TIDMBARC
RNS Number : 0262R
Barclays PLC
24 October 2023
Barclays PLC
Q3 2023 Results Announcement
30 September 2023
Notes
This document contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended).
The terms Barclays and Group refer to Barclays PLC together with
its subsidiaries. Unless otherwise stated, the income statement
analysis compares the nine months ended 30 September 2023 to the
corresponding nine months of 2022 and balance sheet analysis as at
30 September 2023 with comparatives relating to 31 December 2022
and 30 September 2022. 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, which can be accessed at home.barclays/investor-relations
.
The information in this announcement, which was approved by the
Board of Directors on 23 October 2023, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2022, which
contained an unmodified audit report under Section 495 of the
Companies Act 2006 (w hich did not make any statements under
Section 498 of the Companies Act 2006) have been delivered to the
Registrar of Companies in accordance with Section 441 of the
Companies Act 2006.
These results will be furnished on Form 6-K with the US
Securities and Exchange Commission (SEC) as soon as practicable
following their publication. Once furnished with the SEC, a copy of
the Form 6-K will be available from the SEC's website at
www.sec.gov .
Barclays is a frequent issuer in the debt capital markets and
regularly meets with investors via formal road-shows and other ad
hoc meetings. Consistent with its usual practice, Barclays expects
that from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group .
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by Barclays' management. However, any non-IFRS
performance measures in this document are not a substitute for IFRS
measures and readers should consider the IFRS measures as well.
Refer to the appendix on pages 40 to 46 for further information and
calculations of non-IFRS performance measures included throughout
this document, and the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. Forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing
but also may be made verbally by directors, officers and employees
of the Group (including during management presentations) in
connection with this document. Examples of forward-looking
statements include, among others, statements or guidance regarding
or relating to the Group's future financial position, income
levels, costs, assets and liabilities, impairment charges,
provisions, capital, leverage and other regulatory ratios, capital
distributions (including dividend policy and share buybacks),
return on tangible equity, projected levels of growth in banking
and financial markets, industry trends, any commitments and targets
(including environmental, social and governance (ESG) commitments
and targets), business strategy, plans and objectives for future
operations and other statements that are not historical or current
facts. By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements speak only as at the date on which they
are made. Forward-looking statements may be affected by a number of
factors, including, without limitation: changes in legislation,
regulation and the interpretation thereof, changes in IFRS and
other accounting standards, including practices with regard to the
interpretation and application thereof and emerging and developing
ESG reporting standards; the outcome of current and future legal
proceedings and regulatory investigations; the policies and actions
of governmental and regulatory authorities; the Group's ability
along with governments and other stakeholders to measure, manage
and mitigate the impacts of climate change effectively;
environmental, social and geopolitical risks and incidents and
similar events beyond the Group's control; the impact of
competition; capital, leverage and other regulatory rules
applicable to past, current and future periods; UK, US, Eurozone
and global macroeconomic and business conditions, including
inflation; volatility in credit and capital markets; market related
risks such as changes in interest rates and foreign exchange rates;
higher or lower asset valuations; changes in credit ratings of any
entity within the Group or any securities issued by it; changes in
counterparty risk; changes in consumer behaviour; the direct and
indirect consequences of the Russia-Ukraine war on European and
global macroeconomic conditions, political stability and financial
markets; direct and indirect impacts of the coronavirus (COVID-19)
pandemic; instability as a result of the UK's exit from the
European Union (EU), the effects of the EU-UK Trade and Cooperation
Agreement and any disruption that may subsequently result in the UK
and globally; the risk of cyber-attacks, information or security
breaches or technology failures on the Group's reputation, business
or operations; the Group's ability to access funding; and the
success of acquisitions, disposals and other strategic
transactions. A number of these factors are beyond the Group's
control. As a result, the Group's actual financial position,
results, financial and non-financial metrics or performance
measures or its ability to meet commitments and targets may differ
materially from the statements or guidance set forth in the Group's
forward-looking statements. Additional risks and factors which may
impact the Group's future financial condition and performance are
identified in Barclays PLC's filings with the US Securities and
Exchange Commission (SEC) (including, without limitation, Barclays
PLC's Annual Report on Form 20-F for the financial year ended 31
December 2022 and Interim Results Announcement for the six months
ended 30 June 2023 filed on Form 6-K), which are available on the
SEC's website at www.sec.gov .
Subject to Barclays PLC's obligations under the applicable laws
and regulations of any relevant jurisdiction (including, without
limitation, the UK and the US) in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Performance Highlights
Barclays delivered return on tangible equity (RoTE) of 11.0% in
Q323 and 12.5% in Q323 YTD
C. S. Venkatakrishnan, Group Chief Executive, commented
"We delivered an 11.0% RoTE in Q3, against a mixed market backdrop,
as we continued to manage credit well, remained disciplined on
costs and maintained a strong capital position, with a Common Equity
Tier 1 (CET1) ratio of 14.0%. We see further opportunities to enhance
returns for shareholders through cost efficiencies and disciplined
capital allocation across the Group. We will provide an Investor
Update at FY23 results which will include setting out our capital
allocation priorities, as well as revised financial targets"
-- Q323 Group RoTE of 11.0% and Q323 YTD of 12.5%. Barclays UK Q323
RoTE of 21.0% and Q323 YTD of 20.6%
-- Prudent risk management with Q323 YTD loan loss rate (LLR) of 43bps
-- Strong balance sheet with CET1 ratio of 14.0%
-- c.7.5p total distributions per share announced at H123: dividend
of 2.7p now paid, and completed the share buyback of GBP750m
Key financial metrics:
Income Profit Attributable Cost LLR RoTE EPS TNAV CET1
before profit income per share ratio
tax ratio
Q323 GBP6.3bn GBP1.9bn GBP1.3bn 63% 42bps 11.0% 8.3p 316p 14.0%
Q323
YTD GBP19.8bn GBP6.4bn GBP4.4bn 61% 43bps 12.5% 28.2p
Q323 Performance highlights:
Group RoTE of 11.0% with profit before tax of GBP1.9bn (Q322:
-- GBP2.0bn). Excluding the impacts from the Over-issuance of Securities(1,2)
in the prior year:
Group income down 2% year-on-year to GBP6.3bn :
-
- Barclays UK income decreased 2% to GBP1.9bn, primarily driven
by the impact from the transfer of Wealth Management & Investments
(WM&I) to Consumer, Cards and Payments (CC&P). Excluding the
transfer, Barclays UK income was up 1%(3) driven by net interest
income growth from higher rates, including continued structural
hedge income, partially offset by product dynamics in deposits
and mortgages
- Corporate and Investment Bank (CIB) income decreased 6% to
GBP3.1bn , reflecting lower client activity in both Global
Markets (against a record FICC performance in Q322(4) ) and
Investment Banking fees, more than offsetting higher Corporate
income from higher rates and the non-repeat of fair value
losses on leverage finance lending in the prior year
- CC&P income increased 9% to GBP1.4bn reflecting higher balances
in US cards and the benefit of the transfer of WM&I from Barclays
UK
- Group total operating expenses decreased 4% year-on-year to
GBP3.9bn as inflation, business growth and investments were more
than offset by efficiency savings and lower litigation and conduct
charges
Credit impairment charges were GBP0.4bn, with an LLR of 42bps
--
-- CET1 ratio of 14.0%, with risk weighted assets (RWAs) of GBP341.9bn
and tangible net asset value (TNAV) per share of 316p
Denotes the Over-issuance of Securities under Barclays Bank PLC's
1 US shelf registration statements on Form F-3 filed with the SEC
in 2018 and 2019. See page 5 for a reconciliation of financial
results excluding the impact of the Over-issuance of Securities
in the prior year.
Q322 impacts from the Over-Issuance of Securities: GBP0.5bn income
2 reduction and GBP0.5bn reduction in litigation and conduct charges.
The income impact of the WM&I transfer was c.GBP60m in Q323.
3
Q322 was a record third quarter performance for FICC within Global
4 Markets. Period covering Q114-Q323. Pre 2014 data was not restated
following re-segmentation in Q116.
Q323 YTD Performance highlights:
Group RoTE was 12.5% (Q322 YTD: 10.9%) with profit before tax
-- of GBP6.4bn (Q322 YTD: GBP5.7bn).
Excluding the impact of the Over-issuance of Securities in the
-- prior year(1) :
Group income of GBP19.8bn, up 5% year-on-year
-
Group total operating expenses were GBP12.0bn, up 2% year-on-year.
- Cost: income ratio of 61% as the Group delivered positive cost:
income jaws of 3%
-- Credit impairment charges were GBP1.3bn with an LLR of 43bps,
with delinquencies in US cards in line with pre-pandemic experience
-- On a statutory basis:
- Group income was GBP19.8bn, up 3% year-on-year
- Group total operating expenses were GBP12.0bn, a decrease of
6% year-on-year
Group Targets and Outlook:
-- Costs : targeting a cost: income ratio percentage in the low 60s
in 2023, investing for growth whilst progressing towards the Group's
medium-term target of below 60%. Separately, the Group is evaluating
actions to reduce structural costs to help drive future returns,
which may result in material additional charges in Q423
-- Returns : targeting a RoTE of greater than 10% in 2023, excluding
any such structural costs actions
-- Impairment: expect an LLR of 50-60bps through the cycle
-- Barclays UK Net Interest Margin (NIM): now expected to be in the
range of 3.05% - 3.10% in 2023. Guidance is sensitive to the level
and mix of deposit balances and further changes in expectations
for interest rates
-- Capital : expect to continue to operate within the CET1 ratio
target range of 13-14%
-- Capital returns : capital distribution policy incorporates a progressive
ordinary dividend, supplemented with share buybacks as appropriate
Q322 YTD impacts from the Over-Issuance of Securities: GBP0.3bn
1 income gain and GBP1.0bn litigation and conduct charges.
Barclays Group results Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
GBPm GBPm % Change GBPm GBPm % Change
Barclays UK 5,795 5,289 10 1,873 1,916 (2)
Corporate and Investment Bank 10,220 10,792 (5) 3,082 2,821 9
Consumer, Cards and Payments 3,944 3,213 23 1,360 1,244 9
Barclays International 14,164 14,005 1 4,442 4,065 9
Head Office (179) (139) (29) (57) (30) (90)
Total income 19,780 19,155 3 6,258 5,951 5
Operating costs (11,979) (11,209) (7) (3,949) (3,939)
Litigation and conduct (32) (1,518) 98 - 339
Total operating expenses (12,011) (12,727) 6 (3,949) (3,600) (10)
Other net income/(expenses) 7 (4) 9 (1)
Profit before impairment 7,776 6,424 21 2,318 2,350 (1)
Credit impairment charges (1,329) (722) (84) (433) (381) (14)
Profit before tax 6,447 5,702 13 1,885 1,969 (4)
Tax charge (1,257) (1,072) (17) (343) (249) (38)
Profit after tax 5,190 4,630 12 1,542 1,720 (10)
Non-controlling interests (39) (23) (70) (9) (2)
Other equity instrument holders (766) (620) (24) (259) (206) (26)
Attributable profit 4,385 3,987 10 1,274 1,512 (16)
Performance measures
Return on average tangible
shareholders' equity 12.5% 10.9% 11.0% 12.5%
Average tangible shareholders'
equity (GBPbn) 47.0 48.8 46.5 48.6
Cost: income ratio 61% 66% 63% 60%
Loan loss rate (bps) 43 23 42 36
Basic earnings per share 28.2p 24.2p 8.3p 9.4p
Basic weighted average number
of shares (m) 15,564 16,503 (6) 15,405 16,148 (5)
Period end number of shares
(m) 15,239 15,888 (4) 15,239 15,888 (4)
As at As at As at
30.09.23 31.12.22 30.09.22
Balance sheet and capital
management(1) GBPbn GBPbn GBPbn
Loans and advances at amortised
cost 405.4 398.8 413.7
Loans and advances at amortised
cost impairment coverage ratio 1.4% 1.4% 1.4%
Total assets 1,591.7 1,513.7 1,726.9
Deposits at amortised cost 561.3 545.8 574.4
Tangible net asset value per
share 316p 295p 286p
Common equity tier 1 ratio 14.0% 13.9% 13.8%
Common equity tier 1 capital 48.0 46.9 48.6
Risk weighted assets 341.9 336.5 350.8
UK leverage ratio 5.0% 5.3% 5.0%
UK leverage exposure 1,202.4 1,130.0 1,232.1
Funding and liquidity
Group liquidity pool (GBPbn) 335.0 318.0 325.8
Liquidity coverage ratio(2) 159% 156% 156%
Net stable funding ratio(3) 138% 137%
Loan: deposit ratio 72% 73% 72%
Refer to pages 32 to 36 for further information on how capital,
1 RWAs and leverage are calculated.
The Liquidity Coverage Ratio is now shown on an average basis,
2 based on the average of the last 12 spot month end ratios. Prior
period LCR comparatives have been updated for consistency.
Represents average of the last four spot quarter end positions.
3
Reconciliation of financial results excluding the impact of the
Over-issuance of Securities in the prior year
Three months ended 30.09.23 30.09.22
Statutory Statutory Impact of Excluding
the Over-issuance impact of
of Securities the Over-issuance
of Securities
GBPm GBPm GBPm GBPm % Change
Barclays UK 1,873 1,916 - 1,916 (2)
Corporate and Investment
Bank 3,082 2,821 (466) 3,287 (6)
Consumer, Cards
and Payments 1,360 1,244 - 1,244 9
Barclays International 4,442 4,065 (466) 4,531 (2)
Head Office (57) (30) - (30) (90)
Total income 6,258 5,951 (466) 6,417 (2)
Operating costs (3,949) (3,939) - (3,939)
Litigation and conduct - 339 503 (164)
Total operating
expenses (3,949) (3,600) 503 (4,103) 4
Other net income/(expenses) 9 (1) - (1)
Profit before impairment 2,318 2,350 37 2,313
Credit impairment
charges (433) (381) - (381) (14)
Profit before tax 1,885 1,969 37 1,932 (2)
Attributable profit 1,274 1,512 29 1,483 (14)
Average tangible
shareholders' equity
(GBPbn) 46.5 48.6 48.6
Return on average
tangible shareholders'
equity 11.0% 12.5% 12.2%
Nine months ended 30.09.23 30.09.22
Statutory Statutory Impact of Excluding
the Over-issuance impact of
of Securities the Over-issuance
of Securities
GBPm GBPm GBPm GBPm % Change
Barclays UK 5,795 5,289 - 5,289 10
Corporate and Investment
Bank 10,220 10,792 292 10,500 (3)
Consumer, Cards
and Payments 3,944 3,213 - 3,213 23
Barclays International 14,164 14,005 292 13,713 3
Head Office (179) (139) - (139) (29)
Total income 19,780 19,155 292 18,863 5
Operating costs (11,979) (11,209) - (11,209) (7)
Litigation and conduct (32) (1,518) (966) (552) 94
Total operating
expenses (12,011) (12,727) (966) (11,761) (2)
Other net income/(expenses) 7 (4) - (4)
Profit before impairment 7,776 6,424 (674) 7,098 10
Credit impairment
charges (1,329) (722) - (722) (84)
Profit before tax 6,447 5,702 (674) 6,376 1
Attributable profit 4,385 3,987 (552) 4,539 (3)
Average tangible
shareholders' equity
(GBPbn) 47.0 48.8 48.8
Return on average
tangible shareholders'
equity 12.5% 10.9% 12.4%
Group Finance Director's Review
Q323 YTD Group performance
-- Barclays delivered a profit before tax of GBP6,447m (Q322 YTD:
GBP5,702m), RoTE of 12.5% (Q322 YTD: 10.9%) and earnings per share
(EPS) of 28.2p (Q322 YTD: 24.2p)
-- The Group has a diverse income profile across businesses and geographies
including a significant presence in the US. The appreciation of
average USD against GBP positively impacted income and profits
and adversely impacted credit impairment charges and total operating
expenses
-- Group income increased 3% to GBP19,780m primarily driven by the
net benefit from the higher interest rate environment, including
continued structural hedge income, and higher balances in US cards,
partially offset by the non repeat of the prior year income from
hedging arrangements related to the Over-issuance of Securities
and lower income in Global Markets and Investment Banking fees
-- Group total operating expenses decreased t o GBP12,011m (Q322
YTD: GBP12,727m)
- Group operating expenses excluding litigation and conduct charges
increased to GBP11,979m (Q322 YTD: GBP11,209m) reflecting the
impact of business growth, including the Gap portfolio acquisition
in US cards and the Kensington Mortgage Company (KMC) acquisition
in Barclays UK, as well as investments in resilience and controls.
