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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Barclays Plc | LSE:BARC | London | Ordinary Share | GB0031348658 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.85 | -0.41% | 208.90 | 209.35 | 209.45 | 211.85 | 208.80 | 210.15 | 40,264,593 | 16:35:01 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Commercial Banks, Nec | 25.38B | 5.26B | 0.3490 | 6.00 | 31.55B |
From Jun 2019 to Jun 2024
TIDMBARC TIDM38AK
RNS Number : 9068P
Barclays PLC
31 October 2012
Barclays PLC
Interim Management Statement
30 September 2012
Table of Contents
Interim Management Statement Page Performance Highlights 4 Barclays Results by Quarter 6 Group Performance Review 7 Results by Business * UK Retail and Business Banking 10 * Europe Retail and Business Banking 11 * Africa Retail and Business Banking 12 * Barclaycard 13 * Investment Bank 14 * Corporate Banking 16 * Wealth and Investment Management 17 * Head Office and Other Operations 18 Appendix I - Quarterly Results Summary 19 Appendix II - Margins and Income by Geography 21 Appendix III - Balance Sheet and Capital 22 Appendix IV - Group Exposures to Selected Countries 27 Appendix V - Credit Market Exposures 35 Appendix VI - Other Legal and Regulatory Matters 36 Appendix VII - Other Information 37
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839
Notes
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the 9 months to 30 September 2012 to the corresponding 9 months of 2011 and balance sheet comparatives relate to 30 June 2012. 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.
Adjusted profit before tax and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant and one-off in nature and hence not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; gains on debt buy-backs; impairment and disposal of the investment in BlackRock, Inc.; the provision for Payment Protection Insurance redress payments and claims management costs (PPI redress); the provision for interest rate hedging products redress; goodwill impairments; and gains and losses on acquisitions and disposals. The regulatory penalties relating to the industry-wide investigation into the setting of interbank offered rates have not been excluded from adjusted measures.
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the Results glossary that can be accessed at http://group.barclays.com/about-barclays/investor-relations#institutional-investors.
The financial information on which this Interim Management Statement is based, and other data set out in the appendices to this statement, are unaudited and have been prepared in accordance with Barclays previously stated accounting policies described in the 2011 Annual Report.
The information in this announcement, which was approved by the Board of Directors on 30 October 2012, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2011, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
For qualifying US and Canadian resident ADR holders, the interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will mail the interim dividend on 7 December 2012 to ADR holders on the record on 9 November 2012.
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 certain of the Group's plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "may", "will", "seek", "continue", "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe" or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges, business strategy, capital ratios, leverage, payment of dividends, projected levels of growth in the banking and financial markets, projected costs, estimates of capital expenditures and plans and objectives for future operations and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic, Eurozone and global economic and business conditions, the effects of continued volatility in credit markets, market related risks such as changes in interest rates and exchange rates, effects of changes in valuation of credit market exposures, changes in valuation of issued notes, the policies and actions of governmental and regulatory authorities (including requirements regarding capital and Group structures and the potential for one or more countries exiting the Euro), changes in legislation, the further development of standards and interpretations under IFRS applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of current and future legal proceedings, the success of future acquisitions and other strategic transactions and the impact of competition - a number of such factors being beyond the Group's control. As a result, the Group's actual future results may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements.
Any forward-looking statements made herein speak only as of the date they are made. Except as required by the UK Financial Services Authority (FSA), the London Stock Exchange plc (LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in Barclays expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has filed or may file with the LSE and/or the SEC.
Performance Highlights
"These results demonstrate that we continue to have good momentum in our businesses despite the difficulties we faced through this period. While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned. I am proud of how our colleagues have continued to focus on delivering for our customers and clients, and am grateful for our customers' and clients' continued loyalty to Barclays.
We look forward to closing out 2012 in a strong position, and to sharing more with you in February 2013 about how we intend to make Barclays the 'Go-To' bank for all of our stakeholders."
Antony Jenkins, Chief Executive
- Adjusted profit before tax up 18% to GBP5,954m for the nine months ended 30 September 2012, with an improvement of 27% in Corporate and Investment Banking
- Statutory profit before tax down 86% to GBP712m, including an own credit charge of GBP4,019m (2011: gain of GBP2,971m), gain on disposal of BlackRock investment of GBP227m (2011: impairment/loss of GBP1,858m) and a GBP1,000m (2011: GBP1,000m) provision for Payment Protection Insurance (PPI) redress, of which GBP700m was recognised in Q3
- Adjusted return on average shareholders' equity increased to 8.8% (2011: 8.4%) with improvements in the majority of our businesses. Statutory return on average shareholders' equity was negative 0.5% (2011: positive 6.9%)
- Adjusted income is in line with prior year at GBP22,347m despite challenging economic conditions, the continuing low interest rate environment and non recurrence of gains from the disposal of hedging instruments in Q3 11
- Investment Bank income improved 7% to GBP9,129m. Q3 12 Investment Bank income was GBP2,633m, up 17% on Q3 11 but down 13% on the strong Q2 12 performance
- Credit impairment charges were down 7% at GBP2,657m, principally reflecting improvements in the UK businesses, offset by higher charges in the Investment Bank and the RBB businesses in Europe and Africa
- Operating expenses, excluding the GBP1,000m (2011: GBP1,000m) provision for PPI redress and GBP450m (2011: nil) provision for interest rate hedging products redress, were down 4% to GBP13,832m. Non-performance costs reduced 3% to GBP11,837m and performance costs reduced 9% to GBP1,995m
- During Q3 12, sovereign exposures to Spain, Italy, Portugal, Ireland, Greece and Cyprus reduced 15% to GBP4.8bn. The Group reduced local Euro funding mismatches in Spain by GBP2.4bn to GBP0.1bn and in Portugal by GBP0.4bn to GBP3.3bn
- Core Tier 1 ratio strengthened to 11.2% in Q3 12 (30 June 2012: 10.9%). Risk weighted assets reduced 3% to GBP379bn, principally reflecting risk reduction in Corporate and Investment Banking and foreign exchange movements, partially offset by a change in methodology on loss given default for sovereign exposures
- The Group continues to access both secured and unsecured term funding markets and has met its term funding needs for 2012 having raised GBP22bn of term funding in the first nine months of 2012, including GBP1bn through Barclays participation in the Bank of England's Funding for Lending Scheme
- The liquidity pool was GBP160bn (30 June 2012: GBP170bn), remaining well above our liquidity risk appetite and within the month end range of GBP152bn to GBP173bn for the year to date (Full Year 2011: GBP140bn to GBP167bn)
Performance Highlights
Hot Features
Premium
Barclays Unaudited Results Adjusted(1) Statutory
=========== =========
for the nine months ended 30.09.12 30.09.11 30.09.12 30.09.11
GBPm GBPm % Change GBPm GBPm % Change
================================ ======== ======== ======== ======== ======== ========
Total income net of insurance
claims 22,347 22,300 - 18,555 25,213 (26)
Impairment charges and other
provisions (2,657) (2,851) (7) (2,657) (4,651) (43)
================================ ======== ======== ======== ======== ======== ========
Net operating income 19,690 19,449 1 15,898 20,562 (23)
Operating expenses (13,832) (14,441) (4) (15,282) (15,488) (1)
Other net income/(expense)(2) 96 54 96 (8)
================================ ======== ======== ======== ======== ======== ========
Profit before tax 5,954 5,062 18 712 5,066 (86)
Profit after tax 4,167 3,868 8 374 3,349 (89)
Performance Measures
================================ ======== ======== ======== ======== ======== ========
Return on average shareholders'
equity 8.8% 8.4% (0.5%) 6.9%
Return on average tangible
shareholders' equity 10.3% 10.1% (0.6%) 8.3%
Return on average risk weighted
assets 1.4% 1.3% 0.1% 1.1%
Cost: income ratio 62% 65% 82% 61%
Loan loss rate 69bps 74bps 69bps 74bps
Basic earnings per share 29.3p 26.5p (1.7p) 22.2p
Dividend per share 3.0p 3.0p 3.0p 3.0p
Capital and Balance Sheet 30.09.12 30.06.12 % Change
================================ ======== ======== ======== ======== ======== ========
Core Tier 1 ratio 11.2% 10.9%
Risk weighted assets GBP379bn GBP390bn (3)
Adjusted gross leverage 20x 20x -
Group liquidity pool GBP160bn GBP170bn (6)
Net asset value per share 444p 443p -
Net tangible asset value
per share 379p 379p -
Loan: deposit ratio 111% 111%
Adjusted(1) Statutory
Profit/(Loss) Before Tax
by Business 30.09.12 30.09.11 30.09.12 30.09.11
GBPm GBPm % Change GBPm GBPm % Change
================================= ======== ======== ======== ======== ======== ========
UK 1,146 1,198 (4) 296 798 (63)
Europe (151) (109) 39 (151) (109) 39
Africa 330 561 (41) 330 563 (41)
Barclaycard 1,150 949 21 1,000 302 231
================================= ======== ======== ======== ======== ======== ========
Retail and Business Banking 2,475 2,599 (5) 1,475 1,554 (5)
Investment Bank 3,205 2,698 19 3,205 2,698 19
Corporate Banking 444 167 166 (6) 103
================================= ======== ======== ======== ======== ======== ========
Corporate and Investment
Banking 3,649 2,865 27 3,199 2,801 14
Wealth and Investment Management 200 153 31 200 153 31
Head Office and Other Operations (370) (555) (33) (4,162) 558
================================= ======== ======== ======== ======== ======== ========
Total profit before tax 5,954 5,062 18 712 5,066 (86)
1 Adjusted performance measures and profit before tax exclude the impact of an own credit charge of GBP4,019m (2011: gain of GBP2,971m), gain on disposal of strategic investment in BlackRock, Inc. of GBP227m (2011: loss of GBP58m), impairment of investment in BlackRock Inc. of GBPnil (2011: GBP1,800m), provision for PPI redress of GBP1,000m (2011: GBP1,000m), provision for interest rate hedging products redress of GBP450m (2011: GBPnil), gains on acquisitions and disposals of GBPnil (2011: loss of GBP62m) and goodwill impairment of GBPnil (2011: GBP47m).
2 Comprises: share of post-tax results of associates and joint ventures; profit or loss on disposal of subsidiaries, associates and joint ventures; and gains on acquisitions.
Barclays Results by Quarter
Barclays Results by Quarter Q312 Q212 Q112 Q411 Q311 Q211 Q111
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
==================================== ======= ======= ======= ======= ======= ======= =======
Adjusted basis
Total income net of insurance
claims 6,872 7,337 8,138 6,212 7,001 7,549 7,750
Credit impairment charges and
other provisions (825) (1,054) (778) (951) (1,023) (907) (921)
==================================== ======= ======= ======= ======= ======= ======= =======
Net operating income 6,047 6,283 7,360 5,261 5,978 6,642 6,829
Operating expenses (excluding
UK bank levy) (1) (4,341) (4,542) (4,949) (4,414) (4,659) (4,940) (4,842)
UK bank levy - - - (325) - - -
Other net income 21 41 34 6 18 19 17
==================================== ======= ======= ======= ======= ======= ======= =======
Adjusted profit before tax 1,727 1,782 2,445 528 1,337 1,721 2,004
Adjusting items
==================================== ======= ======= ======= ======= ======= ======= =======
Own credit (1,074) (325) (2,620) (263) 2,882 440 (351)
Gains on debt buy-backs - - - 1,130 - - -
Impairment and gain/(loss) on
disposal of BlackRock investment - 227 - - (1,800) (58) -
Provision for PPI redress(1) (700) - (300) - - (1,000) -
Provision for interest rate hedging
products redress - (450) - - - - -
Goodwill impairment - - - (550) - (47) -
(Losses)/gains on acquisitions
and disposals - - - (32) 3 (67) 2
Statutory (loss)/profit before
tax (47) 1,234 (475) 813 2,422 989 1,655
Statutory (loss)/profit after
tax (106) 817 (337) 602 1,366 742 1,241
Adjusted basic earnings per share 7.5p 8.2p 13.6p 1.2p 6.9p 8.9p 10.7p
Adjusted cost: income ratio 63% 62% 61% 76% 67% 65% 62%
Basic earnings per share (2.3p) 5.1p (4.5p) 2.9p 9.7p 4.0p 8.5p
Cost: income ratio 87% 69% 95% 75% 47% 75% 65%
Adjusted Profit/(Loss) Before
Tax by Business Q312 Q212 Q112 Q411 Q311 Q211 Q111
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================= ===== ===== ===== ===== ===== ===== =====
UK 400 412 334 222 494 416 288
Europe (59) (49) (43) (125) 52 (102) (59)
Africa 56 97 177 269 219 195 147
Barclaycard 397 404 349 259 378 275 296
================================= ===== ===== ===== ===== ===== ===== =====
Retail and Business Banking 794 864 817 625 1,143 784 672
Investment Bank 937 1,002 1,266 267 388 977 1,333
Corporate Banking 98 127 219 37 113 33 21
================================= ===== ===== ===== ===== ===== ===== =====
Corporate and Investment Banking 1,035 1,129 1,485 304 501 1,010 1,354
Wealth and Investment Management 79 61 60 54 65 42 46
Head Office and Other Operations (181) (272) 83 (455) (372) (115) (68)
================================= ===== ===== ===== ===== ===== ===== =====
Total profit before tax 1,727 1,782 2,445 528 1,337 1,721 2,004
1 The Q3 12 GBP700m provision for PPI redress includes claims management costs of GBP52m relating to Q2 12: GBP28m and Q1 12: GBP24m, previously recorded within operating expenses as a non-adjusting item.
