TIDM96ES
RNS Number : 4690H
Barclays Bank PLC
01 August 2019
Barclays Bank PLC
Interim Results Announcement
30 June 2019
Table of Contents
Results Announcement Page
Notes 1
Financial Review 2-3
Risk Management
-- Risk Management and Principal Risks 4
-- Credit Risk 5-7
-- Market Risk 8
-- Treasury and Capital Risk 9-10
Statement of Directors' Responsibilities 11
Independent Review Report to Barclays Bank PLC 12
Condensed Consolidated Financial Statements 13-18
Financial Statement Notes 19-44
Other Information 45
BARCLAYS BANK PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED
KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 1026167.
Notes
The term Barclays Bank Group refers to Barclays Bank PLC
together with its subsidiaries. Unless otherwise stated, the income
statement analysis compares the six months ended 30 June 2019 to
the corresponding six months of 2018 and balance sheet analysis as
at 30 June 2019 with comparatives relating to 31 December 2018. The
abbreviations 'GBPm' and 'GBPbn' 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 'EURm' and 'EURbn'
represent millions and thousands of millions of Euros
respectively.
There are a number of key judgement areas, for example
impairment calculations, which are based on models and which are
subject to ongoing adjustment and modifications. Reported numbers
reflect best estimates and judgements at the given point in
time.
Relevant terms that are used in this document but are not
defined under applicable regulatory guidance or International
Financial Reporting Standards (IFRS) are explained in the results
glossary that can be accessed at
home.barclays/investor-relations/reports-and-events/latest-financial-results.
The information in this announcement, which was approved by the
Board of Directors on 31 July 2019, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2018, which
contained an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These results will be furnished as a Form 6-K to 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 Bank Group 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 Bank Group expects that from time to time over the coming
half year it will meet with investors globally to discuss these
results and other matters relating to the Barclays Bank Group.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Barclays Bank Group. Barclays Bank
Group cautions readers that no forward-looking statement is a
guarantee of future performance and that actual results or other
financial condition or performance measures could differ materially
from those contained in the forward-looking statements. These
forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts. Forward-looking
statements sometimes use words such as 'may', 'will', 'seek',
'continue', 'aim', 'anticipate', 'target', 'projected', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other
words of similar meaning. Examples of forward-looking statements
include, among others, statements or guidance regarding or relating
to the Barclays Bank Group's future financial position, income
growth, assets, impairment charges, provisions, business strategy,
capital, leverage and other regulatory ratios, payment of dividends
(including dividend payout ratios and expected payment strategies),
projected levels of growth in the banking and financial markets,
projected costs or savings, any commitments and targets, estimates
of capital expenditures, plans and objectives for future
operations, projected employee numbers, IFRS impacts and other
statements that are not historical fact. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. These may be
affected by changes in legislation, the development of standards
and interpretations under IFRS including evolving practices with
regard to the interpretation and application of accounting and
regulatory standards, the outcome of current and future legal
proceedings and regulatory investigations, future levels of conduct
provisions, the policies and actions of governmental and regulatory
authorities, geopolitical risks and the impact of competition. In
addition, factors including (but not limited to) the following may
have an effect: capital, leverage and other regulatory rules
applicable to past, current and future periods; UK, US, Eurozone
and global macroeconomic and business conditions; the effects of
any volatility in credit markets; market related risks such as
changes in interest rates and foreign exchange rates; effects of
changes in valuation of credit market exposures; changes in
valuation of issued securities; volatility in capital markets;
changes in credit ratings of any entities within the Barclays Bank
Group or any securities issued by such entities; the potential for
one or more countries exiting the Eurozone; instability as a result
of the exit by the UK from the European Union and the disruption
that may subsequently result in the UK and globally; and the
success of future acquisitions, disposals and other strategic
transactions. A number of these influences and factors are beyond
the Barclays Bank Group's control. As a result, the Barclays Bank
Group's actual future results, dividend payments, and capital and
leverage ratios may differ materially from the plans, goals,
expectations and guidance set forth in the Barclays Bank Group's
forward-looking statements. Additional risks and factors which may
impact the Barclays Bank Group's future financial condition and
performance are identified in our filings with the SEC (including,
without limitation, our Annual Report on Form 20-F for the fiscal
year ended 31 December 2018), which are available on the SEC's
website at www.sec.gov.
Subject to our obligations under the applicable laws and
regulations of the 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.
Financial Review
Barclays Bank Group results
for the half year ended 30.06.19 30.06.18
GBPm GBPm % Change
============================================ ======== ======== ========
Total income 7,122 7,253 (2)
Credit impairment charges and other
provisions (510) (156)
============================================ ======== ======== ========
Net operating income 6,612 7,097 (7)
Operating expenses (4,842) (4,757) (2)
Litigation and conduct (68) (1,627) 96
============================================ ======== ======== ========
Total operating expenses (4,910) (6,384) 23
Other net income 23 12 92
============================================ ======== ======== ========
Profit before tax 1,725 725
Tax charge(1) (260) (294) 12
============================================ ======== ======== ========
Profit after tax in respect of continuing
operations 1,465 431
Loss after tax in respect of discontinued
operations - (47)
Non-controlling interests in respect
of continuing operations -1
Other equity instrument holders (294) (310) 5
============================================ ======== ======== ========
Attributable profit 1,171 75
30.06.19 31.12.18
Balance sheet information GBPbn GBPbn
============================================ ======== ======== ========
Cash and balances at central banks 123.6 136.4
Loans and advances at amortised cost 144.7 137.0
Trading portfolio assets 120.0 104.0
Financial assets at fair value through
the income statement 156.2 145.3
Derivative financial instrument assets 244.4 222.7
Deposits at amortised cost 215.1 199.3
Financial liabilities designated
at fair value 229.9 217.7
Derivative financial instrument liabilities 243.0 219.6
30.06.19 31.12.18
Capital metric(2,3) %%
-------------------------------------------- -------- ------- --------
Common equity tier 1 (CET1) ratio 13.4 13.5
1 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to Additional Tier 1 (AT1) instruments has been recognised
in the tax charge of the income statement, whereas it was previously
recorded in retained earnings. Comparatives have been restated,
reducing the tax charge for H118 by GBP84m. Further detail can
be found in Note 1 Basis of preparation on pages 19 to 20.
2 Barclays Bank PLC is currently regulated by the Prudential Regulation
Authority (PRA) on a solo-consolidated basis. The disclosure above
provides a capital metric for Barclays Bank PLC solo-consolidated.
For further information, refer to treasury and capital risk on
page 10.
3 The CET1 ratio is calculated applying the transitional arrangement
of the Capital Requirements Regulation (CRR) as amended by the
Capital Requirements Regulation II (CRR II) applicable as at the
reporting date. This includes IFRS 9 transitional arrangements.
For further information on the implementation of CRR II see page
10.
Barclays Bank Group Overview
Barclays Bank PLC is the non-ring-fenced bank which forms part
of the Barclays Group and consists of Corporate and Investment Bank
(CIB), Consumer, Cards and Payments and Head Office.
In H119, Barclays Bank PLC's profit improved significantly
compared to H118 due to a non-recurrence of the settlement relating
to Residential Mortgage-Backed Securities (RMBS) with the US
Department of Justice (DoJ). CIB income reflected a decrease in
Markets and lower Banking fees, which was impacted by a decline in
the Banking fee pool across the industry(1) , compared to a strong
H118. Credit impairment charges normalised in the CIB. Operating
expenses, excluding litigation and conduct, increased driven by
Consumer, Cards and Payments including investment in US cards,
merchant acquiring and wealth. This was offset by lower
compensation accruals within CIB.
Group performance
-- Profit before tax increased 138% to GBP1,725m driven by lower losses
in Head Office of GBP330m (H118: GBP1,887m) due to a non-recurrence
of the settlement relating to RMBS with the DoJ. This was partially
offset by a GBP482m decrease in CIB to GBP1,453m and GBP75m decrease
in Consumer, Cards and Payments to GBP602m
-- The 7% appreciation of average USD against GBP positively impacted
profits and income, and adversely impacted credit impairment charges
and operating expenses
-- Total income decreased 2% to GBP7,122m (H118: GBP7,253m)
- CIB income of GBP5,149m decreased 4% driven by a 8% decline in
Banking reflecting the smaller Banking fee pool across the industry(1)
, a 6% decline in Markets and by a 2% decline in Corporate
- Consumer, Cards and Payments income increased 3% to GBP2,193m
reflecting balance growth in the US cards business, partnership
growth in merchant acquiring, appreciation of USD against GBP,
offset by the non-recurrence of a GBP53m gain on the sale of
a US cards portfolio in H118
- Head Office loss decreased by 14% to GBP220m, driven by hedge
accounting losses that did not repeat, partially offset by a
non-recurrence of prior year gain of GBP155m from the settlement
of receivables relating to the Lehman Brothers acquisition
-- Credit impairment charges increased to GBP510m (H118: GBP156m)
- CIB credit impairment charges increased to GBP96m (H118: release
of GBP182m) due to the non-recurrence of favourable macroeconomic
forecast updates and single name releases in H118
- Consumer, Cards and Payments credit impairment charges increased
to GBP396m (H118: GBP343m) due to the non-recurrence of favourable
macroeconomic forecast updates in H118
-- Total operating expenses decreased 23% to GBP4,910m (H118: GBP6,384m)
- CIB operating expenses are stable at GBP3,615m as variable compensation
accruals were reduced in response to performance in Q119, partially
offset by continued investment in the business
- Consumer, Cards and Payments operating expenses increased 7%
to GBP1,211m driven by continued investment in US cards, merchant
acquiring and wealth
- Head Office operating expenses decreased 95% to GBP84m due to
a non-recurrence of settlement relating to RMBS with the DoJ
-- H118 loss after tax in respect of discontinued operations of GBP47m
included the results of the three months ended 31 March 2018 relating
to the UK banking business that was transferred to Barclays Bank
UK PLC
-- The effective tax rate was 15.1%. This reflects a change in accounting
standards requiring tax relief on payments made under Additional
Tier 1 (AT1) instruments to be recognised in the income statement
Balance sheet and capital
-- Trading portfolio assets increased GBP16.0bn to GBP120.0bn due
to increased trading activity compared to year-end 2018
-- Derivative financial instrument assets and liabilities increased
GBP21.7bn to GBP244.4bn and GBP23.4bn to GBP243.0bn respectively
driven by a decrease in major interest rate curves, principally
in the second quarter
-- Financial assets at fair value through the income statement increased
GBP10.9bn to GBP156.2bn due to increased secured lending compared
to year-end 2018
-- Deposits at amortised cost increased GBP15.8bn to GBP215.1bn due
to increased customer deposits
-- The Barclays Bank PLC solo-consolidated CET1 ratio as at 30 June
2019 was 13.4%, which is above regulatory capital minimum requirements
1 Data Source: Dealogic for period 1 January 2019 to 30 June 2019.
Risk Management
Risk management and principal risks
The roles and responsibilities of the business groups, Risk and
Compliance, in the management of risk in Barclays Bank Group are
defined in the Barclays Group's Enterprise Risk Management
Framework. The purpose of the framework is to identify the
principal risks of Barclays Group, the process by which Barclays
Group sets its appetite for these risks in its business activities,
and the consequent limits which it places on related risk taking.
It is approved by the Barclays PLC Board Risk Committee on
recommendation of the Barclays Group Chief Risk Officer; it is then
adopted by the Barclays Bank Group with minor modifications where
required to meet regulatory expectations.
The framework identifies eight principal risks: credit risk;
market risk; treasury and capital risk; operational risk; model
risk; conduct risk; reputation risk; and legal risk. Further detail
on these risks and how they are managed is available in the
Barclays Bank PLC Annual Report 2018 available at
home.barclays/annualreport. There have been no significant changes
to these principal risks or previously identified material existing
and emerging risks in the period, including the risks associated
with the process of the UK withdrawal from the European Union which
continue to be closely monitored by Barclays Group. Impairment as
at 30 June 2019 continues to include an adjustment of GBP50m
representing the estimated impact of anticipated economic
uncertainty in the UK (for further detail please see page 7). No
significant changes to the principal risks or previously identified
material existing and emerging risks are currently expected for the
remaining six months of the year.
