Barclays Regulatory News (BARC)

C. S. Venkatakrishnan, Group Chief Executive, commented

"A strong Q1 performance demonstrated Barclays' ability to deliver broad-based income growth across all operating businesses. Group income was up 10% to £6.5bn, alongside profit before tax of £2.2bn and a RoTE of 11.5%. Our performance includes the relevant costs1 relating to the over-issuance of securities in the US and customer remediation of a legacy loan portfolio. Our income growth was driven partly by Global Markets, which has been helping clients navigate ongoing market volatility caused by geopolitical and economic challenges including the devastating war in Ukraine, and by the impact of higher interest rates in the US and UK.

We remain focused on the impact higher prices are having on our customers and our small business and corporate clients, all of whom are facing far harder conditions this year as a result of inflation, supply chain issues and higher energy costs. We will support them through this difficult period wherever we can, and support the wider economy just as we did through the COVID-19 pandemic.

Our diversified income streams, focus on costs and a Common Equity Tier 1 (CET1) ratio of 13.8% provide a strong platform to deliver our target of a greater than 10% RoTE for 2022. We remain focused on our three strategic priorities as the year progresses: delivering next-generation, digitised consumer financial services, producing sustainable growth in the Corporate and Investment Bank (CIB), and capturing opportunities as we transition to a low-carbon economy."

Income

Cost: income ratio

Profit before tax

RoTE

EPS

CET1

ratio

TNAV per share

Q122

£6.5bn

63%

£2.2bn

11.5%

8.4p

13.8%

294p

·

Attributable profit was £1.4bn (Q121: £1.7bn) including litigation and conduct charges net of tax of £0.4bn

·

Group income was £6.5bn (Q121: £5.9bn) up 10% year-on-year

-

Strong CIB income: strong FICC and Equities performance with higher levels of activity as we supported our clients through a period of market volatility, more than offsetting weaker Investment Banking fees driven by a reduced fee pool2

-

Consumer and payments businesses recovering: robust UK mortgage lending, positive trends in UK and US consumer spending and payments volumes, and tailwind from rising rates

·

Costs impacted by litigation and conduct charges: total operating expenses of £4.1bn (Q121: £3.6bn) included litigation and conduct charges of £0.5bn relating to the over-issuance of securities by Barclays Bank PLC in the US and customer remediation costs relating to a legacy loan portfolio

-

Group costs excluding litigation and conduct were £3.6bn, up 1% year-on-year

·

Credit impairment charges: £0.1bn charge (Q121: £0.1bn) driven by low delinquencies and a benign credit environment, with unsecured lending provision levels remaining appropriate in light of inflationary headwinds

·

Capital: CET1 ratio of 13.8% (December 2021: 15.1%) and tangible net asset value (TNAV) per share of 294p (December 2021: 291p)

·

Returns: Barclays continues to target a RoTE of greater than 10% in 2022

·

Income: Barclays' diversified income streams position the Group well for the current economic and market environment and rising interest rates

·

Costs: given £0.5bn of litigation and conduct charges in Q122 and current expectations for inflation and performance costs, Barclays now expects FY22 total operating expenses to be around £15.0bn3

·

Impairment: acknowledging geopolitical uncertainty and cost of living pressures, the impairment charge is expected to remain below pre-pandemic levels in coming quarters given reduced unsecured lending balances and appropriate coverage ratios

·

Capital: Barclays continues to target a CET1 ratio within the range of 13-14%

·

Capital returns: Barclays' capital distribution policy incorporates a progressive ordinary dividend, supplemented as appropriate, including with share buybacks. Barclays remains committed to the share buyback programme and the intention would be to launch it as soon as practicable following resolution of filing requirements being reached with the SEC and the appropriate 20-F filings having been made. See Supplementary Information on pages 30 to 31 for further details

1

To reflect the over-issuance of US securities under the Barclays Bank PLC US Shelf, 2021 comparatives have been restated. See Basis of preparation on page 31 for further details.

2

Data source: Dealogic for the period covering 1 January to 31 March 2022.

3

Group cost outlook is based on an average USD/GBP FX rate of 1.31 during 2022 and subject to foreign currency movements.

Barclays Group results

for the three months ended

31.03.22

31.03.211

£m

£m

% Change

Net interest income

2,341

1,851

26

Net fee, commission and other income

4,155

4,049

3

Total income

6,496

5,900

10

Credit impairment charges

(141)

(55)

Net operating income

6,355

5,845

9

Operating costs

(3,588)

(3,545)

(1)

Litigation and conduct

(523)

(33)

Total operating expenses

(4,111)

(3,578)

(15)

Other net (expenses)/income

(10)

132

Profit before tax]

2,234

2,399

(7)

Tax charge

(614)

(496)

(24)

Profit after tax

1,620

1,903

(15)

Non-controlling interests

(1)

(4)

75

Other equity instrument holders

(215)

(195)

(10)

