Barclays Regulatory News (BARC)

COVID-19 support

Supporting our customers, clients, communities, and colleagues

·

Provided over 640k payment holidays to customers, c.£25bn of COVID-19 support to UK businesses1 and helped businesses and institutions access global capital markets including underwriting over £1tn of new issuance2 in Q220 and Q320. Also waived c.£100m of interest and fees to customers, and committed to a £100m COVID-19 Community Aid Package

Income

Diversified income streams with strong Q320 YTD CIB income offsetting challenges in Barclays UK and CC&P

Group income of £16.8bn up 3% versus prior year

·

Barclays International income of £12.4bn, up 11% versus prior year

-

Corporate and Investment Bank (CIB) income of £9.8bn, up 24% driven by strong Markets income reflecting wider spreads and market share gains3

-

Consumer, Cards and Payments (CC&P) income of £2.6bn, down 21% driven by lower balances, margin compression and reduced payments activity

·

Barclays UK income of £4.7bn down 12% versus prior year reflecting lower interest rates and unsecured lending balances, COVID-19 customer support actions and the removal of certain fees

Credit impairment charges

Increased impairment provisioning driving higher coverage ratios across portfolios

Group credit impairment charges increased to £4.3bn (Q319 YTD: £1.4bn) reflecting the impact from revised IFRS 9 scenarios and £0.7bn in respect of single name wholesale loan charges

·

Impairment coverage ratio for the unsecured consumer lending and wholesale portfolios increased to 12.2% (FY19: 8.1%) and 1.5% (FY19: 0.8%) respectively

Costs4

Improved cost: income ratio

Group operating expenses of £10.0bn down 1% versus prior year

·

Cost efficiencies and cost discipline contributed to positive cost: income jaws of 4% resulting in an improved cost: income ratio of 59% (Q319 YTD: 62%)

Capital, liquidity and TNAV

Strong capital and liquidity position

CET1 ratio of 14.6%, a YTD increase of 80bps

·

The increase over the first nine months of the year reflects profits, regulatory measures and cancellation of the full year 2019 dividend payment, partially offset by a YTD increase in Risk Weighted Assets (RWAs)

·

Headroom of 3.3% above Maximum Distributable Amount (MDA) hurdle of 11.3%5

·

The Group liquidity pool was £327bn (December 2019: £211bn) and the liquidity coverage ratio (LCR) was 181% (December 2019: 160%)

·

Tangible net asset value (TNAV) per share increased to 275p (December 2019: 262p)

Q320 performance

Q320 Barclays UK and CC&P income improved from Q220, whilst CIB remains strong year on year

Q320 Group profit before tax of £1.1bn (Q319: £0.2bn), resulting in a RoTE of 5.1% (Q319: (2.4%)) and EPS of 3.5p (Q319: (1.7p))

·

Q320 Group income of £5.2bn, down 6% versus prior year

·

Q320 Barclays International income of £3.8bn, up 1% versus prior year

-

Q320 CIB income of £2.9bn, up 11% versus prior year driven by a 29% increase in Markets income, but down 12% versus prior quarter

-

Q320 CC&P income of £0.9bn, down 23% versus prior year but up 26% versus prior quarter improved from the Q220 low point reflecting recovery in US cards spend, deposit repricing, UK merchant acquiring volumes, and the non-recurrence of a £100m valuation loss in Barclays' preference shares in Visa Inc.

·

Q320 Barclays UK income of £1.6bn, down 16% versus prior year but up 6% versus prior quarter improved from the Q220 low point with Q320 net interest margin (NIM) stable at 2.51% (Q220: 2.48%)

·

Q320 Group credit impairment charge of £0.6bn, up 32% versus prior year but down 63% versus prior quarter

·

Q320 Group operating expenses of £3.4bn4, up 3% versus prior year and 2% versus prior quarter

·

CET1 ratio of 14.6%, an increase of 40bps in Q320 mainly due to lower RWAs

1

Total payment holidays granted as at 30 September 2020, business lending and commercial paper issuance data as at 19 October 2020.

2

Across Equity and Debt Capital Markets.

3

Data source: Coalition, H120 Competitor Analysis. Market share represents Barclays share of the total industry Revenue Pool. Analysis is based on Barclays internal business structure and internal revenues.

4

Excluding litigation and conduct.

5

Barclays' MDA hurdle will fluctuate depending on the total RWAs at each reporting period and any future regulatory changes.