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 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 30.06.19 Stage 1 Not past due <=30 days past due >30 days past due Total Stage 3 Total(1)
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================= ======= ============ ================== ================= ====== ======= ========
Home loans 11,262 614 60 92 766 1,183 13,211
Credit cards, unsecured loans
and other retail lending 31,753 4,227 305 290 4,822 2,057 38,632
Corporate loans 86,126 7,695 595 1,000 9,290 1,136 96,552
============================= ======= ============ ================== ================= ====== ======= ========
Total 129,141 12,536 960 1,382 14,878 4,376 148,395
Impairment allowance
============================= ======= ============ ================== ================= ====== ======= ========
Home loans 28 26 11 10 47 318 393
Credit cards, unsecured loans
and other retail lending 349 563 105 143 811 1,423 2,583
Corporate loans 122 225 186 249 384 755
============================= ======= ============ ================== ================ ====== ======= ========
Total 499 814 134 159 1,107 2,125 3,731
Net exposure
============================= ======= ============ ================== ================= ====== ======= ========
Home loans 11,234 588 49 82 719 865 12,818
Credit cards, unsecured loans
and other retail lending 31,404 3,664 200 147 4,011 634 36,049
Corporate loans 86,004 7,470 577 994 9,041 752 95,797
============================= ======= ============ ================== ================= ====== ======= ========
Total 128,642 11,722 826 1,223 13,771 2,251 144,664
Coverage ratio %% %% %% %
============================= ======= =========== ================= ================ ===== ====== =======
Home loans 0.2 4.2 18.3 10.9 6.1 26.9 3.0
Credit cards, unsecured loans
and other retail lending 1.1 13.3 34.4 49.3 16.8 69.2 6.7
Corporate loans 0.1 2.9 3.0 0.6 2.7 33.8 0.8
============================= ======= ============ ================== ================= ====== ======= ========
Total 0.4 6.5 14.0 11.5 7.4 48.6 2.5
As at 31.12.18
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================= ======= ============ ================== ================= ====== ======= ========
Home loans 11,486 663 50 147 860 1,194 13,540
Credit cards, unsecured loans
and other retail lending 29,548 4,381 305 240 4,926 2,078 36,552
Corporate loans 81,555 7,480 315 443 8,238 917 90,710
============================= ======= ============ ================== ================= ====== ======= ========
Total 122,589 12,524 670 830 14,024 4,189 140,802
Impairment allowance
============================= ======= ============ ================== ================= ====== ======= ========
Home loans 26 299 9 47 307 380
Credit cards, unsecured loans
and other retail lending 356 694 118 160 972 1,433 2,761
Corporate loans 107 214 11 11 236 359 702
============================= ======= ============ ================== ================= ====== ======= ========
Total 489 937 138 180 1,255 2,099 3,843
Net exposure
============================= ======= ============ ================== ================= ====== ======= ========
Home loans 11,460 634 41 138 813 887 13,160
Credit cards, unsecured loans
and other retail lending 29,192 3,687 187 80 3,954 645 33,791
Corporate loans 81,448 7,266 304 432 8,002 558 90,008
============================= ======= ============ ================== ================= ====== ======= ========
Total 122,100 11,587 532 650 12,769 2,090 136,959
Coverage ratio %% %% %% %
============================= ======= =========== ================= ================ ===== ====== =======
Home loans 0.2 4.4 18.0 6.1 5.5 25.7 2.8
Credit cards, unsecured loans
and other retail lending 1.2 15.8 38.7 66.7 19.7 69.0 7.6
Corporate loans 0.1 2.9 3.5 2.5 2.9 39.1 0.8
============================= ======= ============ ================== ================= ====== ======= ========
Total 0.4 7.5 20.6 21.7 8.9 50.1 2.7
1 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, accrued
income and sundry debtors. These have a total gross exposure of
GBP159.9bn (December 2018: GBP120.1bn) and impairment allowance
of GBP21m (December 2018: GBP11m). This comprises GBP13m (December
2018: GBP9m) Expected Credit Loss (ECL) on GBP159.4bn (December
2018: GBP119.6bn) Stage 1 assets, GBP3m (December 2018: GBP2m)
on GBP0.5bn (December 2018: GBP0.5bn) Stage 2 fair value through
other comprehensive income assets and GBP5m (December 2018: GBPnil)
on GBP5m (December 2018: GBPnil) Stage 3 other assets.
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.
Explanation of the terms: 12-month ECL, lifetime ECL and
credit-impaired are included in the Barclays Bank PLC Annual Report
2018 on page 173. Barclays Bank Group does not hold any material
purchased or originated credit-impaired assets as at period
end.
Stage 1 Stage 2 Stage 3 Total
Gross exposure for loans and advances at amortised cost GBPm GBPm GBPm GBPm
============================================================================= ======== ======= ======= ========
As at 1 January 2019 122,589 14,024 4,189 140,802
Transfers from Stage 1 (4,661) 4,348 313 -
Transfers from Stage 2 3,540 (4,255) 715 -
Transfers from Stage 3 36 98 (134) -
Business activity in the year 32,336 984 25 33,345
Net drawdowns and repayments (2,880) 1,482 331 (1,067)
Final repayments (21,819) (1,803) (415) (24,037)
Disposals - - (21) (21)
Write-offs(1) - - (627) (627)
============================================================================= ======== ======= ======= ========
As at 30 June 2019 129,141 14,878 4,376 148,395
Stage 1 Stage 2 Stage 3 Total
Impairment allowance on loans and advances at amortised cost GBPm GBPm GBPm GBPm
============================================================================= ======== ======= ======= ========
As at 1 January 2019 489 1,255 2,099 3,843
Transfers from Stage 1 (58) 51 7 -
Transfers from Stage 2 246 (456) 210 -
Transfers from Stage 3 1 7 (8) -
Business activity in the year 95 39 5 139
Net re-measurement and movement due to exposure and risk parameter changes (243) 251 513 521
Final repayments (31) (40) (53) (124)
Disposals - - (21) (21)
Write-offs(1) - - (627) (627)
============================================================================= ======== ======= ======= ========
As at 30 June 2019(2) 499 1,107 2,125 3,731
Reconciliation of ECL movement to impairment charge/(release) for the period
GBPm
ECL movement excluding assets derecognised due to disposals and write-offs 536
Post write-off recoveries(1) (47)
Exchange and other adjustments (7)
Impairment charge on loan commitments and financial guarantees 22
Impairment charge on other financial assets(2) 6
============================================================================= ======== ======= ======= ========
Income statement charge/(release) for the period 510
1 In H119, gross write-offs amounted to GBP627m (H118: GBP788m) and
post write-off recoveries amounted to GBP47m (H118: GBP43m). Net
write-offs represent gross write-offs less post write off recoveries
and amounted to GBP580m (H118: GBP745m).
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, accrued
income and sundry debtors. These have a total gross exposure of
GBP159.9bn (December 2018: GBP120.1bn) and impairment allowance
of GBP21m (December 2018: GBP11m). This comprises GBP13m ECL (December
2018: GBP9m) on GBP159.4bn stage 1 assets (December 2018: GBP119.6bn)
and GBP3m (December 2018: GBP2m) on GBP0.5bn stage 2 fair value
through other comprehensive income assets (December 2018: GBP0.5bn)
and GBP5m (December 2018: GBP0m) on GBP5m stage 3 other assets
(December 2018: GBP0m).
Stage 1 Stage 2 Stage 3 Total
Gross exposure for loan commitments and financial guarantees GBPm GBPm GBPm GBPm
=========================================================================== ======== ======= ======= ========
As at 1 January 2019 248,590 16,444 421 265,455
Net transfers between stages (506) 142 364 -
Business activity in the year 44,043 1,538 9 45,590
Net drawdowns and repayments (2,348) 997 (282) (1,633)
Final repayments (27,183) (4,092) (234) (31,509)
As at 30 June 2019 262,596 15,029 278 277,903
Stage 1 Stage 2 Stage 3 Total
Impairment allowance on loan commitments and financial guarantees GBPm GBPm GBPm GBPm
=========================================================================== ======== ======= ======= ========
As at 1 January 2019 91 104 22 217
Net transfers between stages 8 (6) (2) -
Business activity in the year 26 25 7 58
Net re-measurement and movement due to exposure and risk parameter changes (17) 14 6 3
Final repayments (15) (26) (1) (42)
As at 30 June 2019 93 111 32 236
IFRS 9 models must assess ECL across a range of future economic
conditions. These economic scenarios are generated via an
independent model and ultimately set by the Barclays Group Senior
Scenario Review Committee (SSRC). Economic scenarios are
regenerated at a minimum annually (to align with Barclays Group's
medium-term planning exercise) but also if external consensus
regarding the UK or US economy materially changes. The SSRC
monitors consensus and within the period there have been no
sufficiently material changes to external consensus regarding the
UK or US economy, and as such there have been no changes to the
macroeconomic variable paths within each modelled scenario during
2019. There is however continued anticipated economic uncertainty
in the UK and as a result the impairment adjustment of GBP50m,
based broadly on the output of the sensitivity analysis at 31
December 2018, continues to be included in the impairment balance
at 30 June 2019. The output of the sensitivity analysis at 31
December 2018 remains valid given the scenarios are unchanged and
the portfolios are comparable. Please refer to pages 76 to 80 of
the Barclays Bank PLC Annual Report 2018 for details.
Market Risk
Analysis of management value at risk (VaR)
The table below shows the total management VaR on a diversified
basis by risk factor. Total management VaR includes all trading
positions in CIB and Treasury within Barclays Bank Group and it is
calculated with a one-day holding period.
Limits are applied against each risk factor VaR as well as total
management VaR, which are then cascaded further by risk managers to
each business.
Management VaR (95%) by asset class(1)
Half year ended 30.06.19 Half year ended 31.12.18 Half year ended 30.06.18(2)
============================ ============================ ===============================
Average High(3) Low(3) Average High(3) Low(3) Average High(3) Low(3)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================== ========= ======== ======= ========= ======== ======= ========== ========= ========
Credit risk 11 14 8 10 13 8 11 16 8
Interest rate risk 5 9 3 8 14 3 9 18 4
Equity risk 9 16 5 7 14 4 7 12 4
Basis risk 7 9 6 7 8 6 5 7 4
Spread risk 4 5 3 6 9 3 5 9 3
Foreign exchange risk 3 5 2 3 5 1 3 7 2
Commodity risk 1 1 - 1 1 - 1 2 -
Inflation risk 2 3 2 3 3 2 3 4 2
Diversification
effect(3) (21) n/a n/a (24) n/a n/a (24) n/a n/a
===================== ========= ======== ======= ========= ======== ======= ========== ========= ========
Total management VaR 21 26 16 21 27 17 20 27 15
1 Excludes Barclays Africa Group Limited from 23 July 2018.
2 Includes the UK banking business for the three months ended 31
March 2018.
3 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.
Treasury and Capital Risk
Funding and liquidity
Overview
The liquidity pool increased to GBP191bn (December 2018:
GBP182bn) driven largely by net customer deposits and increased
wholesale funding during the period. This positions Barclays Bank
Group prudently in the face of prevailing macroeconomic
uncertainty.
For the purpose of liquidity management, Barclays Bank PLC and
its subsidiary Barclays Capital Securities Limited, a UK broker
dealer entity, are monitored on a combined basis by the PRA under a
Domestic Liquidity Sub-Group (Barclays Bank PLC DoLSub)
arrangement.
Liquidity risk stress testing
The liquidity risk stress assessment measures 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 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 CRR (as amended by CRR II) Liquidity Coverage ratio (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 2019, Barclays Bank PLC DoLSub held eligible
liquid assets in excess of 100% of the net stress outflows to its
internal and regulatory requirements. The proportion of the
liquidity pool between cash and deposits with central banks,
government bonds and other eligible securities is broadly similar
to the Barclays Group.
A significant portion of the liquidity pool is located in
Barclays Bank PLC and Barclays Bank Ireland PLC. The residual
portion of the liquidity pool, which is predominantly in the US
subsidiaries, is held against entity-specific stress outflows and
local regulatory requirements.
As at As at
30.06.19 31.12.18
GBPbn GBPbn
================================================== ======== ========
Barclays Bank Group liquidity pool 191 182
%%
================================================== ======== =======
Barclays Bank PLC DoLSub liquidity coverage ratio 141 147
Capital and leverage
Barclays Bank PLC is currently regulated by the PRA on a
solo-consolidated basis. Barclays Bank PLC solo-consolidated
comprises Barclays Bank PLC plus certain additional subsidiaries,
subject to PRA approval. The disclosures below provide key capital
metrics for Barclays Bank PLC solo-consolidated with further
information on its risk profile to be included in the Barclays PLC
Pillar 3 Report H1 2019, due to be published on 23 August 2019, and
which will be available at
home.barclays/investor-relations/reports-and-events/latest-financial-results.
On 27 June 2019, as part of the EU Risk Reduction Measure
package, the CRR II entered into force amending CRR. As an amending
regulation, the existing provisions of CRR apply unless they are
amended by CRR II. The amendments largely take effect and are
phased in from 28 June 2021 with a number of exceptions which are
implemented with immediate effect.
These exceptions primarily relate to the minimum requirement for
own funds and eligible liabilities (MREL). Amendments within this
section include changes to qualifying criteria for CET1, AT1 and
Tier 2 instruments, the inclusion of additional holdings eligible
for deduction, an amendment to the treatment of deferred tax assets
and the introduction of requirements for MREL. Grandfathering and
transitional provisions relating to MREL have also been
introduced.
Certain aspects of CRR II are dependent on final technical
standards to be issued by the European Banking Authority (EBA) and
adopted by the European Commission as well as UK implementation of
the rules. The disclosures in the following section reflect
Barclays' interpretation of the current rules and guidance.
As at As at
Capital ratios(1, 2, 3) 30.06.19 31.12.18
========================= ========= =========
CET1 13.4% 13.5%
Tier 1 (T1) 18.1% 18.4%
Total regulatory capital 21.6% 22.2%
Capital resources GBPbn GBPbn
================================== ===== =====
CET1 capital 22.4 23.4
T1 capital 30.2 31.9
Total regulatory capital 36.0 38.4
Total risk weighted assets (RWAs) 166.7 173.2
Leverage ratio(1, 4) GBPbn GBPbn
====================== ===== =====
CRR leverage ratio 3.8% 4.0%
T1 capital 30.2 31.9
CRR leverage exposure 801 791
1 Capital, RWAs and leverage are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date. This includes IFRS 9 transitional arrangements
and the grandfathering of CRR and CRR II non-compliant capital
instruments.
2 The fully loaded CET1 ratio was 13.1%, with GBP21.8bn of CET1 capital
and GBP166.1bn of RWAs calculated without applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date.
3 The Barclays PLC CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays Bank PLC Tier 2 Contingent Capital
Notes, was 13.4%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR,
including the IFRS 9 transitional arrangements. The benefit of
the Financial Services Authority (FSA) October 2012 interpretation
of the transitional provisions, relating to the implementation
of CRD IV, expired in December 2017.
4 No binding leverage minimum requirement has been set for Barclays
Bank PLC solo-consolidated and it is only required to disclose
a CRR leverage ratio. To aid comparability with leverage disclosure
for other Barclays Group entities, the UK spot leverage ratio would
be higher than the disclosed CRR leverage ratio taking into account
the exemption of qualifying central bank claims in the UK leverage
exposure.