Attributable profit

1,404

1,704

(18)

Performance measures

Return on average tangible shareholders' equity

11.5%

14.7%

Average tangible shareholders' equity (£bn)

48.8

46.5

Cost: income ratio

63%

61%

Loan loss rate (bps)

15

6

Basic earnings per share

8.4p

9.9p

Basic weighted average number of shares (m)

16,682

17,293

(4)

Period end number of shares (m)

16,762

17,223

(3)

As at 31.03.22

Restated2

As at 31.12.21

As at 31.03.21

Balance sheet and capital management

£bn

£bn

£bn

Loans and advances at amortised cost

371.7

361.5

345.8

Loans and advances at amortised cost impairment coverage ratio

1.5%

1.6%

2.2%

Total assets

1,496.1

1,384.3

1,379.7

Deposits at amortised cost

546.5

519.4

498.8

Tangible net asset value per share

294p

291p

267p

Common equity tier 1 ratio

13.8%

15.1%

14.6%

Common equity tier 1 capital

45.3

47.3

45.9

Risk weighted assets

328.8

314.1

313.4

UK leverage ratio

5.0%

5.2%

5.0%

UK leverage exposure

1,123.5

1,137.9

1,145.4

Average UK leverage ratio

4.8%

4.9%

4.9%

Average UK leverage exposure

1,179.4

1,229.0

1,174.9

Funding and liquidity

Group liquidity pool (£bn)

320

291

290

Liquidity coverage ratio

159%

168%

161%

Loan: deposit ratio

68%

70%

69%

1

The income statement comparatives for Q121 are not impacted by the over-issuance of US securities under the Barclays Bank PLC US Shelf. See Basis of preparation on page 31 for further details.

2

31 December 2021 financial and capital metrics have been restated to reflect the over-issuance of US securities under the Barclays Bank PLC US Shelf. See Basis of preparation on page 31 for further details.

·

Barclays' diversified model delivered a profit before tax of £2,234m (Q121: £2,399m), RoTE of 11.5% (Q121: 14.7%), and earnings per share (EPS) of 8.4p (Q121: 9.9p)

·

Total income increased to £6,496m (Q121: £5,900m). Barclays UK income increased 5%. Barclays International income increased 10%, with CIB income up 10% and Consumer, Cards and Payments (CC&P) income up 10%

·

Credit impairment charges of £141m (Q121: £55m) were driven by ongoing flows to delinquency in unsecured lending. Coverage levels remained materially in line with Q421 and were considered appropriate having been assessed against rising inflation and affordability headwinds

·

Total operating expenses increased to £4,111m (Q121: £3,578m) due to litigation and conduct charges of £523m including a provision in CIB of £320m (post-tax impact of £240m) relating to the over-issuance of securities by Barclays Bank PLC in the US and higher customer remediation costs relating to a legacy loan portfolio in CC&P. This resulted in a cost: income ratio of 63% (Q121: 61%). Costs excluding litigation and conduct increased 1% to £3,588m, reflecting continued investment and business growth, partially offset by lower performance costs and efficiency savings

·

The effective tax rate (ETR) was 27.5% (Q121: 20.7%). The tax charge included a £346m charge recognised for the re-measurement of the Group's UK deferred tax assets (DTAs) due to the enactment of legislation in Q122 which will result in the UK banking surcharge rate being reduced from 8% to 3% effective from 1 April 2023 (the ETR excluding the impact of this downward re-measurement of UK DTAs was 12.0%). Tax credits relating to adjustments in respect of prior years partially offset the impact of the downward UK DTA re-measurement

·

Attributable profit was £1,404m (Q121: £1,704m) including litigation and conduct charges net of tax of £405m

·

Total assets increased to £1,496bn (December 2021: £1,384bn) primarily due to an increase in client and trading activity, and growth in the liquidity pool

·

TNAV per share increased to 294p (December 2021: 291p1) primarily reflecting 8.4p of EPS, partially offset by net negative reserve movements driven by higher interest rates

·

Profit before tax increased to £594m (Q121: £460m). RoTE was 15.6% (Q121: 12.0%) reflecting the resilience of the business which is well positioned within the current UK operating environment

·

Total income increased 5% to £1,649m. Net interest income increased 5% to £1,339m with a net interest margin of 2.62% (Q121: 2.54%) primarily driven by the rising interest rate environment in the UK. Net fee, commission and other income increased 5% to £310m

-

Personal Banking income increased 11% to £1,022m, driven by rising interest rates and supported by the benefit of strong 2021 mortgage origination

-

Barclaycard Consumer UK income decreased 12% to £276m as higher transaction based revenues from improved customer spend volumes were more than offset by lower interest earning lending (IEL) balances. Lower IEL balances were impacted by higher customer repayments and reduced borrowing

-

Business Banking income increased 4% to £351m driven by rising interest rates alongside improved transaction based revenues, partially offset by lower government scheme lending income as repayments continue

