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BARC Barclays Plc

183.20
1.68 (0.93%)
28 Mar 2024 - Closed
Delayed by 15 minutes
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
  1.68 0.93% 183.20 183.48 183.52 185.68 182.82 183.32 54,857,915 16:35:20
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Commercial Banks, Nec 25.38B 5.26B 0.3470 5.29 27.81B

Barclays PLC Final Results (6098X)

23/02/2017 7:01am

UK Regulatory


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RNS Number : 6098X

Barclays PLC

23 February 2017

Barclays PLC

Results Announcement

31 December 2016

Table of Contents

 
 Results Announcement                               Page 
 Notes                                                 1 
 Performance Highlights                              2-6 
 Group Finance Director's Review                    7-11 
 Results by Business 
 -- Barclays UK                                    12-14 
 
   *    Barclays International                     15-17 
 
   *    Head Office                                   18 
                                                   19-20 
  *    Barclays Non-Core                              21 
 
 
   *    Discontinued Operation - Africa Banking 
 Quarterly Results Summary                         22-24 
 Quarterly Core Results by Business                25-29 
  Quarterly Discontinued Operation Results            30 
 Performance Management 
 
   *    Margins and Balances                          31 
 
   *    Remuneration                               32-33 
 Risk Management 
 
   *    Liquidity                                  34-37 
 
   *    Capital                                    38-44 
 
   *    Credit Risk                                45-49 
 Statement of Director's Responsibilities             50 
 Condensed Consolidated Financial Statements       51-55 
 Financial Statement Notes                         56-64 
 Appendix: Non-IFRS performance measures           65-75 
 Shareholder Information                              76 
 

BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839

Notes

The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the year ended 31 December 2016 to the corresponding twelve months of 2015 and balance sheet analysis as at 31 December 2016 with comparatives relating to 31 December 2015. The abbreviations 'GBPm' and 'GBPbn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively; and the abbreviations 'EURm' and 'EURbn' represent millions and thousands of millions of Euros respectively.

Comparatives have been restated to reflect the implementation of the Group business reorganisation. These restatements were detailed in our announcement on 14 April 2016, accessible at home.barclays/results.

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.

Notable items as set out on page 5 are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Results excluding notable items have been included in the appendix.

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 home.barclays/results.

The information in this announcement, which was approved by the Board of Directors on 22 February 2017, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2016, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (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.

These results will be furnished as a Form 20-F to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 20-F will also be available from the Barclays Investor Relations website home.barclays/results and from the SEC's website at www.sec.gov.

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

Non-IFRS performance measures

Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the business' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. 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 or guidance regarding the Group's future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, structural reform, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, rundown of assets and businesses within Barclays Non-Core, sell down of the Group's interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers 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, 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, future levels of notable items, 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, US, 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 any entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implications of the results of the 23 June 2016 referendum in the United Kingdom and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; the implementation of the strategic cost 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, expectations and guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our annual report on form 20-F for the fiscal year ended 31 December 2016), which are available on the SEC's website at www.sec.gov.

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Performance Highlights

Transatlantic Consumer, Corporate and Investment Bank with Global Reach

Our strategy is on track with good progress in 2016

 
 -- Core returns: 
                           *    Core business performed well reflecting the benefits 
                                of diversification across customers and clients, 
                                geographies and products, with a 4% growth in profit 
                                before tax excluding notable items(1) to GBP6,436m, 
                                delivering a 9.4% return on average allocated 
                                tangible equity that was GBP4bn higher at GBP41bn 
 
 
                           *    Return on average allocated tangible equity (RoTE) 
                                excluding notable items in Barclays UK was 19.3% and 
                                in Barclays International was 8.0% 
----------------------  -------------------------------------------------------------- 
 -- Non-Core rundown: 
                           *    GBP22bn reduction in risk weighted assets (RWAs) to 
                                GBP32bn, despite adverse foreign exchange (FX) 
                                movements 
 
 
                           *    Completed the sale of a number of businesses during 
                                the year, including the Asia wealth and investment 
                                management, and Southern European cards businesses in 
                                Q416, and signed the agreement for the sale of the 
                                French retail business in the quarter 
 
