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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 4.04 | 2.25% | 183.98 | 183.76 | 183.82 | 183.88 | 181.16 | 181.30 | 73,295,231 | 16:35:09 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Commercial Banks, Nec | 25.38B | 5.26B | 0.3470 | 5.30 | 27.85B |
From Apr 2019 to Apr 2024
TIDMBARC TIDM96ES
RNS Number : 2578G
Barclays PLC
06 May 2014
Barclays PLC
Interim Management Statement
31 March 2014
Table of Contents
Interim Management Statement Page Performance Highlights 4 Group Performance Review 8 Results by Business * UK Retail and Business Banking 11 * Europe Retail and Business Banking 12 * Africa Retail and Business Banking 13 * Barclaycard 15 * Investment Bank 16 * Corporate Banking 18 * Wealth and Investment Management 19 * Head Office and Other Operations 20 Appendix I - Quarterly Results Summary 21 Appendix II - Performance Management * Returns and Equity by Business 25 * Transform Update 27 * Exit Quadrant Business Units 28 * Margins and Balances 29 Appendix III - Consolidated Summary Income Statement and Balance Sheet 31 Appendix IV - Net Tangible Asset Value per Share 33 Appendix V - Capital 34 Appendix VI - Leverage 37 Appendix VII - Credit Risk 38 Appendix VIII - Other Information 39
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 analyses compares the three months to 31 March 2014 to the corresponding three months of 2013 and balance sheet analysis as at 31 March 2014 with comparatives relating to 31 December 2013. Balance sheet comparative figures have been revised to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation. The abbreviations GBPm and GBPbn represent millions and thousands of millions of Pounds Sterling respectively; and 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 not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; 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 and claims management costs (interest rate hedging products redress); and goodwill impairment.
All capital measures, risk weighted assets and leverage disclosures are on a CRD IV basis unless otherwise stated.
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 www.Barclays.com/results.
In accordance with Barclays' policy to provide meaningful disclosures that help investors and other stakeholders understand the financial position, performance and changes in the financial position of the Group, and having regard to the British Bankers' Association Disclosure Code and the Enhanced Disclosure Task Force recommendations, the information provided in this report goes beyond minimum requirements. Barclays continues to develop its financial reporting considering best practice and welcomes feedback from investors, regulators and other stakeholders on the disclosures that they would find most useful. The One Africa disclosure provided in the Results Announcement for the year ended 31 December 2013 will be provided on a half-yearly basis.
The information in this announcement, which was approved by the Board of Directors on 5 May 2014 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the 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.
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", "projected", "expect", "estimate", "intend", "plan", "goal", "believe", "achieve" 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 and provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of growth in the banking and financial markets, projected costs, original and revised commitments and targets in connection with the Transform Programme, deleveraging actions, 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. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards (IFRS), evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, United States, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of the Group; the potential for one or more countries exiting the Eurozone; the implementation of the Transform Programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Additional risks and factors are identified in our filings with the SEC including our Annual Report on Form 20-F for the fiscal year ended 31 December 2013, which is available on the SEC's website at http://www.sec.gov.
Any forward-looking statements made herein speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information or future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, 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 herein 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 published or may publish via the Regulatory News Service of the LSE and/or has filed or may file with the SEC.
Performance Highlights
"A continued strong momentum across our retail, cards and corporate banking franchises, all of which generated higher returns year on year, offset by a significant decline in FICC income within the Investment Bank, resulting in Group adjusted profit before tax decreasing 5%.
UK Retail, Barclaycard and Corporate together drove approximately half of the Group's income this quarter and we remain well positioned to benefit from further improvements in the economic environment. Investment Bank income reduced 28% primarily driven by a significant decline in FICC income of 41% on Q113 driven by lower client volumes, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relative strong performance in Q113. Performance in Equities and Investment Banking income was broadly stable year on year.
I am pleased to report the lowest operating expenses, excluding cost to achieve Transform (CTA) spend, since 2009. This reflects the results of our cost programme. The outcome is higher adjusted profit before tax across most businesses, with the principal exception being the Investment Bank where income weakness offset cost reduction. We will continue to focus on operating expenses as a central element of Transform.
Building on the strong progress made last quarter on leverage reduction, we remain focused on balance sheet and capital. This was demonstrated by the fully loaded CRD IV CET1 ratio increasing 37bps to 9.6% and the estimated PRA leverage ratio increasing 16bps to 3.1% this quarter, exceeding the PRA's expected leverage ratio of 3%. Net tangible asset value per share increased 1p to 284p.
As previously announced, I will update the market on Barclays strategy to deliver improved and sustainable returns and growth for our shareholders on 8 May 2014. This plan will address issues underlying the performance challenges we have recently experienced, including positioning the Investment Bank for the new operating and regulatory environment."
Antony Jenkins, Group Chief Executive
Performance Highlights
Income Statement
-- Adjusted profit before tax was down 5% to GBP1,693m driven by a reduction in Investment Bank income, in particular FICC, and currency movements partially offset by a reduction in operating expenses of 16% to GBP4,435m
-- Statutory profit before tax improved 18% to GBP1,812m, including an own credit gain of GBP119m (Q113: loss of GBP251m)
Income Performance
-- Adjusted income decreased 14% to GBP6,650m, primarily reflecting a reduction in the Investment Bank partially offset by growth in UK RBB and Barclaycard. Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased 4% to GBP2,613m reflecting business growth and stable margins
-- Investment Bank income was down 28% to GBP2,490m driven primarily by a 41% decrease in FICC income due to challenging trading conditions resulting in subdued client activity across Rates and Credit, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relatively strong performance in Q113
Credit Impairment
-- Credit impairment charges improved 22% to GBP548m, principally reflecting lower charges in Africa RBB and Corporate Banking. As a result the loan loss rate improved to 45bps (Q113: 56bps)
Cost Performance
-- Operating expenses decreased GBP861m to GBP4,435m reflecting a GBP274m reduction in CTA charges and savings attributable to prior year Transform initiatives, in particular the restructuring programmes, and currency movements
Balance Sheet, Leverage and Capital Management
-- Fully loaded CRD IV Common Equity Tier 1 (CET1) ratio increased 37bps to 9.6% and the estimated PRA leverage ratio increased 16bps to 3.1%, largely reflecting the capital generated from earnings; and for the leverage ratio, a GBP39bn reduction in PRA leverage exposure to GBP1,326bn. The estimated fully loaded CRD IV leverage ratio increased to 3.3% (2013: 3.1%)
-- Total equity excluding non-controlling interest increased GBP1bn to GBP56.4bn
-- Net tangible asset value per share improved 1p to 284p and net asset value per share was stable at 331p
Returns
-- Adjusted return on average shareholders' equity decreased to 6.4% (Q113: 7.6%) principally reflecting the equity raised from the rights issue in Q413 and a decrease in profit before tax. Adjusted return on average tangible shareholders' equity decreased to 7.5% (2013: 9.0%). Statutory return on average shareholders' equity improved to 7.1% (Q113: 6.5%)
Performance Highlights
Hot Features
Premium
Barclays Unaudited Results Adjusted Statutory
======== =========
for the Three Months Ended 31.03.14 31.03.13 31.03.14 31.03.13
GBPm GBPm % Change GBPm GBPm % Change
================================ ======== ======== ======== ========== ========== ========
Total income net of insurance
claims 6,650 7,734 (14) 6,769 7,483 (10)
Credit impairment charges
and other provisions (548) (706) 22 (548) (706) 22
================================ ======== ======== ======== ========== ========== ========
Net operating income 6,102 7,028 (13) 6,221 6,777 (8)
Operating expenses (excluding
costs to achieve Transform) (4,195) (4,782) 12 (4,195) (4,782) 12
Costs to achieve Transform (240) (514) 53 (240) (514) 53
================================ ======== ======== ======== ========== ========== ========
Operating expenses (4,435) (5,296) 16 (4,435) (5,296) 16
Other net income 26 54 (52) 26 54 (52)
================================ ======== ======== ======== ========== ========== ========
Profit before tax 1,693 1,786 (5) 1,812 1,535 18
Tax charge (561) (571) 2 (597) (491) (22)
================================ ======== ======== ======== ========== ========== ========
Profit after tax 1,132 1,215 (7) 1,215 1,044 16
Non-controlling interests (201) (205) 2 (201) (205) 2
Other equity interests (49) - - (49) - -
================================ ======== ======== ======== ========== ========== ========
Attributable profit 882 1,010 (13) 965 839 15
Performance Measures
================================ ======== ======== ========== ==========
Return on average tangible
shareholders' equity 7.5% 9.0% 8.3% 7.6%
Return on average shareholders'
equity 6.4% 7.6% 7.1% 6.5%
Return on average risk weighted
assets(1) 1.0% 1.0% 1.1% 0.9%
Cost: income ratio 67% 68% 66% 71%
Loan loss rate (bps) 45 56 45 56
Basic earnings per share 5.4p 7.5p 5.9p 6.3p
Dividend per share 1.0p 1.0p 1.0p 1.0p
Balance Sheet and Leverage 31.03.14 31.12.13
================================ ======== ======== ======== ========== ==========
Net tangible asset value
per share(2) 284p 283p
Net asset value per share(2) 331p 331p
Estimated PRA leverage exposure GBP1,326bn GBP1,365bn
Capital Management
================================ ======== ======== ======== ========== ==========
Fully loaded CRD IV
Common equity tier 1 ratio 9.6% 9.3%
Common equity tier 1 capital GBP41.4bn GBP40.4bn
Risk weighted assets GBP429bn GBP436bn
Estimated leverage ratio 3.3% 3.1%
Estimated PRA leverage ratio 3.1% 3.0%
Funding and Liquidity
================================ ======== ======== ======== ========== ==========
Group liquidity pool GBP134bn GBP127bn
Loan: deposit ratio 101% 101%
Estimated liquidity coverage
ratio 109% 102%
Adjusted Profit Reconciliation 31.03.14 31.03.13
================================ ======== ======== ======== ========== ==========
Adjusted profit before tax 1,693 1,786
Own credit 119 (251)
Statutory profit before
tax 1,812 1,535
1 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
2 Net tangible asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, less goodwill and intangible assets, by the number of issued ordinary shares. Net asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, by the number of issued ordinary shares.