Group Performance Review
For the first nine months of 2012 we reported a good performance as adjusted profits increased 18% year on year. Our Core Tier 1 ratio improved to 11.2%, while funding and liquidity remained strong.
Income Statement
- Adjusted profit before tax increased 18% to GBP5,954m. Adjusted results provide a more consistent basis for comparing business performance between periods
- Statutory profit before tax down 86% to GBP712m, including an own credit charge of GBP4,019m (2011: gain of GBP2,971m) and a GBP1,000m (2011: GBP1,000m) provision for PPI redress
- Adjusted return on average shareholders' equity increased to 8.8% (2011: 8.4%) with improvements in UK RBB, Barclaycard, Investment Bank, Corporate Banking and Wealth and Investment Management
- Adjusted income was flat at GBP22,347m despite challenging economic conditions, the continuing low interest rate environment and non-recurrence of gains of GBP1,000m from the disposal of hedging instruments in Q3 11
- Customer net interest income for Retail and Business Banking, Corporate Banking and Wealth and Investment Management was stable at GBP7,345m. Total net interest income reduced 9% to GBP8,334m and the net interest margin declined 23bps to 186bps, principally reflecting the non recurrence of gains from the disposal of hedging instruments in Q3 11
- Total income in the Investment Bank increased 7% to GBP9,129m driven by increases in Fixed Income, Currencies and Commodities (FICC), and Equities
- Credit impairment charges were down 7% at GBP2,657m, principally reflecting improvements in UK RBB, Barclaycard and Corporate Banking. This was partially offset by higher charges in the Investment Bank, driven by ABS CDO Super Senior positions, higher losses on single name exposures and a non-recurring release of GBP223m in 2011; as well as increases in Europe RBB and Africa RBB
- The annualised loan loss rate reduced to 69bps (2011: 74bps)
- During 2012, delinquency trends have improved in our main cards portfolios and UK unsecured lending, however, weak local economic conditions have led to some deterioration in the European home loan portfolios
- While a number of credit metrics in the wholesale portfolios have shown some improvement during 2012, the challenging conditions in Europe have lead to some deterioration to metrics in Corporate Europe
- The credit risk loans (CRL) coverage ratio increased to 51.0% (30 June 2012: 50.4%) as CRL balances and impairment allowances fell 3.1% and 1.8%, respectively during Q3 12
- Operating expenses, excluding the provision for PPI redress of GBP1,000m (2011: GBP1,000m) and provision for interest rate hedging products redress of GBP450m (2011: nil), were down 4% to GBP13,832m
- Non-performance costs decreased 3% to GBP11,837m after absorbing regulatory penalties of GBP290m relating to the industry-wide investigation into the setting of interbank offered rates. Cost reductions from management cost saving initiatives, business restructuring and foreign exchange movements, more than offset the impact of continued business investment, including 2011 acquisitions, and increased Financial Services Compensation Scheme costs
- Performance costs reduced 9% to GBP1,995m despite an increase in the charge for bonuses deferred from prior years to GBP942m (2011: GBP751m). The Investment Bank compensation: income ratio reduced to 39% (2011: 46%)
- 2012 bonus pool awards have not yet been granted as discretionary incentive award decisions are not taken by the Remuneration Committee until the performance for the full year can be assessed. The current year bonus charge represents an accrual for estimated costs in accordance with accounting requirements
- The adjusted cost: income ratio decreased to 62% (2011: 65%). The Investment Bank cost: net operating income ratio improved to 64% (2011: 68%)
- Since the end of the first half 2012 Barclays has experienced higher than previously anticipated levels of PPI claim volumes, and has therefore determined that it is appropriate to provide a further GBP700m for PPI redress as at 30 September 2012. This is in addition to provisions recognised of GBP1bn in 2011 and GBP300m in Q1 12. Based on claims experience to date and anticipated future volumes, the resulting provision includes Barclays best estimate of expected future PPI redress payments and claims management costs. Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision
Group Performance Review
Balance Sheet
- During Q312 total loans and advances remained stable at GBP502bn (30 June 2012: GBP504bn) with increases in UK mortgage lending being offset by reductions in lending in Europe RBB and Corporate Bank
- The Group's loan to deposit ratio was stable at 111% (30 June 2012: 111%), with both loans and advances to customers and customer deposits flat at GBP452.9bn and GBP407.3bn respectively
- Total assets reduced 2% to GBP1,599bn, principally reflecting lower derivative assets and reductions in cash and balances at central banks partially offset by increases in reverse repurchase agreements and other similar secured lending
- Total shareholders' equity, including non-controlling interests, remained at GBP63.7bn, principally reflecting increases in the value of available for sale debt investments of GBP0.6bn and cash flow hedges of GBP0.4bn, offset by GBP0.7bn negative currency translation differences due to depreciation of US dollar and South African Rand against Sterling, and dividends paid during the quarter of GBP0.3bn. After allowing for non-controlling interests, principally preference shares and Absa Group minority interests, statutory profit attributable to equity shareholders of the parent reduced to negative GBP0.2bn (2011: GBP2.7bn profit)
- Net asset value per share was 444p (30 June 2012: 443p) and the net tangible asset value per share remained at 379p
- Adjusted gross leverage remained stable at 20x and during Q3 moved within a month end range of 20x to 21x. Excluding the liquidity pool, adjusted gross leverage remained flat at 17x
Capital Management
- The Core Tier 1 ratio increased to 11.2% (30 June 2012: 10.9%), reflecting a broadly stable Core Tier 1 equity at GBP42.5bn and a 3% reduction in risk weighted assets to GBP379bn, principally reflecting risk reduction in the Corporate and Investment Bank and foreign exchange movements. The benefit of risk reduction was partially offset by increases from adopting revised guidance from the FSA requiring higher loss given default assumptions on sovereign exposures
- Barclays generated GBP0.7bn Core Tier 1 capital from earnings in Q3, after absorbing the impact of the additional provision for PPI redress and the Group's quarterly interim dividend. The increase from earnings was offset by a GBP0.6bn reduction in reserves due to foreign exchange movements, which for the Core Tier 1 ratio was matched by a broadly offsetting GBP5.2bn foreign exchange reduction in risk weighted assets
- The EU was due to finalise the requirements of CRD IV by July 2012, in order to implement Basel 3 by 1 January 2013. However, there are a number of areas still under consideration and the European Parliament is not due to consider the final proposals until November 2012. While the expectation is that CRD IV will be delayed, in the absence of official guidance we are continuing to progress implementation activities in line with the original timetable
Funding and Liquidity
- The liquidity pool was GBP160bn (30 June 2012: GBP170bn), remaining well above our liquidity risk appetite and within the month end range of GBP152bn to GBP173bn for the year to date (Full Year 2011: GBP140bn to GBP167bn). We have also taken steps to realign the composition of the pool to reduce the cost of liquidity, in particular moving funds from deposits with central banks into government bonds(1)
Cash and Deposits
with Central Government Other Available
Liquidity Pool Banks(2) Bonds(1) Liquidity Total(3)
GBPbn GBPbn GBPbn GBPbn
=============== ================= ========== =============== ========
As at 30.09.12 99 41 20 160
As at 30.06.12 124 32 14 170
- RBB, Corporate Banking and Wealth and Investment Management activities are largely funded by customer deposits with the remaining funding secured against customer loans and advances. At Q3, the customer loan to deposit ratio for these businesses was 104% (30 June 2012: 106%, 31 December 2011: 111%) and the customer loan to deposit and secured funding ratio was 91% (30 June 2012: 94%, 31 December 2011:101%)
1 Of which over 75% (30 June 2012: over 70%) of securities are comprised of United Kingdom, United States, Japan, France, Germany, Denmark and the Netherlands.
