instruments coupon paid
|
—
|
(414)
|
—
|
—
|
(414)
|
—
|
(414)
|
Disposal of Absa holding
|
—
|
—
|
(39)
|
39
|
—
|
—
|
—
|
Vesting of employee share schemes
|
—
|
—
|
7
|
(464)
|
(457)
|
—
|
(457)
|
Dividends paid
|
—
|
—
|
—
|
(664)
|
(664)
|
(21)
|
(685)
|
Repurchase of shares
|
(61)
|
—
|
61
|
(432)
|
(432)
|
—
|
(432)
|
Other movements
|
—
|
(17)
|
2
|
7
|
(8)
|
—
|
(8)
|
Balance as at 30 June 2022
|
4,508
|
12,357
|
(218)
|
52,980
|
69,627
|
969
|
70,596
|
1
|
As at 30 June 2023, Called up share capital comprises 15,556m
(December 2022: 15,871m) ordinary shares of 25p each.
|
2
|
During the period ended 30 June 2023, Barclays PLC announced and
executed a share buy-back of up to £500m. Accordingly, it
repurchased and cancelled 343m shares. The nominal value of
£86m has been transferred from Share capital to Capital
redemption reserve within Other reserves. During the year ended 31
December 2022, two share buybacks were executed, totalling
£1500m. Accordingly, Barclays PLC repurchased and cancelled
931m shares. The nominal value of £233m was transferred from
Share capital to Capital redemption reserve within Other
reserves.
|
3
|
Other equity instruments of £13,759m (December 2022:
£13,284m) comprise AT1 securities issued by Barclays PLC.
There were two issuances in the form of Fixed Rate Resetting
Perpetual Subordinated Contingent Convertible Securities for
£1,745m (net of £5m issuance costs) and one redemption of
£1,245m (net of £5m issuance costs, transferred to
retained earnings on redemption) for the period ended 30 June 2023.
During the period ended 31 December 2022, there were three
issuances in the form of Fixed Rate Resetting Perpetual
Subordinated Contingent Convertible Securities, for £3,158m,
which includes issuance costs of £9m and two redemptions
totalling £2,126m.
|
4
|
See Note 14 Other reserves.
|
5
|
During the period ended 30 June 2023 a redemption notice was
published related to the Undated Floating Rate Primary Capital Note
Series 1, as a result of which £93m was transferred from
non-controlling interests to subordinated liabilities ahead of
redemption on 26 July 2023 (year ended 31 December 2022: one
redemption of £20m, related to the Undated Floating Rate
Primary Capital Notes Series 3).
|
Condensed consolidated cash flow statement (unaudited)
|
|
Half year
ended
30.06.23
|
Half year
ended
30.06.22
|
|
£m
|
£m
|
Profit before tax
|
4,562
|
3,733
|
Adjustment for non-cash items
|
10,085
|
(7,115)
|
Net decrease/(increase) in loans and advances at amortised
cost
|
7,734
|
(17,667)
|
Net increase in deposits at amortised cost
|
8,919
|
49,237
|
Net decrease/(increase) in debt securities in issue
|
(9,596)
|
19,748
|
Changes in other operating assets and liabilities
|
2,553
|
14,719
|
Corporate income tax paid
|
(346)
|
(401)
|
Net cash from operating activities
|
23,911
|
62,254
|
Net cash from investing activities
|
(14,784)
|
(14,939)
|
Net cash from financing
activities1
|
(191)
|
(5,500)
|
Effect of exchange rates on cash and cash equivalents
|
(6,069)
|
7,047
|
Net increase in cash and cash equivalents
|
2,867
|
48,862
|
Cash and cash equivalents at beginning of the period
|
278,790
|
259,206
|
Cash and cash equivalents at end of the period
|
281,657
|
308,068
|
1
|
Issuance and redemption of debt securities included in financing
activities relate to instruments that qualify as eligible
liabilities and satisfy regulatory requirements for MREL
instruments which came into effect during 2019.
|
Financial Statement Notes
These condensed consolidated interim financial statements ("the
financial statements") for the six months ended 30 June 2023 have
been prepared in accordance with the Disclosure Guidance and
Transparency Rules (DTR) of the UK’s Financial Conduct
Authority (FCA), and IAS 34, Interim Financial Reporting, as
published by the International Accounting Standards Board (IASB)
and adopted by the UK.
The condensed consolidated interim financial statements should be
read in conjunction with the annual financial statements for the
year ended 31 December 2022. The annual financial statements for
the year ended 31 December 2022 were prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 and in accordance with
International Financial Reporting Standards (IFRS) and
interpretations (IFRICs) as issued by the IASB and adopted by the
UK.
The accounting policies and methods of computation used in these
condensed consolidated interim financial statements are the same as
those used in the Barclays PLC Annual Report for the financial year
ended 31 December 2022.
The financial statements are prepared on a going concern basis, as
the Directors are satisfied that the Group and parent company have
the resources to continue in business for a period of at least 12
months from approval of the interim financial statements. In making
this assessment, the Directors have considered a wide range of
information relating to present and future conditions and includes
a review of a working capital report (WCR). The WCR is used by the
Directors to assess the future performance of the business and that
it has the resources in place that are required to meet its ongoing
regulatory requirements. The WCR also includes an assessment of the
impact of internally generated stress testing scenarios on the
liquidity and capital requirement forecasts. The stress tests used
were based upon an assessment of reasonably possible downside
economic scenarios that the Group could experience.
The WCR indicated that the Group had sufficient capital in place to
support its future business requirements and remained above its
regulatory minimum requirements in the internal stress
scenarios.
The Credit risk disclosures on pages 26 to 47 form part of these
interim financial statements.
Analysis of results by business
|
|
|
|
|
|
Barclays UK
|
Barclays
International
|
Head Office
|
Barclays Group
|
Half year ended 30.06.23
|
£m
|
£m
|
£m
|
£m
|
Total income
|
3,922
|
9,722
|
(122)
|
13,522
|
Operating costs
|
(2,182)
|
(5,703)
|
(145)
|
(8,030)
|
Litigation and conduct
|
3
|
(30)
|
(5)
|
(32)
|
Total operating expenses
|
(2,179)
|
(5,733)
|
(150)
|
(8,062)
|
Other
net income/(expenses)1
|
—
|
9
|
(11)
|
(2)
|
Profit/(loss) before impairment
|
1,743
|
3,998
|
(283)
|
5,458
|
Credit impairment charges
|
(208)
|
(679)
|
(9)
|
(896)
|
Profit/(loss) before tax
|
1,535
|
3,319
|
(292)
|
4,562
|
|
|
|
|
|
As at 30.06.23
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
304.8
|
1,226.4
|
18.5
|
1,549.7
|
Total liabilities
|
276.9
|
1,142.4
|
61.9
|
1,481.2
|
|
Barclays UK
|
Barclays
International
|
Head Office
|
Barclays Group
|
Half year ended 30.06.22
|
£m
|
£m
|
£m
|
£m
|
Total income
|
3,373
|
9,940
|
(109)
|
13,204
|
Operating costs
|
(2,083)
|
(5,042)
|
(145)
|
(7,270)
|
Litigation and conduct
|
(25)
|
(1,832)
|
—
|
(1,857)
|
Total operating expenses
|
(2,108)
|
(6,874)
|
(145)
|
(9,127)
|
Other
net income/(expenses)1
|
—
|
13
|
(16)
|
(3)
|
Profit/(loss) before impairment
|
1,265
|
3,079
|
(270)
|
4,074
|
Credit impairment (charges)/releases
|
(48)
|
(310)
|
17
|
(341)
|
Profit/(loss) before tax
|
1,217
|
2,769
|
(253)
|
3,733
|
|
|
|
|
|
As at 31.12.22
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
313.2
|
1,181.3
|
19.2
|
1,513.7
|
Total liabilities
|
287.3
|
1,093.9
|
63.2
|
1,444.4
|
1
|
Other net income/(expenses) represents the share of post-tax
results of associates and joint ventures, profit (or loss) on
disposal of subsidiaries, associates and joint ventures and gains
on acquisitions.
|
Split of income by geographic
region1
|
|
|
|
Half year ended 30.06.23
|
Half year ended 30.06.22
|
|
£m
|
£m
|
United Kingdom
|
7,312
|
7,972
|
Europe
|
1,265
|
1,311
|
Americas
|
4,187
|
3,200
|
Africa and Middle East
|
42
|
31
|
Asia
|
716
|
690
|
Total
|
13,522
|
13,204
|
1
|
The geographical analysis is based on the location of the office
where the transactions are recorded.
|
3.
Net fee and commission income
Fee and commission income is disaggregated below and includes a
total for fees in scope of IFRS 15, Revenue from Contracts with
Customers:
|
Barclays UK
|
Barclays International
|
Head Office
|
Total
|
Half year ended 30.06.23
|
£m
|
£m
|
£m
|
£m
|
Fee type
|
|
|
|
|
Transactional
|
560
|
1,827
|
—
|
2,387
|
Advisory
|
57
|
457
|
—
|
514
|
Brokerage and execution
|
122
|
1,042
|
—
|
1,164
|
Underwriting and syndication
|
—
|
1,036
|
—
|
1,036
|
Other
|
27
|
53
|
2
|
82
|
Total revenue from contracts with customers
|
766
|
4,415
|
2
|
5,183
|
Other non-contract fee income
|
—
|
74
|
—
|
74
|
Fee and commission income
|
766
|
4,489
|
2
|
5,257
|
Fee and commission expense
|
(188)
|
(1,707)
|
(3)
|
(1,898)
|
Net fee and commission income
|
578
|
2,782
|
(1)
|
3,359
|
|
Barclays UK
|
Barclays International
|
Head Office
|
Total
|
Half year ended 30.06.22
|
£m
|
£m
|
£m
|
£m
|
Fee type
|
|
|
|
|
Transactional
|
515
|
1,448
|
—
|
1,963
|
Advisory
|
83
|
511
|
—
|
594
|
Brokerage and execution
|
125
|
762
|
—
|
887
|
Underwriting and syndication
|
—
|
1,102
|
—
|
1,102
|
Other
|
29
|
80
|
2
|
111
|
Total revenue from contracts with customers
|
752
|
3,903
|
2
|
4,657
|
Other non-contract fee income
|
—
|
69
|
—
|
69
|
Fee and commission income
|
752
|
3,972
|
2
|
4,726
|
Fee and commission expense
|
(147)
|
(1,153)
|
(2)
|
(1,302)
|
Net fee and commission income
|
605
|
2,819
|
—
|
3,424
|
Transactional fees are service charges on deposit accounts, cash
management services and transactional processing fees. These
include interchange and merchant fee income generated from credit
and bank card usage.
Advisory fees are generated from wealth management services and
investment banking advisory services related to mergers,
acquisitions and financial restructurings.