Performance Highlights
Adjusted Statutory
======== =========
31.03.14 31.03.13 31.03.14 31.03.13
Income by Business GBPm GBPm % Change GBPm GBPm % Change
================================= ======== ======== ======== ======== ======== ========
UK RBB 1,145 1,067 7 1,145 1,067 7
Europe RBB 146 176 (17) 146 176 (17)
Africa RBB 567 668 (15) 567 668 (15)
Barclaycard 1,184 1,153 3 1,184 1,153 3
Investment Bank 2,490 3,463 (28) 2,490 3,463 (28)
Corporate Banking 722 772 (6) 722 772 (6)
Wealth and Investment Management 451 469 (4) 451 469 (4)
Head Office and Other Operations (55) (34) (62) 64 (285)
================================= ======== ======== ======== ======== ======== ========
Total income 6,650 7,734 (14) 6,769 7,483 (10)
Adjusted Statutory
======== =========
31.03.14 31.03.13 31.03.14 31.03.13
Profit/(Loss) Before Tax GBPm GBPm % Change GBPm GBPm % Change
by Business
================================= ======== ======== ======== ======== ======== ========
UK RBB 360 299 20 360 299 20
Europe RBB (88) (462) 81 (88) (462) 81
Africa RBB 101 81 25 101 81 25
Barclaycard 423 363 17 423 363 17
Investment Bank 668 1,315 (49) 668 1,315 (49)
Corporate Banking 260 183 42 260 183 42
Wealth and Investment Management 51 60 (15) 51 60 (15)
Head Office and Other Operations (82) (53) (55) 37 (304)
================================= ======== ======== ======== ======== ======== ========
Total profit before tax 1,693 1,786 (5) 1,812 1,535 18
Group Performance Review
Income Statement
-- Adjusted profit before tax was down 5% to GBP1,693m driven by a reduction in Investment Bank income, in particular FICC, partially offset by a reduction in operating expenses of 16% to GBP4,435m, including a 53% reduction to GBP240m in CTA
-- Statutory profit before tax improved 18% to GBP1,812m, including an own credit gain of GBP119m (2013: loss of GBP251m)
Income Performance
-- Adjusted income decreased 14% to GBP6,650m, reflecting a reduction in the Investment Bank and currency movements, partially offset by growth in UK RBB and Barclaycard
-- Investment Bank income was down 28% driven primarily by a 41% decrease in FICC income due to subdued client activity, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relatively strong first quarter comparison in 2013. Macro products and Credit Products income decreased 48% and 33% to GBP584m and GBP646m respectively. Q113 benefitted from increased activity across all products due to positive economic news, in particular the "fiscal cliff" resolution in the US
-- Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased 4% to GBP2,613m reflecting business growth and stable net interest margin
Credit Impairment
-- Credit impairment charges improved 22% to GBP548m, principally due to:
- Lower charges across all RBB businesses, notably Africa RBB, reflecting generally improving delinquency and charge-off rates, particularly in the mortgage and business banking portfolios
- Continued fall in charges in Corporate Europe, and higher net releases in Investment Banking relating to a number of exposures
-- This improvement, combined with an increase in loans and advances, resulted in a lower loan loss rate of 45bps (2013: 56bps)
Cost Performance
-- Operating expenses decreased GBP861m to GBP4,435m reflecting a GBP274m reduction in CTA charges and savings attributable to prior year Transform initiatives, in particular redundancies and scale reduction delivered by restructuring programmes, and currency movements
-- Within operating expenses, total compensation costs decreased 14% to GBP2,365m. Total compensation costs in the Investment Bank decreased 20% to GBP1,136m reflecting savings attributable to Transform initiatives and reduction in current year bonus accruals in line with the reduction in profit before tax. The Investment Bank compensation to income ratio increased to 46% (2013: 41%) with the 20% reduction in compensation more than offset by the decrease in income
Taxation
-- The effective tax rate on adjusted profit before tax was stable at 33.1% (2013: 32.0%), which, for both periods primarily reflected profits outside of the UK taxed at higher local statutory tax rates. The effective tax rate on statutory profit before tax was stable at 32.9% (2013: 32.0%)
Returns
-- Adjusted return on average shareholders' equity decreased to 6.4% (2013: 7.6%) principally reflecting the equity raised from the rights issue in Q413 and a decrease in profit before tax. Adjusted return on average tangible shareholders' equity decreased to 7.5% (2013: 9.0%). Statutory return on average shareholders' equity improved to 7.1% (2013: 6.5%)
Group Performance Review
Balance Sheet and Leverage
Balance Sheet
-- Total assets remained stable at GBP1,362bn
- GBP35.2bn increase in loans and advances to customers and banks to GBP506.2bn driven by higher settlement balances of GBP32.8bn, and increases in UK mortgages and corporate lending
- GBP21.9bn reduction in derivative financial instruments to GBP333.4bn due to further exposure reduction initiatives and market movements. This is consistent with the reduction in derivative liabilities
-- Customer accounts increased GBP28.2bn to GBP457.4bn primarily due to a GBP25.8bn increase in settlement balances and growth in UK deposits
-- Total equity was GBP64.9bn (2013: GBP63.9bn). Excluding non-controlling interests, equity increased GBP1.0bn to GBP56.4bn. This reflects a GBP0.7bn increase in share capital and share premium due to the issuance of shares under employee share schemes and increases of GBP0.2bn and GBP0.3bn in the available for sale reserves and cash flow hedge reserves. These increases were partially offset by a decrease in currency translation reserves of GBP0.3bn, driven by the strengthening of GBP against USD, EUR and ZAR
-- Net tangible asset value per share increased 1p to 284p and net asset value per share was stable at 331p
-- As at 31 March 2014, the provision for PPI redress was GBP689m (2013: GBP971m) following utilisation of GBP282m in the quarter. Overall complaint volumes reduced 8% in Q114 from Q413 as did referrals to the Financial Ombudsman Service, while 40-50% of the complaints received have no record of PPI having been sold. However, March 2014 saw a significant spike in PPI complaints received via claims management companies, with the majority of these complaints relating to PPI sold over 10 years ago. As a result of this inflow of complaints there remains a significant level of uncertainty regarding future complaint volumes, including assessing their legitimacy. This situation is being monitored closely including undertaking additional analysis and an assessment of the overall PPI provision
-- As at 31 March 2014, the provision for interest rate hedging product redress was GBP928m after Q114 utilisation of GBP241m primarily due to the payment of redress to customers. Redress outcomes have been communicated to nearly 60% of customers covered by the review, of which 29% have been paid. There has been no significant change to the estimate of future costs and the Group expects the provision to be sufficient to cover the cost of completing the redress. No provision has been recognised in relation to possible incremental consequential loss claims
Leverage exposure
-- The estimated PRA leverage exposure reduced by GBP39bn to GBP1,326bn, including a GBP17bn reduction in potential future exposure (PFEs) on derivatives from trade compression and a GBP20bn reduction in securities financing transactions (SFTs) exposures primarily from collateral and netting optimisation
Capital Management
-- Fully loaded CRD IV CET1 ratio increased 37bps to 9.6% primarily due to an increase in CET1 capital
-- Fully loaded CRD IV CET1 capital increased GBP1.0bn to GBP41.4bn, principally due to regulatory capital generated from earnings after the impact of dividends paid and a decrease in regulatory deductions
-- CRD IV risk weighted assets (RWAs) decreased GBP6bn to GBP429bn, primarily driven by Investment Bank risk reductions and policy updates, offset by model changes
-- The estimated PRA leverage ratio increased 16bps to 3.1% primarily reflecting an increase in eligible PRA adjusted Tier 1 capital to GBP41.5bn (2013: GBP40.5bn) and a reduction in leverage exposure of GBP39bn. The estimated fully loaded CRD IV leverage ratio increased to 3.3% (2013: 3.1%)
Group Performance Review
Funding and Liquidity(1)
-- The Group liquidity pool was GBP134bn (2013: GBP127bn), of which GBP128bn (2013: GBP121bn) qualifies as high quality liquid assets counting towards Liquidity Coverage Ratio (LCR). The liquidity pool is within Barclays' established liquidity risk appetite framework and in excess of regulatory requirements
-- Cash and deposits with central banks accounted for GBP52bn (2013: GBP43bn) of the liquidity pool, of which over 95% was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank. High quality government bonds accounted for GBP60bn (2013: GBP62bn), of which over 85% comprised of UK, US, Japan, France, Germany, Denmark and the Netherlands government securities. Other available liquidity accounted for GBP22bn (2013: GBP22bn)
-- The Group estimated its LCR at 109% (2013: 102%) based on Basel standards published in January 2013. This is equivalent to a surplus of GBP11bn (2013: GBP2bn) above the 100% ratio. Going forward, the Group will report its LCR based on the CRD IV rules, as implemented by the EBA. On this basis, the estimated LCR was 103% (2013: 96%)
-- The loan to deposit ratio for the Group was unchanged at 101% reflecting similar growth rates in loans and deposits
-- Total Group wholesale funding outstanding (excluding repurchase agreements) was GBP186bn (2013: GBP186bn), of which GBP91bn (2013: GBP82bn) matures in less than one year and GBP17bn (2013: GBP20bn) matures within one month
-- The Group issued GBP9bn of term funding, net of early redemptions, including GBP3bn of benchmark public issuances and GBP6bn of funding raised through participation in the Bank of England's Funding for Lending Scheme. Barclays has GBP19bn of term funding maturing in the remainder of 2014 and GBP22bn in 2015
Dividends
-- A first interim dividend for 2014 of 1.0p per share will be paid on 23 June 2014
Outlook
-- We continue to be cautious about the trading environment in which we operate and as a consequence we remain focused on structurally reducing the cost base in order to improve returns
1 Liquidity risk is managed separately at BAGL Group due to local currency and funding requirements. Apart from the LCR and customer loan to deposit ratio, all disclosures in this section exclude BAGL.
Results by Business
UK Retail and Business Banking Three Months Three Months
Ended Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change
===================================== ============== ============== ========
Adjusted and statutory basis
Total income net of insurance claims 1,145 1,067 7
Credit impairment charges and other
provisions (80) (89) 10
===================================== ============== ============== ========
Net operating income 1,065 978 9
Operating expenses (excluding costs
to achieve Transform) (676) (704) 4
Costs to achieve Transform (31) -
===================================== ============== ============== ========
Operating expenses (707) (704) -
Other net income 2 25 (92)
===================================== ============== ============== ========
Profit before tax 360 299 20
Attributable profit(1) 263 218 21
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
===================================== ============== ============== ========
Loans and advances to customers
at amortised cost 137.8 136.5 1
Customer deposits 137.3 135.5 1
Total assets 147.6 152.9 (3)
Risk weighted assets - fully loaded
CRD IV 44.0 44.1 -
Performance Measures 31.03.14 31.03.13
===================================== ============== ==============
Return on average tangible equity(2) 21.0% 19.2%
Return on average equity(2) 12.4% 11.0%
Return on average risk weighted
assets(2) 2.5% 2.2%
Cost: income ratio 62% 66%
Loan loss rate (bps) 23 27
Q114 compared to Q113
-- Income increased 7% to GBP1,145m driven by strong mortgage growth and improvement of 4bps in the net interest margin to 132bps
-- Credit impairment charges improved 10% to GBP80m driven by lower write offs within mortgages and current accounts and improved performance within business banking. 90 day arrears rates on personal loans improved to 1.1% (2013: 1.4%) with arrears rates on mortgages flat at 0.3%
-- Operating expenses remained broadly flat at GBP707m, including costs to achieve Transform of GBP31m. Operational efficiency has been enhanced through process improvement, the rationalisation of operational sites and reductions in headcount, whilst continuing to invest in customer experience via our physical, telephony and digital channels
-- Profit before tax improved 20% to GBP360m primarily driven by income growth and lower impairment
Q114 compared to Q413
-- Profit before tax improved 70% to GBP360m primarily due to lower costs to achieve Transform of GBP31m (Q413: GBP119m), the 2013 UK bank levy charge in Q413 and lower operational costs
-- Loans and advances to customers increased to GBP137.8bn (2013: GBP136.5bn), including Barclays Direct assets of GBP4.0bn (2013: GBP4.4bn), due to mortgage growth driven by increased customer demand
-- Customer deposits increased to GBP137.3bn (2013: GBP135.5bn), including Barclays Direct deposits of GBP5.4bn (2013: GBP6.2bn), due to continued inflows to primary current accounts
-- Total assets decreased 3% to GBP147.6bn primarily reflecting a reduction in liquidity pool assets offset by retail lending growth
-- RWAs remained broadly flat at GBP44.0bn
1 Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Europe Retail and Business Banking Three Months Three Months
Ended Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change
===================================== ============== ============== ========
Adjusted and statutory basis
Total income net of insurance claims 146 176 (17)
Credit impairment charges and other
provisions (49) (70) 30
===================================== ============== ============== ========
Net operating income 97 106 (8)
Operating expenses (excluding costs
to achieve Transform) (185) (215) 14
Costs to achieve Transform (3) (356) 99
===================================== ============== ============== ========
Operating expenses (188) (571) 67
Other net income 3 3 -
===================================== ============== ============== ========
Loss before tax (88) (462) 81
Attributable loss(1) (69) (363) 81
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
===================================== ============== ============== ========
Loans and advances to customers
at amortised cost 36.0 37.0 (3)
Customer deposits 15.8 16.3 (3)
Total assets 44.0 45.0 (2)
Risk weighted assets - fully loaded
CRD IV 15.8 16.2 (2)
Performance Measures 31.03.14 31.03.13
===================================== ============== ============== ========
Return on average tangible equity(2) (14.2%) (67.3%)
Return on average equity(2) (13.0%) (61.9%)
Return on average risk weighted
assets(2) (1.6%) (8.5%)
Cost: income ratio 129% 324%
Loan loss rate (bps) 54 70
Q114 compared to Q113
-- Income declined 17% to GBP146m reflecting lower upfront fees and commissions due to actions to run down Exit Quadrant assets and rationalise the product offering consistent with the Transform strategy, and adverse currency movements
- Net interest margin decreased 4bps to 77bps due to higher funding costs and a change in asset mix as Exit Quadrant assets were run down, partially offset by new customer balances
-- Credit impairment charges improved 30% to GBP49m, primarily due to better mortgage portfolio collections, mainly in Spain
-- Operating expenses decreased to GBP188m (Q113: GBP571m), primarily due to lower costs to achieve Transform and the resulting cost savings arising from the reduction in employees and distribution points, as part of the on-going restructuring programmes, and favourable currency movements
-- Loss before tax decreased to GBP88m (Q113: GBP462m), principally due to the non-recurrence of costs to achieve Transform, cost savings resulting from 2013 Transform initiatives and improved credit impairment charges
Q114 compared to Q413
-- Income reduced 5% to GBP146m due to adverse currency movements and increased funding costs
-- Loss before tax decreased to GBP88m (Q413: GBP181m) due to the non-recurrence of costs to achieve Transform, and improved credit impairment charges
-- Loans and advances reduced 3% to GBP36.0bn largely driven by asset reduction activity as part of the Transform strategy and currency movements. Customer deposits reduced by 3% to GBP15.8bn due to customer attrition and currency movements
-- Total assets reduced 2% to GBP44.0bn principally due to a reduction in loans and advances and currency movements
-- RWAs decreased 2% to GBP15.8bn driven by run down of Exit Quadrant assets and the appreciation of GBP against EUR
1 Attributable loss is calculated as loss after tax after deducting non-controlling interests and other equity interests.