·

Credit impairment charges decreased 38% to £48m reflecting lower unsecured lending balances and lower delinquency rates. As at 31 March 2022, 30 and 90 day arrears rates in UK cards were 1.0% (Q121: 1.6%) and 0.3% (Q121: 0.8%) respectively. The credit card and consumer loan businesses maintain appropriate provision levels in light of emerging affordability headwinds, as reflected in a total coverage ratio of 10.6% (December 2021: 10.9%)

·

Total operating expenses decreased 3% to £1,007m driven by lower operational costs and efficiency savings, partially offset by increased investment spend

·

Loans and advances to customers at amortised cost decreased 1% in the quarter to £207.3bn as £1.0bn of mortgage growth was more than offset by a £2.3bn decrease in Business Banking balances due to the repayment of government scheme lending and the yield curve impact from rising interest rates on the Education, Social Housing and Local Authority portfolio carrying value

·

Customer deposits at amortised cost remained broadly stable at £260.3bn, maintaining a strong loan: deposit ratio of 85% (December 2021: 85%)

·

RWAs remained stable at £72.7bn (December 2021: £72.3bn)

1

31 December 2021 financial and capital metrics have been restated to reflect the over-issuance of US securities under the Barclays Bank PLC US Shelf. See Basis of preparation on page 31 for further details.

·

Profit before tax decreased 13% to £1,713m with a RoTE of 14.8% (Q121: 17.7%), reflecting a RoTE of 17.1% (Q121: 17.9%) in CIB and (1.5)% (Q121: 16.5%) in CC&P

·

Total income increased to £4,824m (Q121: £4,399m)

-

CIB income increased 10% to £3,938m reflecting the benefit of a diversified business model

-

Global Markets income increased 26% to £2,696m driven by strong performances in FICC and Equities, reflecting higher levels of activity as we supported our clients through a period of market volatility. FICC income increased 37% to £1,644m, mainly in macro, and Equities income increased 13% to £1,052m driven by derivatives

-

Investment Banking fees income decreased 25% to £648m due to the reduced fee pool, particularly in Equity capital markets1, and a strong prior year comparative

-

Within Corporate, Transaction banking income increased 19% to £469m driven by deposit balance growth, improved margins and higher payments volumes. Corporate lending income decreased 39% to £125m due to higher costs of hedging and credit protection

-

CC&P income increased 10% to £886m

-

International Cards and Consumer Bank income was stable at £538m as higher average cards balances were offset by higher customer acquisition costs

-

Private Bank income increased 20% to £214m, reflecting client balance growth and improved margins

-

Unified Payments income increased 44% to £134m driven by turnover growth following the easing of lockdown restrictions in the past year

·

Credit impairment charges were £101m (Q121: £22m net release) reflecting a continued benign credit environment

-

CIB credit impairment net release of £33m (Q121: £43m net release) was driven by improvements in the portfolio and limited material single name wholesale loan charges

-

CC&P credit impairment charges increased to £134m (Q121: £21m charge) driven by higher unsecured lending balances in US cards. As at 31 March 2022, 30 and 90 day arrears in US cards were 1.6% (Q121: 2.1%) and 0.8% (Q121: 1.2%) respectively. The US cards business continues to maintain appropriate provision levels in light of potential emerging affordability headwinds, as reflected in a total coverage ratio of 10.4% (December 2021: 10.6%)

·

Total operating expenses increased 23% to £3,018m

-

CIB total operating expenses increased 19% to £2,239m primarily driven by a £320m provision relating to the expected losses resulting from a rescission offer to repurchase certain securities issuances identified as being in excess of the registered amount. Operating costs increased 2% to £1,921m as investment in talent, systems and technology were partially offset by lower performance costs

-

CC&P total operating expenses increased 36% to £779m driven by £195m of litigation and conduct costs, including a provision for higher customer remediation costs relating to a legacy loan portfolio, and higher investment spend reflecting an increase in marketing and costs for existing and new partnerships

·

RWAs increased to £245.1bn (December 2021: £230.9bn) resulting from regulatory changes that took effect from 1 January 2022, increased client and trading activity within CIB and an increase in respect of short-term hedging arrangements designed to manage the risks of the rescission offer

·

Loss before tax was £73m (Q121: £32m)

·

Total income was £23m (Q121: £75m expense) which included a one-off gain of £86m from the sale and leaseback of UK data centres, partially offset by hedge accounting, funding costs on legacy capital instruments and treasury items

·

Total operating expenses were £86m (Q121: £80m)

·

Other net income was an expense of £18m (Q121: £123m income) driven by a fair value loss in Barclays associate investment holding in the Business Growth Fund

·

RWAs were £11.0bn (December 2021: £11.0bn)

1

Data source: Dealogic for the period covering 1 January to 31 March 2022.