The impact of Group inflation was broadly offset by efficiency
savings. The Group incurred GBP119m of structural cost actions
(Q322 YTD: GBP78m), primarily related to the ongoing Barclays
UK transformation programme
- Litigation and conduct charges decreased to GBP32m (Q322 YTD:
GBP1,518m). The prior year charges included GBP966m of costs
related to the Over-issuance of Securities, GBP282m of customer
remediation costs relating to legacy loan portfolios in CC&P
and GBP165m related to the Devices Settlements(1)
-- Credit impairment charges were GBP1,329m (Q322 YTD: GBP722m),
with delinquencies in US cards in line with pre-pandemic experience.
Total coverage ratio remains strong at 1.4% (December 2022: 1.4%)
-- The effective tax rate (ETR) was 19.5% (Q322 YTD: 18.8%). The
prior year included tax benefits arising in the year and in respect
of prior years, which were partially offset by the impact of the
downward re-measurement of the Group's UK deferred tax assets as
a result of the UK banking surcharge rate being reduced from 8%
to 3%
-- Attributable profit was GBP4,385m (Q322 YTD: GBP3,987m)
-- Total assets increased to GBP1,591.7bn (December 2022: GBP1,513.7bn)
driven by increased trading activity within CIB since December
2022. The Group liquidity pool was further strengthened by deposit
growth
-- TNAV per share increased to 316p (December 2022: 295p) as EPS
of 28.2p and the impact of share buybacks announced at FY22 and
H123 results were partially offset by dividends paid in the period
and net negative reserve movements
Barclays UK
Barclays UK delivered a RoTE of 20.6% supported by the higher interest
rate environment and the continued investment in our transformation
into a next-generation, digitised consumer bank . The challenging
environment has persisted with customer behaviour driving a reduction
in the NIM outlook and balances.
Profit before tax increased 16% to GBP2,300m with a RoTE of 20.6%
-- (Q322 YTD: 18.7%)
-- Total income increased 10% to GBP5,795m . Net interest income
increased 13% to GBP4,856m with a NIM of 3.15% (Q322 YTD: 2.78%),
as higher interest rates and associated structural hedge benefit
outweighed mortgage margin pressure, lower deposit volumes and
the search for yield in savings, with these product dynamics trends
increasing in Q323. Net fee, commission and other income decreased
6% to GBP939m including the impact of the transfer of WM&I to CC&P
- Personal Banking income increased 11% to GBP3,662m, driven by
higher interest rates, partially offset by mortgage margin compression
and lower current accounts deposit volumes consistent with wider
market trends and cost of living pressures
- Barclaycard Consumer UK income decreased 12% to GBP722m as higher
customer spend volumes were more than offset by lower interest
earning lending balances following repayments and ongoing prudent
risk management
- Business Banking income increased 22% to GBP1,411m driven by
higher interest rates, partially offset by lower government scheme
lending as repayments continue and lower deposit volumes in line
with wider market trends
-- Total operating expenses increased 2% to GBP3,228m from the impact
of inflation, partially offset by the transfer of WM&I to CC&P.
Ongoing efficiency savings continue to be reinvested, including
in our transformation programme to support further improvements
to the cost: income ratio over time
-- Credit impairment charges increased to GBP267m (Q322 YTD: GBP129m)
, driven by updated macroeconomic scenarios, reflecting year-to-date
improvement in GDP and unemployment outlook against a backdrop
of higher interest rates and a weaker House Price Index (HPI).
UK cards 30 and 90 day arrears remained low at 0.9% (Q322: 1.0%)
and 0.2% (Q322: 0.3%) respectively. The UK cards total coverage
ratio was 6.3% (December 2022: 7.6%)
Refers to the settlements with the SEC and Commodity Futures Trading
1 Commission (CFTC) in connection with their investigations of the
use of unauthorised devices for business communications.
Barclays UK (continued)
Loans and advances to customers at amortised cost were broadly
-- stable at GBP204.9bn (December 2022: GBP205.1bn) , primarily reflecting
the acquisition of KMC and mortgage lending in the first half of
the year, which more than offset repayment of government scheme
lending in Business Banking
-- Customer deposits at amortised cost decreased 6% to GBP243.2bn.
Primarily driven by reduced current account balances in Personal
and Business Banking, reflecting broader market trends. The loan:
deposit ratio increased to 92% (December 2022: 87%)
- Average balances quarter-on-quarter contributed to a larger net
interest income deposit effect than the period end balances
-- RWAs were stable at GBP73.2bn (December 2022: GBP73.1bn) including
a reduction due to a capital Loss Given Default (LGD) model update
for the mortgages portfolio, partially offset by the acquisition
of KMC
Barclays International
Barclays International delivered a RoTE of 11.4%. Despite the reduced
banking industry fee pool and lower client activity in Global Markets,
CIB delivered a RoTE of 11.5% reflecting the benefits of income diversification
and investment in sustainable growth. CC&P delivered a RoTE of 10.6%
reflecting continued investment in the business resulting in balance
growth and increased income, partially offset by higher impairment
charges.
-- Profit before tax increased 10% to GBP4,580m with a RoTE of 11.4%
(Q322 YTD: 11.5%) , reflecting a RoTE of 11.5% (Q322 YTD: 11.9%)
in CIB and 10.6% (Q322 YTD: 8.9%) in CC&P
-- Barclays International has a diverse income profile across businesses
and geographies including a significant presence in the US. The
appreciation of average USD against GBP positively impacted income
and profits, and adversely impacted credit impairment charges and
total operating expenses
-- Total income increased to GBP14,164m (Q322 YTD: GBP14,005m)
- CIB income decreased 5% to GBP10,220m and 3% excluding the impact
from prior year hedging arrangements related to the Over-issuance
of Securities(1)
- Global Markets income decreased 18% to GBP6,063m. FICC income
decreased 13% to GBP4,121m, driven by macro reflecting lower
market volatility and client activity, partially offset by
strong performance in credit. Equities income decreased 28%
to GBP1,942m, driven by a decline in derivatives income reflecting
less volatile equity market conditions. Excluding the impact
from the Over-issuance of Securities, Equities income decreased
by 20%
- Investment Banking fees decreased 16% to GBP1,450m due to
the reduced fee pool across Advisory and Debt capital markets(2)
, partially offset by an improvement in Equity capital markets
- Within Corporate, Transaction banking income increased 31%
to GBP2,272m driven by improved deposit margins in the higher
interest rate environment. Corporate lending income increased
to GBP435m (Q322 YTD: GBP103m loss) mainly driven by lower
costs of hedging and the non-repeat of fair value losses on
leverage finance lending net of mark to market gains on related
hedges in the prior year
- CC&P income increased 23% to GBP3,944m
- International Cards and Consumer Bank income increased 28%
to GBP2,625m reflecting higher cards balances and improved
margins, including the Gap portfolio acquisition in Q222
- Private Bank income increased 21% to GBP884m, due to the transfer
of WM&I from Barclays UK, client balance growth and improved
margins
- Payments income was stable at GBP435m (Q322 YTD: GBP431m)
driven by merchant acquiring growth, partially offset by margin
compression
Total operating expenses decreased 8% to GBP8,559m, and excluding
-- litigation and conduct increased 9% to GBP8,519m, reflecting investment
in the business
- CIB total operating expenses decreased 11% to GBP6,192m. Operating
expenses excluding litigation and conduct charges increased 6%
to GBP6,201m reflecting investment in talent and technology,
and the impact of inflation, partially offset by efficiency savings
- CC&P total operating expenses increased 4% to GBP2,367m. Operating
expenses excluding litigation and conduct charges increased 17%
to GBP2,318m, driven by higher investment spend to support growth,
mainly in marketing and partnership costs including the Gap portfolio
acquisition, the transfer of WM&I from Barclays UK and the impact
of inflation, partially offset by efficiency savings
Q322 YTD included GBP292m of income gain related to hedging arrangements
1 to manage the risks of the rescission offer in relation to the
Over-issuance of Securities.
Data source: Dealogic for the period covering 1 January to 30
2 September 2023.
Barclays International (continued)
-- Credit impairment charges were GBP1,037m (Q322 YTD: GBP605m)
- CIB credit impairment charges were GBPnil (Q322 YTD: GBP78m)
driven by single name charges offset by the benefit of credit
protection and the updated macroeconomic scenarios
- CC&P credit impairment charges increased to GBP1,037m (Q322 YTD:
GBP527m), with delinquencies in US cards in line with pre-pandemic
experience, with 30 and 90 day arrears at 2.7% (Q322: 2.0%) and
1.3% (Q322: 0.8%) respectively. The US cards total coverage ratio
was 9.7% (December 2022: 8.1%)
-- RWAs increased to GBP259.2bn (December 2022: GBP254.8bn ) due
to increased trading activity within CIB since Q422, partially
offset by the impact of strengthening of GBP against USD
- RWAs were broadly stable since June 2023, excluding the impact
of spot USD appreciation against GBP
Head Office
Loss before tax was GBP433m (Q322 YTD: GBP446m)
--
-- Total income was an expense of GBP179m (Q322 YTD: GBP139m) primarily
reflecting hedge accounting and treasury items. The prior year
included a one-off gain of GBP86m from the sale and leaseback of
UK data centres, as well as a GBP74m loss on sale arising from
disposals of Barclays' equity stake in Absa Group Limited
Total operating expenses decreased to GBP224m (Q322 YTD: GBP293m)
-- primarily driven by lower litigation and conduct charges
-- RWAs were GBP9.5bn (December 2022: GBP8.6bn)
Capital distributions
-- Barclays paid a half-year dividend of 2.7p per share on 15 September
2023, and completed the share buyback of GBP750m announced at H123
results, bringing the total capital return equivalent to c.7.5p
per share
-- Barclays is committed to maintaining a balance between a strong
capital position, delivering total cash returns to shareholders
and investment in the business. Barclays pays a progressive ordinary
dividend, taking into account these objectives and the earnings
outlook of the Group. The Board will also continue to supplement
the ordinary dividend as appropriate, including with share buybacks
Group capital and leverage
-- The CET1 ratio increased to 14.0% (December 2022: 13.9%) as CET1
capital increased by GBP1.1bn to GBP48.0bn (December 2022: GBP46.9bn)
partially offset by an increase in RWAs of GBP5.4bn to GBP341.9bn
(December 2022: GBP336.5bn):
- c.130bps increase from attributable profit generated in the period
- c.60bps decrease driven by returns to shareholders including
the interim dividend of 2.7p per share paid in September 2023
and GBP1.3bn of share buybacks announced with FY22 and H123 results.
It also includes an accrual towards the FY23 dividend
- c.30bps decrease from other capital movements, including the
impact of regulatory change on 1 January 2023 relating to IFRS
9 transitional relief, the impact of the KMC acquisition, and
other regulatory capital deductions
- c.30bps decrease as a result of a GBP7.4bn increase in RWAs primarily
driven by increased trading activity within CIB since December
2022
- A GBP3.2bn decrease in RWAs as a result of foreign exchange movements
since December 2022 was broadly offset by a GBP0.4bn decrease
in CET1 capital due to a decrease in the currency translation
reserve
-- The UK leverage ratio decreased to 5.0% (December 2022: 5.3%) primarily
due to a GBP72.4bn increase in leverage exposure to GBP1,202.4bn
(December 2022: GBP1,130.0bn). This is largely driven by increased
trading activity within CIB since December 2022
Group funding and liquidity
-- The liquidity and funding position remains robust and stable in
the period. The liquidity pool increased to GBP335.0bn (December
2022: GBP318.0bn) driven by deposit growth. The composition of
the liquidity pool is conservative, with 81% held in cash and deposits
with central banks and the remainder primarily held in high quality
government bonds, materially held at fair value or hedged
-- The strength of the funding and liquidity position is supported
by a diverse and stable deposit franchise. Total deposits increased
to GBP561.3bn (December 2022: GBP545.8bn)
-- The average(1) Liquidity Coverage Ratio (LCR) remained significantly
above the 100% regulatory requirement at 159% (December 2022: 156%),
equivalent to a surplus of GBP115.6bn (December 2022: GBP114.4bn)
-- The average(2) Net Stable Funding Ratio was 138% (December 2022:
137%), which represents a GBP165.8bn (December 2022: GBP155.6bn)
surplus above the 100% regulatory requirement
-- Wholesale funding outstanding, excluding repurchase agreements,
was GBP186.4bn (December 2022: GBP184.0bn)
-- The Group issued GBP12.0bn equivalent of minimum requirement for
own funds and eligible liabilities (MREL) instruments from Barclays
PLC (the Parent company) year to date. The Group has a strong MREL
position with a ratio of 33.4%, which is in excess of the regulatory
requirement of 29.6% plus a confidential, institution specific,
Prudential Regulation Authority (PRA) buffer
Other matters
-- KMC acquisition: on 1 March 2023, Barclays completed the acquisition
of UK specialist mortgage lender KMC, including a portfolio of
mortgages totalling GBP2.2bn with an RWA impact of GBP0.8bn
-- Combination of the Private Bank and Barclays UK Wealth business:
on 1 May 2023, WM&I was transferred from Barclays UK to CC&P, creating
a combined Private Bank and Wealth Management business. The combination
seeks to improve customer and client experience and create business
synergies:
- The business transferred includes c.GBP28bn of invested assets,
generating annualised income of c.GBP0.2bn
Represents average of the last 12 spot month end ratios.