2 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Africa Retail and Business Banking Constant Currency(1)
Three Months Three Months Three Months Three Months
Ended Ended Ended Ended
31.03.14 31.03.13 31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change GBPm GBPm % Change
============================== ============== ============== ======== ============== ============== ========
Adjusted and statutory
basis
Total income net of insurance
claims 567 668 (15) 731 668 9
Credit impairment charges
and other provisions (59) (114) 48 (76) (114) 33
============================== ============== ============== ======== ============== ============== ========
Net operating income 508 554 (8) 655 554 18
Operating expenses (excluding
costs to achieve Transform) (402) (474) 15 (507) (474) (7)
Costs to achieve Transform (9) - (11) -
============================== ============== ============== ======== ============== ============== ========
Operating expenses (411) (474) 13 (518) (474) (9)
Other net income 4 1 5 1
============================== ============== ============== ======== ============== ============== ========
Profit before tax 101 81 25 142 81 75
Attributable profit(2) 20 9 35 9
As at 31.03.14 As at 31.12.13 As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn GBPbn GBPbn
============================== ============== ============== ======== ============== ============== ========
Loans and advances to
customers at amortised
cost 23.9 24.2 (1) 24.2 24.2 -
Customer deposits 16.8 16.9 (1) 17.0 16.9 1
Total assets 32.5 33.5 (3) 32.8 33.5 (2)
Risk weighted assets -
fully loaded CRD IV 21.9 22.8 (4) 22.0 22.8 (4)
Performance Measures 31.03.14 31.03.13
============================== ========
Return on average tangible
equity(3) 4.1% 2.1%
Return on average equity(3) 2.6% 1.2%
Return on average risk
weighted assets(3) 1.2% 0.9%
Cost: income ratio 72% 71%
Loan loss rate (bps) 96 148
Q114 compared to Q113
-- Based on average rates the ZAR depreciated against GBP by 30% on Q113. The deterioration was a significant contributor to the movement in the reported results. Other currency movements were not significant contributors to results for Africa RBB
-- Income declined 15% to GBP567m driven by currency movements. On a constant currency basis, income increased 9% driven by improved performance in South Africa partly as a result of an increased interest rate environment
- Net interest margin was up 36bps to 339bps primarily due to lower treasury funding costs, the benefits from an increased interest rate environment and lower non-performing loans
-- Credit impairment charges improved by 48% to GBP59m, principally due to lower charges in the South African home loans portfolio and a depreciation of ZAR against GBP. The proportion of non-performing home loans improved due to lower charge-off rates and a continuation of enhanced recovery strategies
-- Operating expenses decreased 13% to GBP411m. On a constant currency basis, costs increased 9% driven by inflationary pressures in South Africa and costs to achieve Transform
-- Profit before tax increased 25% to GBP101m. On a constant currency basis profit before tax increased 75% to GBP142m, primarily due to lower credit impairment charges and improved revenue performance in South Africa
1 Constant currency results are calculated by converting ZAR results into GBP using the Q113 exchange rate for the income statement and the Q413 exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the two periods.
2 Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
3 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Q114 compared to Q413
-- Closing ZAR rate remained broadly steady, while the average rate depreciated against GBP by 8% from Q413. Other currency movements were not significant contributors to results for Africa RBB
-- Profit before tax increased to GBP101m (Q413: GBP60m), driven by depreciation in the ZAR, the 2013 UK bank levy charge in Q413 and lower costs in South Africa
-- Loans and advances to customers and customer deposits remained broadly in line at GBP23.9bn and GBP16.8bn respectively. On a constant currency basis loans and advances growth was offset by the continued decline in the home loans non-performing loans book, while customer deposits were stable
-- Total assets decreased 3% to GBP32.5bn. On a constant currency basis total assets were broadly in line
-- RWAs decreased 4% to GBP21.9bn driven by risk reductions and lower operational risk RWAs
Results by Business
Three Months Three Months
Barclaycard Ended Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change
===================================== ============== ============== ========
Adjusted and statutory basis
Total income net of insurance claims 1,184 1,153 3
Credit impairment charges and other
provisions (311) (303) (3)
===================================== ============== ============== ========
Net operating income 873 850 3
Operating expenses (excluding costs
to achieve Transform) (447) (496) 10
Costs to achieve Transform (13) -
===================================== ============== ============== ========
Operating expenses (460) (496) 7
Other net income 10 9 11
===================================== ============== ============== ========
Profit before tax 423 363 17
Attributable profit(1) 286 242 18
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
===================================== ============== ============== ========
Loans and advances to customers
at amortised cost 35.9 35.6 1
Customer deposits 5.9 5.2 13
Total assets 39.4 38.9 1
Risk weighted assets - fully loaded
CRD IV 41.2 40.5 2
Performance Measures 31.03.14 31.03.13
===================================== ============== ============== ========
Return on average tangible equity(2) 23.5% 22.5%
Return on average equity(2) 18.6% 17.0%
Return on average risk weighted
assets(2) 3.1% 2.8%
Cost: income ratio 39% 43%
Loan loss rate (bps) 333 340
Q114 compared to Q113
-- Income increased 3% to GBP1,184m reflecting continued net lending growth across the business and lower impact from structural hedges, partially offset by depreciation of ZAR and USD against GBP
- Customer asset margin remained broadly stable at 9.50%
-- Credit impairment charges increased 3% to GBP311m driven by asset growth across the business. Loan loss rates reduced by 7bps to 333bps, with improved delinquency rates in the US and UK reflecting improving economic conditions. In South Africa rates increased to 632bps (Q113: 403bps) reflecting a change in product mix as a result of portfolio acquisition and targeted asset growth
-- Operating expenses reduced 7% to GBP460m driven by depreciation of USD and ZAR against GBP and improved efficiency, partially offset by business growth and costs to achieve Transform
-- Profit before tax increased 17% to GBP423m reflecting continued net lending growth and improved efficiency
Q114 compared to Q413
-- Profit before tax increased 26% to GBP423m driven by the 2013 UK bank levy charge in Q413 and lower operating expenses and costs to achieve Transform
-- Total assets and loans and advances to customers increased 1% to GBP39.4bn and GBP35.9bn respectively. Customer deposits increased to GBP5.9bn (2013: GBP5.2bn) due to continued funding initiatives in the US
-- RWAs increased 2% to GBP41.2bn driven primarily by an increase in customer lending and the further roll out of advanced modelled approaches
1 Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Three Months Three Months
Investment Bank Ended Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change
===================================== ============== ============== ========
Adjusted and statutory basis
Macro Products(1) 584 1,113 (48)
Credit Products(1) 646 960 (33)
===================================== ============== ============== ========
FICC 1,230 2,073 (41)
Equities and Prime Services 674 706 (5)
Investment Banking 555 557 -
Principal Investments 8 9 (11)
Exit Quadrant(2) 23 118 (81)
===================================== ============== ============== ========
Total income 2,490 3,463 (28)
Net credit impairment charges and
other provisions release 46 14
===================================== ============== ============== ========
Net operating income 2,536 3,477 (27)
Operating expenses (excluding costs
to achieve Transform) (1,722) (2,054) 16
Costs to achieve Transform (149) (116) (28)
===================================== ============== ============== ========
Operating expenses (1,871) (2,170) 14
Other net income 3 8 (63)
===================================== ============== ============== ========
Profit before tax 668 1,315 (49)
Attributable profit(3) 329 823 (60)
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
===================================== ============== ============== ========
Loans and advances to customers
and banks at amortised cost(4) 179.2 146.6 22
Customer deposits(4) 109.9 83.2 32
Total assets(5) 905.6 897.5 1
Risk weighted assets - fully loaded
CRD IV 218.9 221.6 (1)
Performance Measures 31.03.14 31.03.13
===================================== ============== ============== ========
Return on average tangible equity(6) 4.9% 11.0%
Return on average equity(6) 4.7% 10.7%
Return on average risk weighted
assets(6) 0.7% 1.3%
Cost: income ratio 75% 63%
Compensation: income ratio 46% 41%
Loan loss rate (bps) (6) (5)
1 Macro Products represent Rates, Currencies and Commodities income. Credit Products represent Credit and Securitised Products income.
2 The Exit Quadrant consists of the Investment Bank Exit Quadrant business units as detailed on page 28.
3 Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
4 As at 31 March 2014 loans and advances included GBP141.8bn of loans and advances to customers (including settlement balances of GBP63.6bn and cash collateral of GBP38.9bn) and loans and advances to banks of GBP37.4bn (including settlement balances of GBP9.8bn and cash collateral of GBP13.6bn). Customer deposits included GBP60.6bn relating to settlement balances and GBP29.7bn relating to cash collateral.
5 2013 total assets have been revised to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation, resulting in a GBP33.7bn increase to total assets. Derivative financial instruments increased GBP31.0bn and loans and advances to banks and customers increased GBP2.7bn. Customer deposits increased GBP1.3bn.