·

The CET1 ratio decreased by 130bps to 13.8% (December 2021: 15.1%) as capital decreased by £2.1bn to £45.3bn and RWAs increased by £14.7bn to £328.8bn

-

The expected impact of regulatory change on 1 January 2022 reduced the CET1 ratio by c80bps as CET1 capital decreased £1.7bn and RWAs increased £6.6bn with a further c30bps reduction due to the £1bn buyback announced with FY21 results

-

The impact of the over-issuance of securities in the US reduced the CET1 ratio by c20bps due to a £0.2bn (post-tax) increase to the provision reducing CET1 capital and a £2.8bn increase in RWAs reflecting the short-term hedging arrangements designed to manage the risk of the rescission offer

-

Excluding the above impacts there was an increase to the CET1 ratio as CET1 capital increased by £0.9bn reflecting profits (excluding the increase in provision for the over-issuance of securities in the US), an accrual toward a FY22 dividend, equity coupons paid, and an increased deduction for prudent valuation adjustments (PVA). This was largely offset by an RWA increase of £5.3bn primarily due to increased client and trading activity within the CIB

·

The UK leverage ratio decreased to 5.0% (December 2021: 5.2%) primarily due to the decrease in CET1 capital and the £1bn redemption of Additional Tier 1 (AT1) instruments partially offset by a decrease in the leverage exposure of £14.4bn to £1,123.5bn (December 2021: £1,137.9bn)

·

The liquidity pool was £320bn (December 2021: £291bn) and the liquidity coverage ratio remained significantly above the 100% regulatory requirement at 159% (December 2021: 168%), equivalent to a surplus of £115bn (December 2021: £116bn). The increase in the pool was driven by deposit growth and an increase in wholesale funding, which were partly offset by an increase in business funding consumption

·

Wholesale funding outstanding, excluding repurchase agreements, was £178.1bn (December 2021: £167.5bn). The Group issued £1.4bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) during the year. The Group has a strong MREL position with a ratio of 31.2% of RWAs which is in excess of its regulatory requirement of 28.9%

·

Over-issuance of US securities under the Barclays Bank PLC US Shelf: as per Barclays' RNS announcement on 28 March 2022, Barclays has commissioned a review by external counsel of the facts and circumstances relating to the matter and is assisting regulators with their inquiries and requests for information. Barclays Bank PLC has elected to make a rescission offer to certain purchasers of the affected securities issued in excess of the registered amount, which is expected to commence during the second quarter of 2022. Barclays remains committed to its structured products business in the US and expects Barclays Bank PLC to file a new shelf registration statement with the SEC, and resume issuance of structured notes, during the second quarter of 2022. The final cost of any rescission offer will be impacted by prevailing market conditions at the date of that offer. Hedges have been put in place to minimise this volatility, but the final impact may differ from the provision reflected at Q122. For further details, please refer to Supplementary Information on pages 30 to 31

·

Legacy loan portfolio: a customer remediation provision of £181m has been recognised in relation to a legacy timeshare loan portfolio brokered by Azure Services Limited (ASL). The provision represents the best estimate as at Q122. Barclays continues to review complaints regarding legacy partner finance loans, however it is not currently possible to predict the outcome of this review

·

Absa sale: on 21 April 2022, Barclays sold 63m ordinary shares in Absa Group Limited (7.4% of Absa's issued share capital) at a price of ZAR 164.0 per share, raising aggregate gross sale proceeds of ZAR 10.3bn (£516m2). The sale is expected to result in an increase of approximately 10 basis points to Barclays' CET1 ratio in the second quarter of 2022 primarily due to reduced capital deductions and RWAs, partially offset by a loss on sale of £42m through the income statement

·

Pensions: during 2019 and 2020, the UK Retirement Fund (UKRF), the Group's main pension scheme, subscribed for non-transferable listed senior fixed rate notes for £1.25bn. As a result of these transactions, the CET1 impact of the UKRF was deferred until 2023, 2024 and 2025 upon maturity of the notes. Following the PRA's statement on 13 April 2022, Barclays is planning to unwind these transactions and to agree the terms and timing of this unwind with the UKRF Trustee as part of the next triennial actuarial valuation as at 30 September 2022. Upon unwind, this would result in a c30bps reduction to the CET1 ratio potentially being accelerated to Q422 from 2023, 2024 and 2025. As at 31 March 2022, the UKRF was in an accounting surplus of £4.4bn on an IAS 19 basis and as at 30 September 2021 was in a funding surplus of £0.6bn. There may also be a pension related reduction in Pillar 2A requirements in 2022 which could partially mitigate the impact of the unwind on the Group surplus capital position

1

31 December 2021 financial and capital metrics have been restated to reflect the over-issuance of US securities under the Barclays Bank PLC US Shelf. See Basis of preparation on page 31 for further details.

2

Exchange rate GBP/ZAR 20.04 as of 21 April 2022.