Brokerage and execution fees are earned for executing client
transactions with various exchanges and over-the-counter markets
and assisting clients in clearing transactions and facilitating
foreign exchange transactions for spot/forward
contracts.
Underwriting and syndication fees are earned for the distribution
of client equity or debt securities and the arrangement and
administration of a loan syndication. These include commitment fees
to provide loan financing.
|
Half year
ended
30.06.23
|
Half year
ended
30.06.22
|
Compensation costs
|
£m
|
£m
|
Upfront bonus charge
|
665
|
705
|
Deferred bonus charge
|
263
|
280
|
Other incentives
|
42
|
44
|
Performance costs
|
970
|
1,029
|
Salaries
|
2,540
|
2,278
|
Social security costs
|
399
|
377
|
Post-retirement benefits
|
268
|
282
|
Other compensation costs
|
281
|
241
|
Total compensation costs
|
4,458
|
4,207
|
|
|
|
Other resourcing costs
|
|
|
Outsourcing
|
340
|
268
|
Redundancy and restructuring
|
63
|
(15)
|
Temporary staff costs
|
53
|
53
|
Other
|
71
|
70
|
Total other resourcing costs
|
527
|
376
|
|
|
|
Total staff costs
|
4,985
|
4,583
|
|
|
|
Barclays Group compensation costs as a % of total
income
|
33.0%
|
31.9%
|
5.
Infrastructure, administration and general expenses
|
Half year
ended
30.06.23
|
Half year
ended
30.06.22
|
Infrastructure costs
|
£m
|
£m
|
Property and equipment
|
857
|
758
|
Depreciation and amortisation
|
902
|
863
|
Impairment of property, equipment and intangible
assets
|
18
|
21
|
Total infrastructure costs
|
1,777
|
1,642
|
|
|
|
Administration and general expenses
|
|
|
Consultancy, legal and professional fees
|
336
|
288
|
Marketing and advertising
|
288
|
206
|
Other administration and general expenses
|
644
|
551
|
Total administration and general expenses
|
1,268
|
1,045
|
|
|
|
Total infrastructure, administration and general
expenses
|
3,045
|
2,687
|
|
Half year
ended
30.06.23
|
Half year
ended
30.06.22
|
|
£m
|
£m
|
Profit attributable to ordinary equity holders of the
parent
|
3,111
|
2,475
|
|
|
|
|
m
|
m
|
Basic weighted average number of shares in issue
|
15,645
|
16,684
|
Number of potential ordinary shares
|
470
|
428
|
Diluted weighted average number of shares
|
16,115
|
17,112
|
|
|
|
|
p
|
p
|
Basic earnings per ordinary share
|
19.9
|
14.8
|
Diluted earnings per ordinary share
|
19.3
|
14.5
|
7.
Dividends on ordinary shares
|
Half year ended 30.06.23
|
Half year ended 30.06.22
|
|
Per share
|
Total
|
Per share
|
Total
|
Dividends paid during the period
|
p
|
£m
|
p
|
£m
|
Full year dividend paid during period
|
5.00
|
793
|
4.00
|
664
|
A half year dividend for 2023 of 2.7p (H122: 2.25p) per ordinary
share will be paid on 15 September 2023 to shareholders on the
register on 11 August 2023.
For qualifying American Depositary Receipt (ADR) holders, the half
year dividend of 2.7p per ordinary share becomes 10.8p per American
Depositary Share (representing 4 shares). The depositary bank will
post the half year dividend on 15 September 2023 to ADR holders on
the record at close of business on 11 August 2023.
The Directors have confirmed their intention to initiate a share
buyback of up to £750m after the balance sheet date. The share
buyback is expected to commence in the third quarter of 2023. The
financial statements for the six months ended 30 June 2023 do not
reflect the impact of the proposed share buyback, which will be
accounted for as and when shares are repurchased by the
Company.
8.
Derivative financial instruments
|
Contract
notional
amount
|
|
Fair value
|
|
|
Assets
|
Liabilities
|
As at 30.06.23
|
£m
|
|
£m
|
£m
|
Foreign exchange derivatives
|
6,411,178
|
|
89,839
|
(83,459)
|
Interest rate derivatives
|
53,452,259
|
|
119,533
|
(107,171)
|
Credit derivatives
|
1,482,669
|
|
5,280
|
(5,999)
|
Equity and stock index and commodity derivatives
|
2,835,137
|
|
49,986
|
(57,777)
|
Derivative assets/(liabilities) held for trading
|
64,181,243
|
|
264,638
|
(254,406)
|
|
|
|
|
|
Derivatives in hedge accounting relationships
|
|
|
|
|
Derivatives designated as cash flow hedges
|
156,774
|
|
1,428
|
—
|
Derivatives designated as fair value hedges
|
125,205
|
|
201
|
(434)
|
Derivatives designated as hedges of net investments
|
3,864
|
|
45
|
(9)
|
Derivative assets/(liabilities) designated in hedge accounting
relationships
|
285,843
|
|
1,674
|
(443)
|
|
|
|
|
|
Total recognised derivative assets/(liabilities)
|
64,467,086
|
|
266,312
|
(254,849)
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
Foreign exchange derivatives
|
5,908,087
|
|
109,288
|
(103,918)
|
Interest rate derivatives
|
42,506,611
|
|
134,496
|
(121,290)
|
Credit derivatives
|
1,727,220
|
|
5,423
|
(6,052)
|
Equity and stock index and commodity derivatives
|
2,547,855
|
|
52,440
|
(57,313)
|
Derivative assets/(liabilities) held for trading
|
52,689,773
|
|
301,647
|
(288,573)
|
|
|
|
|
|
Derivatives in hedge accounting relationships
|
|
|
|
|
Derivatives designated as cash flow hedges
|
155,483
|
|
549
|
(212)
|
Derivatives designated as fair value hedges
|
126,060
|
|
83
|
(815)
|
Derivatives designated as hedges of net investments
|
3,962
|
|
101
|
(20)
|
Derivative assets/(liabilities) designated in hedge accounting
relationships
|
285,505
|
|
733
|
(1,047)
|
|
|
|
|
|
Total recognised derivative assets/(liabilities)
|
52,975,278
|
|
302,380
|
(289,620)
|
The IFRS netting posted against derivative assets was £74bn
including £16bn of cash collateral netted (December 2022:
£76bn including £15bn cash collateral netted) and
£74bn for liabilities including £16bn of cash collateral
netted (December 2022: £77bn including £15bn of cash
collateral netted). Derivative asset exposures would be £237bn
(December 2022: £273bn) lower than reported under IFRS if
netting were permitted for assets and liabilities with the same
counterparty or for which the Group holds cash collateral of
£34bn (December 2022: £35bn). Similarly, derivative
liabilities would be £228bn (December 2022: £264bn) lower
reflecting counterparty netting and cash collateral placed of
£24bn (December 2022: £25bn). In addition, non-cash
collateral of £11bn (December 2022: £11bn) was held in
respect of derivative assets and £3bn (December 2022:
£1bn) was placed in respect of derivative liabilities.
Collateral amounts are limited to net on balance sheet exposure so
as to not include over-collateralisation.
9.
Fair value of financial instruments
This section should be read in conjunction with Note 17, Fair value
of financial instruments of the Barclays PLC Annual Report 2022
which provides more detail about accounting policies adopted,
valuation methodologies used in calculating fair value and the
valuation control framework which governs oversight of valuations.
There have been no changes in the accounting policies adopted or
the valuation methodologies used.
Valuation
The following table shows the Group’s assets and liabilities
that are held at fair value disaggregated by valuation technique
(fair value hierarchy) and balance sheet
classification:
|
Valuation technique using
|
|
|
Quoted market
prices
|
Observable
inputs
|
Significant
unobservable
inputs
|
|
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
As at 30.06.23
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
87,003
|
72,032
|
6,799
|
165,834
|
Financial assets at fair value through the income
statement
|
6,144
|
219,938
|
9,018
|
235,100
|
Derivative financial instruments
|
3,484
|
258,295
|
4,533
|
266,312
|
Financial assets at fair value through other comprehensive
income
|
24,477
|
41,477
|
114
|
66,068
|
Investment property
|
—
|
—
|
2
|
2
|
Total assets
|
121,108
|
591,742
|
20,466
|
733,316
|
|
|
|
|
|
Trading portfolio liabilities
|
(37,451)
|
(33,477)
|
(52)
|
(70,980)
|
Financial liabilities designated at fair value
|
(115)
|
(313,439)
|
(1,100)
|
(314,654)
|
Derivative financial instruments
|
(4,064)
|
(245,517)
|
(5,268)
|
(254,849)
|
Total liabilities
|
(41,630)
|
(592,433)
|
(6,420)
|
(640,483)
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
Trading portfolio assets
|
62,478
|
64,855
|
6,480
|
133,813
|
Financial assets at fair value through the income
statement
|
5,720
|
198,723
|
9,125
|
213,568
|
Derivative financial instruments
|
10,054
|
287,152
|
5,174
|
302,380
|
Financial assets at fair value through other comprehensive
income
|
20,704
|
44,347
|
11
|
65,062
|
Investment property
|
—
|
—
|
5
|
5
|
Total assets
|
98,956
|
595,077
|
20,795
|
714,828
|
|
|
|
|
|
Trading portfolio liabilities
|
(44,128)
|
(28,740)
|
(56)
|
(72,924)
|
Financial liabilities designated at fair value
|
(133)
|
(270,454)
|
(1,050)
|
(271,637)
|
Derivative financial instruments
|
(10,823)
|
(272,434)
|
(6,363)
|
(289,620)
|
Total liabilities
|
(55,084)
|
(571,628)
|
(7,469)
|
(634,181)
|
The following table shows the Group’s Level 3 assets and
liabilities that are held at fair value disaggregated by product
type:
|
As at 30.06.23
|
As at 31.12.22
|
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|
£m
|
£m
|
£m
|
£m
|
Interest rate derivatives
|
2,523
|
(2,043)
|
2,362
|
(2,858)
|
Foreign exchange derivatives
|
182
|
(177)
|
1,513
|
(1,474)
|
Credit derivatives
|
342
|
(694)
|
290
|
(603)
|
Equity derivatives
|
1,488
|
(2,356)
|
1,009
|
(1,428)
|
Corporate debt
|
1,769
|
(35)
|
1,677
|
(49)
|
Reverse repurchase and repurchase agreements
|
44
|
(643)
|
37
|
(434)
|
Non-asset backed loans
|
9,631
|
—
|
9,949
|
—
|
Private equity investments
|
1,280
|
(8)
|
1,291
|
(8)
|
Other1
|
3,207
|
(464)
|
2,667
|
(615)
|
Total
|
20,466
|
(6,420)
|
20,795
|
(7,469)
|
1
|
Other includes commercial real estate loans, funds and fund-linked
products, asset backed loans, asset backed securities, equity cash
products, issued debt, commercial paper, Government and government
sponsored debt and investment property.
|
Assets and liabilities reclassified between Level 1 and Level
2
During the period, there were no material transfers between Level 1
and Level 2 (period ended 31 December 2022: no material transfers
between Level 1 and Level 2).