Outlook remains uncertain and subject to change depending on the evolution and persistence of the COVID-19 pandemic and the outcome of Brexit negotiations

Income

·

Certain headwinds to income in Barclays UK are expected to persist in 2021 including the low interest rate environment

·

The drivers of CC&P income are showing signs of recovery but the outlook remains uncertain

·

After a strong Q320 YTD CIB performance driven by Markets, the franchise is well positioned for the future

Impairment

·

Provided macroeconomic assumptions remain consistent with expectations, we expect the H220 impairment charge to be materially below that of H120 and it is likely that the full year 2021 impairment charge will be below that of 2020

Costs

·

The Group expects FY20 costs, excluding litigation and conduct, to be broadly flat versus FY19. However, the Group will be evaluating actions to reduce structural costs, which could result in additional charges, the timing and size of which remain to be determined

Capital

·

The Group remains in a strong capital position and is confident of its capital generation capacity over time, acknowledging likely headwinds to the CET1 ratio from procyclical effects on RWAs and reduced benefit from transitional relief on IFRS 9 impairment

·

The Board recognises the importance of capital returns to shareholders and will provide an update on its policy and dividends at FY20 results

Barclays Group results

for the nine months ended

30.09.20

30.09.19

£m

£m

% Change

Total income

16,825

16,331

3

Credit impairment charges

(4,346)

(1,389)

Net operating income

12,479

14,942

(16)

Operating expenses

(9,954)

(10,051)

1

Litigation and conduct

(106)

(1,682)

94

Total operating expenses

(10,060)

(11,733)

14

Other net income

-

51

Profit before tax

2,419

3,260

(26)

Tax charge

(441)

(814)

46

Profit after tax

1,978

2,446

(19)

Non-controlling interests

(41)

(38)

(8)

Other equity instrument holders

(631)

(628)

-

Attributable profit

1,306

1,780

(27)

Performance measures

Return on average tangible shareholders' equity

3.6%

5.1%

Average tangible shareholders' equity (£bn)

 48.5

 46.6

Cost: income ratio

60%

72%

Loan loss rate (bps)

164

53

Basic earnings per share

7.6p

10.4p

Dividend per share

-

3.0p

Performance measures excluding litigation and conduct1

Profit before tax

2,525

4,942

(49)

Attributable profit

1,378

3,391

(59)

Return on average tangible shareholders' equity

3.8%

9.7%

Cost: income ratio

59%

62%

Basic earnings per share

8.0p

19.7p

As at 30.09.20

As at 31.12.19

As at 30.09.19

Balance sheet and capital management2

£bn

£bn

£bn

Loans and advances at amortised cost

344.4

339.1

345.1

Deposits at amortised cost

494.6

415.8

420.6

Tangible net asset value per share

275p

262p

274p

Common equity tier 1 ratio

14.6%

13.8%

13.4%

Common equity tier 1 capital

45.5

40.8

41.9

Risk weighted assets

310.7

295.1

313.3

Average UK leverage ratio

5.1%

4.5%

4.6%

UK leverage ratio

5.2%

5.1%

4.8%

Funding and liquidity

Group liquidity pool (£bn)

327

211

226

Liquidity coverage ratio

181%

160%

151%

Loan: deposit ratio

70%

82%

82%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

2

Refer to pages 29 to 35 for further information on how capital, RWAs and leverage are calculated.

1

Total payment holidays granted as at 30 September 2020, business lending and commercial paper issuance data as at 19 October 2020.

2

The Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme programmes (together the CBILS programmes).

3

Across Equity and Debt Capital Markets.

4

Excluding litigation and conduct.

5

Data source: Coalition, H120 Competitor Analysis Market share represents Barclays share of the total industry Revenue Pool. Analysis is based on Barclays internal business structure and internal revenues.

·

Statutory RoTE was 3.6% (Q319 YTD: 5.1%) and statutory EPS was 7.6p (Q319 YTD: 10.4p)

·

Profit before tax was £2,419m (Q319 YTD: £3,260m). Excluding litigation and conduct, profit before tax was £2,525m (Q319 YTD: £4,942m), as positive operating leverage from a 3% increase in income and 1% reduction in operating expenses was offset by materially higher credit impairment charges

·

Pre-provision profits1 increased 9% to £6,871m, benefitting from the Group's diversified business model, as strong performance in CIB more than offset income headwinds in Barclays UK and CC&P

·

Total income increased 3% to £16,825m. Barclays UK income decreased 12%. Barclays International income increased 11%, with CIB income up 24% and CC&P income down 21%

·

Credit impairment charges increased to £4,346m (Q319 YTD: £1,389m). This increase was primarily driven by the impact from revised IFRS 9 scenarios (the "COVID-19 scenarios") reflecting forecast deterioration in macroeconomic variables (including a prolonged period of heightened UK and US unemployment), partially offset by the estimated impact of central bank, government and other support measures, and £746m in respect of single name wholesale loan charges in CIB

·

Operating expenses decreased 1% to £9,954m reflecting cost efficiencies and continued cost discipline in the current environment. The Group delivered positive cost: income jaws of 4% which resulted in the Group cost: income ratio, excluding litigation and conduct, reducing to 59% (Q319 YTD: 62%)

·

The effective tax rate was 18.2% (Q319 YTD: 25.0%). This reflects the tax benefit recognised for a re-measurement of UK deferred tax assets as a result of the UK corporation tax rate being maintained at 19%. The Group's effective tax rate for the full year is expected to be around 20%, excluding litigation and conduct