·

Barclays is committed to maintaining an appropriate balance between delivering attractive total cash returns to shareholders, investment in the business and maintaining a strong capital position. 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 dividends as appropriate, including with share buybacks

·

In its 28 March 2022 announcement, Barclays indicated that its previously announced £1bn share buyback programme was expected to commence in Q222 following the publication of Q1 results. Barclays' Q1 performance, including a profit before tax of £2.2bn, a RoTE of 11.5% and a CET1 ratio of 13.8% continues to provide a strong platform for returning capital through the previously announced buyback programme. Due to the ongoing discussions with the SEC regarding the potential restatement of the 2021 financial statements included in Barclays PLC's Form 20-F filed with the SEC, Barclays believes that it is prudent to delay the commencement of the buyback programme until those discussions have been concluded. Barclays remains committed to the share buyback programme and the intention would be to launch it as soon as practicable following resolution of filing requirements being reached with the SEC and the appropriate 20-F filings having been made. For further details regarding discussions with the SEC, see Supplementary Information on pages 30 to 31

·

Returns: RoTE of greater than 10%

·

Cost efficiency: cost: income ratio below 60%

·

Capital adequacy: CET1 ratio in the range of 13-14%

Barclays UK

Three months ended

Three months ended

31.03.22

31.03.21

Income statement information

£m

£m

% Change

Net interest income

1,339

1,281

5

Net fee, commission and other income

310

295

5

Total income

1,649

1,576

5

Credit impairment charges

(48)

(77)

38

Net operating income

1,601

1,499

7

Operating costs

(998)

(1,036)

4

Litigation and conduct

(9)

(3)

Total operating expenses

(1,007)

(1,039)

3

Other net income

-

-

Profit before tax

594

460

29

Attributable profit

396

298

33

As at 31.03.22

As at 31.12.21

As at 31.03.21

Balance sheet information

£bn

£bn

£bn

Loans and advances to customers at amortised cost

207.3

208.8

205.7

Total assets

317.2

321.2

309.1

Customer deposits at amortised cost

260.3

260.6

247.5

Loan: deposit ratio

85%

85%

88%

Risk weighted assets

72.7

72.3

72.7

Period end allocated tangible equity

10.1

10.0

10.0

Three months ended

Three months ended

Performance measures

31.03.22

31.03.21

Return on average allocated tangible equity

15.6%

12.0%

Average allocated tangible equity (£bn)

10.1

9.9

Cost: income ratio

61%

66%

Loan loss rate (bps)

9

14

Net interest margin

2.62%

2.54%

Analysis of Barclays UK

Three months ended

Three months ended

31.03.22

31.03.21

Analysis of total income

£m

£m

% Change

Personal Banking

1,022

923

11

Barclaycard Consumer UK

276

315

(12)

Business Banking

351

338

4

Total income

1,649

1,576

5

Analysis of credit impairment charges

Personal Banking

21

(22)

Barclaycard Consumer UK

(44)

(36)

(22)

Business Banking

(25)

(19)

(32)

Total credit impairment charges

(48)

(77)

38

As at 31.03.22

As at 31.12.21

As at 31.03.21

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

Personal Banking

166.5

165.4

160.4

Barclaycard Consumer UK

8.4

8.7

8.7

Business Banking

32.4

34.7

36.6

Total loans and advances to customers at amortised cost

207.3

208.8

205.7

Analysis of customer deposits at amortised cost

Personal Banking

196.6

196.4

186.0

Barclaycard Consumer UK

-

-

0.1

Business Banking

63.7

64.2

61.4

Total customer deposits at amortised cost

260.3

260.6

247.5

Barclays International

Three months ended

Three months ended1

31.03.22

31.03.21

Income statement information

£m

£m

% Change

Net interest income

936

748

25

Net trading income

2,446

1,934

26

Net fee, commission and other income

1,442

1,717

(16)

Total income

4,824

4,399

10

Credit impairment (charges)/releases

(101)

22

Net operating income

4,723

4,421

7

Operating costs

(2,505)

(2,438)

(3)

Litigation and conduct

(513)

(21)

Total operating expenses

(3,018)

(2,459)

(23)

Other net income

8

9

(11)

Profit before tax

1,713

1,971

(13)

Attributable profit

1,300

1,431

(9)

As at 31.03.22

As at 31.12.21

As at 31.03.21

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

144.8

133.8

123.5

Trading portfolio assets

134.1

146.9

131.1

Derivative financial instrument assets

288.8

261.5

269.4

Financial assets at fair value through the income statement

203.8

188.2

197.5

Cash collateral and settlement balances

132.0

88.1

109.7

Other assets

255.5

225.6

221.7

Total assets

1,159.0

1,044.1

1,052.9

Deposits at amortised cost

286.1

258.8

251.2

Derivative financial instrument liabilities

277.2

256.4

260.2

Loan: deposit ratio

51%

52%

49%

Risk weighted assets

245.1

230.9

230.0

Period end allocated tangible equity

35.6

33.2

32.7

Three months ended

Three months ended

Performance measures

31.03.22

31.03.21

Return on average allocated tangible equity

14.8%

17.7%

Average allocated tangible equity (£bn)

35.1

32.3

Cost: income ratio

63%

56%

Loan loss rate (bps)

28

(7)

Net interest margin

4.15%

3.92%

1

The income statement comparatives for Q121 are not impacted by the over-issuance of US securities under the Barclays Bank PLC US Shelf. See Basis of preparation on page 31 for further details.