2 Of which over 95% is placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.
3 GBP135bn (30 June 2012: GBP149bn) of which is FSA eligible.
Group Performance Review
- The Investment Bank's activities are primarily funded through wholesale markets. As at 30 September 2012, total wholesale funding outstanding (excluding repurchase agreements) was GBP253bn (30 June 2012: GBP263bn), of which GBP113bn matures in less than one year (30 June 2012: GBP118bn) and GBP39bn matures within one month (30 June 2012: GBP42bn)
- Barclays has met its term funding needs for the period to the end of 2012. In the first 9 months of 2012, the funding requirement has reduced with the improvement in the customer loan to deposit ratio, and the Group has raised GBP22bn of term funding, including GBP1bn through Barclays participation in the Bank of England's Funding for Lending Scheme. The Group has GBP27bn of term funding maturing during 2012
Exposures to Selected Eurozone Countries
- During Q3 12, sovereign exposures to Spain, Italy, Portugal, Ireland, Greece and Cyprus reduced by 15% to GBP4.8bn
- Retail loans and advances in Spain, Italy and Portugal decreased 3% to GBP38.5bn, while lending to corporates decreased 19% to GBP8.2bn reflecting continued prudent risk management of portfolios. The 90 day arrears rates for the significant residential mortgage portfolios in Spain and Italy remained stable during Q3 12
- During Q3 12, mitigating actions were taken to reduce local net funding mismatches in particular through the attraction of corporate deposits in Spain and reducing corporate lending in Spain and Portugal. As a result, the aggregate net local balance sheet funding mismatch reduced from GBP2.5bn to GBP0.1bn in Spain and from GBP3.7bn to GBP3.3bn in Portugal. In Italy the net funding mismatch reduced from GBP11.9bn to GBP9.6bn
Citizenship
- Provided GBP32.4bn (2011: GBP32.8bn) of gross new lending to UK households and businesses during 2012
- We are committed to passing on the full funding benefit from the Funding for Lending Scheme to our customers. As part of this we have launched Cashback for Business, offering 2% cashback on loans for small and medium-sized enterprises in the UK
- We supported 84,000 start-up businesses in the UK, the highest in a 9 month period since 1988
- We raised GBP628bn of financing for businesses and governments globally
- We provided 280 new UK apprenticeships, demonstrating good progress towards our commitment of at least 1,000 apprenticeships by June 2013
Dividends
- It is our policy to declare and pay dividends on a quarterly basis. We will pay a third interim cash dividend for 2012 of 1p per share on 7 December 2012
Outlook
- Performance during October continues to be affected by the challenging economic environment and subdued market volumes. We continue to be cautious about the environment in which we operate and have positioned the Bank accordingly with an intense focus on costs, returns and capital. We remain confident in the strength of our market positions, our robust risk management and the benefits of our universal banking model
Results by Business
Nine Months Nine Months
Ended Ended
UK RBB 30.09.12 30.09.11
GBPm GBPm % Change
===================================== =========== =========== ========
Adjusted basis
Total income net of insurance claims 3,335 3,527 (5)
Credit impairment charges and other
provisions (198) (380) (48)
===================================== =========== =========== ========
Net operating income 3,137 3,147 -
Operating expenses (1,991) (1,950) 2
Other net income - 1
===================================== =========== =========== ========
Adjusted profit before tax 1,146 1,198 (4)
Adjusting items
===================================== =========== =========== ========
Provision for PPI redress (850) (400)
Statutory profit before tax 296 798 (63)
Performance Measures
===================================== =========== =========== ========
Adjusted return on average equity 16.9% 16.7%
Adjusted return on average risk
weighted assets 3.3% 3.3%
Adjusted cost: income ratio 60% 55%
Return on average equity 4.4% 11.0%
Return on average risk weighted
assets 0.9% 2.2%
Cost: income ratio 85% 67%
Loan loss rate (bps) 21 42
Balance Sheet Information 30.09.12 30.06.12
===================================== =========== =========== ========
Loans and advances to customers GBP126.0bn GBP123.4bn
at amortised cost
Customer deposits GBP114.5bn GBP113.9bn
2012 compared to 2011
- Adjusted profit before tax decreased 4% to GBP1,146m. Statutory profit before tax was GBP296m (2011: GBP798m) after GBP850m (2011: GBP400m) provision for PPI redress, including claims management costs
- Solid growth in new mortgage lending and customer deposits more than offset by higher funding costs and reduced structural hedge contribution
- Reduction in impairment principally in personal unsecured lending
- Income declined 5% to GBP3,335m reflecting higher funding costs and reduced contribution from structural hedges in particular non recurrence of gains from the disposal of hedging instruments in Q3 11
- Credit impairment charges decreased 48% to GBP198m reflecting improvements across all portfolios, principally in personal unsecured lending
- Loan loss rate reduced to 21bps (2011: 42bps) - 90 day arrears rates on UK Personal Loans improved by 43bps to 1.35%
- Operating expenses, excluding the PPI provision and claims management costs, increased 2% to GBP1,991m
Q3 12 compared to Q2 12
- Adjusted profit before tax decreased 3% to GBP400m, principally reflecting a non recurring impairment release in Q2 12. Statutory loss before tax of GBP150m (Q212: profit of GBP412m) reflecting an additional GBP550m provision for PPI redress
- Loans and advances to customers increased 2% to GBP126.0bn reflecting solid growth in mortgage balances. Customer deposits continued to grow to GBP114.5bn (30 June 2012: GBP113.9bn)
- Plans have been announced to acquire from ING Direct UK a deposit book with balances of GBP10.9bn and a mortgage book with outstanding balances of GBP5.6bn (as at 31 August 2012). The mortgage book had a loan to value ratio of 50% and is being acquired at an approximate 3% discount. The deposit book is being acquired at par. Completion is subject to regulatory approval and is expected to occur early in Q2 13
Results by Business
Nine Months Nine Months
Ended Ended
Europe RBB 30.09.12 30.09.11
GBPm GBPm % Change
===================================== =========== =========== ========
Adjusted and statutory basis
Total income net of insurance claims 705 979 (28)
Credit impairment charges and other
provisions (233) (178) 31
===================================== =========== =========== ========
Net operating income 472 801 (41)
Operating expenses (632) (920) (31)
Other net income 9 10
===================================== =========== =========== ========
Adjusted and statutory loss before
tax (151) (109) 39
Performance Measures
===================================== =========== =========== ========
Return on average equity (7.6%) (3.9%)
Return on average risk weighted
assets (1.0%) (0.6%)
Cost: income ratio 90% 94%
Loan loss rate (bps) 76 52
Balance Sheet Information 30.09.12 30.06.12
===================================== =========== =========== ========
Loans and advances to customers GBP40.1bn GBP41.2bn
at amortised cost
Customer deposits GBP18.1bn GBP18.4bn
2012 compared to 2011
- Loss before tax increased 39% to GBP151m
- Decrease in income reflecting the challenging economic environment in Europe - Offset by lower costs following restructuring charges in 2011 and subsequent cost savings
- Income declined 28% to GBP705m reflecting lower volumes, reduced margins and non recurrence of gains from the disposal of hedging instruments in Q3 11
- Credit impairment charges increased 31% to GBP233m due to deterioration in credit performance across Europe reflecting current economic conditions
- Loan loss rate increased to 76bps (2011: 52bps)
- 90 day arrears rates for home loans deteriorated by 12bps to 0.83% reflecting deterioration across all countries, most notably in Spain
- Operating expenses decreased 31% to GBP632m reflecting restructuring charges of GBP129m in 2011 and related cost savings
Q3 12 compared to Q2 12
- Loss before tax increased by GBP10m to GBP59m driven by a decline in income reflecting the challenging economic environment in Europe, partially offset by cost savings
- Loans and advances to customers decreased 3% to GBP40.1bn reflecting the strategy to reduce the net funding mismatch. Customer deposits decreased 2% to GBP18.1bn principally reflecting competitive pricing pressures
Results by Business
Nine Months Nine Months
Ended Ended
Africa RBB 30.09.12 30.09.11
GBPm GBPm % Change
===================================== =========== =========== ========
Adjusted basis
Total income net of insurance claims 2,390 2,710 (12)
Credit impairment charges and other
provisions (501) (378) 33
===================================== =========== =========== ========
Net operating income 1,889 2,332 (19)
Operating expenses (1,564) (1,774) (12)
Other net income 5 3
===================================== =========== =========== ========
Adjusted profit before tax 330 561 (41)
Adjusting items
===================================== =========== =========== ========
Gains on acquisitions and disposals - 2
===================================== =========== =========== ========
Statutory profit before tax 330 563 (41)
Performance Measures
===================================== =========== =========== ========
Adjusted return on average equity 4.9% 9.6%
Adjusted return on average risk
weighted assets 0.9% 1.6%
Return on average equity 4.9% 9.7%
Return on average risk weighted
assets 0.9% 1.6%
Cost: income ratio 65% 65%
Loan loss rate (bps) 197 138
Balance Sheet Information 30.09.12 30.06.12
===================================== =========== =========== ========
Loans and advances to customers GBP32.5bn GBP34.1bn
at amortised cost
Customer deposits GBP21.9bn GBP22.3bn
2012 compared to 2011
- Profit before tax decreased 41% to GBP330m
- Higher credit impairment charges primarily in South African home loans recovery book
- Adverse currency movements reflecting depreciation of major African currencies against Sterling
- Income declined 12% to GBP2,390m principally reflecting currency movements and non recurrence of gains from the disposal of Group hedging instruments in Q3 11
- Excluding the impact of currency movements income is broadly in line
- Credit impairment charges increased 33% to GBP501m principally reflecting higher loss given default rates and higher levels of write-offs in the South African home loans recovery book
- Loan loss rate increased to 197bps (2011: 138bps)
- However 90 day arrears rate for home loans improved by 100bps to 2.20% reflecting improved new business and continuing low interest rate environment
- Operating expenses decreased by 12% to GBP1,564m reflecting currency movements and reduced costs in local currency
Q3 12 compared to Q2 12
- Profit before tax decreased 42% to GBP56m mainly reflecting higher operating costs driven by the timing of staff related and investment spend, while impairment charges in the South African home loans recovery book remained elevated
- Loans and advances to customers decreased 5% to GBP32.5bn reflecting adverse currency movements. Customer deposits decreased 2% to GBP21.9bn reflecting currency movements, partially offset by growth in local currency deposits in South Africa
Results by Business
Nine Months Nine Months
Ended Ended
Barclaycard 30.09.12 30.09.11
GBPm GBPm % Change
===================================== =========== =========== ========
Adjusted basis
Total income net of insurance claims 3,072 3,112 (1)
Credit impairment charges and other
provisions (714) (988) (28)
===================================== =========== =========== ========
Net operating income 2,358 2,124 11
Operating expenses (1,232) (1,201) 3
Other net income 24 26
===================================== =========== =========== ========
Adjusted profit before tax 1,150 949 21
Adjusting items
===================================== =========== =========== ========
Provision for PPI redress (150) (600)
Goodwill impairment - (47)
===================================== =========== =========== ========
Statutory profit before tax 1,000 302 231
Performance Measures
===================================== =========== =========== ========
Adjusted return on average equity 22.7% 18.4%
Adjusted return on average risk
weighted assets 3.4% 2.8%
Adjusted cost: income ratio 40% 39%
Return on average equity 19.5% 4.3%
Return on average risk weighted
assets 2.9% 0.8%
Cost: income ratio 45% 59%
Loan loss rate (bps) 291 423
Balance Sheet Information 30.09.12 30.06.12
===================================== =========== =========== ========
Loans and advances to customers GBP30.9bn GBP30.6bn
at amortised cost
Customer deposits GBP2.4bn GBP2.0bn
2012 compared to 2011
- Adjusted profit before tax improved 21% to GBP1,150m. Statutory profit before tax was GBP1,000m (2011: GBP302m) after GBP150m (2011: GBP600m) provision for PPI redress, including claim management costs, and goodwill impairment in 2011
- Solid profit growth within the UK and International businesses - Lower impairment reflecting improved delinquency performances - Strong returns with adjusted return on average equity improving to 22.7% (2011: 18.4%)
- Income remained in line with prior year at GBP3,072m (2011: GBP3,112m) reflecting continued growth across the business and contributions from 2011 portfolio acquisitions, offset by higher funding costs and non recurrence of gains from the disposal of hedging instruments in Q3 11
- Credit impairment charges decreased 28% to GBP714m reflecting lower charges in the European and US cards portfolios, driven by improved delinquency performances
- Loan loss rate reduced to 291bps (2011: 423bps)
- 30 day arrears rates for consumer cards in UK down 26bps to 2.46%, in the US down 76bps to 2.48% and in South Africa down 13bps to 4.93%
- Operating expenses, excluding the PPI provision and claims management costs, increased 3% to GBP1,232m reflecting portfolio acquisitions and investment spend
Q3 12 compared to Q2 12
- Adjusted profit before tax decreased 2% to GBP397m reflecting a non recurring impairment release in Q2 12. Profit before tax reduced GBP157m to GBP247m, reflecting an additional GBP150m provision for PPI redress
- Loans and advances to customers increased 1% to GBP30.9bn. Customer deposits increased GBP0.4bn to GBP2.4bn through deposit funding initiatives in the US and Germany
Results by Business
Nine Months Nine Months
Ended Ended
Investment Bank 30.09.12 30.09.11
GBPm GBPm % Change
======================================= =========== =========== ========
Adjusted and statutory basis
Fixed Income, Currency and Commodities 5,945 5,354 11
Equities and Prime Services 1,507 1,446 4
Investment Banking 1,497 1,521 (2)
Principal Investments 180 196 (8)
======================================= =========== =========== ========
Total income 9,129 8,517 7
Credit impairment charges and other