6 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Q114 compared to Q113
-- Total income decreased 28% to GBP2,490m including a 4% reduction due to currency movements
- FICC income decreased 41% to GBP1,230m due to subdued client activity, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relatively strong first quarter comparison in 2013
- Macro Products and Credit Products income decreased 48% and 33% to GBP584m and GBP646m respectively, as challenging trading conditions impacted activity. Q113 benefitted from increased activity across all products on positive economic news as a result of the "fiscal cliff" resolution in the US
- Equities and Prime Services income decreased 5% to GBP674m due to declines in cash equities and equity derivatives, as the prior year benefitted from market rallies globally, partially offset by higher income from Prime Services reflecting increased client activity
- Investment Banking income remained in line at GBP555m, as a significant increase in financial advisory activity across Europe, Americas and Asia was offset by a decline in activity in debt and equity underwriting
- Exit Quadrant income reduced GBP95m to GBP23m as Q113 benefitted from gains on commercial real estate and US residential mortgages
-- Net credit impairment release of GBP46m (Q113: net release of GBP14m) included charges of GBP7m, more than offset by releases totalling GBP53m across a number of counterparties
-- Operating expenses decreased 14% to GBP1,871m due to lower compensation costs and benefits associated with Transform programmes, including business restructuring and operational streamlining, and a 4% reduction due to currency movements
- Costs to achieve Transform of GBP149m primarily related to the cost of reducing the scale of activities and redundancies across Europe, Asia and America
-- Including costs to achieve Transform, cost: income ratio increased 12% to 75%. Compensation: income ratio increased to 46% (Q113: 41%) with a 20% reduction in compensation to GBP1,136m offset by reduced income
-- Profit before tax decreased 49% to GBP668m
Q114 compared to Q413
-- Income increased 16% to GBP2,490m
- FICC income increased 13% to GBP1,230m driven by an increase in trading volumes, across credit and securitised products businesses
- Equities and Prime Services income increased 36% to GBP674m driven by improved performance in equity derivatives across Americas and Europe, and continued strong performance in Prime Services reflecting increased client activity
- Investment Banking income decreased 6% to GBP555m, reflecting lower equity underwriting and financial advisory activity against a strong Q413, partially offset by increased debt underwriting income
- Exit Quadrant income of GBP23m (Q413: loss of GBP54m) reflected gains on US residential mortgages. Q413 losses reflected a GBP111m reversal of income relating to a litigation matter
-- Net credit impairment release of GBP46m (Q413: charge of GBP14m) included charges of GBP7m, more than offset by releases totalling GBP53m across a number of counterparties
-- Operating expenses decreased 24% to GBP1,871m due to the 2013 UK bank levy charge in Q413 of GBP333m, savings associated with Transform and lower compensation costs. Q413 was impacted by provisions for litigation and regulatory penalties of GBP220m mainly relating to US residential mortgage-related business
-- Profit before tax increased GBP997m to GBP668m
-- Total assets increased GBP8.1bn to GBP905.6bn primarily reflecting increases in cash and balances at central banks and loans and advances to banks and customers due to increases in settlement balances. These increases were partially offset by a decrease in derivative financial instruments
-- RWAs decreased 1% to GBP218.9bn driven by risk reductions and offsetting model and policy changes
Results by Business
Corporate Banking Three Months Three Months
Ended Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change
===================================== ============== ============== ========
Adjusted and statutory basis
Total income net of insurance claims 722 772 (6)
Credit impairment charges and other
provisions (78) (130) 40
===================================== ============== ============== ========
Net operating income 644 642 -
Operating expenses (excluding costs
to achieve Transform) (379) (422) 10
Costs to achieve Transform (6) (37) 84
===================================== ============== ============== ========
Operating expenses (385) (459) 16
Other net income 1 -
===================================== ============== ============== ========
Profit before tax 260 183 42
Attributable profit(1) 160 120 33
Adjusted and statutory profit/(loss)
before tax by geographic segment
===================================== ============== ============== ========
UK 240 269 (11)
Europe (17) (114) 85
Rest of the World 37 28 32
===================================== ============== ============== ========
Total 260 183 42
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
===================================== ============== ============== ========
Loans and advances to customers
at amortised cost 62.0 61.1 2
Loans and advances to customers
at fair value 15.9 15.7 1
Customer deposits 111.7 108.7 3
Total assets 113.2 113.9 (1)
Risk weighted assets - fully loaded
CRD IV 67.9 70.5 (4)
Performance Measures 31.03.14 31.03.13
===================================== ============== ============== ========
Return on average tangible equity(2) 7.3% 5.1%
Return on average equity(2) 7.0% 4.9%
Return on average risk weighted
assets(2) 1.1% 0.8%
Cost: income ratio 53% 59%
Loan loss rate (bps) 46 74
Q114 compared to Q113
-- Total income reduced 6% to GBP722m as a GBP58m reduction in income related to movement in the fair value loan portfolio more than offset otherwise improved UK performance. The net interest margin was in line at 124bps
-- Credit impairment improved 40% to GBP78m, driven by Europe which saw charges reduce by GBP57m to GBP41m following ongoing actions to reduce exposure to the property and construction sector in Spain and fewer large impairments. UK impairment charges remained at a low level at GBP36m (Q113: GBP30m)
-- Operating expenses improved 16% to GBP385m as a result of 2013 Transform initiatives to reduce costs in all regions. Costs to achieve Transform reduced to GBP6m (Q113: GBP37m), mainly due to non-recurrence of Exit Quadrant related spend. Current period cost to achieve Transform was driven by investment in infrastructure efficiency in the UK
-- Adjusted profit before tax increased 42% to GBP260m driven by lower operating expenses and improved impairment, partially offset by reduced income following a fair value loan portfolio reduction
Q114 compared to Q413
-- Adjusted profit before tax improved to GBP260m (Q413: GBP123m), reflecting lower operating expenses driven by a reduction in costs to achieve Transform and the 2013 UK bank levy charge of GBP51m in Q413, in addition to improved impairment. Income reduced 5% to GBP722m, reflecting a fair value loan portfolio reduction of GBP27m (Q413: gain GBP14m)
-- Loans and advances to customers increased GBP62.0bn (Q413: GBP61.1bn), driven primarily by an increase in client financing requirements in the UK. Customer deposits increased 3% to GBP111.7bn reflecting growth across all regions
-- RWAs decreased 4% to GBP67.9bn driven by run down of Exit Quadrant assets and changes to the treatment of high quality liquidity assets
1 Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Three Months Three Months
Wealth and Investment Management Ended Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm % Change
===================================== ============== ============== ========
Adjusted and statutory basis
Total income net of insurance claims 451 469 (4)
Credit impairment charges and other
provisions (17) (14) (21)
===================================== ============== ============== ========
Net operating income 434 455 (5)
Operating expenses (excluding costs
to achieve Transform) (363) (400) 9
Costs to achieve Transform (22) -
===================================== ============== ============== ========
Operating expenses (385) (400) 4
Other net income 2 5 (60)
===================================== ============== ============== ========
Profit before tax 51 60 (15)
Attributable profit(1) 31 45 (31)
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
===================================== ============== ============== ========
Loans and advances to customers
at amortised cost 23.5 23.1 2
Customer deposits 60.5 63.4 (5)
Total assets 36.4 37.6 (3)
Risk weighted assets - fully loaded
CRD IV 17.2 17.3 (1)
Total client assets 198.3 204.8 (3)
Performance Measures 31.03.14 31.03.13
===================================== ============== ============== ========
Return on average tangible equity(2) 6.5% 10.0%
Return on average equity(2) 5.2% 7.6%
Return on average risk weighted
assets(2) 0.8% 1.1%
Cost: income ratio 85% 85%
Loan loss rate (bps) 29 25
Q114 compared to Q113
-- Income decreased 4% to GBP451m primarily due to adverse foreign exchange movements
- Net interest margin decreased by 5bps to 106bps, reflecting reduced contributions from structural hedges
-- Operating expenses decreased 4% to GBP385m with the increase in costs to achieve Transform of GBP22m offset by cost savings arising primarily from the reduction in employees as part of the Transform restructuring initiatives
-- Profit before tax decreased 15% to GBP51m as the business continued to implement Transform and other strategic initiatives to streamline target markets and client propositions
Q114 compared to Q413
-- Adjusted profit before tax increased from a loss of GBP73m to a profit of GBP51m primarily driven by a reduction in the costs to achieve Transform and reduced credit impairment charges
-- Credit impairment charges improved 48% to GBP17m reflecting non recurrence of significant impairment charges taken in Q413
-- Loans and advances to customers increased 2% to GBP23.5bn
-- Customer deposits decreased 5% to GBP60.5bn and client assets decreased 3% to GBP198.3bn driven primarily by reduced institutional cash deposits
-- RWAs remained broadly flat at GBP17.2bn
1 Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2 Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Results by Business
Head Office and Other Operations Three Months Ended Three Months Ended
31.03.14 31.03.13
Income Statement Information GBPm GBPm
==================================== ================== ==================
Adjusted basis
Net operating expense (55) (34)
Operating expenses (excluding costs
to achieve Transform) (21) (17)
Costs to achieve Transform (7) (5)
==================================== ================== ==================
Operating expenses (28) (22)
Other net income 1 3
==================================== ================== ==================
Adjusted loss before tax (82) (53)
Adjusted attributable loss(1) (138) (84)
Adjusting items
==================================== ================== ==================
Own credit 119 (251)
Statutory profit/(loss) before tax 37 (304)
As at 31.03.14 As at 31.12.13
Balance Sheet Information GBPbn GBPbn
==================================== ================== ==================
Total assets 43.2 26.7
Risk weighted assets - fully loaded
CRD IV 2.5 2.5
Q114 compared to Q113
-- Adjusted net operating expense increased to GBP55m (Q113: GBP34m), predominately due to the residual expense from treasury operations, partially offset by a net gain of GBP77m as currency movements were transferred from reserves due to the repatriation of capital from various subsidiaries in the Group
-- Operating expenses increased to GBP28m (Q113: GBP22m)
-- Adjusted loss before tax increased to GBP82m (Q113: GBP53m). Statutory profit before tax improved to GBP37m (Q113: loss of GBP304m) including an own credit gain of GBP119m (Q113: charge of GBP251m)
Q114 compared to Q413
-- Adjusted net operating expense increased to GBP55m (Q413: income of GBP124m), principally due to the non-recurrence of an adjustment to the carrying amount of subordinated liabilities (GBP167m) and an increase in the residual expense from treasury operations, partially offset by a net gain of GBP77m as currency movements were transferred from reserves due to the repatriation capital from various subsidiaries in the Group
-- Operating expenses decreased to GBP28m (Q413: GBP86m), due to lower costs to achieve Transform and 2013 UK bank levy charge of GBP15m in Q413
-- Adjusted loss before tax increased to GBP82m (Q413: profit of GBP44m). Statutory profit before tax improved to GBP37m (Q413: loss of GBP51m) including an own credit gain of GBP119m (Q413: charge of GBP95m)
-- Total assets increased to GBP43.2bn (2013: GBP26.7bn) primarily reflecting an increase in surplus group liquidity pool assets
-- RWAs remained flat at GBP2.5bn
1 Adjusted attributable loss is calculated as profit after tax after deducting non-controlling interests and other equity interests.