Analysis of Barclays International

Corporate and Investment Bank

Three months ended

Three months ended1

31.03.22

31.03.21

Income statement information

£m

£m

% Change

Net interest income

385

270

43

Net trading income

2,450

1,917

28

Net fee, commission and other income

1,103

1,407

(22)

Total income

3,938

3,594

10

Credit impairment releases

33

43

(23)

Net operating income

3,971

3,637

9

Operating costs

(1,921)

(1,886)

(2)

Litigation and conduct

(318)

(1)

Total operating expenses

(2,239)

(1,887)

(19)

Other net income

-

1

Profit before tax

1,732

1,751

(1)

Attributable profit

1,316

1,263

4

As at 31.03.22

As at 31.12.21

As at 31.03.21

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

109.6

100.0

94.3

Trading portfolio assets

134.0

146.7

130.9

Derivative financial instrument assets

288.7

261.5

269.4

Financial assets at fair value through the income statement

203.8

188.1

197.3

Cash collateral and settlement balances

131.2

87.2

108.8

Other assets

222.5

195.8

190.8

Total assets

1,089.8

979.3

991.5

Deposits at amortised cost

214.7

189.4

185.2

Derivative financial instrument liabilities

277.1

256.4

260.2

Risk weighted assets

213.5

200.7

201.3

Three months ended

Three months ended

Performance measures

31.03.22

31.03.21

Return on average allocated tangible equity

17.1%

17.9%

Average allocated tangible equity (£bn)

30.8

28.2

Cost: income ratio

57%

53%

Analysis of total income

£m

£m

% Change

FICC

1,644

1,204

37

Equities

1,052

932

13

Global Markets

2,696

2,136

26

Advisory

185

163

13

Equity capital markets

47

243

(81)

Debt capital markets

416

453

(8)

Investment Banking fees

648

859

(25)

Corporate lending

125

206

(39)

Transaction banking

469

393

19

Corporate

594

599

(1)

Total income

3,938

3,594

10

1

The income statement comparatives for Q121 are not impacted by the over-issuance of US securities under the Barclays Bank PLC US Shelf. See Basis of preparation on page 31 for further details.

Analysis of Barclays International

Consumer, Cards and Payments

Three months ended

Three months ended

31.03.22

31.03.21

Income statement information

£m

£m

% Change

Net interest income

551

478

15

Net fee, commission, trading and other income

335

327

2

Total income

886

805

10

Credit impairment charges

(134)

(21)

Net operating income

752

784

(4)

Operating costs

(584)

(552)

(6)

Litigation and conduct

(195)

(20)

Total operating expenses

(779)

(572)

(36)

Other net income

8

8

-

(Loss)/profit before tax

(19)

220

Attributable (loss)/profit

(16)

168

As at 31.03.22

As at 31.12.21

As at 31.03.21

Balance sheet information

£bn

£bn

£bn

Loans and advances at amortised cost

35.2

33.8

29.2

Total assets

69.2

64.8

61.4

Deposits at amortised cost

71.4

69.4

66.0

Risk weighted assets

31.6

30.2

28.8

Three months ended

Three months ended

Performance measures

31.03.22

31.03.21

Return on average allocated tangible equity

(1.5)%

16.5%

Average allocated tangible equity (£bn)

4.3

4.1

Cost: income ratio

88%

71%

Loan loss rate (bps)

145

27

Analysis of total income

£m

£m

% Change

International Cards and Consumer Bank

538

533

1

Private Bank

214

179

20

Unified Payments

134

93

44

Total income

886

805

10

Head Office

Three months ended

Three months ended

31.03.22

31.03.21

Income statement information

£m

£m

% Change

Net interest income

66

(178)

Net fee, commission and other income

(43)

103

Total income

23

(75)

Credit impairment releases

8

-

Net operating income

31

(75)

Operating costs

(85)

(71)

(20)

Litigation and conduct

(1)

(9)

89

Total operating expenses

(86)

(80)

(8)

Other net (expenses)/income

(18)

123

Loss before tax

(73)

(32)

Attributable loss

(292)

(25)

As at 31.03.22

As at 31.12.21

As at 31.03.21

Balance sheet information

£bn

£bn

£bn

Total assets

19.9

19.0

17.7

Risk weighted assets

11.0

11.0

10.7

Period end allocated tangible equity

3.6

5.7

3.3

Three months ended

Three months ended

Performance measures

31.03.22

31.03.21

Average allocated tangible equity (£bn)

3.6

4.3

Margins and balances

Three months ended 31.03.22

Three months ended 31.03.21

Net interest income

Average customer assets

Net interest margin

Net interest income

Average customer assets

Net interest margin

£m

£m

%

£m

£m

%

Barclays UK

1,339

207,607

2.62

1,281

204,663

2.54

Barclays International1

867

84,838

4.15

755

78,230

3.92

Total Barclays UK and Barclays International

2,206

292,445

3.06

2,036

282,893

2.92

Other2

135

(185)

Total Barclays Group

2,341

1,851

1

Barclays International margins include the lending related investment bank business.