·

Attributable profit was £1,306m (Q319 YTD: £1,780m). Excluding litigation and conduct, attributable profit was £1,378m (Q319 YTD: £3,391m), generating a RoTE of 3.8% (Q319 YTD: 9.7%) and EPS of 8.0p (Q319 YTD: 19.7p)

·

Total assets increased to £1,422bn (December 2019: £1,140bn), primarily due to a £91bn increase in cash and balances at central banks, £67bn increase in derivative assets and £50bn increase in financial assets at fair value through the income statement. This is due to the low interest rate environment, increased client activity and the appreciation of period end USD against GBP

·

Loans and advances at amortised cost increased by £5bn to £344bn, which reflects the £9.7bn of lending under the government backed Bounce Back Loan Scheme (BBLS) and the CBILS which Barclays UK has provided to support businesses through the COVID-19 pandemic and £3.2bn of mortgage growth. This was partially offset by lower card balances

·

Deposits at amortised cost increased by £79bn to £495bn, primarily due to CIB clients increasing liquidity, lower consumer spending levels and precautionary balance build

·

TNAV per share increased to 275p (December 2019: 262p) reflecting 7.6p of statutory EPS and positive reserve movements, including retirement benefit re-measurements and currency translation reserves

·

Profit before tax, excluding litigation and conduct, was £300m (Q319 YTD: £1,899m). RoTE was 2.5% (Q319 YTD: 17.2%) reflecting a challenging operating environment and materially higher credit impairment charges

·

Total income decreased 12% to £4,721m. Net interest income reduced 11% to £3,917m with a NIM of 2.63% (Q319 YTD: 3.10%). Net fee, commission and other income decreased 18% to £804m

-

Personal Banking income decreased 11% to £2,627m, reflecting deposit margin compression, COVID-19 customer support actions, and lower unsecured lending balances, partially offset by deposit balance growth and transfer of Barclays Partner Finance (BPF) from Barclays International in Q220

-

Barclaycard Consumer UK income decreased 20% to £1,165m as reduced borrowing and spend levels by customers resulted in a lower level of interest earning lending (IEL) balances, as well as planned lower debt sales

-

Business Banking income decreased 6% to £929m due to deposit margin compression, lower transactional fee volumes as a result of COVID-19 and related customer support actions, partially offset by balance growth

·

Credit impairment charges increased to £1,297m (Q319 YTD: £522m) reflecting forecast deterioration in macroeconomic variables in the COVID-19 scenarios, partially offset by the estimated impact of central bank, government and other support measures. As at 30 September 2020, 30 and 90 day arrears rates in UK cards were 1.7% (Q319: 1.7%) and 0.8% (Q319: 0.8%) respectively

·

Operating expenses increased 5% to £3,136m as efficiency savings were more than offset by higher servicing and financial assistance costs, as well as the transfer of BPF and further investment

·

Loans and advances to customers at amortised cost increased 5% to £203.9bn predominantly through £9.7bn of BBLS and CBILS lending, £3.2bn of mortgage growth and the £2.2bn transfer of BPF, partially offset by £4.0bn lower UK cards balances

·

Customer deposits at amortised cost increased 13% to £232.0bn due to lower customer spending and precautionary balance build

·

RWAs increased to £76.2bn (December 2019: £74.9bn) driven by the transfer of BPF and growth in mortgages, partially offset by a reduction in consumer loans

1

Excluding litigation and conduct.

·

Profit before tax, excluding litigation and conduct, decreased 19% to £2,833m with a RoTE of 7.6% (Q319 YTD: 10.4%), reflecting a RoTE of 10.5% (Q319 YTD: 9.3%) in CIB and (9.9)% (Q319 YTD: 15.8%) in CC&P

·

Total income increased to £12,435m (Q319 YTD: £11,223m)

-

CIB income increased 24% to £9,838m

-

Markets income of £6,255m (Q319 YTD: £4,116m) was the best ever Q3 YTD on a comparable basis1 reflecting an increase in market share in the first half of the year2. FICC income increased 64% to £4,326m driven by strong performances in macro and credit, mainly reflecting wider spreads. Equities income increased 31% to £1,929m driven by derivatives and cash due to higher levels of client activity and volatility

-

Banking fees income increased 1% to £1,977m as a strong performance in equity and debt capital markets, representing the best ever Q3 YTD on a comparable basis for these businesses1, was offset by lower fee income in advisory which was impacted by a reduced fee pool3

-

Within Corporate, Transaction banking income decreased 6% to £1,202m as deposit balance growth was more than offset by margin compression. Corporate lending income decreased by 28% to £404m reflecting c.£210m of losses on fair value lending positions and on mark-to-market and carry costs on related hedges in Q320 YTD