Level 3 movement analysis
The following table summarises the movements in the balances of
Level 3 assets and liabilities during the period. The table shows
gains and losses and includes amounts for all financial assets and
liabilities that are held at fair value transferred to and from
Level 3 during the period. Transfers have been reflected as if they
had taken place at the beginning of the period.
Asset and liability moves between Level 2 and Level 3 are primarily
due to i) an increase or decrease in observable market activity
related to an input or ii) a change in the significance of the
unobservable input, with assets and liabilities classified as Level
3 if an unobservable input is deemed significant.
Level 3 movement analysis
|
|
|
|
|
|
|
Total gains and (losses) in the period recognised in the income
statement
|
Total gains or (losses) recognised in OCI
|
Transfers
|
|
|
As at
01.01.23
|
Purchases
|
Sales
|
Issues
|
Settle-ments
|
Trading income
|
Other income
|
In
|
Out
|
As at 30.06.23
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Corporate debt
|
597
|
336
|
(118)
|
—
|
(53)
|
5
|
—
|
—
|
36
|
(29)
|
774
|
Non-asset backed loans
|
4,837
|
919
|
(1,152)
|
—
|
(311)
|
4
|
—
|
—
|
556
|
(334)
|
4,519
|
Other
|
1,046
|
1,030
|
(606)
|
—
|
(38)
|
(43)
|
—
|
—
|
430
|
(313)
|
1,506
|
Trading portfolio assets
|
6,480
|
2,285
|
(1,876)
|
—
|
(402)
|
(34)
|
—
|
—
|
1,022
|
(676)
|
6,799
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt
|
1,079
|
—
|
(120)
|
—
|
—
|
(20)
|
(3)
|
—
|
—
|
—
|
936
|
Non-asset backed loans
|
5,112
|
1,051
|
(305)
|
—
|
(641)
|
(46)
|
(42)
|
—
|
50
|
(114)
|
5,065
|
Private equity investments
|
1,284
|
50
|
(22)
|
—
|
(3)
|
(50)
|
14
|
—
|
2
|
—
|
1,275
|
Reverse repurchase and repurchase agreements
|
38
|
—
|
—
|
—
|
—
|
(11)
|
—
|
—
|
46
|
(29)
|
44
|
Other
|
1,612
|
796
|
(530)
|
—
|
(151)
|
(26)
|
(9)
|
—
|
22
|
(16)
|
1,698
|
Financial assets at fair value through the income
statement
|
9,125
|
1,897
|
(977)
|
—
|
(795)
|
(153)
|
(40)
|
—
|
120
|
(159)
|
9,018
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt
|
—
|
13
|
—
|
—
|
—
|
—
|
—
|
—
|
46
|
—
|
59
|
Non-asset backed loans
|
—
|
47
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
47
|
Private equity investments
|
7
|
—
|
—
|
—
|
—
|
—
|
—
|
(2)
|
—
|
—
|
5
|
Other
|
4
|
—
|
—
|
—
|
(1)
|
—
|
—
|
—
|
—
|
—
|
3
|
Assets at fair value through other comprehensive
income
|
11
|
60
|
—
|
—
|
(1)
|
—
|
—
|
(2)
|
46
|
—
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property
|
5
|
—
|
—
|
—
|
—
|
—
|
(3)
|
—
|
—
|
—
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(56)
|
(16)
|
4
|
—
|
—
|
15
|
—
|
—
|
(8)
|
9
|
(52)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities designated at fair value
|
(1,050)
|
—
|
—
|
(226)
|
—
|
4
|
(1)
|
—
|
(290)
|
463
|
(1,100)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives
|
(496)
|
2
|
—
|
—
|
19
|
(35)
|
—
|
—
|
544
|
446
|
480
|
Foreign exchange derivatives
|
39
|
—
|
—
|
—
|
—
|
(31)
|
—
|
—
|
12
|
(15)
|
5
|
Credit derivatives
|
(313)
|
(191)
|
5
|
—
|
66
|
13
|
—
|
—
|
52
|
16
|
(352)
|
Equity derivatives
|
(419)
|
(90)
|
—
|
—
|
(132)
|
(135)
|
—
|
—
|
(104)
|
12
|
(868)
|
Net derivative financial instruments1
|
(1,189)
|
(279)
|
5
|
—
|
(47)
|
(188)
|
—
|
—
|
504
|
459
|
(735)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
13,326
|
3,947
|
(2,844)
|
(226)
|
(1,245)
|
(356)
|
(44)
|
(2)
|
1,394
|
96
|
14,046
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £4,533m and
derivative financial liabilities were £5,268m.
|
Level 3 movement analysis
|
|
As at
01.01.22
|
Purchases
|
Sales
|
Issues
|
Settle-
ments
|
Total gains and (losses) in the period recognised in the income
statement
|
Total gains or (losses) recognised in OCI
|
Transfers
|
As at 30.06.22
|
|
Trading income
|
Other income
|
In
|
Out
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Corporate debt
|
389
|
90
|
(144)
|
—
|
(17)
|
54
|
—
|
—
|
43
|
(11)
|
404
|
Non-asset backed loans
|
758
|
2,448
|
(459)
|
—
|
—
|
11
|
—
|
—
|
50
|
(113)
|
2,695
|
Other
|
1,134
|
419
|
(178)
|
—
|
(302)
|
60
|
—
|
—
|
191
|
(167)
|
1,157
|
Trading portfolio assets
|
2,281
|
2,957
|
(781)
|
—
|
(319)
|
125
|
—
|
—
|
284
|
(291)
|
4,256
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt
|
816
|
45
|
—
|
—
|
(148)
|
55
|
—
|
—
|
—
|
—
|
768
|
Non-asset backed loans
|
5,647
|
1,847
|
(757)
|
—
|
(484)
|
(334)
|
—
|
—
|
52
|
(9)
|
5,962
|
Private equity investments
|
1,095
|
99
|
(16)
|
—
|
(1)
|
84
|
(26)
|
—
|
59
|
(4)
|
1,290
|
Reverse repurchase and repurchase agreements
|
13
|
66
|
—
|
—
|
(12)
|
16
|
—
|
—
|
95
|
—
|
178
|
Other
|
2,141
|
4,706
|
(5,579)
|
—
|
4
|
(57)
|
184
|
—
|
4
|
(19)
|
1,384
|
Financial assets at fair value through the income
statement
|
9,712
|
6,763
|
(6,352)
|
—
|
(641)
|
(236)
|
158
|
—
|
210
|
(32)
|
9,582
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1
|
6
|
—
|
7
|
Asset backed securities
|
38
|
—
|
—
|
—
|
—
|
—
|
—
|
(2)
|
—
|
—
|
36
|
Assets at fair value through other comprehensive
income
|
38
|
—
|
—
|
—
|
—
|
—
|
—
|
(1)
|
6
|
—
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property
|
7
|
—
|
(1)
|
—
|
—
|
—
|
(1)
|
—
|
—
|
—
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(27)
|
(35)
|
3
|
—
|
—
|
(29)
|
—
|
—
|
—
|
6
|
(82)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities designated at fair value
|
(410)
|
(5)
|
—
|
(13)
|
47
|
(22)
|
—
|
—
|
(81)
|
37
|
(447)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives
|
(260)
|
25
|
—
|
—
|
(4)
|
(305)
|
(9)
|
—
|
271
|
6
|
(276)
|
Foreign exchange derivatives
|
2
|
—
|
—
|
—
|
(9)
|
273
|
—
|
—
|
(65)
|
25
|
226
|
Credit derivatives
|
(386)
|
(36)
|
5
|
—
|
60
|
(99)
|
—
|
—
|
20
|
55
|
(381)
|
Equity derivatives
|
(1,405)
|
(83)
|
—
|
—
|
171
|
980
|
(1)
|
—
|
(9)
|
272
|
(75)
|
Net derivative financial instruments1
|
(2,049)
|
(94)
|
5
|
—
|
218
|
849
|
(10)
|
—
|
217
|
358
|
(506)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
9,552
|
9,586
|
(7,126)
|
(13)
|
(695)
|
687
|
147
|
(1)
|
636
|
78
|
12,851
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £3,873m and
derivative financial liabilities were £4,379m.
|
Unrealised gains and losses on Level 3 financial assets and
liabilities
The following table discloses the unrealised gains and losses
recognised in the period arising on Level 3 financial assets and
liabilities held at the period end.
|
Half year ended 30.06.23
|
Half year ended 30.06.22
|
|
Income statement
|
Other
comprehensive
income
|
Total
|
Income statement
|
Other
comprehensive income
|
Total
|
|
Trading
income
|
Other
income
|
Trading
income
|
Other
income
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
(35)
|
—
|
—
|
(35)
|
121
|
—
|
—
|
121
|
Financial assets at fair value through the income
statement
|
(144)
|
(40)
|
—
|
(184)
|
(165)
|
(22)
|
—
|
(187)
|
Financial assets at fair value through other comprehensive
income
|
—
|
—
|
(2)
|
(2)
|
—
|
—
|
(1)
|
(1)
|
Investment properties
|
—
|
(3)
|
—
|
(3)
|
—
|
(1)
|
—
|
(1)
|
Trading portfolio liabilities
|
15
|
—
|
—
|
15
|
(35)
|
—
|
—
|
(35)
|
Financial liabilities designated at fair value
|
2
|
(1)
|
—
|
1
|
(14)
|
—
|
—
|
(14)
|
Net derivative financial instruments
|
(186)
|
—
|
—
|
(186)
|
862
|
(1)
|
—
|
861
|
Total
|
(348)
|
(44)
|
(2)
|
(394)
|
769
|
(24)
|
(1)
|
744
|
Valuation techniques and sensitivity analysis
Sensitivity analysis is performed on products with significant
unobservable inputs (Level 3) to generate a range of reasonably
possible alternative valuations. The sensitivity methodologies
applied take account of the nature of valuation techniques used, as
well as the availability and reliability of observable proxy and
historical data and the impact of using alternative
models.
Sensitivities are dynamically calculated on a monthly basis. The
calculation is based on range or spread data of a reliable
reference source or a scenario based on relevant market analysis
alongside the impact of using alternative models. Sensitivities are
calculated without reflecting the impact of any diversification in
the portfolio.
Current year valuation and sensitivity methodologies are consistent
with those described within Note 17, Fair value of financial
instruments in the Barclays PLC Annual Report 2022.
