TIDMBARC

RNS Number : 6727G

Barclays PLC

28 July 2021

Barclays PLC

Interim Results Announcement

30 June 2021

Table of Contents

 
Results Announcement                             Page 
Notes                                               1 
Performance Highlights                              2 
Group Chief Executive Officer's Review              6 
Group Finance Director's Review                     7 
Results by Business 
--     Barclays UK                                  9 
--     Barclays International                      11 
--     Head Office                                 16 
Quarterly Results Summary                          17 
Quarterly Results by Business                      18 
Performance Management 
--     Margins and Balances                        24 
Risk Management 
--     Risk Management and Principal Risks         26 
--     Credit Risk                                 28 
--     Market Risk                                 49 
--     Treasury and Capital Risk                   50 
Statement of Directors' Responsibilities           65 
Independent Review Report to Barclays PLC          66 
Condensed Consolidated Financial Statements        67 
Financial Statement Notes                          78 
Appendix: Non-IFRS Performance Measures           104 
Shareholder Information                           109 
 

BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839.

Notes

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 (as it forms part of Retained EU Law as defined in the European Union (Withdrawal) Act 2018).

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the six months ended 30 June 2021 to the corresponding six months of 2020 and balance sheet analysis as at 30 June 2021 with comparatives relating to 31 December 2020 and 30 June 2020. 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 27 July 2021, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2020, 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 is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

Non-IFRS performance measures

Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 97 to102 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by members of the management of the Group (including, without limitation, during management presentations to financial analysts) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, income growth, assets, impairment charges, provisions, business strategy, capital, leverage and other regulatory ratios, capital distributions (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets, estimates of capital expenditures, plans and objectives for future operations, projected employee numbers, IFRS impacts and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by 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, the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions; the effects of any volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entity within the Group or any securities issued by such entities; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the UK's exit from the European Union ("EU"), the effects of the EU-UK Trade and Cooperation Agreement and the disruption that may subsequently result in the UK and globally; the risk of cyber-attacks, information or security breaches or technology failures on the Group's reputation, business or operations; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual financial position, future results, capital distributions, capital, leverage or other regulatory ratios or other financial and non-financial metrics or performance measures may differ materially from the statements or guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in Barclays PLC's filings with the SEC (including, without limitation, Barclays PLC's Annual Report on Form 20-F for the fiscal year ended 31 December 2020 and Interim Results Announcement for the six months ended 30 June 2021 filed on Form 6-K), which are available on the SEC's website at www.sec.gov .

Subject to Barclays' obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Performance Highlights

Group return on tangible equity (RoTE) of 16.4% for H121. Announced increased capital distributions, with half year dividend of 2.0p per share and intend to initiate a further share buyback of up to GBP500m

Barclays delivered a strong Group profit before tax in H121 of GBP5.0bn (H120: GBP1.3bn) and attributable profit of GBP3.8bn (H120: GBP0.7bn). This delivered a RoTE of 16.4% (H120: 2.9%) and earnings per share (EPS) of 22.2p (H120: 4.0p)

 
Income                   Group income of GBP11.3bn down 3% versus prior year 
                          reflecting currency headwinds 
                         --   Barclays International income of GBP8.2bn, down 
                               5% versus prior year 
   Resilient income           -   Corporate and Investment Bank (CIB) income of 
 as the Group continues            GBP6.6bn, down 5% with strong Equities and Investment 
    to benefit from                Banking fees performance, up 38% and 27% respectively, 
   diversified income              whilst FICC was down 37% versus a strong H120 
        streams 
                              -   Consumer, Cards and Payments (CC&P) income of 
                                   GBP1.6bn, down 4% primarily reflecting lower 
                                   interest earning US cards balances 
                         --   Barclays UK income of GBP3.2bn increased 1% reflecting 
                               strong mortgages performance with record net balance 
                               growth of GBP6.9bn, partially offset by lower 
                               interest earning UK cards balances and the effect 
                               of lower interest rates 
----------------------- 
                         --   Excluding the impact of the 10% depreciation of 
                               average USD against GBP, Group income was up versus 
                               prior year 
-----------------------      ------------------------------------------------------------ 
Credit impairment        Group credit impairment net release of GBP0.7bn (H120: 
                          GBP3.7bn charge) 
Improved macroeconomic   --   The net release included a reversal of GBP1.1bn 
   outlook and benign          in non-default charges, primarily reflecting the 
   credit environment          improved macroeconomic outlook. Excluding this 
                               reversal, the charge was GBP0.4bn, reflecting 
                               reduced unsecured lending balances and the benign 
                               credit environment 
-----------------------      ------------------------------------------------------------ 
Costs                    Group total operating expenses of GBP7.2bn up 10% 
                          versus prior year, resulting in a cost: income ratio 
                          of 64% (H120: 57%) 
 Investing for income    --   Total operating expenses included structural cost 
  growth whilst taking         actions of GBP321m (H120: GBP78m), primarily related 
    structural cost            to the real estate review in Q221, higher performance 
        actions                costs reflective of improved returns, and continued 
                               investment and business growth, partially offset 
                               by the benefit from the depreciation of average 
                               USD against GBP and efficiency savings 
-----------------------      ------------------------------------------------------------ 
Capital / capital        Common equity tier 1 (CET1) ratio of 15.1%, in line 
 distributions            with December 2020 
  Announced increased    --   Half year dividend of 2.0p (H120: 0p) per share 
 capital distributions         to be paid on 17 September 2021 
----------------------- 
                         --   Completed GBP700m share buyback in April 
----------------------- 
                         --   Intend to initiate a further share buyback of 
                               up to GBP500m, which would have an effect of 17bps 
                               on the CET1 ratio 
-----------------------      ------------------------------------------------------------ 
 

Q221 performance

 
     Q221 performance        Q221 Group profit before tax of GBP2.6bn (Q220: GBP0.4bn), 
                              RoTE of 18.1% (Q220: 0.7%) and EPS of 12.3p (Q220: 
                              0.5p) 
 
    Robust performance, 
     with profitability 
      benefiting from 
    a credit impairment 
      net release and 
 the upwards re-measurement 
         of UK DTAs 
                             --   Q221 Group income of GBP5.4bn, up 1% versus prior 
                                   year despite currency headwinds . Barclays International 
                                   income of GBP3.8bn was down 5% versus prior year, 
                                   reflecting CIB income of GBP3.0bn, down 10% versus 
                                   prior year and CC&P income of GBP0.8bn, up 21% 
                                   versus prior year driven by a valuation loss in 
                                   2020. Barclays UK income of GBP1.6bn was up 11% 
                                   versus prior year 
                             --   Q221 Group credit impairment net release of GBP0.8bn 
                                   (Q220: GBP1.6bn charge) , reflecting a reversal 
                                   of GBP1.0bn in non-default charges, primarily 
                                   reflecting the improved macroeconomic outlook. 
                                   Excluding this reversal, the charge was GBP0.2bn, 
                                   which is broadly aligned with prior quarter 
                             --   Q221 Group total operating expenses of GBP3.7bn, 
                                   up GBP0.3bn versus prior year , reflecting structural 
                                   cost actions 
                             --   Q221 attributable profit of GBP2.1bn (Q220: GBP0.1bn), 
                                   which included an income statement tax benefit 
                                   of GBP0.4bn on the upwards re-measurement of UK 
                                   deferred tax assets (DTAs) 
                             --   The CET1 ratio as at June 2021 was 15.1%, up 
                                   50bps in the quarte r, driven by profits and lower 
                                   Risk Weighted Assets (RWAs) 
                                 ---------------------------------------------------------- 
 

Group outlook and targets

 
                            Returns 
                            --   Expect to deliver a RoTE above 10% in 2021 
 
                            Impairment 
                            --   The quarterly impairment run rate is expected 
                                  to remain below historical levels in coming quarters 
                                  given reduced unsecured lending balances and the 
                                  improved macroeconomic outlook, acknowledging 
                                  the continuing uncertainty 
 
                            Costs 
                            --   FY21 costs, excluding structural cost actions 
                                  and performance costs, are expected to be broadly 
                                  in line with FY20(1) 
                            --   Total full year 2021 costs are expected to be 
                                  above 2020, due to higher structural cost actions, 
                                  including a real estate charge in Q221, and higher 
                                  performance costs, reflecting improved returns 
 
                            Capital 
                            --   FY21 CET1 ratio is expected to remain above the 
                                  target range of 13-14%, given the economic environment 
                                  remains uncertain and capital headwinds in 2022, 
                                  including the c.40bps impact from the reversal 
                                  of software amortisation benefit from 1 January 
                                  2022 
 
                            Capital returns 
                            --   Barclays' capital returns policy incorporates 
                                  a progressive ordinary dividend, supplemented 
                                  by additional cash returns, including share buybacks 
                                  as and when appropriate 
         Outlook            --   Dividends will continue to be paid semi-annually, 
 Whilst the macroeconomic         with the half year dividend expected to represent, 
      environment has             under normal circumstances, around one-third of 
   improved, the outlook          the total dividend for the year 
     remains uncertain 
   and subject to change 
     depending on the 
 evolution and persistence 
      of the COVID-19 
         pandemic 
                                -------------------------------------------------------- 
                            Continue to target the following over the medium term: 
-------------------------- 
                            --   Returns: RoTE of greater than 10% 
                            --   Cost efficiency: Cost: income ratio below 60% 
         Targets            --   Capital adequacy: CET1 ratio in the range of 13-14% 
--------------------------      -------------------------------------------------------- 
 
 
 1   Group cost outlook is based on an average rate of 1.38 (USD/GBP) 
      in H221 and subject to foreign currency movements. 
 
 
Barclays Group results 
 for the half year ended 
                                                        30.06.21        30.06.20 
                                                            GBPm            GBPm        % Change 
Net interest income                                        3,903           4,223             (8) 
Net fee, commission and other income                       7,412           7,398 
================================================  ==============  ==============  ============== 
Total income                                              11,315          11,621             (3) 
Credit impairment releases/(charges)                         742         (3,738) 
================================================  ==============  ==============  ============== 
Net operating income                                      12,057           7,883              53 
Operating expenses                                       (7,132)         (6,563)             (9) 
Litigation and conduct                                      (99)            (30) 
================================================  ==============  ==============  ============== 
Total operating expenses                                 (7,231)         (6,593)            (10) 
Other net income/expenses                                    153            (18) 
================================================  ==============  ==============  ============== 
Profit before tax                                          4,979           1,272 
Tax charge                                                 (759)           (113) 
================================================  ==============  ==============  ============== 
Profit after tax                                           4,220           1,159 
Non-controlling interests                                   (19)            (37)              49 
Other equity instrument holders                            (389)           (427)               9 
================================================  ==============  ==============  ============== 
Attributable profit                                        3,812             695 
 
Performance measures 
================================================  ==============  ==============  ============== 
Return on average tangible shareholders' equity            16.4%            2.9% 
Average tangible shareholders' equity (GBPbn)               46.5            48.6 
Cost: income ratio                                           64%             57% 
Loan loss rate (bps)                                           -             207 
Basic earnings per share                                   22.2p            4.0p 
Dividend per share                                          2.0p               - 
Basic weighted average number of shares (m)               17,140          17,294 
Period end number of shares (m)                           16,998          17,345 
Share buyback announced (GBPm)                               500               - 
Total payout equivalent per share                           4.9p               - 
 
                                                  As at 30.06.21  As at 31.12.20  As at 30.06.20 
Balance sheet and capital management(1)                    GBPbn           GBPbn           GBPbn 
================================================  ==============  ==============  ============== 
Loans and advances at amortised cost                       348.5           342.6           354.9 
Loans and advances at amortised cost impairment 
 coverage ratio                                             1.8%            2.4%            2.5% 
Deposits at amortised cost                                 500.9           481.0           466.9 
Tangible net asset value per share                          281p            269p            284p 
Common equity tier 1 ratio                                 15.1%           15.1%           14.2% 
Common equity tier 1 capital                                46.2            46.3            45.4 
Risk weighted assets                                       306.4           306.2           319.0 
Average UK leverage ratio                                   4.8%            5.0%            4.7% 
UK leverage ratio                                           5.0%            5.3%            5.2% 
 
Funding and liquidity 
================================================  ==============  ==============  ============== 
Group liquidity pool (GBPbn)                                 291             266             298 
Liquidity coverage ratio                                    162%            162%            186% 
Loan: deposit ratio                                          70%             71%             76% 
 
 
 1   Refer to pages 54 to 60 for further information on how capital, 
      RWAs and leverage are calculated. 
 

Group Chief Executive Officer's Review

"This has been a strong first half, clearly demonstrating the benefits of our resilient and diversified universal bank in supporting the growth of capital markets, our corporate clients and retail customers. Barclays UK, and the CIB and CC&P businesses within Barclays International have all delivered strong double-digit RoTE. Our investment banking fees and equities businesses have delivered record income(1) , and we are seeing encouraging signs of recovery in consumer banking. Our profitability, strong capital position and balance sheet have enabled us to increase capital distributions to shareholders.

We are starting to see the resurgence of activity across our businesses, with Group income up on the same period last year when excluding the impact of FX movements. Our CIB business is well-positioned to benefit from continued growth in debt and equity capital markets, with Global Markets and Investment Banking fees income up 36% since 2019, and our strong retail businesses are poised to support and benefit from a consumer recovery.

We are also continuing to build our presence where we see further opportunities to scale, by organically growing our own products and service, and by partnering. Whilst we continue to develop our leading payments services including our new Barclays Cubed platform, we are also able to partner with major businesses in our US consumer banking business. In CIB, we are enhancing our ability to compete for client business with a stronger product and service set, from transaction banking to our equity franchise, alongside a build-out of our sectoral expertise in healthcare, technology and sustainability.

We will continue to invest behind those opportunities we see for growing income and returns across our businesses, whilst also driving efficiencies and savings across Barclays. Excluding performance costs and structural cost actions, costs in 2021 will be broadly in line with 2020(2) .

Against this backdrop of economic recovery, our robust approach to risk management means we are making a net impairment release of GBP0.7bn versus a charge of GBP3.7bn in H120. We also delivered a CET1 ratio of 15.1%, and increased capital distributions, with the announcement of a half year dividend of 2 pence per share, alongside the intention to initiate a share buyback of up to GBP500m. This is in addition to the GBP700m share buyback completed in April.

Alongside the role we play in supporting economic growth, we are firmly focused on our wider societal responsibilities. We continue to drive hard on our ambition to be a net zero bank, and support the aims of the Paris Agreement, already having provided nearly half of our GBP100bn green financing commitment through our capital markets and lending expertise. We continue to develop our ability to measure our financed emissions and track them at a portfolio level through our unique BlueTrack (TM) methodology.

We have also demonstrated our ability, and willingness, to support customers and clients through the pandemic, and we are mindful that this support will need to continue as we see the pandemic subside.

Taken together, we continue to invest behind opportunities for growth, manage our capital and balance sheet conservatively, and focus on our role in society. With a first half profit before tax of GBP5bn, quadruple the same period last year, and a RoTE of 16.4%, this is a good first half performance. It provides a strong platform on which to build in the second half, and to deliver a full year RoTE in excess of 10%."

James E Staley, Group Chief Executive Officer

 
 1   Period covering Q114 - Q221. Pre 2014 financials were not restated 
      following re-segmentation in Q116. 
 2   Group cost outlook is based on an average rate of 1.38 (USD/GBP) 
      in H221 and subject to foreign currency movements. 
 

Group Finance Director's Review

Group performance

 
 --   Barclays delivered a profit before tax of GBP4,979m (H120: GBP1,272m), 
       RoTE of 16.4% (H120: 2.9%), and EPS of 22.2p (H120: 4.0p). Profitability 
       benefitted from a credit impairment net release and the upwards 
       re-measurement of UK DTAs. The 10% depreciation of average USD 
       against GBP adversely impacted income and profits and positively 
       impacted total operating expenses 
 --   Total income decreased to GBP11,315m (H120: GBP11,621m). Barclays 
       UK income increased 1%. Barclays International income decreased 
       5%, with CIB income down 5% and CC&P income down 4%. Excluding 
       the impact of the 10% depreciation of average USD against GBP, 
       total income was up, reflecting the Group's diversified income 
       streams 
 --   Credit impairment net release of GBP742m (H120: GBP3,738m charge) 
       driven by an improved macroeconomic outlook used in the Q221 scenario 
       refresh, lower unsecured lending balances and a benign credit environment. 
       Barclays has maintained and refined management judgements in respect 
       of customers and clients considered to be potentially more vulnerable 
       as government and other support schemes start to reduce. The reduction 
       in unsecured lending balances and growth in secured balances, with 
       the mix impact contributing to a decrease in the Group's loan coverage 
       ratio to 1.8% (December 2020: 2.4%), with an unsecured loan coverage 
       ratio at 10.2% (December 2020: 12.3%) and wholesale loan coverage 
       ratio at 1.1% (December 2020: 1.5%) 
 --   Total operating expenses increased 10% to GBP7,231m, due to structural 
       cost actions of GBP321m primarily relating to the real estate review, 
       higher performance costs that reflect improvement in returns, and 
       continued investment and business growth, partially offset by efficiency 
       savings. This resulted in a cost: income ratio of 64% (H120: 57%) 
 --   The effective tax rate was 15.2% (H120: 8.9%). This reflects the 
       GBP392m tax benefit recognised for the re-measurement of the Group's 
       UK DTAs as a result of the UK corporation tax rate increase from 
       19% to 25% from 1 April 2023 
 --   Attributable profit was GBP3,812m (H120: GBP695m) 
 --   As a result of the share buyback completed in April, the period 
       end number of shares was 16,998m (December 2020: 17,359m) 
 --   Total assets increased to GBP1,376bn (December 2020: GBP1,350bn) 
       primarily due to a GBP26bn increase in cash at central banks, a 
       GBP19bn increase in trading portfolio assets due to increased activity 
       and a GBP19bn increase in financial assets at fair value due to 
       an increase in secured lending, partially offset by a GBP46bn decrease 
       in derivative assets driven by an increase in major interest rate 
       curves 
 --   Tangible net asset value (TNAV) per share increased to 281p (December 
       2020: 269p) primarily reflecting 22.2p of EPS, partially offset 
       by negative reserve movements 
 

Group capital and leverage

 
 --   The CET1 ratio remained stable at 15.1% (December 2020: 15.1%) 
      -   CET1 capital reduced by GBP0.1bn to GBP46.2bn (December 2020: 
           GBP46.3bn) as profit before tax of GBP5.0bn was offset by the 
           removal of temporary regulatory supporting measures introduced 
           in 2020, dividends paid and foreseen and pensions deficit contribution 
           payments. The GBP1.1bn release of non-defaulted credit impairment 
           was more than offset by a reduction in IFRS 9 transitional relief 
           which also decreased due to impairment migrations from stage 
           2 to stage 3 and the relief on the pre-2020 impairment charge 
           reducing from 70% to 50% in 2021 
      -   RWAs remained broadly stable at GBP306.4bn (December 2020: GBP306.2bn) 
           primarily due to increased client and trading activity within 
           CIB and growth in mortgages within Barclays UK, partially offset 
           by lower consumer lending 
 --   The average UK leverage ratio decreased to 4.8% (December 2020: 
       5.0%). The average leverage exposure increased by GBP45.1bn to 
       GBP1,192.0bn (December 2020: GBP1,146.9bn) largely driven by an 
       increase in securities financing transactions (SFTs), trading portfolio 
       assets (TPAs) and potential future exposure (PFE) on derivatives 
 

Group funding and liquidity

 
 --   The liquidity pool was GBP291bn (December 2020: GBP266bn) and the 
       liquidity coverage ratio remained significantly above the 100% 
       regulatory requirement at 162% (December 2020: 162%), equivalent 
       to a surplus of GBP108bn (December 2020: GBP99bn). The increase 
       in the pool is driven by continued deposit growth, further borrowing 
       from the Bank of England's Term Funding Scheme with additional 
       incentives for SMEs and a seasonal increase in short-term wholesale 
       funding, which were partly offset by an increase in business funding 
       consumption 
 --   Wholesale funding outstanding, excluding repurchase agreements, 
       was GBP158.7bn (December 2020: GBP145.0bn). The Group issued GBP5.9bn 
       equivalent of minimum requirement for own funds and eligible liabilities 
       (MREL) instruments from Barclays PLC (the Parent company) during 
       the year. The Group is well advanced in its MREL issuance plans 
       relative to the estimated 1 January 2022 requirement 
 

Capital distributions

 
 --   Barclays understands the importance of delivering attractive total 
       cash returns to shareholders. Barclays is therefore committed to 
       maintaining an appropriate balance between total cash returns to 
       shareholders, investment in the business and maintaining a strong 
       capital position. Going forward, Barclays intends to pay a progressive 
       ordinary dividend, taking into account these objectives and the 
       earnings outlook of the Group. It is also the Board's intention 
       to continue to supplement the ordinary dividends with additional 
       cash returns, including share buybacks, to shareholders as and 
       when appropriate 
 --   Barclays will pay a half year dividend per share of 2.0p on 17 
       September 2021, and intends to initiate a share buyback of up to 
       GBP500m which is expected to commence in Q321. This is in addition 
       to the GBP700m share buyback completed in April 
 --   The Board will assess the appropriate level and form of capital 
       distributions as the year progresses 
 --   Dividends will continue to be paid semi-annually, with the half 
       year dividend expected to represent, under normal circumstances, 
       around one-third of the total dividend for the year 
 

Tushar Morzaria, Group Finance Director

Results by Business

 
Barclays UK                                           Half year       Half year 
                                                          ended           ended 
                                                       30.06.21        30.06.20 
Income statement information                               GBPm            GBPm        % Change 
===============================================  ==============  ==============  ============== 
Net interest income                                       2,586           2,637             (2) 
Net fee, commission and other income                        613             534              15 
===============================================  ==============  ==============  ============== 
Total income                                              3,199           3,171               1 
Credit impairment releases/(charges)                        443         (1,064) 
===============================================  ==============  ==============  ============== 
Net operating income                                      3,642           2,107              73 
Operating expenses                                      (2,114)         (2,041)             (4) 
Litigation and conduct                                     (22)            (11) 
===============================================  ==============  ==============  ============== 
Total operating expenses                                (2,136)         (2,052)             (4) 
Other net income                                              -              13 
===============================================  ==============  ==============  ============== 
Profit before tax                                         1,506              68 
Attributable profit                                       1,019              52 
 
                                                 As at 30.06.21  As at 31.12.20  As at 30.06.20 
Balance sheet information                                 GBPbn           GBPbn           GBPbn 
===============================================  ==============  ==============  ============== 
Loans and advances to customers at amortised 
 cost                                                     207.8           205.4           202.0 
Total assets                                              311.2           289.1           287.6 
Customer deposits at amortised cost                       255.5           240.5           225.7 
Loan: deposit ratio                                         87%             89%             92% 
Risk weighted assets                                       72.2            73.7            77.9 
Period end allocated tangible equity                        9.9             9.7            10.3 
 
                                                      Half year       Half year 
                                                          ended           ended 
Key facts                                              30.06.21        30.06.20 
===============================================  ==============  ==============  ============== 
Average loan to value of mortgage portfolio(1)              51%             52% 
Average loan to value of new mortgage 
 lending(1)                                                 69%             68% 
Number of branches                                          755             904 
Mobile banking active customers                            9.4m            8.7m 
30 day arrears rate - Barclaycard Consumer 
 UK                                                        1.4%            2.0% 
 
Performance measures 
===============================================  ==============  ==============  ============== 
Return on average allocated tangible equity               20.6%            1.0% 
Average allocated tangible equity (GBPbn)                   9.9            10.2 
Cost: income ratio                                          67%             65% 
Loan loss rate (bps)                                          -             101 
Net interest margin                                       2.54%           2.69% 
 
 
 1   Average loan to value of mortgages is balance weighted and reflects 
      both residential and buy-to-let (BTL) mortgage portfolios within 
      the Home Loans portfolio. 
 
 
Analysis of Barclays UK                                 Half year       Half year 
                                                            ended           ended 
                                                         30.06.21        30.06.20 
Analysis of total income                                     GBPm            GBPm   % Change 
=================================================  ==============  ==============  ========= 
Personal Banking                                            1,910           1,794          6 
Barclaycard Consumer UK                                       605             803       (25) 
Business Banking                                              684             574         19 
=================================================  ==============  ==============  ========= 
Total income                                                3,199           3,171          1 
 
Analysis of credit impairment releases/(charges) 
=================================================  ==============  ==============  ========= 
Personal Banking                                               50           (264) 
Barclaycard Consumer UK                                       398           (697) 
Business Banking                                              (5)           (103) 
=================================================  ==============  ==============  ========= 
Total credit impairment releases/(charges)                    443         (1,064) 
 
                                                                                       As at 
                                                   As at 30.06.21  As at 31.12.20   30.06.20 
Analysis of loans and advances to customers 
 at amortised cost                                          GBPbn           GBPbn      GBPbn 
=================================================  ==============  ==============  ========= 
Personal Banking                                            162.4           157.3      154.9 
Barclaycard Consumer UK                                       8.8             9.9       11.5 
Business Banking                                             36.6            38.2       35.6 
=================================================  ==============  ==============  ========= 
Total loans and advances to customers at 
 amortised cost                                             207.8           205.4      202.0 
 
Analysis of customer deposits at amortised 
 cost 
=================================================  ==============  ==============  ========= 
Personal Banking                                            191.0           179.7      169.6 
Barclaycard Consumer UK                                       0.1             0.1        0.1 
Business Banking                                             64.4            60.7       56.0 
=================================================  ==============  ==============  ========= 
Total customer deposits at amortised cost                   255.5           240.5      225.7 
 

Barclays UK delivered a RoTE of 20.6% including the benefit from a net impairment release following an improved UK macroeconomic outlook. Income increased 1% reflecting strong growth in mortgage balances of GBP6.9bn at improved margins, despite a GBP1.5bn reduction in unsecured lending balances. Barclays UK grew deposits by GBP15.0bn, further strengthening the liquidity position reflected in the loan: deposit ratio of 87%, 2% lower than FY20.

Income statement - H121 compared to H120

 
 --   Profit before tax increased to GBP1,506m (H120: GBP68m). RoTE was 
       20.6% (H120: 1.0%) reflecting materially lower credit impairment 
       charges 
 --   Total income increased 1% to GBP3,199m. Net interest income reduced 
       2% to GBP2,586m with a net interest margin (NIM) of 2.54% (H120: 
       2.69%). Net fee, commission and other income increased 15% to GBP613m 
      -    Personal Banking income increased 6% to GBP1,910m, reflecting 
            strong growth in mortgages alongside improved margins, balance 
            growth in deposits and the non-recurrence of COVID-19 customer 
            support actions, partially offset by deposit margin compression 
            from lower interest rates and lower unsecured lending balances 
      -    Barclaycard Consumer UK income decreased 25% to GBP605m as reduced 
            borrowing and continued payments by customers resulted in a lower 
            level of interest earning lending (IEL) balances 
      -    Business Banking income increased 19% to GBP684m due to lending 
            and deposit balance growth from GBP12.1bn of government scheme 
            lending and the non-recurrence of COVID-19 and related customer 
            support actions, partially offset by deposit margin compression 
            from lower interest rates 
 --   Credit impairment net release of GBP443m (H120: GBP1,064m charge) 
       was driven by an improved macroeconomic outlook used in the Q221 
       scenario refresh. The primary driver is a reduction in the anticipated 
       peak of UK unemployment with the majority of this provision release 
       in UK cards and personal loans. As at 30 June 2021, 30 and 90 day 
       arrears rates in UK cards were 1.4% (H120: 2.0%) and 0.6% (H120: 
       1.0%) respectively 
 --   Total operating expenses increased 4% to GBP2,136m reflecting investment 
       spend and higher operational and customer service costs, including 
       ongoing financial assistance, partially offset by efficiency savings 
 

Balance sheet - 30 June 2021 compared to 31 December 2020

 
 --   Loans and advances to customers at amortised cost increased 1% 
       to GBP207.8bn predominantly from GBP6.9bn of mortgage growth following 
       continued strong flow of new applications as well as strong customer 
       retention, offset by a GBP1.8bn decrease in the Education, Social 
       Housing and Local Authority (ESHLA) portfolio and GBP1.5bn lower 
       unsecured lending balances, albeit loans and advances in Barclaycard 
       Consumer UK stabilised in Q221 
 --   Customer deposits at amortised cost increased 6% to GBP255.5bn 
       reflecting an increase of GBP11.3bn and GBP3.7bn in Personal Banking 
       and Business Banking respectively, further strengthening the liquidity 
       position and contributing to a loan: deposit ratio of 87% (December 
       2020: 89%) 
 --   RWAs decreased to GBP72.2bn (December 2020: GBP73.7bn) driven by 
       a reduction in unsecured lending and ESHLA, partially offset by 
       growth in mortgages 
 
 
Barclays International                             Half year       Half year 
                                                       ended           ended 
                                                    30.06.21        30.06.20 
Income statement information                            GBPm            GBPm        % Change 
============================================  ==============  ==============  ============== 
Net interest income                                    1,559           1,845            (16) 
Net trading income                                     3,389           4,020            (16) 
Net fee, commission and other income                   3,270           2,789              17 
============================================  ==============  ==============  ============== 
Total income                                           8,218           8,654             (5) 
Credit impairment releases/(charges)                     293         (2,619) 
============================================  ==============  ==============  ============== 
Net operating income                                   8,511           6,035              41 
Operating expenses                                   (4,606)         (4,405)             (5) 
Litigation and conduct                                  (84)            (11) 
============================================  ==============  ==============  ============== 
Total operating expenses                             (4,690)         (4,416)             (6) 
Other net income                                          22              10 
============================================  ==============  ==============  ============== 
Profit before tax                                      3,843           1,629 
Attributable profit                                    2,698             997 
 
                                              As at 30.06.21  As at 31.12.20  As at 30.06.20 
Balance sheet information                              GBPbn           GBPbn           GBPbn 
============================================  ==============  ==============  ============== 
Loans and advances at amortised cost                   121.9           122.7           138.1 
Trading portfolio assets                               147.1           127.7           109.5 
Derivative financial instrument assets                 255.4           301.8           306.8 
Financial assets at fair value through the 
 income statement                                      190.4           170.7           154.3 
Cash collateral and settlement balances                108.5            97.5           130.8 
Other assets                                           223.5           221.4           236.3 
============================================  ==============  --------------  ============== 
Total assets                                         1,046.8         1,041.8         1,075.8 
Deposits at amortised cost                             245.4           240.5           241.2 
Derivative financial instrument liabilities            246.9           300.4           307.6 
Loan: deposit ratio                                      50%             51%             57% 
Risk weighted assets                                   223.2           222.3           231.2 
Period end allocated tangible equity                    31.8            30.2            31.6 
 
                                                   Half year       Half year 
                                                       ended           ended 
Performance measures                                30.06.21        30.06.20 
============================================  ==============  ==============  ============== 
Return on average allocated tangible equity            16.7%            6.2% 
Average allocated tangible equity (GBPbn)               32.3            32.4 
Cost: income ratio                                       57%             51% 
Loan loss rate (bps)                                       -             368 
Net interest margin                                    3.95%           3.67% 
 
 
Analysis of Barclays International 
Corporate and Investment Bank                      Half year       Half year 
                                                       ended           ended 
                                                    30.06.21        30.06.20 
Income statement information                            GBPm            GBPm        % Change 
============================================  ==============  ==============  ============== 
Net interest income                                      640             669             (4) 
Net trading income                                     3,411           4,043            (16) 
Net fee, commission and other income                   2,522           2,221              14 
============================================  ==============  ==============  ============== 
Total income                                           6,573           6,933             (5) 
Credit impairment releases/(charges)                     272         (1,320) 
============================================  ==============  ==============  ============== 
Net operating income                                   6,845           5,613              22 
Operating expenses                                   (3,509)         (3,370)             (4) 
Litigation and conduct                                   (2)             (3)              33 
============================================  ==============  ==============  ============== 
Total operating expenses                             (3,511)         (3,373)             (4) 
Other net income                                           1               3            (67) 
============================================  ==============  ==============  ============== 
Profit before tax                                      3,335           2,243              49 
Attributable profit                                    2,312           1,514              53 
 
                                              As at 30.06.21  As at 31.12.20  As at 30.06.20 
Balance sheet information                              GBPbn           GBPbn           GBPbn 
============================================  ==============  ==============  ============== 
Loans and advances at amortised cost                    91.0            92.4           104.9 
Trading portfolio assets                               147.0           127.5           109.3 
Derivative financial instrument assets                 255.3           301.7           306.7 
Financial assets at fair value through the 
 income statement                                      190.3           170.4           153.7 
Cash collateral and settlement balances                107.7            96.7           129.7 
Other assets                                           192.5           194.9           205.5 
============================================  ==============  ==============  ============== 
Total assets                                           983.8           983.6         1,009.8 
Deposits at amortised cost                             178.2           175.2           173.9 
Derivative financial instrument liabilities            246.8           300.3           307.6 
Risk weighted assets                                   194.3           192.2           198.3 
 
                                                   Half year       Half year 
                                                       ended           ended 
Performance measures                                30.06.21        30.06.20 
============================================  ==============  ==============  ============== 
Return on average allocated tangible equity            16.3%           11.0% 
Average allocated tangible equity (GBPbn)               28.3            27.7 
Cost: income ratio                                       53%             49% 
 
 
Analysis of total income                                GBPm            GBPm        % Change 
============================================  ==============  ==============  ============== 
FICC                                                   2,099           3,326            (37) 
Equities                                               1,709           1,238              38 
============================================  ==============  ==============  ============== 
Global Markets (1)                                     3,808           4,564            (17) 
Advisory                                                 381             239              59 
Equity capital markets                                   469             247              90 
Debt capital markets                                     882             881 
============================================  ==============  ==============  ============== 
Investment Banking fees(1)                             1,732           1,367              27 
Corporate lending                                        244             172              42 
Transaction banking                                      789             830             (5) 
============================================  ==============  ==============  ============== 
Corporate                                              1,033           1,002               3 
                                              ============== 
Total income                                           6,573           6,933             (5) 
 
 
 1   Previously labelled as "Markets" and "Banking fees". 
 
 
Analysis of Barclays International 
Consumer, Cards and Payments                         Half year       Half year 
                                                         ended           ended 
                                                      30.06.21        30.06.20 
Income statement information                              GBPm            GBPm        % Change 
==============================================  ==============  ==============  ============== 
Net interest income                                        919           1,176            (22) 
Net fee, commission, trading and other income              726             545              33 
==============================================  ==============  ==============  ============== 
Total income                                             1,645           1,721             (4) 
Credit impairment releases/(charges)                        21         (1,299) 
==============================================  ==============  ==============  ============== 
Net operating income                                     1,666             422 
Operating expenses                                     (1,097)         (1,035)             (6) 
Litigation and conduct                                    (82)             (8) 
==============================================  ==============  ==============  ============== 
Total operating expenses                               (1,179)         (1,043)            (13) 
Other net income                                            21               7 
==============================================  ==============  ==============  ============== 
Profit/(loss) before tax                                   508           (614) 
Attributable profit/(loss)                                 386           (517) 
 
                                                As at 30.06.21  As at 31.12.20  As at 30.06.20 
Balance sheet information                                GBPbn           GBPbn           GBPbn 
==============================================  ==============  ==============  ============== 
Loans and advances at amortised cost                      30.9            30.3            33.2 
Total assets                                              63.0            58.2            66.0 
Deposits at amortised cost                                67.2            65.3            67.3 
Risk weighted assets                                      29.0            30.1            32.9 
 
                                                     Half year       Half year 
                                                         ended           ended 
Key facts                                             30.06.21        30.06.20 
==============================================  ==============  ==============  ============== 
30 day arrears rate - Barclaycard US                      1.6%            2.4% 
US cards customer FICO score distribution 
<660                                                       10%             14% 
>660                                                       90%             86% 
Total number of Barclaycard payments clients         c.372,000       c.368,000 
Value of payments processed (GBPbn)(1)                     160             156 
 
Performance measures 
==============================================  ==============  ==============  ============== 
Return on average allocated tangible equity              19.1%         (21.9)% 
Average allocated tangible equity (GBPbn)                  4.0             4.7 
Cost: income ratio                                         72%             61% 
Loan loss rate (bps)                                         -             714 
 
 
                                        Half year  Half year 
                                            ended      ended 
                                         30.06.21   30.06.20 
Analysis of total income                     GBPm       GBPm  % Change 
======================================  =========  =========  ======== 
International Cards and Consumer Bank       1,050      1,257      (16) 
Private Bank                                  393        362         9 
Unified Payments                              202        102        98 
======================================  =========  =========  ======== 
Total income                                1,645      1,721       (4) 
 
 
 1   Includes GBP129bn (H120: GBP124bn) of merchant acquiring payments. 
 

Barclays International delivered a RoTE of 16.7% reflecting the benefits of a diversified business. CIB delivered a RoTE of 16.3% reflecting a strong performance in Equities and Investment Banking fees, offset by a decrease in FICC against a very strong H120 comparative. CC&P RoTE improved significantly to 19.1% as a decline in income, reflecting lower cards balances, was more than offset by an improvement in impairment.