Appendix I - Quarterly Results Summary
Barclays Results by Quarter Q114 Q413 Q313 Q213 Q113 Q412 Q312 Q212
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
==== ==== ==== ==== ==== ==== ==== ====
Adjusted basis
Total income net of insurance
claims 6,650 6,639 6,445 7,337 7,734 6,867 7,002 7,384
Credit impairment charges
and other provisions (548) (718) (722) (925) (706) (825) (805) (926)
=============================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 6,102 5,921 5,723 6,412 7,028 6,042 6,197 6,458
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (4,195) (4,777) (4,262) (4,359) (4,782) (4,345) (4,353) (4,555)
Costs to achieve Transform (240) (468) (101) (126) (514) - - -
UK bank levy - (504) - - - (345) - -
=============================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (4,435) (5,749) (4,363) (4,485) (5,296) (4,690) (4,353) (4,555)
Other net income/(expense) 26 19 25 (122) 54 43 21 41
=============================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted profit before tax 1,693 191 1,385 1,805 1,786 1,395 1,865 1,944
Adjusting items
=============================== ======= ======= ======= ======= ======= ======= ======= =======
Own credit 119 (95) (211) 337 (251) (560) (1,074) (325)
Gain on disposal of BlackRock,
Inc. investment - - - - - - - 227
Provision for PPI redress - - - (1,350) - (600) (700) -
Provision for interest rate
hedging products redress - - - (650) - (400) - (450)
Goodwill impairment - (79) - - - - - -
Statutory profit/(loss)
before tax 1,812 17 1,174 142 1,535 (165) 91 1,396
Statutory profit/(loss)
after tax 1,215 (514) 728 39 1,044 (364) (13) 943
Attributable to:
=============================== ======= ======= ======= ======= ======= ======= ======= =======
Ordinary equity holders
of the parent 965 (642) 511 (168) 839 (589) (183) 746
Other equity holders 49 - - - - - - -
Non-controlling interests 201 128 217 207 205 225 170 197
Adjusted basic earnings/(loss)
per share 5.4p (3.9p) 5.4p 7.7p 7.5p 6.7p 7.8p 8.7p
Adjusted cost: income ratio 67% 87% 68% 61% 68% 68% 62% 62%
Basic earnings/(loss) per
share 5.9p (5.0p) 3.7p (1.2p) 6.3p (4.5p) (1.4p) 5.7p
Cost: income ratio 66% 89% 70% 85% 71% 90% 85% 69%
Q114 Q413 Q313 Q213 Q113 Q412 Q312 Q212
=============================
Adjusted Profit/(Loss) Before GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Tax by Business
============================= ==== ==== ==== ==== ==== ==== ==== ====
UK RBB 360 212 351 333 299 275 358 360
Europe RBB (88) (181) (106) (247) (462) (114) (81) (76)
Africa RBB 101 60 132 131 81 105 34 51
Barclaycard 423 335 397 412 363 335 396 404
Investment Bank 668 (329) 463 1,074 1,315 760 988 1,060
Corporate Banking 260 123 276 219 183 61 88 108
Wealth and Investment Management 51 (73) 7 (13) 60 105 70 49
Head Office and Other Operations (82) 44 (135) (104) (53) (132) 12 (12)
================================= ===== ===== ===== ===== ===== ===== ===== =====
Total profit before tax 1,693 191 1,385 1,805 1,786 1,395 1,865 1,944
Appendix I - Quarterly Results Summary
Q114 Q413 Q313 Q213 Q113 Q412 Q312 Q212
UK Retail and Business Banking GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Adjusted basis
Total income net of insurance
claims 1,145 1,149 1,172 1,135 1,067 1,077 1,123 1,118
Credit impairment charges
and other provisions (80) (88) (81) (89) (89) (71) (76) (46)
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Net operating income 1,065 1,061 1,091 1,046 978 1,006 1,047 1,072
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (676) (709) (710) (689) (704) (718) (689) (713)
Costs to achieve Transform (31) (119) (29) (27) - - - -
UK bank levy - (21) - - - (17) - -
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Operating expenses (707) (849) (739) (716) (704) (735) (689) (713)
Other net income/(expense) 2 - (1) 3 25 4 - 1
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Adjusted profit before tax 360 212 351 333 299 275 358 360
Adjusting items
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Provision for PPI redress - - - (660) - (330) (550) -
Statutory profit/(loss) before
tax 360 212 351 (327) 299 (55) (192) 360
Europe Retail and Business
Banking
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Adjusted and statutory basis
Total income net of insurance
claims 146 154 160 176 176 161 168 191
Credit impairment charges
and other provisions (49) (78) (67) (72) (70) (74) (58) (71)
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Net operating income 97 76 93 104 106 87 110 120
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (185) (188) (203) (207) (215) (185) (193) (200)
Costs to achieve Transform (3) (46) (1) - (356) - - -
UK bank levy - (26) - - - (20) - -
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Operating expenses (188) (260) (204) (207) (571) (205) (193) (200)
Other net income/(expense) 3 3 5 (144) 3 4 2 4
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Adjusted and statutory loss
before tax (88) (181) (106) (247) (462) (114) (81) (76)
Africa Retail and Business
Banking
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Adjusted and statutory basis
Total income net of insurance
claims 567 622 643 684 668 721 714 729
Credit impairment charges
and other provisions (59) (59) (57) (94) (114) (142) (176) (208)
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Net operating income 508 563 586 590 554 579 538 521
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (402) (462) (454) (452) (474) (455) (506) (471)
Costs to achieve Transform (9) (15) (2) (9) - - - -
UK bank levy - (28) - - - (24) - -
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Operating expenses (411) (505) (456) (461) (474) (479) (506) (471)
Other net income 4 2 2 2 1 5 2 1
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Adjusted and statutory profit
before tax 101 60 132 131 81 105 34 51
Appendix I - Quarterly Results Summary
Q114 Q413 Q313 Q213 Q113 Q412 Q312 Q212
Barclaycard GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted basis
Total income net of insurance
claims 1,184 1,220 1,223 1,190 1,153 1,140 1,092 1,079
Credit impairment charges
and other provisions (311) (314) (334) (313) (303) (286) (271) (242)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 873 906 889 877 850 854 821 837
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (447) (514) (498) (467) (496) (508) (432) (441)
Costs to achieve Transform (13) (38) (6) (5) - - - -
UK bank levy - (24) - - - (16) - -
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (460) (576) (504) (472) (496) (524) (432) (441)
Other net income 10 5 12 7 9 5 7 8
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted profit before tax 423 335 397 412 363 335 396 404
Adjusting items
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Provision for PPI redress - - - (690) - (270) (150) -
Statutory profit/(loss) before
tax 423 335 397 (278) 363 65 246 404
Investment Bank
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted and statutory basis
Macro Products 584 625 472 900 1,113 800 748 1,040
Credit Products 646 460 494 513 960 492 701 665
===================================== ======= ======= ======= ======= ======= ======= ======= =======
FICC 1,230 1,085 966 1,413 2,073 1,292 1,449 1,705
Equities and Prime Services 674 496 645 825 706 454 523 615
Investment Banking 555 590 525 528 557 620 493 509
Principal Investments 8 32 1 20 9 26 30 139
Exit Quadrant 23 (54) (26) 224 118 202 226 56
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Total income 2,490 2,149 2,111 3,010 3,463 2,594 2,721 3,024
Credit impairment releases/(charges)
and other provisions 46 (14) (25) (195) 14 1 (3) (121)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 2,536 2,135 2,086 2,815 3,477 2,595 2,718 2,903
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (1,722) (2,044) (1,622) (1,697) (2,054) (1,644) (1,737) (1,849)
Costs to achieve Transform (149) (87) (6) (53) (116) - - -
UK bank levy - (333) - - - (206) - -
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (1,871) (2,464) (1,628) (1,750) (2,170) (1,850) (1,737) (1,849)
Other net income 3 - 5 9 8 15 7 6
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted and statutory profit/(loss)
before tax 668 (329) 463 1,074 1,315 760 988 1,060
Corporate Banking
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted basis
Total income net of insurance
claims 722 764 799 780 772 746 717 734
Credit impairment charges
and other provisions (78) (134) (118) (128) (130) (240) (214) (223)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 644 630 681 652 642 506 503 511
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (379) (396) (393) (430) (422) (412) (421) (402)
Costs to achieve Transform (6) (60) (13) (4) (37) - - -
UK bank levy - (51) - - - (39) - -
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Operating expenses (385) (507) (406) (434) (459) (451) (421) (402)
Other net income/(expense) 1 - 1 1 - 6 6 (1)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Adjusted profit before tax 260 123 276 219 183 61 88 108
Adjusting items
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Provision for interest rate
hedging products redress - - - (650) - (400) - (450)
Statutory profit/(loss) before
tax 260 123 276 (431) 183 (339) 88 (342)
Appendix I - Quarterly Results Summary
Q114 Q413 Q313 Q213 Q113 Q412 Q312 Q212
Wealth and Investment Management GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Adjusted basis
Total income net of insurance
claims 451 459 449 462 469 483 443 442
Credit impairment charges
and other provisions (17) (33) (39) (35) (14) (13) (6) (12)
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Net operating income 434 426 410 427 455 470 437 430
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (363) (415) (361) (410) (400) (361) (369) (380)
Costs to achieve Transform (22) (81) (44) (33) - - - -
UK bank levy - (6) - - - (4) - -
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Operating expenses (385) (502) (405) (443) (400) (365) (369) (380)
Other net income/(expense) 2 3 2 3 5 - 2 (1)
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Adjusted profit/(loss) before
tax 51 (73) 7 (13) 60 105 70 49
Adjusting items
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Goodwill impairment - (79) - - - - - -
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Statutory profit/(loss) before
tax 51 (152) 7 (13) 60 105 70 49
Head Office and Other Operations
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Adjusted basis
Total (expense)/income net
of insurance claims (55) 122 (112) (100) (34) (55) 24 68
Credit impairment releases/(charges)
and other provisions - 2 (1) 1 - - (1) (3)
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Net operating (expense)/income (55) 124 (113) (99) (34) (55) 23 65
Operating expenses (excluding
costs to achieve Transform
and UK bank levy) (21) (49) (21) (7) (17) (61) (6) (99)
Costs to achieve Transform (7) (22) - 5 (5) - - -
UK bank levy - (15) - - - (19) - -
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Operating expenses (28) (86) (21) (2) (22) (80) (6) (99)
Other net income/(expense) 1 6 (1) (3) 3 3 (5) 23
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Adjusted (loss)/profit before
tax (82) 44 (135) (104) (53) (132) 12 (11)
Adjusting items
===================================== ===== ===== ===== ===== ===== ===== ======= =====
Own Credit 119 (95) (211) 337 (251) (560) (1,074) (325)
Gain on disposal of BlackRock,
Inc. investment - - - - - - - 227
Statutory profit/(loss) before
tax 37 (51) (346) 233 (304) (692) (1,062) (109)
Appendix II - Performance Management
Returns and Equity by Business
Returns on average equity and average tangible equity are calculated as profit attributable to ordinary equity holders of the parent divided by average allocated equity or average allocated tangible equity as appropriate, excluding non-controlling and other equity interests. Average allocated equity has been calculated as 10.5% of average fully loaded CRD IV risk weighted assets for each business, adjusted for fully loaded CRD IV capital deductions, including goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. The lower capital level currently held, reflecting Common Equity Tier 1 capital ratio of 9.6% as at 31 March 2014, is allocated to Head Office and Other Operations. Average allocated tangible equity is calculated using the same method but excludes goodwill and intangible assets.
Adjusted Statutory
======== =========
Three Months Three Months Three Months Three Months
Ended Ended(1) Ended Ended(1)
31.03.14 31.03.13 31.03.14 31.03.13
Return on Average Equity % % % %
================================= ============ ============ ============ ============
UK RBB 12.4 11.0 12.4 11.0
Europe RBB (13.0) (61.9) (13.0) (61.9)
Africa RBB 2.6 1.2 2.6 1.2
Barclaycard 18.6 17.0 18.6 17.0
Investment Bank 4.7 10.7 4.7 10.7
Corporate Banking 7.0 4.9 7.0 4.9
Wealth and Investment Management 5.2 7.6 5.2 7.6
================================= ============ ============ ============ ============
Group excluding Head Office
and Other Operations 6.9 7.1 6.9 7.1
Head Office and Other Operations
impact (0.5) 0.5 0.2 (0.6)
================================= ============ ============ ============ ============
Total 6.4 7.6 7.1 6.5
Adjusted Statutory
========================== ==========================
Three Months Three Months Three Months Three Months
Ended Ended(1) Ended Ended(1)
31.03.14 31.03.13 31.03.14 31.03.13
Return on Average Tangible Equity % % % %
================================== ============ ============ ============ ============
UK RBB 21.0 19.2 21.0 19.2
Europe RBB (14.2) (67.3) (14.2) (67.3)
Africa RBB(2) 4.1 2.1 4.1 2.1
Barclaycard 23.5 22.5 23.5 22.5
Investment Bank 4.9 11.0 4.9 11.0
Corporate Banking 7.3 5.1 7.3 5.1
Wealth and Investment Management 6.5 10.0 6.5 10.0
================================== ============ ============ ============ ============
Group excluding Head Office
and Other Operations 7.9 8.1 7.9 8.1
Head Office and Other Operations
impact (0.4) 0.9 0.4 (0.5)
================================== ============ ============ ============ ============
Total 7.5 9.0 8.3 7.6
1 Comparatives have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
2 The return on average tangible equity for Africa RBB for 2013 has been revised to exclude amounts relating to Absa Group's non-controlling interests.