2

Other includes Head Office and the non-lending related investment bank businesses not included in Barclays International margins.

Quarterly analysis for Barclays UK and Barclays International

Net interest income

Average customer assets

Net interest margin

Three months ended 31.12.21

£m

£m

%

Barclays UK

1,313

209,064

2.49

Barclays International1

848

81,244

4.14

Total Barclays UK and Barclays International

2,161

290,308

2.95

Three months ended 30.09.21

Barclays UK

1,303

207,692

2.49

Barclays International1

783

77,364

4.02

Total Barclays UK and Barclays International

2,086

285,056

2.90

Three months ended 30.06.21

Barclays UK

1,305

205,168

2.55

Barclays International1

763

77,330

3.96

Total Barclays UK and Barclays International

2,068

282,498

2.94

Three months ended 31.03.21

Barclays UK

1,281

204,663

2.54

Barclays International1

755

78,230

3.92

Total Barclays UK and Barclays International

2,036

282,893

2.92

1

Barclays International margins include the lending related investment bank business.

Gross exposure

Impairment allowance

Net exposure

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Total

As at 31.03.22

£m

£m

£m

£m

£m

£m

£m

£m

£m

Barclays UK

158,707

25,003

3,049

186,759

221

943

704

1,868

184,891

Barclays International

26,627

2,792

1,574

30,993

575

873

795

2,243

28,750

Head Office

3,688

380

691

4,759

1

27

347

375

4,384

Total Barclays Group retail

189,022

28,175

5,314

222,511

797

1,843

1,846

4,486

218,025

Barclays UK

35,052

1,848

914

37,814

142

48

103

293

37,521

Barclays International

102,476

13,271

1,014

116,761

195

177

364

736

116,025

Head Office

124

1

22

147

-

-

20

20

127

Total Barclays Group wholesale1

137,652

15,120

1,950

154,722

337

225

487

1,049

153,673

Total loans and advances at amortised cost

326,674

43,295

7,264

377,233

1,134

2,068

2,333

5,535

371,698

Off-balance sheet loan commitments and financial guarantee contracts2

330,717

27,886

1,724

360,327

207

275

21

503

359,824

Total3

657,391

71,181

8,988

737,560

1,341

2,343

2,354

6,038

731,522

As at 31.03.22

Three months ended 31.03.22

Coverage ratio

Loan impairment charge/(release) and loan loss rate

Stage 1

Stage 2

Stage 3

Total

Loan impairment charge/(release)

Loan loss rate

%

%

%

%

£m

bps

Barclays UK

0.1

3.8

23.1

1.0

43

9

Barclays International

2.2

31.3

50.5

7.2

128

167

Head Office

-

7.1

50.2

7.9

(7)

-

Total Barclays Group retail

0.4

6.5

34.7

2.0

164

30

Barclays UK

0.4

2.6

11.3

0.8

8

9

Barclays International

0.2

1.3

35.9

0.6

(7)

-

Head Office

-

-

90.9

13.6

(1)

-

Total Barclays Group wholesale1

0.2

1.5

25.0

0.7

-

-

Total loans and advances at amortised cost

0.3

4.8

32.1

1.5

164

18

Off-balance sheet loan commitments and financial guarantee contracts2

0.1

1.0

1.2

0.1

(42)

Other financial assets subject to impairment3

19

Total4

0.2

3.3

26.2

0.8

141

1

Includes Wealth and Private Banking exposures measured on an individual basis, and excludes Business Banking exposures, including lending under the government backed Bounce Back Loan Scheme (BBLs) of £9.0bn that are managed on a collective basis and reported within Barclays UK Retail. The net impact is a difference in total exposure of £5,199m of balances reported as wholesale loans on page 17 in the Loans and advances at amortised cost by product disclosure.

2

Excludes loan commitments and financial guarantees of £14bn carried at fair value.

3

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £198.8bn and impairment allowance of £135m. This comprises £7m ECL on £198.5bn Stage 1 assets, £0m on £130m Stage 2 fair value through other comprehensive income assets, cash collateral and settlement balances and £128m on £135m Stage 3 other assets.

4

The loan loss rate is 15bps after applying the total impairment charge of £141m.