1
Represents average of the last four spot quarter end ratios.
2
Anna Cross, Group Finance Director
Results by Business
Barclays UK Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Income statement information GBPm GBPm % Change GBPm GBPm % Change
Net interest income 4,856 4,293 13 1,578 1,561 1
Net fee, commission and other
income 939 996 (6) 295 355 (17)
Total income 5,795 5,289 10 1,873 1,916 (2)
Operating costs (3,240) (3,152) (3) (1,058) (1,069) 1
Litigation and conduct 12 (28) 9 (3)
Total operating expenses (3,228) (3,180) (2) (1,049) (1,072) 2
Other net expenses - (1) - (1)
Profit before impairment 2,567 2,108 22 824 843 (2)
Credit impairment charges (267) (129) (59) (81) 27
Profit before tax 2,300 1,979 16 765 762
Attributable profit 1,580 1,403 13 531 549 (3)
Performance measures
Return on average allocated
tangible equity 20.6% 18.7% 21.0% 22.1%
Average allocated tangible
equity (GBPbn) 10.2 10.0 10.1 9.9
Cost: income ratio 56% 60% 56% 56%
Loan loss rate (bps) 16 8 10 14
Net interest margin 3.15% 2.78% 3.04% 3.01%
As at As at As at
30.09.23 31.12.22 30.09.22
Balance sheet information GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 204.9 205.1 205.1
Total assets 299.9 313.2 316.8
Customer deposits at amortised
cost 243.2 258.0 261.0
Loan: deposit ratio 92% 87% 86%
Risk weighted assets 73.2 73.1 73.2
Period end allocated tangible
equity 10.1 10.1 10.1
Analysis of Barclays UK Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Analysis of total income GBPm GBPm % Change GBPm GBPm % Change
Personal Banking 3,662 3,311 11 1,165 1,212 (4)
Barclaycard Consumer UK 722 824 (12) 238 283 (16)
Business Banking 1,411 1,154 22 470 421 12
Total income 5,795 5,289 10 1,873 1,916 (2)
Analysis of credit impairment
(charges)/releases
Personal Banking (205) (47) (85) (26)
Barclaycard Consumer UK (89) 42 29 2
Business Banking 27 (124) (3) (57) 95
Total credit impairment charges (267) (129) (59) (81) 27
As at As at As at
30.09.23 31.12.22 30.09.22
Analysis of loans and advances
to customers at amortised cost GBPbn GBPbn GBPbn
Personal Banking 172.3 169.7 168.7
Barclaycard Consumer UK 9.6 9.2 9.0
Business Banking 23.0 26.2 27.4
Total loans and advances to
customers at amortised cost 204.9 205.1 205.1
Analysis of customer deposits
at amortised cost
Personal Banking 186.1 195.6 197.3
Barclaycard Consumer UK - - -
Business Banking 57.1 62.4 63.7
Total customer deposits at
amortised cost 243.2 258.0 261.0
Barclays International Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Income statement information GBPm GBPm % Change GBPm GBPm % Change
Net interest income 4,739 3,462 37 1,655 1,497 11
Net trading income 5,158 6,540 (21) 1,461 1,328 10
Net fee, commission and other
income 4,267 4,003 7 1,326 1,240 7
Total income 14,164 14,005 1 4,442 4,065 9
Operating costs (8,519) (7,818) (9) (2,816) (2,776) (1)
Litigation and conduct (40) (1,436) 97 (10) 396
Total operating expenses (8,559) (9,254) 8 (2,826) (2,380) (19)
Other net income 12 23 (48) 3 10 (70)
Profit before impairment 5,617 4,774 18 1,619 1,695 (4)
Credit impairment charges (1,037) (605) (71) (358) (295) (21)
Profit before tax 4,580 4,169 10 1,261 1,400 (10)
Attributable profit 3,149 3,219 (2) 848 1,136 (25)
Performance measures
Return on average allocated
tangible equity 11.4% 11.5% 9.2% 11.6%
Average allocated tangible
equity (GBPbn) 37.0 37.2 36.8 39.1
Cost: income ratio 60% 66% 64% 59%
Loan loss rate (bps) 77 43 78 62
Net interest margin 5.90% 4.78% 5.98% 5.58%
As at As at As at
30.09.23 31.12.22 30.09.22
Balance sheet information GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 130.8 133.7 137.0
Loans and advances to banks
at amortised cost 10.3 8.7 11.0
Debt securities at amortised
cost 36.4 27.2 36.2
Loans and advances at amortised
cost 177.5 169.6 184.2
Trading portfolio assets 155.4 133.8 126.3
Derivative financial instrument
assets 280.4 301.7 415.7
Financial assets at fair value
through the income statement 238.3 210.5 244.7
Cash collateral and settlement
balances 136.0 107.7 163.3
Other assets 285.5 258.0 257.2
Total assets 1,273.1 1,181.3 1,391.4
Deposits at amortised cost 318.2 287.6 313.2
Derivative financial instrument
liabilities 268.3 288.9 394.2
Loan: deposit ratio 56% 59% 59%
Risk weighted assets 259.2 254.8 269.3
Period end allocated tangible
equity 37.1 36.8 38.8
Analysis of Barclays International
Corporate and Investment Bank Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Income statement information GBPm GBPm % Change GBPm GBPm % Change
Net interest income 2,021 1,401 44 700 606 16
Net trading income 5,294 6,532 (19) 1,503 1,344 12
Net fee, commission and other
income 2,905 2,859 2 879 871 1
Total income 10,220 10,792 (5) 3,082 2,821 9
Operating costs (6,201) (5,834) (6) (2,015) (2,043) 1
Litigation and conduct 9 (1,134) 7 498 (99)
Total operating expenses (6,192) (6,968) 11 (2,008) (1,545) (30)
Other net income 3 - 2 -
Profit before impairment 4,031 3,824 5 1,076 1,276 (16)
Credit impairment (charges)/releases - (78) 20 (46)
Profit before tax 4,031 3,746 8 1,096 1,230 (11)
Attributable profit 2,728 2,910 (6) 721 1,015 (29)
Performance measures
Return on average allocated
tangible equity 11.5% 11.9% 9.2% 11.9%
Average allocated tangible
equity (GBPbn) 31.7 32.5 31.5 34.0
Cost: income ratio 61% 65% 65% 55%
Loan loss rate (bps) - 7 (6) 13
As at As at As at
30.09.23 31.12.22 30.09.22
Balance sheet information GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 87.9 90.5 93.6
Loans and advances to banks
at amortised cost 9.6 8.1 10.2
Debt securities at amortised
cost 36.3 27.2 36.2
Loans and advances at amortised
cost 133.8 125.8 140.0
Trading portfolio assets 155.3 133.7 126.1
Derivative financial instrument
assets 280.4 301.6 415.5
Financial assets at fair value
through the income statement 238.2 210.5 244.6
Cash collateral and settlement
balances 135.2 106.9 162.6
Other assets 237.2 222.6 220.6
Total assets 1,180.1 1,101.1 1,309.4
Deposits at amortised cost 236.9 205.8 229.5
Derivative financial instrument
liabilities 268.3 288.9 394.2
Risk weighted assets 219.2 215.9 230.6
Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Analysis of total income GBPm GBPm % Change GBPm GBPm % Change
FICC 4,121 4,719 (13) 1,147 1,546 (26)
Equities 1,942 2,709 (28) 675 246
Global Markets 6,063 7,428 (18) 1,822 1,792 2
Advisory 422 571 (26) 80 150 (47)
Equity capital markets 181 126 44 62 42 48
Debt capital markets 847 1,038 (18) 233 341 (32)
Investment Banking fees 1,450 1,735 (16) 375 533 (30)
Corporate lending 435 (103) 172 (181)
Transaction banking 2,272 1,732 31 713 677 5
Corporate 2,707 1,629 66 885 496 78
Total income 10,220 10,792 (5) 3,082 2,821 9
Analysis of Barclays International
Consumer, Cards and Payments Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Income statement information GBPm GBPm % Change GBPm GBPm % Change
Net interest income 2,718 2,061 32 955 891 7
Net fee, commission, trading
and other income 1,226 1,152 6 405 353 15
Total income 3,944 3,213 23 1,360 1,244 9
Operating costs (2,318) (1,984) (17) (801) (733) (9)
Litigation and conduct (49) (302) 84 (17) (102) 83
Total operating expenses (2,367) (2,286) (4) (818) (835) 2
Other net income 9 23 (61) 1 10 (90)
Profit before impairment 1,586 950 67 543 419 30
Credit impairment charges (1,037) (527) (97) (378) (249) (52)
Profit before tax 549 423 30 165 170 (3)
Attributable profit 421 309 36 127 121 5
Performance measures
Return on average allocated
tangible equity 10.6% 8.9% 9.6% 9.5%
Average allocated tangible
equity (GBPbn) 5.3 4.7 5.3 5.1
Cost: income ratio 60% 71% 60% 67%
Loan loss rate (bps) 297 150 321 211
As at As at As at
30.09.23 31.12.22 30.09.22
Balance sheet information GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 42.9 43.2 43.4
Total assets 93.0 80.2 82.0
Deposits at amortised cost 81.3 81.8 83.7
Risk weighted assets 39.9 38.9 38.7
Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Analysis of total income GBPm GBPm % Change GBPm GBPm % Change
International Cards and Consumer
Bank 2,625 2,053 28 890 824 8
Private Bank 884 729 21 331 270 23
Payments 435 431 1 139 150 (7)
Total income 3,944 3,213 23 1,360 1,244 9
Head Office Nine months ended Three months ended
30.09.23 30.09.22 30.09.23 30.09.22
Income statement information GBPm GBPm % Change GBPm GBPm % Change
Net interest income (25) 76 14 10 40
Net fee, commission and other
income (154) (215) 28 (71) (40) (78)
Total income (179) (139) (29) (57) (30) (90)
Operating costs (220) (239) 8 (75) (94) 20
Litigation and conduct (4) (54) 93 1 (54)
Total operating expenses (224) (293) 24 (74) (148) 50
Other net (expenses)/income (5) (26) 81 6 (10)
Loss before impairment (408) (458) 11 (125) (188) 34
Credit impairment (charges)/releases (25) 12 (16) (5)
Loss before tax (433) (446) 3 (141) (193) 27
Attributable loss (344) (635) 46 (105) (173) 39
Performance measures
Average allocated tangible
equity (GBPbn) (0.2) 1.6 (0.4) (0.4)
As at As at As at
30.09.23 31.12.22 30.09.22
Balance sheet information GBPbn GBPbn GBPbn
Total assets 18.7 19.2 18.7
Risk weighted assets 9.5 8.6 8.2
Period end allocated tangible
equity 1.0 (0.2) (3.5)
Quarterly Results Summary
Barclays Group
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 3,247 3,270 3,053 2,741 3,068 2,422 2,341 2,230
Net fee, commission and
other income 3,011 3,015 4,184 3,060 2,883 4,286 4,155 2,930
Total income 6,258 6,285 7,237 5,801 5,951 6,708 6,496 5,160
Operating costs (3,949) (3,919) (4,111) (3,748) (3,939) (3,682) (3,588) (3,514)
UK bank levy - - - (176) - - - (170)
Litigation and conduct - (33) 1 (79) 339 (1,334) (523) (92)
Total operating expenses (3,949) (3,952) (4,110) (4,003) (3,600) (5,016) (4,111) (3,776)
Other net income/(expenses) 9 3 (5) 10 (1) 7 (10) 13
Profit before impairment 2,318 2,336 3,122 1,808 2,350 1,699 2,375 1,397
Credit impairment (charges)/releases (433) (372) (524) (498) (381) (200) (141) 31
Profit before tax 1,885 1,964 2,598 1,310 1,969 1,499 2,234 1,428
Tax (charge)/credit (343) (353) (561) 33 (249) (209) (614) (104)
Profit after tax 1,542 1,611 2,037 1,343 1,720 1,290 1,620 1,324
Non-controlling interests (9) (22) (8) (22) (2) (20) (1) (27)
Other equity instrument
holders (259) (261) (246) (285) (206) (199) (215) (218)
Attributable profit 1,274 1,328 1,783 1,036 1,512 1,071 1,404 1,079
Performance measures
Return on average tangible
shareholders' equity 11.0% 11.4% 15.0% 8.9% 12.5% 8.7% 11.5% 9.0%
Average tangible shareholders'
equity (GBPbn) 46.5 46.7 47.6 46.7 48.6 49.0 48.8 48.0
Cost: income ratio 63% 63% 57% 69% 60% 75% 63% 73%
Loan loss rate (bps) 42 37 52 49 36 20 15 (3)
Basic earnings per share 8.3p 8.6p 11.3p 6.5p 9.4p 6.4p 8.4p 6.4p
Basic weighted average
number of shares (m) 15,405 15,523 15,770 15,828 16,148 16,684 16,682 16,985
Period end number of shares
(m) 15,239 15,556 15,701 15,871 15,888 16,531 16,762 16,752
Balance sheet and capital
management(2) GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 339.6 337.4 343.6 343.3 346.3 337.2 325.8 319.9
Loans and advances to banks
at amortised cost 11.5 10.9 11.0 10.0 12.5 12.5 11.4 9.7
Debt securities at amortised
cost 54.3 53.1 48.9 45.5 54.8 46.1 34.5 31.8
Loans and advances at
amortised cost 405.4 401.4 403.5 398.8 413.7 395.8 371.7 361.5
Loans and advances at amortised
cost impairment coverage
ratio 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.5% 1.6%
Total assets 1,591.7 1,549.7 1,539.1 1,513.7 1,726.9 1,589.2 1,496.1 1,384.3
Deposits at amortised cost 561.3 554.7 555.7 545.8 574.4 568.7 546.5 519.4
Tangible net asset value
per share 316p 291p 301p 295p 286p 297p 294p 291p
Common equity tier 1 ratio 14.0% 13.8% 13.6% 13.9% 13.8% 13.6% 13.8% 15.1%
Common equity tier 1 capital 48.0 46.6 46.0 46.9 48.6 46.7 45.3 47.3
Risk weighted assets 341.9 336.9 338.4 336.5 350.8 344.5 328.8 314.1
UK leverage ratio 5.0% 5.1% 5.1% 5.3% 5.0% 5.1% 5.0% 5.2%
UK leverage exposure 1,202.4 1,183.7 1,168.9 1,130.0 1,232.1 1,151.2 1,123.5 1,137.9
Funding and liquidity
Group liquidity pool (GBPbn) 335.0 330.7 333.0 318.0 325.8 342.5 319.8 291.0
Liquidity coverage ratio(3) 159% 157% 157% 156% 156% 157% 159% 160%
Net stable funding ratio(4) 138% 139% 139% 137%
Loan: deposit ratio 72% 72% 73% 73% 72% 70% 68% 70%
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Refer to pages 32 to 36 for further information on how capital,
2 RWAs and leverage are calculated.
The Liquidity Coverage Ratio is based on the average of the last
3 12 spot month end ratios. Prior period LCR comparatives have been
updated for consistency.