-

CC&P income decreased 21% to £2,597m as the impacts of the COVID-19 pandemic resulted in lower balances on co-branded cards, margin compression and reduced payments activity. Q220 included a c.£100m valuation loss on Barclays' preference shares in Visa Inc. resulting from the Q220 Supreme Court ruling concerning charges paid by merchants

·

Credit impairment charges increased to £2,989m (Q319 YTD: £844m)

-

CIB credit impairment charges increased to £1,507m (Q319 YTD: £127m), reflecting £746m in respect of single name wholesale loan charges and the impact from updates to forecast macroeconomic variables, partially offset by the estimated impact of central bank, government and other support measures

-

CC&P credit impairment charges increased to £1,482m (Q319 YTD: £717m) reflecting the impact from updates to forecast macroeconomic variables, partially offset by the estimated impact of central bank, government and other support measures. As at 30 September 2020, 30 and 90 day arrears in US cards were 2.3% (Q319: 2.6%) and 1.1% (Q319: 1.3%) respectively

·

Operating expenses decreased 4% to £6,632m

-

CIB operating expenses decreased 2% to £5,086m due to cost efficiencies and discipline in the current environment

-

CC&P operating expenses decreased 11% to £1,546m reflecting cost efficiencies, lower marketing spend due to the impacts of the COVID-19 pandemic and transfer of BPF to Barclays UK in Q220

·

RWAs increased to £224.7bn (December 2019: £209.2bn) primarily due to increased market volatility, client activity and a reduction in credit quality within CIB, partially offset by lower CC&P balances

1

Period covering Q114 - Q320. Pre 2014 financials were not restated following re-segmentation in Q116.

2

Data source: Coalition, H120 Competitor Analysis. Market share represents Barclays share of the total industry Revenue Pool. Analysis is based on Barclays internal business structure and internal revenues.

3

Data source: Dealogic for the period covering 1 January to 30 September 2020.

·

Loss before tax, excluding litigation and conduct, was £608m (Q319 YTD: £465m)

·

Total income was an expense of £331m (Q319 YTD: £286m), which included treasury items and hedge accounting, mark-to-market losses on legacy investments and funding costs of legacy capital instruments, partially offset by the recognition of dividends on Barclays' stake in Absa Group Limited

·

Credit impairment charges increased to £60m (Q319 YTD: £23m) due to impacts from the COVID-19 scenarios on the Italian home loan portfolio, partially offset by the estimated impact of central bank, government and other support measures

·

Operating expenses were £186m (Q319 YTD: £155m), which included £73m of charitable donations from Barclays' COVID-19 Community Aid Package

·

Other net expenses were £31m (Q319 YTD: £1m), which included a fair value loss on an investment in an associate

·

RWAs decreased to £9.8bn (December 2019: £11.0bn) driven by the reduction in value of Barclays' stake in Absa Group Limited

·

The CET1 ratio increased to 14.6% (December 2019: 13.8%)

-

CET1 capital increased by £4.7bn to £45.5bn reflecting resilient capital generation through £6.3bn of profits after tax, excluding credit impairment charges and a £1.0bn increase due to the cancellation of the full year 2019 dividend. The CET1 capital increase also reflects new regulatory measures implemented in June 2020 for IFRS 9 transitional relief and prudent valuation

-

RWAs increased by £15.6bn to £310.7bn primarily due to higher market volatility and client activity within CIB as well as a reduction in credit quality, partially offset by lower consumer lending

·

The average UK leverage ratio increased to 5.1% (December 2019: 4.5%) primarily driven by the increase in CET1 capital. The average leverage exposure decreased by £32bn to £1,111bn (December 2019: £1,143bn) largely driven by the Prudential Regulation Authority's (PRA) early adoption of CRR II settlement netting

·

The liquidity pool was £327bn (December 2019: £211bn) and the LCR remained significantly above the 100% regulatory requirement at 181% (December 2019: 160%), equivalent to a surplus of £143bn (December 2019: £78bn). The increase in the liquidity pool, LCR and surplus is driven by a 19% growth in customer deposits and actions to maintain a prudent funding and liquidity position in the current environment

·

Wholesale funding outstanding, excluding repurchase agreements, was £175.3bn (December 2019: £147.1bn). The Group issued £6.6bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) during the year to date. The Group is well advanced in its MREL issuance plans, with a Barclays PLC MREL ratio of 32.8% as at 30 September 2020 (December 2019: 31.2%) relative to an estimated requirement (including requisite buffers) of c.29.9% by 1 January 2022

·

As at 30 September 2020, the Group held a provision of £300m relating to PPI. Since the provision increase to £1.4bn in Q319, 96% of the items outstanding as at 30 September 2019 have been resolved (including invalid items and claims from the Official Receiver with whom we reached an agreement in Q320). Observations from these resolved complaints continue to support the provision level

Income

·

Certain headwinds to income in Barclays UK are expected to persist in 2021 including the low interest rate environment