Statement of Directors' Responsibilities
Each of the Directors (the names of whom are set out below)
confirm that to the best of their knowledge, the condensed
consolidated interim financial statements set out on pages 13 to 18
have been prepared in accordance with International Accounting
Standard 34, Interim Financial Reporting, as adopted by the
European Union (EU), 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 2019 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
2019 that have materially affected the financial position or performance
of Barclays Bank Group 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 Bank Group in the six months ended 30 June
2019.
Signed on 31 July 2019 on behalf of the Board by
James E Staley Steven Ewart
Barclays Bank Group Chief Executive Barclays Bank Group Chief Financial
Officer
Barclays Bank PLC Board of Directors:
Chairman Executive Directors Non-executive Directors
Nigel Higgins James E Staley Peter Bernard
Steven Ewart Helen Keelan
Maria Richter
Jeremy Scott
Alex Thursby
Hélène Vletter-van Dort
Independent Review Report to Barclays Bank PLC
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the Interim Results Announcement for the
six months ended 30 June 2019 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 2019;
-- 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 2019 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted by the EU and
the Disclosure Guidance and Transparency Rules ("the DTR") of the
UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board 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.
The impact of uncertainties due to the UK exiting the European
Union on our review
Uncertainties related to the effects of Brexit are relevant to
understanding our review of the condensed financial statements.
Brexit is one of the most significant economic events for the UK,
and at the date of this report its effects are subject to
unprecedented levels of uncertainty of outcomes, with the full
range of possible effects unknown. An interim review cannot be
expected to predict the unknowable factors or all possible future
implications for a company and this is particularly the case in
relation to Brexit.
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 Basis of preparation, the annual
financial statements of the Barclays Bank Group are prepared in
accordance with International Financial Reporting Standards as
adopted by the EU. 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 by the
EU.
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.
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.
Karim Haji
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London, E14 5GL
31 July 2019
Condensed Consolidated Financial Statements
Condensed consolidated income statement (unaudited)
Half year ended Half year ended
30.06.19 30.06.18
Continuing operations Notes(1) GBPm GBPm
========================================================================== ======== =============== ===============
Net interest income 1,821 1,501
Net fee and commission income 3 2,829 2,862
Net trading income 2,093 2,319
Net investment income 337 494
Other income 42 77
========================================================================== ======== =============== ===============
Total income 7,122 7,253
Credit impairment charges and other provisions (510) (156)
========================================================================== ======== =============== ===============
Net operating income 6,612 7,097
Staff costs (2,354) (2,438)
Infrastructure, administration and general expenses (2,488) (2,319)
Litigation and conduct (68) (1,627)
Operating expenses (4,910) (6,384)
Profit on disposal of undertakings and share of results of associates and
joint ventures 23 12
========================================================================== ======== =============== ===============
Profit before tax 1,725 725
Tax charge(2) 4 (260) (294)
========================================================================== ======== =============== ===============
Profit after tax in respect of continuing operations 1,465 431
Loss after tax in respect of discontinued operations - (47)
========================================================================== ======== =============== ===============
Profit after tax 1,465 384
Attributable to:
========================================================================== ======== --------------- ---------------
Equity holders of the parent(2) 1,171 75
Other equity instrument holders 294 310
-------------------------------------------------------------------------- -------- --------------- ---------------
Total equity holders of the parent 1,465 385
Non-controlling interests in respect of continuing operations 5 - (1)
-------------------------------------------------------------------------- -------- --------------- ---------------
Profit after tax 1,465 384
1 For notes to the Financial Statements see pages 19 to 44.
2 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated, reducing the
tax charge for H118 by GBP84m. Further detail can be found in Note
1, Basis of preparation on pages 19 to 20.
Condensed consolidated statement of comprehensive income (unaudited)
Half year ended Half year ended
30.06.19 30.06.18
Notes(1) GBPm GBPm
========================================================================== ======== =============== ===============
Profit after tax 1,465 384
Profit after tax in respect of continuing operations 1,465 431
Loss after tax in respect of discontinued operations - (47)
Other comprehensive income/(loss) that may be recycled to profit or loss
from
continuing operations:(2)
Currency translation reserve 13 232 350
Fair value through other comprehensive income reserve 13 359 (221)
Cash flow hedging reserve 13 612 (403)
Other - 10
========================================================================== ======== =============== ===============
Other comprehensive income/(loss) that may be recycled to profit or loss
from continuing operations 1,203 (264)
Other comprehensive (loss)/income not recycled to profit or loss from
continuing
operations:(2)
Retirement benefit remeasurements 10 (140) (54)
Fair value through other comprehensive income reserve 13 - (267)
Own credit 13 44 (73)
========================================================================== ======== =============== ===============
Other comprehensive loss not recycled to profit or loss from continuing
operations (96) (394)
Other comprehensive income/(loss) for the period from continuing
operations 1,107 (658)
Other comprehensive loss for the period from discontinued operations - (3)
Total comprehensive income/(loss) for the period:
========================================================================== ======== =============== ===============
Total comprehensive income/(loss) for the period, net of tax from
continuing operations 2,572 (227)
Total comprehensive loss for the period, net of tax from discontinued
operations - (50)
========================================================================== ======== =============== ===============
Total comprehensive income/(loss) for the period 2,572 (277)
Attributable to:
Equity holders of the parent 2,572 (276)
Non-controlling interests - (1)
========================================================================== ======== =============== ===============
Total comprehensive income/(loss) for the period 2,572 (277)
1 For notes to the Financial Statements see pages 19 to 44.
2 Reported net of tax.
Condensed consolidated balance sheet (unaudited)
As at As at
30.06.19 31.12.18
Assets Notes(1) GBPm GBPm
========================================================================= ======== ======== ========
Cash and balances at central banks 123,629 136,359
Cash collateral and settlement balances 101,323 74,352
Loans and advances at amortised cost 144,664 136,959
Reverse repurchase agreements and other similar secured lending 7,865 1,613
Trading portfolio assets 120,025 104,038
Financial assets at fair value through the income statement 156,243 145,250
Derivative financial instruments 244,422 222,683
Financial assets at fair value through other comprehensive income 55,856 44,994
Investments in associates and joint ventures 732 762
Goodwill and intangible assets 1,282 1,327
Property, plant and equipment(2) 1,628 947
Current tax assets 4 2,041 1,713
Deferred tax assets 4 2,677 2,970
Retirement benefit assets 10 1,875 1,768
Other assets 5,004 1,965
========================================================================= ======== ======== ========
Total assets 969,266 877,700
Liabilities
========================================================================= ======== ======== ========
Deposits at amortised cost 215,125 199,337
Cash collateral and settlement balances 93,723 67,736
Repurchase agreements and other similar secured borrowing 5,992 7,378
Debt securities in issue 42,251 39,063
Subordinated liabilities 8 36,368 35,327
Trading portfolio liabilities 41,335 36,614
Financial liabilities designated at fair value 229,875 217,741
Derivative financial instruments 243,004 219,592
Current tax liabilities 4 613 621
Deferred tax liabilities 4 332 -
Retirement benefit liabilities 10 287 283
Other liabilities(2) 6,897 5,170
Provisions 9 854 1,127
========================================================================= ======== ======== ========
Total liabilities 916,656 829,989
Equity
========================================================================= ======== ======== ========
Called up share capital and share premium 11 2,348 2,348
Other reserves 13 4,608 3,361
Retained earnings 36,252 34,405
========================================================================= ======== ======== ========
Shareholders' equity attributable to ordinary shareholders of the parent 43,208 40,114
Other equity instruments 12 9,402 7,595
========================================================================= ======== ======== ========
Total equity excluding non-controlling interests 52,610 47,709
Non-controlling interests 5 - 2
========================================================================= ======== ======== ========
Total equity 52,610 47,711
Total liabilities and equity 969,266 877,700
1 For notes to the Financial Statements see pages 19 to 44.
2 Barclays Bank PLC adopted the accounting standard IFRS 16 on 1
January 2019. The impact on adoption was an increase in property,
plant and equipment of GBP0.5bn, an increase in liabilities of
GBP0.5bn, with no material impact on retained earnings.
Condensed consolidated statement of changes in equity (unaudited)
Called up
share capital
and share Other equity Other Retained Non-controlling
premium(1) instruments(1) reserves(1) earnings Total interests(2) Total equity
Half year ended
30.06.19 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================= ============= ============== ============= ============= ======= =============== ============
Balance as at 1
January 2019 2,348 7,595 3,361 34,405 47,709 2 47,711
Profit after
tax(3) - 294 - 1,171 1,465 - 1,465
Currency
translation
movements - - 232 - 232 - 232
Fair value
through other
comprehensive
income reserve - - 359 - 359 - 359
Cash flow hedges - - 612 - 612 - 612
Retirement
benefit
remeasurements - - - (140) (140) - (140)
Own credit - - 44 - 44 - 44
================= ============= ============== ============= ============= ======= =============== ============
Total
comprehensive
income for the
period - 294 1,247 1,031 2,572 - 2,572
Issue and
exchange of
other equity
instruments - 1,807 - (11) 1,796 - 1,796
Other equity
instruments
coupons paid(3) - (294) - - (294) - (294)
Equity settled
share schemes - - - 198 198 - 198
Vesting of
Barclays PLC
shares under
equity settled
share schemes - - - (340) (340) - (340)
Dividends paid - - - (27) (27) - (27)
Capital
contribution
from Barclays
PLC - - - 995 995 - 995
Other movements - - - 1 1 (2) (1)
================= ============= ============== ============= ============= ======= =============== ============
Balance as at 30
June 2019 2,348 9,402 4,608 36,252 52,610 - 52,610
Half year ended
31.12.18
================= ============= ============== ============= ============= ======= =============== ============
Balance as at 1
July 2018 14,453 6,912 3,071 23,754 48,190 2 48,192
Profit after
tax(3) - 337 - 288 625 1 626
Currency
translation
movements - - 494 - 494 - 494
Fair value
through other
comprehensive
income reserve - - 143 - 143 - 143
Cash flow hedges - - 96 - 96 - 96
Retirement
benefit
remeasurements - - - 367 367 - 367
Own credit - - 131 - 131 - 131
Other - - - 17 17 - 17
================= ============= ============== ============= ============= ======= =============== ============
Total
comprehensive
income for the
period - 337 864 672 1,873 1 1,874
Issue and
exchange of
other equity
instruments - 683 - (312) 371 - 371
Capital
reorganisation (12,092) - - 12,092 - - -
Other equity
instruments
coupons paid(3) - (337) - - (337) - (337)
Redemption of
preference
shares (13) - 21 (2,048) (2,040) - (2,040)
Equity to debt
reclassification - - (272) - (272) - (272)
Equity settled
share schemes - - - 165 165 - 165
Vesting of
Barclays PLC
shares under
equity settled
share schemes - - - 3 3 - 3
Dividends paid - - - (515) (515) - (515)
Capital
contribution
from Barclays
PLC - - - 1,000 1,000 - 1,000
Net equity impact
of intragroup
transfers - - (323) (402) (725) - (725)
Other movements - - - (4) (4) (1) (5)
================= ============= ============== ============= ============= ======= =============== ============
Balance as at 31
December 2018 2,348 7,595 3,361 34,405 47,709 2 47,711
1 Details of share capital, other equity instruments and other reserves
are shown on pages 33 to 34.
2 Details of non-controlling interests are shown on page 23.
3 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated, increasing
the profit after tax for H218 by GBP91m. Further detail can be
found in Note 1, basis of preparation on pages 19 to 20.
Condensed consolidated statement of changes in equity (unaudited)
Called up
share capital
and share Other equity Other Retained Non-controlling
premium(1) instruments(1) reserves(1) earnings Total interests(2) Total equity
Half year ended
30.06.18 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ============= ============== ============= ============== ======== =============== ============
Balance as at
31 December
2017 14,453 8,982 3,808 38,490 65,733 1 65,734
Effects of
changes in
accounting
policies - - (136) (2,014) (2,150) - (2,150)
=============== ============= ============== ============= ============== ======== =============== ============
Balance as at 1
January 2018 14,453 8,982 3,672 36,476 63,583 1 63,584
Continuing
operations
Profit after
tax(3) - 310 - 122 432 (1) 431
Currency
translation
movements - - 350 - 350 - 350
Fair value
through other
comprehensive
income reserve - - (488) - (488) - (488)
Cash flow
hedges - - (403) - (403) - (403)
Retirement
benefit
remeasurements - - - (54) (54) - (54)
Own credit - - (73) - (73) - (73)
Other - - - 10 10 - 10
=============== ============= ============== ============= ============== ======== =============== ============
Total
comprehensive
income net of
tax from
continuing
operations - 310 (614) 78 (226) (1) (227)
Total
comprehensive
income net of
tax from
discontinued
operations - - (3) (47) (50) - (50)
=============== ============= ============== ============= ============== ======== =============== ============
Total
comprehensive
income for the
period - 310 (617) 31 (276) (1) (277)
Other equity
instruments
coupons
paid(3) - (310) - - (310) - (310)
Equity settled
share schemes - - - 208 208 - 208
Vesting of
Barclays PLC
shares under
equity settled
share schemes - - - (421) (421) - (421)
Dividends paid - - - (14,274) (14,274) - (14,274)
Capital
contribution
from Barclays
PLC - - - 2,000 2,000 - 2,000
Net equity
impact of
intragroup
transfers - (2,070) 16 (236) (2,290) - (2,290)
Other movements - - - (30) (30) 2 (28)
=============== ============= ============== ============= ============== ======== =============== ============
Balance as at
30 June 2018 14,453 6,912 3,071 23,754 48,190 2 48,192
1 Details of share capital, other equity instruments and other reserves
are shown on pages 33 to 34.
2 Details of non-controlling interests are shown on page 23.
3 From 2019, due to an IAS 12 update, the tax relief on payments
in relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated, increasing
the profit after tax for H118 by GBP84m. Further detail can be
found in Note 1, basis of preparation on pages 19 to 20.