Income statement - H121 compared to H120

 
 --   Profit before tax increased 136% to GBP3,843m with a RoTE of 16.7% 
       (H120: 6.2%), reflecting a RoTE of 16.3% (H120: 11.0%) in CIB and 
       19.1% (H120: (21.9)%) in CC&P 
 --   The 10% depreciation of average USD against GBP adversely impacted 
       income and profits and positively impacted total operating expenses 
 --   Total income decreased to GBP8,218m (H120: GBP8,654m) 
      -    CIB income decreased 5% to GBP6,573m 
           -    Global Markets income decreased 17% to GBP3,808m as a strong 
                 performance in Equities, representing the best ever first 
                 half of the year on a comparable basis(1) , was more than 
                 offset by FICC. Equities income increased 38% to GBP1,709m 
                 driven by derivatives, reflecting strong client activity, 
                 and financing through increased client balances. FICC income 
                 decreased 37% to GBP2,099m due to tighter spreads and the 
                 non-recurrence of H120 client activity levels 
           -    Investment Banking fees income, representing the best ever 
                 first half of the year on a comparable basis(1) , increased 
                 27% to GBP1,732m driven by a strong performance in Equity 
                 capital markets and Advisory reflecting an increase in the 
                 fee pool and an increased market share(2) 
           -    Within Corporate, Transaction banking income decreased 5% 
                 to GBP789m as deposit balance growth was more than offset 
                 by margin compression. Corporate lending income increased 
                 by 42% to GBP244m driven by the non-recurrence of losses on 
                 the mark-to-market of lending and related hedge positions 
                 partially offset by a current year write-off on a single name 
      -    CC&P income decreased 4% to GBP1,645m 
           -    International Cards and Consumer Bank income decreased 16% 
                 to GBP1,050m reflecting lower cards balances 
           -    Private Bank income increased 9% to GBP393m, which included 
                 a gain on a property sale 
           -    Unified Payments income increased 98% to GBP202m driven by 
                 the non-recurrence of a c.GBP100m valuation loss on Barclays' 
                 preference shares in Visa Inc. resulting from the Q220 Supreme 
                 Court ruling concerning charges paid by merchants 
 --   Credit impairment net release of GBP293m (H120: GBP2,619m charge) 
       was driven by an improved macroeconomic outlook used in the Q221 
       scenario refresh 
      -    CIB credit impairment net release of GBP272m (H120: GBP1,320m 
            charge), supported by a benign credit risk environment and limited 
            single name wholesale loan charges 
      -    CC&P credit impairment net release of GBP21m (H120: GBP1,299m 
            charge) partially driven by lower delinquencies and customer 
            repayments. As at 30 June 2021, 30 and 90 day arrears in US cards 
            were 1.6% (H120: 2.4%) and 0.9% (H120: 1.4%) respectively 
 --   Total operating expenses increased 6% to GBP4,690m 
      -    CIB total operating expenses increased 4% to GBP3,511m due to 
            higher performance costs that reflected an improvement in returns 
      -    CC&P total operating expenses increased 13% to GBP1,179m driven 
            by the impact of higher investment spend, including marketing, 
            and customer remediation costs related to a legacy portfolio 
 

Balance sheet - 30 June 2021 compared to 31 December 2020

 
 --   Trading portfolio assets increased GBP19.4bn to GBP147.1bn due 
       to increased activity 
 --   Derivative financial instruments assets decreased GBP46.4bn and 
       liabilities decreased GBP53.5bn to GBP255.4bn and GBP246.9bn respectively, 
       driven by an increase in major interest rate curves 
 --   Financial assets at fair value through the income statement increased 
       GBP19.7bn to GBP190.4bn driven by increased secured lending 
 --   Cash collateral and settlements balances increased GBP11.0bn to 
       GBP108.5bn due to increased client activity 
 --   Deposits at amortised cost increased GBP4.9bn to GBP245.4bn due 
       to clients increasing liquidity 
 --   RWAs increased to GBP223.2bn (December 2020: GBP222.3bn) primarily 
       due to increased client and trading activity within CIB, partially 
       offset by the depreciation of period end EUR and USD against GBP 
 
 
 1   Period covering Q114 - Q221. Pre 2014 financials were not restated 
      following re-segmentation in Q116. 
 2   Data source: Dealogic for the period covering 1 January to 30 June 
      2021. 
 
 
Head Office                                      Half year       Half year 
                                                     ended           ended 
                                                  30.06.21        30.06.20 
Income statement information                          GBPm            GBPm   % Change 
==========================================  ==============  ==============  ========= 
Net interest income                                  (242)           (259)          7 
Net fee, commission and other income                   140              55 
==========================================  ==============  ==============  ========= 
Total income                                         (102)           (204)         50 
Credit impairment releases/(charges)                     6            (55) 
==========================================  ==============  ==============  ========= 
Net operating income                                  (96)           (259)         63 
Operating expenses                                   (412)           (117) 
Litigation and conduct                                   7             (8) 
==========================================  ==============  ==============  ========= 
Total operating expenses                             (405)           (125) 
Other net income/(expenses)                            131            (41) 
==========================================  ==============  ==============  ========= 
Loss before tax                                      (370)           (425)         13 
Attributable profit/(loss)                              95           (354) 
 
                                                                                As at 
                                            As at 30.06.21  As at 31.12.20   30.06.20 
Balance sheet information                            GBPbn           GBPbn      GBPbn 
==========================================  ==============  ==============  ========= 
Total assets                                          18.3            18.6       21.7 
Risk weighted assets                                  11.1            10.2        9.9 
Period end allocated tangible equity                   5.9             6.8        7.4 
 
                                                 Half year       Half year 
                                                     ended           ended 
Performance measures                              30.06.21        30.06.20 
==========================================  ==============  ==============  ========= 
Average allocated tangible equity (GBPbn)              4.3             6.0 
 

Income statement - H121 compared to H120

 
 --   Loss before tax was GBP370m (H120: GBP425m) 
 --   Total income was an expense of GBP102m (H120: GBP204m), which primarily 
       reflected hedge accounting, funding costs on legacy capital instruments 
       and treasury items, partially offset by mark-to-market gains on 
       legacy investments 
 --   Credit impairment net release of GBP6m (H120: GBP55m charge) was 
       driven by an improved macroeconomic outlook used in the Q221 scenario 
       refresh, resulting in a provision release for the Italian home 
       loan portfolio 
 --   Total operating expenses were GBP405m (H120: GBP125m), which included 
       a charge of GBP266m relating to structural cost actions taken as 
       part of the real estate review 
 --   Other net income was GBP131m (H120: GBP41m expense) driven by a 
       fair value gain in Barclays' associate investment holding in the 
       Business Growth Fund 
 

Balance sheet - 30 June 2021 compared to 31 December 2020

 
 --   RWAs were GBP11.1bn (December 2020: GBP10.2bn) 
 

Quarterly Results Summary

 
Barclays Group 
                                             Q221     Q121     Q420     Q320     Q220     Q120     Q419     Q319 
Income statement information                 GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                         2,052    1,851    1,845    2,055    1,892    2,331    2,344    2,445 
Net fee, commission and other 
 income                                     3,363    4,049    3,096    3,149    3,446    3,952    2,957    3,096 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                                5,415    5,900    4,941    5,204    5,338    6,283    5,301    5,541 
Credit impairment releases/(charges)          797     (55)    (492)    (608)  (1,623)  (2,115)    (523)    (461) 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                        6,212    5,845    4,449    4,596    3,715    4,168    4,778    5,080 
Operating costs                           (3,587)  (3,545)  (3,480)  (3,391)  (3,310)  (3,253)  (3,308)  (3,293) 
UK bank levy                                    -        -    (299)        -        -        -    (226)        - 
Litigation and conduct                       (66)     (33)     (47)     (76)     (20)     (10)    (167)  (1,568) 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses                  (3,653)  (3,578)  (3,826)  (3,467)  (3,330)  (3,263)  (3,701)  (4,861) 
Other net income/(expenses)                    21      132       23       18     (26)        8       20       27 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit before tax                           2,580    2,399      646    1,147      359      913    1,097      246 
Tax charge                                  (263)    (496)    (163)    (328)     (42)     (71)    (189)    (269) 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit/(loss) after tax                     2,317    1,903      483      819      317      842      908     (23) 
Non-controlling interests                    (15)      (4)     (37)      (4)     (21)     (16)     (42)      (4) 
Other equity instrument holders             (194)    (195)    (226)    (204)    (206)    (221)    (185)    (265) 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Attributable profit/(loss)                  2,108    1,704      220      611       90      605      681    (292) 
 
Performance measures 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average tangible 
 shareholders' equity                       18.1%    14.7%     1.8%     5.1%     0.7%     5.1%     5.9%   (2.4)% 
Average tangible shareholders' 
 equity (GBPbn)                              46.5     46.5     47.6     48.3     50.2     47.0     46.4     48.4 
Cost: income ratio                            67%      61%      77%      67%      62%      52%      70%      88% 
Loan loss rate (bps)                            -        6       56       69      179      223       60       52 
Basic earnings/(loss) per share             12.3p     9.9p     1.3p     3.5p     0.5p     3.5p     3.9p   (1.7)p 
Basic weighted average number 
 of shares (m)                             17,140   17,293   17,300   17,298   17,294   17,278   17,200   17,192 
Period end number of shares 
 (m)                                       16,998   17,223   17,359   17,353   17,345   17,332   17,322   17,269 
 
Balance sheet and capital management(1)     GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Loans and advances at amortised 
 cost                                       348.5    345.8    342.6    344.4    354.9    374.1    339.1    345.1 
Loans and advances at amortised 
 cost impairment coverage ratio              1.8%     2.2%     2.4%     2.5%     2.5%     2.1%     1.8%     1.9% 
Total assets                              1,376.3  1,379.7  1,349.5  1,421.7  1,385.1  1,444.3  1,140.2  1,290.4 
Deposits at amortised cost                  500.9    498.8    481.0    494.6    466.9    470.7    415.8    420.6 
Tangible net asset value per 
 share                                       281p     267p     269p     275p     284p     284p     262p     274p 
Common equity tier 1 ratio                  15.1%    14.6%    15.1%    14.6%    14.2%    13.1%    13.8%    13.4% 
Common equity tier 1 capital                 46.2     45.9     46.3     45.5     45.4     42.5     40.8     41.9 
Risk weighted assets                        306.4    313.4    306.2    310.7    319.0    325.6    295.1    313.3 
Average UK leverage ratio                    4.8%     4.9%     5.0%     5.1%     4.7%     4.5%     4.5%     4.6% 
Average UK leverage exposure              1,192.0  1,174.9  1,146.9  1,111.1  1,148.7  1,176.2  1,142.8  1,171.2 
UK leverage ratio                            5.0%     5.0%     5.3%     5.2%     5.2%     4.5%     5.1%     4.8% 
UK leverage exposure                      1,153.6  1,145.4  1,090.9  1,095.1  1,071.1  1,178.7  1,007.7  1,099.8 
 
Funding and liquidity 
========================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Group liquidity pool (GBPbn)                  291      290      266      327      298      237      211      226 
Liquidity coverage ratio                     162%     161%     162%     181%     186%     155%     160%     151% 
Loan: deposit ratio                           70%      69%      71%      70%      76%      79%      82%      82% 
 
 
 1   Refer to pages 54 to 60 for further information on how capital, 
      RWAs and leverage are calculated. 
 

Quarterly Results by Business

 
Barclays UK 
                                          Q221     Q121     Q420     Q320     Q220     Q120     Q419     Q319 
Income statement information              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                      1,305    1,281    1,317    1,280    1,225    1,412    1,478    1,503 
Net fee, commission and other 
 income                                    318      295      309      270      242      292      481      343 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                             1,623    1,576    1,626    1,550    1,467    1,704    1,959    1,846 
Credit impairment releases/(charges)       520     (77)    (170)    (233)    (583)    (481)    (190)    (101) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                     2,143    1,499    1,456    1,317      884    1,223    1,769    1,745 
Operating costs                        (1,078)  (1,036)  (1,134)  (1,095)  (1,018)  (1,023)  (1,023)    (952) 
UK bank levy                                 -        -     (50)        -        -        -     (41)        - 
Litigation and conduct                    (19)      (3)        4     (25)      (6)      (5)     (58)  (1,480) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses               (1,097)  (1,039)  (1,180)  (1,120)  (1,024)  (1,028)  (1,122)  (2,432) 
Other net income/(expenses)                  -        -        6      (1)       13        -        -        - 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit/(loss) before tax                 1,046      460      282      196    (127)      195      647    (687) 
Attributable profit/(loss)                 721      298      160      113    (123)      175      438    (907) 
 
Balance sheet information                GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Loans and advances to customers 
 at amortised cost                       207.8    205.7    205.4    203.9    202.0    195.7    193.7    193.2 
Total assets                             311.2    309.1    289.1    294.5    287.6    267.5    257.8    257.9 
Customer deposits at amortised 
 cost                                    255.5    247.5    240.5    232.0    225.7    207.5    205.5    203.3 
Loan: deposit ratio                        87%      88%      89%      91%      92%      96%      96%      97% 
Risk weighted assets                      72.2     72.7     73.7     76.2     77.9     77.7     74.9     76.8 
Period end allocated tangible 
 equity                                    9.9     10.0      9.7     10.0     10.3     10.3     10.3     10.4 
 
Performance measures 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average allocated 
 tangible equity                         29.1%    12.0%     6.5%     4.5%   (4.8)%     6.9%    17.0%  (34.9)% 
Average allocated tangible 
 equity (GBPbn)                            9.9      9.9      9.8     10.1     10.3     10.1     10.3     10.4 
Cost: income ratio                         68%      66%      73%      72%      70%      60%      57%     132% 
Loan loss rate (bps)                         -       14       31       43      111       96       38       20 
Net interest margin                      2.55%    2.54%    2.56%    2.51%    2.48%    2.91%    3.03%    3.10% 
 
 
Analysis of Barclays UK                       Q221   Q121   Q420   Q320   Q220   Q120   Q419   Q319 
Analysis of total income                      GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                               987    923    895    833    826    968  1,064  1,035 
Barclaycard Consumer UK                        290    315    354    362    367    436    533    472 
Business Banking                               346    338    377    355    274    300    362    339 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income                                 1,623  1,576  1,626  1,550  1,467  1,704  1,959  1,846 
 
Analysis of credit impairment 
 releases/(charges) 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                                72   (22)   (68)   (48)  (130)  (134)   (71)   (36) 
Barclaycard Consumer UK                        434   (36)   (78)  (106)  (396)  (301)  (108)   (49) 
Business Banking                                14   (19)   (24)   (79)   (57)   (46)   (11)   (16) 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total credit impairment releases/(charges)     520   (77)  (170)  (233)  (583)  (481)  (190)  (101) 
 
Analysis of loans and advances 
 to customers at amortised cost              GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                             162.4  160.4  157.3  155.7  154.9  153.4  151.9  150.1 
Barclaycard Consumer UK                        8.8    8.7    9.9   10.7   11.5   13.6   14.7   14.9 
Business Banking                              36.6   36.6   38.2   37.5   35.6   28.7   27.1   28.2 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total loans and advances to 
 customers at amortised cost                 207.8  205.7  205.4  203.9  202.0  195.7  193.7  193.2 
 
Analysis of customer deposits 
 at amortised cost 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                             191.0  186.0  179.7  173.2  169.6  161.4  159.2  157.9 
Barclaycard Consumer UK                        0.1    0.1    0.1    0.1    0.1      -      -      - 
Business Banking                              64.4   61.4   60.7   58.7   56.0   46.1   46.3   45.4 
===========================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total customer deposits at 
 amortised cost                              255.5  247.5  240.5  232.0  225.7  207.5  205.5  203.3 
 
 
Barclays International 
                                          Q221     Q121     Q420     Q320     Q220     Q120     Q419     Q319 
Income statement information              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                        811      748      614      823      847      998      965    1,059 
Net trading income                       1,455    1,934    1,372    1,528    1,660    2,360      929    1,110 
Net fee, commission and other 
 income                                  1,553    1,717    1,500    1,430    1,503    1,286    1,558    1,581 
-------------------------------------  =======  -------  -------  -------  =======  -------  -------  ------- 
Total income                             3,819    4,399    3,486    3,781    4,010    4,644    3,452    3,750 
Credit impairment releases/(charges)       271       22    (291)    (370)  (1,010)  (1,609)    (329)    (352) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                     4,090    4,421    3,195    3,411    3,000    3,035    3,123    3,398 
Operating costs                        (2,168)  (2,438)  (2,133)  (2,227)  (2,186)  (2,219)  (2,240)  (2,282) 
UK bank levy                                 -        -    (240)        -        -        -    (174)        - 
Litigation and conduct                    (63)     (21)      (9)     (28)     (11)        -     (86)        - 
-------------------------------------  =======  -------  -------  -------  =======  -------  -------  ------- 
Total operating expenses               (2,231)  (2,459)  (2,382)  (2,255)  (2,197)  (2,219)  (2,500)  (2,282) 
Other net income                            13        9        9        9        4        6       17       21 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit before tax                        1,872    1,971      822    1,165      807      822      640    1,137 
Attributable profit                      1,267    1,431      441      782      468      529      397      799 
 
Balance sheet information                GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Loans and advances at amortised 
 cost                                    121.9    123.5    122.7    128.0    138.1    167.0    132.8    138.1 
Trading portfolio assets                 147.1    131.1    127.7    122.3    109.5    101.6    113.3    119.4 
Derivative financial instrument 
 assets                                  255.4    269.4    301.8    295.9    306.8    341.5    228.9    286.0 
Financial assets at fair value 
 through the income statement            190.4    197.5    170.7    178.2    154.3    188.4    128.4    158.0 
Cash collateral and settlement 
 balances                                108.5    109.7     97.5    121.8    130.8    153.2     79.4    112.5 
Other assets                             223.5    221.7    221.4    261.7    236.3    201.5    178.6    195.6 
-------------------------------------  =======  -------  -------  -------  =======  -------  -------  ------- 
Total assets                           1,046.8  1,052.9  1,041.8  1,107.9  1,075.8  1,153.2    861.4  1,009.6 
Deposits at amortised cost               245.4    251.2    240.5    262.4    241.2    263.3    210.0    217.6 
Derivative financial instrument 
 liabilities                             246.9    260.2    300.4    293.3    307.6    338.8    228.9    283.3 
Loan: deposit ratio                        50%      49%      51%      49%      57%      63%      63%      63% 
Risk weighted assets                     223.2    230.0    222.3    224.7    231.2    237.9    209.2    223.1 
Period end allocated tangible 
 equity                                   31.8     32.7     30.2     30.5     31.6     33.1     29.6     31.4 
 
Performance measures 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average allocated 
 tangible equity                         15.6%    17.7%     5.8%    10.2%     5.6%     6.8%     5.1%     9.9% 
Average allocated tangible 
 equity (GBPbn)                           32.4     32.3     30.5     30.6     33.5     31.2     30.9     32.2 
Cost: income ratio                         58%      56%      68%      60%      55%      48%      72%      61% 
Loan loss rate (bps)                         -      (7)       90      112      284      377       96       99 
Net interest margin                      3.96%    3.92%    3.41%    3.79%    3.43%    3.93%    4.29%    4.10% 
 
 
Analysis of Barclays International 
 
Corporate and Investment Bank             Q221     Q121     Q420     Q320     Q220     Q120     Q419     Q319 
Income statement information              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                        370      270      110      305      334      335      248      339 
Net trading income                       1,494    1,917    1,397    1,535    1,812    2,231      951    1,126 
Net fee, commission and other 
 income                                  1,115    1,407    1,131    1,065    1,170    1,051    1,115    1,152 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                             2,979    3,594    2,638    2,905    3,316    3,617    2,314    2,617 
Credit impairment releases/(charges)       229       43     (52)    (187)    (596)    (724)     (30)     (31) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                     3,208    3,637    2,586    2,718    2,720    2,893    2,284    2,586 
Operating costs                        (1,623)  (1,886)  (1,603)  (1,716)  (1,680)  (1,690)  (1,691)  (1,712) 
UK bank levy                                 -        -    (226)        -        -        -    (156)        - 
Litigation and conduct                     (1)      (1)        2      (3)      (3)        -     (79)      (4) 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses               (1,624)  (1,887)  (1,827)  (1,719)  (1,683)  (1,690)  (1,926)  (1,716) 
Other net income                             -        1        2        1        3        -        1       12 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit before tax                        1,584    1,751      761    1,000    1,040    1,203      359      882 
Attributable profit                      1,049    1,263      413      627      694      820      193      609 
 
Balance sheet information                GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Loans and advances at amortised 
 cost                                     91.0     94.3     92.4     96.8    104.9    128.2     92.0     95.8 
Trading portfolio assets                 147.0    130.9    127.5    122.2    109.3    101.5    113.3    119.3 
Derivative financial instruments 
 assets                                  255.3    269.4    301.7    295.9    306.7    341.4    228.8    286.0 
Financial assets at fair value 
 through the income statement            190.3    197.3    170.4    177.9    153.7    187.8    127.7    157.3 
Cash collateral and settlement 
 balances                                107.7    108.8     96.7    121.0    129.7    152.2     78.5    111.6 
Other assets                             192.5    190.8    194.9    228.9    205.5    171.4    155.3    171.5 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total assets                             983.8    991.5    983.6  1,042.7  1,009.8  1,082.5    795.6    941.5 
Deposits at amortised cost               178.2    185.2    175.2    195.6    173.9    198.4    146.2    152.1 
Derivative financial instrument 
 liabilities                             246.8    260.2    300.3    293.2    307.6    338.7    228.9    283.2 
Risk weighted assets                     194.3    201.3    192.2    193.3    198.3    201.7    171.5    184.9 
 
Performance measures 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average allocated 
 tangible equity                         14.8%    17.9%     6.3%     9.5%     9.6%    12.5%     3.0%     9.1% 
Average allocated tangible 
 equity (GBPbn)                           28.4     28.2     26.3     26.4     29.0     26.2     25.8     26.9 
Cost: income ratio                         55%      53%      69%      59%      51%      47%      83%      66% 
 
 
Analysis of total income                  GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
FICC                                       895    1,204      812    1,000    1,468    1,858      726      816 
Equities                                   777      932      542      691      674      564      409      494 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Global Markets (1)                       1,672    2,136    1,354    1,691    2,142    2,422    1,135    1,310 
Advisory                                   218      163      232       90       84      155      202      221 
Equity capital markets                     226      243      104      122      185       62       56       86 
Debt capital markets                       429      453      418      398      463      418      322      381 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Investment Banking fees(1)                 873      859      754      610      732      635      580      688 
Corporate lending                           38      206      186      232       61      111      202      195 
Transaction banking                        396      393      344      372      381      449      397      424 
=====================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Corporate                                  434      599      530      604      442      560      599      619 
                                       ======= 
Total income                             2,979    3,594    2,638    2,905    3,316    3,617    2,314    2,617 
 
 
 1   Previously labelled as "Markets" and "Banking fees". 
 
 
Analysis of Barclays International 
 
Consumer, Cards and Payments            Q221   Q121   Q420   Q320     Q220     Q120   Q419   Q319 
Income statement information            GBPm   GBPm   GBPm   GBPm     GBPm     GBPm   GBPm   GBPm 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Net interest income                      441    478    504    518      513      663    717    720 
Net fee, commission, trading 
 and other income                        399    327    344    358      181      364    421    413 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Total income                             840    805    848    876      694    1,027  1,138  1,133 
Credit impairment releases/(charges)      42   (21)  (239)  (183)    (414)    (885)  (299)  (321) 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Net operating income                     882    784    609    693      280      142    839    812 
Operating costs                        (545)  (552)  (530)  (511)    (506)    (529)  (549)  (570) 
UK bank levy                               -      -   (14)      -        -        -   (18)      - 
Litigation and conduct                  (62)   (20)   (11)   (25)      (8)        -    (7)      4 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Total operating expenses               (607)  (572)  (555)  (536)    (514)    (529)  (574)  (566) 
Other net income                          13      8      7      8        1        6     16      9 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Profit/(loss) before tax                 288    220     61    165    (233)    (381)    281    255 
Attributable profit/(loss)               218    168     28    155    (226)    (291)    204    190 
 
Balance sheet information              GBPbn  GBPbn  GBPbn  GBPbn    GBPbn    GBPbn  GBPbn  GBPbn 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Loans and advances at amortised 
 cost                                   30.9   29.2   30.3   31.2     33.2     38.8   40.8   42.3 
Total assets                            63.0   61.4   58.2   65.2     66.0     70.7   65.8   68.1 
Deposits at amortised cost              67.2   66.0   65.3   66.8     67.3     64.9   63.8   65.5 
Risk weighted assets                    29.0   28.8   30.1   31.4     32.9     36.2   37.7   38.2 
 
Performance measures 
=====================================  =====  =====  =====  =====  =======  =======  =====  ===== 
Return on average allocated 
 tangible equity                       21.8%  16.5%   2.7%  14.7%  (20.2)%  (23.5)%  15.9%  14.2% 
Average allocated tangible 
 equity (GBPbn)                          4.0    4.1    4.2    4.2      4.5      5.0    5.1    5.3 
Cost: income ratio                       72%    71%    65%    61%      74%      52%    50%    50% 
Loan loss rate (bps)                       -     27    286    211      455      846    273    283 
 
 
Head Office 
                                        Q221   Q121   Q420   Q320   Q220   Q120   Q419   Q319 
Income statement information            GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Net interest income                     (64)  (178)   (86)   (48)  (180)   (79)   (99)  (117) 
Net fee, commission and other 
 income                                   37    103   (85)   (79)     41     14   (11)     62 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income                            (27)   (75)  (171)  (127)  (139)   (65)  (110)   (55) 
Credit impairment releases/(charges)       6      -   (31)    (5)   (30)   (25)    (4)    (8) 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Net operating expenses                  (21)   (75)  (202)  (132)  (169)   (90)  (114)   (63) 
Operating costs                        (341)   (71)  (213)   (69)  (106)   (11)   (45)   (59) 
UK bank levy                               -      -    (9)      -      -      -   (11)      - 
Litigation and conduct                    16    (9)   (42)   (23)    (3)    (5)   (23)   (88) 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total operating expenses               (325)   (80)  (264)   (92)  (109)   (16)   (79)  (147) 
Other net income/(expenses)                8    123      8     10   (43)      2      3      6 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Loss before tax                        (338)   (32)  (458)  (214)  (321)  (104)  (190)  (204) 
Attributable profit/(loss)               120   (25)  (381)  (284)  (255)   (99)  (154)  (184) 
 
Balance sheet information              GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total assets                            18.3   17.7   18.6   19.3   21.7   23.6   21.0   22.9 
Risk weighted assets                    11.1   10.7   10.2    9.8    9.9   10.0   11.0   13.4 
Period end allocated tangible 
 equity                                  5.9    3.3    6.8    7.1    7.4    6.0    5.6    5.5 
 
Performance measures 
=====================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Average allocated tangible 
 equity (GBPbn)                          4.2    4.3    7.3    7.6    6.4    5.6    5.2    5.8 
 

Performance Management

 
Margins and balances 
                                       Half year ended 30.06.21               Half year ended 30.06.20 
                                 =====================================  ===================================== 
                                                 Average                                Average 
                                 Net interest   customer  Net interest  Net interest   customer  Net interest 
                                       income     assets        margin        income     assets        margin 
                                         GBPm       GBPm             %          GBPm       GBPm             % 
===============================  ============  =========  ============  ============  =========  ============ 
Barclays UK                             2,586    204,930          2.54         2,637    197,023          2.69 
Barclays International(1,2)             1,518     77,413          3.95         1,848    101,286          3.67 
===============================  ============  =========  ============  ============  =========  ============ 
Total Barclays UK and Barclays 
 International                          4,104    282,343          2.93         4,485    298,309          3.02 
Other(3)                                (201)                                  (262) 
===============================  ============  =========  ============  ============  =========  ============ 
Total Barclays Group                    3,903                                  4,223 
 
 
 1   Barclays International margins include IEL balances within the 
      investment banking business. 
 2   Barclays amended the presentation of the premium paid for purchased 
      financial guarantees which are embedded in notes it issues directly 
      to the market in Q420 from net investment income to interest expense 
      within net interest income. Had the equivalent H120 interest expense 
      been recognised in net interest income, the Barclays International 
      and Total Barclays UK and Barclays International NIMs would have 
      been 3.57% and 2.99% respectively. 
 3   Other includes Head Office and non-lending related investment banking 
      businesses not included in Barclays International margins. 
 

The Group's combined product and equity structural hedge notional as at 30 June 2021 was GBP198bn (June 2020: GBP174bn), with an average duration of close to 3 years (2020: average duration 2.5 to 3 years). Group net interest income includes gross structural hedge contributions of GBP689m (H120: GBP866m) and net structural hedge contributions of GBP592m (H120: GBP555m). Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on the basket of swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.

The Group net interest margin decreased 9bps to 2.93%. Barclays UK net interest margin decreased 15bps to 2.54% reflecting lower unsecured lending balances and lower UK rates, partially offset by strong mortgage retention at improved margins. Average customer assets increased due to growth from government scheme lending and strong mortgage growth. Barclays International net interest margin increased 28bps to 3.95% driven by changes in product mix and lower average customer assets.

 
Quarterly analysis for Barclays UK and Barclays                   Average 
 International                                    Net interest   customer  Net interest 
                                                        income     assets        margin 
Three months ended 30.06.21                               GBPm       GBPm             % 
================================================  ============  =========  ============ 
Barclays UK                                              1,305    205,168          2.55 
Barclays International(1)                                  763     77,330          3.96 
================================================  ============  =========  ============ 
Total Barclays UK and Barclays International             2,068    282,498          2.94 
 
Three months ended 31.03.21 
================================================  ============  =========  ============ 
Barclays UK                                              1,281    204,663          2.54 
Barclays International(1)                                  755     78,230          3.92 
================================================  ============  =========  ============ 
Total Barclays UK and Barclays International             2,036    282,893          2.92 
 
Three months ended 31.12.20 
================================================  ============  =========  ============ 
Barclays UK                                              1,317    204,315          2.56 
Barclays International(1,2)                                696     81,312          3.41 
================================================  ============  =========  ============ 
Total Barclays UK and Barclays International             2,013    285,627          2.80 
 
Three months ended 30.09.20 
================================================  ============  =========  ============ 
Barclays UK                                              1,280    203,089          2.51 
Barclays International(1,2)                                838     88,032          3.79 
================================================  ============  =========  ============ 
Total Barclays UK and Barclays International             2,118    291,121          2.89 
 
Three months ended 30.06.20 
================================================  ============  =========  ============ 
Barclays UK                                              1,225    199,039          2.48 
Barclays International(1,2)                                868    101,706          3.43 
================================================  ============  =========  ============ 
Total Barclays UK and Barclays International             2,093    300,745          2.80 
 
 
 1   Barclays International margins include IEL balances within the 
      investment banking business. 
 2   The reclassification of expense of the premium paid for purchased 
      financial guarantees from net investment income to net interest 
      income was recognised in full in Q420 and resulted in a 0.48% reduction 
      on the Q420 Barclays International NIM and 0.14% reduction on the 
      Q420 Total Barclays UK and Barclays International NIM. Had the 
      equivalent impact been reflected in the respective quarters, the 
      Barclays International NIM would have been 3.33% in Q220, 3.68% 
      in Q320 and 3.77% in Q420. Total Barclays UK and Barclays International 
      NIMs would have been 2.77% in Q220, 2.86% in Q320 and 2.91% in 
      Q420 respectively. 
 

Risk Management

Risk management and principal risks

The roles and responsibilities of the business groups, Risk and Compliance, in the management of risk in the Group are defined in the Enterprise Risk Management Framework. The purpose of the framework is to identify the principal risks of the Group, the process by which the Group sets its appetite for these risks in its business activities, and the consequent limits which it places on related risk taking.

The framework identifies 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 PLC Annual Report 2020 (pages 145 to 166) or online at home.barclays/annualreport .

Material existing and emerging risks

There have been no significant changes to these principal risks or previously identified material existing and emerging risks in the period other than an update to the risk relating to the impact of benchmark interest rates on the Group as a result of developments relating to benchmark reform, as set out below.

Impact of benchmark interest rate reforms on the Group

For several years, global regulators and central banks have been driving international efforts to reform key benchmark interest rates and indices, such as the London Interbank Offered Rate (LIBOR), which are used to determine the amounts payable under a wide range of transactions and make them more reliable and robust. This has resulted in significant changes to the methodology and operation of certain benchmarks and indices, the adoption of alternative 'risk-free' reference rates (RFRs) and the proposed discontinuation of certain reference rates (including LIBOR), with further changes anticipated, including UK, EU and US legislative proposals to deal with 'tough legacy' contracts that cannot convert into or cannot add fall-back RFRs. The consequences of reform are unpredictable and may have an adverse impact on any financial instruments linked to, or referencing, any of these benchmark interest rates.