Represents average of the last four spot quarter end positions.
4
Quarterly Results by Business
Barclays UK
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 1,578 1,660 1,618 1,600 1,561 1,393 1,339 1,313
Net fee, commission and
other income 295 301 343 370 355 331 310 386
Total income 1,873 1,961 1,961 1,970 1,916 1,724 1,649 1,699
Operating costs (1,058) (1,090) (1,092) (1,108) (1,069) (1,085) (998) (1,202)
UK bank levy - - - (26) - - - (36)
Litigation and conduct 9 5 (2) (13) (3) (16) (9) (5)
Total operating expenses (1,049) (1,085) (1,094) (1,147) (1,072) (1,101) (1,007) (1,243)
Other net income/(expenses) - - - 1 (1) - - (1)
Profit before impairment 824 876 867 824 843 623 642 455
Credit impairment (charges)/releases (59) (95) (113) (157) (81) - (48) 59
Profit before tax 765 781 754 667 762 623 594 514
Attributable profit 531 534 515 474 549 458 396 420
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 204.9 206.8 208.2 205.1 205.1 205.9 207.3 208.8
Total assets 299.9 304.8 308.6 313.2 316.8 318.8 317.2 321.2
Customer deposits at amortised
cost 243.2 249.8 254.3 258.0 261.0 261.5 260.3 260.6
Loan: deposit ratio 92% 90% 90% 87% 86% 85% 85% 85%
Risk weighted assets 73.2 73.0 74.6 73.1 73.2 72.2 72.7 72.3
Period end allocated tangible
equity 10.1 10.1 10.3 10.1 10.1 9.9 10.1 10.0
Performance measures
Return on average allocated
tangible equity 21.0% 20.9% 20.0% 18.7% 22.1% 18.4% 15.6% 16.8%
Average allocated tangible
equity (GBPbn) 10.1 10.2 10.3 10.2 9.9 10.0 10.1 10.0
Cost: income ratio 56% 55% 56% 58% 56% 64% 61% 73%
Loan loss rate (bps) 10 17 20 27 14 - 9 (10)
Net interest margin 3.04% 3.22% 3.18% 3.10% 3.01% 2.71% 2.62% 2.49%
Analysis of Barclays UK Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421
Analysis of total income GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Personal Banking 1,165 1,244 1,253 1,229 1,212 1,077 1,022 983
Barclaycard Consumer UK 238 237 247 269 283 265 276 352
Business Banking 470 480 461 472 421 382 351 364
Total income 1,873 1,961 1,961 1,970 1,916 1,724 1,649 1,699
Analysis of credit impairment
(charges)/releases
Personal Banking (85) (92) (28) (120) (26) (42) 21 8
Barclaycard Consumer UK 29 (35) (83) (12) 2 84 (44) 114
Business Banking (3) 32 (2) (25) (57) (42) (25) (63)
Total credit impairment
(charges)/releases (59) (95) (113) (157) (81) - (48) 59
Analysis of loans and
advances to customers at
amortised cost GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Personal Banking 172.3 173.3 173.6 169.7 168.7 167.1 166.5 165.4
Barclaycard Consumer UK 9.6 9.3 9.0 9.2 9.0 8.8 8.4 8.7
Business Banking 23.0 24.2 25.6 26.2 27.4 30.0 32.4 34.7
Total loans and advances
to customers at amortised
cost 204.9 206.8 208.2 205.1 205.1 205.9 207.3 208.8
Analysis of customer deposits
at amortised cost
Personal Banking 186.1 191.1 194.3 195.6 197.3 197.0 196.6 196.4
Barclaycard Consumer UK - - - - - - - -
Business Banking 57.1 58.7 60.0 62.4 63.7 64.5 63.7 64.2
Total customer deposits
at amortised cost 243.2 249.8 254.3 258.0 261.0 261.5 260.3 260.6
Barclays International
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 1,655 1,730 1,354 1,465 1,497 1,029 936 955
Net trading income 1,461 1,278 2,419 1,169 1,328 2,766 2,446 789
Net fee, commission and
other income 1,326 1,432 1,509 1,228 1,240 1,321 1,442 1,766
Total income 4,442 4,440 5,282 3,862 4,065 5,116 4,824 3,510
Operating costs (2,816) (2,747) (2,956) (2,543) (2,776) (2,537) (2,505) (2,160)
UK bank levy - - - (133) - - - (134)
Litigation and conduct (10) (33) 3 (67) 396 (1,319) (513) (84)
Total operating expenses (2,826) (2,780) (2,953) (2,743) (2,380) (3,856) (3,018) (2,378)
Other net income 3 6 3 5 10 5 8 3
Profit before impairment 1,619 1,666 2,332 1,124 1,695 1,265 1,814 1,135
Credit impairment charges (358) (275) (404) (328) (295) (209) (101) (23)
Profit before tax 1,261 1,391 1,928 796 1,400 1,056 1,713 1,112
Attributable profit 848 953 1,348 625 1,136 783 1,300 818
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 130.8 126.6 131.0 133.7 137.0 126.7 113.9 106.4
Loans and advances to banks
at amortised cost 10.3 9.7 9.8 8.7 11.0 11.3 10.2 8.4
Debt securities at amortised
cost 36.4 35.2 30.8 27.2 36.2 29.3 20.7 19.0
Loans and advances at
amortised cost 177.5 171.5 171.6 169.6 184.2 167.3 144.8 133.8
Trading portfolio assets 155.4 165.1 137.7 133.8 126.3 126.9 134.1 146.9
Derivative financial instrument
assets 280.4 264.9 256.6 301.7 415.7 343.5 288.8 261.5
Financial assets at fair
value through the income
statement 238.3 232.2 245.0 210.5 244.7 209.3 203.8 188.2
Cash collateral and settlement
balances 136.0 123.9 125.5 107.7 163.3 128.5 132.0 88.1
Other assets 285.5 268.8 275.0 258.0 257.2 275.1 255.5 225.6
Total assets 1,273.1 1,226.4 1,211.4 1,181.3 1,391.4 1,250.6 1,159.0 1,044.1
Deposits at amortised cost 318.2 305.0 301.6 287.6 313.2 307.4 286.1 258.8
Derivative financial instrument
liabilities 268.3 254.5 246.7 288.9 394.2 321.2 277.2 256.4
Loan: deposit ratio 56% 56% 57% 59% 59% 54% 51% 52%
Risk weighted assets 259.2 254.6 255.1 254.8 269.3 263.8 245.1 230.9
Period end allocated tangible
equity 37.1 36.7 36.8 36.8 38.8 38.0 35.6 33.2
Performance measures
Return on average allocated
tangible equity 9.2% 10.3% 14.5% 6.4% 11.6% 8.4% 14.8% 9.9%
Average allocated tangible
equity (GBPbn) 36.8 37.1 37.1 38.9 39.1 37.3 35.1 32.9
Cost: income ratio 64% 63% 56% 71% 59% 75% 63% 68%
Loan loss rate (bps) 78 63 94 75 62 49 28 7
Net interest margin 5.98% 5.85% 5.87% 5.71% 5.58% 4.41% 4.15% 4.14%
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Analysis of Barclays International
Corporate and Investment
Bank Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 700 856 465 548 606 410 385 432
Net trading income 1,503 1,353 2,437 1,201 1,344 2,738 2,450 774
Net fee, commission and
other income 879 953 1,074 827 871 885 1,103 1,426
Total income 3,082 3,162 3,976 2,576 2,821 4,033 3,938 2,632
Operating costs (2,015) (1,984) (2,202) (1,796) (2,043) (1,870) (1,921) (1,562)
UK bank levy - - - (126) - - - (128)
Litigation and conduct 7 (1) 3 (55) 498 (1,314) (318) (59)
Total operating expenses (2,008) (1,985) (2,199) (1,977) (1,545) (3,184) (2,239) (1,749)
Other net income 2 1 - 2 - - - 1
Profit before impairment 1,076 1,178 1,777 601 1,276 849 1,699 884
Credit impairment releases/(charges) 20 13 (33) (41) (46) (65) 33 73
Profit before tax 1,096 1,191 1,744 560 1,230 784 1,732 957
Attributable profit 721 798 1,209 454 1,015 579 1,316 695
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 87.9 84.8 89.2 90.5 93.6 86.5 79.5 73.4
Loans and advances to banks
at amortised cost 9.6 9.0 9.2 8.1 10.2 10.0 9.4 7.6
Debt securities at amortised
cost 36.3 35.1 30.7 27.2 36.2 29.3 20.7 19.0
Loans and advances at
amortised cost 133.8 128.9 129.1 125.8 140.0 125.8 109.6 100.0
Trading portfolio assets 155.3 165.0 137.6 133.7 126.1 126.7 134.0 146.7
Derivative financial instruments
assets 280.4 264.8 256.5 301.6 415.5 343.4 288.7 261.5
Financial assets at fair
value through the income
statement 238.2 232.1 244.9 210.5 244.6 209.2 203.8 188.1
Cash collateral and settlement
balances 135.2 122.5 124.7 106.9 162.6 127.7 131.2 87.2
Other assets 237.2 224.6 230.3 222.6 220.6 237.2 222.5 195.8
Total assets 1,180.1 1,137.9 1,123.1 1,101.1 1,309.4 1,170.0 1,089.8 979.3
Deposits at amortised cost 236.9 225.5 221.0 205.8 229.5 229.5 214.7 189.4
Derivative financial instrument
liabilities 268.3 254.5 246.7 288.9 394.2 321.2 277.1 256.4
Risk weighted assets 219.2 216.5 216.8 215.9 230.6 227.6 213.5 200.7
Performance measures
Return on average allocated
tangible equity 9.2% 10.0% 15.2% 5.4% 11.9% 7.1% 17.1% 9.7%
Average allocated tangible
equity (GBPbn) 31.5 31.8 31.8 33.7 34.0 32.7 30.8 28.7
Cost: income ratio 65% 63% 55% 77% 55% 79% 57% 66%
Loan loss rate (bps) (6) (4) 10 13 13 20 (12) (29)
Net interest margin 3.65% 3.98% 3.95% 3.73% 3.56% 2.88% 2.52% 2.67%
Analysis of total income GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
FICC 1,147 1,186 1,788 976 1,546 1,529 1,644 546
Equities 675 563 704 440 246 1,411 1,052 501
Global Markets 1,822 1,749 2,492 1,416 1,792 2,940 2,696 1,047
Advisory 80 130 212 197 150 236 185 287
Equity capital markets 62 69 50 40 42 37 47 158
Debt capital markets 233 273 341 243 341 281 416 511
Investment Banking fees 375 472 603 480 533 554 648 956
Corporate lending 172 168 95 (128) (181) (47) 125 176
Transaction banking 713 773 786 808 677 586 469 453
Corporate 885 941 881 680 496 539 594 629
Total income 3,082 3,162 3,976 2,576 2,821 4,033 3,938 2,632
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Analysis of Barclays International
Consumer, Cards and Payments Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 955 874 889 918 891 619 551 522
Net fee, commission, trading
and other income 405 404 417 368 353 464 335 356
Total income 1,360 1,278 1,306 1,286 1,244 1,083 886 878
Operating costs (801) (763) (754) (747) (733) (667) (584) (598)
UK bank levy - - - (7) - - - (6)
Litigation and conduct (17) (32) - (12) (102) (5) (195) (25)
Total operating expenses (818) (795) (754) (766) (835) (672) (779) (629)
Other net income 1 5 3 3 10 5 8 2
Profit before impairment 543 488 555 523 419 416 115 251
Credit impairment charges (378) (288) (371) (287) (249) (144) (134) (96)
Profit/(loss) before tax 165 200 184 236 170 272 (19) 155
Attributable profit/(loss) 127 155 139 171 121 204 (16) 123
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Loans and advances to customers
at amortised cost 42.9 41.7 41.8 43.2 43.4 40.2 34.4 33.0
Total assets 93.0 88.5 88.3 80.2 82.0 80.6 69.2 64.8
Deposits at amortised cost 81.3 79.5 80.6 81.8 83.7 77.9 71.4 69.4
Risk weighted assets 39.9 38.1 38.2 38.9 38.7 36.2 31.6 30.2
Performance measures
Return on average allocated
tangible equity 9.6% 11.8% 10.5% 13.0% 9.5% 17.8% (1.5)% 11.7%
Average allocated tangible
equity (GBPbn) 5.3 5.3 5.3 5.2 5.1 4.6 4.3 4.2
Cost: income ratio 60% 62% 58% 60% 67% 62% 88% 72%
Loan loss rate (bps) 321 255 332 245 211 132 145 105
Net interest margin 8.88% 8.25% 8.42% 8.40% 8.41% 6.68% 6.56% 6.29%
Analysis of total income GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
International Cards and
Consumer Bank 890 835 900 860 824 691 538 552
Private Bank 331 295 258 285 270 245 214 200
Payments 139 148 148 141 150 147 134 126
Total income 1,360 1,278 1,306 1,286 1,244 1,083 886 878
Head Office
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Net interest income 14 (120) 81 (324) 10 - 66 (38)
Net fee, commission and
other income (71) 4 (87) 293 (40) (132) (43) (11)
Total income (57) (116) (6) (31) (30) (132) 23 (49)
Operating costs (75) (82) (63) (97) (94) (60) (85) (152)
UK bank levy - - - (17) - - - -
Litigation and conduct 1 (5) - 1 (54) 1 (1) (3)
Total operating expenses (74) (87) (63) (113) (148) (59) (86) (155)
Other net income/(expenses) 6 (3) (8) 4 (10) 2 (18) 11
Loss before impairment (125) (206) (77) (140) (188) (189) (81) (193)
Credit impairment (charges)/releases (16) (2) (7) (13) (5) 9 8 (5)
Loss before tax (141) (208) (84) (153) (193) (180) (73) (198)
Attributable loss (105) (159) (80) (63) (173) (170) (292) (159)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Total assets 18.7 18.5 19.1 19.2 18.7 19.8 19.9 19.0
Risk weighted assets(1) 9.5 9.3 8.8 8.6 8.2 8.6 11.0 11.0
Period end allocated tangible
equity(1) 1.0 (1.5) 0.2 (0.2) (3.5) 1.1 3.6 5.5
Performance measures(1)
Average allocated tangible
equity (GBPbn) (0.4) (0.6) 0.2 (2.4) (0.4) 1.7 3.6 5.1
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Performance Management
Margins and balances
Nine months ended 30.09.23 Nine months ended 30.09.22
Average Average
Net interest customer Net interest Net interest customer Net interest
income assets margin income assets margin
GBPm GBPm % GBPm GBPm %
Barclays UK 4,856 206,338 3.15 4,293 206,308 2.78
Corporate and Investment
Bank 1,582 54,770 3.86 1,241 54,960 3.02
Consumer, Cards and Payments 2,718 42,674 8.52 2,061 37,481 7.35
Barclays International 4,300 97,444 5.90 3,302 92,441 4.78
Barclays Group 9,156 303,782 4.03 7,595 298,749 3.40
Other(1) 414 236
Total Barclays Group net
interest income 9,570 7,831
Other comprises net interest income from Markets within Barclays
1 International and Head Office including hedge accounting.
The Barclays Group NIM has increased 63bps from 3.40% in Q322 to
4.03% in Q323, driven by the higher interest rate environment and
continued structural hedge income momentum across the Group as well
as higher balances in CC&P including the Gap portfolio
acquisition, partially offset by product dynamics in deposits and
mortgages.