 
                           *    Good progress on the accelerated rundown of Non-Core; 
                                decision taken to close the unit six months ahead of 
                                plan on 30 June 2017 with RWAs expected to be 
                                approximately GBP25bn at this date 
----------------------  -------------------------------------------------------------- 
 -- Common Equity 
  Tier 1 (CET1)            *    Profit before tax of GBP3,230m drove strong organic 
  ratio:                        capital ratio growth with 100bps of CET1 ratio 
                                accretion to 12.4% 
 
 
                           *    In Q416, the CET1 ratio increased 80bps through 
                                reduced RWAs, and an increase in reserves, including 
                                from the GBP1.1bn improvement in the deficit of the 
                                UK Retirement Fund (UKRF) defined benefit pension 
                                scheme 
 
 
                           *    On track to meeting revised end-state CET1 capital 
                                ratio of 150bps to 200bps above the minimum 
                                regulatory level 
----------------------  -------------------------------------------------------------- 
 -- Core costs: 
                           *    Decision taken in Q416, relating to 2016 compensation 
                                awards, to more closely align income statement 
                                recognition with performance awards and harmonise 
                                deferral structures across the Group 
 
 
                           *    The total incentive awards granted reduced 1% to 
                                GBP1,533m, with the changes to awards resulting in a 
                                GBP395m income statement charge in Q416, of which 
                                GBP390m was in Core. As a result, Core costs for 2016 
                                exceeded the guidance of GBP13.0bn(2) by that amount 
 
 
                          -- Core cost: income ratio excluding notable items 
                          improved from 62% to 61% 
----------------------  -------------------------------------------------------------- 
 -- Barclays Africa      -- First sale of 12.2% stake completed in May 2016, 
  Group Limited           resulting in a c.10bps benefit to the CET1 ratio 
  (BAGL) sell down:        *    Separation terms now agreed with BAGL, subject to 
                                regulatory approval. These terms include 
                                contributions totalling GBP765m payable over the 
                                period through to completion of the next sale of 
                                Barclays' stake in BAGL to below 50% 
 
 
                           *    Remain on track to achieve regulatory deconsolidation, 
                                with further sell down subject to regulatory 
                                approval. Estimate in excess of 75bps Group CET1 
                                ratio accretion on regulatory deconsolidation based 
                                on the 31 December 2016 BAGL share price and ZAR 
                                exchange rate 
----------------------  -------------------------------------------------------------- 
 -- Holding Company 
  (HoldCo) transition:     *    Progressed the transition to HoldCo funding with 
                                GBP12.1bn of issuance and GBP7.4bn of Operating 
                                Company (OpCo) capital and debt repurchased or 
                                redeemed 
 
 
                           *    Moody's upgraded the HoldCo's long-term senior rating 
                                one notch to Baa2 on 12 December 2016 
----------------------  -------------------------------------------------------------- 
 
 
 1   Notable items in Core totalled a net loss before tax of GBP420m 
      (2015: GBP2,442m), as detailed on page 5. Refer to the appendix 
      on pages 65-75 for further information, reconciliations and calculations 
      of non-IFRS performance measures included throughout this document. 
 2   Guidance excluded litigation and conduct charges and was adjusted 
      for FX at Q316. 
 

Group Chief Executive Officer's Review

"A year ago we laid out our intention to accelerate the restructuring of Barclays and refocus our business as a transatlantic, consumer, corporate and investment bank, anchored in London and New York.

We have made strong progress against this agenda in 2016.

Our Core businesses, Barclays UK and Barclays International, are doing well, with profit before tax excluding notable items up 4% to GBP6.4bn.

Barclays UK produced an impressive RoTE of 19.3% excluding notable items, and continues to deliver market-leading innovation for customers, including voice security, contactless cash, a new direct investing platform, and in airing the first fraud prevention TV ad campaign from a major UK bank.

Barclays International delivered a RoTE of 8.0% excluding notable items. We brought further focus to the Corporate and Investment Bank, with income growing 6%, solidifying our position in the bulge bracket. We also saw strong growth in Consumer, Cards and Payments, as income increased 21%, driven by improvements in all key businesses.

Combined, the Core RoTE, excluding notable items, was 9.4%.

Accelerating the closure of Barclays Non-Core is a key part of realising the potential of Barclays. In 2016 we reduced Non-Core RWAs by GBP22bn, with GBP12bn of that reduction coming in the final quarter alone. Today, we are announcing that we will close Non-Core on 30 June 2017, six months earlier than previously targeted.