Sensitivity analysis of valuations using unobservable
inputs
|
|
|
|
|
|
|
|
|
|
|
As at 30.06.23
|
As at 31.12.22
|
|
Favourable changes
|
Unfavourable changes
|
Favourable changes
|
Unfavourable changes
|
|
Income
statement
|
Equity
|
Income
statement
|
Equity
|
Income
statement
|
Equity
|
Income
statement
|
Equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Interest rate derivatives
|
123
|
—
|
(186)
|
—
|
119
|
—
|
(155)
|
—
|
Foreign exchange derivatives
|
11
|
—
|
(17)
|
—
|
16
|
—
|
(22)
|
—
|
Credit derivatives
|
26
|
—
|
(79)
|
—
|
79
|
—
|
(71)
|
—
|
Equity derivatives
|
186
|
—
|
(264)
|
—
|
161
|
—
|
(168)
|
—
|
Corporate debt
|
23
|
—
|
(22)
|
—
|
45
|
—
|
(27)
|
—
|
Non-asset backed loans
|
360
|
1
|
(590)
|
(1)
|
316
|
—
|
(521)
|
—
|
Private equity investments
|
240
|
1
|
(239)
|
(1)
|
268
|
1
|
(281)
|
(1)
|
Other1
|
126
|
—
|
(124)
|
—
|
71
|
—
|
(82)
|
—
|
Total
|
1,095
|
2
|
(1,521)
|
(2)
|
1,075
|
1
|
(1,327)
|
(1)
|
1
|
Other includes commercial real estate loans, funds and fund-linked
products, asset backed loans, asset backed securities, equity cash
products, issued debt, commercial paper, Government and government
sponsored debt and investment property.
|
The effect of stressing unobservable inputs to a range of
reasonably possible alternatives, alongside considering the impact
of using alternative models, would be to increase fair values by up
to £1,097m (December 2022: £1,076m) or to decrease fair
values by up to £1,523m (December 2022: £1,328m) with
substantially all the potential effect impacting profit and loss
rather than reserves.
Significant unobservable inputs
The valuation techniques and significant unobservable inputs for
assets and liabilities recognised at fair value and classified as
Level 3 are consistent with Note 17, Fair value of financial
instruments in the Barclays PLC Annual Report 2022.
Fair value adjustments
Key balance sheet valuation adjustments are quantified
below:
|
As at 30.06.23
|
As at 31.12.22
|
|
£m
|
£m
|
Exit price adjustments derived from market bid-offer
spreads
|
(554)
|
(577)
|
Uncollateralised derivative funding
|
(24)
|
(11)
|
Derivative credit valuation adjustments
|
(241)
|
(319)
|
Derivative debit valuation adjustments
|
196
|
208
|
●
|
Exit price adjustments derived from market bid-offer spreads
decreased by £23m to £554m
|
●
|
Uncollateralised derivative funding increased by £13m to
£24m
|
●
|
Derivative credit valuation adjustments decreased by £78m to
£241m as a result of tightening input counterparty credit
spreads
|
●
|
Derivative debit valuation adjustments decreased by £12m to
£196m
|
Portfolio exemption
The Group uses the portfolio exemption in IFRS 13, Fair Value
Measurement to measure the fair value of groups of financial assets
and liabilities. Instruments are measured using the price that
would be received to sell a net long position (i.e. an asset) for a
particular risk exposure or to transfer a net short position (i.e.
a liability) for a particular risk exposure in an orderly
transaction between market participants at the balance sheet date
under current market conditions. Accordingly, the Group measures
the fair value of the group of financial assets and liabilities
consistently with how market participants would price the net risk
exposure at the measurement date.
Unrecognised gains as a result of the use of valuation models using
unobservable inputs
The amount that has yet to be recognised in income that relates to
the difference between the transaction price (the fair value at
initial recognition) and the amount that would have arisen had
valuation models using unobservable inputs been used on initial
recognition, less amounts subsequently recognised, is £197m
(December 2022: £126m) for financial instruments measured at
fair value and £209m (December 2022: £216m) for financial
instruments carried at amortised cost. There are additions and FX
gains of £107m (December 2022: £59m) and amortisation and
releases of £36m (December 2022: £66m) for financial
instruments measured at fair value and additions of £nil
(December 2022: £nil) and amortisation and releases of
£7m (December 2022: £14m) for financial instruments
carried at amortised cost.
Third party credit enhancements
Structured and brokered certificates of deposit issued by the Group
are insured up to $250,000 per depositor by the Federal Deposit
Insurance Corporation (FDIC) in the United States. The FDIC is
funded by premiums that Barclays and other banks pay for deposit
insurance coverage. The carrying value of these issued certificates
of deposit that are designated under the IFRS 9 fair value option
includes this third party credit enhancement. The on balance sheet
value of these brokered certificates of deposit amounted to
£4,648m (December 2022: £5,197m).
Comparison of carrying amounts and fair values for assets and
liabilities not held at fair value
Valuation methodologies employed in calculating the fair value of
financial assets and liabilities measured at amortised cost are
consistent with those described within Note 17, Fair value of
financial instruments in the Barclays PLC Annual Report
2022.
The following table summarises the fair value of financial assets
and liabilities measured at amortised cost on the Group’s
balance sheet.
|
As at 30.06.23
|
As at 31.12.22
|
|
Carrying
amount
|
Fair
value
|
Carrying
amount
|
Fair
value
|
Financial assets
|
£m
|
£m
|
£m
|
£m
|
Debt securities at amortised cost
|
53,147
|
51,615
|
45,487
|
44,815
|
Loans and advances at amortised cost
|
348,258
|
341,484
|
353,292
|
346,846
|
Reverse repurchase agreements and other similar secured
lending
|
2,600
|
2,600
|
776
|
776
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
Deposits at amortised cost
|
(554,666)
|
(554,536)
|
(545,782)
|
(545,738)
|
Repurchase agreements and other similar secured
borrowing
|
(41,213)
|
(41,211)
|
(27,052)
|
(27,054)
|
Debt securities in issue
|
(105,018)
|
(105,546)
|
(112,881)
|
(113,276)
|
Subordinated liabilities
|
(11,019)
|
(11,001)
|
(11,423)
|
(11,474)
|
10.
Goodwill and intangible assets
The Group performed an impairment review to assess the
recoverability of its goodwill and intangible asset balances as at
31 December 2022. The outcome of this review is disclosed on pages
473-476 of the Barclays PLC Annual Report 2022. No impairment was
recognised as a result of the review as value in use exceeded
carrying amount. The increased goodwill in the period is primarily
a result of the Kensington Mortgage Company acquisition in March
2023. A review of the Group's goodwill and intangible assets as at
30 June 2023 did not identify any factors indicating
impairment.
In May 2023, Barclays Bank UK PLC sold the entire issued share
capital of Barclays Asset Management Limited and Barclays
Investment Solutions Limited along with certain other assets and
liabilities, business guarantees and business contracts (together
with the transfer of associated employees of Barclays Bank UK PLC)
to Barclays Bank PLC. As a result of this transfer, Intangible
assets of approximately £0.2bn held within Barclays Execution
Services Limited has been allocated from Personal Banking to
Private Banking.
11.
Subordinated liabilities
|
Half year
ended
30.06.23
|
Year ended
31.12.22
|
|
£m
|
£m
|
Opening balance as at 1 January
|
11,423
|
12,759
|
Issuances
|
1,317
|
1,477
|
Redemptions
|
(1,362)
|
(2,679)
|
Other
|
(359)
|
(134)
|
Closing balance
|
11,019
|
11,423
|
Issuances of £1,317m comprise £1,180m USD 7.119%
Fixed-to-Floating Rate Subordinated Callable Notes issued
externally by Barclays PLC and £137m USD Floating Rate Notes
issued externally by a Barclays subsidiary.
Redemptions of £1,362m comprise £1,345m EUR 2% Fixed Rate
Subordinated Notes issued externally by Barclays PLC and £17m
USD Floating Rate Notes issued externally by a Barclays
subsidiary.
Other movements predominantly comprise foreign exchange movements
and fair value hedge adjustments. In addition, it also includes a
UT2 instrument (£99m) which was previously equity accounted
and has now been reclassified to Dated Subordinated Liabilities, on
the basis of an irrevocable notice of redemption being issued in
June 2023.
|
As at 30.06.23
|
As at 31.12.22
|
|
£m
|
£m
|
Customer
redress
|
349
|
378
|
Legal,
competition and regulatory matters
|
105
|
159
|
Redundancy
and restructuring
|
121
|
136
|
Undrawn
contractually committed facilities and guarantees
|
549
|
583
|
Sundry
provisions
|
300
|
288
|
Total
|
1,424
|
1,544
|
As at 30 June 2023, the Group’s IAS 19 net pension surplus
across all schemes was £3.9bn (December 2022: £4.5bn).
The UK Retirement Fund (UKRF), which is the Group’s main
scheme, had an IAS 19 net pension surplus of £4.1bn (December
2022: £4.7bn). The movement for the UKRF was mainly
driven by: actual price inflation being higher than assumed, future
long-term price inflation expected to be higher than assumed at the
start of the year, assets underperforming relative to the discount
rate, partially offset by an increase in discount
rate.
UKRF funding valuations
The latest triennial actuarial valuation of the UKRF with an
effective date of 30 September 2022 was completed in February 2023.
The valuation showed a funding surplus of £2bn (2021 update:
£0.6bn surplus).
As the UKRF had a funding surplus at the valuation date, the 2023
deficit reduction contribution (£286m), agreed as part of the
2019 triennial actuarial valuation, is no longer required, and no
recovery plan is needed.
|
As at 30.06.23
|
As at 31.12.22
|
|
£m
|
£m
|
Currency translation reserve
|
3,599
|
4,772
|
Fair value through other comprehensive income reserve
|
(1,485)
|
(1,560)
|
Cash flow hedging reserve
|
(7,990)
|
(7,235)
|
Own credit reserve
|
(27)
|
467
|
Other reserves and treasury shares
|
1,446
|
1,364
|
Total
|
(4,457)
|
(2,192)
|
Currency translation reserve
The currency translation reserve represents the cumulative gains
and losses on the retranslation of the Group’s net investment
in foreign operations, net of the effects of hedging.
As at 30 June 2023, there was a cumulative gain of £3,599m
(December 2022: £4,772m gain) in the currency translation
reserve, a loss during the period of £1,173m. This principally
reflects the strengthening of GBP against USD and EUR during the
period.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve
represents the total of unrealised gains and losses on fair value
through other comprehensive income investments since initial
recognition.
As at 30 June 2023, there was a cumulative loss of £1,485m
(December 2022: £1,560m loss) in the reserve, a gain during
the period of £75m. This is principally driven by a gain of
£131m from the increase in fair value of bonds (net of hedges)
due to decreasing bond yields which was partially offset by a net
gain of £25m transferred to the income statement and a tax
charge of £31m.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and
losses on effective cash flow hedging instruments that will be
recycled to the income statement when the hedged transactions
affect profit or loss.