The Group's combined product and equity structural hedge
notional amount at September 2023 was GBP252bn (June 2023:
GBP256bn), with an average duration of close to 2.5 years (2022:
average duration close to 3 years). Gross structural hedge
contributions of GBP2,609m (Q322: GBP1,487m) and net structural
hedge contributions of GBP(5,964)m (Q322: GBP(361)m) are included
in Group net interest income. Gross structural hedge contributions
represent the absolute level of interest earned from the fixed
receipts on swaps in the structural hedge, while the net structural
hedge contributions represent the net interest earned on the
difference between the structural hedge rate and prevailing
floating rates.
Quarterly analysis
Q323 Q223 Q123 Q422 Q322
Net interest income GBPm GBPm GBPm GBPm GBPm
Barclays UK 1,578 1,660 1,618 1,600 1,561
Corporate and Investment Bank 491 540 551 556 529
Consumer, Cards and Payments 955 874 889 918 891
Barclays International 1,446 1,414 1,440 1,474 1,420
Barclays Group 3,024 3,074 3,058 3,074 2,981
Average customer assets GBPm GBPm GBPm GBPm GBPm
Barclays UK 205,693 207,073 206,241 204,941 205,881
Corporate and Investment Bank 53,290 54,417 56,612 59,146 58,891
Consumer, Cards and Payments 42,678 42,503 42,840 43,319 42,019
Barclays International 95,968 96,920 99,452 102,465 100,910
Barclays Group 301,661 303,993 305,693 307,406 306,791
Net interest margin %% %% %
Barclays UK 3.04 3.22 3.18 3.10 3.01
Corporate and Investment Bank 3.65 3.98 3.95 3.73 3.56
Consumer, Cards and Payments 8.88 8.25 8.42 8.40 8.41
Barclays International 5.98 5.85 5.87 5.71 5.58
Barclays Group 3.98 4.06 4.06 3.97 3.85
Credit Risk
Taskforce on Disclosures about Expected Credit Losses (DECL)
The latest DECL III Taskforce recommendation for the minimum
product groupings and geographical breakdown have been adopted in
the credit risk performance section for this period and the prior
period comparatives have been aligned accordingly. The Group
intends to adopt further enhancements in future periods.
Loans and advances at amortised cost by geography
Total loans and advances at amortised cost in the credit risk
performance section includes loans and advances at amortised cost
to banks and loans and advances at amortised cost to customers.
The table below presents a product and geographical breakdown by
stages of loans and advances at amortised cost. Also included are
stage allocation of debt securities and off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio as at 30 September
2023.
Impairment allowance under IFRS 9 considers both the drawn and
the undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to gross loans and advances to
the extent allowance does not exceed the drawn exposure and any
excess is reported on the liabilities side of the balance sheet as
a provision. For corporate portfolios, impairment allowance on
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
As at 30.09.23 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Retail mortgages 149,754 17,865 1,466 169,085 57 105 105 267
Retail credit cards 7,755 2,280 201 10,236 161 367 117 645
Retail other 6,913 1,171 305 8,389 58 133 155 346
Corporate loans(1) 54,223 8,744 1,759 64,726 193 211 361 765
Total UK 218,645 30,060 3,731 252,436 469 816 738 2,023
Retail mortgages 4,467 353 709 5,529 6 32 327 365
Retail credit cards 23,695 3,641 1,471 28,807 381 1,161 1,170 2,712
Retail other 3,175 349 263 3,787 20 36 88 144
Corporate loans 60,455 5,041 805 66,301 90 177 245 512
Total Rest of the
World 91,792 9,384 3,248 104,424 497 1,406 1,830 3,733
Total loans and
advances at amortised
cost 310,437 39,444 6,979 356,860 966 2,222 2,568 5,756
Debt securities 51,116 3,237 - 54,353 21 23 - 44
Total loans and
advances at amortised
cost including debt
securities 361,553 42,681 6,979 411,213 987 2,245 2,568 5,800
Off-balance sheet
loan commitments
and financial guarantee
contracts(2) 383,040 25,419 1,264 409,723 173 336 45 554
Total(3,4) 744,593 68,100 8,243 820,936 1,160 2,581 2,613 6,354
Net exposure Coverage ratio
Stage Stage Stage Stage Stage Stage
1 2 3 Total 1 2 3 Total
As at 30.09.23 GBPm GBPm GBPm GBPm %% %%
Retail mortgages 149,697 17,760 1,361 168,818 - 0.6 7.2 0.2
Retail credit cards 7,594 1,913 84 9,591 2.1 16.1 58.2 6.3
Retail other 6,855 1,038 150 8,043 0.8 11.4 50.8 4.1
Corporate loans(1) 54,030 8,533 1,398 63,961 0.4 2.4 20.5 1.2
Total UK 218,176 29,244 2,993 250,413 0.2 2.7 19.8 0.8
Retail mortgages 4,461 321 382 5,164 0.1 9.1 46.1 6.6
Retail credit cards 23,314 2,480 301 26,095 1.6 31.9 79.5 9.4
Retail other 3,155 313 175 3,643 0.6 10.3 33.5 3.8
Corporate loans 60,365 4,864 560 65,789 0.1 3.5 30.4 0.8
Total Rest of the
World 91,295 7,978 1,418 100,691 0.5 15.0 56.3 3.6
Total loans and
advances at amortised
cost 309,471 37,222 4,411 351,104 0.3 5.6 36.8 1.6
Debt securities 51,095 3,214 - 54,309 - 0.7 - 0.1
Total loans and
advances at amortised
cost including debt
securities 360,566 40,436 4,411 405,413 0.3 5.3 36.8 1.4
Off-balance sheet
loan commitments
and financial guarantee
contracts(2) 382,867 25,083 1,219 409,169 - 1.3 3.6 0.1
Total(3,4) 743,433 65,519 5,630 814,582 0.2 3.8 31.7 0.8
Includes Business Banking, which has a gross exposure of GBP15.9bn
1 and an impairment allowance of GBP445m. This comprises GBP110m
impairment allowance on GBP10.1bn Stage 1 exposure, GBP82m on GBP4.4bn
Stage 2 exposure and GBP253m on GBP1.4bn Stage 3 exposure. Excluding
this, total coverage for corporate loans in UK is 0.7%.
Excludes loan commitments and financial guarantees of GBP15.3bn
2 carried at fair value.
Other financial assets subject to impairment not included in the
3 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 GBP216.3bn and impairment
allowance of GBP165m. This comprises GBP20m impairment allowance
on GBP215.1bn Stage 1 exposure, GBP9m on GBP1.0bn Stage 2 exposure
and GBP136m on GBP147m Stage 3 exposure.
The annualised loan loss rate is 43bps after applying the total
4 impairment charge of GBP1,329m.
Gross exposure Impairment allowance
Stage Stage Stage Stage Stage Stage
1 2 3 Total 1 2 3 Total
As at 31.12.22 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Retail mortgages 145,821 17,735 1,481 165,037 21 49 58 128
Retail credit cards 7,119 2,569 251 9,939 127 493 137 757
Retail other 8,202 1,197 293 9,692 72 138 145 355
Corporate loans(1) 55,187 12,528 2,008 69,723 317 264 360 941
Total UK 216,329 34,029 4,033 254,391 537 944 700 2,181
Retail mortgages 7,851 465 933 9,249 8 24 356 388
Retail credit cards 22,669 3,880 1,129 27,678 331 1,127 818 2,276
Retail other 5,268 271 427 5,966 28 28 163 219
Corporate loans 56,704 4,290 564 61,558 144 160 182 486
Total Rest of the
World 92,492 8,906 3,053 104,451 511 1,339 1,519 3,369
Total loans and
advances at amortised
cost 308,821 42,935 7,086 358,842 1,048 2,283 2,219 5,550
Debt securities 41,724 3,805 - 45,529 9 33 - 42
Total loans and
advances at amortised
cost including debt
securities 350,545 46,740 7,086 404,371 1,057 2,316 2,219 5,592
Off-balance sheet
loan commitments
and financial guarantee
contracts(2) 372,945 30,694 1,180 404,819 245 315 23 583
Total(3,4) 723,490 77,434 8,266 809,190 1,302 2,631 2,242 6,175
Net exposure Coverage ratio
Stage Stage Stage Stage Stage Stage
1 2 3 Total 1 2 3 Total
As at 31.12.22 GBPm GBPm GBPm GBPm %% %%
Retail mortgages 145,800 17,686 1,423 164,909 - 0.3 3.9 0.1
Retail credit cards 6,992 2,076 114 9,182 1.8 19.2 54.6 7.6
Retail other 8,130 1,059 148 9,337 0.9 11.5 49.5 3.7
Corporate loans(1) 54,870 12,264 1,648 68,782 0.6 2.1 17.9 1.3
Total UK 215,792 33,085 3,333 252,210 0.2 2.8 17.4 0.9
Retail mortgages 7,843 441 577 8,861 0.1 5.2 38.2 4.2
Retail credit cards 22,338 2,753 311 25,402 1.5 29.0 72.5 8.2
Retail other 5,240 243 264 5,747 0.5 10.3 38.2 3.7
Corporate loans 56,560 4,130 382 61,072 0.3 3.7 32.3 0.8
Total Rest of the
World 91,981 7,567 1,534 101,082 0.6 15.0 49.8 3.2
Total loans and
advances at amortised
cost 307,773 40,652 4,867 353,292 0.3 5.3 31.3 1.5
Debt securities 41,715 3,772 - 45,487 - 0.9 - 0.1
Total loans and
advances at amortised
cost including debt
securities 349,488 44,424 4,867 398,779 0.3 5.0 31.3 1.4
Off-balance sheet
loan commitments
and financial guarantee
contracts(2) 372,700 30,379 1,157 404,236 0.1 1.0 1.9 0.1
Total(3,4) 722,188 74,803 6,024 803,015 0.2 3.4 27.1 0.8
Includes Business Banking, which has a gross exposure of GBP18.1bn
1 and an impairment allowance of GBP519m. This comprises GBP149m
impairment allowance on GBP10.5bn Stage 1 exposure, GBP121m on
GBP6.0bn Stage 2 exposure and GBP249m on GBP1.6bn Stage 3 exposure.
Excluding this, total coverage for corporate loans in UK is 0.8%.
Excludes loan commitments and financial guarantees of GBP14.9bn
2 carried at fair value.
Other financial assets subject to impairment not included in the
3 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 GBP180.1bn and impairment
allowance of GBP163m. This comprises GBP10m impairment allowance
on GBP178.4bn Stage 1 exposure, GBP9m on GBP1.5bn Stage 2 exposure
and GBP144m on GBP149m Stage 3 exposure.
The annualised loan loss rate is 30bps after applying the total
4 impairment charge of GBP1,220m.
Loans and advances at amortised cost by product
The table below presents a product breakdown by stages of loans
and advances at amortised cost. Also included is a breakdown of
Stage 2 past due balances.
Stage 2
<=30
As at Stage Not past days past >30 days Stage
30.09.23 1 due due past due Total 3 Total
Gross
exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Retail
mortgages 154,221 15,417 1,935 866 18,218 2,175 174,614
Retail
credit
cards 31,450 5,226 386 309 5,921 1,672 39,043
Retail
other 10,088 1,313 125 82 1,520 568 12,176
Corporate
loans 114,678 13,556 153 76 13,785 2,564 131,027
Total 310,437 35,512 2,599 1,333 39,444 6,979 356,860
Impairment
allowance
Retail
mortgages 63 92 23 22 137 432 632
Retail
credit
cards 542 1,180 158 190 1,528 1,287 3,357
Retail
other 78 121 21 27 169 243 490
Corporate
loans 283 367 13 8 388 606 1,277
Total 966 1,760 215 247 2,222 2,568 5,756
Net
exposure
Retail
mortgages 154,158 15,325 1,912 844 18,081 1,743 173,982
Retail
credit
cards 30,908 4,046 228 119 4,393 385 35,686
Retail
other 10,010 1,192 104 55 1,351 325 11,686
Corporate
loans 114,395 13,189 140 68 13,397 1,958 129,750
Total 309,471 33,752 2,384 1,086 37,222 4,411 351,104
Coverage %% %% %% %
ratio
Retail
mortgages - 0.6 1.2 2.5 0.8 19.9 0.4
Retail
credit
cards 1.7 22.6 40.9 61.5 25.8 77.0 8.6
Retail
other 0.8 9.2 16.8 32.9 11.1 42.8 4.0
Corporate
loans 0.2 2.7 8.5 10.5 2.8 23.6 1.0
Total 0.3 5.0 8.3 18.5 5.6 36.8 1.6
As at
31.12.22
Gross GBPm GBPm GBPm GBPm GBPm GBPm GBPm
exposure
Retail
mortgages 153,672 15,990 1,684 526 18,200 2,414 174,286
Retail
credit
cards 29,788 5,731 284 434 6,449 1,380 37,617
Retail
other 13,470 1,232 104 132 1,468 720 15,658
Corporate
loans 111,891 16,552 159 107 16,818 2,572 131,281
Total 308,821 39,505 2,231 1,199 42,935 7,086 358,842
Impairment
allowance
Retail
mortgages 29 53 11 9 73 414 516
Retail
credit
cards 458 1,334 100 186 1,620 955 3,033
Retail
other 100 118 22 26 166 308 574
Corporate
loans 461 401 13 10 424 542 1,427
Total 1,048 1,906 146 231 2,283 2,219 5,550
Net
exposure
Retail
mortgages 153,643 15,937 1,673 517 18,127 2,000 173,770
Retail
credit
cards 29,330 4,397 184 248 4,829 425 34,584
Retail
other 13,370 1,114 82 106 1,302 412 15,084
Corporate
loans 111,430 16,151 146 97 16,394 2,030 129,854
Total 307,773 37,599 2,085 968 40,652 4,867 353,292
Coverage %% %% %% %
ratio
Retail
mortgages - 0.3 0.7 1.7 0.4 17.1 0.3
Retail
credit
cards 1.5 23.3 35.2 42.9 25.1 69.2 8.1
Retail
other 0.7 9.6 21.2 19.7 11.3 42.8 3.7
Corporate
loans 0.4 2.4 8.2 9.3 2.5 21.1 1.1
Total 0.3 4.8 6.5 19.3 5.3 31.3 1.5
Measurement uncertainty
Scenarios used to calculate the Group's ECL charge were
refreshed in Q323 with the Baseline scenario reflecting the latest
consensus macroeconomic forecasts available at the time of the
scenario refresh. In the Baseline scenario, although the outlook in
major economies has improved somewhat since last year, GDP growth
remains weak in the coming quarters and beyond, as tight monetary
policy continues to restrain growth. Consumer price inflation eases
over 2023 as base effects, supply chain pressures and lower energy
prices provide some downward pressure. UK and US unemployment rates
increase only gradually in the coming quarters, peaking at 4.5% in
Q424 and reaching 4.4% in Q324 respectively. Central banks continue
raising interest rates, with both the UK bank rate and the US
federal funds rate reaching their peaks at 6.0% and 5.5%
respectively during 2023.