Uncertainty as to the nature of such potential changes, the availability and/or suitability of alternative RFRs, the participation of customers and third-party market participants in the transition process and associated challenges with respect to required documentation changes, and other reforms may adversely affect a broad range of transactions (including any securities, loans and derivatives which use LIBOR to determine the amount of interest payable that are included in the Group's financial assets and liabilities) that use these reference rates and indices and introduce a number of risks for the Group, including, but not limited to:

 
 --   Conduct risk: in undertaking actions to transition away from using 
       certain reference rates (such as LIBOR) to new alternative RFRs, 
       the Group faces conduct risks. These may lead to customer complaints, 
       regulatory sanctions or reputational impact if the Group is considered 
       to be (among other things) (i) undertaking market activities that 
       are manipulative or create a false or misleading impression, (ii) 
       misusing sensitive information or not identifying or appropriately 
       managing or mitigating conflicts of interest, (iii) providing customers 
       with inadequate advice, misleading information, unsuitable products 
       or unacceptable service, (iv) not taking a consistent approach to 
       remediation for customers in similar circumstances, (v) unduly delaying 
       the communication and migration activities in relation to client 
       exposure, leaving them insufficient time to prepare, or (vi) colluding 
       or inappropriately sharing information with competitors 
 --   Litigation risk: members of the Group may face legal proceedings, 
       regulatory investigations and/or other actions or proceedings regarding 
       (among other things) (i) the conduct risks identified above, (ii) 
       the interpretation and enforceability of provisions in LIBOR-based 
       contracts, and (iii) the Group's preparation and readiness for the 
       replacement of LIBOR with alternative RFRs 
 --   Financial risk: the valuation of certain of the Group's financial 
       assets and liabilities may change. Moreover, transitioning to alternative 
       RFRs may impact the ability of members of the Group to calculate 
       and model amounts receivable by them on certain financial assets 
       and determine the amounts payable on certain financial liabilities 
       (such as debt securities issued by them) because currently alternative 
       RFRs (such as the Sterling Overnight Index Average (SONIA) and the 
       Secured Overnight Financing Rate (SOFR)) are look-back rates whereas 
       term rates (such as LIBOR) allow borrowers to calculate at the start 
       of any interest period exactly how much is payable at the end of 
       such interest period. This may have a material adverse effect on 
       the Group's cash flows 
 --   Pricing risk: changes to existing reference rates and indices, 
       discontinuation of any reference rate or indices and transition 
       to alternative RFRs may impact the pricing mechanisms used by the 
       Group on certain transactions 
 --   Operational risk: changes to existing reference rates and indices, 
       discontinuation of any reference rate or index and transition to 
       alternative RFRs may require changes to the Group's IT systems, 
       trade reporting infrastructure, operational processes, and controls. 
       In addition, if any reference rate or index (such as LIBOR) is no 
       longer available to calculate amounts payable, the Group may incur 
       additional expenses in amending documentation for new and existing 
       transactions and/or effecting the transition from the original reference 
       rate or index to a new reference rate or index 
 --   Accounting risk: an inability to apply hedge accounting in accordance 
       with IAS 39 could lead to increased volatility in the Group's financial 
       results and performance 
 

Any of these factors may have a material adverse effect on the Group's business, results of operations, financial condition and prospects.

For further details on the impacts of benchmark interest rate reforms on the Group, see Note 41 to Barclays PLC's audited financial statements for the year ended 31 December 2020 and Note 23.

Credit Risk

Loans and advances at amortised cost by stage

The table below presents an analysis of loans and advances at amortised cost by gross exposure, impairment allowance, impairment charge and coverage ratio by stage allocation and business segment as at 30 June 2021. Also included are off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio by stage allocation as at 30 June 2021.

Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to the drawn exposure to the extent that the allowance does not exceed the exposure, as ECL is not reported separately. Any excess is reported on the liability side of the balance sheet as a provision. For wholesale portfolios, the impairment allowance on the undrawn exposure is reported on the liability side of the balance sheet as a provision.

 
                                    Gross exposure                Impairment allowance 
                            ===============================  =============================== 
                              Stage   Stage  Stage              Stage    Stage  Stage 
                                  1       2      3    Total         1        2      3  Total  Net exposure 
As at 30.06.21                 GBPm    GBPm   GBPm     GBPm      GBPm     GBPm   GBPm   GBPm          GBPm 
==========================  =======  ======  =====  =======  ========  =======  =====  =====  ============ 
Barclays UK                 158,587  23,576  2,715  184,878       313    1,035    944  2,292       182,586 
Barclays International       23,286   2,886  1,760   27,932       575      781  1,004  2,360        25,572 
Head Office                   4,003     502    760    5,265         3       39    358    400         4,865 
==========================  =======  ======  =====  =======  ========  =======  =====  =====  ============ 
Total Barclays Group 
 retail                     185,876  26,964  5,235  218,075       891    1,855  2,306  5,052       213,023 
==========================  =======  ======  =====  =======  ========  =======  =====  =====  ============ 
Barclays UK                  36,069   1,727  1,081   38,877        63       49     89    201        38,676 
Barclays International       82,515  13,617  1,425   97,557       231      329    673  1,233        96,324 
Head Office                     5223            32      557         -        -     31     31           526 
==========================  =======   =====  =====  =======  ========  =======  =====  =====  ============ 
Total Barclays Group 
 wholesale(1)               119,106  15,347  2,538  136,991       294      378    793  1,465       135,526 
==========================  =======  ======  =====  =======  ========  =======  =====  =====  ============ 
Total loans and advances 
 at amortised cost          304,982  42,311  7,773  355,066     1,185    2,233  3,099  6,517       348,549 
==========================  =======  ======  =====  =======  ========  =======  =====  =====  ============ 
Off-balance sheet 
 loan commitments 
 and financial guarantee 
 contracts(2)               298,150  45,696    664  344,510       228      436     49    713       343,797 
==========================  =======  ======  =====  =======  ========  =======  =====  =====  ============ 
Total(3)                    603,132  88,007  8,437  699,576     1,413    2,669  3,148  7,230       692,346 
 
                                    As at 30.06.21              Half year ended 30.06.21 
                            ===============================  =============================== 
                                                                 Loan impairment release 
                                    Coverage ratio                  and loan loss rate 
                            ===============================  =============================== 
                              Stage   Stage  Stage             Loan impairment     Loan loss 
                                  1       2      3    Total            release          rate 
                                  %%             %%                       GBPm           bps 
==========================  =======   =====  =====   ====== 
Barclays UK                     0.2     4.4   34.8      1.2              (259)             - 
Barclays International          2.5    27.1   57.0      8.4               (19)             - 
Head Office                     0.1     7.8   47.1      7.6                (6)             - 
==========================  =======  ======  =====  =======  ========  =======  =====  ===== 
Total Barclays Group 
 retail                         0.5     6.9   44.0      2.3              (284)             - 
--------------------------  -------  ------  -----  -------  --------  -------  -----  ----- 
Barclays UK                     0.2     2.8    8.2      0.5               (23)             - 
Barclays International          0.3     2.4   47.2      1.3               (75)             - 
Head Office                       --          96.9      5.6                  -             - 
==========================  =======   =====  =====  =======  ========  =======  =====  ===== 
Total Barclays Group 
 wholesale (1)                  0.2     2.5   31.2      1.1               (98)             - 
==========================  =======  ======  =====  =======  ========  =======  =====  ===== 
Total loans and advances 
 at amortised cost              0.4     5.3   39.9      1.8              (382)             - 
==========================  =======  ======  =====  =======  ========  =======  =====  ===== 
Off-balance sheet 
 loan commitments 
 and financial guarantee 
 contracts(2)                   0.1     1.0    7.4      0.2              (343) 
Other financial assets 
 subject to impairment(3)                                                 (17) 
==========================  =======  ======  =====  =======            ======= 
Total                           0.2     3.0   37.3      1.0              (742) 
 
 
 1   Includes Wealth and Private Banking exposures measured on an individual 
      basis, and excludes Business Banking exposures that are managed 
      on a collective basis. The net impact is a difference in total 
      exposure of GBP7,796m of balances reported as wholesale loans on 
      page 29 in the Loans and advances at amortised cost by product 
      disclosure. 
 2   Excludes loan commitments and financial guarantees of GBP21bn carried 
      at fair value. 
 3   Other financial assets subject to impairment not included in the 
      table above include cash collateral and settlement balances, financial 
      assets at fair value through other comprehensive income and other 
      assets. These have a total gross exposure of GBP186.0bn and impairment 
      allowance of GBP114m. This comprises GBP9m ECL on GBP185.8bn Stage 
      1 assets, GBP3m on GBP58m Stage 2 fair value through other comprehensive 
      income assets, cash collateral and settlement balances and GBP102m 
      on GBP109m Stage 3 other assets. 
 
 
                                     Gross exposure                 Impairment allowance 
                            =================================  =============================== 
                              Stage    Stage   Stage              Stage    Stage  Stage 
                                  1        2       3    Total         1        2      3  Total  Net exposure 
As at 31.12.20                 GBPm     GBPm    GBPm     GBPm      GBPm     GBPm   GBPm   GBPm          GBPm 
==========================  =======  =======  ======  =======  ========  =======  =====  =====  ============ 
Barclays UK                 153,250   23,896   2,732  179,878       332    1,509  1,147  2,988       176,890 
Barclays International(1)    21,048    5,500   1,992   28,540       396    1,329  1,205  2,930        25,610 
Head Office                   4,267      720     844    5,831         4       51    380    435         5,396 
==========================  =======  =======  ======  =======  ========  =======  =====  =====  ============ 
Total Barclays Group 
 retail                     178,565   30,116   5,568  214,249       732    2,889  2,732  6,353       207,896 
==========================  =======  =======  ======  =======  ========  =======  =====  =====  ============ 
Barclays UK                  31,918    4,325   1,126   37,369        13      129    116    258        37,111 
Barclays International(1)    79,911   16,565   2,270   98,746       288      546    859  1,693        97,053 
Head Office                     570-              33      603         -        -     31     31           572 
==========================  =======   ======  ======  =======  ========  =======  =====  =====  ============ 
Total Barclays Group 
 wholesale(2)               112,399   20,890   3,429  136,718       301      675  1,006  1,982       134,736 
==========================  =======  =======  ======  =======  ========  =======  =====  =====  ============ 
Total loans and advances 
 at amortised cost          290,964   51,006   8,997  350,967     1,033    3,564  3,738  8,335       342,632 
==========================  =======  =======  ======  =======  ========  =======  =====  =====  ============ 
Off-balance sheet 
 loan commitments 
 and financial guarantee 
 contracts(3)               289,939   52,891   2,330  345,160       256      758     50  1,064       344,096 
==========================  =======  =======  ======  =======  ========  =======  =====  =====  ============ 
Total(4)                    580,903  103,897  11,327  696,127     1,289    4,322  3,788  9,399       686,728 
 
                                     As at 31.12.20                  Year ended 31.12.20 
                            =================================  =============================== 
                                                                   Loan impairment charge 
                                     Coverage ratio                 and loan loss rate(5) 
                            =================================  =============================== 
                              Stage    Stage   Stage             Loan impairment     Loan loss 
                                  1        2       3    Total             charge          rate 
                                  %%               %%                       GBPm           bps 
==========================  =======   ======  ======   ====== 
Barclays UK                     0.2      6.3    42.0      1.7              1,070            59 
Barclays International(1)       1.9     24.2    60.5     10.3              1,680           589 
Head Office                     0.1      7.1    45.0      7.5                 91           156 
==========================  =======  =======  ======  =======  ========  =======  =====  ===== 
Total Barclays Group 
 retail                         0.4      9.6    49.1      3.0              2,841           133 
==========================  =======  =======  ======  =======  ========  =======  =====  ===== 
Barclays UK                       -      3.0    10.3      0.7                154            41 
Barclays International(1)       0.4      3.3    37.8      1.7                914            93 
Head Office                       --            93.9      5.1                  -             - 
==========================  =======   ======  ======  =======  ========  =======  =====  ===== 
Total Barclays Group 
 wholesale(2)                   0.3      3.2    29.3      1.4              1,068            78 
==========================  =======  =======  ======  =======  ========  =======  =====  ===== 
Total loans and advances 
 at amortised cost              0.4      7.0    41.5      2.4              3,909           111 
==========================  =======  =======  ======  =======  ========  =======  =====  ===== 
Off-balance sheet 
 loan commitments 
 and financial guarantee 
 contracts(3)                   0.1      1.4     2.1      0.3                776 
Other financial assets 
 subject to impairment(4)                                                    153 
==========================  =======  =======  ======  =======            ======= 
Total(5)                        0.2      4.2    33.4      1.4              4,838 
 
 
 1   Private Banking have refined the methodology to classify GBP5bn 
      of their exposure between Wholesale and Retail during the year. 
 2   Includes Wealth and Private Banking exposures measured on an individual 
      basis, and excludes Business Banking exposures that are managed 
      on a collective basis. The net impact is a difference in total 
      exposure of GBP7,551m of balances reported as wholesale loans on 
      page 29 in the Loans and advances at amortised cost by product 
      disclosure. 
 3   Excludes loan commitments and financial guarantees of GBP9.5bn 
      carried at fair value. 
 4   Other financial assets subject to impairment not included in the 
      table above include cash collateral and settlement balances, financial 
      assets at fair value through other comprehensive income and other 
      assets. These have a total gross exposure of GBP180.3bn and impairment 
      allowance of GBP165m. This comprises GBP11m ECL on GBP175.7bn Stage 
      1 assets, GBP9m on GBP4.4bn Stage 2 fair value through other comprehensive 
      income assets, other assets and cash collateral and settlement 
      balances and GBP145m on GBP154m Stage 3 other assets. 
 5   The loan loss rate is 138 bps after applying the total impairment 
      charge of GBP4,838m. 
 

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 
                                         ============================ 
                                                  <=30    >30 
                                            Not   days   days 
                                  Stage    past   past   past          Stage 
As at 30.06.21                        1     due    due    due   Total      3    Total 
Gross exposure                     GBPm    GBPm   GBPm   GBPm    GBPm   GBPm     GBPm 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Home loans                      144,103  17,991  1,666    823  20,480  2,235  166,818 
Credit cards, unsecured loans 
 and other retail lending        34,537   5,642    300    209   6,151  2,773   43,461 
Wholesale loans                 126,342  14,760    529    391  15,680  2,765  144,787 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                           304,982  38,393  2,495  1,423  42,311  7,773  355,066 
 
Impairment allowance 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Home loans                           15      566            7      69    389      473 
Credit cards, unsecured loans 
 and other retail lending           834   1,547    100    120   1,767  1,852    4,453 
Wholesale loans                     336     3815           11     397    858    1,591 
==============================  =======  ======   ====  =====  ======  =====  ======= 
Total                             1,185   1,984    111    138   2,233  3,099    6,517 
 
Net exposure 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Home loans                      144,088  17,935  1,660    816  20,411  1,846  166,345 
Credit cards, unsecured loans 
 and other retail lending        33,703   4,095    200     89   4,384    921   39,008 
Wholesale loans                 126,006  14,379    524    380  15,283  1,907  143,196 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                           303,797  36,409  2,384  1,285  40,078  4,674  348,549 
 
Coverage ratio                        %%             %%             %%              % 
==============================  =======   =====   ====   ====   =====   ==== ====== 
Home loans                            -     0.3    0.4    0.9     0.3   17.4      0.3 
Credit cards, unsecured loans 
 and other retail lending           2.4    27.4   33.3   57.4    28.7   66.8     10.2 
Wholesale loans                     0.3     2.6    0.9    2.8     2.5   31.0      1.1 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                               0.4     5.2    4.4    9.7     5.3   39.9      1.8 
 
As at 31.12.20 
Gross exposure                     GBPm    GBPm   GBPm   GBPm    GBPm   GBPm     GBPm 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Home loans                      138,639  16,651  1,785    876  19,312  2,234  160,185 
Credit cards, unsecured loans 
 and other retail lending        33,021   9,470    544    306  10,320  3,172   46,513 
Wholesale loans                 119,304  19,501  1,097    776  21,374  3,591  144,269 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                           290,964  45,622  3,426  1,958  51,006  8,997  350,967 
 
Impairment allowance 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Home Loans                           33      57     13     14      84    421      538 
Credit cards, unsecured loans 
 and other retail lending           680   2,382    180    207   2,769  2,251    5,700 
Wholesale Loans                     320     650     50     11     711  1,066    2,097 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                             1,033   3,089    243    232   3,564  3,738    8,335 
 
Net exposure 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Home loans                      138,606  16,594  1,772    862  19,228  1,813  159,647 
Credit cards, unsecured loans 
 and other retail lending        32,341   7,088    364     99   7,551    921   40,813 
Wholesale loans                 118,984  18,851  1,047    765  20,663  2,525  142,172 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                           289,931  42,533  3,183  1,726  47,442  5,259  342,632 
 
Coverage ratio                        %%             %%             %%              % 
==============================  =======   =====   ====   ====   =====   ==== ====== 
Home loans                            -     0.3    0.7    1.6     0.4   18.8      0.3 
Credit cards, unsecured loans 
 and other retail lending           2.1    25.2   33.1   67.6    26.8   71.0     12.3 
Wholesale loans                     0.3     3.3    4.6    1.4     3.3   29.7      1.5 
==============================  =======  ======  =====  =====  ======  =====  ======= 
Total                               0.4     6.8    7.1   11.8     7.0   41.5      2.4 
 

Loans and advances at amortised cost by selected sectors

The table below presents a breakdown of loans and advances at amortised cost and the impairment allowance, with gross exposure and stage allocation for selected industry sectors within the wholesale loans portfolio. The industry sectors have been selected based upon the level of management focus they have received following the onset of the COVID-19 pandemic.

The gross loans and advances to selected sectors have decreased over the year driven by repayments and lower drawdowns. The reduction in provisions is informed by the improved macroeconomic outlook used in the Q221 scenario refresh, partially offset by management judgments to reflect the risk of uncertainty still prevailing within these sectors. The wholesale portfolio also benefits from a hedge protection programme that enables effective risk management against systemic losses. An additional GBP0.1bn (December 2020: GBP0.1bn) impairment allowance has been applied to the undrawn exposures not included in the table below.

 
                                      Gross exposure            Impairment allowance 
                               ============================  ========================== 
                                Stage  Stage  Stage   Total  Stage  Stage  Stage  Total 
                                    1      2      3              1      2      3 
As at 30.06.21                   GBPm   GBPm   GBPm    GBPm   GBPm   GBPm   GBPm   GBPm 
=============================  ======  =====  =====  ======  =====  =====  =====  ===== 
Air travel                        305    322     21     648      3     13     18     34 
Hospitality and leisure         4,019  1,907    298   6,224     48     68     49    165 
Oil and gas                     1,877    465    234   2,576     14     12    128    154 
Retail                          4,089    962    148   5,199     63     30     44    137 
Shipping                          485    220     12     717      5     35      -     40 
Transportation                  1,768    161    102   2,031     20      4     37     61 
=============================  ======  =====  =====  ======  =====  =====  =====  ===== 
Total                          12,543  4,037    815  17,395    153    162    276    591 
Total of Wholesale exposures      10%    26%    29%     12%    45%    41%    32%    37% 
 
                                      Gross exposure            Impairment allowance 
                               ============================  ========================== 
                                Stage  Stage  Stage   Total  Stage  Stage  Stage  Total 
                                    1      2      3              1      2      3 
As at 31.12.20                   GBPm   GBPm   GBPm    GBPm   GBPm   GBPm   GBPm   GBPm 
=============================  ======  =====  =====  ======  =====  =====  =====  ===== 
Air travel                        367    525     56     948      9     27     23     59 
Hospitality and leisure         4,440  2,387    313   7,140     53    115     61    229 
Oil and gas                     1,754    854    465   3,073     31     27    140    198 
Retail                          3,907  1,153    283   5,343     78     51    108    237 
Shipping                          308    389     12     709      2     30      1     33 
Transportation                  1,148    253    125   1,526     19     10     57     86 
=============================  ======  =====  =====  ======  =====  =====  =====  ===== 
Total                          11,924  5,561  1,254  18,739    192    260    390    842 
Total of Wholesale exposures      10%    26%    35%     13%    60%    37%    37%    40% 
 

The coverage ratio for selected sectors has decreased from 4.5% as at 31 December 2020 to 3.4% as at 30 June 2021.

Exposure to UK commercial real estate of GBP9.4bn, excluding government backed schemes, was in line with 31 December 2020 (GBP10.0bn). Coverage decreased from 0.98% to 0.61% in the period.

Movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees

The following tables present a reconciliation of the opening to the closing balance of the exposure and impairment allowance. An explanation of the terms 12-month ECL, lifetime ECL and credit-impaired is included in the Barclays PLC Annual Report 2020 on page 296. Transfers between stages in the table have been reflected as if they had taken place at the beginning of the year. The movements are measured over a 6-month period.

 
Loans and advances at amortised cost 
                                     Stage 1            Stage 2            Stage 3            Total 
                                     Gross             Gross               Gross             Gross 
                                  exposure    ECL   exposure      ECL   exposure    ECL   exposure    ECL 
Home loans                            GBPm   GBPm       GBPm     GBPm       GBPm   GBPm       GBPm   GBPm 
===============================  =========  =====  =========  =======  =========  =====  =========  ===== 
As at 1 January 2021               138,639     33     19,312       84      2,234    421    160,185    538 
                                                                                                    ----- 
Transfers from Stage 1 
 to Stage 2                        (6,369)    (2)      6,369        2          -      -          -      - 
Transfers from Stage 2 
 to Stage 1                          3,615     21    (3,615)     (21)          -      -          -      - 
Transfers to Stage 3                 (160)      -      (337)      (7)        497      7          -      - 
Transfers from Stage 3                  21      -        119        3      (140)    (3)          -      - 
Business activity in the 
 year                               19,231      2        380        1          -      -     19,611      3 
Changes to models used 
 for calculation(1)                      -      -          -      (4)          -     38          -     34 
Net drawdowns, repayments, 
 net re-measurement and 
 movement due to exposure 
 and risk parameter changes        (4,670)   (38)      (667)       13      (124)   (54)    (5,461)   (79) 
Final repayments                   (6,204)    (1)    (1,081)      (2)      (220)    (8)    (7,505)   (11) 
Disposals                                -      -          -        -          -      -          -      - 
Write-offs(2)                            -      -          -        -       (12)   (12)       (12)   (12) 
===============================  =========  =====  =========  =======  =========  =====  =========  ===== 
As at 30 June 2021(3)              144,103     15     20,480       69      2,235    389    166,818    473 
 
Credit cards, unsecured loans and other retail lending 
========================================================================================================= 
As at 1 January 2021                33,021    680     10,320    2,769      3,172  2,251     46,513  5,700 
                                                                                                    ----- 
Transfers from Stage 1 
 to Stage 2                        (1,590)   (72)      1,590       72          -      -          -      - 
Transfers from Stage 2 
 to Stage 1                          4,376  1,080    (4,376)  (1,080)          -      -          -      - 
Transfers to Stage 3                 (264)   (12)      (572)    (282)        836    294          -      - 
Transfers from Stage 3                  30     25         38       14       (68)   (39)          -      - 
Business activity in the 
 year                                3,855     50         58       14         31      8      3,944     72 
Changes to models used 
 for calculation(1)                      -    (5)          -     (33)          -     14          -   (24) 
Net drawdowns, repayments, 
 net re-measurement and 
 movement due to exposure 
 and risk parameter changes(4)     (3,134)  (866)      (808)      310      (123)    282    (4,065)  (274) 
Final repayments                   (1,757)   (46)       (99)     (17)      (140)   (50)    (1,996)  (113) 
Disposals(5)                             -      -          -        -      (101)   (74)      (101)   (74) 
Write-offs(2)                            -      -          -        -      (834)  (834)      (834)  (834) 
===============================  =========  =====  =========  =======  =========  =====  =========  ===== 
As at 30 June 2021(3)               34,537    834      6,151    1,767      2,773  1,852     43,461  4,453 
 
 
 1   Changes to models used for calculation include a GBP34m movement 
      in Home loans, GBP24m in Credit cards, unsecured loans and other 
      retail lending and GBP36m in Wholesale loans. These reflect methodology 
      changes made during the year. Barclays continually review the output 
      of models to determine accuracy of the ECL calculation including 
      review of model monitoring, external benchmarking and experience 
      of model operation over an extended period of time. This ensures 
      that the models used continue to reflect the risks inherent across 
      the businesses. 
 2   In H121, gross write-offs amounted to GBP1,001m (H120: GBP953m) 
      and post write-off recoveries amounted to GBP31m (H120: GBP15m). 
      Net write-offs represent gross write-offs less post write-off recoveries 
      and amounted to GBP970m (H120: GBP938m). 
 3   Other financial assets subject to impairment not included in the 
      table above include cash collateral and settlement balances, financial 
      assets at fair value through other comprehensive income and other 
      assets. These have a total gross exposure of GBP186.0bn (December 
      2020: GBP180.3bn) and impairment allowance of GBP114m (December 
      2020: GBP165m). This comprises GBP9m ECL (December 2020: GBP11m) 
      on GBP185.8bn stage 1 assets (December 2020: GBP175.7bn), GBP3m 
      (December 2020: GBP9m) on GBP58m stage 2 fair value through other 
      comprehensive income assets, other assets and cash collateral and 
      settlement balances (December 2020: GBP4.4bn) and GBP102m (December 
      2020: GBP145m) on GBP109m stage 3 other assets (December 2020: 
      GBP154m). 
 4   Transfers and risk parameter changes include a GBP0.3bn net release 
      in ECL arising from a reclassification of GBP2.2bn gross loans 
      and advances from Stage 2 to Stage 1 in Credit cards, unsecured 
      loans and other retail lending. The reclassification followed a 
      review of back-testing of results which indicated that accuracy 
      of origination probability of default characteristics require management 
      adjustments to correct and was first established in Q220. 
 5   The GBP101m disposals reported within Credit cards, unsecured 
      loans and other retail lending portfolio relates to debt sales 
      undertaken during the year. The GBP1.7bn disposal reported within 
      Wholesale loans includes a sale of GBP0.7bn debt securities as 
      part of Group Treasury Operations and a GBP1.0bn sale of Barclays 
      Asset Finance . 
 
 
Loans and advances at amortised cost 
                                  Stage 1           Stage 2           Stage 3            Total 
                                  Gross             Gross             Gross             Gross 
                               exposure    ECL   exposure    ECL   exposure    ECL   exposure    ECL 
Wholesale loans                    GBPm   GBPm       GBPm   GBPm       GBPm   GBPm       GBPm   GBPm 
============================  =========  =====  =========  =====  =========  =====  =========  ===== 
As at 1 January 2021            119,304    320     21,374    711      3,591  1,066    144,269  2,097 
                                                                                               ----- 
Transfers from Stage 1 
 to Stage 2                     (4,636)   (12)      4,636     12          -      -          -      - 
Transfers from Stage 2 
 to Stage 1                       8,410    188    (8,410)  (188)          -      -          -      - 
Transfers to Stage 3              (249)    (2)      (226)   (17)        475     19          -      - 
Transfers from Stage 3              515     14        376     13      (891)   (27)          -      - 
Business activity in the 
 year                            23,266     35      1,181     30        191     22     24,638     87 
Changes to models used 
 for calculation(1)                   -    (7)          -   (29)          -      -          -   (36) 
Net drawdowns, repayments, 
 net re-measurement and 
 movement due to exposure 
 and risk parameter changes          81  (153)       (47)   (37)      (185)    (1)      (151)  (191) 
Final repayments               (18,854)   (39)    (3,042)   (95)      (203)   (33)   (22,099)  (167) 
Disposals(2)                    (1,495)    (8)      (162)    (3)       (58)   (33)    (1,715)   (44) 
Write-offs(3)                         -      -          -      -      (155)  (155)      (155)  (155) 
============================  =========  =====  =========  =====  =========  =====  =========  ===== 
As at 30 June 2021(4)           126,342    336     15,680    397      2,765    858    144,787  1,591 
 
Reconciliation of ECL movement to impairment charge/(release) 
 for the period                                                                                 GBPm 
=============================================================================================  ----- 
Home loans                                                                                      (53) 
Credit cards, unsecured loans and other retail lending                                         (339) 
Wholesale loans                                                                                (307) 
ECL movement excluding assets derecognised due to disposals 
 and write-offs                                                                                (699) 
Recoveries and reimbursements(5)                                                                 185 
Exchange and other adjustments(6)                                                                132 
Impairment charge on loan commitments and other financial 
 guarantees                                                                                    (343) 
Impairment charge on other financial assets(4)                                                  (17) 
                                                                                    =========  ===== 
Income statement release 
 for the period                                                                                (742) 
 
 
 1   Changes to models used for calculation include a GBP34m movement 
      in Home Loans, GBP24m in Credit cards, unsecured loans and other 
      retail lending and GBP36m in Wholesale loans. These reflect methodology 
      changes made during the year. Barclays continually review the output 
      of models to determine accuracy of the ECL calculation including 
      review of model monitoring, external benchmarking and experience 
      of model operation over an extended period of time. This ensures 
      that the models used continue to reflect the risks inherent across 
      the businesses. 
 2   The GBP101m disposals reported within Credit cards, unsecured 
      loans and other retail lending portfolio relates to debt sales 
      undertaken during the year. The GBP1.7bn disposal reported within 
      Wholesale loans includes a sale of GBP0.7bn debt securities as 
      part of Group Treasury Operations and a GBP1.0bn sale of Barclays 
      Asset Finance . 
 3   In H121, gross write-offs amounted to GBP1,001m (H120: GBP953m) 
      and post write-off recoveries amounted to GBP31m (H120: GBP15m). 
      Net write-offs represent gross write-offs less post write-off recoveries 
      and amounted to GBP970m (H120: GBP938m). 
 4   Other financial assets subject to impairment not included in the 
      table above include cash collateral and settlement balances, financial 
      assets at fair value through other comprehensive income and other 
      assets. These have a total gross exposure of GBP186.0bn (December 
      2020: GBP180.3bn) and impairment allowance of GBP114m (December 
      2020: GBP165m). This comprises GBP9m ECL (December 2020: GBP11m) 
      on GBP185.8bn stage 1 assets (December 2020: GBP175.7bn), GBP3m 
      (December 2020: GBP9m) on GBP58m stage 2 fair value through other 
      comprehensive income assets, other assets and cash collateral and 
      settlement balances (December 2020: GBP4.4bn) and GBP102m (December 
      2020: GBP145m) on GBP109m stage 3 other assets (December 2020: 
      GBP154m). 
 5   Recoveries and reimbursements includes a net loss in relation to 
      reimbursements from financial guarantee contracts held with third 
      parties of GBP216m (H120 gain: GBP279m) and post write off recoveries 
      of GBP31m (H120: GBP15m). 
 6   Includes foreign exchange and interest and fees in suspense. 
 
 
Loan commitments and financial guarantees 
                                  Stage 1           Stage 2           Stage 3           Total 
                                  Gross             Gross             Gross            Gross 
                               exposure    ECL   exposure    ECL   exposure   ECL   exposure    ECL 
Home loans                         GBPm   GBPm       GBPm   GBPm       GBPm  GBPm       GBPm   GBPm 
============================  =========  =====  =========  =====  =========  ====  =========  ===== 
As at 1 January 2021             11,861      -        516      -          5     -     12,382      - 
Net transfers between 
 stages                            (74)      -         71      -          3     -          -      - 
Business activity in the 
 year                             6,287      -          1      -          -     -      6,288      - 
Net drawdowns, repayments, 
 net re-measurement and 
 movement due to exposure 
 and risk parameter changes     (7,397)      -       (17)      -        (2)     -    (7,416)      - 
Limit management and final 
 repayments                       (238)      -       (22)      -        (3)     -      (263)      - 
============================  =========  =====  =========  =====  =========  ====  =========  ===== 
As at 30 June 2021               10,439      -        549      -          3     -     10,991      - 
 
Credit cards, unsecured loans and other retail lending 
=================================================================================================== 
As at 1 January 2021            114,371     55     12,117    305        229    23    126,717    383 
Net transfers between 
 stages                           5,784    217    (6,081)  (212)        297   (5)          -      - 
Business activity in the 
 year                             3,378      1         32      1          1     1      3,411      3 
Net drawdowns, repayments, 
 net re-measurement and 
 movement due to exposure 
 and risk parameter changes     (1,005)  (215)        114     63      (248)     4    (1,139)  (148) 
Limit management and final 
 repayments                     (4,941)    (4)      (398)    (5)       (57)   (3)    (5,396)   (12) 
============================  =========  =====  =========  =====  =========  ====  =========  ===== 
As at 30 June 2021              117,587     54      5,784    152        222    20    123,593    226 
 
Wholesale loans 
============================  =========  =====  =========  =====  =========  ====  =========  ===== 
As at 1 January 2021            163,707    201     40,258    453      2,096    27    206,061    681 
Net transfers between 
 stages                             682    116        504  (112)    (1,186)   (4)          -      - 
Business activity in the 
 year                            37,211     28      2,915     89         12     9     40,138    126 
Net drawdowns, repayments, 
 net re-measurement and 
 movement due to exposure 
 and risk parameter changes       1,603  (146)        680   (63)       (28)     2      2,255  (207) 
Limit management and final 
 repayments                    (33,079)   (25)    (4,994)   (83)      (455)   (5)   (38,528)  (113) 
============================  =========  =====  =========  =====  =========  ====  =========  ===== 
As at 30 June 2021              170,124    174     39,363    284        439    29    209,926    487 
 

Management adjustments to models for impairment

Management adjustments to impairment models are made in the ordinary course of business in order to reflect changes in policy or correct model performance issues identified through model monitoring. These adjustments remain in place until they are incorporated into future model development and are then retired. In addition, they may also be made in response to circumstances or uncertainty at the period end and this is particularly true of the ongoing COVID-19 pandemic.

Total management adjustments to impairment allowance are presented by product below.

Overview of management adjustments to models for impairment allowance(1)

 
                                                As at 30.06.21               As at 31.12.20 
                                              Management   Proportion      Management   Proportion 
                                             adjustments     of total     adjustments     of total 
                                           to impairment   impairment   to impairment   impairment 
                                              allowances   allowances      allowances   allowances 
                                                    GBPm            %            GBPm            % 
========================================  ==============  ===========  ==============  =========== 
Home loans                                            83         17.5             131         24.3 
Credit cards, unsecured loans and other 
 retail lending                                    1,145         24.5           1,234         20.3 
Wholesale loans                                      643         30.9              23          0.8 
========================================  ==============  ===========  ==============  =========== 
Total                                              1,871         25.9           1,388         14.8 
 

Management adjustments to models for impairment allowance(1)

 
                                               Impairment 
                                                allowance      Economic                      Total 
                                           pre management   uncertainty         Other   impairment 
                                           adjustments(2)   adjustments   adjustments    allowance 
As at 30.06.21                                       GBPm          GBPm          GBPm         GBPm 
========================================  ===============  ============  ============  =========== 
Home loans                                            390            41            42          473 
Credit cards, unsecured loans and other 
 retail lending                                     3,534         1,398         (253)        4,679 
Wholesale loans                                     1,435           651           (8)        2,078 
========================================  ===============  ============  ============  =========== 
Total                                               5,359         2,090         (219)        7,230 
 
As at 31.12.20 
========================================  ===============  ============  ============  =========== 
Home loans                                            407            21           110          538 
Credit cards, unsecured loans and other 
 retail lending                                     4,849         1,625         (391)        6,083 
Wholesale loans                                     2,755           421         (398)        2,778 
========================================  ===============  ============  ============  =========== 
Total                                               8,011         2,067         (679)        9,399 
 
 
 1   Positive values reflect an increase in impairment allowance. 
 2   Includes GBP4.3bn (December 2020: GBP6.8bn) of modelled ECL, GBP0.8bn 
      (December 2020: GBP0.9bn) of individually assessed impairments 
      and GBP0.3bn (December 2020: GBP0.3bn) ECL from non-modelled exposures. 
 

Economic uncertainty adjustments

The COVID-19 pandemic has impacted the global economy since early 2020 and macroeconomic forecasts indicate longer-term impacts that will result in higher unemployment levels and customer and client stress. However, to date, little real credit deterioration has occurred, largely as a result of government and other support measures. Observed 30-day arrears rates have reduced in US cards 1.6% (December 2020: 2.5%; December 2019: 2.7%) and in UK cards 1.4% (December 2020: 1.7%; December 2019: 1.7%) due to payment holidays granted to customers impacted by COVID-19 which reduced the delinquency entrance rate and overall flow through delinquency. However, uncertainty remains as government and other support measures taper down as to whether these schemes have either averted or delayed credit losses.