Appendix II - Performance Management
Adjusted Statutory
======== =========
Three Months Three Months Three Months Three Months
Ended Ended Ended Ended
31.03.14 31.03.13 31.03.14 31.03.13
Profit/(Loss) Attributable to GBPm GBPm GBPm GBPm
Ordinary Equity Holders of the
Parent
==================================== ============ ============ ============ ============
UK RBB 263 218 263 218
Europe RBB (69) (363) (69) (363)
Africa RBB 20 9 20 9
Barclaycard 286 242 286 242
Investment Bank 329 823 329 823
Corporate Banking 160 120 160 120
Wealth and Investment Management 31 45 31 45
Head Office and Other Operations(1) (138) (84) (55) (255)
==================================== ============ ============ ============ ============
Total 882 1,010 965 839
Average Allocated Average Allocated
Equity(2) Tangible Equity(2)
================= ===================
Three Months Three Months Three Months Three Months
Ended Ended(3) Ended Ended(3)
31.03.14 31.03.13 31.03.14 31.03.13
GBPm GBPm GBPm GBPm
==================================== ============ ============ ============ ============
UK RBB 8,484 7,914 5,001 4,546
Europe RBB 2,120 2,344 1,950 2,157
Africa RBB 3,032 3,075 1,975 1,744
Barclaycard 6,161 5,697 4,874 4,311
Investment Bank 27,732 30,734 26,978 30,036
Corporate Banking 9,203 9,850 8,809 9,479
Wealth and Investment Management 2,387 2,369 1,906 1,809
Head Office and Other Operations(1) (5,089) (10,074) (5,127) (10,093)
==================================== ============ ============ ============ ============
Total(1) 54,030 51,909 46,366 43,989
1 Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average ordinary shareholders' equity and tangible ordinary shareholders' equity.
2 Group average ordinary shareholders' equity and average tangible ordinary shareholders' equity exclude the cumulative impact of own credit on retained earnings for the calculation of adjusted performance measures.
3 Comparatives have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
Appendix II - Performance Management
Transform Update
On 12 February 2013 the Group announced a Strategic Review which included reducing operating expenses to GBP16.8bn by 2015.
Costs to achieve Transform totalled GBP240m in Q114, principally related to reducing the scale of activities and redundancies in the Investment Bank and UK RBB and investment in technology and process improvements that will reduce future operating costs and enhance customer and client propositions.
Adjusted performance measures
excluding CTA
Return Cost: Total
CTA Profit/(Loss) Before on Average Income CTA
Spend Tax Equity(1) Ratio Spend
31.03.14 31.03.14 31.03.13 31.03.14 31.03.14 to Date
GBPm GBPm GBPm % Change % % GBPm
======================= ========= ========= ========= ========= ========= ========= ========
UK RBB 31 391 299 31 13.5% 59% 206
Europe RBB 3 (85) (106) (20) (12.6%) 127% 406
Africa RBB 9 110 81 36 3.5% 71% 35
Barclaycard 13 436 363 20 19.2% 38% 62
Investment Bank 149 817 1,431 (43) 6.3% 69% 411
Corporate Banking 6 266 220 21 7.1% 52% 120
Wealth and Investment
Management 22 73 60 22 8.1% 80% 180
Head Office and
Other Operations 7 (75) (48) 56 (0.3%) 29
======================= ========= ========= ========= ========= ========= ========= ========
Total 240 1,933 2,300 (16) 7.7% 63% 1,449
1 Return on average equity for Head Office and Other Operations represents the dilution for the Group.
Appendix II - Performance Management
Exit Quadrant Business Units
-- The table below presents selected financial data for the strategic Exit Quadrant assets including 2012 comparatives to show the run down since the Transform strategy announcement
CRD IV RWAs(1) Balance Sheet Three Months Ended
31.03.14
Impairment Net Operating
As at As at As at As at As at As at Income/ (Charge)/ (Expense)/
31.03.14 31.12.13 31.12.12 31.03.14 31.12.13 31.12.12 (Expense) Release Income
Investment GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPm GBPm GBPm
Bank
============= ========= ========= ========= ========= ========= ========= ========== ========== =============
US
Residential
Mortgages 0.9 1.1 5.3 0.6 0.5 2.2 27 - 27
Commercial
Mortgages
and Real
Estate 1.6 2.0 3.1 1.7 2.0 4.0 9 - 9
Leveraged and
Other
Loans 9.5 9.7 10.1 5.7 6.0 11.5 (21) - (21)
CLOs and
Other
Insured
Assets 3.6 3.7 5.9 11.1 11.7 16.3 17 - 17
Structured
Credit
and Other(2) 1.9 3.8 9.4 4.5 5.3 8.9 10 - 10
Monoline
Derivatives 2.4 2.2 3.1 0.2 0.3 0.6 (16) - (16)
Corporate
Derivatives 2.2 1.9 8.3 2.1 2.2 3.6 - - -
============= ========= ========= ========= ========= ========= ========= ========== ========== =============
Portfolio
Assets 22.1 24.4 45.2 25.9 28.0 47.1 26 - 26
Pre-CRD IV
Rates
Portfolio 22.5 22.2 33.9
============= ========= ========= =========
Total
Investment
Bank 44.6 46.6 79.1
Corporate
Banking
European
Assets 2.5 3.2 5.0 2.3 2.6 3.9 16 (37) (21)
Europe RBB
assets 8.8 9.0 9.7 20.8 21.3 22.9 24 (36) (12)
Total 55.9 58.8 93.8
31 March 2014 compared to 31 December 2013
-- Exit Quadrant income shown on page 16 differs from the income above due to associated litigation matters
-- Investment Bank RWAs decreased by GBP2.0bn to GBP44.6bn, driven by continued asset run down and reduction in averaged modelled RWAs following the sale of Structured Credit assets in Q413. This was partially offset by a revision to the probability of default metrics for wholesale portfolios. RWAs in Corporate Banking and Europe RBB Exit Quadrant portfolios decreased due to continued asset run down
-- Portfolio Assets balance sheet assets decreased GBP2.1bn to GBP25.9bn driven by net sales and paydowns across asset classes. Income of GBP26m was primarily driven by gains relating to US Residential Mortgage, Commercial Mortgages and Real Estate exposures and Structured Credit and Other, partially offset by the net funding cost of Leveraged and Other Loans
-- Corporate Banking Exit Quadrant balance sheet assets in Europe decreased GBP0.3bn to GBP2.3bn driven by reductions in Spain and Portugal
-- Europe RBB Exit Quadrant balance sheet assets decreased GBP0.5bn to GBP20.8bn, reflecting actions taken to reduce assets in line with the strategy to run down exit quadrant assets
1 The table above provides an indication of the CRD IV RWAs that are currently allocated to the Exit Quadrant businesses. RWAs as at 31 December 2013 have been revised to reflect changes to the allocation methodology following the go-live of CRD IV in 2014.
2 Comparative balance sheet amounts have been revised to adopt the offsetting amendments to IAS 32, Financial Instrument; Presentation. Structured Credit and other increased by GBP0.1bn as at 31 December 2013 and GBP0.3bn as at 31 December 2012.
Appendix II - Performance Management
Margins and Balances
Three Months Three Months
Ended Ended
Analysis of Net Interest Income 31.03.14 31.03.13
GBPm GBPm
================================================ ============ ============
RBB, Barclaycard, Corporate Banking and Wealth
and Investment Management Customer Income:
- Customer assets 1,788 1,723
- Customer liabilities 825 786
================================================ ============ ============
Total 2,613 2,509
RBB, Barclaycard, Corporate Banking and Wealth
and Investment Management Non-customer Income:
- Product structural hedge(1) 191 220
- Equity structural hedge(2) 103 72
- Other (22) (26)
================================================ ============ ============
Total RBB, Barclaycard, Corporate Banking and
Wealth and Investment Management Net Interest
Income 2,885 2,775
Investment Bank 261 57
Head Office and Other Operations (48) 45
================================================ ============ ============
Group net interest income 3,098 2,877
-- Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased 4% to GBP2,613m reflecting business growth in UK RBB, Barclaycard and Corporate Banking as net interest margin remained stable. This was partially offset by foreign exchange movements in Africa RBB and the withdrawal from certain business lines in Europe RBB
-- Group net interest income including contributions for the Investment Bank and Head Office and Other Operations increased 8% to GBP3,098m, predominantly due to higher net interest income in UK RBB and the Investment Bank, partially offset by the residual net expense from treasury operations
-- Total contribution to Group net interest income from structured hedges was GBP0.4bn (2013: GBP0.4bn)
1 Product structural hedges convert short term interest margin volatility on product balances (such as non-interest bearing current accounts and managed rate deposits) into a more stable medium term rate and are built on a monthly basis to achieve a targeted maturity profile.
2 Equity structural hedges are in place to manage the volatility in net earnings generated by businesses on the Group's equity, with the impact allocated to businesses in line with their capital usage.
Appendix II - Performance Management
Analysis of Net Interest Margin-Quarterly
Total
Wealth RBB, Barclaycard,
Europe Africa Corporate and Investment Corporate
UK RBB RBB RBB Barclaycard Banking Management and Wealth
Quarter Ended 31.03.14 % % % % % % %
============================= ======== ======= ======= =========== ========= =============== ==================
Customer asset margin 1.24 0.38 3.02 9.50 1.44 0.94 2.24
Customer liability
margin 0.97 0.55 2.76 (0.29) 0.91 1.01 1.01
Customer generated
margin 1.11 0.42 2.91 8.39 1.12 0.99 1.62
Non-customer generated
margin 0.21 0.35 0.48 (0.20) 0.12 0.07 0.17
Net interest margin 1.32 0.77 3.39 8.19 1.24 1.06 1.79
Average customer assets
(GBPm) 137,290 36,533 23,151 37,208 66,612 23,292 324,086
Average customer liabilities
(GBPm) 134,207 13,490 15,751 4,752 100,612 62,181 330,993
Quarter Ended 31.12.13
============================= ======== ======= ======= =========== ========= =============== ==================
Customer asset margin 1.27 0.43 3.16 9.19 1.34 0.98 2.20
Customer liability
margin 0.92 0.38 2.64 (0.27) 0.88 0.97 0.97
Customer generated
margin 1.10 0.42 2.95 8.17 1.06 0.97 1.58
Non-customer generated
margin 0.22 0.35 0.30 (0.10) 0.07 0.05 0.16
Net interest margin 1.32 0.77 3.25 8.07 1.13 1.02 1.74
Average customer assets
(GBPm) 136,100 37,884 24,854 36,640 66,098 22,765 324,341
Average customer liabilities
(GBPm) 133,019 13,466 17,014 4,404 98,973 63,114 329,990
Quarter Ended 31.03.13
============================= ======== ======= ======= =========== ========= =============== ==================
Customer asset margin 1.10 0.45 2.92 9.49 1.24 0.85 2.12
Customer liability
margin 0.96 0.42 2.73 (0.35) 1.02 1.02 1.06
Customer generated
margin 1.03 0.44 2.85 8.77 1.11 0.97 1.62
Non-customer generated
margin 0.25 0.37 0.18 (0.28) 0.12 0.14 0.17
Net interest margin 1.28 0.81 3.03 8.49 1.23 1.11 1.79
Average customer assets
(GBPm) 130,546 40,494 30,451 35,887 66,741 22,221 326,340
Average customer liabilities
(GBPm) 118,721 14,307 18,925 2,822 93,423 55,642 303,840
Appendix III - Consolidated Summary Income Statement and Balance Sheet
Consolidated Summary Income Statement
Three Months Three Months
Ended Ended
Continuing Operations 31.03.14 31.03.13
GBPm GBPm
=============================================== ============ ============
Total income net of insurance claims 6,769 7,483
Credit impairment charges and other provisions (548) (706)
Net operating income 6,221 6,777
Staff costs (2,943) (3,543)
Administration and general expenses (1,492) (1,753)
Operating expenses (4,435) (5,296)
Profit on disposal of undertakings and
share of results of associates and joint
ventures 26 54
Profit before tax 1,812 1,535
Tax (597) (491)
=============================================== ============ ============
Profit after tax 1,215 1,044
Attributable to:
=============================================== ============ ============
Ordinary equity holders of the parent 965 839
Other equity holders 49 -
=============================================== ============ ============
Total equity holders 1,014 839
Non-controlling interests 201 205
=============================================== ============ ============
Profit after tax 1,215 1,044
Earnings per Share from Continuing Operations
=============================================== ============ ============
Basic earnings per ordinary share(1) 5.9p 6.3p
1 Basic earnings per share is based on profit attributable to ordinary equity holders of the parent and the weighted average number of shares excluding treasury shares, and shares held in employee benefit trusts or held for trading. The total basic weighted average number of shares in issue used in the calculation for the three months to 31 March 2014 was 16,246m shares. The total number of ordinary shares in issue at 31 March 2014 was 16,390m ordinary shares.