The Downside 2 scenario is broadly aligned to the previous
scenario refresh. Inflation rates rise again as energy prices
suddenly surge again amid renewed geopolitical risks. Inflation
becomes entrenched and inflation expectations go up, contributing
to higher pressure on wage growth. Central banks are forced to
raise interest rates sharply with the UK bank rate reaching 8% and
the US federal funds rate peaking at 7%. Weakened businesses lay
off workers and consumers stop spending exacerbating the downward
stress. Unemployment peaks at 8.5% in the UK and 9.8% in the US.
Given already stretched valuations, the sharp increase in borrowing
costs sees house prices decrease significantly. In the Upside
scenarios, lower energy prices add downward pressure on prices
globally, while recovering labour force participation limits wage
growth. As a result of easing inflation, central banks lower
interest rates to support the economic recovery.
The methodology for estimating scenario probability weights
involves simulating a range of future paths for UK and US GDP using
historical data with the five scenarios mapped against the
distribution of these future paths. The median is centred around
the Baseline with scenarios further from the Baseline attracting a
lower weighting before the five weights are normalised to total
100%. The decrease in the Downside and Upside weightings and the
increase in the Baseline weighting reflected a closer alignment
between actual GDP and Baseline, increasing the expected likelihood
of the Baseline relative to the other scenarios. An improving
economic outlook moved the Baseline US GDP paths further from the
Downside scenarios, further reducing the Downside weights.
The economic uncertainty adjustments of GBP0.3bn (30 June 2023:
GBP0.3bn) have been applied as overlays to the modelled ECL output.
These adjustments consist of a customer and client uncertainty
provision of GBP0.3bn (30 June 2023: GBP0.2bn) which has been
applied to customers and clients considered most vulnerable to
affordability pressures, and a model uncertainty adjustment of
GBPnil (30 June 2023: GBP0.1bn).
The following tables show the key macroeconomic variables used
in the five scenarios (5 year annual paths) and the probability
weights applied to each scenario.
Macroeconomic variables used in the calculation of ECL
As at 30.09.23 2023 2024 2025 2026 2027
Baseline %% %% %
UK GDP(1) 0.4 0.4 1.4 2.0 2.0
UK unemployment(2) 4.1 4.4 4.3 4.5 4.8
UK HPI(3) (5.8) (2.7) 1.9 3.8 7.3
UK bank rate 5.1 5.9 5.2 4.7 4.4
US GDP(1) 2.0 0.9 1.7 1.8 1.8
US unemployment(4) 3.6 4.3 4.4 4.4 4.4
US HPI(5) 0.9 1.9 3.1 3.1 3.1
US federal funds rate 5.2 4.9 4.1 3.8 3.8
Downside 2
UK GDP(1) 0.2 (4.2) (2.1) 2.5 2.1
UK unemployment(2) 4.2 6.9 8.4 7.8 7.2
UK HPI(3) (6.4) (20.5) (17.9) (1.2) 10.2
UK bank rate 5.1 7.8 7.6 6.4 5.2
US GDP(1) 1.8 (3.9) (1.9) 2.6 2.3
US unemployment(4) 3.8 7.8 9.7 8.8 7.4
US HPI(5) 0.6 (4.2) (3.8) 0.7 5.2
US federal funds rate 5.3 6.9 6.8 5.4 4.4
Downside 1
UK GDP(1) 0.3 (1.9) (0.3) 2.2 2.0
UK unemployment(2) 4.1 5.7 6.3 6.2 6.0
UK HPI(3) (6.1) (11.9) (8.4) 1.3 8.8
UK bank rate 5.1 6.8 6.4 5.6 4.9
US GDP(1) 1.9 (1.5) (0.1) 2.2 2.1
US unemployment(4) 3.7 6.1 7.0 6.6 5.9
US HPI(5) 0.8 (1.2) (0.4) 1.9 4.2
US federal funds rate 5.3 5.9 5.3 4.8 4.1
Upside 2
UK GDP(1) 0.8 4.0 3.3 2.8 2.4
UK unemployment(2) 4.0 3.7 3.5 3.6 3.6
UK HPI(3) (3.2) 9.4 6.2 4.4 6.0
UK bank rate 4.7 3.6 2.6 2.5 2.5
US GDP(1) 2.3 3.9 3.2 2.8 2.8
US unemployment(4) 3.5 3.4 3.6 3.6 3.6
US HPI(5) 2.6 5.0 5.2 4.9 4.9
US federal funds rate 4.9 3.5 2.9 2.8 2.8
Upside 1
UK GDP(1) 0.6 2.2 2.4 2.4 2.2
UK unemployment(2) 4.1 4.0 3.9 4.0 4.2
UK HPI(3) (4.5) 3.2 4.0 4.1 6.6
UK bank rate 4.9 4.8 3.9 3.5 3.4
US GDP(1) 2.2 2.4 2.5 2.3 2.3
US unemployment(4) 3.6 3.9 4.0 4.0 4.0
US HPI(5) 1.7 3.5 4.1 4.0 4.0
US federal funds rate 5.1 4.3 3.6 3.4 3.3
Average Real GDP seasonally adjusted change in year.
1
Average UK unemployment rate 16-year+.
2
Change in year end UK HPI = Halifax All Houses, All Buyers index,
3 relative to prior year end.
Average US civilian unemployment rate 16-year+.
4
Change in year end US HPI = FHFA House Price Index, relative to
5 prior year end.
As at 30.06.23 2023 2024 2025 2026 2027
Baseline %% %% %
UK GDP(1) 0.3 0.9 1.6 1.8 1.9
UK unemployment(2) 4.1 4.4 4.2 4.2 4.2
UK HPI(3) (6.1) (1.3) 2.0 4.3 5.7
UK bank rate 4.8 4.6 3.9 3.8 3.5
US GDP(1) 1.1 0.7 2.0 2.0 2.0
US unemployment(4) 3.8 4.6 4.6 4.6 4.6
US HPI(5) (0.7) 3.6 2.4 2.7 2.7
US federal funds rate 5.0 3.7 3.0 2.8 3.0
Downside 2
UK GDP(1) (0.5) (5.0) (0.4) 2.5 1.9
UK unemployment(2) 4.4 7.8 8.3 7.7 7.1
UK HPI(3) (10.2) (20.5) (17.7) 5.6 8.2
UK bank rate 5.5 8.0 7.3 6.1 4.8
US GDP(1) 0.5 (4.8) (0.3) 2.8 2.1
US unemployment(4) 4.5 8.7 9.6 8.5 7.0
US HPI(5) (1.8) (3.7) (4.2) 2.6 4.8
US federal funds rate 5.7 7.0 6.5 5.1 4.2
Downside 1
UK GDP(1) (0.1) (2.1) 0.6 2.2 1.9
UK unemployment(2) 4.2 6.1 6.2 5.9 5.6
UK HPI(3) (8.1) (11.3) (8.2) 5.0 7.0
UK bank rate 5.2 6.1 5.6 4.8 4.1
US GDP(1) 0.8 (2.0) 0.8 2.4 2.0
US unemployment(4) 4.1 6.7 7.1 6.5 5.8
US HPI(5) (1.2) (0.1) (0.9) 2.7 3.8
US federal funds rate 5.2 4.9 4.5 4.3 3.8
Upside 2
UK GDP(1) 1.2 4.1 3.2 2.6 2.3
UK unemployment(2) 3.9 3.6 3.5 3.6 3.6
UK HPI(3) 0.4 10.6 4.8 4.2 3.8
UK bank rate 4.4 3.3 2.5 2.5 2.5
US GDP(1) 2.2 3.9 3.0 2.8 2.8
US unemployment(4) 3.4 3.5 3.6 3.6 3.6
US HPI(5) 2.5 5.5 4.6 4.5 4.5
US federal funds rate 4.7 3.2 2.2 2.0 2.0
Upside 1
UK GDP(1) 0.8 2.5 2.4 2.2 2.1
UK unemployment(2) 4.0 4.0 3.9 3.9 3.9
UK HPI(3) (2.9) 4.5 3.4 4.3 4.7
UK bank rate 4.6 4.0 3.1 3.0 3.0
US GDP(1) 1.6 2.3 2.5 2.4 2.4
US unemployment(4) 3.6 4.1 4.1 4.1 4.1
US HPI(5) 0.9 4.6 3.5 3.6 3.6
US federal funds rate 4.8 3.4 2.6 2.5 2.5
Average Real GDP seasonally adjusted change in year.
1
Average UK unemployment rate 16-year+.
2
Change in year end UK HPI = Halifax All Houses, All Buyers index,
3 relative to prior year end.
Average US civilian unemployment rate 16-year+.
4
Change in year end US HPI = FHFA House Price Index, relative to
5 prior year end.
As at 31.12.22 2022 2023 2024 2025 2026
Baseline %% %% %
UK GDP(1) 3.3 (0.8) 0.9 1.8 1.9
UK unemployment(2) 3.7 4.5 4.4 4.1 4.2
UK HPI(3) 8.4 (4.7) (1.7) 2.2 2.2
UK bank rate 1.8 4.4 4.1 3.8 3.4
US GDP(1) 1.8 0.5 1.2 1.5 1.5
US unemployment(4) 3.7 4.3 4.7 4.7 4.7
US HPI(5) 11.2 1.8 1.5 2.3 2.4
US federal funds rate 2.1 4.8 3.6 3.1 3.0
Downside 2
UK GDP(1) 3.3 (3.4) (3.8) 2.0 2.3
UK unemployment(2) 3.7 6.0 8.4 8.0 7.4
UK HPI(3) 8.4 (18.3) (18.8) (7.7) 8.2
UK bank rate 1.8 7.3 7.9 6.6 5.5
US GDP(1) 1.8 (2.7) (3.4) 2.0 2.6
US unemployment(4) 3.7 6.0 8.5 8.1 7.1
US HPI(5) 11.2 (3.1) (4.0) (1.9) 4.8
US federal funds rate 2.1 6.6 6.9 5.8 4.6
Downside 1
UK GDP(1) 3.3 (2.1) (1.5) 1.9 2.1
UK unemployment(2) 3.7 5.2 6.4 6.0 5.8
UK HPI(3) 8.4 (11.7) (10.6) (2.8) 5.2
UK bank rate 1.8 5.9 6.1 5.3 4.6
US GDP(1) 1.8 (1.1) (1.1) 1.7 2.1
US unemployment(4) 3.7 5.1 6.6 6.4 5.9
US HPI(5) 11.2 (0.7) (1.3) 0.2 3.6
US federal funds rate 2.1 5.8 5.4 4.4 3.9
Upside 2
UK GDP(1) 3.3 2.8 3.7 2.9 2.4
UK unemployment(2) 3.7 3.5 3.4 3.4 3.4
UK HPI(3) 8.4 8.7 7.5 4.4 4.2
UK bank rate 1.8 3.1 2.6 2.5 2.5
US GDP(1) 1.8 3.3 3.5 2.8 2.8
US unemployment(4) 3.7 3.3 3.3 3.3 3.3
US HPI(5) 11.2 5.8 5.1 4.5 4.5
US federal funds rate 2.1 3.6 2.9 2.8 2.8
Upside 1
UK GDP(1) 3.3 1.0 2.3 2.4 2.1
UK unemployment(2) 3.7 4.0 3.9 3.8 3.8
UK HPI(3) 8.4 1.8 2.9 3.3 3.2
UK bank rate 1.8 3.5 3.3 3.0 2.8
US GDP(1) 1.8 1.9 2.3 2.2 2.2
US unemployment(4) 3.7 3.8 4.0 4.0 4.0
US HPI(5) 11.2 3.8 3.3 3.4 3.4
US federal funds rate 2.1 3.9 3.4 3.0 3.0
Average Real GDP seasonally adjusted change in year.
1
Average UK unemployment rate 16-year+.
2
Change in year end UK HPI = Halifax All Houses, All Buyers index,
3 relative to prior year end.
Average US civilian unemployment rate 16-year+.
4
Change in year end US HPI = FHFA House Price Index, relative to
5 prior year end
Scenario
probability Upside Upside Downside Downside
weighting 2 1 Baseline 1 2
% % % % %
As at 30.09.23
Scenario
probability
weighting 12.3 24.4 41.5 15.1 6.7
As at 30.06.23
Scenario
probability
weighting 13.0 24.7 40.2 15.2 6.9
As at 31.12.22
Scenario
probability
weighting 10.9 23.1 39.4 17.6 9.0
Treasury and Capital Risk
Regulatory minimum requirements
Capital
The Group's Overall Capital Requirement for CET1 is 11.8%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 2.4% Pillar 2A requirement and a 0.9%
Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. Following the
Financial Policy Committee (FPC) announcement on 5 July 2022, the
UK CCyB increased from 1% to 2% with effect from 5 July 2023. The
buffer rates set by other national authorities for non-UK exposures
are not currently material.
The Group's Pillar 2A requirement as per the PRA's Individual
Capital Requirement is 4.3% of which at least 56.25% needs to be
met with CET1 capital, equating to 2.4% of RWAs. The Pillar 2A
requirement, based on a point in time assessment, has been set as a
proportion of RWAs and is subject to at least annual review.
The Group's CET1 target ratio of 13-14% takes into account
headroom above requirements which includes a confidential
institution-specific PRA buffer. The Group remains above its
minimum capital regulatory requirements including the PRA
buffer.
Leverage
The Group is subject to a UK leverage ratio requirement of 4.1%
. This comprises the 3.25% minimum requirement, a G-SII additional
leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical
leverage ratio buffer (CCLB) of 0.3%. The Group is also required to
disclose an average UK leverage ratio which is based on capital on
the last day of each month in the quarter and an exposure measure
for each day in the quarter.