provisions (346) (3)
======================================= =========== =========== ========
Net operating income 8,783 8,514 3
Operating expenses (5,613) (5,831) (4)
Other net income 35 15
======================================= =========== =========== ========
Adjusted profit before tax and profit
before tax 3,205 2,698 19
Performance Measures
======================================= =========== =========== ========
Return on average equity 14.2% 12.0%
Return on average risk weighted
assets 1.6% 1.3%
Cost: income ratio 61% 68%
Cost: net operating income ratio 64% 68%
Compensation: income ratio 39% 46%
Loan loss rate (bps) 24 3
Balance Sheet Information 30.09.12 30.06.12
======================================= =========== =========== ========
Loans and advances to banks and GBP186.2bn GBP185.9bn
customers at amortised cost
Customer deposits GBP105.9bn GBP114.5bn
Assets contributing to adjusted GBP628.2bn GBP650.4bn
gross leverage
Risk weighted assets GBP180.4bn GBP190.6bn
2012 compared to 2011
- Profit before tax increased 19% to GBP3,205m, primarily driven by income growth of 7% and a reduction in operating expenses of 4% despite a GBP193m charge relating to the Investment Banking allocation of the GBP290m penalty arising from the industry wide investigation into the setting of inter-bank offered rates
- Total income increased 7% to GBP9,129m
- Fixed Income, Currency and Commodities (FICC) income improved 11% to GBP5,945m, reflecting higher contributions from the Rates, Commodities and Emerging Markets businesses, partially offset by lower contributions from Foreign Exchange
- Equities and Prime Services income increased 4% to GBP1,507m, reflecting improved performance in cash equities, despite subdued market volumes
- Investment Banking income was comparable to 2011 at GBP1,497m, with improved performance in financial advisory offset by reduced performance in equity underwriting given lower deal activity. Debt underwriting revenues were in line with the prior year
- Credit impairment charges of GBP346m (2011: GBP3m) primarily related to ABS CDO Super Senior positions and higher losses on single name exposures in H1 12. The prior year included a non recurring release of GBP223m
- Operating expenses decreased 4% to GBP5,613m, due to an 11% decline in total performance costs to GBP1,384m. Non-performance costs also decreased 1% to GBP4,229m whilst absorbing the GBP193m charge relating to the setting of inter-bank offered rates
- Cost to net operating income ratio of 64% (2011: 68%) within target range of 60% to 65%. The compensation to income ratio improved to 39% (2011: 46%)
- Return on average equity of 14.2% (2011: 12.0%) and return on average risk weighted assets of 1.6% (2011: 1.3%)
Results by Business
Q3 12 compared to Q2 12
- Profit before tax decreased 6% to GBP937m, with a 13% reduction in income partially offset by credit impairment charges decreasing to GBP23m (Q2 12: GBP248m). Operating expenses decreased 6% on the prior quarter driven by reduced non-performance costs
- Total income of GBP2,633m was down 13% on the strong performance in Q2 12 reflecting a reduction in FICC income of 20%, partially offset by a 26% increase in Equities and Prime Services. Investment Banking revenues were comparable to the prior quarter
- Assets contributing to adjusted gross leverage decreased 3% to GBP628bn reflecting decreases in cash and balances at central banks and trading portfolio assets, partially offset by an increase in reverse repurchase agreements
- Risk weighted assets decreased 5% to GBP180bn driven by business risk reductions, which includes legacy sell downs, and foreign exchange movements. The benefit of risk reduction was partially offset by increases from adopting revised guidance from the FSA requiring higher loss given default assumptions on sovereign exposures
Q3 12 compared to Q3 11
- Profit before tax increased 141% to GBP937m driven by a 17% increase in income and a significant reduction in credit impairment charges. Operating expenses decreased 4%, with a reduction of 9% in non-performance costs, more than offsetting an increase in the charge for bonuses deferred from prior years
- Total income was up 17% reflecting improved performance in FICC by 10%, Equities and Prime Services by 58% and Investment Banking by 25%
Results by Business
Nine Months Nine Months
Ended Ended
Corporate Banking 30.09.12 30.09.11
GBPm GBPm % Change
===================================== =========== =========== ========
Adjusted basis
Total income net of insurance claims 2,205 2,398 (8)
Credit impairment charges and other
provisions (635) (895) (29)
===================================== =========== =========== ========
Net operating income 1,570 1,503 4
Operating expenses (1,130) (1,337) (15)
Other net income 4 1
===================================== =========== =========== ========
Adjusted profit before tax 444 167 166
Adjusting items
===================================== =========== =========== ========
Provision for interest rate hedging
products redress (450) -
Losses on disposal of Barclays Bank
Russia - (64)
===================================== =========== =========== ========
Statutory (loss)/profit before tax (6) 103 (106)
Adjusted profit/(loss) before tax
by geographic segment
===================================== =========== =========== ========
UK 681 592 15
Europe (290) (434) (33)
Rest of the World 53 9
===================================== =========== =========== ========
Corporate Banking 444 167 166
Performance Measures
===================================== =========== =========== ========
Adjusted return on average equity 5.6% 2.1%
Adjusted return on average risk
weighted assets 0.6% 0.3%
Adjusted cost: income ratio 51% 56%
Return on average equity (0.7%) 1.0%
Return on average risk weighted
assets (0.0%) 0.1%
Cost: income ratio 72% 56%
Loan loss rate (bps) 126 164
Balance Sheet Information 30.09.12 30.06.12
===================================== =========== =========== ========
Loans and advances to customers GBP62.1bn GBP64.0bn
at amortised cost
Loans and advances to customers GBP17.5bn GBP17.3bn
at fair value
Customer deposits GBP91.4bn GBP88.5bn
2012 compared to 2011
- Adjusted profit before tax improved GBP277m to GBP444m, including a gain of GBP61m (2011: loss of GBP72m) on the net valuation of fair value loans. Statutory loss before tax was GBP6m (2011: GBP103m profit), after charging GBP450m provision for interest rate hedging products redress
- UK adjusted profit before tax improved 15% to GBP681m reflecting the gains on fair value loans and improved credit impairment partially offset by increased funding costs. UK statutory profit before tax decreased GBP361m to GBP231m after a GBP450m provision for interest rate hedging products redress
- Europe loss before tax improved GBP144m to GBP290m principally due to reduced credit impairment charges in Spain of GBP271m (2011: GBP415m), although credit conditions remain challenging, and improved operating expenses benefiting from progress in restructuring businesses
- Rest of the World adjusted profit before tax improved GBP44m to GBP53m reflecting lower operating expenses following the prior year restructuring and disposal of Barclays Bank Russia (BBR). Rest of the World statutory profit before tax improved GBP108m to GBP53m reflecting the prior year loss on disposal of BBR
Q3 12 compared to Q2 12
- Adjusted profit before tax declined 23% to GBP98m with lower income following restructuring certain non-UK businesses. Statutory profit before tax improved GBP421m to GBP98m, reflecting the GBP450m provision for interest rate hedging products redress in Q2 12
- Loans and advances to customers declined 3% to GBP62.1bn reflecting significant progress in restructuring businesses in Europe. Customer deposits increased 3% to GBP91.4bn primarily driven by growth in the UK
Results by Business
Nine Months Nine Months
Ended Ended
Wealth and Investment Management 30.09.12 30.09.11
GBPm GBPm % Change
====================================== =========== =========== ========
Adjusted and statutory basis
Total income net of insurance claims 1,334 1,295 3
Credit impairment charges and other
provisions (25) (31) (19)
====================================== =========== =========== ========
Net operating income 1,309 1,264 4
Operating expenses (1,109) (1,109) -
Other net expense - (2)
====================================== =========== =========== ========
Adjusted profit before tax and profit
before tax 200 153 31
Performance Measures
====================================== =========== =========== ========
Return on average equity 11.2% 10.7%
Return on average risk weighted
assets 1.6% 1.5%
Cost: income ratio 83% 86%
Loan loss rate (bps) 16 22
Balance Sheet Information 30.09.12 30.06.12
====================================== =========== =========== ========
Loans and advances to customers
at amortised cost GBP19.9bn GBP19.8bn
Customer deposits GBP52.2bn GBP50.0bn
Total client assets GBP177.6bn GBP176.1bn
2012 compared to 2011
- Profit before tax increased 31% to GBP200m
- Continue to execute strategic investment programme with a focus on building productive capacity and delivering a step change in the client experience
- Income increased by 3% to GBP1,334m driven by the High Net Worth businesses
- Operating expenses were flat as the continued cost of the strategic investment programme was offset by cost control initiatives
Q3 12 compared to Q2 12
- Profit before tax increased 30% to GBP79m, principally due to reduced operating expenses
- Client assets increased 1% to GBP177.6bn (30 June 2012: GBP176.1bn) principally reflecting net new assets in High Net Worth businesses
- Loans and advances to customers increased 1% to GBP19.9bn. Customer deposits increased 4% to GBP52.2bn
Results by Business
Nine Months Nine Months
Ended Ended
Head Office and Other Operations 30.09.12 30.09.11
GBPm GBPm
======================================= =========== ===========
Adjusted basis
Total income net of insurance claims 177 (238)
Credit impairment charges and other
provisions (5) 2
======================================= =========== ===========
Net operating income 172 (236)
Operating expenses (561) (319)
Other net income 19 -
======================================= =========== ===========
Adjusted loss before tax (370) (555)
Adjusting items
======================================= =========== ===========
Own credit (4,019) 2,971
Impairment and gain/(loss) on disposal
of BlackRock investment 227 (1,858)
Statutory (loss)/profit before tax (4,162) 558
2012 compared to 2011
- Adjusted loss before tax improved 33% to GBP370m
- Adjusted income improved to GBP177m (2011: loss of GBP238m), principally due to changes in the value of hedges relating to employee share awards. These were closed out during Q1 12
- Operating expenses increased to GBP561m (2011: GBP319m) due to higher costs relating to the Financial Services Compensation Scheme and a GBP97m charge relating to the allocation to Head Office and Other Operations of the GBP290m penalty arising from the industry wide investigation into the setting of interbank offered rates
- Statutory loss before tax was GBP4,162m (2011: GBP558m profit), including an own credit charge of GBP4,019m (2011: GBP2,971m gain) partially offset by the impact of the BlackRock investment disposal
Q3 12 compared to Q2 12
- Q3 12 adjusted loss before tax improved to GBP181m (Q2 12: GBP272m) due to a GBP115m reduction in operating expenses reflecting non recurrence of the penalty arising from the investigation into interbank offered rates recognised in Q2 12
Appendix I - Quarterly Results Summary
UK RBB Q312 Q212 Q112 Q411 Q311 Q211 Q111
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted basis
Total income net of insurance
claims 1,130 1,128 1,077 1,129 1,273 1,170 1,084
Credit impairment charges
and other provisions (76) (46) (76) (156) (105) (131) (144)
============================== ===== ===== ===== ===== ===== ===== =====
Net operating income 1,054 1,082 1,001 973 1,168 1,039 940
Operating expenses (1) (654) (671) (666) (752) (675) (622) (653)
Other net income/(expense) - 1 (1) 1 1 (1) 1
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted profit before tax 400 412 334 222 494 416 288
Adjusting items
============================== ===== ===== ===== ===== ===== ===== =====
Provision for PPI redress
(1) (550) - (300) - - (400) -
Statutory (loss)/profit
before tax (150) 412 34 222 494 16 288
Europe RBB
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted basis
Total income net of insurance
claims 219 243 243 247 375 309 295
Credit impairment charges
and other provisions (76) (85) (72) (83) (62) (47) (69)
============================== ===== ===== ===== ===== ===== ===== =====
Net operating income 143 158 171 164 313 262 226
Operating expenses (204) (211) (217) (291) (263) (368) (289)
Other net income 2 4 3 2 2 4 4
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted (loss)/profit before
tax (59) (49) (43) (125) 52 (102) (59)
Adjusting items
============================== ===== ===== ===== ===== ===== ===== =====
Goodwill impairment - - - (427) - - -
Statutory (loss)/profit
before tax (59) (49) (43) (552) 52 (102) (59)
Africa RBB
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted basis
Total income net of insurance
claims 765 795 830 861 940 906 864
Credit impairment charges
and other provisions (180) (214) (107) (88) (108) (126) (144)
============================== ===== ===== ===== ===== ===== ===== =====
Net operating income 585 581 723 773 832 780 720
Operating expenses (531) (485) (548) (505) (613) (586) (575)
Other net income 2 1 2 1 - 1 2
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted profit before tax 56 97 177 269 219 195 147
Adjusting items
============================== ===== ===== ===== ===== ===== ===== =====
Gains on acquisitions and
disposals - - - - 2 - -
============================== ===== ===== ===== ===== ===== ===== =====
Statutory profit before
tax 56 97 177 269 221 195 147
Barclaycard
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted basis
Total income net of insurance
claims 1,046 1,036 990 983 1,140 1,012 960
Credit impairment charges
and other provisions (254) (228) (232) (271) (340) (344) (304)
============================== ===== ===== ===== ===== ===== ===== =====
Net operating income 792 808 758 712 800 668 656
Operating expenses (1) (402) (412) (418) (458) (430) (400) (371)
Other net income 7 8 9 5 8 7 11
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted profit before tax 397 404 349 259 378 275 296
Adjusting items
============================== ===== ===== ===== ===== ===== ===== =====
Provision for PPI redress(1) (150) - - - - (600) -
Goodwill impairment - - - - - (47) -
============================== ===== ===== ===== ===== ===== ===== =====
Statutory profit/(loss)
before tax 247 404 349 259 378 (372) 296
1 The provision for PPI redress includes claims management costs relating to Q2 12 (UK RBB: GBP13m, Barclaycard: GBP15m) and Q1 12 (UK RBB: GBP11m, Barclaycard: GBP13m), previously recorded within operating expenses as a non-adjusting item.