Appendix III - Consolidated Summary Income Statement and Balance Sheet
Consolidated Summary Balance Sheet(1)
As at As at
31.03.14 31.12.13
Assets GBPm GBPm
================================================= ========= =========
Cash, balances at central banks and items
in the course of collection 56,620 46,969
Trading portfolio assets 134,329 133,069
Financial assets designated at fair value 38,868 38,968
Derivative financial instruments 333,413 355,313
Available for sale financial investments 83,244 91,756
Loans and advances to banks 44,198 39,424
Loans and advances to customers 462,017 431,553
Reverse repurchase agreements and other
similar secured lending 187,046 186,779
Goodwill and intangible assets 7,752 7,685
Other assets 14,461 14,442
================================================= ========= =========
Total assets 1,361,948 1,345,958
Liabilities
================================================= ========= =========
Deposits and items in the course of collection
due to banks 62,345 57,005
Customer accounts 457,400 429,189
Repurchase agreements and other similar
secured borrowing 196,072 196,748
Trading portfolio liabilities 58,031 53,464
Financial liabilities designated at fair
value 64,310 64,796
Derivative financial instruments 329,529 352,226
Debt securities in issue 89,540 86,693
Subordinated liabilities 20,760 21,695
Other liabilities 19,076 20,193
================================================= ========= =========
Total liabilities 1,297,063 1,282,009
Equity
================================================= ========= =========
Called up share capital and share premium 20,592 19,887
Other reserves 424 249
Retained earnings 33,314 33,186
================================================= ========= =========
Shareholders' equity attributable to ordinary
shareholders of the parent 54,330 53,322
Other equity instruments 2,063 2,063
================================================= ========= =========
Total equity excluding non-controlling interests 56,393 55,385
Non-controlling interests 8,492 8,564
================================================= ========= =========
Total equity 64,885 63,949
Total liabilities and equity 1,361,948 1,345,958
1 2013 amounts have been revised to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation. Total assets increased GBP33.7bn with increases of GBP31.0bn for Derivative financial assets, GBP1.6bn for Loans and advances to banks and GBP1.1bn to Loans and advances to customers. A corresponding increase of GBP33.7bn was noted in Total liabilities with increases of GBP31.6bn for Derivative financial liabilities, GBP0.8bn for Deposits and GBP1.3bn for Customer accounts.
Appendix IV - Net Tangible Asset Value per Share
Net Tangible Asset Value Per Share
31.03.14 31.12.13 Variance
GBPm GBPm GBPm
=========================================== ======== ======== ========
Share capital and share premium 20,592 19,887 705
Available for sale reserve 372 148 224
Cash flow hedging reserve 557 273 284
Currency translation reserve (1,428) (1,142) (286)
Other reserves and treasury shares 923 970 (47)
Retained earnings 33,314 33,186 128
=========================================== ======== ======== ========
Shareholders' equity attributable to
ordinary shareholders of the parent 54,330 53,322 1,008
Goodwill and intangible assets 7,752 7,685 67
=========================================== ======== ======== ========
Tangible shareholders' equity attributable
to ordinary shareholders of the parent 46,578 45,637 941
=========================================== ======== ======== ========
m m m
=========================================== ======== ======== ========
Total number of shares in issue 16,390 16,113 277
p p p
=========================================== ======== ======== ========
Net asset value per share 331 331 -
Net tangible asset value per share 284 283 1
Net asset value per share of 331p and net tangible asset value per share of 284p were stable as an increase in equity was offset by an increase in shares issued.
The GBP1.0bn increase in tangible shareholders' equity attributable to ordinary shareholders to GBP46.6bn was due to:
-- Share capital and share premium increased GBP0.7bn due to the issuance of shares under employee share schemes
-- The available for sale reserve increased by GBP0.2bn largely due to gains of GBP1.2bn from changes in the fair value of government bonds offset by 0.9bn of losses on the related fair value hedging instruments
-- The cash flow hedging reserve increased GBP0.3bn reflecting increases in the fair value of interest rate swaps held for hedging purposes
-- The currency translation reserve reduced by GBP0.3bn largely due to the strengthening of GBP against USD, EUR, and ZAR
-- Retained earnings increased by GBP0.1bn principally due to profits during the quarter of GBP1.0bn offset by dividends paid of GBP0.6bn
Appendix V - Capital
CRD IV Capital
The new capital requirements regulation and capital requirements directive implemented Basel 3 within the EU (collectively known as CRD IV) on 1 January 2014. This makes the PRA transitional capital ratios the legally binding capital metrics for Barclays going forward. However, rules and guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.
Capital Ratios As at As at
==============
31.03.14 31.12.13
============== ======== ========
Fully Loaded Common Equity Tier 1 9.6% 9.3%
PRA Transitional Common Equity Tier 1(1) 9.6% 9.2%
PRA Transitional Tier 1 11.9% 11.5%
PRA Transitional Total Capital 15.4% 15.3%
Capital Resources GBPm GBPm
====================================================== ======= =======
Shareholders' equity (excluding non controlling
interests) per the balance sheet 56,393 55,385
- Less: Other equity instruments (recognised
as AT1 capital) (2,063) (2,063)
Adjustment to retained earnings for foreseeable
dividends (411) (640)
Minority interests (amount allowed in consolidated
CET1) 1,178 1,238
Other regulatory adjustments and deductions:
Additional value adjustments (2,550) (2,479)
Goodwill and intangible assets(2) (7,692) (7,618)
Deferred tax assets that rely on future profitability
excluding temporary differences (1,123) (1,045)
Fair value reserves related to gains or losses
on cash flow hedges(2) (555) (270)
Negative amounts resulting from the calculation
of expected loss amounts (2,070) (2,106)
Gains or losses on liabilities at fair value
resulting from own credit(2) 512 600
Other regulatory adjustments (170) (119)
Direct and indirect holdings by an institution
of own CET1 instruments (37) (496)
====================================================== ======= =======
Fully loaded Common Equity Tier 1 capital 41,412 40,387
Regulatory adjustments relating to unrealised
gains(2) (395) (180)
====================================================== ======= =======
PRA Transitional Common Equity Tier 1 capital 41,017 40,207
Additional Tier 1 (AT1) capital
Capital instruments and related share premium
accounts 2,063 2,063
Qualifying AT1 capital (including minority
interests) issued by subsidiaries 9,752 9,726
Less instruments issued by subsidiaries subject
to phase out (1,847) (1,849)
Other regulatory adjustments and deductions (15) -
====================================================== ======= =======
Transitional Additional Tier 1 capital 9,953 9,940
====================================================== ======= =======
PRA Transitional Tier 1 capital 50,970 50,147
Tier 2 (T2) capital
Qualifying T2 capital (including minority
interests) issued by subsidiaries 15,780 16,834
Less instruments issued by subsidiaries subject
to phase out (440) (522)
Other regulatory adjustments and deductions (4) (12)
====================================================== ======= =======
PRA Transitional Total regulatory capital 66,306 66,447
-- As at 31 March 2014, Barclays' fully loaded Tier 1 capital was GBP43,741m, and the fully loaded Tier 1 ratio was 10.2%. Fully loaded total regulatory capital was GBP62,217m and the fully loaded total capital ratio was 14.5%. The fully-loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV
-- The PRA transitional total capital is based on guidance provided in the December 2013 publication of PS 7/13(3) , reflecting the minimum Capital Requirements Regulation (CRR) transitional path for the grandfathering of existing capital instruments within certain limits
1 The transitional CET1 ratio according to the FSA October 2012 transitional statement would be 11.7%.
2 The capital impacts of these items are net of tax.
3 PS 7/13 refers to PRA policy statement PS7/13 on strengthening capital standards published in December 2013.
Appendix V - Capital
Movement in fully loaded Common Equity Tier 1 (CET1) Three Months
Capital
====================================================
Ended
====================================================
31.03.14
GBPm
==================================================== ============
Opening Common Equity Tier 1 capital 40,387
Profit for the period 1,014
Movement in own credit(1) (88)
Movements in dividends (373)
Retained regulatory capital generated from earnings 553
Movement in reserves - net impact of share awards 208
Movement in available for sale reserves 224
Movement in currency translation reserves (286)
Movement in retirement benefits 173
Other reserves movements (9)
====================================================== ======
Movement in other qualifying reserves 310
Movement in regulatory adjustments and deductions:
Minority interests (60)
Additional value adjustments (71)
Goodwill and intangible assets(1) (74)
Deferred tax assets that rely on future profitability
excluding those arising from temporary differences (78)
Negative amounts resulting from the calculation of
expected loss amounts 36
Direct and indirect holdings by an institution of own
CET1 instruments 459
Other regulatory adjustments (51)
====================================================== ======
Closing Common Equity Tier 1 capital 41,412
-- The fully loaded Common Equity Tier 1 ratio increased to 9.6% (2013: 9.3%) reflecting an increase in Common Equity Tier 1 capital of GBP1.0bn to GBP41.4bn
-- Barclays generated GBP1.0bn capital from profits in the period. After adjusting for own credit and regulatory foreseeable dividends, retained regulatory capital generated from earnings increased Common Equity Tier 1 capital by GBP0.6bn. Other material movements in Common Equity Tier 1 were:
- GBP0.5bn decrease in the deduction for holdings of own Common Equity Tier 1 instruments following further management actions
- GBP0.3bn reduction due to currency movements, primarily due to strengthening of GBP against EUR, USD and ZAR
- GBP0.2bn increase due to gains in the available for sale reserve
- GBP0.2bn increase in the pension reserve following actuarial remeasurements on the UK Retirement Fund. The movement was largely driven by a reduction in the UK inflation rate
-- Transitional total capital decreased by GBP0.1bn to GBP66.3bn on a transitional basis due to the increase in fully loaded CET1 largely being offset by the removal of gains in the available for sale reserves in CET1 and a Tier 2 redemption of dated subordinated liabilities