In order to address this uncertainty, adjustments to the modelled provisions were made in 2020. COVID-19 related economic uncertainty adjustments of GBP2.1bn (December 2020: GBP2.1bn) continue to be recognised, specifically to address whether support measures have averted or delayed credit losses. However, within this, the approach has been refined and uncertainty is now captured in two distinct ways: firstly, the identification of specific customers and clients who may be more vulnerable to the withdrawal of relief and secondly, macroeconomic and risk parameter uncertainties which are applied at a portfolio level.

A summary of the adjustments is provided below:

 
 --   A GBP1.2bn adjustment has been applied to customers and clients 
       considered potentially vulnerable to the withdrawal of government 
       and other support schemes. In US consumer card portfolios, the 
       populations identified are those who have higher potential risk 
       indicators and in the UK we have specifically considered the impact 
       of furlough schemes ending (equivalent to UK unemployment increasing 
       to 7.2%). In wholesale portfolios, the populations identified are 
       specific clients who may exhibit greater cross default risk between 
       COVID-19 and other financing exposures, including clients with 
       Bounce Back Loans in Business Banking, and those corporate sectors 
       deemed more vulnerable to the economic impacts of COVID-19. This 
       adjustment is split between credit cards and unsecured loans, GBP0.9bn, 
       and wholesale loans, GBP0.3bn 
 --   Expert judgement has been used to adjust the probability of default 
       at portfolio level to pre-COVID-19 levels to reflect the impact 
       of temporary support measures on underlying customer and client 
       behaviour. Following a refinement to methodology, this has reduced 
       to GBP0.5bn from GBP0.7bn in December 2020. A GBP(0.1)bn PMA to 
       recognise government guarantees remains in place 
 --   Macroeconomic variables which may be temporarily influenced by 
       support measures have been adjusted at a portfolio level enabling 
       the model to consume the economic stress. This is reduced to GBP0.5bn 
       from GBP1.2bn at December 2020 as management judgements have been 
       refined towards potentially vulnerable customers and clients as 
       the pandemic evolves 
 

Other adjustments

Home loans: The low average LTV nature of the UK Home Loans portfolio means that modelled ECL estimates are low in all but the most severe economic scenarios. An adjustment is held to maintain an appropriate level of ECL.

Credit cards, unsecured loans and other retail lending: This materially relates to a net release in ECL due to reclassification of loans and advances from Stage 2 to Stage 1 in credit cards and unsecured loans. The reclassification followed a review of back-testing of results which indicated that the accuracy of origination probability of default characteristics requires management adjustments to correct and was first established in Q220.

Wholesale loans: Represents the net of adjustments for Business Banking and Investment Bank for model inaccuracies informed by back-testing. An adjustment to offset modelled ECL output in the Investment Bank to limit excessive ECL sensitivity to the macroeconomic variable for Federal Tax Receipts in place at December 2020 is materially reduced due to the Q221 scenario refresh.

Measurement uncertainty

The Group uses a five-scenario model to calculate ECL. An external consensus forecast is assembled from key sources, including HM Treasury (short and medium-term forecasts), Bloomberg (based on median of economic forecasts) and the Urban Land Institute (for US House Prices), which forms the Baseline scenario. In addition, two adverse scenarios (Downside 1 and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are derived, with associated probability weightings. The adverse scenarios are calibrated to a broadly similar severity to Barclays' internal stress tests and stress scenarios provided by regulators whilst also considering IFRS 9 specific sensitivities and non-linearity. Downside 2 is benchmarked to the Bank of England's stress scenarios and to the most severe scenario from Moody's inventory, but is not designed to be the same. The favourable scenarios are calibrated to reflect upside risks to the Baseline scenario to the extent that is broadly consistent with recent favourable benchmark scenarios. All scenarios are regenerated at a minimum semi-annually. The scenarios include eight economic variables, (GDP, unemployment, House Price Index (HPI) and base rates, in both the UK and US markets), and expanded variables using statistical models based on historical correlations. The upside and downside shocks are designed to evolve over a five-year stress horizon, with all five scenarios converging to a steady state after approximately eight years.

Macroeconomic indicators were refreshed in Q221, with key drivers for the baseline scenario more optimistic than Q420, resulting in a net ECL provision release. In the Baseline scenario, UK GDP returns to the pre-pandemic level by mid-2022 with peak UK unemployment of just over 6% in Q421. In the Upside 2 scenario, effective fiscal stimulus measures, including public investments in infrastructure and skills, provide a boost to demand and confidence, which in turn leads to economic activity in almost all advanced economies returning to the pre-COVID-19 pandemic levels by the end of 2021. Unemployment levels decline back below 5% by H222 in the UK, and below 4% by early 2022 in the US. In the Downside 2 scenario supply and distribution issues slow the vaccination process and the emergence of new virus variants that are not susceptible to the existing vaccines fuels the outbreak again resulting in full national lockdowns in Q321. This leads to significant falls in GDP in Q321 and UK and US unemployment reaching c.10% and 12% respectively.

Although the macroeconomic outlook has improved, the Group's view on uncertainty remains unchanged, believing potential credit deterioration could be seen once government support is removed, particularly in vulnerable areas of the portfolio. In response, economic uncertainty PMAs remained relatively stable at c.GBP2.1bn. For further details see page 34.

Limited defaults have been observed to date in response to the COVID-19 pandemic, partly as a result of government and bank support measures. However, such support measures are scheduled to taper down from Q321 bringing with it uncertainty. Despite improvement in macroeconomic variables in the period, unemployment remains at elevated levels but portfolios are yet to respond, and may not do so until support measures fall away.

The methodology for estimating probability weights for each of the scenarios involves a comparison of the distribution of key historical UK and US macroeconomic variables against the forecast paths of the 5 scenarios. The range of forecast paths generated in the calculation of the weights at 30 June 2021 is slightly narrower than 31 December 2020 due to lower levels of uncertainty. The Upside 2 and Downside 2 scenarios are therefore nearer the tails of the distribution than previously resulting in lower weights. See page 39 for probability weightings used at H121.

The tables below show the key consensus macroeconomic variables used in the scenarios (3-year annual paths), the probability weights applied to each scenario and the macroeconomic variables by scenario using 'specific bases' i.e. the most extreme position of each variable in the context of the scenario, for example, the highest unemployment for downside scenarios and the lowest unemployment for upside scenarios. The 5-year average table provides additional transparency.

 
Baseline average macroeconomic variables used in the calculation of 
 ECL 
                                                  2021       2022     2023 
As at 30.06.21                                       %          %        % 
==========================================  ==========  =========  ======= 
UK GDP(1)                                          4.9        5.6      2.3 
UK unemployment(2)                                 5.8        5.7      5.1 
UK HPI(3)                                        (0.5)        0.3      3.1 
UK bank rate                                       0.1        0.2      0.4 
US GDP(1)                                          5.7        3.9      1.6 
US unemployment(4)                                 5.6        4.5      4.4 
US HPI(5)                                          3.9        3.5      3.5 
US federal funds rate                              0.3        0.3      0.7 
 
As at 31.12.20 
==========================================  ==========  =========  ======= 
UK GDP(1)                                          6.3        3.3      2.6 
UK unemployment(2)                                 6.7        6.4      5.8 
UK HPI(3)                                          2.4        2.3      5.0 
UK bank rate                                         -      (0.1)        - 
US GDP(1)                                          3.9        3.1      2.9 
US unemployment(4)                                 6.9        5.7      5.6 
US HPI(5)                                          2.8        4.7      4.7 
US federal funds rate                              0.3        0.3      0.3 
 
 
 1   Average Real GDP seasonally adjusted change in year. 
 2   Average UK unemployment rate 16-year+. 
 3   Change in average yearly UK HPI = Halifax All Houses, All Buyers 
      index, relative to prior year end. 
 4   Average US civilian unemployment rate 16-year+. 
 5   Change in average yearly US HPI = FHFA House Price Index, relative 
      to prior year end. 
 
 
Downside 2 average economic variables used in the calculation of ECL 
                                                2021         2022      2023 
As at 30.06.21                                     %            %         % 
=======================================  ===========  ===========  ======== 
UK GDP(1)                                      (1.7)          2.0       5.2 
UK unemployment(2)                               7.3          8.2       6.6 
UK HPI(3)                                      (5.8)        (5.8)       0.2 
UK bank rate                                     0.1            -         - 
US GDP(1)                                        1.5          1.4       2.0 
US unemployment(4)                               8.7         11.0       9.3 
US HPI(5)                                      (4.9)        (3.0)       1.1 
US federal funds rate                            0.3          0.3       0.3 
 
As at 31.12.20 
=======================================  ===========  ===========  ======== 
UK GDP(1)                                      (3.9)          6.5       2.6 
UK unemployment(2)                               8.0          9.3       7.8 
UK HPI(3)                                     (13.6)       (10.8)       0.5 
UK bank rate                                   (0.2)        (0.2)     (0.1) 
US GDP(1)                                      (2.4)          3.6       2.1 
US unemployment(4)                              13.4         11.9      10.1 
US HPI(5)                                     (17.2)        (0.7)       0.6 
US federal funds rate                            0.3          0.3       0.3 
 
 
 1   Average Real GDP seasonally adjusted change in year. 
 2   Average UK unemployment rate 16-year+. 
 3   Change in average yearly UK HPI = Halifax All Houses, All Buyers 
      index, relative to prior year end. 
 4   Average US civilian unemployment rate 16-year+. 
 5   Change in average yearly US HPI = FHFA house price index, relative 
      to prior year end. 
 
 
Downside 1 average economic variables used in the calculation of ECL 
                                                  2021        2022     2023 
As at 30.06.21                                       %           %        % 
==========================================  ==========  ==========  ======= 
UK GDP(1)                                          0.6         4.4      4.2 
UK unemployment(2)                                 6.4         6.6      5.6 
UK HPI(3)                                        (3.1)       (2.7)      1.7 
UK bank rate                                       0.1         0.1      0.2 
US GDP(1)                                          3.4         2.5      1.6 
US unemployment(4)                                 7.4         7.9      6.1 
US HPI(5)                                        (0.5)         0.2      2.3 
US federal funds rate                              0.3         0.3      0.3 
 
As at 31.12.20 
==========================================  ==========  ==========  ======= 
UK GDP(1)                                          0.1         6.6      3.2 
UK unemployment(2)                                 7.3         8.0      6.9 
UK HPI(3)                                        (6.7)       (3.5)      1.7 
UK bank rate                                     (0.1)       (0.1)        - 
US GDP(1)                                          0.4         3.6      2.3 
US unemployment(4)                                11.0         8.9      6.9 
US HPI(5)                                        (5.9)         1.8      2.6 
US federal funds rate                              0.3         0.3      0.3 
 
 
 1   Average Real GDP seasonally adjusted change in year. 
 2   Average UK unemployment rate 16-year+. 
 3   Change in average yearly UK HPI = Halifax All Houses, All Buyers 
      index, relative to prior year end. 
 4   Average US civilian unemployment rate 16-year+. 
 5   Change in average yearly US HPI = FHFA House Price Index, relative 
      to prior year end. 
 
 
Upside 2 average economic variables used in the calculation of ECL 
                                                 2021      2022      2023 
As at 30.06.21                                      %         %         % 
===========================================  ========  ========  ======== 
UK GDP(1)                                         6.8       9.4       4.0 
UK unemployment(2)                                5.5       4.9       4.4 
UK HPI(3)                                         4.6       9.9      11.3 
UK bank rate                                      0.1       0.4       0.6 
US GDP(1)                                         6.5       8.2       3.4 
US unemployment(4)                                5.3       3.8       3.8 
US HPI(5)                                         6.5       8.0       7.3 
US federal funds rate                             0.3       0.3       1.1 
 
As at 31.12.20 
===========================================  ========  ========  ======== 
UK GDP(1)                                        12.2       5.3       3.9 
UK unemployment(2)                                6.2       5.5       4.8 
UK HPI(3)                                         6.6      10.4      10.8 
UK bank rate                                      0.1       0.3       0.3 
US GDP(1)                                         7.1       4.6       4.0 
US unemployment(4)                                5.5       4.3       4.1 
US HPI(5)                                         8.8       9.1       8.9 
US federal funds rate                             0.3       0.4       0.6 
 
 
 1   Average Real GDP seasonally adjusted change in year. 
 2   Average UK unemployment rate 16-year+. 
 3   Change in average yearly UK HPI = Halifax All Houses, All Buyers 
      index, relative to prior year end. 
 4   Average US civilian unemployment rate 16-year+. 
 5   Change in average yearly US HPI = FHFA House Price Index, relative 
      to prior year end. 
 
 
Upside 1 average economic variables used in the calculation of ECL 
                                                 2021      2022      2023 
As at 30.06.21                                      %         %         % 
===========================================  ========  ========  ======== 
UK GDP(1)                                         5.9       7.3       3.0 
UK unemployment(2)                                5.6       5.2       4.7 
UK HPI(3)                                         1.5       4.5       7.4 
UK bank rate                                      0.1       0.2       0.6 
US GDP(1)                                         6.1       5.8       2.4 
US unemployment(4)                                5.5       4.2       4.2 
US HPI(5)                                         6.2       6.8       5.7 
US federal funds rate                             0.3       0.3       0.9 
 
As at 31.12.20 
===========================================  ========  ========  ======== 
UK GDP(1)                                         9.3       3.9       3.4 
UK unemployment(2)                                6.4       6.0       5.2 
UK HPI(3)                                         4.6       6.1       6.1 
UK bank rate                                      0.1       0.1       0.3 
US GDP(1)                                         5.5       4.0       3.7 
US unemployment(4)                                6.0       4.8       4.6 
US HPI(5)                                         6.8       6.7       6.3 
US federal funds rate                             0.3       0.3       0.5 
 
 
 1   Average Real GDP seasonally adjusted change in year. 
 2   Average UK unemployment rate 16-year+. 
 3   Change in average yearly UK HPI = Halifax All Houses, All Buyers 
      index, relative to prior year end. 
 4   Average US civilian unemployment rate 16-year+. 
 5   Change in average yearly US HPI = FHFA House Price Index, relative 
      to prior year end. 
 
 
Scenario probability weighting 
                                 Upside  Upside            Downside  Downside 
                                      2       1  Baseline         1         2 
                                      %       %         %         %         % 
===============================  ======  ======  ========  ========  ======== 
As at 30.06.21 
Scenario probability weighting     19.6    24.5      26.4      16.9      12.6 
===============================  ======  ======  ========  ========  ======== 
As at 31.12.20 
Scenario probability weighting     20.2    24.2      24.7      15.5      15.4 
 

Specific bases show the most extreme position of each variable in the context of the scenario, for example, the highest unemployment for downside scenarios, average unemployment for baseline scenarios and lowest unemployment for upside scenarios. GDP and HPI downside and upside scenario data represents the lowest and highest points relative to the start point in the 20 quarter period.

 
Macroeconomic variables (specific 
 bases)(1) 
                                    Upside  Upside  Baseline  Downside  Downside 
                                         2       1                   1         2 
As at 30.06.21                           %       %         %         %         % 
==================================  ======  ======  ========  ========  ======== 
UK GDP(2)                             25.9    20.2       3.3     (4.2)     (8.1) 
UK unemployment(3)                     4.1     4.3       5.1       7.5       9.8 
UK HPI(4)                             48.2    25.5       1.6     (5.8)    (11.8) 
UK bank rate(3)                        0.1     0.1       0.4       0.3       0.1 
US GDP(2)                             23.7    18.3       2.8     (0.2)     (3.2) 
US unemployment(3)                     3.8     4.2       4.7       8.9      12.0 
US HPI(4)                             41.2    32.6       3.6     (1.3)     (7.9) 
US federal funds rate(3)               0.3     0.3       0.8       1.5       0.8 
 
As at 31.12.20 
==================================  ======  ======  ========  ========  ======== 
UK GDP(2)                             14.2     8.8       0.7    (22.1)    (22.1) 
UK unemployment(3)                     4.0     4.0       5.7       8.4      10.1 
UK HPI(4)                             48.2    30.8       3.6     (4.5)    (18.3) 
UK bank rate(3)                        0.1     0.1         -       0.6       0.6 
US GDP(2)                             15.7    12.8       1.6    (10.6)    (10.6) 
US unemployment(3)                     3.8     3.8       6.4      13.0      13.7 
US HPI(4)                             42.2    30.9       3.8     (3.7)    (15.9) 
US federal funds rate(3)               0.1     0.1       0.3       1.3       1.3 
 
 
 1   UK GDP = Real GDP growth seasonally adjusted; UK unemployment = 
      UK unemployment rate 16-year+; UK HI = Halifax All Houses, All 
      Buyers Index; US GDP = Real GDP growth seasonally adjusted; US 
      unemployment = US civilian unemployment rate 16-year+; US HPI = 
      FHFA House Price Index. 20 quarter period starts from Q121 (2020: 
      Q120). 
 2   Maximum growth relative to Q420 (2020: Q419), based on 20 quarter 
      period in Upside scenarios; 5-year yearly average Compound Annual 
      Growth Rate (CAGR) in Baseline; minimum growth relative to Q420 
      (2020: Q419), based on 20 quarter period in Downside scenarios. 
 3   Lowest quarter in 20 quarter period in Upside scenarios; 5-year 
      average in Baseline; highest quarter in 20 quarter period in Downside 
      scenarios. 
 4   Maximum growth relative to Q420 (2020: Q419), based on 20 quarter 
      period in Upside scenarios; 5-year quarter end CAGR in Baseline; 
      minimum growth relative to Q420 (2020: Q419), based on 20 quarter 
      period in Downside scenarios. 
 

Average basis represents the average quarterly value of variables in the 20 quarter period with GDP and HPI based on yearly average and quarterly CAGRs respectively.

 
Macroeconomic variables (5 year 
 averages)(1) 
                                  Upside  Upside  Baseline  Downside  Downside 
                                       2       1                   1         2 
As at 30.06.21                         %       %         %         %         % 
================================  ======  ======  ========  ========  ======== 
UK GDP(2)                            5.2     4.2       3.3       2.6       1.8 
UK unemployment(3)                   4.6     4.8       5.1       5.7       6.5 
UK HPI(4)                            8.2     4.7       1.6         -     (1.6) 
UK bank rate(3)                      0.7     0.6       0.4       0.2         - 
US GDP(2)                            4.6     3.7       2.8       2.0       1.4 
US unemployment(3)                   4.1     4.4       4.7       6.3       8.5 
US HPI(4)                            7.1     5.8       3.6       1.6     (0.4) 
US federal funds rate(3)             1.1     0.9       0.8       0.6       0.3 
 
As at 31.12.20 
================================  ======  ======  ========  ========  ======== 
UK GDP(2)                            2.5     1.6       0.7       0.1     (0.9) 
UK unemployment(3)                   5.0     5.3       5.7       6.5       7.2 
UK HPI(4)                            8.2     5.5       3.6     (0.2)     (3.6) 
UK bank rate(3)                      0.3     0.2         -         -     (0.1) 
US GDP(2)                            2.9     2.4       1.6       0.8       0.1 
US unemployment(3)                   5.3     5.7       6.4       8.3      10.4 
US HPI(4)                            7.3     5.5       3.8       0.8     (3.0) 
US federal funds rate(3)             0.5     0.5       0.3       0.3       0.3 
 
 
 1   UK GDP = Real GDP growth seasonally adjusted; UK unemployment = 
      UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All 
      Buyers Index; US GDP = Real GDP growth seasonally adjusted; US 
      unemployment = US civilian unemployment rate 16-year+; US HPI = 
      FHFA House Price Index. 
 2   5-year yearly average CAGR, starting 2020 (2020: 2019). 
 3   5-year average. Period based on 20 quarters from Q121 (2020: Q120). 
 4   5-year quarter end CAGR, starting Q420 (2020: Q419). 
 

ECL under 100% weighted scenarios for modelled portfolios

The table below shows the ECL assuming scenarios have been 100% weighted. Model exposures are allocated to a stage based on the individual scenario rather than through a probability-weighted approach as required for Barclays reported impairment allowances. As a result, it is not possible to back solve to the final reported weighted ECL from the individual scenarios as a balance may be assigned to a different stage dependent on the scenario. Model exposure uses exposure at default (EAD) values and is not directly comparable to gross exposure used in prior disclosures. For Credit cards, unsecured loans and other retail lending, an average EAD measure is used (12-month or lifetime, depending on stage allocation in each scenario). Therefore, the model exposure movement into Stage 2 is higher than the corresponding Stage 1 reduction.

All ECL using a model is included, with the exception of Treasury assets (GBP4m of ECL). Non-modelled exposures and management adjustments are excluded. Management adjustments can be found in the Management adjustments to models for impairment section.

Model exposures allocated to Stage 3 do not change in any of the scenarios as the transition criteria relies only on observable evidence of default as at 30 June 2021 and not on macroeconomic scenarios.

The Downside 2 scenario represents a severe global recession with substantial falls in both UK and US GDP. Unemployment in UK markets rises towards 9.8% and US markets rises towards 12% and there are substantial falls in asset prices including housing. Under the Downside 2 scenario, model exposure moves between stages as the economic environment weakens. This can be seen in the movement of GBP18bn of model exposure into Stage 2 between the Weighted and Downside 2 scenario. ECL increases in Stage 2 predominantly due to unsecured portfolios as economic conditions deteriorate.

 
                                                       Scenarios 
                                ======================================================== 
                                Weighted   Upside   Upside  Baseline  Downside  Downside 
As at 30.06.21                                  2        1                   1         2 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 1 Model Exposure (GBPm) 
Home loans                       131,134  133,584  132,343   130,694   128,711   126,953 
Credit cards, unsecured loans 
 and other retail lending         44,014   45,185   44,809    44,307    42,383    39,252 
Wholesale loans                  160,174  162,762  162,201   160,564   158,614   152,164 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 1 Model ECL (GBPm) 
Home loans                             4        2        3         4         6         8 
Credit cards, unsecured loans 
 and other retail lending            379      269      288       324       456       486 
Wholesale loans                      248      187      203       224       306       352 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 1 Coverage (%) 
Home loans                             -        -        -         -         -         - 
Credit cards, unsecured loans 
 and other retail lending            0.9      0.6      0.6       0.7       1.1       1.2 
Wholesale loans                      0.2      0.1      0.1       0.1       0.2       0.2 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 2 Model Exposure (GBPm) 
Home loans                        24,345   21,895   23,136    24,785    26,769    28,526 
Credit cards, unsecured loans 
 and other retail lending          7,175    5,733    6,205     6,819     9,066    12,625 
Wholesale loans                   33,666   31,077   31,639    33,276    35,225    41,676 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 2 Model ECL (GBPm) 
Home loans                            20       13       15        18        27        39 
Credit cards, unsecured loans 
 and other retail lending          1,076      733      841       976     1,544     2,517 
Wholesale loans                      773      594      646       709       939     1,342 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 2 Coverage (%) 
Home loans                           0.1      0.1      0.1       0.1       0.1       0.1 
Credit cards, unsecured loans 
 and other retail lending           15.0     12.8     13.6      14.3      17.0      19.9 
Wholesale loans                      2.3      1.9      2.0       2.1       2.7       3.2 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 3 Model Exposure (GBPm) 
Home loans                         1,829    1,829    1,829     1,829     1,829     1,829 
Credit cards, unsecured loans 
 and other retail lending          2,374    2,374    2,374     2,374     2,374     2,374 
Wholesale loans(1)                 1,374    1,374    1,374     1,374     1,374     1,374 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 3 Model ECL (GBPm) 
Home loans                           324      307      315       325       337       352 
Credit cards, unsecured loans 
 and other retail lending          1,878    1,850    1,864     1,875     1,905     1,920 
Wholesale loans(1)                    67       65       66        67        69        72 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 3 Coverage (%) 
Home loans                          17.7     16.8     17.2      17.8      18.4      19.2 
Credit cards, unsecured loans 
 and other retail lending           79.1     77.9     78.5      79.0      80.2      80.9 
Wholesale loans(1)                   4.9      4.7      4.8       4.9       5.0       5.2 
==============================  ========  =======  =======  ========  ========  ======== 
Total Model ECL (GBPm) 
Home loans                           348      322      333       347       370       399 
Credit cards, unsecured loans 
 and other retail lending          3,333    2,852    2,993     3,175     3,905     4,923 
Wholesale loans(1)                 1,088      846      915     1,000     1,314     1,766 
==============================  ========  =======  =======  ========  ========  ======== 
Total Model ECL                    4,769    4,020    4,241     4,522     5,589     7,088 
 
 
 1   Material wholesale loan defaults are individually assessed across 
      different recovery strategies. As a result, ECL of GBP783m is reported 
      as individually assessed impairments in the table below. 
 
 
Reconciliation to total ECL                                    GBPm 
============================================================  ===== 
Total model ECL                                               4,769 
ECL from individually assessed impairments on stage 3 loans     783 
ECL from non-modelled and other management adjustments(1)     1,678 
============================================================  ===== 
Total ECL                                                     7,230 
 
 
 1   Includes GBP1.9bn post-model adjustments of which GBP0.4bn is included 
      as part of total model ECL and GBP0.2bn ECL from non-modelled exposures. 
 

The dispersion of results around the Baseline is an indication of uncertainty around the future projections. The disclosure highlights the results of the alternative scenarios enabling the reader to understand the extent of the impact on exposure and ECL from the upside/downside scenarios. Consequently, the use of five scenarios with associated weightings results in a total weighted ECL uplift from the Baseline ECL of 5.5%, largely driven by credit card losses which have more linear loss profiles than UK home loans and wholesale loan positions.

Home loans: Total weighted ECL of GBP348m represents a 0.3% increase over the Baseline ECL (GBP347m), and coverage ratios remain steady across the Upside scenarios, Baseline and Downside 1 scenario. However, total ECL increases in the Downside 2 scenario to GBP399m, driven by a significant fall in UK HPI (11.8%) reflecting the non-linearity of the UK portfolio.

Credit cards, unsecured loans and other retail lending: Total weighted ECL of GBP3,333m represents a 5% increase over the Baseline ECL (GBP3,175m) reflecting the range of economic scenarios used, mainly impacted by unemployment and other key retail variables. Total ECL increases to GBP4,923m under Downside 2 scenario, mainly driven by Stage 2, where coverage rates increase to 19.9% from a weighted scenario approach of 15% and circa GBP5.5bn increase in model exposure that meets the Significant Increase in Credit Risk criteria and transitions from Stage 1 to Stage 2.

Wholesale loans: Total weighted ECL of GBP1,088m represents an 8.8% increase over the Baseline ECL (GBP1,000m) reflecting the range of economic scenarios used, with exposures in the Investment Bank particularly sensitive to the Downside 2 scenario.

 
                                                       Scenarios 
                                ======================================================== 
                                Weighted   Upside   Upside  Baseline  Downside  Downside 
As at 31.12.20                                  2        1                   1         2 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 1 Model Exposure (GBPm) 
Home loans                       131,422  134,100  133,246   132,414   130,547   128,369 
Credit cards, unsecured loans 
 and other retail lending         51,952   53,271   52,932    51,995    50,168    48,717 
Wholesale loans                  149,099  155,812  154,578   152,141   144,646   131,415 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 1 Model ECL (GBPm) 
Home loans                             6        4        5         6        14        42 
Credit cards, unsecured loans 
 and other retail lending            392      316      340       372       415       415 
Wholesale loans                      262      242      258       249       278       290 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 1 Coverage (%) 
Home loans                             -        -        -         -         -         - 
Credit cards, unsecured loans 
 and other retail lending            0.8      0.6      0.6       0.7       0.8       0.9 
Wholesale loans                      0.2      0.2      0.2       0.2       0.2       0.2 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 2 Model Exposure (GBPm) 
Home loans                        19,180   16,502   17,356    18,188    20,055    22,233 
Credit cards, unsecured loans 
 and other retail lending         13,399   10,572   11,579    13,176    16,477    19,322 
Wholesale loans                   32,677   25,963   27,198    29,635    37,130    50,361 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 2 Model ECL (GBPm) 
Home loans                            37       31       32        33        42        63 
Credit cards, unsecured loans 
 and other retail lending          2,207    1,618    1,837     2,138     2,865     3,564 
Wholesale loans                    1,410      952    1,047     1,223     1,771     2,911 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 2 Coverage (%) 
Home loans                           0.2      0.2      0.2       0.2       0.2       0.3 
Credit cards, unsecured loans 
 and other retail lending           16.5     15.3     15.9      16.2      17.4      18.4 
Wholesale loans                      4.3      3.7      3.8       4.1       4.8       5.8 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 3 Model Exposure (GBPm) 
Home loans                         1,778    1,778    1,778     1,778     1,778     1,778 
Credit cards, unsecured loans 
 and other retail lending          2,585    2,585    2,585     2,585     2,585     2,585 
Wholesale loans(1)                 2,211    2,211    2,211     2,211     2,211     2,211 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 3 Model ECL (GBPm) 
Home loans                           307      282      286       290       318       386 
Credit cards, unsecured loans 
 and other retail lending          2,003    1,947    1,972     2,001     2,055     2,078 
Wholesale loans(1)                   146      128      134       141       157       184 
==============================  ========  =======  =======  ========  ========  ======== 
Stage 3 Coverage (%) 
Home loans                          17.3     15.9     16.1      16.3      17.9      21.7 
Credit cards, unsecured loans 
 and other retail lending           77.5     75.3     76.3      77.4      79.5      80.4 
Wholesale loans(1)                   6.6      5.8      6.1       6.4       7.1       8.3 
==============================  ========  =======  =======  ========  ========  ======== 
Total Model ECL (GBPm) 
Home loans                           350      317      323       329       374       491 
Credit cards, unsecured loans 
 and other retail lending          4,602    3,881    4,149     4,511     5,335     6,057 
Wholesale loans(1)                 1,818    1,322    1,439     1,613     2,206     3,385 
==============================  ========  =======  =======  ========  ========  ======== 
Total Model ECL                    6,770    5,520    5,911     6,453     7,915     9,933 
 
 
 1   Material wholesale loan defaults are individually assessed across 
      different recovery strategies. As a result, ECL of GBP902m is reported 
      as individually assessed impairments in the table below. 
 
 
Reconciliation to total ECL(1)                                 GBPm 
============================================================  ===== 
Total model ECL                                               6,770 
ECL from individually assessed impairments on stage 3 loans     902 
ECL from non-modelled and other management adjustments        1,727 
============================================================  ===== 
Total ECL                                                     9,399 
 
 
 1   Includes GBP1.4bn of post-model adjustments and GBP0.3bn ECL from 
      non-modelled exposures . 
 

Analysis of specific portfolios and asset types

Payment holidays

Payment holidays are substantially concluded and due to roll off by the end of July 2021. The impact of payment holidays on delinquency performance in the period has been modest and as such detail has not been included in the commentaries below.

Secured home loans

The UK home loan portfolio primarily comprises first lien mortgages and accounts for 93% (December 2020: 93%) of the Group's total home loans balance.

 
Home loans principal portfolios                            Barclays UK 
                                                       ==================== 
                                                           As at      As at 
                                                        30.06.21   31.12.20 
=====================================================  =========  ========= 
Gross loans and advances (GBPm)                          155,247    148,343 
90 day arrears rate, excluding recovery book (%)             0.1        0.2 
Annualised gross charge-off rates - 180 days past 
 due (%)                                                     0.6        0.6 
Recovery book proportion of outstanding balances (%)         0.6        0.6 
Recovery book impairment coverage ratio (%)                  3.4        3.2 
 
Average marked to market LTV 
=====================================================  =========  ========= 
Balance weighted %                                          51.3       50.7 
Valuation weighted %                                        38.0       37.6 
 
                                                       Half year  Half year 
                                                           ended      ended 
New lending                                             30.06.21   30.06.20 
=====================================================  =========  ========= 
New home loan bookings (GBPm)                             19,120      9,977 
New home loan proportion > 90% LTV (%)                       0.9        3.7 
Average LTV on new home loans: balance weighted (%)         68.7       68.4 
Average LTV on new home loans: valuation weighted 
 (%)                                                        61.3       60.0 
 
 
Home loans principal portfolios - distribution of balances by LTV(1) 
 
                                                     Distribution of impairment 
                     Distribution of balances                 allowance                   Coverage ratio 
                   Stage   Stage   Stage            Stage    Stage   Stage          Stage  Stage  Stage 
                       1       2       3   Total        1        2       3   Total      1      2      3  Total 
Barclays UK            %       %       %       %        %        %       %       %      %      %      %      % 
================  ======  ======  ======  ======  =======  =======  ======  ======  =====  =====  =====  ===== 
As at 30.06.21 
<=75%               74.4    11.8     0.7    86.9      6.0     16.4    24.4    46.8      -    0.1    1.7      - 
>75% and <=90%      11.4     0.9       -    12.3      3.9     20.4    10.8    35.1      -    1.2   14.2    0.1 
>90% and <=100%      0.7       -       -     0.7      0.4      0.8     3.4     4.6      -    2.0   46.9    0.3 
>100%                0.1       -       -     0.1      0.2      2.9    10.4    13.5    0.2    8.1   83.5    9.0 
================  ======  ======  ======  ======  =======  =======  ======  ======  =====  =====  =====  ===== 
As at 31.12.20 
<=75%               75.7    11.6     0.6    87.9     17.9     15.0    19.0    51.9      -    0.1    1.8      - 
>75% and <=90%      10.8     0.8       -    11.6      9.7     14.8     7.6    32.1    0.1    1.2   16.0    0.2 
>90% and <=100%      0.4       -       -     0.4      0.8      1.5     2.2     4.5    0.1    2.6   35.7    0.7 
>100%                0.1       -       -     0.1      0.7      3.4     7.4    11.5    0.7   10.3   69.1    8.0 
 
 
 1   Portfolio mark to market based on the most updated valuation including 
      recovery book balances. Updated valuations reflect the application 
      of the latest HPI available as at 30 June 2021. 
 

The increased level of new business was driven by elevated demand in the house purchase market supported by government intervention including stamp duty relief. Also, with the gradual roll back of COVID restrictions, high LTV products were re-introduced in a phased manner during 2021, including the introduction of a 95% LTV product under the Government's mortgage guarantee scheme in April 2021. The comparatively lower LTV > 90% new loan proportion is primarily a result of the mortgage guarantee scheme being live for only 3 months of H121.

Head Office: Italian home loans and advances at amortised cost reduced to GBP5.1bn (2020: GBP5.7bn). The portfolio is secured on residential property with an average balance weighted mark to market LTV of 61% (2020: 62.1%). 90 day arrears decreased to 1.4% (2020: 1.7%), gross charge-off rates decreased to 0.8% (2020: 1.0%).

Credit cards, unsecured loans and other retail lending

The principal portfolios listed below accounted for 83% (December 2020: 84%) of the Group's total credit cards, unsecured loans and other retail lending.