Condensed consolidated cash flow statement (unaudited)
Half year ended Half year ended
30.06.19 30.06.18
Continuing operations GBPm GBPm
===================================================================== =============== ===============
Profit before tax 1,725 725
Adjustment for non-cash items(1) 314 2,360
Changes in operating assets and liabilities(2) (4,354) (6,553)
Corporate income tax paid (260) (166)
====================================================================== =============== ===============
Net cash from operating activities (2,575) (3,634)
Net cash transferred as part of the UK banking business disposal(2) - (39,703)
Other investing activities (9,094) (6,030)
====================================================================== =============== ===============
Net cash from investing activities (9,094) (45,733)
Net cash from financing activities(1) 2,552 (2,057)
Effect of exchange rates on cash and cash equivalents 652 404
====================================================================== =============== ===============
Net decrease in cash and cash equivalents from continuing operations (8,465) (51,020)
Net cash from discontinued operations - (468)
====================================================================== =============== ===============
Net decrease in cash and cash equivalents (8,465) (51,488)
Cash and cash equivalents at beginning of the period 167,357 204,452
====================================================================== =============== ===============
Cash and cash equivalents at end of the period 158,892 152,964
1 As at 30 June 2018, GBP120m was reclassified from net cash from
financing activities to adjustments for non-cash items.
2 As at 30 June 2018, GBP2.4bn of cash equivalents were reclassified
from changes in operating assets and liabilities to net cash transferred
as part of the UK business banking disposal.
Financial Statement Notes
1. Basis of preparation
These condensed consolidated interim financial statements for
the six months ended 30 June 2019 have been prepared in accordance
with the DTR of the UK FCA and with IAS 34, Interim Financial
Reporting, as published by the International Accounting Standards
Board (IASB) and adopted by the EU. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2018,
which have been prepared in accordance with IFRSs as published by
the IASB and as adopted by the EU.
In April 2018, Barclays Bank PLC transferred its UK banking
business to Barclays Bank UK PLC. The notes to these interim
financial statements do not include a Disposal note as there is no
related activity in the current period. Relevant prior period
comparative information is available in Note 2, Disposal of
business and transfer of ownership of subsidiary on pages 161 to
163 in the Barclays Bank PLC Annual Report 2018.
The accounting policies and methods of computation used in these
condensed consolidated interim financial statements are the same as
those used in the Barclays Bank PLC Annual Report 2018, except as
disclosed below.
1. IFRS 16 - Leases
IFRS 16, Leases, which replaced IAS 17, Leases, was applied
effective from 1 January 2019. IFRS 16 applies to all leases with
the exception of licenses of intellectual property, rights held by
licensing agreement within the scope of IAS 38, Intangible Assets,
service concession arrangements, leases of biological assets within
the scope of IAS 41, Agriculture, and leases of minerals, oil,
natural gas and similar non-regenerative resources. IFRS 16
includes an accounting policy choice for a lessee to elect not to
apply IFRS 16 to remaining assets within the scope of IAS 38,
Intangible Assets, which the Barclays Bank Group has decided to
apply.
IFRS 16 does not result in a significant change to lessor
accounting; however, for lessee accounting there is no longer a
distinction between operating and finance leases. Lessees will be
required to recognise both:
-- A lease liability, measured at the present value of remaining cash
flows on the lease, and
-- A right of use (ROU) asset, measured at the amount of the initial
measurement of the lease liability, plus any lease payments made
prior to commencement date, initial direct costs, and estimated
costs of restoring the underlying asset to the condition required
by the lease, less any lease incentives received.
Subsequently the lease liability will increase for the accrual
of interest, resulting in a constant rate of return throughout the
life of the lease, and reduce when payments are made. The right of
use asset will amortise to the income statement over the life of
the lease.
There is a recognition exemption in IFRS 16 for leases with a
term not exceeding 12 months, which allows the lessee to apply
similar accounting as an operating lease under IAS 17.
The Barclays Bank Group applied IFRS 16 on a modified
retrospective basis and took advantage of the option not to restate
comparative periods. The Barclays Bank Group applied the following
transition options available under the modified retrospective
approach:
-- To calculate the right of use asset equal to the lease liability,
adjusted for prepaid or accrued payments.
-- To rely on the previous assessment of whether leases are onerous
in accordance with IAS 37 immediately before the date of initial
application as an alternative to performing an impairment review.
The Barclays Bank Group adjusted the carrying amount of the ROU
asset at the date of initial application by the previous carrying
amount of its onerous lease provision.
-- To apply the recognition exception for leases with a term not exceeding
12 months.
-- To use hindsight in determining the lease term if the contract
contains options to extend or terminate the lease.
The impact on adoption was an increase in property, plant and
equipment of GBP0.5bn, and an increase in other liabilities of
GBP0.5bn, with no material impact on retained earnings.
2. IFRIC Interpretation 23 - Uncertainty over Income Tax
Treatment
IFRIC 23 clarifies the application of IAS 12 to accounting for
income tax treatments that have yet to be accepted by tax
authorities, in scenarios where it may be unclear how tax law
applies to a particular transaction or circumstance, or whether a
taxation authority will accept an entity's tax treatment. IFRIC 23
has been applied from 1 January 2019. There was no significant
effect from the adoption of IFRIC 23 in relation to accounting for
uncertain tax positions.
3. IAS 12 - Income Taxes - Amendments to IAS 12
The IASB amended IAS 12 in order to clarify the accounting
treatment of the income tax consequences of dividends. As a result
of the amendment, the tax consequences of all payments on financial
instruments that are classified as equity for accounting purposes,
where those payments are considered to be a distribution of profit,
will be included in, and will reduce, the income statement tax
charge. The amendments of IAS 12 were applied to the income tax
consequences of dividends recognised on or after the beginning of
the earliest comparative period. This resulted in reducing the tax
charge and increasing profit after tax for H119 by GBP77m and H118
by GBP84m. This change does not impact retained earnings.
4. IAS 19 - Employee Benefits - Amendments to IAS 19
The IASB issued amendments to the guidance in IAS 19, Employee
Benefits, in connection with accounting for plan amendments,
curtailments and settlements. The amendments have been applied to
plan amendments, curtailments or settlements occurring on or after
1 January 2019. There was no significant effect from the adoption
of the amendments of IAS 19.
5. Going concern
Having reassessed the Principal Risks, the directors considered
it appropriate to adopt the going concern basis of accounting in
preparing the interim financial information.
6. Other disclosures
The Credit risk disclosures on pages 5 to 7 form part of these
interim financial statements.
2. Segmental reporting
Analysis of results by
business
Corporate and Investment Consumer, Cards and
Bank Payments Head Office Barclays Bank Group
Half year ended 30.06.19 GBPm GBPm GBPm GBPm
=========================== ========================== =========================== =========== ===================
Total income 5,149 2,193 (220) 7,122
Credit impairment charges
and other provisions (96) (396) (18) (510)
=========================== ========================== =========================== =========== ===================
Net operating
income/(expenses) 5,053 1,797 (238) 6,612
Total operating expenses (3,615) (1,211) (84) (4,910)
Other net
income/(expenses)(1) 15 16 (8) 23
=========================== ========================== =========================== =========== ===================
Profit/(loss) before tax
from continuing operations 1,453 602 (330) 1,725
As at 30.06.19 GBPbn GBPbn GBPbn GBPbn
=========================== ========================== =========================== =========== ===================
Total assets 882.1 73.1 14.1 969.3
Corporate and Investment Consumer, Cards and
Bank Payments Head Office Barclays Bank Group
Half year ended 30.06.18 GBPm GBPm GBPm GBPm
=========================== ========================== =========================== =========== ===================
Total income 5,373 2,137 (257) 7,253
Credit impairment
releases/(charges) and
other provisions 182 (343) 5 (156)
=========================== ========================== =========================== =========== ===================
Net operating
income/(expenses) 5,555 1,794 (252) 7,097
Total operating expenses (3,628) (1,134) (1,622) (6,384)
Other net
income/(expenses)(1) 8 17 (13) 12
=========================== ========================== =========================== =========== ===================
Profit/(loss) before tax
from continuing operations 1,935 677 (1,887) 725
As at 31.12.18 GBPbn GBPbn GBPbn GBPbn
=========================== ========================== =========================== =========== ===================
Total assets 792.5 71.6 13.6 877.7
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 region(1)
Half year ended Half year ended
30.06.19 30.06.18
GBPm GBPm
======================================== =============== ===============
UK 2,000 2,118
Europe 863 1,026
Americas 3,825 3,735
Africa and Middle East 75 62
Asia 359 312
======================================== =============== ===============
Total 7,122 7,253
1 The geographic region is based on counterparty location.
3. 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:
Corporate and Investment Bank Consumer, Cards and Payments Head Office Total
Half year ended 30.06.19 GBPm GBPm GBPm GBPm
===================================== ============================= ============================ =========== =====
Fee type
Transactional 185 1,168 - 1,353
Advisory 364 41 - 405
Brokerage and execution 512 24 - 536
Underwriting and syndication 1,240 - - 1,240
Other 62 124 16 202
===================================== ============================= ============================ =========== =====
Total revenue from contracts with
customers 2,363 1,357 16 3,736
Other non-contract fee income 54 - - 54
===================================== ============================= ============================ =========== =====
Fee and commission income 2,417 1,357 16 3,790
Fee and commission expense (350) (611) - (961)
===================================== ============================= ============================ =========== =====
Net fee and commission income 2,067 746 16 2,829
Corporate and Investment Bank Consumer, Cards and Payments Head Office Total
Half year ended 30.06.18 GBPm GBPm GBPm GBPm
===================================== ============================= ============================ =========== =====
Fee type
Transactional 185 1,072 - 1,257
Advisory 340 37 - 377
Brokerage and execution 553 30 - 583
Underwriting and syndication 1,368 - - 1,368
Other 3 78 16 97
===================================== ============================= ============================ =========== =====
Total revenue from contracts with
customers 2,449 1,217 16 3,682
Other non-contract fee income 55 - - 55
===================================== ============================= ============================ =========== =====
Fee and commission income 2,504 1,217 16 3,737
Fee and commission expense (337) (538) - (875)
===================================== ============================= ============================ =========== =====
Net fee and commission income 2,167 679 16 2,862
Transactional fees are service charges on deposit accounts, cash
management services and transactional processing fees. This
includes interchange and merchant fee income generated from credit
and bank card usage.
Advisory fees are generated from asset management services and
advisory services related to mergers, acquisitions and financial
restructuring.
Brokerage and execution fees are earned for executing client
transactions with exchanges and over-the-counter markets and
assisting clients in clearing transactions.
Underwriting and syndication fees are earned for the
distribution of client equity or debt securities, and the
arrangement and administration of a loan syndication. This includes
commitment fees to provide loan financing.
4. Tax
The tax charge for H119 was GBP260m (H118: GBP294m),
representing an effective tax rate of 15.1% (H118: 40.6%). The
effective tax rate for H119 was substantially lower than H118,
primarily due to charges for litigation and conduct in H118 which
were non-deductible for tax purposes. From 2019, a change in
accounting standards has required tax relief on payments made under
AT1 instruments, which in prior periods was recognised in retained
earnings, to be recognised in the income statement. Excluding this
accounting change, the Barclays Bank Group's effective tax rate
would have been 19.5%.
Assets Liabilities
================== ==================
As at As at As at As at
30.06.19 31.12.18 30.06.19 31.12.18
Current and deferred tax assets and liabilities GBPm GBPm GBPm GBPm
================================================ ======== ======== ======== ========
Current tax 2,041 1,713 (613) (621)
Deferred tax 2,677 2,970 (332) -
================================================ ======== ======== ======== ========
Total 4,718 4,683 (945) (621)
As at As at
30.06.19 31.12.18
Deferred tax assets and liabilities GBPm GBPm
==================================== ======== ========
USA 2,293 2,541
UK - 3
Other 384 426
==================================== ======== ========
Deferred tax assets 2,677 2,970
Deferred tax liabilities - UK (332) -
Analysis of deferred tax assets
==================================== ======== ========
Temporary differences 2,289 2,441
Tax losses 388 529
==================================== ======== ========
Deferred tax assets 2,677 2,970
5. Non-controlling interests
Profit attributable Equity attributable
to non-controlling interests to non-controlling interests
================================ ===============================
Half year ended Half year ended As at As at
30.06.19 30.06.18 30.06.19 31.12.18
GBPm GBPm GBPm GBPm
================================ =============== =============== =============== ==============
Other non-controlling interests - (1) - 2
================================ =============== =============== =============== ==============
6. Dividends on ordinary shares
Half year ended 30.06.19 Half year ended 30.06.18
Dividends paid during the period GBPm GBPm
================================= ======================== ========================
Ordinary shares(1) - 14,168
Preference shares 27 106
================================== ======================== ========================
Total 27 14,274
1 H118 included the dividend in specie of GBP14bn paid to Barclays
PLC for transferring the equity ownership in Barclays Bank UK PLC.
A half year dividend for 2019 of GBP233m will be paid on 16
September 2019.