Appendix I - Quarterly Results Summary
Investment Bank Q312 Q212 Q112 Q411 Q311 Q211 Q111
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ======= ======= ======= ======= ======= ======= =======
Adjusted and statutory basis
Fixed Income, Currency and
Commodities 1,581 1,968 2,396 971 1,438 1,715 2,201
Equities and Prime Services 534 423 550 305 338 563 545
Investment Banking 487 501 509 506 389 520 612
Principal Investments 31 140 9 36 89 99 8
===================================== ======= ======= ======= ======= ======= ======= =======
Total income 2,633 3,032 3,464 1,818 2,254 2,897 3,366
Credit impairment (charges)/releases
and other provisions (23) (248) (75) (90) (114) 80 31
===================================== ======= ======= ======= ======= ======= ======= =======
Net operating income 2,610 2,784 3,389 1,728 2,140 2,977 3,397
Operating expenses (1,680) (1,788) (2,145) (1,458) (1,758) (2,006) (2,067)
Other net income/(expense) 7 6 22 (3) 6 6 3
===================================== ======= ======= ======= ======= ======= ======= =======
Adjusted profit before tax
and profit before tax 937 1,002 1,266 267 388 977 1,333
Corporate Banking
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted basis
Total income net of insurance
claims 678 703 824 710 830 817 751
Credit impairment charges
and other provisions (210) (218) (207) (252) (283) (327) (285)
============================== ===== ===== ===== ===== ===== ===== =====
Net operating income 468 485 617 458 547 490 466
Operating expenses (376) (357) (397) (422) (436) (459) (442)
Other net income/(expense) 6 (1) (1) 1 2 2 (3)
============================== ===== ===== ===== ===== ===== ===== =====
Adjusted profit before tax 98 127 219 37 113 33 21
Adjusting items
============================== ===== ===== ===== ===== ===== ===== =====
Goodwill impairment - - - (123) - - -
Provision for interest rate
hedging products redress - (450) - - - - -
Losses on disposal - - - (9) - (64) -
============================== ===== ===== ===== ===== ===== ===== =====
Statutory profit/(loss)
before tax 98 (323) 219 (95) 113 (31) 21
Wealth and Investment Management
===================================== ======= ===== ======= ===== ======= ===== =====
Adjusted and statutory basis
Total income net of insurance
claims 442 441 451 449 447 426 422
Credit impairment charges
and other provisions (6) (12) (7) (10) (12) (9) (10)
===================================== ======= ===== ======= ===== ======= ===== =====
Net operating income 436 429 444 439 435 417 412
Operating expenses (358) (367) (384) (384) (369) (375) (365)
Other net income/(expense) 1 (1) - (1) (1) - (1)
===================================== ======= ===== ======= ===== ======= ===== =====
Adjusted profit before tax
and profit before tax 79 61 60 54 65 42 46
Head Office and Other Operations
===================================== ======= ===== ======= ===== ======= ===== =====
Adjusted basis
Total (expense)/income net
of insurance claims (41) (41) 259 15 (258) 12 8
Credit impairment (charges)/releases
and other provisions - (3) (2) (1) 1 (3) 4
===================================== ======= ===== ======= ===== ======= ===== =====
Net operating (expense)/income (41) (44) 257 14 (257) 9 12
Operating expenses (excluding
UK bank levy) (136) (251) (174) (144) (115) (124) (80)
UK bank levy - - - (325) - - -
Other net (expense)/income (4) 23 - - - - -
===================================== ======= ===== ======= ===== ======= ===== =====
Adjusted (loss)/profit before
tax (181) (272) 83 (455) (372) (115) (68)
Adjusting items
===================================== ======= ===== ======= ===== ======= ===== =====
Own credit (1,074) (325) (2,620) (263) 2,882 440 (351)
Impairment and gain/(loss)
on disposal of BlackRock
investment - 227 - - (1,800) (58) -
Gains on debt buy-backs - - - 1,130 - - -
(Losses)/gains on acquisitions
and disposals - - - (23) 1 (3) 2
===================================== ======= ===== ======= ===== ======= ===== =====
Statutory (loss)/profit
before tax (1,255) (370) (2,537) 389 711 264 (417)
Appendix II - Margins and Income by Geography
Analysis of Net Interest
Margin
Total RBB,
Wealth RBB, Corporate
Europe Africa Barclay- Corporate and Investment Corporate and Wealth
UK RBB RBB RBB card Banking Management and Wealth interest
margin margin margin(1) margin margin(1) margin margin income
Nine Months Ended
30.09.12 % % % % % % % GBPm
====================== ======== ======= ========== ======== ========== =============== =========== ===========
Customer asset margin/
interest income 1.09 0.82 3.25 9.34 1.18 0.64 2.11 5,025
Customer liability
margin/ interest
income 0.97 0.45 2.38 nm 1.07 1.12 1.11 2,320
Non-customer generated
margin/ interest
income 0.36 0.35 0.22 (0.66) 0.14 0.25 0.22 989
Net interest margin/
income 1.39 1.07 3.13 8.68 1.26 1.23 1.86 8,334
Average customer
assets
(GBPm) 123,217 41,241 34,084 32,072 68,048 19,325 317,987 n/a
Average customer
liabilities
(GBPm) 111,044 15,034 22,255 nm 81,833 49,182 279,348 n/a
Nine Months Ended
30.09.11
====================== ======== ======= ========== ======== ========== =============== =========== ===========
Customer asset margin/
interest income 1.25 0.91 2.93 9.59 1.53 0.78 2.23 5,303
Customer liability
margin/ interest
income 0.85 0.59 2.67 nm 0.91 0.97 1.03 2,077
Non-customer generated
margin/ interest
income 0.48 0.51 0.38 0.13 0.35 0.38 0.41 1,805
Net interest margin/
income 1.54 1.33 3.21 9.72 1.56 1.30 2.09 9,185
Average customer
assets
(GBPm) 117,540 43,693 39,178 29,973 69,881 17,143 317,408 n/a
Average customer
liabilities
(GBPm) 107,276 18,021 23,884 nm 76,249 43,957 269,387 n/a
- Net interest income for the RBB, Corporate Banking and Wealth and Investment Management businesses reduced 9% to GBP8,334m due to the reduction in contribution from Group structural hedging activities, including the non recurrence of GBP516m gains on disposal of hedging instruments recognised in Q3 11. Total customer generated interest income in these businesses was flat at GBP7,345m
- The RBB, Corporate Banking and Wealth and Investment Management net interest margin reduced 23bps to 186bps, principally due to the impact of reduced contributions from the Group structural hedging activities on non-customer generated margin, which reduced 19bps to 22bps
- Group net interest income including contributions for the Investment Bank and Head Office and Other Functions was GBP8,786m (2011: GBP9,237m)
- The total contribution from Group product and equity structural hedges reduced GBP1,503m to GBP1,296m, principally due to the non recurrence of gains on disposal of hedging instruments in Q3 11 of GBP1,000m
Income by Geographic Region(2) Adjusted(3) Statutory
30.09.12 30.09.11 30.09.12 30.09.11
GBPm GBPm % Change GBPm GBPm % Change
======================== ========= ========= ========= ========= ========= =========
UK 9,371 9,476 (1) 5,352 12,447 (57)
Europe 3,071 3,566 (14) 3,071 3,566 (14)
Americas 5,610 4,695 19 5,837 4,637 26
Africa and Middle East 3,401 3,784 (10) 3,401 3,784 (10)
Asia 894 779 15 894 779 15
======================== ========= ========= ========= ========= ========= =========
Total 22,347 22,300 - 18,555 25,213 (26)
1 2011 comparatives have been revised to reflect certain corporate banking activities previously reported in Africa RBB which are now included within Corporate Banking. Africa RBB comparatives have additionally been revised to include gross cheque advances and cheque deposits within average assets and average liabilities respectively where these were previously reported net.
2 Total income net of insurance claims based on counterparty location.
3 Adjusted income by geographic region excludesthe impact of an own credit charge of GBP4,019m (2011: gain of GBP2,971m) and a gain on disposal of strategic investment in BlackRock, Inc. of GBP227m (2011: loss of GBP58m).
Appendix III - Balance Sheet and Capital
Consolidated Summary Balance Sheet (Unaudited)
As at As at
30.09.12 30.06.12
Assets GBPm GBPm
========================================================= ========= =========
Cash, balances at central banks and items in the
course of collection 103,622 128,660
Trading portfolio assets 160,921 166,300
Financial assets designated at fair value 45,426 45,928
Derivative financial instruments 494,852 517,685
Available for sale financial investments 72,361 68,922
Loans and advances to banks 49,001 48,777
Loans and advances to customers 452,877 454,728
Reverse repurchase agreements and other similar
secured lending 194,665 174,392
Other assets 25,413 25,873
========================================================= ========= =========
Total assets 1,599,138 1,631,265
Liabilities
========================================================= ========= =========
Deposits and items in the course of collection due
to banks 91,445 96,138
Customer accounts 407,260 408,550
Repurchase agreements and other similar secured
borrowing 238,649 245,833
Trading portfolio liabilities 58,090 51,747
Financial liabilities designated at fair value 88,125 94,855
Derivative financial instruments 487,528 507,351
Debt securities in issue 124,786 124,968
Subordinated liabilities 21,801 22,089
Other liabilities 17,746 16,044
========================================================= ========= =========
Total liabilities 1,535,430 1,567,575
Shareholders' Equity
========================================================= ========= =========
Called up share capital and share premium 12,471 12,462
Other reserves 3,585 3,267
Retained earnings 38,239 38,476
========================================================= ========= =========
Shareholders' equity excluding non-controlling interests 54,295 54,205
Non-controlling interests 9,413 9,485
========================================================= ========= =========
Total shareholders' equity 63,708 63,690
Total liabilities and shareholders' equity 1,599,138 1,631,265
Appendix III - Balance Sheet and Capital
Key Capital Ratios As at 30.09.12 As at 30.06.12 =========================================================== ============== ============== Core tier 1 11.2% 10.9% Tier 1 13.7% 13.3% Total capital 16.9% 16.5% Capital Resources GBPm GBPm =========================================================== ============== ============== Shareholders' equity (excluding non-controlling interests) per balance sheet: 54,295 54,205 Non-controlling interests per balance sheet 9,413 9,485 - Less: Other tier 1 capital - preference shares (6,214) (6,225) - Less: Other tier 1 capital - Reserve Capital Instruments - - - Less: Non-controlling tier 2 capital (548) (564) Other regulatory adjustments (242) (171) Regulatory adjustments and deductions: Own credit cumulative charge/(gain) (net of tax) 323 (492) Defined benefit pension adjustment (2,297) (2,260) Unrealised (gains)/losses on available for sale debt securities (433) 83 Unrealised gains on available for sale equity (recognised as tier 2 capital) (88) (95) Cash flow hedging reserve (2,049) (1,676) Goodwill and intangible assets (7,564) (7,574) 50% excess of expected losses over impairment (net of tax) (519) (500) 50% of securitisation positions (1,550) (1,663) Other regulatory adjustments (20) 23 =========================================================== ============== ============== Core tier 1 capital 42,507 42,576 Other tier 1 capital: Preference shares 6,214 6,225 Tier 1 notes(1) 512 521 Reserve Capital Instruments 2,875 2,874 Regulatory adjustments and deductions: 50% of material holdings (243) (285) 50% tax on excess of expected losses over impairment 111 100 =========================================================== ============== ============== Total tier 1 capital 51,976 52,011 Tier 2 capital: Undated subordinated liabilities 1,647 1,648 Dated subordinated liabilities 11,872 12,488 Non-controlling tier 2 capital 548 564 Reserves arising on revaluation of property 22 21 Unrealised gains on available for sale equity 88 95 Collectively assessed impairment allowances 1,844 1,783 Tier 2 deductions: 50% of material holdings (243) (285) 50% excess of expected losses over impairment (gross of tax) (630) (601) 50% of securitisation positions (1,550) (1,663) Total capital regulatory adjustments and deductions: Investments that are not material holdings or qualifying holdings (1,199) (1,209) Other deductions from total capital (475) (565) =========================================================== ============== ============== Total regulatory capital 63,900 64,287 1 Tier 1 notes are included in subordinated liabilities in the consolidated balance sheet.