 
Principal portfolios                      30 day      90 day 
                                         arrears     arrears 
                                           rate,       rate,  Annualised 
                                       excluding   excluding       gross      Annualised 
                               Gross    recovery    recovery   write-off   net write-off 
                            exposure        book        book        rate            rate 
As at 30.06.21                  GBPm           %           %           %               % 
=========================  =========  ==========  ==========  ==========  ============== 
Barclays UK 
UK cards                      10,202         1.4         0.6         4.9             4.8 
UK personal loans              4,075         2.3         1.4         3.9             3.6 
Barclays Partner Finance       2,362         0.5         0.2         1.3             1.3 
Barclays International 
US cards                      15,895         1.6         0.9         5.6             5.4 
Germany consumer lending       3,398         1.5         0.7         0.9             0.8 
 
As at 31.12.20 
=========================  =========  ==========  ==========  ==========  ============== 
Barclays UK 
UK cards                      11,911         1.7         0.8         2.9             2.9 
UK personal loans              4,591         2.3         1.2         3.4             3.1 
Barclays Partner Finance       2,469         0.5         0.3         1.1             1.1 
Barclays International 
US cards                      16,845         2.5         1.4         5.6             5.6 
Germany consumer lending       3,458         1.9         0.8         1.2             1.1 
 

UK cards: 30 and 90 day arrears rates reduced by 0.3% and 0.2% to 1.4% and 0.6% respectively, despite balances reducing by c.GBP1.7bn. The reduction in arrears was driven by continued COVID support measures, along with improved book quality reflecting lower consumer demand, tighter lending criteria and reduced customer credit limits. Gross and net write-off rates increased significantly to 4.9% and 4.8% respectively as a result of the significant reduction in overall balances since the accounts originally charged off. In addition, fewer debt sales in 2020, allowed balances to follow the contractual write-off processes, rather than accelerated write-offs due to debt sales.

UK personal loans : 30 day arrears rate was stable at 2.3% whilst the 90 day arrears rate increased by 0.2% to 1.4%. The increase in late cycle arrears was driven by a higher flow in to delinquency, specifically in Q121, of customers previously granted a payment holiday, as well as an overall reduction in balances. Gross and net write-off rates increased as a result of the reduction in overall balances.

Barclays Partner Finance: 30 and 90 day arrears rates remain stable and in line with December 2020.

US cards: 30 and 90 day arrears rates improved and remain below pre-pandemic levels due to government support schemes and industry payment deferrals that were made available to consumers. These factors also contributed to the decrease in balances.

Germany consumer lending: 30 and 90 day arrears rates decreased, reflecting better-than-expected customer resilience, helped by government support schemes. In addition, improvements in collections processes and the implementation of tighter underwriting criteria helped improve the credit quality of the book.

Market Risk

Analysis of management value at risk (VaR)

The table below shows the total management VaR on a diversified basis by asset class. Total management VaR includes all trading positions in CIB and Treasury and it is calculated with a one-day holding period. VaR limits are applied to total management VaR and by asset class. Additionally, the market risk management function applies VaR sub-limits to material businesses and trading desks.

 
Management VaR (95%) by asset class 
 
                              Half year ended      Half year ended      Half year ended 
                                  30.06.21             31.12.20             30.06.20 
                            Average  High   Low  Average  High   Low  Average  High   Low 
                               GBPm  GBPm  GBPm     GBPm  GBPm  GBPm     GBPm  GBPm  GBPm 
==========================  =======  ====  ====  =======  ====  ====  =======  ====  ==== 
Credit risk                      18    30     9       19    23    15       22    38    10 
Interest rate risk                8    15     4       11    17     6        9    17     6 
Equity risk                      10    15     6       10    16     7       15    35     6 
Basis risk                        7    10     4       10    12     7       10    16     7 
Spread risk                       4     6     3        5     7     4        5     9     3 
Foreign exchange 
 risk                             3     6     2        5     7     3        5     7     2 
Commodity risk                    -     1     -        1     1     -        1     1     - 
Inflation risk                    2     3     2        2     3     1        1     2     1 
Diversification effect(1)      (30)   n/a   n/a     (35)   n/a   n/a     (33)   n/a   n/a 
==========================  =======  ====  ====  =======  ====  ====  =======  ====  ==== 
Total management 
 VaR                             22    36    13       28    35    20       35    57    18 
 
 
 1   Diversification effects recognise that forecast losses from different 
      assets or businesses are unlikely to occur concurrently, hence 
      the expected aggregate loss is lower than the sum of the expected 
      losses from each area. Historical correlations between losses are 
      taken into account in making these assessments. The high and low 
      VaR figures reported for each category did not necessarily occur 
      on the same day as the high and low VaR reported as a whole. Consequently, 
      a diversification effect balance for the high and low VaR figures 
      would not be meaningful and is therefore omitted from the above 
      table. 
 

Average management VaR decreased 21% to GBP22m (H220: GBP28m), reflecting a reduction of GBP5m due to a methodology update which changed the historical lookback period of the VaR model from two years to one year and reduced risk taking in the period. The methodology change has increased the responsiveness of the model to changes over time in volatility levels in the lookback period.

Treasury and Capital Risk

The Group has a comprehensive Key Risk Control Framework for managing its liquidity risk. The liquidity framework meets the PRA standards and is designed to maintain liquidity resources that are sufficient in amount and quality, and a funding profile that is appropriate to meet the Group's Liquidity Risk Appetite (LRA). The liquidity framework is delivered via a combination of policy formation, review and governance, analysis, stress testing, limit setting and monitoring.

Liquidity risk stress testing

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 short-term scenarios include a 30 day Barclays-specific stress event, a 90 day market-wide stress event and a 30 day combined scenario consisting of both a Barclays specific and market-wide stress event. The Group also runs a long-term liquidity stress test, which measures the anticipated outflows over a 12 month market-wide scenario.

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 2021, the Group held eligible liquid assets in excess of 100% of net stress outflows to its internal and external regulatory requirements.

 
Liquidity coverage ratio 
                                As at      As at 
                             30.06.21   31.12.20 
                                GBPbn      GBPbn 
==========================  =========  ========= 
Eligible liquidity buffer         280        258 
Net stress outflows             (172)      (159) 
==========================  =========  ========= 
Surplus                           108         99 
 
Liquidity coverage ratio         162%       162% 
 

The Group plans to maintain its surplus to the internal and regulatory stress requirements at an efficient level, while considering risks to market funding conditions and its liquidity position. The continuous reassessment of these risks may lead to execution of appropriate actions to resize the liquidity pool.

 
Composition of the Group liquidity pool 
                                                                                            As at 
                                                         As at 30.06.21                  31.12.20 
                                          ============================================  ========= 
                                                             Liquidity pool of 
                                                        which CRD IV LCR eligible(3) 
                                                     ================================= 
                                          Liquidity                   Level      Level  Liquidity 
                                               pool        Cash           1         2A       pool 
                                              GBPbn       GBPbn       GBPbn      GBPbn      GBPbn 
========================================  =========  ==========  ==========  =========  ========= 
Cash and deposits with central banks(1)         224         217           -          -        197 
 
Government bonds(2) 
AAA to AA-                                       39           -          30          1         31 
A+ to A-                                          6           -           1          5         13 
BBB+ to BBB-                                      2           -           2          -          1 
Total government bonds                           47           -          33          6         45 
 
Other 
Government Guaranteed Issuers, PSEs 
 and GSEs                                         8           -           5          2         10 
International Organisations and MDBs              4           -           4          -          6 
Covered bonds                                     7           -           6          2          8 
Other                                             1           -           -          -          - 
========================================  =========  ==========  ==========  =========  ========= 
Total other                                      20           -          15          4         24 
 
Total as at 30 June 2021                        291         217          48         10        266 
========================================  =========  ==========  ==========  ========= 
Total as at 31 December 2020                    266         192          55         11 
 
 
 1   Includes cash held at central banks and surplus cash at central 
      banks related to payment schemes. Over 98% (December 2020: over 
      98%) was placed with the Bank of England, US Federal Reserve, European 
      Central Bank, Bank of Japan and Swiss National Bank. 
 2   Of which over 76% (December 2020: over 78%) comprised UK, US, French, 
      German, Japanese, Swiss and Dutch securities. 
 3   The LCR eligible liquidity pool is adjusted for trapped liquidity 
      and other regulatory deductions. It also incorporates other CRR 
      (as amended by CRR II) qualifying assets that are not eligible 
      under Barclays' internal risk appetite. 
 

The Group liquidity pool increased to GBP291bn as at 30 June 2021 (December 2020: GBP266bn) driven by continued deposit growth, further borrowing from the Bank of England's Term Funding Scheme with additional incentives for SMEs and a seasonal increase in short-term wholesale funding, which were partly offset by an increase in business funding consumption. During H121, the month-end liquidity pool ranged from GBP290bn to GBP308bn (H220: GBP266bn to GBP332bn), and the month-end average balance was GBP296bn (H220: GBP318bn). The liquidity pool is held unencumbered and is not used to support payment or clearing requirements. Such requirements are treated as part of our regular business funding. The liquidity pool is intended to offset stress outflows, and comprises the above cash and unencumbered assets.

As at 30 June 2021, 60% (December 2020: 64%) of the liquidity pool was located in Barclays Bank PLC, 27% (December 2020: 23%) in Barclays Bank UK PLC and 6% (December 2020: 7%) in Barclays Bank Ireland PLC. The residual portion of the liquidity pool is held outside of these entities, predominantly in US subsidiaries, to meet entity-specific stress outflows and local regulatory requirements. To the extent the use of this residual portion of the liquidity pool is restricted due to local regulatory requirements, it is assumed to be unavailable to the rest of the Group in calculating the LCR.

The composition of the pool is subject to limits set by the Board and the independent liquidity risk, credit risk and market risk functions. In addition, the investment of the liquidity pool is monitored for concentration by issuer, currency and asset type. Given returns generated by these highly liquid assets, the risk and reward profile is continuously managed.

 
Deposit funding 
                                              As at 30.06.21                 As at 31.12.20 
                                ===========================================  ============== 
                                    Loans and 
                                     advances       Deposits 
                                 at amortised   at amortised  Loan: deposit   Loan: deposit 
                                         cost           cost       ratio(1)        ratio(1) 
Funding of loans and advances           GBPbn          GBPbn              %               % 
==============================  =============  =============  =============  ============== 
Barclays UK                               222            256             87              89 
Barclays International                    122            245             50              51 
Head Office                                 5 
==============================  =============  =============  =============  ============== 
Barclays Group                            349            501             70              71 
 
 
 1   The loan: deposit ratio is calculated as loans and advances at 
      amortised cost divided by deposits at amortised cost. 
 

Funding structure and funding relationships

The basis for liquidity risk management is a funding structure that reduces the probability of a liquidity stress leading to an inability to meet funding obligations as they fall due. The Group's overall funding strategy is to develop a diversified funding base (geographically, by type and by counterparty) and maintain access to a variety of alternative funding sources, to provide protection against unexpected fluctuations, while minimising the cost of funding.

Within this, the Group aims to align the sources and uses of funding. As such, retail and corporate loans and advances are largely funded by deposits in the relevant entities, with the surplus primarily funding the liquidity pool. The majority of reverse repurchase agreements are matched by repurchase agreements. Derivative liabilities and assets are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and the remaining portions are largely offset when netted against cash collateral received and paid. Wholesale debt and equity is used to fund residual assets.

These funding relationships as at 30 June 2021 are summarised below:

 
                                       As at      As at                                  As at      As at 
                                    30.06.21   31.12.20                               30.06.21   31.12.20 
Assets                                 GBPbn      GBPbn  Liabilities and equity          GBPbn      GBPbn 
=================================  =========  =========  ==========================  =========  ========= 
Loans and advances at                                    Deposits at amortised 
 amortised cost(1)                       340        335   cost                             501        481 
                                                         <1 Year wholesale 
Group liquidity pool                     291        266   funding                           58         43 
                                                         >1 Year wholesale 
                                                          funding                          101        102 
                                                         Repurchase agreements, 
Reverse repurchase agreements,                            trading portfolio 
 trading portfolio assets,                                liabilities, cash 
 cash collateral and settlement                           collateral and settlement 
 balances                                419        376   balances                         362        324 
                                                         Derivative financial 
Derivative financial instruments         257        302   instruments                      247        301 
Other assets(2)                           69         71  Other liabilities                  39         32 
                                                         Equity                             68         67 
=================================  =========  =========  ==========================  =========  ========= 
                                                         Total liabilities 
Total assets                           1,376      1,350   and equity                     1,376      1,350 
 
 
 1   Adjusted for liquidity pool debt securities reported at amortised 
      cost of GBP9bn (December 2020: GBP8bn). 
 2   Other assets include fair value assets that are not part of reverse 
      repurchase agreements or trading portfolio assets, and other asset 
      categories. 
 

Composition of wholesale funding

Wholesale funding outstanding (excluding repurchase agreements) was GBP158.7bn (December 2020: GBP145bn). In H121, the Group issued GBP5.9bn of MREL eligible instruments from Barclays PLC (the Parent company) in a range of tenors and currencies.

Our operating companies also access wholesale funding markets to maintain their stable and diversified funding bases. Barclays Bank PLC continued to issue in the shorter-term and medium-term notes markets. In addition, Barclays Bank UK PLC continued to issue in the shorter-term markets.

Wholesale funding of GBP57.8bn (December 2020: GBP42.7bn) matures in less than one year, representing 36% (December 2020: 29%) of total wholesale funding outstanding. This includes GBP18.8bn (December 2020: GBP20.3bn) related to term funding(2) .

 
Maturity profile of wholesale funding(1,2) 
                                  <1     1-3     3-6    6-12     <1    1-2    2-3    3-4    4-5     >5 
                               month  months  months  months   year  years  years  years  years  years  Total 
                               GBPbn   GBPbn   GBPbn   GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
=============================  =====  ======  ======  ======  =====  =====  =====  =====  =====  =====  ===== 
Barclays PLC (the Parent 
 company) 
Senior unsecured (public 
 benchmark)                        -     1.2       -     0.8    2.0    4.7    6.8    6.9    5.3   12.1   37.8 
Senior unsecured (privately 
 placed)                           -       -     0.1       -    0.1      -    0.3      -      -    0.5    0.9 
Subordinated liabilities           -       -       -       -      -      -      -    0.9    1.5    6.8    9.2 
Barclays Bank PLC (including 
 subsidiaries) 
Certificates of deposit 
 and commercial paper            3.7     8.0     8.9     8.9   29.5    0.4    0.1      -      -      -   30.0 
Asset backed commercial 
 paper                           2.1     3.2     0.3     0.1    5.7      -      -      -      -      -    5.7 
Senior unsecured (public 
 benchmark)                        -     0.1       -     1.3    1.4      -    1.0      -      -    0.5    2.9 
Senior unsecured (privately 
 placed)(3)                      0.9     2.6     2.3     5.3   11.1    7.7    7.5    4.9    3.5   21.8   56.5 
Covered Bonds                      -       -       -       -      -      -      -      -      -      -      - 
Asset backed securities            -       -     0.5     0.1    0.6    0.6    0.1    0.1    0.3    1.4    3.1 
Subordinated liabilities           -     0.4       -     1.0    1.4    1.1    0.1    0.1      -    0.9    3.6 
Barclays Bank UK PLC 
 (including subsidiaries) 
Certificates of deposit 
 and commercial paper            1.6     2.0     0.1     0.1    3.8      -      -      -      -      -    3.8 
Senior unsecured (public 
 benchmark)                        -       -       -       -      -      -      -      -      -    0.2    0.2 
Covered Bonds                      -       -       -     2.2    2.2    1.7      -      -      -    1.1    5.0 
=============================  =====  ======  ======  ======  =====  =====  =====  =====  =====  =====  ===== 
Total as at 30 June 
 2021                            8.3    17.5    12.2    19.8   57.8   16.2   15.9   12.9   10.6   45.3  158.7 
Of which secured                 2.1     3.2     0.8     2.4    8.5    2.3    0.1    0.1    0.3    2.5   13.8 
Of which unsecured               6.2    14.3    11.4    17.4   49.3   13.9   15.8   12.8   10.3   42.8  144.9 
 
Total as at 31 December 
 2020                            5.7    15.4     9.5    12.1   42.7   15.6   16.7   12.3   10.2   47.5  145.0 
Of which secured                 2.3     5.0     0.7     0.5    8.5    3.1    2.2    0.5    0.2    2.6   17.1 
Of which unsecured               3.4    10.4     8.8    11.6   34.2   12.5   14.5   11.8   10.0   44.9  127.9 
 
 
 1   The composition of wholesale funds comprises the balance sheet 
      reported financial liabilities at fair value, debt securities in 
      issue and subordinated liabilities. It does not include participation 
      in the central bank facilities reported within repurchase agreements 
      and other similar secured borrowing. 
 2   Term funding comprises public benchmark and privately placed senior 
      unsecured notes, covered bonds, asset-backed securities and subordinated 
      debt where the original maturity of the instrument is more than 
      1 year. 
 3   Includes structured notes of GBP47.9bn, of which GBP10.2bn matures 
      within one year. 
 

Credit ratings

In addition to monitoring and managing key metrics related to the financial strength of the Group, Barclays also solicits independent credit ratings from Standard & Poor's Global (S&P), Moody's, Fitch, and Rating and Investment Information (R&I). These ratings assess the creditworthiness of the Group, its subsidiaries and its branches, and are based on reviews of a broad range of business and financial attributes including capital strength, profitability, funding, liquidity, asset quality, strategy and governance.

 
                            Standard 
Barclays Bank PLC           & Poor's       Moody's        Fitch 
====================  ==============  ============  =========== 
Long-term               A / Positive   A1 / Stable  A+ / Stable 
Short-term                       A-1           P-1           F1 
 
Barclays Bank UK PLC 
====================  ==============  ============  =========== 
Long-term               A / Positive   A1 / Stable  A+ / Stable 
Short-term                       A-1           P-1           F1 
 
Barclays PLC 
====================  ==============  ============  =========== 
Long-term             BBB / Positive  Baa2 /Stable   A / Stable 
Short-term                       A-2           P-2           F1 
 

In June 2021, S&P revised the outlooks of Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC to positive from stable, whilst affirming all ratings. The revisions reflect the view that Barclays is delivering a stronger, more consistent business profile and financial performance.

In July 2021, Moody's revised the outlook of Barclays Bank UK PLC to stable from negative due to their view that asset quality and profitability have stabilised following a turbulent 2020.

In July 2021, Fitch revised the outlooks of Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC to stable from negative, whilst affirming all ratings. The revisions reflected improved expectations for economic recovery in Barclays' key markets and the Group's resilient performance through the pandemic.

Barclays also solicits issuer ratings from R&I, and the ratings of A- for Barclays PLC and A for Barclays Bank PLC were affirmed in November 2020 with stable outlooks.

A credit rating downgrade could result in outflows to meet collateral requirements on existing contracts. Outflows related to credit rating downgrades are included in the LRA stress scenarios and a portion of the liquidity pool is held against this risk. Credit ratings downgrades could also result in reduced funding capacity and increased funding costs.

The contractual collateral requirement following one- and two-notch long-term and associated short-term downgrades across all credit rating agencies, would result in outflows of GBP1bn and GBP4bn respectively, and are provided for in determining an appropriate liquidity pool size given the Group's liquidity risk appetite. These numbers do not assume any management or restructuring actions that could be taken to reduce posting requirements. These outflows do not include the potential liquidity impact from loss of unsecured funding, such as from money market funds, or loss of secured funding capacity. However, unsecured and secured funding stresses are included in the LRA stress scenarios and a portion of the liquidity pool is held against these risks.

Capital

The Group's Overall Capital Requirement for CET1 is 11.2% comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.7% Pillar 2A requirement and a 0% Countercyclical Capital Buffer (CCyB).

The Group's CCyB is based on the buffer rate applicable for each jurisdiction in which the Group has exposures. On 11 March 2020, the Financial Policy Committee (FPC) set the CCyB rate for UK exposures at 0% with immediate effect. The buffer rates set by other national authorities for non-UK exposures are not currently material. Overall, this results in a 0.0% CCyB for the Group.

The Group's Pillar 2A requirement as per the PRA's Individual Capital Requirement is 4.8% of which at least 56.25% needs to be met with CET1 capital, equating to approximately 2.7% of RWAs. The Pillar 2A requirement is subject to at least annual review and has been set as a nominal capital amount. This is based on a point in time assessment and the requirement (when expressed as a proportion of RWAs) will change depending on the total RWAs at each reporting period.

Following the withdrawal of the UK from the EU, any references to CRR as amended by CRR II mean, unless otherwise specified, CRR as amended by CRR II, as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018 and subject to the temporary transitional powers (TTP) available to UK regulators to delay or phase-in on-shoring changes to UK regulatory requirements arising at the end of the transition period until 31 March 2022, as at the applicable reporting date. With effect from 26 June 2021, the Financial Services Act 2021 amended CRR as amended by CRR II in part. The amendments included an extension to the application of CRR II settlement netting to the CRR leverage exposure which was due to expire on 27 June 2021 under CRR II quick fix measures. Throughout the TTP period, the Bank of England (BoE) and PRA will continue to review the UK regulatory framework and the Group disclosures will reflect the amended framework as applicable at the effective reporting date.

On 26 April 2019, a prudential backstop was implemented for qualifying exposures originating after 26 April 2019 that have been non-performing for more than 2 years. Where minimum coverage requirements for qualifying non-performing exposures are not met, the difference must be deducted from CET1 capital. Different conversion factors are applied for secured and unsecured exposures depending on the length of time the exposures have been non-performing. For 2021, the conversion factor applied to secured non-performing exposures is 0% and for unsecured non-performing exposures is 35% prior to any coverage being applied. For H121 the impact to CET1 capital is immaterial.

On 9 July 2021, the PRA published their near final policy statement on the implementation of Basel III standards. The policy statement confirmed the PRA's intention to revert to the previous treatment of 100% CET1 capital deduction for qualifying software assets, meaning the c.40bps benefit in the CET1 ratio will be reversed from 1 January 2022.

 
                                                            As at      As at      As at 
Capital ratios(1,2,3)                                    30.06.21   31.03.21   31.12.20 
======================================================  =========  =========  ========= 
CET1                                                        15.1%      14.6%      15.1% 
Tier 1 (T1)                                                 18.9%      18.4%      19.0% 
Total regulatory capital                                    22.3%      21.8%      22.1% 
 
Capital resources                                            GBPm       GBPm       GBPm 
======================================================  =========  =========  ========= 
Total equity excluding non-controlling interests 
 per the balance sheet                                     67,052     65,105     65,797 
Less: other equity instruments (recognised as 
 AT1 capital)                                            (11,167)   (11,179)   (11,172) 
Adjustment to retained earnings for foreseeable 
 ordinary share dividends                                   (510)      (303)      (174) 
Adjustment to retained earnings for foreseeable 
 repurchase of shares                                           -      (439)          - 
Adjustment to retained earnings for foreseeable 
 other equity coupons                                        (35)       (42)       (30) 
 
Other regulatory adjustments and deductions 
Additional value adjustments (PVA)                        (1,447)    (1,496)    (1,146) 
Goodwill and intangible assets                            (6,814)    (6,504)    (6,914) 
Deferred tax assets that rely on future profitability 
 excluding temporary differences                            (664)      (629)      (595) 
Fair value reserves related to gains or losses 
 on cash flow hedges                                        (665)      (850)    (1,575) 
Gains or losses on liabilities at fair value 
 resulting from own credit                                    934      1,202        870 
Defined benefit pension fund assets                       (1,828)    (1,192)    (1,326) 
Direct and indirect holdings by an institution 
 of own CET1 instruments                                     (50)       (50)       (50) 
Adjustment under IFRS 9 transitional arrangements           1,331      2,285      2,556 
Other regulatory adjustments                                   88        (4)         55 
======================================================  =========  =========  ========= 
CET1 capital                                               46,225     45,904     46,296 
 
AT1 capital 
Capital instruments and related share premium 
 accounts                                                  11,167     11,179     11,172 
Qualifying AT1 capital (including minority interests) 
 issued by subsidiaries                                       648        655        646 
Other regulatory adjustments and deductions                  (80)       (80)       (80) 
======================================================  =========  =========  ========= 
AT1 capital                                                11,735     11,754     11,738 
 
T1 capital                                                 57,960     57,658     58,034 
 
T2 capital 
Capital instruments and related share premium 
 accounts                                                   8,969      8,951      7,836 
Qualifying T2 capital (including minority interests) 
 issued by subsidiaries                                     1,401      1,641      1,893 
Credit risk adjustments (excess of impairment 
 over expected losses)                                         79         95         57 
Other regulatory adjustments and deductions                 (160)      (160)      (160) 
======================================================  =========  =========  ========= 
Total regulatory capital                                   68,249     68,185     67,660 
 
Total RWAs                                                306,424    313,356    306,203 
 
 
 1   CET1, T1 and T2 capital, and RWAs are calculated applying the transitional 
      arrangements of the CRR as amended by CRR II. This includes IFRS 
      9 transitional arrangements and the grandfathering of CRR and CRR 
      II non-compliant capital instruments. 
 2   The fully loaded CET1 ratio, as is relevant for assessing against 
      the conversion trigger in Barclays PLC AT1 securities, was 14.7%, 
      with GBP44.9bn of CET1 capital and GBP306.2bn of RWAs calculated 
      without applying the transitional arrangements of the CRR as amended 
      by CRR II. 
 3   The Group's CET1 ratio, as is relevant for assessing against the 
      conversion trigger in Barclays Bank PLC 7.625% Contingent Capital 
      Notes, was 15.1%. For this calculation CET1 capital and RWAs are 
      calculated applying the transitional arrangements under the CRR 
      as amended by CRR II, including the IFRS 9 transitional arrangements. 
      The benefit of the Financial Services Authority (FSA) October 2012 
      interpretation of the transitional provisions, relating to the 
      implementation of CRD IV, expired in December 2017. 
 
 
Movement in CET1 capital                                    Three 
                                                           months  Six months 
                                                            ended       ended 
                                                         30.06.21    30.06.21 
                                                             GBPm        GBPm 
======================================================  =========  ========== 
Opening CET1 capital                                       45,904      46,296 
 
Profit for the period attributable to equity holders        2,302       4,201 
Own credit relating to derivative liabilities                   3          17 
Ordinary share dividends paid and foreseen                  (380)       (509) 
Purchased and foreseeable share repurchase                      -       (700) 
Other equity coupons paid and foreseen                      (187)       (394) 
======================================================  =========  ========== 
Increase in retained regulatory capital generated 
 from earnings                                              1,738       2,615 
 
Net impact of share schemes                                   119        (48) 
Fair value through other comprehensive income reserve          70       (250) 
Currency translation reserve                                 (17)       (495) 
Other reserves                                                  5         (1) 
======================================================  =========  ========== 
Increase / (decrease) in other qualifying reserves            177       (794) 
 
Pension remeasurements within reserves                        289         103 
Defined benefit pension fund asset deduction                (636)       (502) 
======================================================  =========  ========== 
Net impact of pensions                                      (347)       (399) 
 
Additional value adjustments (PVA)                             49       (301) 
Goodwill and intangible assets                              (310)         100 
Deferred tax assets that rely on future profitability 
 excluding those arising from temporary differences          (35)        (69) 
Adjustment under IFRS 9 transitional arrangements           (954)     (1,225) 
Other regulatory adjustments                                    3           2 
======================================================  =========  ========== 
Decrease in regulatory capital due to adjustments 
 and deductions                                           (1,247)     (1,493) 
 
Closing CET1 capital                                       46,225      46,225 
 

CET1 capital decreased GBP0.1bn to GBP46.2bn (December 2020: GBP46.3bn).

GBP4.2bn of capital generated from profits were partially offset by GBP1.6bn dividends paid and foreseen including GBP0.7bn for the share buyback announced with FY20 results, a GBP0.5bn accrual towards a FY21 dividend and GBP0.4bn of equity coupons paid. Other significant movements in the period were:

 
 --   A GBP0.3bn reduction in the fair value through other comprehensive 
       income reserve driven by a decrease in the fair value of bonds 
       due to increasing bond yields 
 --   A 0.5bn decrease in the currency translation reserves driven by 
       the depreciation of period end EUR and USD against GBP 
 --   A GBP0.4bn decrease as a result of movements relating to pensions, 
       largely due to deficit contribution payments of GBP0.35bn in April 
       2021 
 --   A GBP0.3bn increase in the PVA deduction due to the removal of 
       temporary regulatory supporting measures applied to certain additional 
       valuation adjustments 
 --   A GBP1.2bn decrease in IFRS 9 transitional relief, after tax, primarily 
       due to a credit impairment net release, impairment migrations from 
       stage 2 to stage 3 and a decrease to the amount of relief applied 
       to the pre-2020 impairment charge reducing to 50% in 2021 from 
       70% in 2020 
 
 
RWAs by risk type and business 
                                                Counterparty credit 
                          Credit risk                   risk                 Market Risk 
                        ===============  =================================  ============== 
                                                         Settlement                         Operational    Total 
                           STD      IRB     STD     IRB        Risk    CVA     STD     IMA         risk     RWAs 
As at 30.06.21            GBPm     GBPm    GBPm    GBPm        GBPm   GBPm    GBPm    GBPm         GBPm     GBPm 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays UK              7,151   52,995     437       -           -    163      33       -       11,381   72,160 
  Corporate and 
   Investment 
   Bank                 26,406   71,540  15,343  18,973         101  2,668  17,761  18,010       23,453  194,255 
  Consumer, Cards 
   and Payments         19,218    2,509     158      40           -     29       -      55        6,948   28,957 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays International  45,624   74,049  15,501  19,013         101  2,697  17,761  18,065       30,401  223,212 
Head Office              4,591    7,269       -       -           -      -       -       -        (808)   11,052 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays Group          57,366  134,313  15,938  19,013         101  2,860  17,794  18,065       40,974  306,424 
 
As at 30.03.21 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays UK              7,066   53,512     431       -           -    217      64       -       11,381   72,671 
  Corporate and 
   Investment 
   Bank                 25,832   75,854  13,781  19,218         102  2,452  16,479  24,083       23,452  201,253 
  Consumer, Cards 
   and Payments         18,621    2,875     178      41           -     28       -      59        6,949   28,751 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays International  44,453   78,729  13,959  19,259         102  2,480  16,479  24,142       30,401  230,004 
Head Office              4,424    7,065       -       -           -      -       -       -        (808)   10,681 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays Group          55,943  139,306  14,390  19,259         102  2,697  16,543  24,142       40,974  313,356 
 
As at 31.12.20 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays UK              7,360   54,340     394       -           -    136      72       -       11,359   73,661 
  Corporate and 
   Investment 
   Bank                 24,660   73,792  12,047  20,280         246  2,351  13,123  22,363       23,343  192,205 
  Consumer, Cards 
   and Payments         19,754    3,041     177      45           -     31       -      71        6,996   30,115 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays International  44,414   76,833  12,224  20,325         246  2,382  13,123  22,434       30,339  222,320 
Head Office              4,153    6,869       -       -           -      -       -       -        (800)   10,222 
======================  ======  =======  ======  ======  ==========  =====  ======  ======  ===========  ======= 
Barclays Group          55,927  138,042  12,618  20,325         246  2,518  13,195  22,434       40,898  306,203 
 
 
Movement analysis of RWAs 
                                         Counterparty 
                                 Credit        credit   Market  Operational 
                                   risk          risk     risk         risk  Total RWAs 
                                   GBPm          GBPm     GBPm         GBPm        GBPm 
Opening RWAs (as at 31.12.20)   193,969        35,707   35,629       40,898     306,203 
Book size                           378         1,698    1,519           76       3,671 
Acquisitions and disposals        (874)             -        -            -       (874) 
Book quality                      1,074           277        -            -       1,351 
Model updates                   (1,070)         (186)        -            -     (1,256) 
Methodology and policy            (115)           416  (1,289)            -       (988) 
Foreign exchange movements(1)   (1,683)             -        -            -     (1,683) 
Total RWA movements             (2,290)         2,205      230           76         221 
Closing RWAs (as at 30.06.21)   191,679        37,912   35,859       40,974     306,424 
 
 
 1   Foreign exchange movements does not include foreign exchange for 
      counterparty credit risk or market risk. 
 

Overall RWAs remained broadly stable at GBP306.4bn (December 2020: GBP306.2bn).

Credit risk RWAs decreased GBP2.3bn:

 
 --   A GBP1.1bn increase in book quality is primarily due to reduction 
       in credit quality 
 --   A GBP1.1bn decrease in model updates primarily due to modelled 
       risk weight recalibrations 
 --   A GBP1.7bn decrease in FX is due to the depreciation of period 
       end EUR and USD against GBP 
 

Counterparty Credit risk RWAs increased GBP2.2bn:

 
 --   A GBP1.7bn increase in book size primarily due to an increase in 
       trading activities across SFTs and derivatives 
 

Market risk RWAs increased GBP0.2bn:

 
 --   A GBP1.5bn increase in book size primarily due to increased client 
       and trading activities 
 --   A GBP1.3bn decrease in methodology and policy is driven by a change 
       in the historical look back period of the VaR model from two years 
       to one year 
 

Leverage ratio and exposures

The Group is subject to a leverage ratio requirement of 3.8% as at 30 June 2021. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer of 0.0%. Although the leverage ratio is expressed in terms of T1 capital, 75% of the minimum requirement, equating to 2.4375%, needs to be met with CET1 capital. In addition, the G-SII ALRB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was GBP6.3bn.

The Group is required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter. The Group is also required to disclose a UK leverage ratio based on capital and exposure on the last day of the quarter. Both approaches exclude qualifying claims on central banks from the leverage exposures and include the PRA's adoption of CRR II settlement netting.

On 29 June 2021, the FPC and PRA issued a consultation paper on proposed changes to the UK leverage ratio framework. The consultation states the intention to move to a single UK leverage ratio requirement meaning that the CRR leverage ratio will no longer apply for UK banks from 1 January 2022. Whilst largely upholding the existing framework, some technical changes to the exposure measure have been proposed that will align to the Basel III standards. Minimum requirements for the Group remain the same with minimum requirements also expected to be applied at the individual level; individual requirements may be replaced with a sub-consolidated measure, subject to permission from the PRA, from 1 January 2023.

 
                                                     As at      As at      As at 
                                                  30.06.21   31.03.21   31.12.20 
Leverage ratios(1,2)                                  GBPm       GBPm       GBPm 
Average UK leverage ratio                             4.8%       4.9%       5.0% 
Average T1 capital(3)                               57,280     57,040     57,069 
Average UK leverage exposure                     1,191,986  1,174,887  1,146,919 
 
UK leverage ratio                                     5.0%       5.0%       5.3% 
 
CET1 capital                                        46,225     45,904     46,296 
AT1 capital                                         11,087     11,099     11,092 
                                                            =========  ========= 
T1 capital(3)                                       57,312     57,003     57,388 
 
UK leverage exposure                             1,153,570  1,145,413  1,090,907 
 
UK leverage exposure 
Accounting assets 
Derivative financial instruments                   256,636    270,717    302,446 
Derivative cash collateral                          54,063     51,797     64,798 
Securities financing transactions (SFTs)           182,820    189,496    164,034 
Loans and advances and other assets                882,814    867,646    818,236 
                                                            =========  ========= 
Total IFRS assets                                1,376,333  1,379,656  1,349,514 
 
Regulatory consolidation adjustments               (1,406)    (1,926)    (1,144) 
 
Derivatives adjustments 
Derivatives netting                              (229,123)  (242,857)  (272,275) 
Adjustments to collateral                         (42,774)   (45,464)   (57,414) 
Net written credit protection                       16,730     16,814     14,986 
Potential future exposure (PFE) on derivatives     135,162    128,454    117,010 
                                                            =========  ========= 
Total derivatives adjustments                    (120,005)  (143,053)  (197,693) 
 
SFTs adjustments                                    23,511     22,294     21,114 
 
Regulatory deductions and other adjustments       (22,525)   (18,111)   (17,469) 
 
Weighted off-balance sheet commitments             111,870    118,134    113,704 
 
Qualifying central bank claims                   (172,465)  (167,054)  (155,890) 
 
Settlement netting                                (41,743)   (44,527)   (21,229) 
 
UK leverage exposure                             1,153,570  1,145,413  1,090,907 
 
 
 1   Fully loaded average UK leverage ratio was 4.7%, with GBP55.5bn 
      of T1 capital and GBP1,190.2bn of leverage exposure. Fully loaded 
      UK leverage ratio was 4.9%, with GBP56.0bn of T1 capital and GBP1,152.2bn 
      of leverage exposure. Fully loaded UK leverage ratios are calculated 
      without applying the transitional arrangements of the CRR as amended 
      by CRR II. 
 2   Capital and leverage measures are calculated applying the transitional 
      arrangements of the CRR as amended by CRR II. 
 3   T1 capital is calculated in line with the PRA Handbook. 
 