·

The drivers of CC&P income are showing signs of recovery but the outlook remains uncertain

·

After a strong Q320 YTD CIB performance driven by Markets, the franchise is well positioned for the future

Impairment

·

Provided macroeconomic assumptions remain consistent with expectations, we expect the H220 impairment charge to be materially below that of H120 and it is likely that the full year 2021 impairment charge will be below that of 2020

Costs

·

The Group expects FY20 costs, excluding litigation and conduct, to be broadly flat versus FY19. However, the Group will be evaluating actions to reduce structural costs, which could result in additional charges, the timing and size of which remain to be determined

Capital

·

The Group remains in a strong capital position and is confident of its capital generation capacity over time, acknowledging likely headwinds to the CET1 ratio from procyclical effects on RWAs and reduced benefit from transitional relief on IFRS 9 impairment

·

The Board recognises the importance of capital returns to shareholders and will provide an update on its policy and dividends at FY20 results

Targets

·

The Group continues to target a RoTE of >10%1 and cost: income ratio of

1

Excluding litigation and conduct.

Barclays UK

Nine months ended

Nine months ended

30.09.20

30.09.19

Income statement information

£m

£m

% Change

Net interest income

3,917

4,410

(11)

Net fee, commission and other income

804

984

(18)

Total income

4,721

5,394

(12)

Credit impairment charges

(1,297)

(522)

Net operating income

3,424

4,872

(30)

Operating expenses

(3,136)

(2,973)

(5)

Litigation and conduct

(36)

(1,524)

98

Total operating expenses

(3,172)

(4,497)

29

Other net income

12

-

Profit before tax

264

375

(30)

Attributable profit/(loss)

165

(157)

As at 30.09.20

As at 31.12.19

As at 30.09.19

Balance sheet information

£bn

£bn

£bn

Loans and advances to customers at amortised cost

203.9

193.7

193.2

Total assets

294.5

257.8

257.9

Customer deposits at amortised cost

232.0

205.5

203.3

Loan: deposit ratio

91%

96%

97%

Risk weighted assets

76.2

74.9

76.8

Period end allocated tangible equity

10.0

10.3

10.4

Nine months ended

Nine months ended

Performance measures

30.09.20

30.09.19

Return on average allocated tangible equity

2.2%

(2.0%)

Average allocated tangible equity (£bn)

10.2

10.4

Cost: income ratio

67%

83%

Loan loss rate (bps)

81

35

Net interest margin

2.63%

3.10%

Performance measures excluding litigation and conduct1

£m

£m

% Change

Profit before tax

300

1,899

(84)

Attributable profit

190

1,332

(86)

Return on average allocated tangible equity

2.5%

17.2%

Cost: income ratio

66%

55%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

Analysis of Barclays UK

Nine months ended

Nine months ended

30.09.20

30.09.19

Analysis of total income

£m

£m

% Change

Personal Banking

2,627

2,945

(11)

Barclaycard Consumer UK

1,165

1,459

(20)

Business Banking

929

990

(6)

Total income

4,721

5,394

(12)

Analysis of credit impairment charges

Personal Banking

(312)

(124)

Barclaycard Consumer UK

(803)

(364)

Business Banking

(182)

(34)

Total credit impairment charges

(1,297)

(522)

As at 30.09.20

As at 31.12.19

As at 30.09.19

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

Personal Banking

155.7

151.9

150.1

Barclaycard Consumer UK

10.7

14.7

14.9

Business Banking

37.5

27.1

28.2

Total loans and advances to customers at amortised cost

203.9

193.7

193.2

Analysis of customer deposits at amortised cost

Personal Banking

173.2

159.2

157.9

Barclaycard Consumer UK

0.1

-

-

Business Banking

58.7

46.3

45.4

Total customer deposits at amortised cost

232.0

205.5

203.3

Barclays International

Nine months ended

Nine months ended

30.09.20

30.09.19

Income statement information

£m

£m

% Change

Net interest income

2,668

2,976

(10)

Net trading income

5,548

3,270

70

Net fee, commission and other income

4,219

4,977

(15)

Total income

12,435

11,223

11

Credit impairment charges

(2,989)

(844)

Net operating income

9,446

10,379

(9)

Operating expenses

(6,632)

(6,923)

4

Litigation and conduct

(39)

(30)

(30)

Total operating expenses

(6,671)

(6,953)

4

Other net income

19

52

(63)

Profit before tax

2,794

3,478

(20)

Attributable profit

1,779

2,419

(26)