7. Fair value of financial instruments
This section should be read in conjunction with Note 18, Fair
value of financial instruments of the Barclays Bank PLC Annual
Report 2018 and Note 1, Basis of preparation on pages 19 to 20,
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 Barclays Bank 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 30.06.19 GBPm GBPm GBPm GBPm
================================= ==================== ================= =============================== =========
Trading portfolio assets 58,369 58,108 3,548 120,025
Financial assets at fair value
through the income statement 10,586 141,970 3,687 156,243
Derivative financial instruments 6,004 232,717 5,701 244,422
Financial assets at fair value
through other comprehensive
income 19,113 36,573 170 55,856
Investment property - - 8 8
================================= ==================== ================= =============================== =========
Total assets 94,072 469,368 13,114 576,554
Trading portfolio liabilities (24,439) (16,890) (6) (41,335)
Financial liabilities designated
at fair value (98) (229,493) (284) (229,875)
Derivative financial instruments (5,728) (232,477) (4,799) (243,004)
================================= ==================== ================= =============================== =========
Total liabilities (30,265) (478,860) (5,089) (514,214)
As at 31.12.18
================================= ==================== ================= =============================== =========
Trading portfolio assets 51,029 49,396 3,613 104,038
Financial assets at fair value
through the income statement 8,918 131,682 4,650 145,250
Derivative financial instruments 6,813 210,655 5,215 222,683
Financial assets at fair value
through other comprehensive
income 15,751 28,888 355 44,994
Investment property - - 9 9
================================= ==================== ================= =============================== =========
Total assets 82,511 420,621 13,842 516,974
Trading portfolio liabilities (19,401) (17,210) (3) (36,614)
Financial liabilities designated
at fair value (76) (217,404) (261) (217,741)
Derivative financial liabilities (6,152) (208,697) (4,743) (219,592)
================================= ==================== ================= =============================== =========
Total liabilities (25,629) (443,311) (5,007) (473,947)
The following table shows Barclays Bank Group's assets and
liabilities that are held at fair value disaggregated by valuation
technique (fair value hierarchy) and product type:
Assets Liabilities
Valuation technique using Valuation technique using
-------------------------------- ----------------------------------------- -----------------------------------------
Significant Significant
Quoted Observable unobservable Quoted Observable unobservable
market prices inputs inputs market prices inputs inputs
(Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3)
As at 30.06.19 GBPm GBPm GBPm GBPm GBPm GBPm
================================ ============== ========== ============= ============== ========== =============
Interest rate derivatives - 152,892 2,320 - (145,912) (2,071)
Foreign exchange derivatives - 56,187 209 - (57,976) (289)
Credit derivatives - 11,565 1,448 - (11,626) (369)
Equity derivatives 6,004 10,871 1,711 (5,728) (15,801) (2,057)
Commodity derivatives - 1,202 13 - (1,162) (13)
Government and government
sponsored debt 46,619 56,909 2 (11,321) (11,755) -
Corporate debt - 18,827 616 - (5,671) (6)
Certificates of deposit,
commercial paper and other
money market instruments - 554 - - (7,939) (21)
Margin lending - 15,306 - - (23,860) -
Reverse repurchase and
repurchase agreements - 123,464 13 - (148,870) -
Non-asset backed loans - 7,349 4,071 - - -
Asset backed securities - 3,157 669 - (28) -
Issued debt - - - - (47,402) (263)
Equity cash products 41,347 10,190 357 (13,118) (804) -
Private equity investments 4 - 185 - - -
Other(1) 98 895 1,500 (98) (54) -
================================ ============== ========== ============= ============== ========== =============
Total 94,072 469,368 13,114 (30,265) (478,860) (5,089)
As at 31.12.18
================================ ============== ========== ============= ============== ========== =============
Interest rate derivatives - 122,975 2,478 - (118,231) (2,456)
Foreign exchange derivatives - 63,960 192 - (63,897) (185)
Credit derivatives - 9,374 1,381 - (9,188) (331)
Equity derivatives 6,813 12,933 1,136 (6,152) (16,001) (1,743)
Commodity derivatives - 1,413 28 - (1,380) (28)
Government and government
sponsored debt 38,910 47,882 14 (8,143) (11,154) -
Corporate debt - 14,529 456 - (5,085) -
Certificates of deposit,
commercial paper and other
money market instruments - 1,135 - - (8,556) (10)
Margin lending - 10,388 - - (26,875) -
Reverse repurchase and
repurchase agreements - 118,623 768 - (139,361) -
Non-asset backed loans - 7,378 4,452 - - -
Asset backed securities - 2,265 688 - (245) -
Issued debt - - - - (42,104) (251)
Equity cash products 36,705 7,195 698 (11,258) (1,181) (3)
Private equity investments 7 - 190 - - -
Other(1) 76 571 1,361 (76) (53) -
================================ ============== ========== ============= ============== ========== =============
Total 82,511 420,621 13,842 (25,629) (443,311) (5,007)
1 Other includes commercial real estate loans, fund and fund-linked
products, asset backed loans, physical commodities 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 December 2018: 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 year.
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 Transfers
====================== ============
As at Trading Other As at
01.01.19 Purchases Sales Issues Settlements income income In Out 30.06.19
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ========== ========= ======= ====== =========== ========== ========== ===== ===== ==========
Government and
government
sponsored debt 14 2 - - - - - - (14) 2
Corporate debt 388 70 (24) - (31) 14 - 32 (74) 375
Non-asset
backed loans 2,263 1,235 (1,260) - (19) 12 - 19 (90) 2,160
Asset backed
securities 664 81 (127) - - 5 - 16 (29) 610
Equity cash
products 136 48 (13) - - (2) - 116 (20) 265
Other 148 - - - (1) (10) - - (1) 136
=============== ========== ========= ======= ====== =========== ========== ========== ===== ===== ==========
Trading
portfolio
assets 3,613 1,436 (1,424) - (51) 19 - 183 (228) 3,548
Non-asset
backed loans 1,836 2 - - (132) 70 - - (1) 1,775
Equity cash
products 559 9 - - (10) 4 178 - - 740
Private equity
investments 191 4 (3) - (1) - (6) - - 185
Other 2,064 2,334 (2,619) - (2) 17 9 24 (840) 987
=============== ========== ========= ======= ====== =========== ========== ========== ===== ===== ==========
Financial
assets at fair
value through
the income
statement 4,650 2,349 (2,622) - (145) 91 181 24 (841) 3,687
Non-asset
backed loans 353 48 - - (55) - - - (218) 128
Asset backed
securities - 40 - - - - - - - 40
Equity cash
products 2 - - - - - - - - 2
Financial
assets at fair
value through
other
comprehensive
income 355 88 - - (55) - - - (218) 170
Investment
property 9 - - - - - (1) - - 8
Trading
portfolio
liabilities (3) - - - - 2 - (5) - (6)
Certificates of
deposit,
commercial
paper and
other
money market
instruments (10) - - - 1 - (1) (11) - (21)
Issued debt (251) - - (16) 1 5 - (3) 1 (263)
=============== ========== ========= ======= ====== =========== ========== ========== ===== ===== ==========
Financial
liabilities
designated at
fair value (261) - - (16) 2 5 (1) (14) 1 (284)
Interest rate
derivatives 22 (3) - - 76 116 - (107) 145 249
Foreign
exchange
derivatives 7 - - - (12) (41) - (51) 17 (80)
Credit
derivatives 1,050 (63) 4 - (3) 86 - 2 3 1,079
Equity
derivatives (607) (122) (5) - 23 89 - (16) 292 (346)
Commodity - - - - - - - - - -
derivatives
=============== ========== ========= ======= ====== =========== ========== ========== ===== ===== ==========
Net derivative
financial
instruments(1) 472 (188) (1) - 84 250 - (172) 457 902
Total 8,835 3,685 (4,047) (16) (165) 367 179 16 (829) 8,025
1 Derivative financial instruments are represented on a net basis.
On a gross basis, derivative financial assets were GBP5,701m and
derivative financial liabilities were GBP4,799m.
Level 3 movement analysis
Total gains and losses
in the period recognised
in the income statement Transfers
======================== ============
As at Settle- Trading Other As at
01.01.18 Purchases Sales Issues ments income income In Out 30.06.18
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== =========== ========= ======= ====== ======= =========== =========== ===== ===== ===========
Government and
government
sponsored debt 49 11 - - - - - - (35) 25
Corporate debt 871 35 (17) - (23) 6 - 15 (6) 881
Non-asset
backed loans 166 2,239 (239) - - 2 - 11 (6) 2,173
Asset backed
securities 627 100 (99) - - (11) - 5 (30) 592
Equity cash
products 68 - (7) - - 35 - 75 (52) 119
Other 196 4 (4) - (10) (21) - 24 (138) 51
=============== =========== ========= ======= ====== ======= =========== =========== ===== ===== ===========
Trading
portfolio
assets 1,977 2,389 (366) - (33) 11 - 130 (267) 3,841
Non-asset
backed loans 6,073 16 (4,432) - (238) 4 - - (4) 1,419
Equity cash
products 8 11 - - - - - - - 19
Private equity
investments 688 295 (37) - - - 53 - (14) 985
Other 750 2,359 (1,967) - - 4 110 - - 1,256
=============== =========== ========= ======= ====== ======= =========== =========== ===== ===== ===========
Financial
assets at fair
value through
the income
statement 7,519 2,681 (6,436) - (238) 8 163 - (18) 3,679
Equity cash
products 36 - (17) - - - - - (18) 1
Private equity
investments 129 - (12) - - - - - (14) 103
Other 40 - (39) - - - - - - 1
=============== =========== ========= ======= ====== ======= =========== =========== ===== ===== ===========
Financial
assets at fair
value through
other
comprehensive
income 205 - (68) - - - - - (32) 105
Investment
property 116 - (104) - (5) - 4 - - 11
Trading
portfolio
liabilities (4) - 2 - - - - 2 - -
-
=============== =========== ========= ======= ====== ======= =========== =========== ===== ===== ===========
Certificates of
deposit,
commercial
paper and
other money
market
instruments (250) - 202 - - - - - - (48)
Issued debt (214) - - (4) 4 19 - (219) 125 (289)
Other (16) - 16 - 2 - (2) - - -
=============== =========== ========= ======= ====== ======= =========== =========== ===== ===== ===========
Financial
liabilities
designated at
fair value (480) - 218 (4) 6 19 (2) (219) 125 (337)
Interest rate
derivatives (150) - - - 96 (46) - (343) 58 (385)
Foreign
exchange
derivatives 37 - - - (17) (30) - 8 (18) (20)
Credit
derivatives 1,146 2 3 - (15) (210) - 1 (2) 925
Equity
derivatives (896) 22 (431) - 221 129 - 33 175 (747)
--------------- ----------- --------- ------- ------ ------- ----------- ----------- ----- ----- -----------
Net derivative
financial
instruments(1) 137 24 (428) - 285 (157) - (301) 213 (227)
Total 9,470 5,094 (7,182) (4) 15 (119) 165 (388) 21 7,072
1 Derivative financial instruments are presented on a net basis.
On a gross basis, derivative financial assets were GBP5,066m and
derivative financial liabilities were GBP5,293m.
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 30.06.19 Half year ended 30.06.18
----------------------------------- -----------------------------------
Income statement Income statement
============================ ============================
Trading income Other income Total Trading income Other income Total
GBPm GBPm GBPm GBPm GBPm GBPm
============================================ ============== ============ ===== ============== ============ =====
Trading portfolio assets 21 - 21 (3) - (3)
Financial assets at fair value through the
income statement 75 178 253 7 116 123
Investment properties - (1) (1) - - -
Trading portfolio liabilities 2 - 2 - - -
Financial liabilities designated at fair
value 6 - 6 18 - 18
Net derivative financial instruments 212 - 212 (155) - (155)
============================================ ============== ============ ===== ============== ============ =====
Total 316 177 493 (133) 116 (17)
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.
Sensitivity analysis of valuations using unobservable inputs
As at 30.06.19 As at 31.12.18
======================== ========================
Favourable Unfavourable Favourable Unfavourable
changes changes changes changes
----------------------------- ========== ============ ========== ============
GBPm GBPm GBPm GBPm
============================= ========== ============ ========== ============
Interest rate derivatives 52 (118) 80 (162)
Foreign exchange derivatives 11 (14) 7 (10)
Credit derivatives 125 (79) 126 (73)
Equity derivatives 107 (108) 110 (112)
Commodity derivatives 1 (1) 1 (1)
Corporate debt 12 (10) 10 (2)
Non-asset backed loans 138 (241) 141 (210)
Equity cash products 130 (173) 121 (155)
Private equity investments 6 (7) - (10)
Other(1) 2 (2) 2 (2)
============================= ========== ============ ========== ============
Total 584 (753) 598 (737)
1 Other includes commercial real estate loans, fund and fund-linked
products, asset backed loans, physical commodities 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 GBP584m (December 2018: GBP598m) or to decrease fair values by
up to GBP753m (December 2018: GBP737m) with all the effect
impacting profit and loss.
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 18, Fair value of financial
instruments in the Barclays Bank PLC Annual Report 2018. The
description of the significant unobservable inputs and the
sensitivity of fair value measurement of the instruments
categorised as Level 3 assets or liabilities to increases in
significant unobservable inputs is also found in Note 18, Fair
value of financial instruments of the Barclays Bank PLC Annual
Report 2018.
Fair value adjustments
Key balance sheet valuation adjustments are quantified
below:
As at As at
30.06.19 31.12.18
GBPm GBPm
============================================================= ======== ========
Exit price adjustments derived from market bid-offer spreads (448) (451)
Uncollateralised derivative funding (60) (47)
Derivative credit valuation adjustments (149) (125)
Derivative debit valuation adjustments 192 237
-- Uncollateralised derivative funding increased by GBP13m to GBP60m
as a result of changes in underlying derivative exposures
-- Derivative credit valuation adjustments increased by GBP24m to
GBP149m as a result of changes in underlying derivative exposures
-- Derivative debit valuation adjustments decreased by GBP45m to GBP192m
as a result of tightening in Barclays' credit spreads
Portfolio exemption
Barclays Bank 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
Barclays Bank 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 GBP106m
(December 2018: GBP127m) for financial instruments measured at fair
value and GBP32m (December 2018: GBP31m) for financial instruments
carried at amortised cost. The decrease in financial instruments
measured at fair value of GBP21m (December 2018: GBP32m increase)
was driven by additions of GBP23m (December 2018: GBP65m) offset by
a transfer out of GBPnil (December 2018: GBP15m) to Barclays Bank
UK PLC and GBP44m (December 2018: GBP18m) of amortisation and
releases. The increase of GBP1m (December 2018: GBP222m decrease)
in financial instruments carried at amortised cost was driven by
the transfer out of GBPnil (December 2018: GBP222m) to Barclays
Bank UK PLC and GBPnil (December 2018: GBP2m) of amortisation and
releases offset by additions of GBP1m (December 2018: GBP2m).