The average UK leverage ratio decreased to 4.8% (December 2020: 5.0%). The average leverage exposure increased by GBP45.1bn to GBP1,192.0bn (December 2020: GBP1,146.9bn) largely driven by an increase in SFTs, TPAs and PFE on derivatives.

The UK leverage ratio decreased to 5.0% (December 2020: 5.3%). The UK leverage exposure increased by GBP62.7bn to GBP1,153.6bn (December 2020: GBP1,090.9bn) primarily driven by a GBP19.3bn increase in TPAs, a GBP18.8bn increase in SFTs and a GBP18.2bn increase in PFE on derivatives due to increased trading activity in CIB.

The Group also discloses a CRR leverage ratio (1) within its additional regulatory disclosures prepared in accordance with EBA guidelines on disclosure under Part Eight of the CRR (see Barclays PLC Pillar 3 Report H1 2021, expected to be published on 13 August 2021 and which will be available at home.barclays/investor-relations/reports-and-events/latest-financial-results ).

 
 1   CRR leverage ratio as amended by CRR II. 
 

MREL

The Group is currently required to meet the higher of: (i) the requirements set by the BoE based on RWAs and the higher of average and UK leverage exposures; and (ii) the requirements in CRR as amended by CRR II based on RWAs and CRR leverage exposures. The MREL requirements are subject to phased implementation and will be fully implemented by 1 January 2022. As at 30 June 2021, the Group's MREL requirement was to meet 6.9% of CRR leverage exposures.

On 22 July 2021 the BoE published a consultation paper on its approach to setting MREL. Under the proposed changes to their 2018 Statement of Policy, from 1 January 2022, the Group's expected MREL requirements will be to meet the higher of: (i) two times the sum of Pillar 1 and Pillar 2A; and (ii) the higher of two times the applicable leverage ratio requirement or 6.75% of leverage exposures. As the FPC and PRA's intention is to move to a single UK leverage framework, this means that CRR leverage exposure requirements in relation to MREL may no longer apply from 1 January 2022. Additionally, the proposals clarify that own funds instruments issued by subsidiaries will no longer be eligible to count towards the Group's MREL from 1 January 2022.

CET1 capital cannot be counted towards both MREL and the capital buffers, meaning that the buffers will effectively be applied above MREL requirements.

 
Own funds and eligible liabilities              As a percentage of               As a percentage of 
 ratios(1,2)                                            RWAs                    CRR leverage exposure 
                                              As at      As at      As at      As at      As at      As at 
                                           30.06.21   31.03.21   31.12.20   30.06.21   31.03.21   31.12.20 
Total Barclays PLC (the Parent 
 company) own funds and eligible 
 liabilities                                  33.7%      32.1%      32.7%       7.7%       7.6%       8.0% 
Total own funds and eligible 
 liabilities, including eligible 
 Barclays Bank PLC instruments                34.4%      32.8%      33.6%       7.9%       7.8%       8.2% 
 
                                                                               As at      As at      As at 
Own funds and eligible liabilities(1,2)                                     30.06.21   31.03.21   31.12.20 
                                                                                GBPm       GBPm       GBPm 
CET1 capital                                                                  46,225     45,904     46,296 
AT1 capital instruments and related share premium 
 accounts(3)                                                                  11,087     11,099     11,092 
T2 capital instruments and related 
 share premium accounts(3)                                                     8,888      8,886      7,733 
Eligible liabilities                                                          37,095     34,571     35,086 
Total Barclays PLC (the Parent company) own funds 
 and eligible liabilities                                                    103,295    100,460    100,207 
Qualifying AT1 capital (including minority interests) 
 issued by subsidiaries                                                          648        655        646 
Qualifying T2 capital (including minority interests) 
 issued by subsidiaries                                                        1,401      1,641      1,893 
Total own funds and eligible liabilities, including 
 eligible Barclays Bank PLC instruments                                      105,344    102,756    102,746 
 
Total RWAs                                                                   306,424    313,356    306,203 
Total CRR leverage exposure(4)                                             1,334,929  1,320,628  1,254,157 
 
 
 1   CET1, T1 and T2 capital, and RWAs are calculated applying the transitional 
      arrangements of the CRR as amended by CRR II. This includes IFRS 
      9 transitional arrangements and the grandfathering of CRR and CRR 
      II non-compliant capital instruments. 
 2   The BoE has set external MREL based on the higher of RWAs and CRR 
      or UK leverage exposures which could result in the binding measure 
      changing in future periods. The 30 June 2021 Barclays PLC (the 
      Parent company) own funds and eligible liabilities ratio as a percentage 
      of the UK leverage exposure was 9.0% and as a percentage of the 
      average UK leverage exposure was 8.7%. 
 3   Includes other AT1 capital regulatory adjustments and deductions 
      of GBP80m (December 2020: GBP80m), and other T2 credit risk adjustments 
      and deductions of GBP81m (December 2020: GBP103m). 
 4   Fully loaded CRR leverage exposure is calculated without applying 
      the transitional arrangements of the CRR as amended by CRR II. 
 

Statement of Directors' Responsibilities

The Directors (the names of whom are set out below) are required to prepare the financial statements on a going concern basis unless it is not appropriate to do so. In making this assessment, the directors have considered information relating to present and future conditions. Each of the Directors confirm that to the best of their knowledge, the condensed consolidated interim financial statements set out on pages 64 to 69 have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the UK, and that the interim management report herein includes a fair review of the information required by Disclosure 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 2021 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 
       2021 that have materially affected the financial position or performance 
       of Barclays during that period and any changes in the related party 
       transactions described in the last Annual Report that could have 
       a material effect on the financial position or performance of Barclays 
       in the six months ended 30 June 2021 
 

Signed on 27 July 2021 on behalf of the Board by

 
James E Staley    Tushar Morzaria 
Group Chief       Group Finance 
 Executive         Director 
 

Barclays PLC Board of Directors:

 
Chairman       Executive Directors  Non-Executive Directors 
Nigel Higgins  James E Staley       Mike Ashley 
                Tushar Morzaria      Tim Breedon CBE 
                                     Mohamed A. El-Erian 
                                     Dawn Fitzpatrick 
                                     Mary Francis CBE 
                                     Crawford Gillies 
                                     Brian Gilvary 
                                     Diane Schueneman 
                                     Julia Wilson 
 

Independent Review Report to Barclays 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 2021 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 2021; 
 --   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 2021 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

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.

Directors' responsibilities

The Interim Results Announcement is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Results Announcement in accordance with the DTR of the UK FCA.

As disclosed in Note 1, the Basis of preparation, the latest annual financial statements of the Barclays Group are prepared in accordance with International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and the next annual financial statements will be prepared in accordance with UK-adopted international accounting standards. The directors are responsible for preparing the condensed set of financial statements included in the Interim Results Announcement in accordance with IAS 34 as adopted for use in the UK.

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.

Michelle Hinchliffe

for and on behalf of KPMG LLP

Chartered Accountants

15 Canada Square

London, E14 5GL

27 July 2021

Condensed Consolidated Financial Statements

 
Condensed consolidated income statement (unaudited) 
                                                                Half year  Half year 
                                                                    ended      ended 
                                                                 30.06.21   30.06.20 
                                                      Notes(1)       GBPm       GBPm 
                                                                =========  ========= 
Interest and similar income                                         5,279      6,437 
Interest and similar expense                                      (1,376)    (2,214) 
                                                      ======== 
Net interest income                                                 3,903      4,223 
Fee and commission income                                3          4,682      4,399 
Fee and commission expense                               3          (976)    (1,090) 
                                                      ======== 
Net fee and commission income                            3          3,706      3,309 
Net trading income                                                  3,482      4,198 
Net investment income                                                 152      (136) 
Other income                                                           72         27 
                                                      ======== 
Total income                                                       11,315     11,621 
Credit impairment releases/(charges)                                  742    (3,738) 
                                                      ======== 
Net operating income                                               12,057      7,883 
 
Staff costs                                              4        (4,334)    (4,053) 
Infrastructure, administration and general expenses      5        (2,798)    (2,510) 
Litigation and conduct                                               (99)       (30) 
                                                      ======== 
Operating expenses                                                (7,231)    (6,593) 
 
Share of post-tax results of associates and joint 
 ventures                                                             154       (31) 
Profit on disposal of subsidiaries, associates 
 and joint ventures                                                   (1)         13 
                                                      ======== 
Profit before tax                                                   4,979      1,272 
Tax charge                                               6          (759)      (113) 
                                                      ======== 
Profit after tax                                                    4,220      1,159 
 
Attributable to: 
                                                      ========  =========  ========= 
Equity holders of the parent                                        3,812        695 
Other equity instrument holders                                       389        427 
                                                      ======== 
Total equity holders of the parent                                  4,201      1,122 
Non-controlling interests                                7             19         37 
                                                      ======== 
Profit after tax                                                    4,220      1,159 
 
Earnings per share                                                      p          p 
                                                                =========  ========= 
Basic earnings per ordinary share                        8           22.2        4.0 
Diluted earnings per ordinary share                      8           21.7        3.9 
 
 
 1   For notes to the Financial Statements see pages 70 to 96. 
 
 
Condensed consolidated statement of comprehensive income (unaudited) 
 
                                                              Half year  Half year 
                                                                  ended      ended 
                                                               30.06.21   30.06.20 
                                                    Notes(1)       GBPm       GBPm 
Profit after tax                                                  4,220      1,159 
 
Other comprehensive income/(loss) that may be recycled 
 to profit or loss:(2) 
                                                                         ========= 
Currency translation reserve                           19         (495)      1,220 
Fair value through other comprehensive income 
 reserve                                               19         (365)        137 
Cash flow hedging reserve                              19         (911)        912 
Other                                                  19             -        (6) 
                                                              =========  ========= 
Other comprehensive income that may be recycled 
 to profit                                                      (1,771)      2,263 
 
Other comprehensive income/(loss) not recycled to profit 
 or loss:(2) 
                                                                         ========= 
Retirement benefit remeasurements                      16           103        645 
Fair value through other comprehensive income 
 reserve                                               19           115      (515) 
Own credit                                             19          (47)        496 
                                                              =========  ========= 
Other comprehensive income not recycled to profit                   171        626 
 
Other comprehensive income for the period                       (1,600)      2,889 
 
Total comprehensive income for the period                         2,620      4,048 
 
Attributable to: 
                                                                         ========= 
Equity holders of the parent                                      2,601      4,011 
Non-controlling interests                                            19         37 
                                                              =========  ========= 
Total comprehensive income for the period                         2,620      4,048 
 
 
 1   For notes to the Financial Statements see pages 70 to 96. 
 2   Reported net of tax. 
 
 
Condensed consolidated balance sheet (unaudited) 
                                                                  As at      As at 
                                                               30.06.21   31.12.20 
Assets                                              Notes(1)       GBPm       GBPm 
Cash and balances at central banks                              216,963    191,127 
Cash collateral and settlement balances                         111,921    101,367 
Loans and advances at amortised cost                   12       348,549    342,632 
Reverse repurchase agreements and other similar 
 secured lending                                                  4,459      9,031 
Trading portfolio assets                                        147,239    127,950 
Financial assets at fair value through the income 
 statement                                                      194,421    175,151 
Derivative financial instruments                       10       256,636    302,446 
Financial assets at fair value through other 
 comprehensive income                                            73,260     78,688 
Investments in associates and joint ventures                        907        781 
Goodwill and intangible assets                         13         8,196      7,948 
Property, plant and equipment                                     3,581      4,036 
Current tax assets                                                  228        477 
Deferred tax assets                                    6          3,771      3,444 
Retirement benefit assets                              16         2,701      1,814 
Other assets                                                      3,501      2,622 
                                                              =========  ========= 
Total assets                                                  1,376,333  1,349,514 
 
Liabilities 
                                                                         ========= 
Deposits at amortised cost                             12       500,895    481,036 
Cash collateral and settlement balances                         101,923     85,423 
Repurchase agreements and other similar secured 
 borrowing                                                       20,005     14,174 
Debt securities in issue                                         90,733     75,796 
Subordinated Liabilities                               14        12,839     16,341 
Trading portfolio liabilities                                    56,986     47,405 
Financial liabilities designated at fair value                  264,164    249,765 
Derivative financial instruments                       10       247,034    300,775 
Current tax liabilities                                             592        645 
Deferred tax liabilities                               6              8         15 
Retirement benefit liabilities                         16           338        291 
Other liabilities                                                10,928      8,662 
Provisions                                             15         1,772      2,304 
                                                              =========  ========= 
Total liabilities                                             1,308,217  1,282,632 
 
Equity 
                                                                         ========= 
Called up share capital and share premium              17         4,568      4,637 
Other reserves                                         19         2,856      4,461 
Retained earnings                                                48,461     45,527 
                                                              =========  ========= 
Shareholders' equity attributable to ordinary 
 shareholders of the parent                                      55,885     54,625 
Other equity instruments                               18        11,167     11,172 
                                                              =========  ========= 
Total equity excluding non-controlling interests                 67,052     65,797 
Non-controlling interests                              7          1,064      1,085 
                                                              =========  ========= 
Total equity                                                     68,116     66,882 
 
Total equity and liabilities                                  1,376,333  1,349,514 
 
 
 1   For notes to the Financial Statements see pages 70 to 96. 
 
 
Condensed consolidated statement of changes in equity (unaudited) 
                                   Called 
                                 up share 
                                  capital            Other 
                                and share           equity         Other   Retained           Non-controlling    Total 
                               premium(1)   instruments(1)   reserves(1)   earnings    Total     interests(2)   equity 
Half year ended 30.06.21             GBPm             GBPm          GBPm       GBPm     GBPm             GBPm     GBPm 
Balance as at 1 January 
 2021                               4,637           11,172         4,461     45,527   65,797            1,085   66,882 
Profit after tax                        -              389             -      3,812    4,201               19    4,220 
Currency translation 
 movements                              -                -         (495)          -    (495)                -    (495) 
Fair value through other 
 comprehensive income 
 reserve                                -                -         (250)          -    (250)                -    (250) 
Cash flow hedges                        -                -         (911)          -    (911)                -    (911) 
Retirement benefit 
 remeasurements                         -                -             -        103      103                -      103 
Own credit                              -                -          (47)          -     (47)                -     (47) 
Total comprehensive income 
 for the period                         -              389       (1,703)      3,915    2,601               19    2,620 
Equity settled share schemes           25                -             -        289      314                -      314 
Other equity instruments 
 coupon paid                            -            (389)             -          -    (389)                -    (389) 
Vesting of employee share 
 schemes                                -                -             4      (397)    (393)                -    (393) 
Dividends paid                          -                -             -      (173)    (173)             (16)    (189) 
Repurchase of shares                 (94)                -            94      (700)    (700)                -    (700) 
Other movements                         -              (5)             -          -      (5)             (24)     (29) 
Balance as at 30 June 2021          4,568           11,167         2,856     48,461   67,052            1,064   68,116 
 
Half year ended 31.12.20 
                                           =============== 
Balance as at 1 July 2020           4,620           10,871         6,996     45,817   68,304            1,237   69,541 
Profit after tax                        -              430             -        831    1,261               41    1,302 
Currency translation 
 movements                              -                -       (1,693)          -  (1,693)                -  (1,693) 
Fair value through other 
 comprehensive income 
 reserve                                -                -           570          -      570                -      570 
Cash flow hedges                        -                -         (339)          -    (339)                -    (339) 
Retirement benefit 
 remeasurements                         -                -             -      (756)    (756)                -    (756) 
Own credit                              -                -       (1,077)          -  (1,077)                -  (1,077) 
Other                                   -                -             -         11       11                -       11 
Total comprehensive income 
 for the period                         -              430       (2,539)         86  (2,023)               41  (1,982) 
Equity settled share schemes           17                -             -      (300)    (283)                -    (283) 
Issue and exchange of other 
 equity instruments                     -              311             -       (55)      256            (158)       98 
Other equity instruments 
 coupon paid                            -            (430)             -          -    (430)                -    (430) 
Vesting of employee share 
 schemes                                -                -             4       (20)     (16)                -     (16) 
Dividends paid                          -                -             -          -        -             (42)     (42) 
Other movements                         -             (10)             -        (1)     (11)                7      (4) 
Balance as at 31 December 
 2020                               4,637           11,172         4,461     45,527   65,797            1,085   66,882 
 
 
 1   Details of share capital, other equity instruments and other reserves 
      are shown on pages 85 to 86. 
 2   Details of non-controlling interests are shown on page 74. 
 
 
Condensed consolidated statement of changes in equity (unaudited) 
                                Called 
                              up share 
                               capital 
                             and share     Other equity         Other   Retained          Non-controlling    Total 
                            premium(1)   instruments(1)   reserves(1)   earnings   Total     interests(2)   equity 
Half year ended 30.06.20          GBPm             GBPm          GBPm       GBPm    GBPm             GBPm     GBPm 
                                                                                  ======                   ======= 
Balance as at 1 January 
 2020                            4,594           10,871         4,760     44,204  64,429            1,231   65,660 
Profit after tax                     -              427             -        695   1,122               37    1,159 
Currency translation 
 movements                           -                -         1,220          -   1,220                -    1,220 
Fair value through 
 other comprehensive 
 income reserve                      -                -         (378)          -   (378)                -    (378) 
Cash flow hedges                     -                -           912          -     912                -      912 
Retirement benefit 
 remeasurements                      -                -             -        645     645                -      645 
Own credit                           -                -           496          -     496                -      496 
Other                                -                -             -        (6)     (6)                -      (6) 
                                                                                  ======                   ======= 
Total comprehensive 
 income for the period               -              427         2,250      1,334   4,011               37    4,048 
Equity settled share 
 schemes                            26                -             -        603     629                -      629 
Other equity instruments 
 coupon paid                         -            (427)             -          -   (427)                -    (427) 
Vesting of employee 
 share schemes                       -                -          (14)      (327)   (341)                -    (341) 
Dividends paid                       -                -             -          -       -             (37)     (37) 
Other movements                      -                -             -          3       3                6        9 
                                                                                  ======                   ======= 
Balance as at 30 June 
 2020                            4,620           10,871         6,996     45,817  68,304            1,237   69,541 
 
 
 1   Details of share capital, other equity instruments and other reserves 
      are shown on pages 85 to 86. 
 2   Details of non-controlling interests are shown on page 74. 
 
 
Condensed consolidated cash flow statement (unaudited) 
                                                          Half year     Half year 
                                                              ended         ended 
                                                           30.06.21   30.06.20(1) 
                                                               GBPm          GBPm 
                                                          =========  ============ 
Profit before tax                                             4,979         1,272 
Adjustment for non-cash items(2)                              6,900       (1,431) 
Net increase in loans and advances at amortised cost(2)         432      (12,868) 
Net increase in deposits at amortised cost                   19,859        51,126 
Net increase in debt securities in issue                     13,041        24,183 
Changes in other operating assets and liabilities(3)        (5,559)       (6,770) 
Corporate income tax paid                                     (712)         (351) 
Net cash from operating activities                           38,940        55,161 
Net cash from investing activities(2)                       (3,389)      (17,844) 
Net cash from financing activities                          (2,562)         3,133 
Effect of exchange rates on cash and cash equivalents       (5,535)         7,814 
Net increase/(decrease) in cash and cash equivalents         27,454        48,264 
Cash and cash equivalents at beginning of the period(3)     210,142       166,613 
Cash and cash equivalents at end of the period(3)           237,596       214,877 
 
 
 1   H120 comparative figures have been restated to make the condensed 
      cash flow statement more relevant following a review of the disclosure 
      and the accounting policies applied that was undertaken in H220. 
      Amendments, which were first applied in the Barclays PLC Annual 
      Report 2020, have been made to the classification of cash collateral 
      reported within cash and cash equivalents and to the presentation 
      of items within net cash flows from operating and investing activities. 
      Footnotes 2 and 3 below quantify the impact of the changes to the 
      respective cash flow categories in H120 and provide further detail. 
 2   Movements in cash and cash equivalents relating to debt securities 
      at amortised cost were previously shown within loans and advances 
      at amortised cost in operating activities. These debt securities 
      holdings are now considered to be part of the investing activity 
      performed by the Group following a change in accounting policy 
      and have been presented within investing activities in H121. Comparatives 
      have been restated. The effect of this change was to reclassify 
      GBP6,245m of net cash outflows from operating activities to investing 
      activities in H120. 
 3   Cash and cash equivalents have been restated to exclude cash collateral 
      and settlement balances, with the exception of balances that the 
      Group holds at central banks related to payment schemes. The effect 
      of this change decreased cash and cash equivalents by GBP28,301m 
      as at 30 June 2020 and GBP16,774m as at 31 December 2019. As a 
      result, net cash from operating activities decreased by GBP11,527m 
      in H120, representing the net increase in the cash collateral and 
      settlement balances line item in this period. 
 

Financial Statement Notes

   1.       Basis of preparation 

These condensed consolidated interim financial statements for the six months ended 30 June 2021 have been prepared in accordance with the Disclosure and Transparency Rules (DTR) of the UK's Financial Conduct Authority (FCA) and IAS 34, Interim Financial Reporting, as published by the International Accounting Standards Board (IASB) and adopted by the UK. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020. The annual financial statements for the year ended 31 December 2020 were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with International Financial Reporting Standards (IFRS) and interpretations (IFRICs) as issued by the IASB and adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union as well as adopted by the UK. UK adopted IFRS and EU adopted IFRS are currently the same and were the same as at 31 December 2020.

The accounting policies and methods of computation used in these condensed consolidated interim financial statements are the same as those used in the Barclays PLC Annual Report 2020.

   1.   Going concern 

The financial statements are prepared on a going concern basis, as the Directors are satisfied that the Group and parent company have the resources to continue in business for a period of at least 12 months from approval of the interim financial statements. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions and includes a review of a working capital report (WCR). The WCR is used by the Directors to assess the future performance of the business and that it has the resources in place that are required to meet its ongoing regulatory requirements. The WCR also includes an assessment of the impact of internally generated stress testing scenarios on the liquidity and capital requirement forecasts. The stress tests used were based upon an assessment of reasonably possible downside economic scenarios that the Group could experience.

The WCR indicated that the Group had sufficient capital in place to support its future business requirements and remained above its regulatory minimum requirements in the internal stress scenarios.

   2.   Other disclosures 

The Credit risk disclosures on pages 27 to 45 form part of these interim financial statements.

   2.       Segmental reporting 
 
Analysis of results by business 
                                  Barclays        Barclays     Head  Barclays 
                                        UK   International   Office     Group 
Half year ended 30.06.21              GBPm            GBPm     GBPm      GBPm 
                                  ========  ==============  =======  ======== 
Total income                         3,199           8,218    (102)    11,315 
Credit impairment releases             443             293        6       742 
                                  ========  ==============  =======  ======== 
Net operating income/(expenses)      3,642           8,511     (96)    12,057 
Operating expenses                 (2,114)         (4,606)    (412)   (7,132) 
Litigation and conduct                (22)            (84)        7      (99) 
                                  ========  ==============  =======  ======== 
Total operating expenses           (2,136)         (4,690)    (405)   (7,231) 
Other net income(1)                      -              22      131       153 
                                  ========  ==============  =======  ======== 
Profit/(loss) before tax             1,506           3,843    (370)     4,979 
 
As at 30.06.21                       GBPbn           GBPbn    GBPbn     GBPbn 
                                  ========  ==============  =======  ======== 
Total assets                         311.2         1,046.8     18.3   1,376.3 
 
 
                                  Barclays        Barclays     Head  Barclays 
                                        UK   International   Office     Group 
Half year ended 30.06.20              GBPm            GBPm     GBPm      GBPm 
Total income                         3,171           8,654    (204)    11,621 
Credit impairment charges          (1,064)         (2,619)     (55)   (3,738) 
Net operating income/(expenses)      2,107           6,035    (259)     7,883 
Operating expenses                 (2,041)         (4,405)    (117)   (6,563) 
Litigation and conduct                (11)            (11)      (8)      (30) 
Total operating expenses           (2,052)         (4,416)    (125)   (6,593) 
Other net income/(expenses)(1)          13              10     (41)      (18) 
Profit/(loss) before tax                68           1,629    (425)     1,272 
 
As at 31.12.20                       GBPbn           GBPbn    GBPbn     GBPbn 
Total assets                         289.1         1,041.8     18.6   1,349.5 
 
 
 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  Half year 
                                              ended      ended 
                                           30.06.21   30.06.20 
                                               GBPm       GBPm 
United Kingdom                                5,895      5,989 
Europe                                        1,222      1,199 
Americas                                      3,608      3,776 
Africa and Middle East                           20         20 
Asia                                            570        637 
Total                                        11,315     11,621 
 
 
 1   The geographical analysis is based on the location of the office 
      where the transactions are recorded. 
 
   3.       Net fee and commission income 

Fee and commission income is disaggregated below and includes a total for fees in scope of IFRS 15, Revenue from Contracts with Customers:

 
                                              Barclays        Barclays 
                                                    UK   International  Head Office  Total 
Half year ended 30.06.21                          GBPm            GBPm         GBPm   GBPm 
Fee type 
Transactional                                      408           1,181            -  1,589 
Advisory                                            83             459            1    543 
Brokerage and execution                            109             553            -    662 
Underwriting and syndication                         -           1,715            -  1,715 
Other                                               35              73            3    111 
Total revenue from contracts with customers        635           3,981            4  4,620 
Other non-contract fee income                        -              62            -     62 
Fee and commission income                          635           4,043            4  4,682 
Fee and commission expense                       (108)           (861)          (7)  (976) 
Net fee and commission income                      527           3,182          (3)  3,706 
 
 
                                              Barclays        Barclays 
                                                    UK   International  Head Office    Total 
Half year ended 30.06.20                          GBPm            GBPm         GBPm     GBPm 
Fee type 
Transactional                                      386           1,157            -    1,543 
Advisory                                            79             306            1      386 
Brokerage and execution                            102             685            -      787 
Underwriting and syndication                         -           1,468            -    1,468 
Other                                               38             115            2      155 
Total revenue from contracts with customers        605           3,731            3    4,339 
Other non-contract fee income                        -              60            -       60 
Fee and commission income                          605           3,791            3    4,399 
Fee and commission expense                       (148)           (940)          (2)  (1,090) 
Net fee and commission income                      457           2,851            1    3,309 
 

Transactional fees are service charges on deposit accounts, cash management services and transactional processing fees. These include interchange and merchant fee income generated from credit and bank card usage.

Advisory fees are generated from wealth management services and investment banking advisory services related to mergers, acquisitions and financial restructurings.

Brokerage and execution fees are earned for executing client transactions with various exchanges and over-the-counter markets and assisting clients in clearing transactions.

Underwriting and syndication fees are earned for the distribution of client equity or debt securities and the arrangement and administration of a loan syndication. These include commitment fees to provide loan financing.

   4.    Staff costs 
 
                                                    Half year  Half year 
                                                        ended      ended 
                                                     30.06.21   30.06.20 
Compensation costs                                       GBPm       GBPm 
Upfront bonus charge                                      824        476 
Deferred bonus charge                                     262        269 
Other incentives                                            6          4 
Performance costs                                       1,092        749 
Salaries                                                2,117      2,153 
Social security costs                                     336        317 
Post-retirement benefits                                  275        268 
Other compensation costs                                  223        254 
Total compensation costs                                4,043      3,741 
 
Other resourcing costs 
Outsourcing                                               171        175 
Redundancy and restructuring                               23         39 
Temporary staff costs                                      55         58 
Other                                                      42         40 
Total other resourcing costs                              291        312 
 
Total staff costs                                       4,334      4,053 
 
Barclays Group compensation costs as a % of total 
 income                                                  35.7       32.2 
 

No material awards have yet been granted in relation to the 2021 bonus pool as decisions regarding incentive awards are not taken by the Remuneration Committee until the performance for the full year can be assessed. The current year bonus charge for the first six months represents an accrual for estimated costs in accordance with accounting requirements. One of the primary considerations when evaluating the accrual is Group and business level returns, aligning colleague and shareholder interests.

The Group has entered into physically settled forward contracts to hedge the settlement of certain share-based payment schemes. The present value of the fixed forward price to be paid under these outstanding contracts is GBP158m and has been recorded in retained earnings.

   5.       Infrastructure, administration and general expenses 
 
                                                            Half year  Half year 
                                                                ended      ended 
                                                             30.06.21   30.06.20 
Infrastructure costs                                             GBPm       GBPm 
Property and equipment                                            709        757 
Depreciation and amortisation                                     832        751 
Lease payments                                                     20         26 
Impairment of property, equipment and intangible assets           304         32 
Total infrastructure costs                                      1,865      1,566 
 
Administration and general expenses 
                                                            =========  ========= 
Consultancy, legal and professional fees                          262        270 
Marketing and advertising                                         163        158 
Other administration and general expenses                         508        516 
Total administration and general expenses                         933        944 
 
Total infrastructure, administration and general expenses       2,798      2,510 
 
   6.       Tax 

The tax charge for H121 was GBP759m (H120: GBP113m), representing an effective tax rate of 15.2% (H120: 8.9%). The effective tax rate for H121 includes a benefit recognised as a result of the increase in the UK corporation tax rate and absent this benefit the tax charge would have been GBP1,151m and the effective tax rate would have been 23.1%. The H120 effective tax rate included a benefit recognised for re-measurement of the Group's UK deferred tax assets as a result of UK corporation tax previously being maintained at a rate of 19%. Included in the H121 tax charge is a credit of GBP104m (H120: GBP112m) in respect of payments made on AT1 instruments that are classified as equity for accounting purposes.

In its Budget held in March 2021, the UK Government announced that the UK rate of corporation tax will increase from 19% to 25% from 1 April 2023. This legislative change has been enacted, resulting in the Group's UK deferred tax assets increasing by GBP223m with a tax benefit in the income statement of GBP392m and a tax charge within other comprehensive income of GBP169m.

The UK Government also announced that it will undertake a review of the additional 8% banking surcharge during 2021. The Budget Report issued on 3 March 2021 outlines that "the government will set out how it intends to ensure that the combined rate of tax on banks' profits does not increase substantially from its current level". Any subsequent reduction in the banking surcharge arising from the Government's review would result in a tax charge in the income statement and tax credit within the other comprehensive income upon enactment as the Group's UK deferred tax assets are again re-measured and decreased, the timing of which is uncertain but is expected to occur in H122.

In the USA, the Biden administration published in April 2021 The Made In America Tax Plan, which proposes an increase in the US federal corporate income tax rate. This would result in a re-measurement to increase the Group's US deferred tax assets upon enactment, the timing of which is uncertain. In addition, revisions to international elements of the US tax regime are being considered that could affect the Group's US tax position in future.

The G7 finance ministers published a communiqué on 5 June 2021 which sets out high level political agreement on global tax reform, including the implementation of a global minimum tax rate. The Group will continue to monitor developments and assess the potential impact of associated future legislative changes.

 
                                          As at      As at 
                                       30.06.21   31.12.20 
Deferred tax assets and liabilities        GBPm       GBPm 
USA                                       1,908      2,049 
UK                                        1,380        886 
Other territories                           483        509 
Deferred tax assets                       3,771      3,444 
Deferred tax liabilities                    (8)       (15) 
 
Analysis of deferred tax assets 
Temporary differences                     2,972      2,709 
Tax losses                                  799        735 
Deferred tax assets                       3,771      3,444 
 
   7.       Non-controlling interests 
 
                                   Profit attributable    Equity attributable 
                                            to                     to 
                                     non-controlling        non-controlling 
                                        interests              interests 
                                   Half year  Half year 
                                       ended      ended       As at      As at 
                                    30.06.21   30.06.20    30.06.21   31.12.20 
                                        GBPm       GBPm        GBPm       GBPm 
                                  ==========  =========  ==========  ========= 
Barclays Bank PLC issued: 
- Preference shares                       13         28         529        529 
- Upper T2 instruments                     3          9         533        533 
Other non-controlling interests            3          -           2         23 
                                  ==========  =========  ==========  ========= 
Total                                     19         37       1,064      1,085 
 
   8.       Earnings per share 
 
                                                    Half year  Half year 
                                                        ended      ended 
                                                     30.06.21   30.06.20 
                                                         GBPm       GBPm 
                                                    =========  ========= 
Profit attributable to ordinary equity holders of 
 the parent                                             3,812        695 
 
                                                            m          m 
                                                    =========  ========= 
Basic weighted average number of shares in issue       17,140     17,294 
Number of potential ordinary shares                       467        319 
                                                    =========  ========= 
Diluted weighted average number of shares              17,607     17,613 
 
                                                            p          p 
                                                    =========  ========= 
Basic earnings per ordinary share                        22.2        4.0 
Diluted earnings per ordinary share                      21.7        3.9 
 
   9.       Dividends on ordinary shares 

A half year dividend for 2021 of 2.0p (H120: 0p) per ordinary share will be paid on 17 September 2021 to shareholders on the register on 13 August 2021.

 
                                         Half year ended    Half year ended 
                                             30.06.21           30.06.20 
                                         Per share  Total   Per share  Total 
Dividends paid during the period                 p   GBPm           p   GBPm 
Full year dividend paid during period          1.0    173           -      - 
 

For qualifying US and Canadian resident ADR holders, the half year dividend of 2.0p per ordinary share becomes 8.0p per ADS (representing 4 shares). The ADR depositary will post the half year dividend on 17 September 2021 to ADR holders on the record at close of business on 13 August 2021.

The Directors have confirmed their intention to initiate a share buyback of up to GBP500m after the balance sheet date. The share buyback is expected to commence in the third quarter of 2021. The financial statements for the six months ended 30 June 2021 do not reflect the impact of the proposed share buyback, which will be accounted for as and when shares are repurchased by the Company.

   10.     Derivative financial instruments 
 
                                                                       Fair value 
                                                        Contract 
                                                        notional 
                                                          amount   Assets  Liabilities 
As at 30.06.21                                              GBPm     GBPm         GBPm 
                                                      ==========  =======  =========== 
Foreign exchange derivatives                           5,654,026   66,963     (64,194) 
Interest rate derivatives                             37,888,009  134,734    (123,436) 
Credit derivatives                                       920,030    5,469      (5,960) 
Equity and stock index and commodity derivatives       1,541,007   48,530     (52,444) 
                                                      ==========  =======  =========== 
Derivative assets/(liabilities) held for trading      46,003,072  255,696    (246,034) 
 
Derivatives in hedge accounting relationships 
Derivatives designated as cash flow hedges                91,278      806            - 
Derivatives designated as fair value hedges              107,879      128        (993) 
Derivatives designated as hedges of net investments        1,595        6          (7) 
                                                      ==========  =======  =========== 
Derivative assets/(liabilities) designated 
 in hedge accounting relationships                       200,752      940      (1,000) 
 
Total recognised derivative assets/(liabilities)      46,203,824  256,636    (247,034) 
 
As at 31.12.20 
Foreign exchange derivatives                           5,554,037   84,739     (84,381) 
Interest rate derivatives                             35,257,371  172,144    (162,402) 
Credit derivatives                                       847,845    4,605      (5,004) 
Equity and stock index and commodity derivatives       1,510,718   40,392     (48,008) 
                                                      ==========  =======  =========== 
Derivative assets/(liabilities) held for trading      43,169,971  301,880    (299,795) 
 
Derivatives in hedge accounting relationships 
Derivatives designated as cash flow hedges                74,437      386            - 
Derivatives designated as fair value hedges              114,556      155        (980) 
Derivatives designated as hedges of net investments          791       25            - 
                                                      ==========  =======  =========== 
Derivative assets/(liabilities) designated 
 in hedge accounting relationships                       189,784      566        (980) 
 
Total recognised derivative assets/(liabilities)      43,359,755  302,446    (300,775) 
 

The IFRS netting posted against derivative assets was GBP33bn including GBP4bn of cash collateral netted (December 2020: GBP44bn including GBP5bn cash collateral netted) and GBP31bn for liabilities including GBP5bn of cash collateral netted (December 2020: GBP42bn including GBP7bn of cash collateral netted). Derivative asset exposures would be GBP230bn (December 2020: GBP276bn) lower than reported under IFRS if netting were permitted for assets and liabilities with the same counterparty or for which the Group holds cash collateral of GBP36bn (December 2020: GBP43bn). Similarly, derivative liabilities would be GBP225bn (December 2020: GBP276bn) lower reflecting counterparty netting and cash collateral placed of GBP31bn (December 2020: GBP43bn). In addition, non-cash collateral of GBP5bn (December 2020: GBP5bn) was held in respect of derivative assets and GBP3bn (December 2020: GBP4bn) was placed in respect of derivative liabilities. Collateral amounts are limited to net on balance sheet exposure so as to not include over-collateralisation.