As at 30 June 2023, there was a cumulative loss of £7,990m
(December 2022: £7,235m loss) in the cash flow hedging
reserve, a loss during the period of £755m. This principally
reflects a £1,793m loss from the fair value movement of
interest rate swaps held for hedging purposes as major interest
rate forward curves increased offset by £741m of losses
transferred to the income statement and a tax credit of
£297m.
Own credit reserve
The own credit reserve reflects the cumulative own credit gains and
losses on financial liabilities at fair value. Amounts in the own
credit reserve are not recycled to profit or loss in future
periods.
As at 30 June 2023, there was a cumulative loss of £27m
(December 2022: £467m gain) in the own credit reserve, a loss
of £494m during the period. This principally reflects a
£682m loss from tightening of credit spreads partially offset
by tax credit of £188m.
Other reserves and treasury shares
Other reserves relate to redeemed ordinary and preference shares
issued by the Group. Treasury shares relate to Barclays PLC shares
held principally in relation to the Group’s various share
schemes.
As at 30 June 2023, there was a balance of £1,446m (December
2022: £1,364m gain). This principally reflects an increase of
£86m due to the repurchase of 343m shares as part of the share
buybacks conducted in 2023 offset by a £4m movement in the
treasury shares balance held in relation to employee share
schemes.
15.
Contingent liabilities and commitments
|
As at 30.06.23
|
As at 31.12.22
|
Contingent liabilities and financial guarantees
|
£m
|
£m
|
Guarantees and letters of credit pledged as collateral
security
|
18,720
|
17,760
|
Performance guarantees, acceptances and endorsements
|
6,777
|
6,445
|
Total
|
25,497
|
24,205
|
|
|
|
Commitments
|
|
|
Documentary credits and other short-term trade related
transactions
|
1,356
|
1,748
|
Standby facilities, credit lines and other commitments
|
380,197
|
393,760
|
Total
|
381,553
|
395,508
|
Further details on contingent liabilities, where it is not
practicable to disclose an estimate of the potential financial
effect on Barclays relating to legal and competition and regulatory
matters can be found in Note 16.
16.
Legal, competition and regulatory matters
The Group faces legal, competition and regulatory challenges, many
of which are beyond our control. The extent of the impact of these
matters cannot always be predicted but may materially impact our
operations, financial results, condition and prospects. Matters
arising from a set of similar circumstances can give rise to either
a contingent liability or a provision, or both, depending on the
relevant facts and circumstances.
The recognition of provisions in relation to such matters involves
critical accounting estimates and judgments in accordance with the
relevant accounting policies applicable to Note 12, Provisions. We
have not disclosed an estimate of the potential financial impact or
effect on the Group of contingent liabilities where it is not
currently practicable to do so. Various matters detailed in this
note seek damages of an unspecified amount. While certain matters
specify the damages claimed, such claimed amounts do not
necessarily reflect the Group’s potential financial exposure
in respect of those matters.
Matters are ordered under headings corresponding to the financial
statements in which they are disclosed.
1.
Barclays PLC and Barclays Bank PLC
Investigations into certain advisory services
agreements
FCA proceedings
In 2008, Barclays Bank PLC and Qatar Holdings LLC entered into two
advisory service agreements (the Agreements). The Financial Conduct
Authority (FCA) conducted an investigation into whether the
Agreements may have related to Barclays PLC’s capital
raisings in June and November 2008 (the Capital Raisings) and
therefore should have been disclosed in the announcements or public
documents relating to the Capital Raisings. In 2013, the FCA issued
warning notices (the Warning Notices) finding that Barclays PLC and
Barclays Bank PLC acted recklessly and in breach of certain
disclosure-related listing rules, and that Barclays PLC was also in
breach of Listing Principle 3. The financial penalty provided in
the Warning Notices was £50m. Barclays PLC and Barclays Bank
PLC contested the findings. In September 2022, the FCA’s
Regulatory Decisions Committee (RDC) issued Decision Notices
finding that Barclays PLC and Barclays Bank PLC breached certain
disclosure-related listing rules. The RDC also found that in
relation to the disclosures made in the Capital Raising of November
2008, Barclays PLC and Barclays Bank PLC acted recklessly, and that
Barclays PLC breached Listing Principle 3. The RDC upheld the
combined penalty of £50m on Barclays PLC and Barclays Bank
PLC, the same penalty as in the Warning Notices. Barclays PLC and
Barclays Bank PLC have referred the RDC’s findings to the
Upper Tribunal for reconsideration.
Investigations into LIBOR and other benchmarks and related civil
actions
Regulators and law enforcement agencies, including certain
competition authorities, from a number of governments have
conducted investigations relating to Barclays Bank PLC’s
involvement in allegedly manipulating certain financial benchmarks,
such as LIBOR. Various individuals and corporates in a range of
jurisdictions have threatened or brought civil actions against the
Group and other banks in relation to the alleged manipulation of
LIBOR and/or other benchmarks.
USD LIBOR civil actions
The majority of the USD LIBOR cases, which have been filed in
various US jurisdictions, have been consolidated for pre-trial
purposes in the US District Court in the Southern District of New
York (SDNY). The complaints are substantially similar and allege,
among other things, that Barclays PLC, Barclays Bank PLC, Barclays
Capital Inc. (BCI) and other financial institutions individually
and collectively violated provisions of the US Sherman Antitrust
Act (Antitrust Act), the US Commodity Exchange Act (CEA), the US
Racketeer Influenced and Corrupt Organizations Act (RICO), the US
Securities Exchange Act of 1934 and various state laws by
manipulating USD LIBOR rates.
Putative class actions and individual actions seek unspecified
damages with the exception of one lawsuit, in which the plaintiffs
are seeking no less than $100m in actual damages and additional
punitive damages against all defendants, including Barclays Bank
PLC. Some of the lawsuits also seek trebling of damages under the
Antitrust Act and RICO. Barclays Bank PLC has previously settled
certain claims. The financial impact of these settlements is not
material to the Group’s operating results, cash flows or
financial position.
Sterling LIBOR civil actions
In 2016, two putative class actions filed in the SDNY against
Barclays Bank PLC, BCI and other Sterling LIBOR panel banks
alleging, among other things, that the defendants manipulated the
Sterling LIBOR rate in violation of the Antitrust Act, CEA and
RICO, were consolidated. The defendants’ motion to dismiss
the claims was granted in 2018. The plaintiffs have appealed the
dismissal.
Japanese Yen LIBOR civil actions
In 2012, a putative class action was filed in the SDNY against
Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a
lead plaintiff involved in exchange-traded derivatives and members
of the Japanese Bankers Association’s Euroyen Tokyo Interbank
Offered Rate (Euroyen TIBOR) panel. The complaint alleges, among
other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates
and breaches of the CEA and the Antitrust Act. In 2014, the court
dismissed the plaintiff’s antitrust claims, and, in 2020, the
court dismissed the plaintiff’s remaining CEA
claims.
In 2015, a second putative class action, making similar allegations
to the above class action, was filed in the SDNY against Barclays
PLC, Barclays Bank PLC and BCI. Barclays and the plaintiffs reached
a settlement of $17.75m for both actions, which received final
court approval in March 2023. This matter is now
concluded.
ICE LIBOR civil action
In August 2020, an action related to the LIBOR benchmark
administered by the Intercontinental Exchange Inc. and certain of
its affiliates (ICE) was filed by a group of individual plaintiffs
in the US District Court for the Northern District of California on
behalf of individual borrowers and consumers of loans and credit
cards with variable interest rates linked to USD ICE LIBOR. The
plaintiffs’ motion seeking, among other things, preliminary
and permanent injunctions to enjoin the defendants from continuing
to set LIBOR or enforce any financial instrument that relies in
whole or in part on USD LIBOR was denied. The defendants’
motion to dismiss the case was granted in September 2022. The
plaintiffs have filed an amended complaint, which the defendants
have moved to dismiss.
Non-US benchmarks civil actions
There remains one claim, issued in 2017, against Barclays Bank PLC
and other banks in the UK in connection with alleged manipulation
of LIBOR. Proceedings have also been brought in a number of other
jurisdictions in Europe, Argentina and Israel relating to alleged
manipulation of LIBOR and EURIBOR. Additional proceedings in other
jurisdictions may be brought in the future.
Credit Default Swap civil action
A putative antitrust class action is pending in New Mexico federal
court against Barclays Bank PLC, BCI and various other financial
institutions. The plaintiffs, the New Mexico State Investment
Council and certain New Mexico pension funds, allege that the
defendants conspired to manipulate the benchmark price used to
value Credit Default Swap (CDS) contracts at settlement (i.e. the
CDS final auction price). The plaintiffs allege violations of US
antitrust laws and the CEA, and unjust enrichment under state law.
The defendants’ motion to dismiss was denied in June
2023.
Foreign Exchange investigations and related civil
actions
The Group has been the subject of investigations in various
jurisdictions in relation to certain sales and trading practices in
the Foreign Exchange market. Settlements were reached in various
jurisdictions in connection with these investigations, including
the EU and US. The financial impact of any remaining ongoing
investigations is not expected to be material to the Group’s
operating results, cash flows or financial position. Various
individuals and corporates in a range of jurisdictions have
threatened or brought civil actions against the Group and other
banks in relation to alleged manipulation of Foreign Exchange
markets.
US FX opt out civil action
In 2018, Barclays Bank PLC and BCI settled a consolidated action
filed in the SDNY, alleging manipulation of Foreign Exchange
markets (Consolidated FX Action), for a total amount of $384m. Also
in 2018, a group of plaintiffs, who opted out of the Consolidated
FX Action, filed a complaint in the SDNY against Barclays PLC,
Barclays Bank PLC, BCI and other defendants. Some of the
plaintiffs’ claims were dismissed in 2020. Barclays PLC,
Barclays Bank PLC, and BCI have reached a settlement of all claims
against them in the matter. A settlement payment was made in April
2023 and the matter is now concluded. The financial impact of this
settlement is not material to the Group’s operating results,
cash flows or financial position.
US retail basis civil action
In 2015, a putative class action was filed against several
international banks, including Barclays PLC and BCI, on behalf of a
proposed class of individuals who exchanged currencies on a retail
basis at bank branches (Retail Basis Claims). The SDNY has ruled
that the Retail Basis Claims are not covered by the settlement
agreement in the Consolidated FX Action. The Court subsequently
dismissed all Retail Basis Claims against the Group and all other
defendants. The plaintiffs filed an amended complaint. The
defendants’ motion for summary judgment was granted in March
2023, dismissing the plaintiffs’ remaining claims. The
plaintiffs are appealing the decision.
Non-US FX civil actions
Legal proceedings have been brought or are threatened against
Barclays PLC, Barclays Bank PLC, BCI and Barclays Execution
Services Limited (BX) in connection with alleged manipulation of
Foreign Exchange in the UK, a number of other jurisdictions in
Europe, Israel, Brazil and Australia. Additional proceedings may be
brought in the future.