As at 30.09.20

As at 31.12.19

As at 30.09.19

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

128.0

132.8

138.1

Trading portfolio assets

122.3

113.3

119.4

Derivative financial instrument assets

295.9

228.9

286.0

Financial assets at fair value through the income statement

178.2

128.4

158.0

Cash collateral and settlement balances

121.8

79.4

112.5

Other assets

261.7

178.6

195.6

Total assets

1,107.9

861.4

1,009.6

Deposits at amortised cost

262.4

210.0

217.6

Derivative financial instrument liabilities

293.3

228.9

283.3

Loan: deposit ratio

49%

63%

63%

Risk weighted assets

224.7

209.2

223.1

Period end allocated tangible equity

30.5

29.6

31.4

Nine months ended

Nine months ended

Performance measures

30.09.20

30.09.19

Return on average allocated tangible equity

7.5%

10.3%

Average allocated tangible equity (£bn)

31.8

31.2

Cost: income ratio

54%

62%

Loan loss rate (bps)

300

80

Net interest margin

3.71%

4.00%

Performance measures excluding litigation and conduct1

£m

£m

% Change

Profit before tax

2,833

3,508

(19)

Attributable profit

1,808

2,445

(26)

Return on average allocated tangible equity

7.6%

10.4%

Cost: income ratio

53%

62%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

Analysis of Barclays International

Corporate and Investment Bank

Nine months ended

Nine months ended

30.09.20

30.09.19

Income statement information

£m

£m

% Change

FICC

4,326

2,638

64

Equities

1,929

1,478

31

Markets

6,255

4,116

52

Advisory

329

574

(43)

Equity capital markets

369

273

35

Debt capital markets

1,279

1,108

15

Banking fees

1,977

1,955

1

Corporate lending

404

563

(28)

Transaction banking

1,202

1,283

(6)

Corporate

1,606

1,846

(13)

Total income

9,838

7,917

24

Credit impairment charges

(1,507)

(127)

Net operating income

8,331

7,790

7

Operating expenses

(5,086)

(5,191)

2

Litigation and conduct

(6)

(30)

80

Total operating expenses

(5,092)

(5,221)

2

Other net income

4

27

(85)

Profit before tax

3,243

2,596

25

Attributable profit

2,141

1,787

20

As at 30.09.20

As at 31.12.19

As at 30.09.19

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

96.8

92.0

95.8

Trading portfolio assets

122.2

113.3

119.3

Derivative financial instrument assets

295.9

228.8

286.0

Financial assets at fair value through the income statement

177.9

127.7

157.3

Cash collateral and settlement balances

121.0

78.5

111.6

Other assets

228.9

155.3

171.5

Total assets

1,042.7

795.6

941.5

Deposits at amortised cost

195.6

146.2

152.1

Derivative financial instrument liabilities

293.2

228.9

283.2

Risk weighted assets

193.3

171.5

184.9

Nine months ended

Nine months ended

Performance measures

30.09.20

30.09.19

Return on average allocated tangible equity

10.5%

9.2%

Average allocated tangible equity (£bn)

27.2

25.9

Cost: income ratio

52%

66%

Performance measures excluding litigation and conduct1

£m

£m

% Change

Profit before tax

3,249

2,626

24

Attributable profit

2,145

1,813

18

Return on average allocated tangible equity

10.5%

9.3%

Cost: income ratio

52%

66%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

Analysis of Barclays International

Consumer, Cards and Payments

Nine months ended

Nine months ended

30.09.20

30.09.19

Income statement information

£m

£m

% Change

Net interest income

1,694

2,105

(20)

Net fee, commission, trading and other income

903

1,201

(25)

Total income

2,597

3,306

(21)

Credit impairment charges

(1,482)

(717)

Net operating income

1,115

2,589

(57)

Operating expenses

(1,546)

(1,732)

11

Litigation and conduct

(33)

-

Total operating expenses

(1,579)

(1,732)

9

Other net income

15

25

(40)

(Loss)/profit before tax

(449)

882

Attributable (loss)/profit

(362)

632

As at 30.09.20

As at 31.12.19

As at 30.09.19

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

31.2

40.8

42.3

Total assets

65.2

65.8

68.1

Deposits at amortised cost

66.8

63.8

65.5

Risk weighted assets

31.4

37.7

38.2

Nine months ended

Nine months ended

Performance measures

30.09.20

30.09.19

Return on average allocated tangible equity

(10.6%)

15.8%

Average allocated tangible equity (£bn)

4.6

5.3

Cost: income ratio

61%

52%

Loan loss rate (bps)

577

213

Performance measures excluding litigation and conduct1

£m

£m

% Change

(Loss)/profit before tax

(416)

882

Attributable (loss)/profit

(337)

632

Return on average allocated tangible equity

(9.9%)

15.8%

Cost: income ratio

60%

52%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

Head Office

Nine months ended

Nine months ended

30.09.20

30.09.19

Income statement information

£m

£m

% Change

Net interest income

(307)

(323)

5

Net fee, commission and other income

(24)

37

Total income

(331)

(286)

(16)

Credit impairment charges

(60)

(23)

Net operating income

(391)

(309)

(27)

Operating expenses

(186)

(155)

(20)

Litigation and conduct

(31)

(128)

76

Total operating expenses

(217)

(283)