Third party credit enhancements
Structured and brokered certificates of deposit issued by
Barclays Bank 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 the Barclays Bank Group 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 GBP4,452m (December 2018:
GBP4,797m).
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 the Barclays Bank PLC Annual Report 2018
disclosure.
The following table summarises the fair value of financial
assets and liabilities measured at amortised cost on the Barclays
Bank Group's balance sheet.
As at 30.06.19 As at 31.12.18
=========================== ===========================
Carrying amount Fair value Carrying amount Fair value
Financial assets GBPm GBPm GBPm GBPm
============================================================ =============== ========== =============== ==========
Loans and advances at amortised cost
- Home loans 12,818 12,242 13,160 12,592
- Credit cards, unsecured loans and other retail lending 34,035 34,951 31,921 33,115
- Finance lease receivables 2,035 2,178 1,886 2,057
- Corporate loans 95,776 95,053 89,992 89,671
Reverse repurchase agreements and other similar secured
lending 7,865 7,865 1,613 1,613
Financial liabilities
============================================================ =============== ========== =============== ==========
Deposits at amortised cost
- Banks (19,579) (19,579) (15,569) (15,569)
- Current and demand accounts (78,961) (78,961) (77,264) (77,264)
- Savings accounts (27,008) (27,008) (26,980) (26,980)
- Other time deposits (89,577) (89,569) (79,524) (79,524)
Repurchase agreements and other similar secured borrowing (5,992) (5,992) (7,378) (7,378)
Debt securities in issue (42,251) (42,247) (39,063) (39,083)
Subordinated liabilities (36,368) (36,905) (35,327) (36,174)
8. Subordinated liabilities
Half year ended Year ended
30.06.19 31.12.18
GBPm GBPm
================================ =============== ==========
Opening balance as at 1 January 35,327 24,193
Issuances 4,508 221
Redemptions (4,321) (3,246)
Other 854 14,159
================================ =============== ==========
Closing balance 36,368 35,327
Issuances of GBP4,508m include GBP3,396m intra-group loans from
Barclays PLC and $1,300m 5.088% Fixed-to-Floating Rate Subordinated
Notes (GBP1,035m) issued intra-group to Barclays PLC as well as
GBP77m externally issued USD Floating Rate Notes.
Redemptions totalling GBP4,321m include GBP3,000m externally
issued 14% Step-up Callable Perpetual Reserve Capital Instruments,
GBP1,230m 4.375% Fixed Rate intra-group loans from Barclays PLC and
GBP77m externally issued USD Floating Rate Notes. Barclays
Securities Japan Limited redeemed two externally issued JPY 1,000m
dated loans during the period, totalling GBP14m.
Other movements in the six months ended 30 June 2019
predominantly include fair value hedge adjustments, accrued
interest and foreign exchange rate movements.
9. Provisions
As at As at
30.06.19 31.12.18
GBPm GBPm
---------------------------------------------------------- --------- --------
Customer redress 104 127
Legal, competition and regulatory matters 224 411
Redundancy and restructuring 71 68
Undrawn contractually committed facilities and guarantees 236 217
Onerous contracts 18 90
Sundry provisions 201 214
---------------------------------------------------------- --------- --------
Total 854 1,127
10. Retirement benefit
As at 30 June 2019, Barclays Bank Group's IAS 19 pension surplus
across all schemes was GBP1.6bn (December 2018: GBP1.5bn). The UK
Retirement Fund (UKRF), which is Barclays Bank Group's main scheme,
had an IAS 19 pension surplus of GBP1.8bn (December 2018:
GBP1.7bn). The movement for the UKRF was driven by higher than
assumed asset returns and payment of a deficit reduction
contribution, offset by a decrease in the discount rate.
UKRF funding valuations
The Scheme Actuary prepares an annual update of the UKRF funding
position in addition to the full triennial actuarial valuation. The
latest annual update was carried out as at 30 September 2018 and
showed a deficit of GBP4.0bn and a funding level of 88.4%.
The last triennial actuarial valuation of the UKRF had an
effective date of 30 September 2016 and was completed in July 2017.
This valuation showed a funding deficit of GBP7.9bn and a funding
level of 81.5%.
The improvement in funding position between 30 September 2016
and 30 September 2018 was largely due to payment of deficit
reduction contributions, higher than assumed asset returns, higher
government bond yields and transfers out of the scheme.
The recovery plan agreed as part of the 2016 triennial actuarial
valuation requires Barclays Bank PLC to pay deficit reduction
contributions of GBP0.5bn per annum between 2018 and 2020, followed
by GBP1.0bn per annum between 2021 and 2026. The deficit reduction
contributions are in addition to the regular contributions to meet
the Barclays Group's share of the cost of benefits accruing over
each year. The agreement with the UKRF Trustee also takes into
account the changes to the Barclays Group structure that were
implemented as a result of ring-fencing. Barclays Bank PLC remains
as the principal employer of the UKRF. Additional support measures
agreed include a collateral arrangement, joint participation of
Barclays Bank UK PLC until 2025, and support from Barclays PLC
should Barclays Bank PLC not pay the deficit reduction
contributions to the UKRF.
The next triennial actuarial valuation of the UKRF is due to be
completed in 2020 with an effective date of 30 September 2019.
11. Called up share capital
Ordinary shares
As at 30 June 2019 the issued ordinary share capital of Barclays
Bank PLC comprised 2,342 million (December 2018: 2,342 million)
ordinary shares of GBP1 each.
Preference shares
As at 30 June 2019 the issued preference share capital of
Barclays Bank PLC of GBP6m (December 2018: GBP6m) comprised 1,000
Sterling Preference Shares of GBP1 each (December 2018: 1,000);
31,856 Euro Preference Shares of EUR100 each (December 2018:
31,856); and 58,133 US Dollar Preference shares of $100 each
(December 2018: 58,133).
There was no issuance or redemption of ordinary or preference
shares in the six months ended on 30 June 2019.
12. Other equity instruments
Other equity instruments of GBP9,402m (December 2018: GBP7,595m)
include AT1 securities issued to Barclays PLC by Barclays Bank PLC.
There have been two issuances to Barclays PLC in the period, $2.0bn
8% Fixed Rate Resetting Perpetual Subordinated Contingent
Convertible Securities and GBP300m 7.125% Fixed Rate Resetting
Perpetual Subordinated Contingent Convertible Securities.
The AT1 securities are perpetual securities with no fixed
maturity and are structured to qualify as AT1 instruments under
CRR. AT1 securities are undated and are repayable, at the option of
Barclays Bank PLC, in whole at the initial call date, or on any
fifth anniversary after the initial call date. In addition, the AT1
securities are repayable, at the option of Barclays Bank PLC, in
whole in the event of certain changes in the tax or regulatory
treatment of the securities. Any repayments require the prior
consent of the PRA.
13. Other reserves
As at As at
30.06.19 31.12.18
GBPm GBPm
====================================================== ======== ========
Currency translation reserve 4,159 3,927
Fair value through other comprehensive income reserve 61 (298)
Cash flow hedging reserve 489 (123)
Own credit reserve (77) (121)
Other reserves (24) (24)
====================================================== ======== ========
Total 4,608 3,361
Currency translation reserve
The currency translation reserve represents the cumulative gains
and losses on the retranslation of Barclays Bank Group's net
investment in foreign operations, net of the effects of
hedging.
As at 30 June 2019, there was a credit balance of GBP4,159m
(December 2018: GBP3,927m credit) in the currency translation
reserve. The GBP232m credit movement principally reflected the
strengthening of period end USD against GBP.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve
represents the unrealised change in the fair value through other
comprehensive income investments since initial recognition.
As at 30 June 2019, there was a credit balance of GBP61m
(December 2018: GBP298m debit) in the fair value through other
comprehensive income reserve. The gain of GBP359m is principally
reflected by a GBP679m gain from the increase in fair value of
bonds due to decreasing bond yields, partially offset by GBP200m of
net gains transferred to net profit and a tax charge of
GBP120m.
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 2019, there was a credit balance of GBP489m
(December 2018: GBP123m debit) in the cash flow hedging reserve.
The increase of GBP612m principally reflected a GBP844m increase in
the fair value of interest rate swaps held for hedging purposes as
interest rate curves decreased partially offset by GBP31m of gains
transferred to net profit and a tax charge of GBP204m.
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 2019, there was a debit balance of GBP77m
(December 2018: GBP121m debit) in the own credit reserve. The
movement of GBP44m is principally reflected by a GBP68m gain from
the widening of Barclays' funding spreads offset by tax of
GBP24m.
Other reserves
As at 30 June 2019, there was a debit balance of GBP24m
(December 2018: GBP24m debit) in other reserves relating to
redeemed ordinary and preference shares issued by Barclays Bank
Group.
14. Contingent liabilities and commitments
As at As at
30.06.19 31.12.18
Contingent liabilities GBPm GBPm
==================================================================== ======== ========
Guarantees and letters of credit pledged as collateral security 16,106 15,046
Performance guarantees, acceptances and endorsements 5,771 4,348
==================================================================== ======== ========
Total 21,877 19,394
Commitments
==================================================================== ======== ========
Documentary credits and other short-term trade related transactions 1,273 1,741
Standby facilities, credit lines and other commitments 270,192 256,027
==================================================================== ======== ========
Total 271,465 257,768
In addition to the above, Note 15, Legal, competition and
regulatory matters details out further contingent liabilities where
it is not practicable to disclose an estimate of the potential
financial effect on Barclays Bank Group.
15. Legal, competition and regulatory matters
Barclays Bank PLC and the Barclays Bank Group face legal,
competition and regulatory challenges, many of which are beyond our
control. The extent of the impact on Barclays 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.
Investigations into certain advisory services agreements and
other matters and civil action
The UK Serious Fraud Office (SFO), the Financial Conduct
Authority (FCA), the US Department of Justice (DoJ) and the US
Securities and Exchange Commission (SEC) have been conducting
investigations into two advisory services agreements entered into
by Barclays Bank PLC. These agreements were entered into with Qatar
Holding LLC in June and October 2008 (the Agreements). The FCA
commenced an investigation into whether the Agreements may have
related to Barclays PLC's capital raisings in June and November
2008 (the Capital Raisings). The existence of the June 2008
advisory services agreement was disclosed, but the entry into the
advisory services agreement in October 2008 and the fees payable
under the Agreements, which amounted to a total of GBP322m payable
over a period of five years, were not disclosed in the
announcements or public documents relating to the Capital Raisings.
The SFO also commenced an investigation into the Agreements and
into a $3bn loan (the Loan) provided by Barclays Bank PLC in
November 2008 to the State of Qatar. In May 2018, the Crown Court
dismissed all charges against Barclays PLC and Barclays Bank PLC
brought by the SFO, and in October 2018, the High Court denied the
SFO's application to reinstate the charges, which were consequently
dismissed.
FCA Proceedings and other investigations
In 2013, the FCA issued warning notices (the Notices) finding
that, while Barclays PLC and Barclays Bank PLC believed at the time
of the execution of the Agreements that there should be at least
some unspecified and undetermined value to be derived from them,
the primary purpose of the Agreements was not to obtain advisory
services but to make additional payments, which would not be
disclosed, for the Qatari participation in the Capital Raisings.
The Notices concluded that Barclays PLC and Barclays Bank PLC were
in breach of certain disclosure-related listing rules and Barclays
PLC was also in breach of Listing Principle 3 (the requirement to
act with integrity towards holders and potential holders of the
Company's shares). In this regard, the FCA considers that Barclays
PLC and Barclays Bank PLC acted recklessly. The financial penalty
provided in the Notices against Barclays is GBP50m. Barclays PLC
and Barclays Bank PLC continue to contest the findings. The FCA
action has been stayed due to the SFO proceedings pending against
certain former Barclays executives.
In addition, the DoJ and the SEC have been conducting
investigations relating to the Agreements.
Civil Action
In 2016, PCP Capital Partners LLP and PCP International Finance
Limited (PCP) served a claim on Barclays Bank PLC seeking damages
for fraudulent misrepresentation and deceit, arising from alleged
statements made by Barclays Bank PLC to PCP in relation to the
terms on which securities were to be issued to potential investors,
allegedly including PCP, in the November 2008 capital raising. PCP
seeks damages of approximately GBP1.6bn (plus interest from
November 2017) and costs. Barclays Bank PLC is defending the claim
and trial is scheduled to commence in June 2020.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period. The financial
penalty provided in the FCA's Notices and the amount of PCP's claim
do not necessarily reflect Barclays' potential financial exposure
in respect of these matters.
Investigations into certain business relationships
In 2012, the DoJ and SEC commenced investigations in relation to
whether certain relationships with third parties who assist
Barclays PLC to win or retain business are compliant with the US
Foreign Corrupt Practices Act. Various regulators in other
jurisdictions are also being briefed on the investigations.
Separately, Barclays has been cooperating with the DoJ and SEC in
relation to an investigation into certain of its hiring practices
in Asia and elsewhere and is keeping certain regulators in other
jurisdictions informed. Barclays is in advanced discussions to
resolve this matter.
Claimed amounts/Financial impact
Barclays does not expect the financial impact of the matters
described above to be material to the Group's operating results,
cash flows or financial position.