The above-mentioned proceedings include two purported class actions
filed against Barclays PLC, Barclays Bank PLC, BX, BCI and other
financial institutions in the UK Competition Appeal Tribunal (CAT)
in 2019. The CAT refused to certify these claims in the first
quarter of 2022. In July 2023, the Court of Appeal overturned the
CAT’s decision and found that the claims should be certified
on an opt out basis. The Court of Appeal upheld the CAT’s
determination as to which of the two purported class
representatives should be chosen to bring the claim. Subject to any
further appeal, only the claim brought by the chosen class
representative will now proceed in the CAT. Also in 2019, a
separate claim was filed in the UK in the High Court of Justice
(High Court), and subsequently transferred to the CAT, by various
banks and asset management firms against Barclays Bank PLC and
other financial institutions alleging breaches of European and UK
competition laws related to FX trading. This claim has been settled
as part of the settlement payment referred to under the US FX opt
out civil action above and the matter is now
concluded.
Metals-related civil actions
A US civil complaint alleging manipulation of the price of silver
in violation of the CEA, the Antitrust Act and state antitrust and
consumer protection laws was brought by a proposed class of
plaintiffs against a number of banks, including Barclays Bank PLC,
BCI and BX, and transferred to the SDNY. The complaint was
dismissed against these Barclays entities and certain other
defendants in 2018, and against the remaining defendants in May
2023. The plaintiffs have appealed the dismissal of the complaint
against all defendants.
Civil actions have also been filed in Canadian courts against
Barclays PLC, Barclays Bank PLC, Barclays Capital Canada Inc. and
BCI on behalf of proposed classes of plaintiffs alleging
manipulation of gold and silver prices.
US residential mortgage related civil actions
There are two US Residential Mortgage-Backed Securities (RMBS)
related civil actions arising from unresolved repurchase requests
submitted by Trustees for certain RMBS, alleging breaches of
various loan-level representations and warranties (R&Ws) made
by Barclays Bank PLC and/or a subsidiary acquired in 2007. In one
action, the parties have agreed to settle the litigation. The
financial impact of the settlement is not material to the
Group’s operating results, cash flows or financial position.
The other repurchase action is pending.
Government and agency securities civil actions
Treasury auction securities civil actions
Consolidated putative class action complaints filed in US federal
court against Barclays Bank PLC, BCI and other financial
institutions under the Antitrust Act and state common law allege
that the defendants (i) conspired to manipulate the US Treasury
securities market and/or (ii) conspired to prevent the creation of
certain platforms by boycotting or threatening to boycott such
trading platforms. The court dismissed the consolidated action in
March 2021. The plaintiffs filed an amended complaint. The
defendants’ motion to dismiss the amended complaint was
granted in March 2022. The plaintiffs are appealing this
decision.
In addition, certain plaintiffs have filed a related, direct action
against BCI and certain other financial institutions, alleging that
defendants conspired to fix and manipulate the US Treasury
securities market in violation of the Antitrust Act, the CEA and
state common law. This action remains stayed.
Supranational, Sovereign and Agency bonds civil
actions
Civil antitrust actions have been filed in the SDNY and Federal
Court of Canada in Toronto against Barclays Bank PLC, BCI, BX,
Barclays Capital Securities Limited and, with respect to the civil
action filed in Canada only, Barclays Capital Canada, Inc. and
other financial institutions alleging that the defendants conspired
to fix prices and restrain competition in the market for US
dollar-denominated Supranational, Sovereign and Agency bonds. The
SDNY actions were dismissed and these matters are now
concluded.
In the Federal Court of Canada action, the parties have reached a
settlement in principle, which will require court approval. The
financial impact of the settlement is not expected to be material
to the Group’s operating results, cash flows or financial
position.
Variable Rate Demand Obligations civil actions
Civil actions have been filed against Barclays Bank PLC and BCI and
other financial institutions alleging the defendants conspired or
colluded to artificially inflate interest rates set for Variable
Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with
interest rates that reset on a periodic basis, most commonly
weekly. Two actions in state court have been filed by private
plaintiffs on behalf of the states of Illinois and California.
Three putative class action complaints have been consolidated in
the SDNY. In the consolidated SDNY class action, certain of the
plaintiffs’ claims were dismissed in November 2020 and June
2022 and the plaintiffs’ motion for class certification is
pending. In the California action, the California appeals court
reversed the dismissal of the plaintiffs’ claims in April
2023. In the Illinois action, the defendants have reached a
settlement in principle with the Attorney General for the State of
Illinois to resolve the litigation, which is subject to approval by
the court. The financial impact of the settlement is not material
to the Group’s operating results, cash flows or financial
position.
Odd-lot corporate bonds antitrust class action
In 2020, BCI, together with other financial institutions, were
named as defendants in a putative class action. The complaint
alleges a conspiracy to boycott developing electronic trading
platforms for odd-lots and price fixing. The plaintiffs demand
unspecified money damages. The defendants’ motion to dismiss
was granted in 2021 and the plaintiffs have appealed the
dismissal.
Interest rate swap and credit default swap US civil
actions
Barclays PLC, Barclays Bank PLC and BCI, together with other
financial institutions that act as market makers for interest rate
swaps (IRS), are named as defendants in several antitrust class
actions which were consolidated in the SDNY in 2016. The complaints
allege the defendants conspired to prevent the development of
exchanges for IRS and demand unspecified money
damages.
In 2018, trueEX LLC filed an antitrust class action in the SDNY
against a number of financial institutions including Barclays PLC,
Barclays Bank PLC and BCI based on similar allegations with respect
to trueEX LLC’s development of an IRS platform. In 2017, Tera
Group Inc. filed a separate civil antitrust action in the SDNY
claiming that certain conduct alleged in the IRS cases also caused
the plaintiff to suffer harm with respect to the Credit Default
Swaps market. In 2018 and 2019, respectively, the court dismissed
certain claims in both cases for unjust enrichment and tortious
interference but denied motions to dismiss the federal and state
antitrust claims, which remain pending.
BDC Finance L.L.C.
In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the Supreme
Court of the State of New York (NY Supreme Court), demanding
damages of $298m, alleging that Barclays Bank PLC had breached a
contract in connection with a portfolio of total return swaps
governed by an ISDA Master Agreement (the Master Agreement).
Following a trial, the court ruled in 2018 that Barclays Bank PLC
was not a defaulting party, which was affirmed on appeal. In April
2021, the trial court entered judgement in favour of Barclays Bank
PLC for $3.3m and as yet to be determined legal fees and costs. BDC
appealed. In January 2022, the appellate court reversed the trial
court’s summary judgment decision in favour of Barclays Bank
PLC and remanded the case to the lower court for further
proceedings. The parties have filed cross-motions on the scope of
trial. The trial has been adjourned pending a decision on the
motions and any subsequent appeal.
In 2011, BDC’s investment advisor, BDCM Fund Adviser, LLC and
its parent company, Black Diamond Capital Holdings, LLC, also sued
Barclays Bank PLC and BCI in Connecticut State Court for
unspecified damages allegedly resulting from Barclays Bank
PLC’s conduct relating to the Master Agreement, asserting
claims for violation of the Connecticut Unfair Trade Practices Act
and tortious interference with business and prospective business
relations.
This case is currently stayed.
Civil actions in respect of the US Anti-Terrorism Act
There are a number of civil actions, on behalf of more than 4,000
plaintiffs, filed in US federal courts in the US District Court in
the Eastern District of New York (EDNY) and SDNY against Barclays
Bank PLC and a number of other banks. The complaints generally
allege that Barclays Bank PLC and those banks engaged in a
conspiracy to facilitate US dollar-denominated transactions for the
Iranian Government and various Iranian banks, which in turn funded
acts of terrorism that injured or killed the plaintiffs or the
plaintiffs’ family members. The plaintiffs seek to recover
damages for pain, suffering and mental anguish under the provisions
of the US Anti-Terrorism Act, which allow for the trebling of any
proven damages.
The court granted the defendants’ motions to dismiss three
out of the six actions in the EDNY. The plaintiffs appealed in one
action and the dismissal was affirmed, and judgment was entered, in
January 2023. The court later gave the plaintiffs until December
2023 to make a motion to vacate the judgment. The plaintiffs have
also petitioned for US Supreme Court review. In the other two
dismissed actions in the EDNY, the court gave plaintiffs until
September 2023 to serve amended complaints. This was also the case
for the fourth action in the EDNY. Those actions, as well as the
two other actions in the EDNY, are currently stayed. Out of the two
actions in the SDNY, the court granted the defendants’ motion
to dismiss the first action. That action is stayed, and the second
SDNY action is stayed pending any appeal on the dismissal of the
first.
Shareholder derivative action
In November 2020, a purported Barclays shareholder filed a putative
derivative action in New York state court against BCI and a number
of current and former members of the Board of Directors of Barclays
PLC and senior executives or employees of the Group. The
shareholder filed the claim on behalf of nominal defendant Barclays
PLC, alleging that the individual defendants harmed the company
through breaches of their duties, including under the Companies Act
2006. The plaintiff seeks damages on behalf of Barclays PLC for the
losses that Barclays PLC allegedly suffered as a result of these
alleged breaches. An amended complaint was filed in April 2021,
which BCI and certain other defendants moved to dismiss. The motion
to dismiss was granted in April 2022. The plaintiff appealed the
decision, and the dismissal was unanimously affirmed in June 2023
by the First Judicial Department in New York. The plaintiff has
sought leave to appeal the First Judicial Department’s
decision to the New York Court of Appeals.
Derivative transactions civil action
In 2021, Vestia, a Dutch housing association, brought a claim
against Barclays Bank PLC in the UK in the High Court in relation
to a series of derivative transactions entered into with Barclays
Bank PLC between 2008 and 2011, seeking damages of £329m.
Barclays Bank PLC is defending the claim and has made a
counterclaim.
Skilled person review in relation to historic timeshare loans and
associated matters
Clydesdale Financial Services Limited (CFS), which trades as
Barclays Partner Finance and houses Barclays’ point-of-sale
finance business, was required by the FCA to undertake a skilled
person review in 2020 following concerns about historic
affordability assessments for certain loans to customers in
connection with timeshare purchases. The skilled person review was
concluded in 2021. CFS complied fully with the skilled person
review requirements, including carrying out certain remediation
measures. CFS was not required to conduct a full back book review.
Instead, CFS reviewed limited historic lending to ascertain whether
its practices caused customer harm and is remediating any examples
of harm. This work is expected to be substantially completed during
2023, utilising provisions booked to account for any
remediations.
Over-issuance of securities in the US
In March 2022, executive management became aware that Barclays Bank
PLC had issued securities materially in excess of the set amount
under its US shelf registration statements. As a result, Barclays
Bank PLC commenced a rescission offer on 1 August 2022, by which
Barclays Bank PLC offered to repurchase relevant affected
securities from certain holders, which expired on 12 September
2022. Further, in September 2022, the SEC announced the resolution
of its investigation of Barclays PLC and Barclays Bank PLC relating
to such over-issuance of securities. The Group has engaged with,
and responded to inquiries and requests for information from,
various other regulators who may seek to impose fines, penalties
and/or other sanctions as a result of this matter.