   11.     Fair value of financial instruments 

This section should be read in conjunction with Note 17, Fair value of financial instruments of the Barclays PLC Annual Report 2020 which provides more detail about accounting policies adopted, valuation methodologies used in calculating fair value and the valuation control framework which governs oversight of valuations. There have been no changes in the accounting policies adopted or the valuation methodologies used.

Valuation

The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification:

 
                                              Valuation technique using 
                                           Quoted                Significant 
                                           market  Observable   unobservable 
                                           prices      inputs         inputs 
                                           (Level      (Level         (Level 
                                               1)          2)             3)      Total 
As at 30.06.21                               GBPm        GBPm           GBPm       GBPm 
Trading portfolio assets                   73,405      71,282          2,552    147,239 
Financial assets at fair value through 
 the income statement                       1,229     185,415          7,777    194,421 
Derivative financial instruments           11,643     241,336          3,657    256,636 
Financial assets at fair value through 
 other comprehensive income                21,375      51,837             48     73,260 
Investment property                             -           -              8          8 
Total assets                              107,652     549,870         14,042    671,564 
 
Trading portfolio liabilities            (30,911)    (26,058)           (17)   (56,986) 
Financial liabilities designated at 
 fair value                                 (142)   (263,710)          (312)  (264,164) 
Derivative financial instruments         (11,227)   (230,207)        (5,600)  (247,034) 
Total liabilities                        (42,280)   (519,975)        (5,929)  (568,184) 
 
As at 31.12.20 
Trading portfolio assets                   60,671      65,416          1,863    127,950 
Financial assets at fair value through 
 the income statement                       4,503     162,142          8,506    175,151 
Derivative financial instruments            9,155     288,822          4,469    302,446 
Financial assets at fair value through 
 other comprehensive income                19,792      58,743            153     78,688 
Investment property                             -           -             10         10 
Total assets                               94,121     575,123         15,001    684,245 
 
Trading portfolio liabilities            (24,391)    (22,986)           (28)   (47,405) 
Financial liabilities designated at 
 fair value                                 (159)   (249,251)          (355)  (249,765) 
Derivative financial instruments          (8,762)   (285,774)        (6,239)  (300,775) 
Total liabilities                        (33,312)   (558,011)        (6,622)  (597,945) 
 

The following table shows the Group's Level 3 assets and liabilities that are held at fair value disaggregated by product type:

 
                                                 As at 30.06.21       As at 31.12.20 
                                               Assets  Liabilities  Assets  Liabilities 
                                                 GBPm         GBPm    GBPm         GBPm 
Interest rate derivatives                         916      (1,269)   1,613      (1,615) 
Foreign exchange derivatives                      151        (129)     144        (143) 
Credit derivatives                                100        (364)     196        (351) 
Equity derivatives                              2,490      (3,838)   2,498      (4,112) 
Commodity derivatives                               -            -      18         (18) 
Corporate debt                                    981         (38)     698          (3) 
Reverse repurchase and repurchase agreements        -        (161)       -        (174) 
Non-asset backed loans                          6,338            -   6,394            - 
Asset backed securities                           562            -     767         (24) 
Equity cash products                              402            -     542            - 
Private equity investments                        979         (16)     873         (14) 
Other(1)                                        1,123        (114)   1,258        (168) 
Total                                          14,042      (5,929)  15,001      (6,622) 
 
 
 1   Other includes commercial real estate loans, funds and fund-linked 
      products, asset backed loans, issued debt, commercial paper, government 
      sponsored debt and investment property. 
 

Assets and liabilities reclassified between Level 1 and Level 2

During the period, there were no material transfers between Level 1 and Level 2 (period ended 31 December 2020: no material transfers between Level 1 and Level 2).

Level 3 movement analysis

The following table summarises the movements in the balances of Level 3 assets and liabilities during the period. The table shows gains and losses and includes amounts for all financial assets and liabilities that are held at fair value transferred to and from Level 3 during the period. Transfers have been reflected as if they had taken place at the beginning of the period.

Asset and liability moves between Level 2 and Level 3 are primarily due to i) an increase or decrease in observable market activity related to an input or ii) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant.

 
Level 3 movement analysis 
                                                                   Total gains 
                                                                    and losses 
                                                                   in the period 
                                                                    recognised 
                                                                   in the income 
                                                                     statement                   Transfers 
                                                                                         Total 
                                                                                         gains 
                                                                                            or 
                                                                                        losses 
                                                                                    recognised 
                     As at                              Settle-  Trading    Other           in                   As at 
                  01.01.21  Purchases    Sales  Issues    ments   income   income          OCI    In    Out   30.06.21 
                      GBPm       GBPm     GBPm    GBPm     GBPm     GBPm     GBPm         GBPm  GBPm   GBPm       GBPm 
Corporate debt         151        305     (87)       -        -       25        -            -    40   (11)        423 
Non-asset 
 backed 
 loans                 709        620    (131)       -     (84)       13        -            -   124  (106)      1,145 
Asset backed 
 securities            686        112    (294)       -        -     (10)        -            -    43   (48)        489 
Equity cash 
 products              214         13     (17)       -        -       32        -            -    29    (9)        262 
Other                  103         21        -       -     (51)      (1)        -            -   162    (1)        233 
Trading 
 portfolio 
 assets              1,863      1,071    (529)       -    (135)       59        -            -   398  (175)      2,552 
 
Non-asset 
 backed 
 loans               5,580        698    (299)       -    (687)    (119)        -            -    69   (48)      5,194 
Equity cash 
 products              326        160    (194)       -        -    (171)       18            -     1      -        140 
Private equity 
 investments           874        106      (9)       -      (8)      (5)       92            -     -   (71)        979 
Other                1,726      2,291  (2,389)       -    (162)     (19)        1            -    16      -      1,464 
Financial 
 assets 
 at fair value 
 through 
 the income 
 statement           8,506      3,255  (2,891)       -    (857)    (314)      111            -    86  (119)      7,777 
 
Non-asset 
 backed 
 loans                 106          -        -       -        -        -        -            -     -  (106)          - 
Asset backed 
 securities             47          4        -       -      (5)        -        -            2     -      -         48 
Assets at fair 
 value through 
 other 
 comprehensive 
 income                153          4        -       -      (5)        -        -            2     -  (106)         48 
 
Investment 
 property               10          -      (2)       -        -        -        -            -     -      -          8 
 
Trading 
 portfolio 
 liabilities          (28)        (3)       14       -        -      (7)        -            -     -      7       (17) 
 
Financial 
 liabilities 
 designated at 
 fair 
 value               (355)          -        -       -       98        7      (2)            -  (78)     18      (312) 
 
Interest rate 
 derivatives           (2)          9        -       -       33    (121)        4            -    21  (297)      (353) 
Foreign 
 exchange 
 derivatives             1          -        -       -       58      (6)        -            -     3   (34)         22 
Credit 
 derivatives         (155)      (117)        2       -      (5)       12      (1)            -     1    (1)      (264) 
Equity 
 derivatives       (1,614)      (315)      (1)       -     (32)    (221)      (1)            -    28    808    (1,348) 
Net derivative 
 financial 
 instruments(1)    (1,770)      (423)        1       -       54    (336)        2            -    53    476    (1,943) 
 
Total                8,379      3,904  (3,407)       -    (845)    (591)      111            2   459    101      8,113 
 
 
 1   Derivative financial instruments are represented on a net basis. 
      On a gross basis, derivative financial assets were GBP3,657m and 
      derivative financial liabilities were GBP5,600m. 
 
 
Level 3 movement analysis 
                                                                   Total gains 
                                                                    and losses 
                                                                   in the period 
                                                                    recognised 
                                                                   in the income 
                                                                     statement                   Transfers 
                                                                                         Total 
                                                                                         gains 
                                                                                            or 
                                                                                        losses 
                                                                                    recognised 
                     As at                              Settle-  Trading    Other           in                   As at 
                  01.01.20  Purchases    Sales  Issues    ments   income   income          OCI    In    Out   30.06.20 
                      GBPm       GBPm     GBPm    GBPm     GBPm     GBPm     GBPm         GBPm  GBPm   GBPm       GBPm 
Corporate debt         120         25        -       -        -     (26)        -            -     4   (17)        106 
Non-asset 
 backed 
 loans                 974      1,926    (740)       -      (4)    (111)        -            -    97  (320)      1,822 
Asset backed 
 securities            656        249    (224)       -     (76)     (12)        -            -    41   (11)        623 
Equity cash 
 products              392          2      (4)       -        -     (67)        -            -    28    (4)        347 
Other                  122         48        -       -        -        2        -            -     8      -        180 
                 =========                                                                                   ========= 
Trading 
 portfolio 
 assets              2,264      2,250    (968)       -     (80)    (214)        -            -   178  (352)      3,078 
 
Non-asset 
 backed 
 loans               5,494      1,050    (270)       -    (410)      381        -            -     -   (58)      6,187 
Equity cash 
 products              835         14        -       -        -     (22)     (28)            -     -      -        799 
Private equity 
 investments           900         19      (6)       -      (2)        2     (44)            -    23   (12)        880 
Other                1,271      1,870  (2,017)       -     (18)      (8)       64            -    24      -      1,186 
                 =========                                                                                   ========= 
Financial 
 assets 
 at fair value 
 through 
 the income 
 statement           8,500      2,953  (2,293)       -    (430)      353      (8)            -    47   (70)      9,052 
 
Non-asset 
 backed 
 loans                 343         79        -       -    (157)        -        -          (3)     -      -        262 
Asset backed 
 securities             86          -      (1)       -        -        1        -          (1)     -      -         85 
                 =========                                                                                   ========= 
Assets at fair 
 value through 
 other 
 comprehensive 
 income                429         79      (1)       -    (157)        1        -          (4)     -      -        347 
 
Investment 
 property               13          -      (1)       -        -        -      (2)            -     2    (2)         10 
 
Trading                  -          -        -       -        -        -        -            -     -      -          - 
portfolio 
liabilities 
 
Financial 
 liabilities 
 designated at 
 fair 
 value               (362)          -        1     (3)        -     (10)        2            -  (22)     25      (369) 
 
Interest rate 
 derivatives         (206)         18        -       -       10      268        1            -   300   (10)        381 
Foreign 
 exchange 
 derivatives           (7)          -        -       -     (12)       89        -            -     5    (8)         67 
Credit 
 derivatives           198      (258)       11       -    (376)      151        1            -     2      8      (263) 
Equity 
 derivatives         (819)      (448)      (1)       -       17     (90)        -            -   (5)   (23)    (1,369) 
                 =========                                                                                   ========= 
Net derivative 
 financial 
 instruments(1)      (834)      (688)       10       -    (361)      418        2            -   302   (33)    (1,184) 
 
Total               10,010      4,594  (3,252)     (3)  (1,028)      548      (6)          (4)   507  (432)     10,934 
 
 
 1   Derivative financial instruments are represented on a net basis. 
      On a gross basis, derivative financial assets were GBP7,748m and 
      derivative financial liabilities were GBP8,932m. 
 

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 30.06.21             Half year ended 30.06.20 
                                       Income statement                     Income statement 
                                                            Other                                Other 
                                                           compre                               compre 
                                      Trading     Other   hensive          Trading     Other   hensive 
                                       income    income    income  Total    income    income    income  Total 
                                         GBPm      GBPm      GBPm   GBPm      GBPm      GBPm      GBPm   GBPm 
Trading portfolio assets                   35         -         -     35     (177)         -         -  (177) 
Financial assets at fair 
 value through the income 
 statement                              (201)       114         -   (87)       397      (53)         -    344 
Financial assets at fair 
 value through other comprehensive 
 income                                     -         -         -      -         -         -       (2)    (2) 
Investment properties                       -         -         -      -         -       (2)         -    (2) 
Trading portfolio liabilities             (6)         -         -    (6)         -         -         -      - 
Financial liabilities designated 
 at fair value                              7         -         -      7      (16)       (1)         -   (17) 
Net derivative financial 
 instruments                            (367)         -         -  (367)       248         -         -    248 
Non-current assets/liabilities 
 held for sale                                                                   -         -         -      - 
Total                                   (532)       114         -  (418)       452      (56)       (2)    394 
 

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.

Current year valuation and sensitivity methodologies are consistent with those described within Note 17, Fair value of financial instruments in the Barclays PLC Annual Report 2020.

 
Sensitivity analysis of valuations using unobservable inputs 
                                           As at 30.06.21                          As at 31.12.20 
                                       Favourable        Unfavourable          Favourable        Unfavourable 
                                          changes             changes             changes             changes 
                                   Income              Income              Income              Income 
                                statement  Equity   statement  Equity   statement  Equity   statement  Equity 
                                     GBPm    GBPm        GBPm    GBPm        GBPm    GBPm        GBPm    GBPm 
Interest rate derivatives              52       -        (83)       -          82       -       (123)       - 
Foreign exchange derivatives            6       -        (10)       -           6       -        (11)       - 
Credit derivatives                     53       -        (44)       -          55       -        (44)       - 
Equity derivatives                    185       -       (193)       -         174       -       (179)       - 
Commodity derivatives                   2       -         (2)       -           2       -         (2)       - 
Corporate debt                         22       -        (16)       -          16       -        (14)       - 
Non-asset backed loans                202       -       (310)       -         190       3       (409)     (3) 
Equity cash products                  130       -       (119)       -         158       -       (141)       - 
Private equity investments            223       -       (198)       -         199       -       (227)       - 
Other(1)                               18       -        (18)       -          21       -        (21)       - 
Total                                 893       -       (993)       -         903       3     (1,171)     (3) 
 
 
 1   Other includes commercial real estate loans, funds and fund-linked 
      products, asset backed loans, issued debt, commercial paper, government 
      sponsored debt and investment property. 
 

The effect of stressing unobservable inputs to a range of reasonably possible alternatives, alongside considering the impact of using alternative models, would be to increase fair values by up to GBP893m (December 2020: GBP906m) or to decrease fair values by up to GBP993m (December 2020: GBP1,174m) with substantially all the potential effect impacting profit and loss rather than reserves.

Significant unobservable inputs

The valuation techniques and significant unobservable inputs for assets and liabilities recognised at fair value and classified as Level 3 are consistent with Note 17, Fair value of financial instruments in the Barclays PLC Annual Report 2020.

Fair value adjustments

Key balance sheet valuation adjustments are quantified below:

 
                                                           As at      As at 
                                                        30.06.21   31.12.20 
                                                            GBPm       GBPm 
Exit price adjustments derived from market bid-offer 
 spreads                                                   (500)      (493) 
Uncollateralised derivative funding                         (80)      (115) 
Derivative credit valuation adjustments                    (210)      (268) 
Derivative debit valuation adjustments                        91        113 
 
 
 --   Exit price adjustments derived from market bid-offer spreads increased 
       by GBP7m to GBP500m 
 --   Uncollateralised derivative funding decreased by GBP35m to GBP80m 
       as a result of tightening input funding spreads 
 --   Derivative credit valuation adjustments decreased by GBP58m to 
       GBP210m as a result of tightening input counterparty credit spreads 
 --   Derivative debit valuation adjustments decreased by GBP22m to GBP91m 
       as a result of tightening input Barclays Bank PLC credit spreads 
 

Portfolio exemption

The Group uses the portfolio exemption in IFRS 13, Fair Value Measurement to measure the fair value of groups of financial assets and liabilities. Instruments are measured using the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the balance sheet date under current market conditions. Accordingly, the Group measures the fair value of the group of financial assets and liabilities consistently with how market participants would price the net risk exposure at the measurement date.

Unrecognised gains as a result of the use of valuation models using unobservable inputs

The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently recognised, is GBP126m (December 2020: GBP116m) for financial instruments measured at fair value and GBP240m (December 2020: GBP247m) for financial instruments carried at amortised cost. There are additions of GBP32m (December 2020: GBP27m) and amortisation and releases of GBP22m (December 2020: GBP24m) for financial instruments measured at fair value and additions of GBPnil (December 2020: GBP6m) and amortisation and releases of GBP7m (December 2020: GBP14m) for financial instruments carried at amortised cost.

Third party credit enhancements

Structured and brokered certificates of deposit issued by the Group are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC) in the United States. The FDIC is funded by premiums that Barclays and other banks pay for deposit insurance coverage. The carrying value of these issued certificates of deposit that are designated under the IFRS 9 fair value option includes this third party credit enhancement. The on balance sheet value of these brokered certificates of deposit amounted to GBP1,241m (December 2020: GBP1,494m).

Comparison of carrying amounts and fair values for assets and liabilities not held at fair value

Valuation methodologies employed in calculating the fair value of financial assets and liabilities measured at amortised cost are consistent with those described within Note 17, Fair value of financial instruments in the Barclays PLC Annual Report 2020.

The following table summarises the fair value of financial assets and liabilities measured at amortised cost on the Group's balance sheet.

 
                                             As at 30.06.21         As at 31.12.20 
                                                                 ===================== 
                                           Carrying               Carrying 
                                             amount  Fair value     amount  Fair value 
Financial assets                               GBPm        GBPm       GBPm        GBPm 
Loans and advances at amortised cost        348,549     347,733    342,632     340,516 
Reverse repurchase agreements and other 
 similar secured lending                      4,459       4,459      9,031       9,031 
 
Financial liabilities 
Deposits at amortised cost                (500,895)   (500,933)  (481,036)   (481,106) 
Repurchase agreements and other similar 
 secured borrowing                         (20,005)    (20,005)   (14,174)    (14,174) 
Debt securities in issue                   (90,733)    (92,746)   (75,796)    (77,813) 
Subordinated liabilities                   (12,839)    (13,434)   (16,341)    (16,918) 
 
   12.     Loans and advances and deposits at amortised cost 
 
                                                        As at      As at 
                                                     30.06.21   31.12.20 
                                                         GBPm       GBPm 
Loans and advances at amortised cost to banks          11,032      8,900 
Loans and advances at amortised cost to customers     309,194    309,927 
Debt securities at amortised cost                      28,323     23,805 
Total loans and advances at amortised cost            348,549    342,632 
 
Deposits at amortised cost from banks                  17,165     17,343 
Deposits at amortised cost from customers             483,730    463,693 
Total deposits at amortised cost                      500,895    481,036 
 
   13.     Goodwill and intangible assets 

Goodwill and intangible assets are allocated to business operations according to business segments as follows:

 
                                As at 30.06.21                As at 31.12.20 
                         Goodwill  Intangibles  Total  Goodwill  Intangibles  Total 
                             GBPm         GBPm   GBPm      GBPm         GBPm   GBPm 
Barclays UK                 3,560        1,570  5,130     3,560        1,618  5,178 
Barclays International        286        2,735  3,021       289        2,435  2,724 
Head Office                    42            3     45        42            4     46 
Total                       3,888        4,308  8,196     3,891        4,057  7,948 
 

The Group performed an impairment review to assess the recoverability of its goodwill and intangible asset balances as at 31 December 2020. The outcome of this review is disclosed on pages 332-335 of the Barclays PLC Annual Report 2020. The review highlighted that there had been a significant reduction in the value in use of the Personal Banking and Business Banking cash generating units within Barclays UK. No impairment was recognised as a result of the review as value in use exceeded carrying amount. Since the 2020 impairment review, management have observed improvements in the UK macroeconomic environment and interest rate outlook. The Group's goodwill and intangible assets have been reviewed for indicators of impairment in the period, with no indicators being identified.

   14.       Subordinated liabilities 
 
                                  Half year 
                                      ended  Year ended 
                                   30.06.21    31.12.20 
                                       GBPm        GBPm 
Opening balance as at 1 January      16,341      18,156 
Issuances                             1,734       1,438 
Redemptions                         (4,534)     (3,464) 
Other                                 (702)         211 
Closing balance                      12,839      16,341 
 

Issuances of GBP1,734m comprise GBP855m EUR 1.125% Fixed Rate Resetting Subordinated Callable Notes and GBP724m USD 3.811% Fixed Rate Resetting Subordinated Callable Notes, both issued externally by Barclays PLC and GBP82m ZAR Floating Rate Notes and GBP73m USD Floating Rate Notes issued externally by Barclays subsidiaries.

Redemptions of GBP4,534m comprise GBP1,961m GBP 10% Fixed Rate Subordinated Notes, GBP1,339m EUR 6% Fixed Rate Subordinated Notes, GBP1,075m USD 10.179% Fixed Rate Subordinated Notes and GBP86m EUR Subordinated Floating Rate Notes, issued externally by Barclays Bank PLC and GBP73m USD Floating Rate Notes issued externally by a Barclays subsidiary.

Other movements predominantly comprise foreign exchange movements and fair value hedge adjustments.

   15.       Provisions 
 
                                                                As at      As at 
                                                             30.06.21   31.12.20 
                                                                 GBPm       GBPm 
Customer redress                                                  449        497 
Legal, competition and regulatory matters                         223        268 
Redundancy and restructuring                                       88        158 
Undrawn contractually committed facilities and guarantees         713      1,064 
Onerous contracts                                                  14         28 
Sundry provisions                                                 285        289 
                                                            ========= 
Total                                                           1,772      2,304 
 
   16.     Retirement benefits 

As at 30 June 2021, the Group's IAS 19 pension surplus across all schemes was GBP2.4bn (December 2020: GBP1.5bn). The UK Retirement Fund (UKRF), which is the Group's main scheme, had an IAS 19 pension surplus of GBP2.6bn (December 2020: GBP1.8bn). The movement for the UKRF was driven by payment of deficit reduction contributions, and an increase in the discount rate, partially offset by higher than expected long-term price inflation.

UKRF funding valuations

The latest annual update as at 30 September 2020 showed the funding deficit had improved to GBP0.9bn from the GBP2.3bn shown at the 30 September 2019 triennial valuation. The improvement was mainly due to GBP1.0bn of deficit reduction contributions paid over the year. The deficit recovery plan agreed at the last triennial valuation requires deficit reduction contributions from Barclays Bank PLC of GBP700m in 2021, GBP294m in 2022 and GBP286m in 2023. The deficit reduction contributions are in addition to the regular contributions to meet the Group's share of the cost of benefits accruing over each year. GBP350m of the 2021 deficit reduction contributions were paid in April 2021, with the remaining GBP350m for 2021 due in September 2021. The next triennial actuarial valuation of the UKRF is due to be completed in 2023 with an effective date of 30 September 2022.

   17.     Called up share capital 
 
                                                                        Total 
                                                                        share 
                                               Ordinary               capital 
                                                  share     Share   and share 
                                                capital   premium     premium 
Half year ended 30.06.21                           GBPm      GBPm        GBPm 
Opening balance as at 1 January                   4,340       297       4,637 
Issue of shares under employee share schemes          3        22          25 
Repurchase of shares                               (94)         -        (94) 
                                                                   ========== 
Closing balance                                   4,249       319       4,568 
 

Called up share capital comprised 16,998m (December 2020: 17,359m) ordinary shares of 25p each. The decrease is mainly due to the repurchase of 377m shares as part of the GBP0.7bn share buyback, partially offset by an increase due to the issuance of shares under employee share schemes.

   18.     Other equity instruments 
 
                                  Half year 
                                      ended  Year ended 
                                   30.06.21    31.12.20 
                                       GBPm        GBPm 
Opening balance as at 1 January      11,172      10,871 
Issuances                                 -       1,142 
Redemptions                               -       (831) 
Securities held by the Group            (5)        (10) 
================================  =========  ========== 
Closing balance                      11,167      11,172 
 

Other equity instruments of GBP11,167m (December 2020: GBP11,172m) include AT1 securities issued by Barclays PLC. There have been no issuances or redemptions in the period.

The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under prevailing capital rules applicable as at the relevant issue date. AT1 securities are undated and are redeemable, at the option of Barclays PLC, in whole on (i) the initial call date, or on any fifth anniversary after the initial call date or (ii) any day falling in a named period ending on the initial reset date, or on any fifth anniversary after the initial reset date. In addition, the AT1 securities are redeemable, at the option of Barclays PLC, in whole in the event of certain changes in the tax or regulatory treatment of the securities. Any redemptions require the prior consent of the PRA.

All Barclays PLC AT1 securities will be converted into ordinary shares of Barclays PLC, at a pre-determined price, should the fully loaded CET1 ratio of the Group fall below 7%.

   19.     Other reserves 
 
                                                            As at      As at 
                                                         30.06.21   31.12.20 
                                                             GBPm       GBPm 
                                                        =========  ========= 
Currency translation reserve                                2,376      2,871 
Fair value through other comprehensive income reserve       (245)          5 
Cash flow hedging reserve                                     664      1,575 
Own credit reserve                                        (1,001)      (954) 
Other reserves and treasury shares                          1,062        964 
======================================================  =========  ========= 
Total                                                       2,856      4,461 
 

Currency translation reserve

The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group's net investment in foreign operations, net of the effects of hedging.

As at 30 June 2021, there was a credit balance of GBP2,376m (December 2020: GBP2,871m credit) in the currency translation reserve. The GBP495m debit movement principally reflects the strengthening of GBP against USD and EUR during the period.

Fair value through other comprehensive income reserve

The fair value through other comprehensive income reserve represents the unrealised change in the fair value through other comprehensive income investments since initial recognition.

As at 30 June 2021, there was a debit balance of GBP245m (December 2020: GBP5m credit) in the fair value through other comprehensive income reserve. The loss of GBP250m is principally driven by a loss of GBP325m from the decrease in fair value of bonds due to increasing bond yields and GBP199m of net gains transferred to the income statement. This is partially offset by a gain of GBP114m due to an increase in the Absa Group Limited share price and a tax credit of GBP168m. GBP8m release in impairment was also noted during the period.

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 2021, there was a credit balance of GBP664m (December 2020: GBP1,575m credit) in the cash flow hedging reserve. The decrease of GBP911m principally reflects a GBP902m decrease in the fair value of interest rate swaps held for hedging purposes as major interest rate forward curves increased and GBP287m of gains transferred to the income statement. This is partially offset by a tax credit of GBP282m.

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 2021, there was a debit balance of GBP1,001m (December 2020: GBP954m debit) in the own credit reserve. The movement of GBP47m principally reflects a GBP266m loss from the tightening of Barclays' funding spreads. This is partially offset by other activity of GBP100m and a tax credit of GBP115m.

Other reserves and treasury shares

Other reserves relate to redeemed ordinary and preference shares issued by the Group. Treasury shares relate to Barclays PLC shares held principally in relation to the Group's various share schemes.

As at 30 June 2021, there was a credit balance of GBP1,062m (December 2020: GBP964m credit) in other reserves and treasury shares. This is driven by an increase of GBP94m due to the repurchase of 377m shares as part of the GBP0.7bn share buyback and a GBP4m increase due to a reduction in treasury shares held in relation to employee share schemes.

   20.       Contingent liabilities and commitments 
 
                                                             As at      As at 
                                                          30.06.21   31.12.20 
Contingent liabilities                                        GBPm       GBPm 
=======================================================  =========  ========= 
Guarantees and letters of credit pledged as collateral 
 security                                                   13,519     15,665 
Performance guarantees, acceptances and endorsements         5,679      5,944 
Total                                                       19,198     21,609 
 
Commitments 
                                                         ========= 
Documentary credits and other short-term trade related 
 transactions                                                1,017      1,086 
Standby facilities, credit lines and other commitments     345,281    331,963 
Total                                                      346,298    333,049 
 

In addition to the above, Note 21, 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.

   21.     Legal, competition and regulatory matters 

The Group faces legal, competition and regulatory challenges, many of which are beyond our control. The extent of the impact of these matters cannot always be predicted but may materially impact our operations, financial results, condition and prospects. Matters arising from a set of similar circumstances can give rise to either a contingent liability or a provision, or both, depending on the relevant facts and circumstances.

The recognition of provisions in relation to such matters involves critical accounting estimates and judgments in accordance with the relevant accounting policies applicable to Note 15, Provisions. We have not disclosed an estimate of the potential financial impact or effect on the Group of contingent liabilities where it is not currently practicable to do so. Various matters detailed in this note seek damages of an unspecified amount. While certain matters specify the damages claimed, such claimed amounts do not necessarily reflect the Group's potential financial exposure in respect of those matters.

Matters are ordered under headings corresponding to the financial statements in which they are disclosed.

   1.   Barclays PLC and Barclays Bank PLC 

Investigations into certain advisory services agreements and related civil action

FCA proceedings

In 2008, Barclays Bank PLC and Qatar Holdings LLC entered into two advisory service agreements (the Agreements). The Financial Conduct Authority (FCA) conducted an investigation into whether the Agreements may have related to Barclays PLC's capital raisings in June and November 2008 (the Capital Raisings) and therefore should have been disclosed in the announcements or public documents relating to the Capital Raisings. In 2013, the FCA issued warning notices (the Notices) finding that Barclays PLC and Barclays Bank PLC acted recklessly and in breach of certain disclosure-related listing rules, and that Barclays PLC was also in breach of Listing Principle 3. The financial penalty provided in the Notices is GBP50m. Barclays PLC and Barclays Bank PLC continue to contest the findings. Following the conclusion of the Serious Fraud Office (SFO) proceedings against certain former Barclays executives resulting in their acquittals, the FCA proceedings, which were stayed, have resumed.

Civil action

In 2021, the High Court of Justice (High Court) dismissed a claim brought by PCP Capital Partners LLP and PCP International Finance Limited (PCP) against Barclays Bank PLC for fraudulent misrepresentation and deceit, arising from certain statements made by Barclays Bank PLC to PCP relating to the November 2008 capital raising. PCP's application to appeal the High Court's decision has also been refused which concludes these proceedings.

Investigations into LIBOR and other benchmarks and related civil actions

Regulators and law enforcement agencies, including certain competition authorities, from a number of governments have conducted investigations relating to Barclays Bank PLC's involvement in allegedly manipulating certain financial benchmarks, such as LIBOR. The SFO closed its investigation with no action to be taken against the Group. Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group and other banks in relation to the alleged manipulation of LIBOR and/or other benchmarks.

USD LIBOR civil actions

The majority of the USD LIBOR cases, which have been filed in various US jurisdictions, have been consolidated for pre-trial purposes in the US District Court in the Southern District of New York (SDNY). The complaints are substantially similar and allege, among other things, that Barclays PLC, Barclays Bank PLC, Barclays Capital Inc. (BCI) and other financial institutions individually and collectively violated provisions of the US Sherman Antitrust Act (Antitrust Act), the US Commodity Exchange Act (CEA), the US Racketeer Influenced and Corrupt Organizations Act (RICO), the Securities Exchange Act of 1934 and various state laws by manipulating USD LIBOR rates.

Putative class actions and individual actions seek unspecified damages with the exception of three lawsuits, in which the plaintiffs are seeking a combined total of approximately $100m in actual damages and additional punitive damages against all defendants, including Barclays Bank PLC. Some of the lawsuits also seek trebling of damages under the Antitrust Act and RICO. Barclays Bank PLC has previously settled certain claims. Two class action settlements where Barclays Bank PLC has respectively paid $7.1m and $20m, have received final court approval. Barclays Bank PLC also settled a further matter for $7.5m, paid in June 2021.

Sterling LIBOR civil actions

In 2016, two putative class actions filed in the SDNY against Barclays Bank PLC, BCI and other Sterling LIBOR panel banks alleging, among other things, that the defendants manipulated the Sterling LIBOR rate in violation of the Antitrust Act, CEA and RICO, were consolidated. The defendants' motion to dismiss the claims was granted in 2018. The plaintiffs have appealed the dismissal.

Japanese Yen LIBOR civil actions

In 2012, a putative class action was filed in the SDNY against Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a lead plaintiff involved in exchange-traded derivatives and members of the Japanese Bankers Association's Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR) panel. The complaint alleges, among other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates and breaches of the CEA and the Antitrust Act. In 2014, the court dismissed the plaintiff's antitrust claims, and, in 2020, the court dismissed the plaintiff's remaining CEA claims. The plaintiff has appealed the lower court's dismissal of such claims.

In 2015, a second putative class action, making similar allegations to the above class action, was filed in the SDNY against Barclays PLC, Barclays Bank PLC and BCI. The plaintiffs filed an amended complaint in 2020, and the defendants have filed a motion to dismiss.

SIBOR/SOR civil action

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). In 2018, the court dismissed all claims against Barclays PLC, Barclays Bank PLC and BCI. The plaintiffs' appeal of the dismissal of their claims was granted in March 2021 and the matter has been remanded to the lower court for further proceedings.

ICE LIBOR civil actions

In 2019, several putative class actions were filed in the SDNY against a panel of banks, including Barclays PLC, Barclays Bank PLC, BCI, other financial institution defendants and Intercontinental Exchange Inc. and certain of its affiliates (ICE), asserting antitrust claims that defendants manipulated USD LIBOR through defendants' submissions to ICE. These actions have been consolidated. The defendants' motion to dismiss was granted in 2020. The plaintiffs have appealed the dismissal.

In August 2020, an ICE LIBOR-related action was filed by a group of individual plaintiffs in the US District Court for the Northern District of California on behalf of individual borrowers and consumers of loans and credit cards with variable interest rates linked to USD ICE LIBOR. Plaintiffs have filed motions seeking, among other things, preliminary and permanent injunctions to enjoin the defendants from continuing to set LIBOR or enforce any financial instrument that relies in whole or in part on USD LIBOR.

Non-US benchmarks civil actions

Legal proceedings (which include the claims referred to below in 'Local authority civil actions concerning LIBOR') have been brought or threatened against Barclays Bank PLC (and, in certain cases, Barclays Bank UK PLC) in the UK in connection with alleged manipulation of LIBOR, EURIBOR and other benchmarks. Proceedings have also been brought in a number of other jurisdictions in Europe and Israel. Additional proceedings in other jurisdictions may be brought in the future.

Credit Default Swap civil action

In July 2021, the New Mexico Attorney General, on behalf of the New Mexico State Investment Council, filed an antitrust class action in the US District Court for the District of New Mexico against Barclays PLC, Barclays Bank PLC, BCI and other financial institutions. The plaintiff alleges that the defendants conspired to manipulate the benchmark price used to value Credit Default Swap (CDS) contracts at settlement (i.e. the CDS final auction price). The plaintiff alleges violations of the Antitrust Act and the CEA, and unjust enrichment under state law.