Investigations into LIBOR and other benchmarks
Regulators and law enforcement agencies, including certain
competition authorities, from a number of governments have been
conducting investigations relating to Barclays Bank PLC's
involvement in manipulating certain financial benchmarks, such as
LIBOR and EURIBOR. Barclays PLC, Barclays Bank PLC and Barclays
Capital Inc. (BCI) have reached settlements with a number of
regulators and law enforcement agencies. Barclays Bank PLC
continues to respond to requests for information from the SFO in
relation to its ongoing LIBOR investigation, including in respect
of Barclays Bank PLC.
Claimed amounts/Financial impact
Aside from the settlements described above, it is not currently
practicable to provide an estimate of any further financial impact
of the actions described on Barclays or what effect they might have
upon Barclays' operating results, cash flows or financial position
in any particular period.
LIBOR and other benchmark civil actions
Various individuals and corporates in a range of jurisdictions
have threatened or brought civil actions against Barclays and other
banks in relation to LIBOR and/or other benchmarks. While certain
cases have been dismissed, settled or settled subject to final
approval from the relevant court (and in the case of class actions,
the right of class members to opt out of the settlement and to seek
to file their own claims), other actions remain pending and their
ultimate impact is unclear.
USD LIBOR Cases in the Multidistrict Litigation Court
The majority of the USD LIBOR cases, which have been filed in
various US jurisdictions, have been consolidated for pre-trial
purposes before a single judge in the US District Court in the
Southern District of New York (SDNY).
The complaints are substantially similar and allege, amongst
other things, that Barclays PLC, Barclays Bank PLC, 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 Securities Exchange Act of
1934 and various state laws by manipulating USD LIBOR rates.
Certain of the proposed class actions have been settled.
Barclays has settled claims purportedly brought on behalf of
plaintiffs that (i) engaged in USD LIBOR-linked over-the-counter
transactions (OTC Class); (ii) purchased USD LIBOR-linked financial
instruments on an exchange; (iii) purchased USD LIBOR-linked debt
securities; or (iv) issued loans linked to USD LIBOR (Lender Class)
and paid $120m, $20m, $7.1m and $4m respectively. The settlements
with the OTC Class and the Lender Class have received final court
approval. The other settlements remain subject to final court
approval and/or the right of class members to opt out of the
settlement and to seek to file their own claims.
The remaining putative class actions and individual actions seek
unspecified damages with the exception of five lawsuits, in which
the plaintiffs are seeking a combined total in excess of $1.25bn in
actual damages against all defendants, including Barclays Bank PLC,
plus punitive damages. Some of the lawsuits also seek trebling of
damages under the Antitrust Act and RICO.
Additional USD LIBOR Cases in the SDNY
In 2015, an individual action against Barclays Bank PLC and
other panel bank defendants was dismissed by the SDNY. The
plaintiff alleged that the panel bank defendants conspired to
increase USD LIBOR, which caused the value of bonds pledged as
collateral for a loan to decrease, ultimately resulting in the sale
of the bonds at a low point in the market. In March 2018, the court
denied the plaintiff's motion for leave to amend its complaint and
dismissed the case. The plaintiff's appeal of the court's order has
been dismissed.
Beginning in January 2019, several putative class actions were
filed in the SDNY against Barclays PLC, Barclays Bank PLC, BCI,
other financial institution defendants and Intercontinental
Exchange Inc. and certain of its affiliates (ICE), asserting
antitrust and unjust enrichment claims on allegations that,
beginning in 2014, defendants manipulated USD LIBOR through
defendants' submissions to ICE, which took over rate-setting duties
for LIBOR from the British Bankers' Association in 2014. These
actions have been consolidated.
Sterling LIBOR Case in SDNY
In 2015, a putative class action was filed in the SDNY against
Barclays Bank PLC and other Sterling LIBOR panel banks by a
plaintiff involved in exchange-traded and over-the-counter
derivatives that were linked to Sterling LIBOR. The complaint
alleges, among other things, that the defendants manipulated the
Sterling LIBOR rate between 2005 and 2010 and, in so doing,
committed CEA, Antitrust Act, and RICO violations. In 2016, this
class action was consolidated with an additional putative class
action making similar allegations against Barclays Bank PLC and BCI
and other Sterling LIBOR panel banks. The defendants' motion to
dismiss was granted in December 2018. The plaintiff has asked the
court to reconsider this decision.
Japanese Yen LIBOR Cases in SDNY
In 2012, a putative class action was filed in the SDNY against
Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a
plaintiff involved in exchange-traded derivatives. The complaint
also names members of the Japanese Bankers Association's Euroyen
Tokyo Interbank Offered Rate (Euroyen TIBOR) panel, of which
Barclays Bank PLC is not a member. The complaint alleges, amongst
other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates
and breaches of the CEA and Antitrust Act between 2006 and 2010. In
2014, the court dismissed the plaintiff's antitrust claims in full,
but the plaintiff's CEA claims remain pending. Discovery is
ongoing.
In 2017, a second putative class action concerning Yen LIBOR
which was filed in the SDNY against Barclays PLC, Barclays Bank PLC
and BCI was dismissed in full. The complaint makes similar
allegations to the 2012 class action. The plaintiffs have appealed
the dismissal.
SIBOR/SOR Case in the SDNY
In 2016, a putative class action was filed in the SDNY against
Barclays PLC, Barclays Bank PLC, BCI and other defendants, alleging
manipulation of the Singapore Interbank Offered Rate (SIBOR) and
Singapore Swap Offer Rate (SOR). The plaintiffs amended their
complaint in 2017 following dismissal by the court of the claims
against Barclays for failure to state a claim. In October 2018, the
court dismissed all claims against Barclays PLC, Barclays Bank PLC
and BCI, a decision that the plaintiffs are challenging.
Non-US Benchmarks Cases
In the UK, certain local authorities have brought claims against
Barclays asserting that they entered into loans in reliance on
misrepresentations made by Barclays in respect of its conduct in
relation to LIBOR.
In addition to the US and UK actions described above, legal
proceedings have been brought or threatened against Barclays in
connection with alleged manipulation of LIBOR and EURIBOR and other
benchmarks in the UK, a number of other jurisdictions in Europe,
Israel and Argentina. Additional proceedings in other jurisdictions
may be brought in the future.
Claimed amounts/Financial impact
Aside from the settlements described above, it is not currently
practicable to provide an estimate of any further financial impact
of the actions described on Barclays or what effect they might have
upon Barclays' operating results, cash flows or financial position
in any particular period.
Foreign Exchange Investigations
Various regulatory and enforcement authorities across multiple
jurisdictions have been investigating a range of issues associated
with Foreign Exchange sales and trading, including electronic
trading.
In 2015 Barclays reached settlements with the CFTC, the DoJ, the
NYDFS, the Board of Governors of the Federal Reserve System
(Federal Reserve) and the FCA (together, the 2015 Resolving
Authorities) in relation to investigations into certain sales and
trading practices in the Foreign Exchange market. In connection
with these settlements, Barclays paid total penalties of
approximately $2.38bn and agreed to undertake certain remedial
actions. Under the plea agreement with the DoJ, which was approved
by the US District Court for the District of Connecticut in January
2017, Barclays PLC agreed to a term of probation of three years.
Barclays also continues to provide relevant information to certain
of the 2015 Resolving Authorities.
The European Commission is one of a number of authorities still
conducting an investigation into certain trading practices in
Foreign Exchange markets. In May 2019, the European Commission
announced two settlements and Barclays has paid total penalties of
approximately EUR210m. In June 2019, the Swiss Competition
Commission announced two settlements, which require Barclays to pay
total penalties of approximately CHF 27m.
Claimed amounts/Financial impact
Aside from the settlements described above, Barclays does not
expect the financial impact of the matters described above to be
material to the Group's operating results, cash flows or financial
position.
Civil actions in respect of Foreign Exchange
Following settlement of certain investigations referred to above
in 'Foreign Exchange Investigations' a number of individuals and
corporates in a range of jurisdictions have threatened or brought
civil actions against Barclays and other banks in relation to
Foreign Exchange or may do so in the future. Certain of these cases
have been dismissed, settled or settled subject to final approval
from the relevant court (and in the case of class actions, the
right of class members to opt out of the settlement and to seek to
file their own claims).
FX Opt Out Action
In 2014, a number of civil actions filed in the SDNY alleging
manipulation of Foreign Exchange markets were combined into a
single consolidated action (Consolidated FX Action). In 2015,
Barclays Bank PLC and BCI settled the Consolidated FX Action and
paid $384m. The settlement received final court approval in August
2018. In November 2018, a group of sixteen plaintiffs (and several
of their affiliates) who opted out of the Consolidated FX Action
settlement filed a complaint in the SDNY against the Consolidated
FX Action defendants, including Barclays Bank PLC and BCI.
Retail Basis Action
A putative action was filed in the Northern District of
California (and subsequently transferred to the SDNY) against
several international banks, including Barclays PLC and BCI, on
behalf of a putative class of individuals that exchanged currencies
on a retail basis at bank branches (Retail Basis Claims). The Court
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 Barclays and
all other defendants. The plaintiffs amended their complaint and
sought to expand the action to include credit card, debit card and
wire transactions, which expansion the Court denied.
State Law FX Action
In 2016, a putative class action was filed in the SDNY under
federal, New York and California law on behalf of proposed classes
of stockholders of Exchange Traded Funds and others who supposedly
were indirect investors in FX Instruments. The plaintiffs' counsel
subsequently amended the complaint to bring claims on behalf of a
proposed class of investors under federal and various state laws
who traded FX Instruments through FX dealers or brokers not alleged
to have manipulated Foreign Exchange Rates. A different group of
plaintiffs subsequently filed another action and asserted
substantively similar claims. These two actions were consolidated
and a consolidated complaint was filed in 2017. The consolidated
action was dismissed, but the plaintiffs have filed an amended
complaint, except as to their federal claims.
Non-US FX Actions
In addition to the actions described above, legal proceedings
have been brought or are threatened against Barclays in connection
with manipulation of Foreign Exchange in the UK, a number of other
jurisdictions in Europe, Israel and Australia and additional
proceedings may be brought in the future.
Claimed amounts/Financial impact
Aside from the settlement described above, it is not currently
practicable to provide an estimate of any further financial impact
of the actions described on Barclays or what effect they might have
upon Barclays' operating results, cash flows or financial position
in any particular period.
Metals investigations
Barclays Bank PLC has provided information to the DoJ, the CFTC
and other authorities in connection with investigations into metals
and metals-based financial instruments.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period.
Civil actions in respect of the gold and silver fix
A number of civil complaints, each on behalf of a proposed class
of plaintiffs, have been consolidated and transferred to the SDNY.
The complaints allege that Barclays Bank PLC and other members of
The London Gold Market Fixing Ltd. manipulated the prices of gold
and gold derivative contracts in violation of the CEA, the
Antitrust Act, and state antitrust and consumer protection
laws.
Also, in the US, a proposed class of plaintiffs filed a
complaint against a number of banks, including Barclays Bank PLC,
BCI and Barclays Capital Services Ltd., alleging manipulation of
the price of silver in violation of the CEA and antitrust laws. The
court has dismissed this action as against the Barclays
entities.
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 in violation of Canadian
law.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period.
US residential mortgage related litigation
There are various pending civil actions relating to US
Residential Mortgage-Backed Securities (RMBS). Barclays was the
sole provider of various loan-level representations and warranties
(R&Ws) with respect to approximately $5bn of Barclays sponsored
securitisations. In addition, an entity that Barclays acquired in
2007 (Acquired Subsidiary) provided R&Ws on $19.4bn of loans it
sold to third parties. There are no stated expiration provisions
applicable to most R&Ws made by Barclays or the Acquired
Subsidiary. Under certain circumstances, Barclays and/or the
Acquired Subsidiary may be required to repurchase the related loans
or make other payments related to such loans if the R&Ws are
breached.
The unresolved repurchase requests received on or before 30 June
2019 associated with R&Ws made by Barclays or the Acquired
Subsidiary had an original unpaid principal balance of
approximately $2.1bn at the time of such sale.
The unresolved repurchase requests described above relate to
civil actions that have been commenced by the trustees for certain
RMBS securitisations in which the trustees allege that Barclays
and/or the Acquired Subsidiary must repurchase loans that violated
the operative R&Ws. Such trustees making repurchase requests
have also alleged that the operative R&Ws may have been
violated with respect to a greater (but unspecified) amount of
loans than the amount of loans previously stated in specific
repurchase requests made by such trustees. These civil actions are
ongoing. An intermediate appellate court has found that claims
related to certain R&Ws are time-barred. This decision is being
appealed.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of any
further financial impact of the actions described on Barclays or
what effect they might have upon Barclays' operating results, cash
flows or financial position in any particular period.
Alternative trading systems
In 2014, the New York State Attorney General (NYAG) filed a
complaint (NYAG Complaint) against Barclays PLC and BCI in the
Supreme Court of the State of New York alleging, amongst other
things, that Barclays PLC and BCI engaged in fraud and deceptive
practices in connection with LX, Barclays' SEC-registered
alternative trading system (ATS). In February 2016, Barclays
reached settlement agreements with the SEC and NYAG, which required
Barclays to pay $35m to each. Following the filing of the NYAG
Complaint, Barclays PLC and BCI were also named in a putative
shareholder securities class action. The parties have agreed to a
settlement of this action for $27m, which has received final court
approval.
Claimed amounts/Financial impact
Aside from the settlements described above, there is no
financial impact on Barclays' operating results, cash flows or
financial position.
Treasury auction securities civil actions and related
matters
Various civil actions have been filed against Barclays Bank PLC,
BCI and other financial institutions alleging violations of
antitrust and other laws relating to the markets for US Treasury
securities and Supranational, Sovereign and Agency securities.
Certain governmental authorities are also conducting investigations
relating to trading of certain government and agency securities in
various markets.