Furthermore, Barclays Bank PLC and/or its affiliates may incur
costs and liabilities in relation to private civil claims which
have been filed and may face other potential private civil claims,
class actions or other enforcement actions in relation to the
over-issuance of securities. By way of example, in September 2022,
a purported class action claim was filed in the US District Court
in Manhattan seeking to hold Barclays PLC, Barclays Bank PLC and
former and current executives responsible for declines in the
prices of Barclays PLC’s American depositary receipts, which
the plaintiffs claim occurred as a result of alleged misstatements
and omissions in its public disclosures. The defendants have moved
to dismiss the case. In addition, holders of a series of ETNs have
brought claims against Barclays PLC, Barclays Bank PLC, and former
and current executives and board members in the US alleging, among
other things, that Barclays’ failure to disclose that these
ETNs were unregistered securities misled investors and that, as a
result, Barclays is liable for the holders’ alleged losses
following the suspension of further sales and issuances of such
series of ETNs. Two such actions are purported class actions that
the plaintiffs have moved to consolidate into a single action in
federal court in New York.
A contingent liability exists in relation to civil claims or any
further enforcement actions taken against Barclays Bank PLC and/or
its affiliates, but Barclays Bank PLC is unable to assess the
likelihood of liabilities that may arise out of such claims or
actions.
Any liabilities, claims or actions in connection with the
over-issuance of securities under Barclays Bank PLC’s US
shelf registration statements could have an adverse effect on the
Group’s business, financial condition, results of operations
and reputation as a frequent issuer in the securities
markets.
2.
Barclays PLC, Barclays Bank PLC and Barclays Bank UK
PLC
HM Revenue & Customs (HMRC) assessments concerning UK Value
Added Tax
In 2018, HMRC issued notices that have the effect of removing
certain overseas subsidiaries that have operations in the UK from
Barclays’ UK VAT group, in which group supplies between
members are generally free from VAT. The notices have retrospective
effect and correspond to assessments of £181m (inclusive of
interest), of which Barclays would expect to attribute an amount of
approximately £128m to Barclays Bank UK PLC and £53m to
Barclays Bank PLC. HMRC’s decision has been appealed to the
First Tier Tribunal (Tax Chamber).
FCA investigation into transaction monitoring
The FCA has been investigating Barclays’ compliance with UK
money laundering regulations and the FCA’s rules and
Principles for Businesses in an investigation which is focussed on
aspects of Barclays’ transaction monitoring in relation to
certain business lines now in Barclays Bank UK PLC. Barclays has
been co-operating with the investigation and responding to
information requests.
Alternative trading systems
In 2020, a claim was brought against Barclays PLC in the UK in the
High Court by various shareholders regarding Barclays PLC’s
share price based on the allegations contained within a complaint
by the New York State Attorney General (NYAG) in 2014. Such claim
was settled in 2016, as previously disclosed. The more recent claim
seeks unquantified damages and Barclays is defending the claim. The
NYAG complaint was filed against Barclays PLC and BCI in the NY
Supreme Court alleging, among other things, that Barclays PLC and
BCI engaged in fraud and deceptive practices in connection with LX,
BCI’s SEC-registered alternative trading system.
General
The Group is engaged in various other legal, competition and
regulatory matters in the UK, the US and a number of other overseas
jurisdictions. It is subject to legal proceedings brought by and
against the Group which arise in the ordinary course of business
from time to time, including (but not limited to) disputes in
relation to contracts, securities, debt collection, consumer
credit, fraud, trusts, client assets, competition, data management
and protection, intellectual property, money laundering, financial
crime, employment, environmental and other statutory and common law
issues.
The Group is also subject to enquiries and examinations, requests
for information, audits, investigations and legal and other
proceedings by regulators, governmental and other public bodies in
connection with (but not limited to) consumer protection measures,
compliance with legislation and regulation, wholesale trading
activity and other areas of banking and business activities in
which the Group is or has been engaged. The Group is cooperating
with the relevant authorities and keeping all relevant agencies
briefed as appropriate in relation to these matters and others
described in this note on an ongoing basis.
At the present time, Barclays PLC does not expect the ultimate
resolution of any of these other matters to have a material adverse
effect on the Group’s financial position. However, in light
of the uncertainties involved in such matters and the matters
specifically described in this note, there can be no assurance that
the outcome of a particular matter or matters (including
formerly active matters or those matters arising after the date of
this note) will not be material to Barclays PLC’s results,
operations or cash flows for a particular period, depending on,
among other things, the amount of the loss resulting from the
matter(s) and the amount of profit otherwise reported for the
reporting period.
17.
Related party transactions
Related party transactions in the half year ended 30 June 2023 were
similar in nature to those disclosed in the Barclays PLC Annual
Report 2022. No related party transactions that have taken place in
the half year ended 30 June 2023 have materially affected the
financial position or the performance of the Group during this
period.
On 1 May 2023, the Wealth Management & Investments business was
transferred from Barclays UK to CC&P, please see Other matters
on page 7 for more information.
18.
Interest rate benchmark reform
Following the financial crisis, the reform and replacement of
benchmark interest rates such as LIBOR became a priority for global
regulators. The FCA and other global regulators instructed market
participants to prepare for the cessation of most LIBOR rates after
the end of 2021, and to adopt “Risk Free Rates”
(RFRs).
Barclays established a Group-wide LIBOR Transition Programme, which
aims to drive strategic execution and identify, manage and resolve
keys risks and issues as they arise.
Whilst EUR and CHF LIBOR ceased to be published after 31 December
2021, a synthetic version of GBP and JPY LIBOR was made available
for certain tenors for a limited period of time to mitigate the
risk of widespread disruption to legacy contracts which had not
transitioned by end-2021.
●
|
Synthetic JPY LIBOR tenors ceased permanently at the end of 2022 in
line with an announcement made by the FCA on 29 September
2022.
|
●
|
1- and 6-month synthetic GBP LIBOR tenors ceased permanently after
31 March 2023 in line with the announcement made by the FCA on 29
September 2022.
|
●
|
3-month synthetic GBP LIBOR remains available until 31 March 2024
as per an announcement made by the FCA on 23 November
2022.
|
In addition, GBP LIBOR ICE Swap Rate and JPY LIBOR Tokyo Swap Rate
ceased to be published at the end of 2021.
All of the Group’s exposure to JPY LIBOR and JPY LIBOR Tokyo
Swap Rate and to 1- and 6-month GBP LIBOR have now been remediated
with only residual exposure remaining to 3-month synthetic GBP
LIBOR and GBP LIBOR ICE Swap Rate.
For USD LIBOR, certain actively used tenors continued to be
published after 2021. However, in line with the US banking
regulators’ joint statement, the Group ceased issuing or
entering into new contracts that use USD LIBOR as a reference rate
from 31 December 2021, other than in relation to those allowable
use cases set out under the FCA’s prohibition notice (ref
21A). The overnight and 12-month USD LIBOR tenors ceased to be
published after 30 June 2023, with synthetic versions of the 1-, 3-
and 6-month USD LIBOR tenors made available for a limited period of
time until 30 September 2024. The synthetic versions are for use in
legacy contracts only, to help ensure an orderly wind-down of USD
LIBOR, as outlined in a statement made by the FCA on 3 April
2023.
In addition, the USD LIBOR ICE Swap Rate ceased to be published at
the end of June 2023.
During H123, the Barclays Group-wide LIBOR Transition Programme
focused on the remediation of its exposure to the benchmarks which
ceased at the end of June 2023. The majority of the Group’s
exposure to those rates is now considered remediated contractually
via central clearing counterparties (CCP) led conversions for
cleared derivatives and actively negotiated conversion or insertion
of fallbacks to RFRs for other products. In addition to this,
whilst active transition and fallback insertion were attempted in
most cases, there were also exposures under certain US law governed
contracts which were transitioned pursuant to the US Federal
Legislation (the Adjustable Interest Rate (LIBOR) Act) at the end
of June 2023.
The Group continues to (i) identify, manage and mitigate key risks
and issues as they arise, (ii) work with clients and counterparties
to remediate any trades which remain on synthetic LIBOR or on the
GBP or USD LIBOR ICE Swap Rate and (iii) remain on track to meet
the associated industry deadlines.
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.
Appendix: Non-IFRS Performance Measures
Non-IFRS performance measures glossary
Measure
|
Definition
|
Loan: deposit ratio
|
Total
loans and advances at amortised cost divided by total deposits at
amortised cost. The components of the calculation have been
included on the page 51.
|
Period end allocated tangible equity
|
Allocated
tangible equity is calculated as 13.5% (2022: 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
90 to 92.
|
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
90 to 93.
|
Operating expenses excluding litigation and conduct
|
A measure of total operating expenses excluding litigation and
conduct charges.
|
Operating costs
|
A measure of total operating expenses excluding litigation and
conduct charges and UK bank levy.
|
Cost: income ratio
|
Total operating expenses divided by total income.
|
Loan loss rate
|
Quoted
in basis points and represents total impairment charges divided by
total gross loans and advances held at amortised cost at the
balance sheet date. The components of the calculation have been
included on page 26.
|
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
24.
|
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
94.
|
Performance measures excluding the impact of the Over-issuance of
Securities
|
Calculated
by excluding the impact of the Over-issuance of Securities from
performance measures. The components of the calculations have been
included on page 94.
|
Profit before impairment
|
Calculated by excluding credit impairment charges or releases from
profit before tax.