23

Other net expenses

(31)

(1)

Loss before tax

(639)

(593)

(8)

Attributable loss

(638)

(482)

(32)

As at 30.09.20

As at 31.12.19

As at 30.09.19

Balance sheet information

£bn

£bn

£bn

Total assets

19.3

21.0

22.9

Risk weighted assets

9.8

11.0

13.4

Period end allocated tangible equity

7.1

5.6

5.5

Nine months ended

Nine months ended

Performance measures

30.09.20

30.09.19

Average allocated tangible equity (£bn)

6.5

5.0

Performance measures excluding litigation and conduct1

£m

£m

% Change

Loss before tax

(608)

(465)

(31)

Attributable loss

(620)

(386)

(61)

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

Barclays Group

Q320

Q220

Q120

Q419

Q319

Q219

Q119

Q418

Income statement information

£m

£m

£m

£m

£m

£m

£m

£m

Net interest income

2,055

1,892

2,331

2,344

2,445

2,360

2,258

2,296

Net fee, commission and other income

3,149

3,446

3,952

2,957

3,096

3,178

2,994

2,777

Total income

5,204

5,338

6,283

5,301

5,541

5,538

5,252

5,073

Credit impairment charges

(608)

(1,623)

(2,115)

(523)

(461)

(480)

(448)

(643)

Net operating income

4,596

3,715

4,168

4,778

5,080

5,058

4,804

4,430

Operating costs

(3,391)

(3,310)

(3,253)

(3,308)

(3,293)

(3,501)

(3,257)

(3,624)

UK bank levy

-

-

-

(226)

-

-

-

(269)

Operating expenses

(3,391)

(3,310)

(3,253)

(3,534)

(3,293)

(3,501)

(3,257)

(3,893)

Guaranteed Minimum Pensions (GMP) charge

-

-

-

-

-

-

-

(140)

Litigation and conduct

(76)

(20)

(10)

(167)

(1,568)

(53)

(61)

(60)

Total operating expenses

(3,467)

(3,330)

(3,263)

(3,701)

(4,861)

(3,554)

(3,318)

(4,093)

Other net income/(expenses)

18

(26)

8

20

27

27

(3)

37

Profit before tax

1,147

359

913

1,097

246

1,531

1,483

374

Tax charge

(328)

(42)

(71)

(189)

(269)

(297)

(248)

(75)

Profit/(loss) after tax

819

317

842

908

(23)

1,234

1,235

299

Non-controlling interests

(4)

(21)

(16)

(42)

(4)

(17)

(17)

(83)

Other equity instrument holders

(204)

(206)

(221)

(185)

(265)

(183)

(180)

(230)

Attributable profit/(loss)

611

90

605

681

(292)

1,034

1,038

(14)

Performance measures

Return on average tangible shareholders' equity

5.1%

0.7%

5.1%

5.9%

(2.4%)

9.0%

9.2%

(0.1%)

Average tangible shareholders' equity (£bn)

48.3

50.2

47.0

46.4

48.4

46.2

45.2

44.3

Cost: income ratio

67%

62%

52%

70%

88%

64%

63%

81%

Loan loss rate (bps)

69

179

223

60

52

56

54

77

Basic earnings/(loss) per share

3.5p

0.5p

3.5p

3.9p

(1.7p)

6.0p

6.1p

(0.1p)

Performance measures excluding litigation and conduct1

£m

£m

£m

£m

£m

£m

£m

£m

Profit before tax

1,223

379

923

1,264

1,814

1,584

1,544

434

Attributable profit

668

106

604

803

1,233

1,074

1,084

48

Return on average tangible shareholders' equity

5.5%

0.8%

5.1%

6.9%

10.2%

9.3%

9.6%

0.4%

Cost: income ratio

65%

62%

52%

67%

59%

63%

62%

79%

Basic earnings per share

3.9p

0.6p

3.5p

4.7p

7.2p

6.3p

6.3p

0.3p

Balance sheet and capital management2

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Loans and advances at amortised cost

344.4

354.9

374.1

339.1

345.1

339.3

330.7

326.4

Total assets

1,421.7

1,385.1

1,444.3

1,140.2

1,290.4

1,232.8

1,193.5

1,133.3

Deposits at amortised cost

494.6

466.9

470.7

415.8

420.6

413.6

412.7

394.8

Tangible net asset value per share

275p

284p

284p

262p

274p

275p

266p

262p

Common equity tier 1 ratio

14.6%

14.2%

13.1%

13.8%

13.4%

13.4%

13.0%

13.2%

Common equity tier 1 capital

45.5

45.4

42.5

40.8

41.9

42.9

41.4

41.1

Risk weighted assets

310.7

319.0

325.6

295.1

313.3

319.1

319.7

311.9

Average UK leverage ratio

5.1%

4.7%

4.5%

4.5%

4.6%

4.7%

4.6%

4.5%

Average UK leverage exposure

1,111.1

1,148.7

1,176.2

1,142.8

1,171.2

1,134.6

1,105.5

1,110.0

UK leverage ratio

5.2%

5.2%

4.5%

5.1%

4.8%

5.1%

4.9%

5.1%

UK leverage exposure

1,095.1

1,071.1

1,178.7

1,007.7

1,099.8

1,079.4

1,065.0

998.6

Funding and liquidity

Group liquidity (£bn)