Foreign Exchange investigations and related civil actions

In 2015, the Group reached settlements totalling approximately $2.38bn with various US federal and state authorities and the FCA in relation to investigations into certain sales and trading practices in the Foreign Exchange market. The Group continues to provide relevant information to certain authorities.

The European Commission is one of a number of authorities still conducting an investigation into certain trading practices in Foreign Exchange markets. The European Commission announced two settlements in May 2019 and the Group paid penalties totalling approximately EUR210m. In June 2019, the Swiss Competition Commission announced two settlements and the Group paid penalties totalling approximately CHF 27m. The financial impact of the ongoing matters is not expected to be material to the Group's operating results, cash flows or financial position.

Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group and other banks in relation to alleged manipulation of Foreign Exchange markets.

FX opt out civil action

In 2018, Barclays Bank PLC and BCI settled a consolidated action filed in the SDNY, alleging manipulation of Foreign Exchange markets (Consolidated FX Action), for a total amount of $384m. Also in 2018, a group of plaintiffs who opted out of the Consolidated FX Action filed a complaint in the SDNY against Barclays PLC, Barclays Bank PLC, BCI and other defendants. Some of the plaintiff's claims were dismissed in 2020.

Retail basis civil action

In 2015, a putative class action was filed against several international banks, including Barclays PLC and BCI, on behalf of a proposed class of individuals who exchanged currencies on a retail basis at bank branches (Retail Basis Claims). The SDNY has ruled that the Retail Basis Claims are not covered by the settlement agreement in the Consolidated FX Action. The Court subsequently dismissed all Retail Basis Claims against the Group and all other defendants. The plaintiffs have filed an amended complaint.

Non-US FX civil actions

Legal proceedings have been brought or are threatened against Barclays PLC, Barclays Bank PLC, BCI and Barclays Execution Services Limited (BX) in connection with alleged manipulation of Foreign Exchange in the UK, a number of other jurisdictions in Europe, Israel and Australia and additional proceedings may be brought in the future.

These include two purported class actions filed against Barclays PLC, Barclays Bank PLC, BX, BCI and other financial institutions in the UK Competition Appeal Tribunal in 2019 following the settlements with the European Commission described above. Also in 2019, a separate claim was filed in the UK in the High Court by various banks and asset management firms against Barclays Bank PLC and other financial institutions alleging breaches of European and UK competition laws related to FX trading.

Metals investigations and related civil actions

Barclays Bank PLC previously provided information to the US Department of Justice (DoJ), the US Commodity Futures Trading Commission and other authorities in connection with investigations into metals and metals-based financial instruments.

A number of US 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 Antitrust Act and other federal laws. This consolidated putative class action remains pending. A separate US civil complaint by a proposed class of plaintiffs against a number of banks, including Barclays Bank PLC, BCI and BX, alleging manipulation of the price of silver in violation of the CEA, the Antitrust Act and state antitrust and consumer protection laws, has been dismissed as against the Barclays entities. The plaintiffs have the option to seek the court's permission to appeal.

Civil actions have also been filed in Canadian courts against Barclays PLC, Barclays Bank PLC, Barclays Capital Canada Inc. and BCI on behalf of proposed classes of plaintiffs alleging manipulation of gold and silver prices.

US residential mortgage related civil actions

There are various pending civil actions relating to US Residential Mortgage-Backed Securities (RMBS), including four actions arising from unresolved repurchase requests submitted by Trustees for certain RMBS, alleging breaches of various loan-level representations and warranties (R&Ws) made by Barclays Bank PLC and/or a subsidiary acquired in 2007. The unresolved repurchase requests had an original principal balance of approximately $2.1bn. The Trustees have also alleged that the relevant R&Ws may have been breached with respect to a greater (but unspecified) amount of loans than previously stated in the unresolved repurchase requests.

These repurchase actions are ongoing. In one repurchase action, the New York Court of Appeals held that claims related to certain R&Ws are time-barred. Barclays Bank PLC has reached a settlement to resolve two of the repurchase actions, which is subject to final court approval. The financial impact of the settlement is not expected to be material to the Group's operating results, cash flows or financial position. The remaining two repurchase actions are pending.

In 2020, a civil litigation claim was filed in the New Mexico First Judicial District Court by the State of New Mexico against six banks, including BCI, on behalf of two New Mexico state pension funds and the New Mexico State Investment Council relating to legacy RMBS purchases. As to BCI, the complaint alleges that the funds purchased approximately $22m in RMBS underwritten by BCI. The plaintiffs have asserted claims under New Mexico state law, which provides for the ability to claim treble damages and civil penalties.

Government and agency securities civil actions and related matters

Certain governmental authorities have conducted investigations into activities relating to the trading of certain government and agency securities in various markets. The Group provided information in cooperation with such investigations.

Civil actions have also been filed on the basis of similar allegations, as described below.

Treasury auction securities civil actions

Consolidated putative class action complaints filed in US federal court against Barclays Bank PLC, BCI and other financial institutions under the Antitrust Act and state common law allege that the defendants (i) conspired to manipulate the US Treasury securities market and/or (ii) conspired to prevent the creation of certain platforms by boycotting or threatening to boycott such trading platforms. The court dismissed the consolidated action in March 2021. The plaintiffs have filed an amended complaint, which the defendants have moved to dismiss.

In addition, certain plaintiffs have filed a related, direct action against BCI and certain other financial institutions, alleging that defendants conspired to fix and manipulate the US Treasury securities market in violation of the Antitrust Act, the CEA and state common law.

Supranational, Sovereign and Agency bonds civil actions

Civil antitrust actions have been filed in the SDNY and Federal Court of Canada in Toronto against Barclays Bank PLC, BCI, BX, Barclays Capital Securities Limited and, with respect to the civil action filed in Canada only, Barclays Capital Canada, Inc. and other financial institutions alleging that the defendants conspired to fix prices and restrain competition in the market for US dollar-denominated Supranational, Sovereign and Agency bonds.

In one of the actions filed in the SDNY, the court granted the defendants' motions to dismiss the plaintiffs' complaint. The dismissal was affirmed on appeal. The plaintiffs have voluntarily dismissed the other SDNY action. In the Federal Court of Canada action, the plaintiffs reached settlements with a small number of banks in 2020 (not including Barclays Capital Canada, Inc.), but the plaintiffs have not commenced the class certification process and the action remains at an early stage.

Variable Rate Demand Obligations civil actions

Civil actions have been filed against Barclays Bank PLC and BCI and other financial institutions alleging the defendants conspired or colluded to artificially inflate interest rates set for Variable Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with interest rates that reset on a periodic basis, most commonly weekly. Two actions in state court have been filed by private plaintiffs on behalf of the states of Illinois and California. Three putative class action complaints, two of which have been consolidated, have been filed in the SDNY (the third complaint was filed in June 2021). In the consolidated SDNY class action, certain of the plaintiff's claims were dismissed in November 2020. In the California action, the plaintiffs' claims were dismissed in June 2021. The plaintiffs may appeal.

Government bond civil actions

In a putative class action filed in the SDNY in 2019, plaintiffs alleged that BCI and certain other bond dealers conspired to fix the prices of US Government sponsored entity bonds in violation of US antitrust law. BCI agreed to a settlement of $87m, which received final court approval in 2020. Separately, various entities in Louisiana, including the Louisiana Attorney General and the City of Baton Rouge, have commenced litigation against Barclays Bank PLC and other financial institutions making similar allegations as the SDNY class action plaintiffs. The parties have reached a settlement to resolve these matters. The financial impact of the settlement is not expected to be material to the Group's operating results, cash flows or financial position.

In 2018, a separate putative class action against various financial institutions including Barclays PLC, Barclays Bank PLC, BCI, Barclays Bank Mexico, S.A., and certain other subsidiaries of the Group was consolidated in the SDNY. The plaintiffs asserted antitrust and state law claims arising out of an alleged conspiracy to fix the prices of Mexican Government bonds. Barclays PLC has settled the claim for $5.7m, which is subject to final court approval.

Odd-lot corporate bonds antitrust class action

In 2020, BCI, together with other financial institutions, were named as defendants in a putative class action. The complaint alleges a conspiracy to boycott developing electronic trading platforms for odd-lots and price fixing. Plaintiffs demand unspecified money damages. The defendants have filed a motion to dismiss.

Interest rate swap and credit default swap US civil actions

Barclays PLC, Barclays Bank PLC and BCI, together with other financial institutions that act as market makers for interest rate swaps (IRS) are named as defendants in several antitrust class actions which were consolidated in the SDNY in 2016. The complaints allege the defendants conspired to prevent the development of exchanges for IRS and demand unspecified money damages.

In 2018, trueEX LLC filed an antitrust class action in the SDNY against a number of financial institutions including Barclays PLC, Barclays Bank PLC and BCI based on similar allegations with respect to trueEX LLC's development of an IRS platform. In 2017, Tera Group Inc. filed a separate civil antitrust action in the SDNY claiming that certain conduct alleged in the IRS cases also caused the plaintiff to suffer harm with respect to the Credit Default Swaps market. In 2018 and 2019, respectively, the court dismissed certain claims in both cases for unjust enrichment and tortious interference but denied motions to dismiss the federal and state antitrust claims, which remain pending.

BDC Finance L.L.C.

In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the Supreme Court of the State of New York (NY Supreme Court), demanding damages of $298m, alleging that Barclays Bank PLC had breached a contract in connection with a portfolio of total return swaps governed by an ISDA Master Agreement (the Agreement). Following a trial, the court ruled in 2018 that Barclays Bank PLC was not a defaulting party, which was affirmed on appeal. In April 2021, the trial court entered judgement in favour of Barclays Bank PLC for $3.3m and as yet to be determined legal fees and costs, BDC has appealed.

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. This case is currently stayed.

Civil actions in respect of the US Anti-Terrorism Act

There are a number of civil actions, on behalf of more than 4,000 plaintiffs, filed in US federal courts in the US District Court in the Eastern District of New York (EDNY) and SDNY against Barclays Bank PLC and a number of other banks. The complaints generally allege that Barclays Bank PLC and those banks engaged in a conspiracy to facilitate US dollar-denominated transactions for the Iranian Government and various Iranian banks, which in turn funded acts of terrorism that injured or killed plaintiffs or plaintiffs' family members. The plaintiffs seek to recover damages for pain, suffering and mental anguish under the provisions of the US Anti-Terrorism Act, which allow for the trebling of any proven damages.

The court granted the defendants' motions to dismiss three out of the six actions in the EDNY. Plaintiffs have appealed in one action. The remaining actions are stayed pending decisions on the appeal. Out of the two actions in the SDNY, the court also granted the defendants' motion to dismiss one action. The remaining action is stayed pending any appeal in the former case.

Shareholder derivative action

In November 2020, a purported Barclays shareholder filed a putative derivative action in New York state court against BCI and a number of current and former members of the Board of Directors of Barclays PLC and senior executives or employees of the Group. The shareholder filed the claim on behalf of nominal defendant Barclays PLC, alleging that the individual defendants harmed the company through breaches of their duties, including under the Companies Act 2006. The plaintiff seeks damages on behalf of Barclays PLC for the losses that Barclays PLC allegedly suffered as a result of these alleged breaches. An amended complaint was filed in April 2021, which BCI and certain other defendants have moved to dismiss.

Derivative transactions civil action

In July 2021, Vestia (a Dutch housing association) issued a claim against Barclays Bank PLC in the UK in the High Court in relation to a series of derivative transactions entered into with Barclays Bank PLC between 2008 and 2012. The claim has not been served on Barclays.

Skilled person review and associated matters

In August 2020, the FCA granted an application by Clydesdale Financial Services Limited (CFS), which trades as Barclays Partner Finance and houses Barclays' point-of-sale finance business, for a validation order with respect to certain loans to customers brokered by Azure Services Limited (ASL), a timeshare operator, which did not, at the point of sale, hold the necessary broker licence. As a condition to the validation order, the FCA required CFS to undertake a skilled person review of the assessment of affordability processes for the loans brokered by ASL (ASL Loans) as well as CFS' policies and procedures for assessing affordability and oversight of brokers more generally, and dictated a remediation methodology in the event that ASL Loans did not pass the affordability test. CFS has voluntarily agreed to remediate the ASL Loans, which is expected to amount to GBP37m, in accordance with the FCA's methodology. The remaining scope of the skilled person review is ongoing and the skilled person is expected to report in the fourth quarter of 2021.

It is not currently possible to predict the outcome of the skilled person review and/or whether remediation activity will be undertaken or required in relation to other parts of CFS' loan portfolio and the scope of, and methodology for, any such remediation.

   2.   Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC 

Investigation into UK cards' affordability

The FCA is investigating certain aspects of the affordability assessment processes used by Barclays Bank UK PLC and Barclays Bank PLC for credit card applications made to Barclays' UK credit card business. Barclays is providing information in cooperation with the investigation.

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. HMRC's decision has been appealed to the First Tier Tribunal (Tax Chamber).

Local authority civil actions concerning LIBOR

Following settlement by Barclays Bank PLC of various governmental investigations concerning certain benchmark interest rate submissions referred to above in 'Investigations into LIBOR and other benchmarks and related civil actions', in the UK, certain local authorities have brought claims against Barclays Bank PLC and Barclays Bank UK PLC asserting that they entered into loans in reliance on misrepresentations made by Barclays Bank PLC in respect of its conduct in relation to LIBOR. Barclays Bank PLC and Barclays Bank UK PLC were successful in their applications to strike out the claims. One local authority has obtained permission to pursue an appeal against this decision, while the claims brought by the other local authorities have been settled on terms such that the parties have agreed not to pursue these claims and to bear their own costs.

   3.   Barclays PLC 

Alternative trading systems

Barclays PLC has been named as a defendant in a claim brought in the UK in the High Court by various shareholders regarding Barclays PLC's share price based on the allegations contained within a complaint by the New York State Attorney General (NYAG) in 2014. The NYAG complaint was filed against Barclays PLC and BCI in the NY Supreme Court alleging, among other things, that Barclays PLC and BCI engaged in fraud and deceptive practices in connection with LX, BCI's SEC-registered alternative trading system. Such claim was settled in 2016, as previously disclosed. This new shareholder claim is seeking unquantified damages.

General

The Group is engaged in various other legal, competition and regulatory matters in the UK, the US and a number of other overseas jurisdictions. It is subject to legal proceedings brought by and against the Group which arise in the ordinary course of business from time to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets, competition, data management and protection, intellectual property, money laundering, financial crime, employment, environmental and other statutory and common law issues.

The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Group is or has been engaged. The Group is cooperating with the relevant authorities and keeping all relevant agencies briefed as appropriate in relation to these matters and others described in this note on an ongoing basis.

At the present time, Barclays PLC does not expect the ultimate resolution of any of these other matters to have a material adverse effect on the Group's financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters (including formerly active matters or those matters arising after the date of this note) will not be material to Barclays PLC's results, operations or cash flow for a particular period, depending on, among other things, the amount of the loss resulting from the matter(s) and the amount of profit otherwise reported for the reporting period.

   22.     Related party transactions 

Related party transactions in the half year ended 30 June 2021 were similar in nature to those disclosed in the Barclays PLC Annual Report 2020. No related party transactions that have taken place in the half year ended 30 June 2021 have materially affected the financial position or the performance of the Group during this period.

   23.     Interest rate benchmark reform 

Following the financial crisis, the reform and replacement of benchmark interest rates such as LIBOR has become a priority for global regulators. The FCA and other global regulators have instructed market participants to prepare for the cessation of LIBOR after the end of 2021, and to adopt RFRs. While it is expected that most reforms affecting the Group will be completed by the end of 2021, consultations and regulatory changes are in progress and as certain US Dollar tenors will continue to be published up to mid-2023, significant remediation efforts will continue beyond the end of 2021.

How the Group is managing the transition to alternative benchmark rates

Barclays has established a Group-wide LIBOR Transition Programme, further detail on the transition programme is available in the Barclays PLC Annual Report 2020 (page 367).

In March 2021, the FCA announced the dates that panel bank submissions for all LIBOR settings will cease, after which representative LIBOR rates will no longer be available, these are: immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the 1-week and 2-month US dollar settings; and immediately after 30 June 2023, in the case of the remaining US dollar settings. Throughout 2021, the FCA will consult with market participants to require continued publication on a 'synthetic' basis for some sterling LIBOR settings and, for 1 additional year, some Japanese yen LIBOR settings.

Approaches to transition exposure expiring post the expected end dates for LIBOR vary by product and nature of counterparty. The transition we are undertaking is at the request of the regulators, in line with their expectations and according to the regulatory endorsed timetable. The rates to which clients and customers are being transitioned are endorsed by the regulators. We are making disclosures as part of the transition to clarify the rate to be applied and the potential risks inherent in the transition. Barclays is actively engaging with counterparties to transition or include appropriate fallback provisions and transition mechanisms in its floating rate assets and liabilities with maturities after 2021, when most IBORs are expected to cease to be published, or will be published on a non-representative basis for a limited time.

Barclays is working with central clearing counterparties where the transition of cleared derivative contracts will follow a market-wide, standardised approach to reform. Barclays is working to the UK Risk Free Rate Working Group (RFRWG) target of completion of active conversion of, and/or addition of robust fallbacks to legacy GBP LIBOR contracts, where viable by the end of Q321. Additionally, plans are in place to address non-GBP and other official sector industry milestones and targets.

Progress made during H121

Building on the progress made in 2020, the Group has delivered further alternative RFR product capabilities and alternatives to LIBOR across loans, bonds and derivatives. Client outreach is progressing to plan and we have continued to engage actively with customers and counterparties to transition or include the appropriate fallback provisions. The Group has in place detailed plans, processes and procedures to support the transition of the remainder during 2021. Barclays has adhered to the ISDA IBOR Fallbacks Protocol for its major derivative dealing entities and we continue to track progress and engage with clients on their own adherence. Following the progress made during 2020, the Group continues to deliver technology and business process changes in preparation for LIBOR cessation and transitions to RFRs that will be necessary during 2021 and beyond in line with official sector expectations and milestones.

The Group met the Q121 UK RFRWG milestone to cease initiation of GBP LIBOR linked loans, securitisations or linear derivatives and the Q221 milestones to cease initiation of new non-linear derivatives, exchange traded futures and Bank Of Japan milestone to cease issuance of JPY LIBOR linked loans and bonds. The Group has put in place controls so that any exceptions or exemptions are approved, and is taking a similar approach to forthcoming cessation milestones.

   24.     Barclays PLC parent company balance sheet 
 
                                                        As at      As at 
                                                     30.06.21   31.12.20 
Assets                                                   GBPm       GBPm 
Investment in subsidiaries                             58,828     58,886 
Loans and advances to subsidiaries                     23,295     24,710 
Financial assets at fair value through the income 
 statement                                             21,046     17,521 
Derivative financial instruments                            2          7 
Other assets                                               19         65 
Total assets                                          103,190    101,189 
 
Liabilities 
Deposits at amortised cost                                476        482 
Cash collateral and settlement balances                     -          - 
Debt securities in issue                               26,663     28,428 
Subordinated liabilities                                9,170      7,724 
Financial liabilities designated at fair value         12,130      9,507 
Other liabilities                                         135        176 
Total liabilities                                      48,574     46,317 
 
Equity 
Called up share capital                                 4,249      4,340 
Share premium account                                     319        297 
Other equity instruments                               11,169     11,169 
Other reserves                                            488        394 
Retained earnings                                      38,391     38,672 
Total equity                                           54,616     54,872 
 
Total liabilities and equity                          103,190    101,189 
 

Investment in subsidiaries

The investment in subsidiaries of GBP58,828m (December 2020: GBP58,886m) predominantly relates to investments in Barclays Bank PLC and Barclays Bank UK PLC, as well as holdings of their AT1 securities of GBP10,995m (December 2020: GBP10,995m). Barclays PLC considers the carrying value of its investment in subsidiaries to be fully recoverable.

Financial assets and liabilities designated at fair value

Financial liabilities designated at fair value of GBP12,130m (December 2020: GBP9,507m) comprises material issuances during the period of EUR750m Floating Notes, $1,000m Fixed Rate Resetting Senior Callable Notes, 600m AUD Fixed-to-Floating and Floating Rate Debt Instruments, and 77,000m JPY Fixed Rate Resetting Senior Callable Notes. The proceeds raised through these transactions were used to invest in subsidiaries of Barclays PLC which are included within the financial assets designated at fair value through the income statement balance of GBP21,046m (December 2020: GBP17,521m).

Loans and advances to subsidiaries

During the period, loans and advances to subsidiaries decreased by GBP1,415m to GBP23,295m (December 2020: GBP24,710m). The decrease was driven by the maturity of GBP2,200m senior loans to Barclays Bank PLC and a foreign exchange impact of GBP500m due to appreciation of GBP against major currencies (although the negative FX impact is offset across the balance sheet liabilities). There was also a GBP700m decrease in relation to the share buyback which took place in Q1 2020. This decrease was partially offset by GBP1,600m of new issuances of dated subordinated notes by Barclays Bank PLC to Barclays PLC and GBP776m dividend receipts from Barclays Bank PLC and Barclays Execution Services Limited.

Subordinated liabilities and debt securities in issue

During H121, Barclays PLC issued EUR1,000m and $1,000m of Fixed Rate Resetting Subordinated Callable Notes, which is included within the subordinated liabilities balance of GBP9,170m (December 2020: GBP7,724m). Debt securities in issue of GBP26,663m (December 2020: GBP28,428m) have reduced in the year due to the GBP2,200m maturity of senior issuances, offset in part by new issuances of EUR1,250m.

Other equity instruments

Other equity instruments comprises AT1 securities issued by Barclays PLC. There have been no new issuances or redemptions during the period.

Other reserves

As at 30 June 2021, there was a balance of GBP488m (December 2020: GBP394m) in other reserves. The increase is due to the repurchase of shares as part of the share buyback.

Management of internal investments, loans and advances

Barclays PLC retains the discretion to manage the nature of its internal investments in subsidiaries according to their regulatory and business needs. Barclays PLC may invest capital and funding into Barclays Bank PLC, Barclays Bank UK PLC and other Group subsidiaries such as Barclays Execution Services Limited and the US Intermediate Holding Company (IHC).

Appendix: Non-IFRS Performance Measures

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

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

Non-IFRS performance measures glossary

 
Measure                         Definition 
Loan: deposit ratio             Loans and advances at amortised cost divided by 
                                 deposits at amortised cost. The components of the 
                                 calculation have been included on page 50. 
Period end allocated            Allocated tangible equity is calculated as 13.5% 
 tangible equity                 (2020: 13.0%) of RWAs for each business, adjusted 
                                 for capital deductions, excluding goodwill and 
                                 intangible assets, reflecting the assumptions the 
                                 Group uses for capital planning purposes. Head 
                                 Office allocated tangible equity represents the 
                                 difference between the Group's tangible shareholders' 
                                 equity and the amounts allocated to businesses. 
Average tangible shareholders'  Calculated as the average of the previous month's 
 equity                          period end tangible equity and the current month's 
                                 period end tangible equity. The average tangible 
                                 shareholders' equity for the period is the average 
                                 of the monthly averages within that period. 
Average allocated               Calculated as the average of the previous month's 
 tangible equity                 period end allocated tangible equity and the current 
                                 month's period end allocated tangible equity. The 
                                 average allocated tangible equity for the period 
                                 is the average of the monthly averages within that 
                                 period. 
Return on average               Annualised profit after tax attributable to ordinary 
 tangible shareholders'          equity holders of the parent, as a proportion of 
 equity                          average shareholders' equity excluding non-controlling 
                                 interests and other equity instruments adjusted 
                                 for the deduction of intangible assets and goodwill. 
                                 The components of the calculation have been included 
                                 on page 98 to 100. 
Return on average               Annualised profit after tax attributable to ordinary 
 allocated tangible              equity holders of the parent, as a proportion of 
 equity                          average allocated tangible equity. The components 
                                 of the calculation have been included on page 98 
                                 to 101. 
Cost: income ratio              Total operating expenses divided by total income. 
Loan loss rate                  Quoted in basis points and represents total annualised 
                                 impairment charges divided by gross loans and advances 
                                 held at amortised cost at the balance sheet date. 
                                 The components of the calculation have been included 
                                 on page 27. Quoted as zero across the current reporting 
                                 period due to credit impairment net release. 
Net interest margin             Annualised net interest income divided by the sum 
                                 of average customer assets. The components of the 
                                 calculation have been included on pages 23 to 24. 
Tangible net asset              Calculated by dividing shareholders' equity, excluding 
 value per share                 non-controlling interests and other equity instruments, 
                                 less goodwill and intangible assets, by the number 
                                 of issued ordinary shares. The components of the 
                                 calculation have been included on page 102. 
 

Returns

Return on average tangible equity is calculated as profit after tax attributable to ordinary equity holders of the parent as a proportion of average tangible equity, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 13.5% (2020: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office average allocated tangible equity represents the difference between the Group's average tangible shareholders' equity and the amounts allocated to businesses.

 
                                   Profit/(loss) 
                                    attributable 
                                     to ordinary 
                                          equity                  Return 
                                         holders    Average   on average 
                                          of the   tangible     tangible 
                                          parent     equity       equity 
Half year ended 30.06.21                    GBPm      GBPbn            % 
                                   =============  ========= 
Barclays UK                                1,019        9.9         20.6 
   Corporate and Investment Bank           2,312       28.3         16.3 
   Consumer, Cards and Payments              386        4.0         19.1 
                                                  ========= 
Barclays International                     2,698       32.3         16.7 
Head Office                                   95        4.3          n/m 
                                                  ========= 
Barclays Group                             3,812       46.5         16.4 
 
Half year ended 30.06.20 
Barclays UK                                   52       10.2          1.0 
   Corporate and Investment Bank           1,514       27.7         11.0 
   Consumer, Cards and Payments            (517)        4.7       (21.9) 
                                   =============  =========  =========== 
Barclays International                       997       32.4          6.2 
Head Office                                (354)        6.0          n/m 
                                                             =========== 
Barclays Group                               695       48.6          2.9 
 
 
 
                                                            Half year ended 30.06.21 
                                                 Corporate      Consumer, 
                                 Barclays   and Investment          Cards        Barclays               Barclays 
                                       UK             Bank   and Payments   International  Head Office     Group 
Return on average tangible 
 shareholders' equity                GBPm             GBPm           GBPm            GBPm         GBPm      GBPm 
Attributable profit                 1,019            2,312            386           2,698           95     3,812 
 
                                    GBPbn            GBPbn          GBPbn           GBPbn        GBPbn     GBPbn 
Average shareholders' 
 equity                              13.5             28.3            4.6            32.9          8.0      54.4 
Average goodwill and 
 intangibles                        (3.6)                -          (0.6)           (0.6)        (3.7)     (7.9) 
                                 ========  =============== 
Average tangible shareholders' 
 equity                               9.9             28.3            4.0            32.3          4.3      46.5 
 
Return on average tangible 
 shareholders' equity               20.6%            16.3%          19.1%           16.7%          n/m     16.4% 
 
 
                                                            Half year ended 30.06.20 
                                                 Corporate      Consumer, 
                                 Barclays   and Investment          Cards        Barclays               Barclays 
                                       UK             Bank   and Payments   International  Head Office     Group 
Return on average tangible 
 shareholders' equity                GBPm             GBPm           GBPm            GBPm         GBPm      GBPm 
Attributable profit/(loss)             52            1,514          (517)             997        (354)       695 
 
                                    GBPbn            GBPbn          GBPbn           GBPbn        GBPbn     GBPbn 
                                 ========  =============== 
Average shareholders' 
 equity                              13.8             27.7            5.4            33.1          9.9      56.8 
Average goodwill and 
 intangibles                        (3.6)                -          (0.7)           (0.7)        (3.9)     (8.2) 
                                 ========  =============== 
Average tangible shareholders' 
 equity                              10.2             27.7            4.7            32.4          6.0      48.6 
 
Return on average tangible 
 shareholders' equity                1.0%            11.0%        (21.9)%            6.2%          n/m      2.9% 
 
 
Barclays Group 
                                    Q221   Q121   Q420   Q320   Q220   Q120   Q419    Q319 
Return on average tangible 
 shareholders' equity               GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm    GBPm 
Attributable profit/(loss)         2,108  1,704    220    611     90    605    681   (292) 
 
                                   GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn   GBPbn 
Average shareholders' 
 equity                             54.4   54.4   55.7   56.4   58.4   55.2   54.5    56.4 
Average goodwill and intangibles   (7.9)  (7.9)  (8.1)  (8.1)  (8.2)  (8.2)  (8.1)   (8.0) 
                                          ===== 
Average tangible shareholders' 
 equity                             46.5   46.5   47.6   48.3   50.2   47.0   46.4    48.4 
 
Return on average tangible 
 shareholders' equity              18.1%  14.7%   1.8%   5.1%   0.7%   5.1%   5.9%  (2.4)% 
 
 
Barclays UK 
                                    Q221   Q121   Q420   Q320    Q220   Q120   Q419     Q319 
Return on average allocated 
 tangible equity                    GBPm   GBPm   GBPm   GBPm    GBPm   GBPm   GBPm     GBPm 
Attributable profit/(loss)           721    298    160    113   (123)    175    438    (907) 
 
                                   GBPbn  GBPbn  GBPbn  GBPbn   GBPbn  GBPbn  GBPbn    GBPbn 
Average allocated equity            13.5   13.5   13.4   13.7    13.9   13.7   13.8     13.9 
Average goodwill and intangibles   (3.6)  (3.6)  (3.6)  (3.6)   (3.6)  (3.6)  (3.5)    (3.5) 
Average allocated tangible 
 equity                              9.9    9.9    9.8   10.1    10.3   10.1   10.3     10.4 
 
Return on average allocated 
 tangible equity                   29.1%  12.0%   6.5%   4.5%  (4.8)%   6.9%  17.0%  (34.9)% 
 
 
Barclays International 
                                    Q221   Q121   Q420   Q320   Q220   Q120   Q419   Q319 
Return on average allocated 
 tangible equity                    GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
Attributable profit                1,267  1,431    441    782    468    529    397    799 
 
                                   GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
Average allocated equity            33.0   32.8   31.1   31.2   34.2   31.9   31.9   33.3 
Average goodwill and intangibles   (0.6)  (0.5)  (0.6)  (0.6)  (0.7)  (0.7)  (1.0)  (1.1) 
Average allocated tangible 
 equity                             32.4   32.3   30.5   30.6   33.5   31.2   30.9   32.2 
 
Return on average allocated 
 tangible equity                   15.6%  17.7%   5.8%  10.2%   5.6%   6.8%   5.1%   9.9% 
 
 
Corporate and Investment Bank 
                                    Q221   Q121   Q420   Q320   Q220   Q120   Q419   Q319 
Return on average allocated 
 tangible equity                    GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
Attributable profit                1,049  1,263    413    627    694    820    193    609 
 
                                   GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
Average allocated equity            28.4   28.2   26.3   26.4   29.1   26.2   25.9   26.9 
Average goodwill and intangibles       -      -      -      -  (0.1)      -  (0.1)      - 
Average allocated tangible 
 equity                             28.4   28.2   26.3   26.4   29.0   26.2   25.8   26.9 
 
Return on average allocated 
 tangible equity                   14.8%  17.9%   6.3%   9.5%   9.6%  12.5%   3.0%   9.1% 
 
 
Consumer, Cards and Payments 
                                    Q221   Q121   Q420   Q320     Q220     Q120   Q419   Q319 
Return on average allocated 
 tangible equity                    GBPm   GBPm   GBPm   GBPm     GBPm     GBPm   GBPm   GBPm 
Attributable profit/(loss)           218    168     28    155    (226)    (291)    204    190 
 
                                   GBPbn  GBPbn  GBPbn  GBPbn    GBPbn    GBPbn  GBPbn  GBPbn 
Average allocated equity             4.6    4.6    4.8    4.8      5.1      5.7    6.0    6.4 
Average goodwill and intangibles   (0.6)  (0.5)  (0.6)  (0.6)    (0.6)    (0.7)  (0.9)  (1.1) 
Average allocated tangible 
 equity                              4.0    4.1    4.2    4.2      4.5      5.0    5.1    5.3 
 
Return on average allocated 
 tangible equity                   21.8%  16.5%   2.7%  14.7%  (20.2)%  (23.5)%  15.9%  14.2% 
 
 
Tangible net asset value per share                 As at 30.06.21  As at 31.12.20  As at 30.06.20 
                                                             GBPm            GBPm            GBPm 
Total equity excluding non-controlling interests           67,052          65,797          68,304 
Other equity instruments                                 (11,167)        (11,172)        (10,871) 
Goodwill and intangibles                                  (8,196)         (7,948)         (8,163) 
Tangible shareholders' equity attributable to 
 ordinary shareholders of the parent                       47,689          46,677          49,270 
 
                                                                m               m               m 
Shares in issue                                            16,998          17,359          17,345 
 
                                                                p               p               p 
Tangible net asset value per share                            281             269             284 
 

Shareholder Information

 
Results timetable(1)                                          Date 
                                        =========  =========  ========  ========  ======== 
Ex-dividend date                                              12 August 2021 
Dividend record date                                          13 August 2021 
Cut off time of 5:00pm (UK                                    27 August 2021 
 time) for the receipt of Dividend 
 Re-investment Programme (DRIP) 
 Application Form 
Dividend payment date                                         17 September 2021 
Q321 Results Announcement                                     21 October 2021 
 
For qualifying US and Canadian resident ADR holders, the half year 
 dividend of 2.0p per ordinary share becomes 8.0p per ADS (representing 
 four shares). The ex-dividend, dividend record and dividend payment 
 dates for ADR holders are as shown above. 
 
                                                                           % Change(3) 
Exchange rates(2)                        30.06.21   31.12.20  30.06.20  31.12.20  30.06.20 
                                        =========  =========  ========  ========  ======== 
Period end - USD/GBP                         1.38       1.37      1.24        1%       11% 
6 month average - USD/GBP                    1.39       1.31      1.26        6%       10% 
3 month average - USD/GBP                    1.40       1.32      1.24        6%       13% 
Period end - EUR/GBP                         1.17       1.12      1.10        4%        6% 
6 month average - EUR/GBP                    1.15       1.11      1.14        4%        1% 
3 month average - EUR/GBP                    1.16       1.11      1.13        5%        3% 
 
Share price data 
                                        =========  =========  ========  ========  ======== 
Barclays PLC (p)                           171.12     146.68    114.42 
Barclays PLC number of shares 
 (m)                                       16,998     17,359    17,345 
 
For further information please 
 contact 
 
Investor relations                      Media relations 
Chris Manners +44 (0) 20 7773           Tom Hoskin +44 (0) 20 7116 4755 
 2136 
 
More information on Barclays can be found on our website: home.barclays 
 . 
 
Registered office 
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 
 (0) 20 7116 1000. Company number: 48839. 
 
Registrar 
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, 
 BN99 6DA, United Kingdom. 
Tel: 0371 384 20554 from the UK or +44 121 415 7004 from overseas. 
 
American Depositary Receipts 
 (ADRs) 
Shareowner Services 
StockTransfer@equiniti.com 
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128 
 (outside the US and Canada) 
Shareowner Services, PO Box 64504, St Paul, MN 55164-0504, USA. 
 
Delivery of ADR certificates 
 and overnight mail 
Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, 
 MN 55120, USA. 
 
Qualifying US and Canadian resident ADR holders should contact Shareowner 
 Services for further details regarding the DRIP 
 
 
 1   Note that these dates are provisional and subject to change. 
 2   The average rates shown above are derived from daily spot rates 
      during the year. 
 3   The change is the impact to GBP reported information. 
 4   Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding 
      UK public holidays in England and Wales. 
 

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