1 The capital impacts of these items are net of tax.
Appendix V - Capital
Movement in CRD IV RWAs Credit Counterparty Market Operational Total
Credit
Risk Risk Risk Risk RWAs
GBPbn GBPbn GBPbn GBPbn GBPbn
=========================== ====== ============ ====== =========== ======
As at 1 January 2014 253.1 59.1 69.1 54.3 435.6
Book size 4.9 (9.2) 1.3 - (3.0)
Acquisition and disposals (1.1) - - - (1.1)
Book quality (2.0) (0.8) 1.2 - (1.6)
Model updates 6.1 3.5 (0.2) 2.4 11.8
Methodology and policy (9.1) 0.8 (3.1) - (11.4)
Foreign exchange movements (0.7) - - - (0.7)
Other (2.5) 2.3 - - (0.2)
=========================== ====== ============ ====== =========== ======
As at 31 March 2014 248.7 55.7 68.3 56.7 429.4
RWAs decreased by GBP6.2bn to GBP429.4bn, driven by:
-- Book size decreased RWAs by GBP3.0bn, primarily driven by risk reductions in the trading book, offset by balance sheet growth in UK RBB and Corporate Banking
-- Acquisitions and disposals decreased RWAs by GBP1.1bn, primarily driven by Exit Quadrant assets
-- Book quality improved, resulting in a RWA reduction of GBP1.6bn, primarily driven by a change in risk profile within the Investment Bank
-- Model updates increased RWAs by GBP11.8bn, driven by a revision of probability of default metrics for wholesale portfolios, including certain Exit Quadrant assets, and the annual operational risk refresh
-- Methodology and policy changes decreased RWAs by GBP11.4bn, primarily driven by changes to the treatment of high quality liquidity assets and refinements in approach relating to the trading book
-- Foreign exchange movements decreased RWAs by GBP0.7bn, primarily driven by the appreciation of GBP against EUR, USD and ZAR
Leverage ratio requirements
-- CRD IV introduces a non-risk based leverage ratio that is intended to act as a supplementary back stop to risk based capital measures. Under CRD IV, banks are required to report their leverage ratio for supervisory review purposes from 2014 and, from 2015, to publish their leverage ratios in Pillar 3 disclosures, with the expectation that a binding Pillar I requirement will be introduced across the EU from 2018
-- Barclays has disclosed an estimated leverage ratio based on current understanding of the requirements and guidance of CRD IV as currently published which is subject to further change as the rules are finalised and fully implemented
-- The PRA has communicated its expectation that Barclays meets a 3% estimated PRA adjusted leverage ratio by June 2014. As at 31 March 2014, Barclays exceeded the PRA's expected leverage ratio and expects to maintain this going forward
Appendix VI - Leverage
Estimated CRD IV Leverage
IFRS Leverage Leverage
Balance Sheet Exposure Exposure
As at 31.03.14 As at 31.03.14 As at 31.12.13(1)
Leverage Exposure GBPbn GBPbn GBPbn
=============================================== ============== ============== =================
Derivatives
IFRS derivative financial instruments 333 333 355
Additional netting adjustments for derivatives (264) (285)
Potential Future Exposure on derivatives 213 256
----------------------------------------------- -------------- -------------- -----------------
Total derivatives 282 326
Securities Financing Transactions (SFTs)
Reverse repurchase agreements and other
similar secured lending 187 187 187
Remove IFRS reverse repurchase agreements
and other similar secured lending (187) (187)
Add leverage exposure measures for SFTs 72 92
----------------------------------------------- -------------- -------------- -----------------
Total Securities Financing Transactions 72 92
Other assets and adjustments
Loans and advances and other assets 842 842 804
Undrawn commitments 176 179
Regulatory deductions and other adjustments (30) (22)
----------------------------------------------- -------------- -------------- -----------------
Total other assets and adjustments 988 961
Total exposure 1,362 1,342 1,379
PRA adjustment to CRD IV leverage exposure (16) (14)
----------------------------------------------- -------------- -------------- -----------------
PRA adjusted leverage exposure 1,326 1,365
Leverage Leverage
Ratio Ratio
As at 31.03.14 As at 31.12.13
CET1 capital 41.4 40.4
Additional Tier 1 capital 2.3 2.3
----------------------------------------------- -------------- -------------- -----------------
Tier 1 capital 43.7 42.7
PRA deductions to CET1 capital (2.2) (2.2)
----------------------------------------------- -------------- -------------- -----------------
PRA adjusted Tier 1 capital 41.5 40.5
Fully loaded CRD IV leverage ratio 3.3% 3.1%
PRA leverage ratio 3.1% 3.0%
-- The estimated PRA leverage exposure decreased GBP39bn to GBP1,326bn, primarily driven by:
- GBP17bn reduction in derivative PFE as a result of trade compression and tear ups
- GBP20bn reduction in the leverage exposure measure for SFTs primarily driven by collateral and netting optimisations
- GBP26bn reduction in derivative PFE as a result of changes to the basis of calculation, principally relating to sold options and mark-to-market resets, reflecting our latest understanding on the application of the CRR rules
- Partially offset by a GBP33bn increase in settlement balances since the year end
-- The leverage exposure calculation reflects Barclays' current understanding of the regulatory requirements and guidance, and their application in the industry. A number of items, including the changes to the basis of the PFE calculation applied in Q114, have been submitted to the EBA for clarification
1 The balance sheet as at 31 December 2013 has been revised to adopt the offsetting amendments to IAS32, Financial Instruments.
Appendix VII - Credit Risk
Analysis of Loans and Advances and Impairment
CRLs %
Gross Impairment L&A Net Credit of Gross Loan Impairment Loan Loss
As at 31.03.14 L&A Allowance of Impairment Risk Loans L&A Charges(1) Rates
GBPm GBPm GBPm GBPm % GBPm bps
=========================== ======= ========== ============== =========== ========= =============== =========
UK RBB 139,395 1,314 138,081 2,687 1.9 80 23
Europe RBB 37,028 685 36,343 1,903 5.1 49 54
Africa RBB 19,203 487 18,716 984 5.1 45 95
Barclaycard 37,850 1,934 35,916 2,050 5.4 311 333
Corporate Banking 17 3 14 3 17.6 - -
Wealth and Investment
Management 2,851 18 2,833 43 1.5 - -
=========================== ======= ========== ============== =========== ========= =============== =========
Total retail loans
and advances at amortised
cost 236,344 4,441 231,903 7,670 3.2 485 83
Investment Bank(2) 179,616 430 179,186 787 0.4 (25) (6)
Corporate Banking 69,029 1,842 67,187 3,475 5.0 78 46
=========================== ======= ========== ============== =========== ========= =============== =========
- UK 53,197 377 52,820 1,152 2.2 36 27
- Europe 6,015 1,346 4,669 2,158 35.9 41 276
- Rest of World 9,817 119 9,698 165 1.7 1 4
=========================== ======= ========== ============== =========== ========= =============== =========
Wealth and Investment
Management 21,240 188 21,052 752 3.5 17 32
Africa RBB 5,773 215 5,558 523 9.1 14 98
Head Office and Other
Operations 1,329 - 1,329 - - - -
=========================== ======= ========== ============== =========== ========= =============== =========
Total wholesale loans
and advances at amortised
cost 276,987 2,675 274,312 5,537 2.0 84 12
Loans and advances
at amortised cost 513,331 7,116 506,215 13,207 2.6 569 45
Traded Loans 2,966 n/a 2,966
Loans and advances
designated at fair
value 18,896 n/a 18,896
=========================== ======= ========== ==============
Loans and advances
held at fair value 21,862 n/a 21,862
Total loans and advances 535,193 7,116 528,077
As at 31.12.13
=========================== ======= ========== ============== =========== ========= =============== =========
UK RBB 138,056 1,308 136,748 2,664 1.9 347 25
Europe RBB 38,016 660 37,356 1,801 4.7 287 75
Africa RBB 19,363 491 18,872 1,026 5.3 259 134
Barclaycard 37,468 1,856 35,612 1,992 5.3 1,264 337
Corporate Banking 488 39 449 45 9.2 (5) (102)
Wealth and Investment
Management 2,828 18 2,810 39 1.4 9 32
=========================== ======= ========== ============== =========== ========= =============== =========
Total retail loans
and advances at amortised
cost 236,219 4,372 231,847 7,567 3.2 2,161 91
Investment Bank(2) 147,025 468 146,557 753 0.5 209 14
Corporate Banking 66,246 1,991 64,255 3,694 5.6 517 78
=========================== ======= ========== ============== =========== ========= =============== =========
- UK 51,805 369 51,436 1,175 2.3 173 33
- Europe 6,327 1,494 4,833 2,343 37.0 321 507
- Rest of World 8,114 128 7,986 176 2.2 23 28
=========================== ======= ========== ============== =========== ========= =============== =========
Wealth and Investment
Management 20,995 192 20,803 704 3.4 112 53
Africa RBB 5,875 235 5,640 580 9.9 65 111
Head Office and Other
Operations 1,875 - 1,875 - - (2) (11)
=========================== ======= ========== ============== =========== ========= =============== =========
Total wholesale loans
and advances at amortised
cost 242,016 2,886 239,130 5,731 2.4 901 37
Loans and advances
at amortised cost 478,235 7,258 470,977 13,298 2.8 3,062 64
Traded Loans 1,647 n/a 1,647
Loans and advances
designated at fair
value 18,695 n/a 18,695
=========================== ======= ========== ==============
Loans and advances
held at fair value 20,342 n/a 20,342
Total loans and advances 498,577 7,258 491,319
1 Excludes impairment charges on available for sale investments and reverse repurchase agreements.
2 Investment Bank gross loans and advances include cash collateral and settlement balances of GBP125,916m as at 31 March 2014 and GBP94,018m as at 31 December 2013. Excluding these balances CRLs as a proportion of gross loans and advances were 1.5% and 1.4% respectively. 2013 amounts in the Investment Bank have been revised to adopt the implementation of IAS 32, Financial Instruments: Presentation. Gross loans and advances at amortised cost have increased by GBP2,713m with no impact on Credit Risk Loans.
Appendix VIII - Other Information
Other Information
Results Timetable(1) Date
===================================================================== ============
Ex-dividend date 14 May 2014
Dividend Record date 16 May 2014
Scrip reference share price set and made available to shareholders(2) 21 May 2014
Cut off time of 4.30 pm (London time) for the receipt of Mandate
Forms or Revocation Forms (as applicable) 2 June 2014
Dividend Payment date/first day of dealing in New Shares 23 June 2014
2014 Interim Results Announcement 30 July 2014
For qualifying US and Canadian resident ADR holders, the first
interim dividend of 1p per ordinary share becomes 4p per ADS (representing
four shares). The ADR depositary will post the first interim dividend
on 23 June 2014 to ADR holders on the record at close of business
on 16 May 2014.
Three Three Three
Months Months Months
Ended Ended Ended % Change % Change
Exchange Rates(3) 31.03.14 31.12.13 31.03.13 31.12.13(4) 31.03.13(4)
======================================== ======== ======== ======== =========== ===========
Period end - USD/GBP 1.67 1.65 1.52 1% 10%
Average - USD/GBP 1.66 1.62 1.55 2% 7%
Period end - EUR/GBP 1.21 1.20 1.18 1% 3%
Average - EUR/GBP 1.21 1.19 1.17 2% 3%
Period end - ZAR/GBP 17.54 17.37 13.96 1% 26%
Average - ZAR/GBP 17.97 16.43 13.87 9% 30%
Share Price Data 31.03.14 31.03.13
======================================== ======== ======== ======== =========== ===========
Barclays PLC (p) 233.40 291.15
Barclays Africa Group Limited (formerly
Absa Group Limited) (ZAR) 149.00 155.00
For further information please contact
Investor Relations Media Relations
================== ===============
Charlie Rozes +44 (0) 20 7116 5752 Giles Croot +44 (0) 20 7116 6132
More information on Barclays can be found on our website: www.Barclays.com
Registered Office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0)
20 7116 1000. Company number: 48839
Registrar
The Registrar to Barclays, Aspect House, Spencer Road, Lancing,
West Sussex BN99 6DA United Kingdom.
Tel: 0871 384 20554(5) from the UK or +44 121 415 7004 from overseas.
1 Note that these announcement dates are provisional and subject to change. Any changes to the Scrip Dividend Programme dates will be made available at Barclays.com/dividends.
2 Scrip reference share price being the average of the closing middle market quotations for ordinary shares, derived from the London Stock Exchange Daily Official List, for the five consecutive business days from Wednesday 14 May 2014 (June 2014 ex-dividend date) to Tuesday 20 May 2014 (inclusive).
3 The average rates shown above are derived from daily spot rates during the year used to convert foreign
currency transactions into GBP for accounting purposes. 4 The change is the impact to GBP reported information.
5 Calls cost 8p per minute plus network extras. Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding UK public holidays.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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