We reduced our ownership of Barclays Africa with an initial sale of 12.2% in May. In the fourth quarter we agreed with local management and submitted to regulators our proposed separation arrangements for Barclays Africa. This is a key milestone before a further reduction in our stake at the appropriate time.

The progress on our priorities resulted in organic profit generation which strengthened our CET1 capital ratio by 100 basis points in 2016 to 12.4%. This puts us well on track to meet our end-state target and we are well positioned to absorb headwinds over the next few years. Certain legacy conduct issues remain and we intend to make further progress on them.

In short, we have accomplished a lot in a year, and I am thankful to each and every one of our colleagues who have made this possible. Their efforts mean that, in 2017, we can begin to move on from the restructuring of Barclays, shifting our focus solely to the future, and in particular to how we can generate attractive, sustainable, and distributable returns for our shareholders.

This means increasing management focus on Barclays UK and Barclays International, the future of this firm. Together, they encompass a diverse set of market leading consumer and wholesale businesses, giving us growth opportunities across a wide waterfront, and resilience in earnings.

And we intend to build these businesses on a foundation of world class operations and technology, where core functions for our Group are standardised across the company, streamlining costs, driving high quality analytics, and hugely improving the experience of our customers and clients, which is key to driving loyalty and long term growth.

We are now just months away from completing the restructuring of Barclays, and I am more optimistic than ever for our prospects in 2017, and beyond."

James E Staley, Group Chief Executive Officer

 
Barclays Group results 
for the year ended                              31.12.16    31.12.15       YoY 
                                                    GBPm        GBPm  % Change 
============================================  ==========  ==========  ======== 
Total income                                      21,451      22,040       (3) 
Credit impairment charges and other 
 provisions                                      (2,373)     (1,762)      (35) 
============================================  ==========  ==========  ======== 
Net operating income                              19,078      20,278       (6) 
Operating expenses                              (14,565)    (13,723)       (6) 
UK bank levy                                       (410)       (426)         4 
Litigation and conduct                           (1,363)     (4,387)        69 
============================================  ==========  ==========  ======== 
Total operating expenses                        (16,338)    (18,536)        12 
Other net income/(expenses)                          490       (596) 
============================================  ==========  ==========  ======== 
Profit before tax                                  3,230       1,146 
Tax charge                                         (993)     (1,149)        14 
============================================  ==========  ==========  ======== 
Profit/(loss) after tax in respect 
 of continuing operations                          2,237         (3) 
Profit after tax in respect of discontinued 
 operation(1)                                        591         626       (6) 
Non-controlling interests in respect 
 of continuing operations                          (346)       (348)         1 
Non-controlling interests in respect 
 of discontinued operation(1)                      (402)       (324)      (24) 
Other equity holders(2)                            (457)       (345)      (32) 
============================================  ==========  ==========  ======== 
Attributable profit/(loss)                         1,623       (394) 
 
Performance measures 
============================================  ==========  ==========  ======== 
Return on average tangible shareholders' 
 equity(2)                                          3.6%      (0.7%) 
Average tangible shareholders' equity 
 (GBPbn)                                            48.7        47.7 
Cost: income ratio                                   76%         84% 
Loan loss rate (bps)                                  53          42 
 
Basic earnings/(loss) per share(2)                 10.4p      (1.9p) 
Dividend per share                                  3.0p        6.5p 
 
Balance sheet and capital management 
============================================  ==========  ==========  ======== 
Tangible net asset value per share                  290p        275p 
Common equity tier 1 ratio                         12.4%       11.4% 
Common equity tier 1 capital                   GBP45.2bn   GBP40.7bn 
Risk weighted assets                            GBP366bn    GBP358bn 
Leverage ratio                                      4.6%        4.5% 
Fully loaded tier 1 capital                    GBP52.0bn   GBP46.2bn 
Leverage exposure                             GBP1,125bn  GBP1,028bn 
 
Funding and liquidity 
============================================  ==========  ==========  ======== 
Group liquidity pool                            GBP165bn    GBP145bn 
CRD IV liquidity coverage ratio                     131%        133% 
Loan: deposit ratio(3)                               83%         86% 
 
 
 1   Refer to page 21 for further information on the Africa Banking 
      discontinued operation. 
 2   The profit after tax attributable to other equity holders of GBP457m 
      (2015: GBP345m) is offset by a tax credit recorded in reserves 
      of GBP128m (2015: GBP70m). The net amount of GBP329m (2015: GBP275m), 
      along with non-controlling interests (NCI) is deducted from profit 
      after tax in order to calculate earnings per share and return on 
      average tangible shareholders' equity. 
 3   Loan: deposit ratio for Barclays UK, Barclays International and 
      Non-Core, excluding investment banking businesses. 
 