Appendix III - Balance Sheet and Capital
Total Assets by Risk Weighted Assets
Business by Business
Assets and Risk Weighted Assets As at As at As at As at
by Business 30.09.12 30.06.12 30.09.12 30.06.12
GBPm GBPm GBPm GBPm
================================= ========= ========= ========= =========
UK RBB 133,750 130,776 37,305 36,038
Europe RBB 47,201 48,109 16,055 16,563
Africa RBB 45,788 47,398 26,846 27,909
Barclaycard 36,103 34,596 33,573 33,149
Investment Bank 1,188,580 1,225,409 180,415 190,553
Corporate Banking 85,753 87,758 64,349 69,328
Wealth and Investment Management 22,418 22,205 14,095 13,998
Head Office and Other Functions 39,545 35,014 6,004 2,685
================================= ========= ========= ========= =========
Total 1,599,138 1,631,265 378,642 390,223
As at As at
Balance Sheet Leverage 30.09.12 30.06.12
GBPm GBPm
=================================================== ========= ==========
Total assets per balance sheet(1) 1,599,138 1,631,265
Counterparty netting (411,440) (425,616)
Collateral on derivatives (48,142) (51,421)
Net settlement balances and cash collateral (100,072) (97,181)
Goodwill and intangible assets (7,859) (7,861)
Customer assets held under investment contracts(2) (1,570) (1,661)
=================================================== ========= ==========
Adjusted total tangible assets 1,030,055 1,047,525
Total qualifying Tier 1 capital 51,976 52,011
=================================================== ========= ==========
Adjusted gross leverage 20x 20x
Adjusted gross leverage (excluding liquidity pool) 17x 17x
Ratio of total assets to shareholders' equity 25x 26x
Ratio of total assets to shareholders' equity
(excluding liquidity pool) 23x 23x
- Barclays continues to manage its balance sheet within limits and targets for balance sheet usage
- Adjusted gross leverage remained stable at 20x with qualifying Tier 1 capital remaining broadly flat and adjusted total tangible assets down 2%
- During Q3 12, the ratio moved in a range from 20x to 21x (2012 year to date: 20x to 23x, Full Year 2011: 20x to 23x) primarily due to fluctuations in collateralised reverse repurchase lending and high quality trading portfolio assets
- Adjusted total tangible assets include cash and balances at central banks of GBP100.9bn (30 June 2012: GBP126.1bn). Excluding these balances, the balance sheet leverage would be 18x (30 June 2012: 18x). Excluding the whole liquidity pool, leverage would be 17x (30 June 2012: 17x)
- The ratio of total assets to total shareholders' equity was 25x (30 June 2012: 26x) and during Q3 12 moved within a month end range of 25x to 26x (2012 Year to date: 25x to 28x, Full Year 2011: 24x to 28x), driven by fluctuations noted above and changes in gross interest rate derivatives and settlement balances
1 Includes Liquidity Pool of GBP160bn (30 June 2012: GBP170bn).
2 Comprising financial assets designated at fair value and associated cash balances.
Appendix III - Balance Sheet and Capital
Retail and Wholesale Loans and Advances to Customers and Banks
CRLs %
Gross Impairment L&A Net Credit of Gross Loan Impairment Loan Loss
As at 30.09.12 L&A Allowance of Impairment Risk loans L&A Charges(1) Rate
GBPm GBPm GBPm GBPm GBPm GBPm bps
=================== ======= ========== ============== =========== ========= =============== =========
Total retail 241,655 4,854 236,801 9,206 3.8 1,490 82
Wholesale -
customers 220,948 4,872 216,076 9,922 4.5 1,162 70
Wholesale -
banks 49,039 38 49,001 - - (12) (3)
=================== ======= ========== ============== =========== ========= =============== =========
Total wholesale 269,987 4,910 265,077 9,922 3.7 1,150 57
Loans and advances
at amortised
cost 511,642 9,764 501,878 19,128 3.7 2,640 69
Loans and advances
held at fair
value 23,013 na 23,013
=================== ======= ========== ==============
Total loans
and advances 534,655 9,764 524,891
As at 30.06.12
=================== ======= ========== ============== =========== ========= =============== =========
Total retail 240,903 5,021 235,882 9,545 4.0 978 82
Wholesale -
customers 223,719 4,873 218,846 10,161 4.5 842 76
Wholesale -
banks 48,829 52 48,777 35 0.1 2 1
=================== ======= ========== ============== =========== ========= =============== =========
Total wholesale 272,548 4,925 267,623 10,196 3.7 844 62
Loans and advances
at amortised
cost 513,451 9,946 503,505 19,741 3.8 1,822 71
Loans and advances
held at fair
value 24,256 na 24,256
=================== ======= ========== ==============
Total loans
and advances 537,707 9,946 527,761
Retail Loans and Advances at Amortised Cost
CRLs %
Impairment L&A Net Credit of Gross Loan Impairment Loan Loss
As at 30.09.12 Gross L&A Allowance of Impairment Risk Loans L&A Charges(4) Rates
GBPm GBPm GBPm GBPm % GBPm bps
===================== ========= ========== ============== =========== ========= =============== =========
UK RBB 124,673 1,352 123,321 2,629 2.1 167 18
Europe RBB(2) 40,970 693 40,277 1,856 4.5 233 76
Africa RBB 24,722 753 23,969 1,870 7.6 374 202
Barclaycard 32,162 1,826 30,336 2,262 7.0 694 288
Corporate Banking(3) 1,093 136 957 140 12.8 1 12
Wealth and
Investment
Management 18,035 94 17,941 449 2.5 21 16
===================== ========= ========== ============== =========== ========= =============== =========
Total 241,655 4,854 236,801 9,206 3.8 1,490 82
As at 30.06.12
===================== ========= ========== ============== =========== ========= =============== =========
UK RBB 122,284 1,403 120,881 2,713 2.2 100 16
Europe RBB(2) 42,198 721 41,477 1,833 4.3 157 75
Africa RBB 25,591 770 24,821 2,087 8.2 257 202
Barclaycard 31,908 1,890 30,018 2,321 7.3 446 281
Corporate Banking(3) 1,207 145 1,062 145 12.0 1 17
Wealth and
Investment
Management 17,715 92 17,623 446 2.5 17 19
===================== ========= ========== ============== =========== ========= =============== =========
Total 240,903 5,021 235,882 9,545 4.0 978 82
1 Loan impairment charges, comprising impairment on loans and advances and charges in respect of undrawn facilities and guarantees.
2 Includes loans and advances to business customers. 3 Primarily comprises retail portfolios in India and UAE. 4 Loan impairment charge as at June 2012 is the charge incurred over the period of 6 months.
Appendix III - Balance Sheet and Capital
Wholesale Loans and Advances at Amortised
Cost(1)
CRLs %
Gross Impairment L&A Net Credit of Gross Loan Impairment Loan Loss
As at 30.09.12 L&A Allowance of Impairment Risk Loans L&A Charges Rates
GBPm GBPm GBPm GBPm % GBPm bps
===================== ======== ========== ============== =========== ========= =============== =========
UK RBB 2,909 63 2,846 236 8.1 31 142
Africa RBB 9,342 298 9,044 811 8.7 128 183
Barclaycard(2) 606 7 599 3 0.5 21 463
Investment
Bank(3) 188,684 2,442 186,242 4,555 2.4 344 24
Corporate Banking 64,779 2,029 62,750 3,978 6.1 621 128
- UK 51,525 405 51,120 1,303 2.5 213 55
- Europe 8,390 1,525 6,865 2,523 30.1 406 646
- Rest of World 4,864 99 4,765 152 3.1 2 5
Wealth and
Investment
Management 2,383 53 2,330 320 13.4 4 22
Head Office
and Other Functions 1,284 18 1,266 19 1.5 1 10
===================== ======== ========== ============== =========== ========= =============== =========
Total 269,987 4,910 265,077 9,922 3.7 1,150 57
As at 30.06.12
===================== ======== ========== ============== =========== ========= =============== =========
UK RBB 2,844 66 2,778 241 8.5 22 156
Africa RBB 9,952 278 9,674 839 8.4 64 129
Barclaycard(2) 589 7 582 5 0.8 14 478
Investment
Bank(3) 188,414 2,494 185,920 4,631 2.5 324 35
Corporate Banking 67,034 2,010 65,024 4,117 6.1 417 125
- UK(4) 52,404 433 51,971 1,243 2.4 143 55
- Europe(4) 9,106 1,474 7,632 2,714 29.8 273 602
- Rest of World(4) 5,524 103 5,421 160 2.9 1 5
Wealth and
Investment
Management 2,441 52 2,389 329 13.5 2 16
Head Office
and Other Functions 1,274 18 1,256 34 2.7 1 16
===================== ======== ========== ============== =========== ========= =============== =========
Total 272,548 4,925 267,623 10,196 3.7 844 62
1 Loans and advances to business customers in Europe RBB are included in the Retail Loans and Advances to Customers at Amortised Cost table on page 25.
2 Barclaycard wholesale loans and advances represent corporate credit and charge cards.
3 Investment Bank gross loans and advances include cash collateral and settlement balances of GBP117bn as at 30 September 2012 and GBP111bn as at 30 June 2012. Excluding these balances CRLs as a proportion of gross loans and advances was 6.35% (30 June 2012: 5.98% respectively).