MREL
The Group is required to meet the higher of: (i) two times the
sum of 8% Pillar 1 and 4.3% Pillar 2A equating to 24.7% of RWAs;
and (ii) 6.75% of leverage exposures. In addition, the higher of
regulatory capital and leverage buffers apply. CET1 capital cannot
be counted towards both MREL and the buffers, meaning that the
buffers, including the above mentioned confidential
institution-specific PRA buffer, will effectively be applied above
MREL requirements.
In the disclosures that follow, references to CRR, as amended by
CRR II, mean the capital regulatory requirements, as they form part
of domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended.
As at As at As at
Capital ratios(1,2) 30.09.23 30.06.23 31.12.22
CET1 14.0% 13.8% 13.9%
T1 17.5% 17.9% 17.9%
Total regulatory capital 20.0% 20.5% 20.8%
MREL ratio as a percentage of total RWAs 33.4% 32.9% 33.5%
Own funds and eligible liabilities GBPm GBPm GBPm
Total equity excluding non-controlling interests
per the balance sheet 68,315 67,669 68,292
Less: other equity instruments (recognised
as AT1 capital) (11,857) (13,759) (13,284)
Adjustment to retained earnings for foreseeable
ordinary share dividends (497) (622) (787)
Adjustment to retained earnings for foreseeable
repurchase of shares (223) - -
Adjustment to retained earnings for foreseeable
other equity coupons (45) (39) (37)
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1,630) (1,800) (1,726)
Goodwill and intangible assets (8,243) (8,584) (8,224)
Deferred tax assets that rely on future profitability
excluding temporary differences (1,480) (1,372) (1,500)
Fair value reserves related to gains or losses
on cash flow hedges 6,421 7,992 7,237
Excess of expected losses over impairment (292) (228) (119)
Gains or losses on liabilities at fair value
resulting from own credit (142) (116) (620)
Defined benefit pension fund assets (2,960) (2,995) (3,430)
Direct and indirect holdings by an institution
of own CET1 instruments (20) (20) (20)
Adjustment under IFRS 9 transitional arrangements 290 206 700
Other regulatory adjustments 321 308 396
CET1 capital 47,958 46,640 46,878
AT1 capital
Capital instruments and related share premium
accounts 11,857 13,759 13,284
Other regulatory adjustments and deductions (60) (60) (60)
AT1 capital 11,797 13,699 13,224
T1 capital 59,755 60,339 60,102
T2 capital
Capital instruments and related share premium
accounts 8,126 8,212 9,000
Qualifying T2 capital (including minority
interests) issued by subsidiaries 757 769 1,095
Credit risk adjustments (excess of impairment
over expected losses) 58 71 35
Other regulatory adjustments and deductions (160) (160) (160)
Total regulatory capital 68,536 69,231 70,072
Less : Ineligible T2 capital (including minority
interests) issued by subsidiaries (757) (769) (1,095)
Eligible liabilities 46,477 42,559 43,851
Total own funds and eligible liabilities(3) 114,256 111,021 112,828
Total RWAs 341,868 336,946 336,518
CET1, T1 and T2 capital, and RWAs are calculated applying the
1 transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering
of CRR II non-compliant capital instruments.
The fully loaded CET1 ratio, as is relevant for assessing against
2 the conversion trigger in Barclays PLC AT1 securities, was 13.9%,
with GBP47.7bn of CET1 capital and GBP341.8bn of RWAs calculated
without applying the transitional arrangements of the CRR as amended
by CRR II.
As at 30 September 2023, the Group's MREL requirement, excluding
3 the PRA buffer, was to hold GBP101.1bn of own funds and eligible
liabilities equating to 29.6% of RWAs. The Group remains above
its MREL regulatory requirement including the PRA buffer
Movement in CET1 capital Three
months Nine months
ended 30.09.23 ended 30.09.23
GBPm GBPm
Opening CET1 capital 46,640 46,878
Profit for the period attributable to equity holders 1,533 5,151
Own credit relating to derivative liabilities - 8
Ordinary share dividends paid and foreseen (298) (920)
Purchased and foreseeable share repurchase (750) (1,250)
Other equity coupons paid and foreseen (267) (774)
Increase in retained regulatory capital generated
from earnings 218 2,215
Net impact of share schemes 120 (36)
Fair value through other comprehensive income reserve (157) (82)
Currency translation reserve 810 (363)
Other reserves (16) (36)
Increase/(decrease) in other qualifying reserves 757 (517)
Pension remeasurements within reserves (51) (527)
Defined benefit pension fund asset deduction 35 470
Net impact of pensions (16) (57)
Additional value adjustments (PVA) 170 96
Goodwill and intangible assets 341 (19)
Deferred tax assets that rely on future profitability
excluding those arising from temporary differences (108) 20
Excess of expected loss over impairment (64) (173)
Adjustment under IFRS 9 transitional arrangements 84 (410)
Other regulatory adjustments (64) (75)
Increase/(decrease) in regulatory capital due to
adjustments and deductions 359 (561)
Closing CET1 capital 47,958 47,958
CET1 capital increased GBP1.1bn to GBP48.0bn (December 2022:
GBP46.9bn).
GBP5.2bn of capital generated from profit was partially offset
by distributions of GBP2.9bn comprising:
-- GBP1.3bn of share buybacks announced with FY22 and H123 results
-- GBP0.9bn of ordinary share dividend paid and foreseen reflecting
GBP0.4bn half year 2023 dividend paid and a GBP0.5bn accrual towards
FY23 dividend
-- GBP0.8bn of equity coupons paid and foreseen
Other significant movements in the period were:
-- GBP0.4bn decrease in the currency translation reserve driven by
the strengthening of GBP against USD since December 2022
-- GBP0.4bn decrease in IFRS 9 transitional relief primarily due to
the relief applied to the pre-2020 impairment charge reducing to
0% in 2023 from 25 % in 2022 and the relief applied to the post-2020
impairment charge reducing to 50% in 2023 from 75% in 2022.
RWAs by risk type and business
Counterparty credit Market Operational Total
Credit risk(1) risk Risk risk RWAs
Settlement
STD IRB STD IRB Risk CVA STD IMA
As at 30.09.23 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Barclays UK 11,731 49,928 160 - - 90 215 - 11,054 73,178
Corporate and
Investment Bank 38,869 69,467 17,983 21,784 123 3,108 17,542 23,253 27,093 219,222
Consumer, Cards
and Payments 28,613 3,987 191 51 - 42 2 535 6,527 39,948
Barclays
International 67,482 73,454 18,174 21,835 123 3,150 17,544 23,788 33,620 259,170
Head Office 4,116 6,213 - - - - - - (809) 9,520
Barclays Group 83,329 129,595 18,334 21,835 123 3,240 17,759 23,788 43,865 341,868
As at 30.06.23
Barclays UK 8,377 52,867 245 - - 124 374 - 11,054 73,041
Corporate and
Investment Bank 33,567 75,880 17,551 20,687 454 2,841 16,179 22,251 27,093 216,503
Consumer, Cards
and Payments 26,306 4,484 202 51 - 63 3 424 6,527 38,060
Barclays
International 59,873 80,364 17,753 20,738 454 2,904 16,182 22,675 33,620 254,563
Head Office 2,584 7,567 - - - - - - (809) 9,342
Barclays Group 70,834 140,798 17,998 20,738 454 3,028 16,556 22,675 43,865 336,946
As at 31.12.22
Barclays UK 6,836 54,752 167 - - 72 233 - 11,023 73,083
Corporate and
Investment Bank 35,738 75,413 16,814 21,449 80 3,093 13,716 22,497 27,064 215,864
Consumer, Cards
and Payments 27,882 3,773 214 46 - 61 - 388 6,559 38,923
Barclays
International 63,620 79,186 17,028 21,495 80 3,154 13,716 22,885 33,623 254,787
Head Office 2,636 6,843 - - - - - - (831) 8,648
Barclays Group 73,092 140,781 17,195 21,495 80 3,226 13,949 22,885 43,815 336,518
Credit risk RWAs of GBP9.8bn relating to deferred tax assets,
1 have been reclassified from IRB to STD with no impact to total
RWAs.
Movement analysis of RWAs Counterparty
Credit credit Market Operational Total
risk risk risk risk RWAs
GBPm GBPm GBPm GBPm GBPm
Opening RWAs (as at 31.12.22) 213,873 41,996 36,834 43,815 336,518
Book size (1,047) 1,901 4,749 50 5,653
Acquisitions and disposals 688 - - - 688
Book quality 1,466 (6) - - 1,460
Model updates (2,600) - - - (2,600)
Methodology and policy 2,740 583 - - 3,323
Foreign exchange movements(1) (2,196) (942) (36) - (3,174)
Total RWA movements (949) 1,536 4,713 50 5,350
Closing RWAs (as at 30.09.23) 212,924 43,532 41,547 43,865 341,868
Foreign exchange movements does not include the impact of foreign
1 exchange for modelled market risk or operational risk.
Overall RWAs increased GBP5.4bn to GBP341.9bn (December 2022:
GBP336.5bn).
Credit risk RWAs decreased GBP0.9bn:
-- A GBP1.0bn decrease in book size within CIB, partially offset by
higher credit card balances within CC&P
-- A GBP1.5bn increase in book quality RWAs primarily driven by changes
in risk parameters and HPI refresh within Barclays UK
-- A GBP2.6bn decrease in model updates primarily driven by capital
LGD model update for the mortgage portfolio to reflect the significant
decrease in repossession volume during and post the COVID pandemic
-- A GBP2.7bn increase in methodology and policy primarily driven
by the recalibration of the post model adjustment (PMA) introduced
to address the IRB roadmap changes.
-- A GBP2.2bn decrease as a result of foreign exchange movements primarily
due to the strengthening of GBP against USD since December 2022
Counterparty Credit risk RWAs increased GBP1.5bn:
-- A GBP1.9bn increase in book size primarily due to increased trading
activity within CIB since December 2022
Market risk RWAs increased GBP4.7bn:
-- A GBP4.7bn increase in book size primarily due to increased trading
activity within CIB since December 2022
As at As at As at
30.09.23 30.06.23 31.12.22
Leverage ratios(1,2) GBPm GBPm GBPm
UK leverage ratio(3) 5.0% 5.1% 5.3%
T1 capital 59,755 60,339 60,102
UK leverage exposure 1,202,417 1,183,703 1,129,973
Average UK leverage ratio 4.6% 4.8% 4.8%
Average T1 capital 58,661 60,176 60,865
Average UK leverage exposure 1,262,290 1,261,094 1,280,972
Capital and leverage measures are calculated applying the transitional
1 arrangements of the CRR as amended by CRR II.
Fully loaded UK leverage ratio was 4.9%, with GBP59.5bn of T1
2 capital and GBP1,202.1bn of leverage exposure. Fully loaded average
UK leverage ratio was 4.6% with GBP58.4bn of T1 capital and GBP1,262.0bn
of leverage exposure. Fully loaded UK leverage ratios are calculated
without applying the transitional arrangements of the CRR as amended
by CRR II.
Although the leverage ratio is expressed in terms of T1 capital,
3 75% of the minimum requirement as well as the G-SII ALRB and CCLB
must be covered solely with CET1 capital. The CET1 capital held
against the 0.53% G-SII ALRB was GBP6.3bn and against the 0.3%
CCLB was GBP3.6bn.
The UK leverage ratio decreased to 5.0% (December 2022: 5.3%)
primarily due to a GBP72.4bn increase in leverage exposure to
GBP1,202.4bn (December 2022: GBP1,130.0bn). This is largely driven
by increased trading activity within CIB since December 2022 .
Condensed Consolidated Financial Statements
Condensed consolidated income statement (unaudited)
Nine months Nine months
ended 30.09.23 ended 30.09.22
GBPm GBPm
Total income 19,780 19,155
Operating expenses excluding litigation and conduct (11,979) (11,209)
Litigation and conduct (32) (1,518)
Operating expenses (12,011) (12,727)
Other net income/(expenses) 7 (4)
Profit before impairment 7,776 6,424
Credit impairment charges (1,329) (722)
Profit before tax 6,447 5,702
Tax charge (1,257) (1,072)
Profit after tax 5,190 4,630
Attributable to:
Equity holders of the parent 4,385 3,987
Other equity instrument holders 766 620
Total equity holders of the parent 5,151 4,607
Non-controlling interests 39 23
Profit after tax 5,190 4,630
Earnings per share
Basic earnings per ordinary share 28.2p 24.2p
Condensed consolidated balance sheet (unaudited)
As at As at
30.09.23 31.12.22
Assets GBPm GBPm
Cash and balances at central banks 262,800 256,351
Cash collateral and settlement balances 140,844 112,597
Debt securities at amortised cost 54,309 45,487
Loans and advances at amortised cost to banks 11,534 10,015
Loans and advances at amortised cost to customers 339,570 343,277
Reverse repurchase agreements and other similar
secured lending 1,424 776
Trading portfolio assets 155,374 133,813
Financial assets at fair value through the income
statement 241,142 213,568
Derivative financial instruments 282,144 302,380
Financial assets at fair value through other comprehensive
income 72,638 65,062
Investments in associates and joint ventures 909 922
Goodwill and intangible assets 8,265 8,239
Current tax assets 109 385
Deferred tax assets 6,766 6,991
Other assets 13,893 13,836
Total assets 1,591,721 1,513,699
Liabilities
Deposits at amortised cost from banks 28,501 19,979
Deposits at amortised cost from customers 532,791 525,803
Cash collateral and settlement balances 129,032 96,927
Repurchase agreements and other similar secured
borrowing 41,254 27,052
Debt securities in issue 102,794 112,881
Subordinated liabilities 11,220 11,423
Trading portfolio liabilities 67,189 72,924
Financial liabilities designated at fair value 326,448 271,637
Derivative financial instruments 268,634 289,620
Current tax liabilities 734 580
Deferred tax liabilities 16 16
Other liabilities 14,133 15,597
Total liabilities 1,522,746 1,444,439
Equity
Called up share capital and share premium 4,257 4,373
Other reserves (2,124) (2,192)
Retained earnings 54,325 52,827
Shareholders' equity attributable to ordinary shareholders
of the parent 56,458 55,008
Other equity instruments 11,857 13,284
Total equity excluding non-controlling interests 68,315 68,292
Non-controlling interests 660 968
Total equity 68,975 69,260
Total liabilities and equity 1,591,721 1,513,699
Condensed consolidated statement of changes in equity (unaudited)
Called
up share
capital Other
and share equity Other Retained Non-controlling Total
premium instruments reserves earnings Total interests(1) equity
Nine months ended
30.09.2023 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance as at 1
January 2023 4,373 13,284 (2,192) 52,827 68,292 968 69,260
Profit after tax - 766 - 4,385 5,151 39 5,190
Currency translation
movements - - (363) - (363) - (363)
Fair value through
other comprehensive
income reserve - - (82) - (82) - (82)
Cash flow hedges - - 816 - 816 - 816
Retirement benefit
remeasurements - - - (527) (527) - (527)
Own credit - - (469) - (469) - (469)
Total comprehensive
income for the period - 766 (98) 3,858 4,526 39 4,565
Employee share schemes
and hedging thereof 52 - - 407 459 - 459
Issue and redemption
of other equity instruments - (1,426) - (41) (1,467) (312) (1,779)
Other equity instruments
coupons paid - (766) - - (766) - (766)
Vesting of employee
share schemes - - (2) (494) (496) - (496)
Dividends paid - - - (1,210) (1,210) (39) (1,249)
Repurchase of shares (168) - 168 (1,027) (1,027) - (1,027)
Other movements - (1) - 5 4 4 8
Balance as at 30
September 2023 4,257 11,857 (2,124) 54,325 68,315 660 68,975
Three months ended
30.09.2023 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance as at 1
July 2023 4,325 13,759 (4,457) 54,042 67,669 876 68,545
Profit after tax - 259 - 1,274 1,533 9 1,542
Currency translation
movements - - 810 - 810 - 810
Fair value through
other comprehensive
income reserve - - (157) - (157) - (157)
Cash flow hedges - - 1,571 - 1,571 - 1,571
Retirement benefit
remeasurements - - - (51) (51) - (51)
Own credit - - 25 - 25 - 25
Total comprehensive
income for the period - 259 2,249 1,223 3,731 9 3,740
Employee share schemes
and hedging thereof 14 - - 36 50 - 50
Issue and redemption
of other equity instruments - (1,926) - (33) (1,959) (219) (2,178)
Other equity instruments
coupons paid - (259) - - (259) - (259)
Vesting of employee
share schemes - - 2 (10) (8) - (8)
Dividends paid - - - (417) (417) (9) (426)
Repurchase of shares (82) - 82 (524) (524) - (524)
Other movements - 24 - 8 32 3 35
Balance as at 30
September 2023 4,257 11,857 (2,124) 54,325 68,315 660 68,975
As at As at
30.09.23 31.12.22
Other Reserves GBPm GBPm
Currency translation reserve 4,409 4,772
Fair value through other comprehensive income reserve (1,642) (1,560)
Cash flow hedging reserve (6,419) (7,235)
Own credit reserve (2) 467
Other reserves and treasury shares 1,530 1,364
Total (2,124) (2,192)
During Q323, a redemption notice was published related to the
1 9% Permanent Interest Bearing Capital Bonds, as a result of which
GBP40m was transferred from non-controlling interests to subordinated
liabilities ahead of redemption on 11 October 2023. This item is
presented within Issue and redemption of other equity instruments.