Gross exposure

Impairment allowance

Net exposure

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Total

As at 31.12.21

£m

£m

£m

£m

£m

£m

£m

£m

£m

Barclays UK

160,695

22,779

2,915

186,389

261

949

728

1,938

184,451

Barclays International

25,981

2,691

1,566

30,238

603

795

858

2,256

27,982

Head Office

3,735

429

705

4,869

2

36

347

385

4,484

Total Barclays Group retail

190,411

25,899

5,186

221,496

866

1,780

1,933

4,579

216,917

Barclays UK

35,571

1,917

969

38,457

153

43

111

307

38,150

Barclays International

92,341

13,275

1,059

106,675

187

192

458

837

105,838

Head Office

542

2

21

565

-

-

19

19

546

Total Barclays Group wholesale1

128,454

15,194

2,049

145,697

340

235

588

1,163

144,534

Total loans and advances at amortised cost

318,865

41,093

7,235

367,193

1,206

2,015

2,521

5,742

361,451

Off-balance sheet loan commitments and financial guarantee contracts2

312,142

34,815

1,298

348,255

217

302

23

542

347,713

Total3

631,007

75,908

8,533

715,448

1,423

2,317

2,544

6,284

709,164

As at 31.12.21

Year ended 31.12.21

Coverage ratio

Loan impairment charge/(release) and loan loss rate

Stage 1

Stage 2

Stage 3

Total

Loan impairment charge/(release)

Loan loss rate

%

%

%

%

£m

bps

Barclays UK

0.2

4.2

25.0

1.0

(227)

-

Barclays International

2.3

29.5

54.8

7.5

181

60

Head Office

0.1

8.4

49.2

7.9

-

-

Total Barclays Group retail

0.5

6.9

37.3

2.1

(46)

-

Barclays UK

0.4

2.2

11.5

0.8

122

32

Barclays International

0.2

1.4

43.2

0.8

(197)

-

Head Office

-

-

90.5

3.4

-

-

Total Barclays Group wholesale1

0.3

1.5

28.7

0.8

(75)

-

Total loans and advances at amortised cost

0.4

4.9

34.8

1.6

(121)

-

Off-balance sheet loan commitments and financial guarantee contracts2

0.1

0.9

1.8

0.2

(514)

Other financial assets subject to impairment3

(18)

Total

0.2

3.1

29.8

0.9

(653)

1

Includes Wealth and Private Banking exposures measured on an individual basis, and excludes Business Banking exposures, including BBLs of £9.4bn that are managed on a collective basis and reported within Barclays UK Retail. The net impact is a difference in total exposure of £5,994m of balances reported as wholesale loans on page 17 in the Loans and advances at amortised cost by product disclosure.

2

Excludes loan commitments and financial guarantees of £18.8bn carried at fair value.

3

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £155.2bn and impairment allowance of £114m. This comprises £6m ECL on £154.9bn Stage 1 assets, £1m on £157.0bn Stage 2 fair value through other comprehensive income assets, other assets and cash collateral and settlement balances and £107m on £110m Stage 3 other assets.

Stage 2

As at 31.03.22

Stage 1

Not past due

>30 days past due

Total

Stage 3

Total

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Home loans

147,839

18,815

1,370

805

20,990

2,148

170,977

Credit cards, unsecured loans and other retail lending

37,963

5,259

318

454

6,031

2,341

46,335

Wholesale loans

140,872

15,057

948

269

16,274

2,775

159,921

Total

326,674

39,131

2,636

1,528

43,295

7,264

377,233

Impairment allowance

Home loans

18

43

3

7

53

397

468

Credit cards, unsecured loans and other retail lending

759

1,526

116

133

1,775

1,393

3,927

Wholesale loans

357

235

3

2

240

543

1,140

Total

1,134

1,804

122

142

2,068

2,333

5,535

Net exposure

Home loans

147,821

18,772

1,367

798

20,937

1,751

170,509

Credit cards, unsecured loans and other retail lending

37,204

3,733

202

321

4,256

948

42,408

Wholesale loans

140,515

14,822

945

267

16,034

2,232

158,781

Total

325,540

37,327

2,514

1,386

41,227

4,931

371,698

Coverage ratio

%

%

%

%

%

%

%

Home loans

-

0.2

0.2

0.9

0.3

18.5

0.3

Credit cards, unsecured loans and other retail lending

2.0

29.0

36.5

29.3

29.4

59.5

8.5

Wholesale loans

0.3

1.6

0.3

0.7

1.5

19.6

0.7

Total

0.3

4.6

4.6

9.3

4.8

32.1

1.5

As at 31.12.21

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Home loans

148,058

17,133

1,660

707

19,500

2,122

169,680

Credit cards, unsecured loans and other retail lending

37,840

5,102

300

248

5,650

2,332

45,822

Wholesale loans

132,967

15,246

306

391

15,943

2,781

151,691

Total

318,865

37,481

2,266

1,346

41,093

7,235

367,193

Impairment allowance