4 Balances revised following a reallocation of GBP1,361m from UK to Europe (GBP390m) and Rest of World (GBP971m).
Appendix IV - Group Exposures to Selected Countries
Group Exposures to Selected Eurozone Countries
Direct credit and market risk exposures
- The following table shows Barclays net exposure to those Eurozone countries monitored internally as being higher risk and the subject of particular management focus. Detailed analysis on these countries is on pages 29 to 34. The basis of preparation is consistent with that described in the H1 2012 Results Announcement. Net exposures are shown as they provide a relevant measure of counterparty credit risk
Total
net on- Contingent
Other balance liabilities
Financial Residential retail sheet and Total
As at 30.09.12 Sovereign institutions Corporate mortgages lending exposure commitments exposure
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ========= ============ ========= =========== ======= ======== =========== ========
Spain 2,165 2,866 4,175 13,261 2,815 25,282 3,195 28,477
Italy 1,946 298 1,790 15,238 1,991 21,263 2,836 24,099
Portugal 627 67 2,190 3,436 1,752 8,072 2,623 10,695
Ireland 10 3,790 1,023 78 105 5,006 1,518 6,524
Cyprus 8 3 133 48 18 210 120 330
Greece 1 1 59 6 16 83 14 97
As at 30.06.12
=============== ========= ============ ========= =========== ======= ======== =========== ========
Spain 2,207 1,082 5,117 13,645 2,988 25,039 3,244 28,283
Italy 2,551 270 2,500 15,447 2,134 22,902 2,616 25,518
Portugal 588 45 2,415 3,510 1,879 8,437 2,740 11,177
Ireland 211 4,222 1,109 91 105 5,738 1,570 7,308
Cyprus 8 6 130 51 6 201 122 323
Greece 1 1 59 8 19 88 20 108
Exposures to other Eurozone countries
- Barclays has net exposures to other Eurozone countries as set out below. Individual countries that have an on-balance sheet exposure of less than GBP1bn are reported in aggregate under Other
Total net
on- Contingent
Other balance liabilities
Financial Residential retail sheet and Total
As at 30.09.12 Sovereign institutions Corporate mortgages lending exposure commitments exposure
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ========= ============ ========= =========== ======= ========= =========== ========
France 3,544 6,072 3,584 2,518 204 15,922 7,497 23,419
Germany 280 4,841 2,832 24 1,645 9,622 6,406 16,028
Netherlands 2,599 5,039 2,012 15 66 9,731 1,837 11,568
Luxembourg 2 3,965 581 105 49 4,702 748 5,450
Belgium 2,618 13 377 9 2 3,019 1,558 4,577
Austria 1,437 279 194 5 - 1,915 97 2,012
Finland 1,122 149 45 2 - 1,318 451 1,769
Other 183 6 34 24 50 297 23 320
As at 30.06.12
=============== ========= ============ ========= =========== ======= ========= =========== ========
France 3,867 4,350 3,432 2,612 267 14,528 6,949 21,477
Germany 1,170 5,377 2,985 26 1,605 11,163 6,457 17,620
Netherlands 2,513 4,646 1,857 16 23 9,055 1,918 10,973
Luxembourg 24 3,104 551 100 91 3,870 760 4,630
Belgium 2,670 88 303 10 4 3,075 1,660 4,735
Austria 675 300 178 5 1 1,159 182 1,341
Finland 586 133 50 3 - 772 431 1,203
Other 186 3 41 27 42 299 48 347
Appendix IV - Group Exposures to Selected Countries
Credit Derivatives Referencing Eurozone Sovereign Debt
- The Group enters into credit mitigation arrangements (principally credit default swaps and total return swaps) primarily for risk management purposes for which the reference asset is government debt. These generally have the net effect of reducing the Group's exposure in the event of sovereign default
As at 30.09.12 Spain Italy Portugal Ireland Cyprus Greece
GBPm GBPm GBPm GBPm GBPm GBPm
================================= ======= ======= ======== ======= ====== ======
Fair value
- Bought 245 361 139 61 1 -
- Sold (242) (297) (131) (74) (1) -
================================= ======= ======= ======== ======= ====== ======
Net derivative fair value 3 64 8 (13) - -
Contract notional amount
- Bought (2,507) (3,901) (1,173) (953) (4) -
- Sold 2,457 3,757 1,016 1,048 4 -
================================= ======= ======= ======== ======= ====== ======
Net derivative notional amount (50) (144) (157) 95 - -
Net (protection)/exposure from
credit derivatives in the event
of sovereign default (notional
less fair value) (47) (80) (149) 82 - -
- The net derivative notional amount disclosed represents a reduction in exposures and should be considered alongside the direct exposures as disclosed in the following pages
- In addition, the Group has indirect sovereign exposure through the guarantee of certain savings and investment funds, which hold a proportion of their assets in sovereign debt. As at 30 September 2012, the net liability in respect of these guarantees was GBP34m (30 June 2012: GBP45m)
Eurozone balance sheet funding mismatches
- Redenomination risk is the risk of financial loss to the Group should one or more countries exit from the Euro, leading to the devaluation of local balance sheet assets and liabilities. The Group is directly exposed to redenomination risk where there is a mismatch between the level of locally denominated assets and funding
- Within Barclays, retail banking, corporate banking and wealth activities in the Eurozone are generally booked locally within each country. Locally booked external customer assets and liabilities, primarily loans and advances to customers and customer deposits, are predominantly denominated in Euros. The remaining funding mismatch between local external assets and liabilities is met through local funding secured against customer loans and advances, with any residual mismatch funded through the Group
- Barclays continues to monitor and take mitigating actions to limit the potential impact of the Eurozone volatility on local balance sheet funding
- During Q3 12, mitigating actions have been taken to reduce local net funding mismatches in particular through the attraction of corporate deposits in Spain and reducing corporate lending in Spain and Portugal. As a result the Group reduced the aggregate net local balance sheet funding mismatch from GBP2.5bn to GBP0.1bn in Spain and from GBP3.7bn to GBP3.3bn in Portugal
- In Italy net funding by the Group reduced from GBP11.9bn to GBP9.6bn during Q3 12. Collateral is available to support additional secured funding in Italy should the risk of redenomination increase
- Direct exposure to Greece is very small with negligible net funding required from Group. For Ireland there is no local balance sheet funding requirement by the Group as total liabilities in this country exceed total assets
Appendix IV - Group Exposures to Selected Countries
Spain Trading Portfolio Derivatives Designated
Fair Value
through Trading Trading Net at FV Total Total
Profit and
Loss Portfolio Portfolio Trading Gross Gross Cash Net through as at as at
Assets Liabilities Portfolio Assets Liabilities Collateral Derivatives P&L 30.09.12 30.06.12
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============= ========= =========== ========= ====== =========== ========== =========== ======= ======== ========
Sovereign 1,101 (849) 252 32 (32) - - - 252 232
Financial
institutions 2,195 (156) 2,039 7,936 (7,383) (553) - 155 2,194 367
Corporate 215 (209) 6 535 (208) - 327 304 637 1,291
Total
Available for Sale Assets as
Fair Value through Equity at 30.09.12(1) as at
==============================
Cost AFS Reserve Total 30.06.12
GBPm GBPm GBPm GBPm
Sovereign 1,954 (69) 1,885 1,926
Financial
institutions 490 (12) 478 467
Corporate 6 - 6 5
Held at Amortised Cost Loans and Advances as at 30.09.12 Total
=================================
Impairment as at
Gross Allowances Total 30.06.12
GBPm GBPm GBPm GBPm
======================= ======= ========== ======= ========
Sovereign 28 - 28 49
Financial institutions 208 (14) 194 248
Residential
mortgages 13,355 (94) 13,261 13,645
Corporate 4,636 (1,104) 3,532 3,821
Other retail
lending 2,945 (130) 2,815 2,988
Total Total
Contingent Liabilities and
Commitments as at as at
30.09.12 30.06.12
GBPm GBPm
======================= ======== ========
Sovereign - 162
Financial institutions 102 17
Residential
mortgages 15 14
Corporate 1,953 2,027
Other retail
lending 1,125 1,024
- Sovereign
- Largely AFS government bonds. No impairment and GBP69m (30 June 2012: GBP158m) loss held in AFS reserve
- Financial institutions
- GBP2,194m (30 June 2012: GBP367m) held at fair value through profit and loss, predominantly traded equity securities that are fully hedged by total return swaps with non-Spanish counterparties
- GBP478m (30 June 2012: GBP467m) AFS assets with GBP12m (30 June 2012: GBP28m) loss held in AFS reserve
- Residential mortgages
- Fully secured on residential property with average marked to market LTV of 63.8% (30 June 2012: 62.7%), which is reflected in the CRL coverage of 30% (30 June 2012: 26%)
- 90 day arrears rates have remained stable at 0.7% during Q3 12 while annualised loan loss rates have marginally increased to 45bps (30 June 2012: 43bps)
1 'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
Appendix IV - Group Exposures to Selected Countries
- Corporate
- Net lending to corporates of GBP3,532m (30 June 2012: GBP3,821m) with CRLs of GBP1,870m (30 June 2012: GBP2,005m), impairment allowance of GBP1,104m (30 June 2012: GBP1,082m) and CRL coverage of 59% (30 June 2012: 54%)
- Net lending to property and construction industry of GBP1,223m (30 June 2012: GBP1,556m) largely secured on real estate collateral, with CRLs of GBP1,475m (30 June 2012: GBP1,364m), impairment allowance of GBP852m (30 June 2012: GBP795m) and CRL coverage of 58% (30 June 2012: 58%)
- Balances on early warning lists peaked in September 2009. Portfolio kept under close review and impairment recognised as appropriate
- Corporate impairment in Spain was at its highest level in H1 10 when commercial property declines were reflected earlier in the cycle
- GBP418m (30 June 2012: GBP368m) Investment Bank lending to multinational and large national corporates, which continues to perform
- Other retail lending
- GBP1,019m (30 June 2012: GBP1,045m) credit cards and unsecured loans. Arrears and charge off rates in credit cards and unsecured loans increased marginally in Q3 12
- GBP1,447m (30 June 2012: GBP1,542m) lending to small and medium enterprises (SMEs), largely secured against commercial property
Appendix IV - Group Exposures to Selected Countries
Italy Trading Portfolio Derivatives Designated
Fair Value
through Trading Trading Net at FV Total Total
Profit and
Loss Portfolio Portfolio Trading Gross Gross Cash Net through as at as at
Assets Liabilities Portfolio Assets Liabilities Collateral Derivatives P&L 30.09.12 30.06.12
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============= ========= =========== ========= ====== =========== ========== =========== ======= ======== ========
Sovereign 2,313 (2,249) 64 1,383 (1,118) - 265 2 331 598
Financial
institutions 144 (113) 31 7,169 (5,444) (1,725) - 124 155 129
Corporate 288 (204) 84 648 (440) (17) 191 224 499 415
Total
Available for Sale Assets as
Fair Value through Equity at 30.09.12(1) as at
====== =======================================================
Cost AFS Reserve Total 30.06.12
GBPm GBPm GBPm GBPm
============== ===== ===== ====== ==== ====== ===== ====== ===== ====== ========
Sovereign 1,614 1 1,615 1,940
Financial
institutions 127 2 129 127
Corporate 29 2 31 30
Held at Amortised Cost Loans and Advances as at 30.09.12 Total
=================================
Impairment as at
Gross Allowances Total 30.06.12
GBPm GBPm GBPm GBPm
=========================== ======= ========== ======= ========
Sovereign - - - 13
Financial institutions 14 - 14 14
Residential
mortgages 15,338 (100) 15,238 15,447
Corporate 1,369 (109) 1,260 2,055
Other retail
lending 2,133 (142) 1,991 2,134
Total Total
Contingent Liabilities and
Commitments as at as at
30.09.12 30.06.12
GBPm GBPm
======================= ======== ========
Financial institutions 102 13
Residential
mortgages 55 60
Corporate 1,871 1,668
Other retail
lending 808 875
- Sovereign
- Predominantly GBP1,615m (30 June 2012: GBP1,940m) AFS government bonds with no impairment or loss in the AFS reserve
- Residential mortgages
- Fully secured on residential property with average marked to market LTVs of 46.3% (30 June 2012: 46.5%)
- 90 day arrears rates at 1.1% (30 June 2012: 1.0%) and annualised loan loss rates of 18bps (30 June 2012: 17bps) remained broadly stable
- CRL coverage of 23% (30 June 2012: 23%)
- Corporate
- Net loans and advances of GBP1,260m (30 June 2012: GBP2,055m), which are focused on large corporate clients with very limited exposure to the property sector
- Balances in early warning lists were broadly stable since December 2011
- Other retail lending
- GBP1,397m (30 June 2012: GBP1,503m) Italian salary advance loans (repayment deducted at source by qualifying employers and Barclays is insured in the event of termination of employment or death). During Q3 12, arrears rates have deteriorated while charge off rates have improved
- GBP417m (30 June 2012: GBP432m) credit cards and other unsecured loans. During Q3 12, arrears rates have improved while charge off rates have deteriorated
1 'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
Appendix IV - Group Exposures to Selected Countries
Portugal Trading Portfolio Derivatives Designated
Fair Value
through Trading Trading Net at FV Total Total
Profit and
Loss Portfolio Portfolio Trading Gross Gross Cash Net through as at as at
Assets Liabilities Portfolio Assets Liabilities Collateral Derivatives P&L 30.09.12 30.06.12