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 Total loans and advances at amortised cost divided
by total deposits at amortised cost.
Attributable profit Profit after tax attributable to ordinary shareholders
of the parent.
Period end tangible
equity refers to:
Period end tangible Shareholders' equity attributable to ordinary
shareholders' equity shareholders of the parent, adjusted for the deduction
(for Barclays Group) of intangible assets and goodwill
Period end allocated Allocated tangible equity is calculated as 13.5%
tangible equity (for (2022: 13.5%) of RWAs for each business, adjusted
businesses) for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions
the Barclays Group uses for capital planning purposes.
Head Office allocated tangible equity represents
the difference between the Barclays Group's tangible
shareholders' equity and the amounts allocated
to businesses.
Average tangible
equity refers to:
Average tangible Calculated as the average of the previous month's
shareholders' equity period end tangible shareholders' equity and the
(for Barclays Group) current month's period end tangible shareholders'
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 (for period end allocated tangible equity and the current
businesses) 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 tangible
equity (RoTE) refers
to:
Return on average Annualised Group attributable profit, as a proportion
tangible shareholders' of average tangible shareholders' equity. The
equity (for Barclays components of the calculation have been included
Group) on pages 41 to 42.
Return on average Annualised business attributable profit, as a
allocated tangible proportion of that business's average allocated
equity (for businesses) tangible equity. The components of the calculation
have been included on pages 41 to 43.
Operating expenses A measure of total operating expenses excluding
excluding litigation litigation and conduct charges.
and conduct
Operating costs A measure of total operating expenses excluding
litigation and conduct charges and UK bank levy.
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total impairment
charges divided by total gross loans and advances
held at amortised cost at the balance sheet date.
Net interest margin Annualised net interest income divided by the
sum of average customer assets. The components
of the calculation have been included on page
23.
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 44.
Performance measures Calculated by excluding the impact of the Over-issuance
excluding the impact of Securities from performance measures. The components
of the Over-issuance of the calculations have been included on page
of Securities 44.
Profit before impairment Calculated by excluding credit impairment charges
or releases from profit before tax.
Returns
Nine months ended 30.09.23
Corporate Consumer,
Barclays and Investment Cards and Barclays Barclays
UK Bank Payments International Head Office Group
Return on average
tangible equity GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit/(loss) 1,580 2,728 421 3,149 (344) 4,385
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average equity 14.0 31.7 6.2 37.9 3.6 55.5
Average goodwill and
intangibles (3.8) - (0.9) (0.9) (3.8) (8.5)
Average tangible
equity 10.2 31.7 5.3 37.0 (0.2) 47.0
Return on average
tangible equity 20.6% 11.5% 10.6% 11.4% n/m 12.5%
Nine months ended 30.09.22
Corporate Consumer,
Barclays and Investment Cards and Barclays Barclays
UK Bank Payments International Head Office Group
Return on average
tangible equity GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit/(loss) 1,403 2,910 309 3,219 (635) 3,987
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average equity 13.6 32.5 5.6 38.1 5.2 56.9
Average goodwill and
intangibles (3.6) - (0.9) (0.9) (3.6) (8.1)
Average tangible
equity 10.0 32.5 4.7 37.2 1.6 48.8
Return on average
tangible equity 18.7% 11.9% 8.9% 11.5% n/m 10.9%
Barclays Group
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
Return on average tangible
shareholders' equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit 1,274 1,328 1,783 1,036 1,512 1,071 1,404 1,079
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average shareholders'
equity 55.1 55.4 55.9 54.9 56.8 57.1 56.9 56.1
Average goodwill and
intangibles (8.6) (8.7) (8.3) (8.2) (8.2) (8.1) (8.1) (8.1)
Average tangible shareholders'
equity 46.5 46.7 47.6 46.7 48.6 49.0 48.8 48.0
Return on average tangible
shareholders' equity 11.0% 11.4% 15.0% 8.9% 12.5% 8.7% 11.5% 9.0%
Barclays UK
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421
Return on average allocated
tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit 531 534 515 474 549 458 396 420
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 14.0 14.2 13.9 13.7 13.5 13.6 13.7 13.6
Average goodwill and
intangibles (3.9) (4.0) (3.6) (3.5) (3.6) (3.6) (3.6) (3.6)
Average allocated tangible
equity 10.1 10.2 10.3 10.2 9.9 10.0 10.1 10.0
Return on average allocated
tangible equity 21.0% 20.9% 20.0% 18.7% 22.1% 18.4% 15.6% 16.8%
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Barclays International
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
Return on average allocated
tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit 848 953 1,348 625 1,136 783 1,300 818
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 37.6 38.0 38.1 39.9 40.1 38.2 36.0 33.8
Average goodwill and
intangibles (0.8) (0.9) (1.0) (1.0) (1.0) (0.9) (0.9) (0.9)
Average allocated tangible
equity 36.8 37.1 37.1 38.9 39.1 37.3 35.1 32.9
Return on average allocated
tangible equity 9.2% 10.3% 14.5% 6.4% 11.6% 8.4% 14.8% 9.9%
Corporate and Investment
Bank
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
Return on average allocated
tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit 721 798 1,209 454 1,015 579 1,316 695
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 31.5 31.8 31.8 33.7 34.0 32.7 30.8 28.7
Average goodwill and - - - - - - - -
intangibles
Average allocated tangible
equity 31.5 31.8 31.8 33.7 34.0 32.7 30.8 28.7
Return on average allocated
tangible equity 9.2% 10.0% 15.2% 5.4% 11.9% 7.1% 17.1% 9.7%
Consumer, Cards and Payments
Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421
Return on average allocated
tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit/(loss) 127 155 139 171 121 204 (16) 123
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 6.1 6.2 6.3 6.2 6.1 5.5 5.2 5.1
Average goodwill and
intangibles (0.8) (0.9) (1.0) (1.0) (1.0) (0.9) (0.9) (0.9)
Average allocated tangible
equity 5.3 5.3 5.3 5.2 5.1 4.6 4.3 4.2
Return on average allocated
tangible equity 9.6% 11.8% 10.5% 13.0% 9.5% 17.8% (1.5)% 11.7%
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Tangible net asset value per share As at As at As at
30.09.23 31.12.22 30.09.22
GBPm GBPm GBPm
Total equity excluding non-controlling interests 68,315 68,292 67,034
Other equity instruments (11,857) (13,284) (13,270)
Goodwill and intangibles (8,265) (8,239) (8,371)
Tangible shareholders' equity attributable
to ordinary shareholders of the parent 48,193 46,769 45,393
m m m
Shares in issue 15,239 15,871 15,888
p p p
Tangible net asset value per share 316 295 286
Performance measures excluding the impact of the Over-issuance of
Securities
Barclays Group Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421(1)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Statutory attributable profit 1,274 1,328 1,783 1,036 1,512 1,071 1,404 1,079
Net impact of the Over-issuance
of Securities - - - - 29 (341) (240) (38)
Attributable profit excluding
the impact of the Over-issuance
of Securities 1,274 1,328 1,783 1,036 1,483 1,412 1,644 1,117
Average tangible shareholders'
equity (GBPbn) 46.5 46.7 47.6 46.7 48.6 49.0 48.8 48.0
Return on average tangible
shareholders' equity excluding
the impact of the Over-issuance
of Securities 11.0% 11.4% 15.0% 8.9% 12.2% 11.5% 13.5% 9.3%
The comparative capital and financial metrics relating to Q421
1 have been restated to reflect the impact of the Over-issuance of
Securities.
Reconciliation of financial results excluding the impact of the
Over-issuance of Securities in the prior year
Three months ended 30.09.23 30.09.22
Excluding
Impact of impact of
the Over-issuance the Over-issuance
Statutory Statutory of Securities of Securities
GBPm GBPm GBPm GBPm % change
Income
Corporate and Investment
Bank 3,082 2,821 (466) 3,287 (6)
of which:
FICC 1,147 1,546 - 1,546 (26)
Equities 675 246 (466) 712 (5)
Global Markets 1,822 1,792 (466) 2,258 (19)
Total operating
expenses
Corporate and Investment
Bank (2,008) (1,545) 503 (2,048) 2
Nine months ended 30.09.23 30.09.22
Excluding
Impact of impact of
the Over-issuance the Over-issuance
Statutory Statutory of Securities of Securities
GBPm GBPm GBPm GBPm % change
Income
Corporate and Investment
Bank 10,220 10,792 292 10,500 (3)
of which:
FICC 4,121 4,719 - 4,719 (13)
Equities 1,942 2,709 292 2,417 (20)
Global Markets 6,063 7,428 292 7,136 (15)
Total operating
expenses
Corporate and Investment
Bank (6,192) (6,968) (966) (6,002) (3)
Notable Items Nine months ended Nine months ended
30.09.23 30.09.22
GBPm Profit before Attributable Profit before Attributable
tax profit tax profit
Statutory 6,447 4,385 5,702 3,987
Net impact from the Over-issuance
of Securities - - (674) (552)
Customer remediation costs
on legacy loan portfolios - - (282) (228)
Settlements in principle in
respect of industry-wide
devices investigations by
SEC and CFTC - - (165) (165)
Other litigation and conduct (32) (13) (105) (98)
Structural cost actions (119) (91) (78) (64)
Re-measurement of UK DTAs - - - (346)
Excluding the impact of notable
items 6,598 4,489 7,006 5,440
Three months ended Three months ended
30.09.23 30.09.22
GBPm Profit before Attributable Profit before Attributable
tax profit tax profit
Statutory 1,885 1,274 1,969 1,512
Net impact from the Over-issuance
of Securities - - 37 29
Customer remediation costs
on legacy loan portfolios - - (101) (81)
Other litigation and conduct - 9 (63) (60)
Structural cost actions (50) (38) (22) (18)
Excluding the impact of notable
items 1,935 1,303 2,118 1,642
The Group's management believes that the non-IFRS performance
measures excluding notable items, included in the table above,
provide valuable information to enable users of the financial
statements to assess the performance of the Group. The notable
items are separately identified within the Group's results
disclosures which, when excluded from Barclays' statutory
financials, provide an underlying profit and loss performance of
the Group and enables consistent comparison of performance from one
period to another.
These non-IFRS performance measures excluding notable items are
included as a reference point only and are not incorporated within
any of the key financial metrics used in our Group Targets, which
are measured on a statutory basis.
Shareholder Information
Results timetable(1) Date
2023 Full Year Results 20 February 2024
and Annual Report
% Change(3)
Exchange rates(2) 30.09.23 30.06.23 31.12.22 30.09.22 30.06.23 31.12.22 30.09.22
Period end - USD/GBP 1.22 1.27 1.21 1.12 (4)% 1% 9%
YTD average - USD/GBP 1.24 1.23 1.24 1.26 1% - (2)%
3 month average - USD/GBP 1.27 1.25 1.17 1.18 2% 9% 8%
Period end - EUR/GBP 1.15 1.16 1.13 1.14 (1)% 2% 1%
YTD average - EUR/GBP 1.15 1.14 1.17 1.18 1% (2)% (3)%
3 month average - EUR/GBP 1.16 1.15 1.15 1.17 1% 1% (1)%
Share price data
Barclays PLC (p) 158.94 153.38 158.52 144.30
Barclays PLC number of
shares (m)(4) 15,239 15,556 15,871 15,888
For further information
please contact
Investor relations Media relations
Marina Shchukina +44 Tom Hoskin +44 (0) 20 7116 4755
(0) 20 7116 2526
More information on Barclays can be found on our websi te: 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: +44 (0)371 384 2055 (UK and international telephone
number)(5) (.)
American Depositary
Receipts (ADRs)
EQ Shareowner Services
P.O. Box 64504
St. Paul, MN 55164-0504
United States of America
shareowneronline.com
Toll Free Number: +1
800-990-1135
Outside the US +1 651-453-2128
Delivery of ADR certificates
and overnight mail
EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota
Heights, MN 55120-4100, USA.
Note that these dates are provisional and subject to change.
1
The average rates shown above are derived from daily spot rates
2 during the year.
The change is the impact to GBP reported information.
3
The number of shares of 15,239m as at 30 September 2023 is different
4 from the 15,220m referenced in the 2 October 2023 announcement
entitled "Transaction in Own Shares" because the share buyback
transactions executed on 28 and 29 September 2023 did not settle
until 2 and 3 October 2023 respectively.
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October 24, 2023 02:05 ET (06:05 GMT)
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