Numerous putative class action complaints have been filed in US
Federal Court against Barclays Bank PLC, BCI and other financial
institutions that have served as primary dealers in US Treasury
securities. Those actions have been consolidated and in 2017,
plaintiffs in the putative class action filed a consolidated
amended complaint in the US Federal Court in New York against the
defendants as well as certain corporations that operate electronic
trading platforms on which US Treasury securities are traded. The
complaint purports to assert claims under US federal antitrust laws
and state common law based on allegations 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
defendants have filed a motion to dismiss.
In addition, certain plaintiffs have filed a related, direct
action against BCI and certain other financial institutions that
have served as primary dealers in US Treasury securities. This
complaint alleges that defendants conspired to fix and manipulate
the US Treasury securities market in violation of US federal
antitrust laws, the CEA and state common law.
Barclays PLC, Barclays Bank PLC, BCI, Barclays Execution
Services Limited (formerly Barclays Services Limited), Barclays
Capital Securities Limited and certain other financial institutions
have been named as defendants in a civil antitrust complaint that
alleges that the defendants engaged in a conspiracy to fix prices
and restrain competition in the market for US dollar-denominated
Supranational, Sovereign and Agency bonds (SSA Bonds) from 2009
through 2015. The defendants have moved to dismiss the action. In
February 2019, indirect purchasers of SSA Bonds filed a separate
but related complaint making similar allegations.
Certain governmental authorities are conducting investigations
into activities relating to the trading of certain government and
agency securities in various markets and Barclays has been
providing information to various authorities on an ongoing
basis.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period.
US Government Sponsored Entities Bond Civil Class Action
In a putative consolidated class action filed in the SDNY in
2019, plaintiffs allege that BCI and certain other bond dealers
conspired to fix the prices of government sponsored entity bonds in
violation of US antitrust law from January 2009 through January
2016.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the matter described on Barclays or what effect
it might have upon Barclays' operating results, cash flows or
financial position in any particular period.
Mexican Government Bond civil action
In 2018, a putative consolidated class action against various
financial institutions including Barclays PLC, Barclays Bank PLC,
BCI, Barclays Capital Securities Limited, Barclays Bank Mexico,
S.A., Grupo Financiero Barclays Mexico, S.A. de C.V. and Banco
Barclays S.A. was consolidated in the US District Court in the
SDNY. The plaintiffs assert antitrust and state law claims arising
out of an alleged conspiracy to fix the prices of Mexican
Government Bonds from 2006 through mid-2017. Defendants have moved
to dismiss the consolidated action.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period.
BDC Finance L.L.C.
In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the NY
Supreme Court alleging that Barclays Bank PLC had breached a
contract in connection with a portfolio of total return swaps
governed by an ISDA Master Agreement (collectively, the Agreement)
when it failed to transfer approximately $40m of alleged excess
collateral in response to BDC's 2008 demand (Demand).
BDC asserts that under the Agreement Barclays Bank PLC was not
entitled to dispute the Demand before transferring the alleged
excess collateral and that even if the Agreement entitled Barclays
Bank PLC to dispute the Demand before making the transfer, Barclays
Bank PLC failed to dispute the Demand. BDC demands damages
totalling $298m plus attorneys' fees, expenses, and pre-judgement
interest. Following a trial on certain liability issues, the court
ruled in December 2018 that Barclays Bank PLC was not a defaulting
party. BDC has appealed that decision.
In 2011, BDC's investment advisor, BDCM Fund Adviser, L.L.C. and
its parent company, Black Diamond Capital Holdings, L.L.C. 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 Agreement, asserting claims for violation
of the Connecticut Unfair Trade Practices Act and tortious
interference with business and prospective business relations. The
Connecticut case is currently stayed.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period. BDC has made claims
against Barclays totalling $298m plus attorneys' fees, expenses,
and pre-judgement interest. This amount does not necessarily
reflect Barclays' potential financial exposure if a ruling were to
be made against it.
Civil actions in respect of the US Anti-Terrorism Act
Civil complaints against Barclays Bank PLC and other banks
allege engagement in a conspiracy and violation of the US
Anti-Terrorism Act (ATA). These include various civil complaints
filed in the US Federal Courts in the EDNY and SDNY by separate
groups of plaintiffs (aggregating over 4,000) alleging that
Barclays Bank PLC and a number of other banks engaged in a
conspiracy and violated the ATA by facilitating US dollar
denominated transactions for the Government of Iran and various
Iranian banks, which in turn funded acts of terrorism that injured
or killed the plaintiffs' family members. The plaintiffs seek to
recover for pain, suffering and mental anguish pursuant to the
provisions of the ATA, which allows for the tripling of any proven
damages and attorneys' fees. In respect of a motion by defendants
to dismiss one of the complaints, in July 2018, a magistrate judge
(to whom the court referred the motion) issued a recommendation
that the motion be denied; the defendants objected to that
recommendation; and the motion is pending before the court. In
respect of another complaint, the defendants' motion to dismiss was
granted in March 2019, but the plaintiffs have moved to file an
amended complaint.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period.
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, treble
damages and legal fees. Plaintiffs include certain swap execution
facilities, as well as buy-side investors. The buy-side investors
claim to represent a class that transacted in fixed-for-floating
IRS with defendants in the US from 2008 to the present, including,
for example, US retirement and pension funds, municipalities,
university endowments, corporations, insurance companies and
investment funds.
In 2017, a separate suit was filed in the US District Court in
the SDNY against the same financial institution defendants in the
IRS cases, including Barclays PLC, Barclays Bank PLC, and BCI,
claiming that certain conduct alleged in the IRS cases also caused
plaintiff to suffer harm with respect to the Credit Default Swaps
market. The defendants have moved to dismiss this action.
Separately, in June 2018, trueEX LLC filed an antitrust class
action in the SDNY against eleven financial institutions that act
as dealers in the IRS market, including Barclays Bank PLC and BCI,
alleging that the defendants unlawfully conspired to block trueEX
from successfully entering the market with its IRS trading
platform. trueEX LLC also alleges that the defendants more
generally boycotted other anonymous, all-to-all IRS trading
platforms. In November 2018, the court dismissed certain claims for
unjust enrichment and tortious interference, but denied a motion to
dismiss the federal and state antitrust claims which remain
pending.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the actions described on Barclays or what
effect they might have upon Barclays' operating results, cash flows
or financial position in any particular period.
Portuguese Competition Authority investigation
The Portuguese Competition Authority is investigating whether
competition law was infringed by the exchange of information about
retail credit products amongst 15 banks in Portugal, including
Barclays, over a period of 11 years with particular reference to
mortgages, consumer lending and lending to small and medium
enterprises. Barclays is cooperating with the investigation.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the matter described on Barclays or what effect
it might have upon Barclays' operating results, cash flows or
financial position in any particular period.
Investigation into collections and recoveries relating to
unsecured lending
In February 2018, the FCA commenced an enforcement investigation
in relation to whether or not Barclays implemented effective
systems and controls with respect to collections and recoveries and
whether or not it paid due consideration to the interests of
customers in default and arrears.
Claimed amounts/Financial impact
It is not currently practicable to provide an estimate of the
financial impact of the investigation on Barclays or what effect
that it might have upon Barclays' operating results, cash flows or
financial position in any particular period.
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 GBP181m (inclusive of interest), of
which Barclays would expect to attribute an amount of approximately
GBP128m to Barclays Bank UK PLC and GBP53m to Barclays Bank PLC.
Barclays has appealed HMRC's decision to the First Tier Tribunal
(Tax Chamber).
Claimed amounts/Financial impact
The total amount of the HMRC assessments is approximately
GBP181m, inclusive of interest.
General
Barclays Bank PLC and its subsidiaries are engaged in various
other legal, competition and regulatory matters in the UK, the US
and a number of other overseas jurisdictions. The Barclays Bank
Group is subject to legal proceedings brought by and against
Barclays 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,
money laundering, financial crime, employment, environmental and
other statutory and common law issues.
The Barclays Bank 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 Barclays is or has been engaged. Barclays 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 Bank PLC does not expect the
ultimate resolution of any of these other matters to have a
material adverse effect on its 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 Bank PLC's results,
operations or cash flow for a particular period, depending on,
amongst other things, the amount of the loss resulting from the
matter(s) and the amount of profit otherwise reported for the
reporting period.
16. Related party transactions
Parent company
The parent company, which is also the ultimate parent company,
is Barclays PLC, which holds 100% of the issued ordinary shares of
Barclays Bank PLC.
Fellow subsidiaries
Transactions between the Barclays Bank Group and other
subsidiaries of the parent company meet the definition of related
party transactions.
Amounts included in the Barclays Bank Group's financial
statements with other Barclays Group companies are as follows:
Half year ended 30.06.19 Half year ended 30.06.18
=========================== ===========================
Parent Fellow subsidiaries Parent Fellow subsidiaries
GBPm GBPm GBPm GBPm
=================== ====== =================== ====== ===================
Total income (275) 32 (77) 1
Operating expenses (46) (1,546) (72) (2,045)
As at 30.06.19 As at 31.12.18
=========================== ===========================
Parent Fellow subsidiaries Parent Fellow subsidiaries
GBPm GBPm GBPm GBPm
=================== ====== =================== ====== ===================
Total assets 1,707 2,332 727 1,091
Total liabilities 26,315 1,272 21,405 2,058
Except for the above, no related party transactions that have
taken place in the half year ended 30 June 2019 have materially
affected the financial position or performance of the Barclays Bank
Group during this period.
17. Barclays Bank PLC parent condensed balance sheet
As at As at
30.06.19 31.12.18
Assets GBPm GBPm
================================================================== ======== ========
Cash and balances at central banks 104,789 126,002
Cash collateral and settlement balances 87,509 66,196
Loans and advances at amortised cost 159,466 156,764
Reverse repurchase agreements and other similar secured lending 12,108 5,766
Trading portfolio assets 89,066 73,480
Financial assets at fair value through the income statement 180,560 179,365
Derivative financial instruments 243,388 221,247
Financial assets at fair value through other comprehensive income 54,659 43,706
Investment in associates and joint ventures 138 140
Investment in subsidiaries 16,310 14,958
Goodwill and intangible assets 117 123
Property, plant and equipment(1) 445 103
Current tax assets 1,782 1,439
Deferred tax assets 1,080 1,249
Retirement benefit schemes 1,850 1,748
Other assets 4,087 1,110
Total assets 957,354 893,396
Liabilities
================================================================== ======== ========
Deposits at amortised cost 240,920 231,017
Cash collateral and settlement balances 77,817 56,358
Repurchase agreements and other similar secured borrowing 10,031 11,113
Debt securities in issue 28,384 26,391
Subordinated liabilities 36,137 35,085
Trading portfolio liabilities 50,940 46,626
Financial liabilities designated at fair value 220,597 216,966
Derivative financial instruments 238,992 221,590
Current tax liabilities 379 376
Deferred tax liabilities 332 -
Retirement benefit liabilities 115 124
Other liabilities(1) 4,723 3,295
Provisions 610 818
Total liabilities 909,977 849,759
Equity
================================================================== ======== ========
Called up share capital and share premium 2,348 2,348
Other equity instruments 12,168 10,361
Other reserves 1,478 383
Retained earnings 31,383 30,545
================================================================== ======== ========
Total equity 47,377 43,637
Total liabilities and equity 957,354 893,396
1 Barclays adopted the accounting standard IFRS 16 on 1 January 2019.
The impact on adoption was an increase in property, plant and equipment
of GBP0.3bn, an increase in liabilities of GBP0.3bn, with no material
impact on retained earnings.
Following a decision to move all European Branch operations to
Barclays Bank Ireland PLC, Barclays Bank PLC transferred its
businesses in France, Italy, Netherlands, Portugal, Spain and
Sweden in Q1 2019.
There was no impact on the consolidated financial statements of
the Barclays Bank PLC Group. The most material impacts on the
balance sheet of Barclays Bank PLC affect loans and advances at
amortised cost of GBP7,043m, deposits at amortised cost of
GBP3,455m, and repurchase agreements and other similar secured
lending of GBP2,827m. The total net assets transferred to Barclays
Bank Ireland PLC were GBP181m in exchange for 99.4m ordinary shares
issued by Barclays Bank Ireland PLC. As a result, Barclays Bank PLC
increased its investment in Barclays Bank Ireland PLC by
GBP181m.
In addition to this, in March 2019, Barclays Bank PLC
transferred to Barclays Bank Ireland PLC financial liabilities
designated at fair value of GBP3,780m, in exchange for cash
consideration.
Other Information
Results timetable(1) Date
============================================================== ============== ======== ======== ======== ========
2019 Annual Report 13 February 2020
% Change(3)
Exchange rates(2) 30.06.19 31.12.18 30.06.18 31.12.18 30.06.18
============================================================== ============== ======== ======== ======== ========
Period end - USD/GBP 1.27 1.28 1.32 (1%) (4%)
6 month average - USD/GBP 1.29 1.29 1.38 - (7%)
3 month average - USD/GBP 1.29 1.29 1.36 - (5%)
Period end - EUR/GBP 1.12 1.12 1.13 - (1%)
6 month average - EUR/GBP 1.15 1.12 1.14 3% 1%
3 month average - EUR/GBP 1.14 1.13 1.14 1% -
For further information please contact
Investor relations Media relations
============================================================== ======================================================
Lisa Bartrip +44 (0) 20 7773 0708 Thomas Hoskin +44 (0) 20 7116 4755
More information on Barclays Bank PLC 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:
1026167.
1 Note that this date is provisional and subject to change.
2 The average rates shown above are derived from daily spot rates
during the year.
3 The change is the impact to GBP reported information.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SDEEFFFUSEEW
(END) Dow Jones Newswires
August 01, 2019 02:15 ET (06:15 GMT)
Barclays (LSE:96ES)
Historical Stock Chart
From Jun 2024 to Jul 2024
Barclays (LSE:96ES)
Historical Stock Chart
From Jul 2023 to Jul 2024