327

298

237

211

226

238

232

227

Liquidity coverage ratio

181%

186%

155%

160%

151%

156%

160%

169%

Loan: deposit ratio

70%

76%

79%

82%

82%

82%

80%

83%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

2

Refer to pages 29 to 35 for further information on how capital, RWAs and leverage are calculated.

Barclays UK

Q320

Q220

Q120

Q419

Q319

Q219

Q119

Q418

Income statement information

£m

£m

£m

£m

£m

£m

£m

£m

Net interest income

1,280

1,225

1,412

1,478

1,503

1,438

1,469

1,513

Net fee, commission and other income

270

242

292

481

343

333

308

350

Total income

1,550

1,467

1,704

1,959

1,846

1,771

1,777

1,863

Credit impairment charges

(233)

(583)

(481)

(190)

(101)

(230)

(191)

(296)

Net operating income

1,317

884

1,223

1,769

1,745

1,541

1,586

1,567

Operating costs

(1,095)

(1,018)

(1,023)

(1,023)

(952)

(1,022)

(999)

(1,114)

UK bank levy

-

-

-

(41)

-

-

-

(46)

Operating expenses

(1,095)

(1,018)

(1,023)

(1,064)

(952)

(1,022)

(999)

(1,160)

Litigation and conduct

(25)

(6)

(5)

(58)

(1,480)

(41)

(3)

(15)

Total operating expenses

(1,120)

(1,024)

(1,028)

(1,122)

(2,432)

(1,063)

(1,002)

(1,175)

Other net (expenses)/income

(1)

13

-

-

-

(1)

1

(2)

Profit/(loss) before tax

196

(127)

195

647

(687)

477

585

390

Attributable profit/loss

113

(123)

175

438

(907)

328

422

241

Balance sheet information

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Loans and advances to customers at amortised cost

203.9

202.0

195.7

193.7

193.2

189.1

187.5

187.6

Total assets

294.5

287.6

267.5

257.8

257.9

259.0

253.1

249.7

Customer deposits at amortised cost

232.0

225.7

207.5

205.5

203.3

200.9

197.3

197.3

Loan: deposit ratio

91%

92%

96%

96%

97%

97%

96%

96%

Risk weighted assets

76.2

77.9

77.7

74.9

76.8

76.2

76.6

75.2

Period end allocated tangible equity

10.0

10.3

10.3

10.3

10.4

10.3

10.5

10.2

Performance measures

Return on average allocated tangible equity

4.5%

(4.8%)

6.9%

17.0%

(34.9%)

12.7%

16.3%

9.6%

Average allocated tangible equity (£bn)

10.1

10.3

10.1

10.3

10.4

10.3

10.4

10.1

Cost: income ratio

72%

70%

60%

57%

132%

60%

56%

63%

Loan loss rate (bps)

43

111

96

38

20

47

40

61

Net interest margin

2.51%

2.48%

2.91%

3.03%

3.10%

3.05%

3.18%

3.20%

Performance measures excluding litigation and conduct1

£m

£m

£m

£m

£m

£m

£m

£m

Profit/(loss) before tax

221

(121)

200

705

793

518

588

405

Attributable profit/(loss)

130

(118)

178

481

550

358

424

253

Return on average allocated tangible equity

5.2%

(4.6%)

7.0%

18.7%

21.2%

13.9%

16.4%

10.1%

Cost: income ratio

71%

69%

60%

54%

52%

58%

56%

62%

1

Refer to pages 40 to 49 for further information and calculations of performance measures excluding litigation and conduct.

Analysis of Barclays UK

Q320

Q220

Q120

Q419

Q319

Q219

Q119

Q418

Analysis of total income

£m

£m

£m

£m

£m

£m

£m

£m

Personal Banking

833

826

968

1,064

1,035

946

964

998

Barclaycard Consumer UK

362

367

436

533

472

497

490

522

Business Banking

355

274

300

362

339

328

323

343

Total income

1,550

1,467

1,704

1,959

1,846

1,771

1,777

1,863

Analysis of credit impairment (charges)/releases

Personal Banking

(48)

(130)

(134)

(71)

(36)

(36)

(52)

(44)

Barclaycard Consumer UK

(106)

(396)

(301)

(108)

(49)

(175)

(140)

(250)

Business Banking

(79)

(57)

(46)

(11)

(16)

(19)

1

(2)

Total credit impairment charges

(233)

(583)

(481)

(190)

(101)

(230)

(191)

(296)

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

£bn