|
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% (2022: 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
|
Half year ended 30.06.23
|
£m
|
|
£bn
|
|
%
|
Barclays UK
|
1,049
|
|
10.3
|
|
20.4
|
Corporate and Investment Bank
|
2,007
|
|
31.8
|
|
12.6
|
Consumer, Cards and Payments
|
294
|
|
5.3
|
|
11.1
|
Barclays International
|
2,301
|
|
37.1
|
|
12.4
|
Head Office
|
(239)
|
|
(0.2)
|
|
n/m
|
Barclays Group
|
3,111
|
|
47.2
|
|
13.2
|
|
|
|
|
|
|
Half year ended 30.06.22
|
|
|
|
|
|
Barclays UK
|
854
|
|
10.0
|
|
17.0
|
Corporate and Investment Bank
|
1,895
|
|
31.8
|
|
11.9
|
Consumer, Cards and Payments
|
188
|
|
4.4
|
|
8.5
|
Barclays International
|
2,083
|
|
36.2
|
|
11.5
|
Head Office
|
(462)
|
|
2.7
|
|
n/m
|
Barclays Group
|
2,475
|
|
48.9
|
|
10.1
|
|
Half year ended 30.06.23
|
|
Barclays UK
|
Corporate and
Investment
Bank
|
Consumer,
Cards and Payments
|
Barclays
International
|
Head Office
|
Barclays
Group
|
Return on average tangible shareholders' equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable profit/(loss)
|
1,049
|
2,007
|
294
|
2,301
|
(239)
|
3,111
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
14.0
|
31.8
|
6.2
|
38.0
|
3.6
|
55.6
|
Average goodwill and intangibles
|
(3.7)
|
—
|
(0.9)
|
(0.9)
|
(3.8)
|
(8.4)
|
Average tangible shareholders' equity
|
10.3
|
31.8
|
5.3
|
37.1
|
(0.2)
|
47.2
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
20.4%
|
12.6%
|
11.1%
|
12.4%
|
n/m
|
13.2%
|
|
Half year ended 30.06.22
|
|
Barclays UK
|
Corporate and
Investment
Bank
|
Consumer,
Cards and Payments
|
Barclays
International
|
Head Office
|
Barclays
Group
|
Return on average tangible shareholders' equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable profit/(loss)
|
854
|
1,895
|
188
|
2,083
|
(462)
|
2,475
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
13.6
|
31.8
|
5.3
|
37.1
|
6.3
|
57.0
|
Average goodwill and intangibles
|
(3.6)
|
—
|
(0.9)
|
(0.9)
|
(3.6)
|
(8.1)
|
Average tangible shareholders' equity
|
10.0
|
31.8
|
4.4
|
36.2
|
2.7
|
48.9
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
17.0%
|
11.9%
|
8.5%
|
11.5%
|
n/m
|
10.1%
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
1,079
|
1,374
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average shareholders' equity
|
55.4
|
55.9
|
|
54.9
|
56.8
|
57.1
|
56.9
|
|
56.1
|
56.5
|
Average goodwill and intangibles
|
(8.7)
|
(8.3)
|
|
(8.2)
|
(8.2)
|
(8.1)
|
(8.1)
|
|
(8.1)
|
(8.2)
|
Average tangible shareholders' equity
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
|
48.0
|
48.3
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
11.4%
|
15.0%
|
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
|
9.0%
|
11.4%
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit
|
534
|
515
|
|
474
|
549
|
458
|
396
|
|
420
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
14.2
|
13.9
|
|
13.7
|
13.5
|
13.6
|
13.7
|
|
13.6
|
13.6
|
Average goodwill and intangibles
|
(4.0)
|
(3.6)
|
|
(3.5)
|
(3.6)
|
(3.6)
|
(3.6)
|
|
(3.6)
|
(3.6)
|
Average allocated tangible equity
|
10.2
|
10.3
|
|
10.2
|
9.9
|
10.0
|
10.1
|
|
10.0
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
20.9%
|
20.0%
|
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
|
16.8%
|
12.7%
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit
|
953
|
1,348
|
|
625
|
1,136
|
783
|
1,300
|
|
818
|
1,191
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
38.0
|
38.1
|
|
39.9
|
40.1
|
38.2
|
36.0
|
|
33.8
|
32.7
|
Average goodwill and intangibles
|
(0.9)
|
(1.0)
|
|
(1.0)
|
(1.0)
|
(0.9)
|
(0.9)
|
|
(0.9)
|
(0.9)
|
Average allocated tangible equity
|
37.1
|
37.1
|
|
38.9
|
39.1
|
37.3
|
35.1
|
|
32.9
|
31.8
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.3%
|
14.5%
|
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
|
9.9%
|
14.9%
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit
|
798
|
1,209
|
|
454
|
1,015
|
579
|
1,316
|
|
695
|
1,085
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
|
28.7
|
27.8
|
Average goodwill and intangibles
|
—
|
—
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
Average allocated tangible equity
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
|
28.7
|
27.8
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.0%
|
15.2%
|
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
|
9.7%
|
15.6%
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit/(loss)
|
155
|
139
|
|
171
|
121
|
204
|
(16)
|
|
123
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
6.2
|
6.3
|
|
6.2
|
6.1
|
5.5
|
5.2
|
|
5.1
|
4.9
|
Average goodwill and intangibles
|
(0.9)
|
(1.0)
|
|
(1.0)
|
(1.0)
|
(0.9)
|
(0.9)
|
|
(0.9)
|
(0.9)
|
Average allocated tangible equity
|
5.3
|
5.3
|
|
5.2
|
5.1
|
4.6
|
4.3
|
|
4.2
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
11.8%
|
10.5%
|
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
|
11.7%
|
10.5%
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
Tangible net asset value per share
|
As at 30.06.23
|
As at 31.12.22
|
As at 30.06.22
|
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests
|
67,669
|
68,292
|
69,627
|
Other equity instruments
|
(13,759)
|
(13,284)
|
(12,357)
|
Goodwill and intangibles
|
(8,607)
|
(8,239)
|
(8,245)
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
45,303
|
46,769
|
49,025
|
|
|
|
|
|
m
|
m
|
m
|
Shares in issue
|
15,556
|
15,871
|
16,531
|
|
|
|
|
|
p
|
p
|
p
|
Tangible net asset value per share
|
291
|
295
|
297
|
Performance measures excluding the impact of the Over-issuance of
Securities
|
|
Barclays Group
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Statutory attributable profit
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
1,079
|
1,374
|
Net impact of the Over-issuance of Securities
|
—
|
—
|
|
—
|
29
|
(341)
|
(240)
|
|
(38)
|
(72)
|
Attributable profit excluding the impact of the Over-issuance of
Securities
|
1,328
|
1,783
|
|
1,036
|
1,483
|
1,412
|
1,644
|
|
1,117
|
1,446
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible shareholders' equity (£bn)
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
|
48.0
|
48.3
|
Return on average tangible shareholders' equity excluding the
impact of the Over-issuance of Securities
|
11.4%
|
15.0%
|
|
8.9%
|
12.2%
|
11.5%
|
13.5%
|
|
9.3%
|
12.0%
|
1
|
The comparative capital and financial metrics relating to Q321 and
Q421 have been restated to reflect the impact of the Over-issuance
of Securities.
|
Notable Items
|
|
|
|
|
Half year ended 30.06.23
|
Half year ended 30.06.22
|
£m
|
Profit before tax
|
Attributable profit
|
Profit before tax
|
Attributable profit
|
Statutory
|
4,562
|
3,111
|
3,733
|
2,475
|
Net impact from the Over-issuance of Securities
|
—
|
—
|
(711)
|
(581)
|
Customer remediation costs on legacy loan portfolio
|
—
|
—
|
(181)
|
(147)
|
Settlements in principle in respect of industry-wide
devices investigations by SEC and CFTC
|
—
|
—
|
(165)
|
(165)
|
Other litigation and conduct
|
(32)
|
(21)
|
(42)
|
(37)
|
Re-measurement of UK DTAs
|
—
|
—
|
—
|
(346)
|
Excluding the impact of notable items
|
4,594
|
3,132
|
4,832
|
3,751
|
|
|
|
|
|
|
Three months ended 30.06.23
|
Three months ended 30.06.22
|
£m
|
Profit before tax
|
Attributable profit
|
Profit before tax
|
Attributable profit
|
Statutory
|
1,964
|
1,328
|
1,499
|
1,071
|
Net impact from the Over-issuance of Securities
|
—
|
—
|
(391)
|
(341)
|
Settlements in principle in respect of industry-wide
devices investigations by SEC and CFTC
|
—
|
—
|
(165)
|
(165)
|
Other litigation and conduct
|
(33)
|
(24)
|
(20)
|
(18)
|
Excluding the impact of notable items
|
1,997
|
1,352
|
2,075
|
1,595
|
The Group’s management believes that the non-IFRS
performance measures excluding notable items, included in the table
above, provide valuable information to enable users of the
financial statements to assess the performance of the Group. The
notable items are separately identified within the Group’s
results disclosures which, when excluded from Barclays’
statutory financials, provide an underlying profit and loss
performance of the Group and enables consistent comparison of
performance from one period to another.
These
non-IFRS performance measures excluding notable items are included
as a reference point only and are not incorporated within any of
the key financial metrics used in our Group Targets, which are measured on a
statutory basis.
Shareholder Information
|
|
|
|
|
|
|
Results timetable1
|
|
|
Date
|
|
|
|
Ex-dividend date
|
|
|
10 August 2023
|
Dividend record date
|
|
|
11 August 2023
|
Cut off time of 5:00pm (UK time) for the receipt of Dividend
Re-investment Programme (DRIP) Application Form
Mandate
|
|
25 August 2023
|
Dividend payment date
|
|
|
15 September 2023
|
Q3 2023 Results Announcement
|
|
|
24 October 2023
|
|
|
|
|
|
|
|
For qualifying US and Canadian resident ADR holders, the half year
dividend of 2.7p per ordinary share becomes 10.8p per ADS
(representing four shares). The ex-dividend, dividend record and
dividend payment dates for ADR holders are as shown
above.
DRIP participants will usually receive their additional ordinary
shares (in lieu of a cash dividend) three to four days after the
dividend payment date.
|
Barclays PLC ordinary shares ISIN code: GB0031348658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change3
|
Exchange rates2
|
30.06.23
|
31.12.22
|
30.06.22
|
|
31.12.22
|
30.06.22
|
Period end - USD/GBP
|
1.27
|
1.21
|
1.22
|
|
5%
|
4%
|
6 month average - USD/GBP
|
1.23
|
1.18
|
1.30
|
|
4%
|
(5)%
|
3 month average - USD/GBP
|
1.25
|
1.17
|
1.26
|
|
7%
|
(1)%
|
Period end - EUR/GBP
|
1.16
|
1.13
|
1.16
|
|
3%
|
—
|
6 month average - EUR/GBP
|
1.14
|
1.16
|
1.19
|
|
(2)%
|
(4)%
|
3 month average - EUR/GBP
|
1.15
|
1.15
|
1.18
|
|
—
|
(3)%
|
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
|
|
Barclays PLC (p)
|
153.38
|
158.52
|
153.12
|
|
|
|
Barclays PLC number of shares (m)
|
15,556
|
15,871
|
16,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information please contact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor relations
|
Media relations
|
Adam Strachan +1 212 526 8442
|
Tom Hoskin +44 (0) 20 7116 4755
|
James Johnson +44 (0) 20 7116 7233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
shareowneronline.com
|
|
|
|
|
|
Toll Free Number: +1 800-990-1135
|
|
|
|
|
|
|
Outside the US +1 651-453-2128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivery of ADR certificates and overnight mail
|
|
|
|
|
|
|
EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101,
Mendota Heights, MN 55120-4100, USA.
|
1
|
Note that these dates are provisional and subject to
change.
|
2
|
The average rates shown above are derived from daily spot rates
during the year.
|
3
|
The change is the impact to GBP reported information.
|
4
|
Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding
UK public holidays in England and Wales.
|
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