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============= --------- ----------- --------- ------ ----------- ---------- ----------- ------- -------- ========
Sovereign 130 (117) 13 237 (237) - - - 13 -
Financial
institutions 22 (6) 16 284 (177) (107) - - 16 12
Corporate 46 (8) 38 441 (209) (5) 227 - 265 262
Total
Fair Value through Equity Available for Sale Assets as as at
at 30.09.12(1)
Cost AFS Reserve Total 30.06.12
GBPm GBPm GBPm GBPm
Sovereign 592 (15) 577 550
Financial
institutions 2 - 2 2
Corporate 436 (1) 435 534
Held at Amortised Cost Loans and Advances as at 30.09.12 Total
Impairment as at
Gross Allowances Total 30.06.12
GBPm GBPm GBPm GBPm
--------------------------- ------ ---------- ------ ========
Sovereign 37 - 37 38
Financial institutions 49 - 49 31
Residential
mortgages 3,461 (25) 3,436 3,510
Corporate 1,744 (254) 1,490 1,619
Other retail
lending 1,944 (192) 1,752 1,879
Total Total
Contingent Liabilities and
Commitments as at as at
30.09.12 30.06.12
GBPm GBPm
======================= -------- --------
Sovereign - 4
Financial institutions 1 8
Residential
mortgages 29 39
Corporate 1,015 1,240
Other retail
lending 1,578 1,449
- Sovereign
- Largely AFS government bonds. No impairment and GBP15m (30 June 2012: GBP56m) loss held in the AFS reserve
- Residential mortgages
- Fully secured on residential property with average marked to market LTVs of 76.6% (30 June 2012: 73.1%)
- 90 day arrears rates remained broadly stable at 0.6% (Jun 12: 0.6%) while annualised loan loss rates improved to 62bps (30 June 2012: 76bps)
- CRL coverage of 21% (30 June 2012: 21%)
- Corporate
- Net lending to corporates of GBP1,490m (30 June 2012: GBP1,619m), with CRLs of GBP442m (30 June 2012: GBP512m), impairment allowance of GBP254m (30 June 2012: GBP230m) and CRL coverage of 57% (30 June 2012: 45%)
- Net lending to property and construction industry of GBP385m (30 June 2012: GBP306m) secured, in part, on real estate collateral, with CRLs of GBP258m (30 June 2012: GBP240m), impairment allowance of GBP120m (30 June 2012: GBP118m) and CRL coverage of 46% (30 June 2012: 49%)
- Other retail lending
- GBP963m (30 June 2012: GBP988m) credit cards and unsecured loans. During Q3 12, arrears rates in cards and unsecured portfolios have improved while charge off rates have marginally deteriorated
- CRL coverage of 74% (30 June 2012: 65%) driven by credit cards and unsecured loans exposure
1 'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
Appendix IV - Group Exposures to Selected Countries
Ireland Trading Portfolio Derivatives Designated
Fair Value
through Trading Trading Net at FV Total Total
Profit and
Loss Portfolio Portfolio Trading Gross Gross Cash Net through as at as at
Assets Liabilities Portfolio Assets Liabilities Collateral Derivatives P&L 30.09.12 30.06.12
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============= --------- ----------- --------- ------ ----------- ---------- ----------- ------- -------- ========
Sovereign 61 (61) - - - - - 2 2 -
Financial
institutions 977 (29) 948 4,805 (3,917) (888) - 491 1,439 1,795
Corporate 112 (50) 62 282 (70) (117) 95 77 234 238
Total
Available for Sale Assets as
Fair Value through Equity at 30.09.12(1) as at
Cost AFS Reserve Total 30.06.12
GBPm GBPm GBPm GBPm
-------------- ----- ----- ------ ---- ------- ------ -------- ------ ------ ========
Sovereign 8 - 8 211
Financial
institutions 44 2 46 29
Corporate 3 - 3 3
Held at Amortised Cost Loans and Advances as at 30.09.12 Total
Impairment as at
Gross Allowances Total 30.06.12
GBPm GBPm GBPm GBPm
--------------------------- ------ ---------- ------ ========
Financial institutions 2,462 (157) 2,305 2,398
Residential
mortgages 88 (10) 78 91
Corporate 795 (9) 786 868
Other retail
lending 105 - 105 105
Total Total
Contingent Liabilities and
Commitments as at as at
30.09.12 30.06.12
GBPm GBPm
======================= -------- --------
Financial institutions 697 548
Corporate 810 1,013
Other retail
lending 11 9
- Sovereign
- AFS exposure reduced to GBP8m (30 June 2012: GBP211m) due to the disposal of government bonds held for the purposes of interest rate hedging and liquidity, which have been replaced by bonds with alternative counterparties
- Financial institutions
- Exposure focused on financial institutions with investment grade credit ratings - Exposure to Irish banks amounted to GBP68m (30 June 2012: GBP82m)
- GBP1.2bn (30 June 2012: GBP0.9bn) of loans relate to issuers domiciled in Ireland whose principal business and exposures are outside of Ireland
- Corporate
- GBP786m (30 June 2012: GBP868m) net loans and advances, including a significant proportion to other multinational entities domiciled in Ireland, whose principal businesses and exposures are outside of Ireland
- The portfolio continues to perform and has not been impacted materially by the decline in the property sector
1 'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
Appendix IV - Group Exposures to Selected Countries
Greece Trading Portfolio Derivatives Designated
Fair Value
through Trading Trading Net at FV Total Total
Profit and
Loss Portfolio Portfolio Trading Gross Gross Cash Net through as at as at
Assets Liabilities Portfolio Assets Liabilities Collateral Derivatives P&L 30.09.12 30.06.12
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============= --------- ----------- --------- ------ ----------- ---------- ----------- ------- -------- ========
Sovereign 1 (1) - - - - - - - -
Financial
institutions 1 - 1 1,227 (333) (894) - - 1 1
Corporate 1 - 1 1 - - 1 - 2 2
Total
Available for Sale Assets as
Fair Value through Equity at 30.09.12(1) as at
Cost AFS Reserve Total 30.06.12
GBPm GBPm GBPm GBPm
----------------------- ----------- ----------- ------------ ========
Sovereign 1 - 1 1
Held at Amortised Cost Loans and Advances as at 30.09.12 Total
Impairment as at
Gross Allowances Total 30.06.12
GBPm GBPm GBPm GBPm
--------------------------- ----- ---------- ----- ========
Residential
mortgages 6 - 6 8
Corporate 57 - 57 57
Other retail
lending 25 (9) 16 19
Total Total
Contingent Liabilities and
Commitments as at as at
30.09.12 30.06.12
GBPm GBPm
============= -------- --------
Corporate 3 3
Other retail
lending 11 17
Cyprus Trading Portfolio Derivatives Designated
Fair Value
through Trading Trading Net at FV Total Total
Profit and
Loss Portfolio Portfolio Trading Gross Gross Cash Net through as at as at
Assets Liabilities Portfolio Assets Liabilities Collateral Derivatives P&L 30.09.12 30.06.12
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============= --------- ----------- --------- ------ ----------- ---------- ----------- ------- -------- ========
Sovereign 1 - 1 - - - - - 1 1
Financial
institutions 3 - 3 94 (44) (50) - - 3 6
Corporate 8 - 8 15 - - 15 - 23 15
Held at Amortised Cost Loans and Advances as at 30.09.12 Total
Impairment as at
Gross Allowances Total 30.06.12
GBPm GBPm GBPm GBPm
------------- ----- ---------- ----- ========
Sovereign 7 - 7 7
Residential
mortgages 48 - 48 51
Corporate 125 (15) 110 115
Other retail
lending 18 - 18 6
Total Total
Contingent Liabilities and
Commitments as at as at
30.09.12 30.06.12
GBPm GBPm
============= -------- --------
Residential
mortgages 1 1
Corporate 87 101
Other retail
lending 32 20
1 Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
Appendix V - Credit Market Exposures
BarclaysCredit Market Exposures(1)
Nine Months Ended
30.09.12
Fair Value
(Losses)/
Gains Impairment Total
As at As at As at As at As at As at and Net (Charge)/ (Losses)/
30.09.12 30.06.12 31.12.11 30.09.12 30.06.12 31.12.11 Funding Release Gains
US Residential $m $m $m GBPm GBPm GBPm GBPm GBPm GBPm
Mortgages
================ ========= ========= ========= ========= ========= ========= ========== ========== ==========
ABS CDO Super
Senior 2,479 2,535 2,844 1,536 1,615 1,842 (24) (129) (153)
US sub-prime and
Alt-A(2) 1,296 1,621 2,134 803 1,033 1,381 68 (12) 56
Commercial
Mortgages
================ ========= ========= ========= ========= ========= ========= ========== ========== ==========
Commercial real
estate
loans and
properties 4,553 6,655 8,228 2,821 4,240 5,329 78 - 78
Commercial
Mortgage
Backed
Securities(2) 489 1,208 1,578 303 770 1,022 135 - 135
Monoline
protection
on CMBS 5 10 14 3 6 9 - - -
Other Credit
Market
================ ========= ========= ========= ========= ========= ========= ========== ========== ==========
Leveraged
Finance(3) 6,035 6,090 6,278 3,739 3,880 4,066 (42) 7 (35)
SIVs, SIV -Lites
and CDPCs - - 9 - - 6 (1) - (1)
Monoline
protection
on CLO and
other 1,078 1,351 1,729 668 861 1,120 (30) - (30)
CLO and Other
assets(2) 210 450 596 130 287 386 52 - 52
Total 16,145 19,920 23,410 10,003 12,692 15,161 236 (134) 102
- Barclays credit market exposures arose before the market dislocation in mid-2007 and primarily relate to commercial real estate and leveraged finance
- During 2012, credit market exposures decreased by GBP5,158m to GBP10,003m, reflecting net sales and paydowns and other movements of GBP4,796m, foreign exchange movements of GBP464m, offset by net fair value gains and impairment charges of GBP102m. Net sales, paydowns and other movements of GBP4,796m included:
- GBP2,361m of commercial real estate loans and properties including sale of BauBeCon for GBP898m in August, 100% stake in Archstone for GBP857m ($1,338m) and sale of Calwest for GBP341m ($550m) in September
- GBP817m commercial mortgage-backed securities - GBP582m US sub-prime and Alt-A - GBP366m monoline protection on CLO and other - GBP296m CLO and Other assets - GBP287m leveraged finance primarily relating to two counterparties
- During Q3, credit market exposures decreased by GBP2,689m, reflecting net sales and paydowns and other movements of GBP2,575m, foreign exchange movements of GBP208m, offset by net fair value gains and impairment charges of GBP94m
1 As the majority of exposure is held in US Dollars, the exposures above are shown in both US Dollars and Sterling.
2 Collateral assets of GBP817m (31 December 2011: GBP2,272m) previously underlying the Protium loan are now included within the relevant asset classes as the assets are managed alongside similar credit market exposures. These assets comprised: US sub-prime and Alt-A GBP440m (31 December 2011: GBP965m), commercial mortgage-backed securities GBP247m (31 December 2011: GBP921m), CLO and Other assets GBP130m (31 December 2011: GBP386m).
3 Includes undrawn commitments of GBP183m (31 December 2011: GBP180m).
Appendix VI - Other Legal and Regulatory Matters
Other Legal and Regulatory Matters
- Subsequent to reporting the investigations of the Financial Services Authority and Serious Fraud Office in July and August 2012 respectively, Barclays has been informed by the US Department of Justice (DOJ) and US Securities and Exchange Commission (SEC) that they are undertaking an investigation into whether the Group's relationships with third parties who assist Barclays to win or retain business are compliant with the United States Foreign Corrupt Practices Act. Barclays is investigating and fully co-operating with the DOJ and SEC
- The United States Federal Energy Regulatory Commission (FERC) Office of Enforcement (FERC Staff) has been investigating Barclays power trading in the western US with respect to the period from late 2006 through 2008. On 25 October 2012, the FERC notified Barclays that it has authorised the issuance of a public Order to Show Cause and Notice of Proposed Penalties against Barclays in relation to this matter. The Order and Notice could be issued as early as today. Barclays intends to vigorously defend this matter
Appendix VII - Other Information
Other Information
Results Timetable(1) Date
Ex-dividend date 7 November
2012
Dividend Record date 9 November
2012
Dividend Payment date 7 December
2012
2012 Full Year Results Announcement 12 February
and 2013 Investor Seminar 2013
Q1 2013 Interim Management Statement 24 April 2013
Nine Months Nine Months
Ended Ended Change
Exchange Rates(2) 30.09.12 30.09.11 30.09.11(3)
======================================= =============== =========== ===========
Period end - US$/GBP 1.61 1.56 (3%)
Average - US$/GBP 1.58 1.62 3%
Period end - EUR/GBP 1.25 1.16 (7%)
Average - EUR/GBP 1.23 1.15 (7%)
Period end - ZAR/GBP 13.33 12.58 (6%)
Average - ZAR/GBP 12.69 11.23 (12%)
Share Price Data 30.09.12 30.09.11
======================================= =============== =========== ===========
Barclays PLC (p) 214.85 161.35
Absa Group Limited (ZAR) 138.50 134.34
For Further Information Please Contact
Investor Relations Media Relations
======================================= =============== =========== ===========
Giles Croot +44 (0) 20
Charlie Rozes +44 (0) 20 7116 5752 7116 6132
More information on Barclays can be found on our website:
www.barclays.com
1 Note that these announcement dates are provisional and subject to change.
2 The average rates shown above are derived from daily spot rates during the year used to convert foreign
currency transactions into Sterling for accounting purposes.
3 The change represents the percentage change in the sterling value of the relevant foreign currency on the basis of the exchange rates disclosed. The change in exchange rates affects the amounts of foreign currency balances and transactions reported in the interim management statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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