 
Barclays Core and Non-Core                      Barclays Core                Barclays Non-Core 
 results for the year ended 
                                        ==============================  ============================ 
                                          31.12.16  31.12.15       YoY  31.12.16  31.12.15       YoY 
                                              GBPm      GBPm  % Change      GBPm      GBPm  % Change 
======================================  ==========  ========  ========  ========  ========  ======== 
Total income                                22,615    21,428         6   (1,164)       612 
Credit impairment charges and 
 other provisions                          (2,251)   (1,628)      (38)     (122)     (134)         9 
======================================  ==========  ========  ========  ========  ========  ======== 
Net operating income/(expenses)             20,364    19,800         3   (1,286)       478 
Operating expenses                        (13,056)  (11,765)      (11)   (1,509)   (1,958)        23 
UK bank levy                                 (334)     (338)         1      (76)      (88)        14 
Litigation and conduct                     (1,117)   (3,887)        71     (246)     (500)        51 
======================================  ==========  ========  ========  ========  ========  ======== 
Total operating expenses                  (14,507)  (15,990)         9   (1,831)   (2,546)        28 
Other net income/(expenses)                    159      (61)                 331     (535) 
======================================  ==========  ========  ========  ========  ========  ======== 
Profit/(loss) before tax                     6,016     3,749        60   (2,786)   (2,603)       (7) 
Tax (charge)/credit                        (1,975)   (1,479)      (34)       982       330 
======================================  ==========  ========  ========  ========  ========  ======== 
Profit/(loss) after tax                      4,041     2,270        78   (1,804)   (2,273)        21 
Non-controlling interests                    (297)     (266)      (12)      (49)      (82)        40 
Other equity holders                         (394)     (282)      (40)      (63)      (63)         - 
======================================  ==========  ========  ========  ========  ========  ======== 
Attributable profit/(loss)(1)                3,350     1,722        95   (1,916)   (2,418)        21 
 
Performance measures 
======================================  ==========  ========  ========  ========  ========  ======== 
Return on average allocated 
 tangible equity                              8.4%      4.8% 
Average allocated tangible 
 equity (GBPbn)(1)                            41.0      36.8                 7.8      10.9 
Period end allocated tangible 
 equity (GBPbn)(1)                            43.8      37.8                 5.4       8.5 
Cost: income ratio                             64%       75%                 n/m       n/m 
Loan loss rate (bps)                            58        45                  22        23 
Basic earnings/(loss) per share 
 contribution                                20.5p     10.7p             (11.3p)   (14.4p) 
 
 
Capital management 
======================================  ==========  ========  ========  ========  ========  ======== 
Risk weighted assets(1)                   GBP334bn  GBP304bn             GBP32bn   GBP54bn 
Leverage exposure(1)                    GBP1,024bn  GBP879bn            GBP101bn  GBP149bn 
 
Notable items 
======================================  ==========  ========  ========  ========  ========  ======== 
Total income 
Own credit                                    (35)       430                   -         - 
Gain on disposal of Barclays' 
 share of Visa Europe Limited                  615         -                   -         - 
Gains on US Lehman acquisition 
 assets                                          -       496                   -         - 
Litigation and conduct 
Provisions for UK customer 
 redress                                   (1,000)   (2,649)                   -     (123) 
Provisions for ongoing investigations 
 and litigation including Foreign 
 Exchange                                        -   (1,036)                   -     (201) 
Operating expenses 
Gain on valuation of a component 
 of the defined retirement benefit 
 liability                                       -       429                   -         - 
Impairment of goodwill and 
 other assets relating to businesses 
 being disposed                                  -         -                   -      (96) 
Other net expenses 
Losses on sale relating to 
 the Spanish, Portuguese and 
 Italian businesses                              -     (112)                   -     (468) 
--------------------------------------  ----------  --------  --------  --------  --------  -------- 
Total notable items                          (420)   (2,442)                   -     (888) 
 

Excluding notable items, the Core return on average allocated tangible equity was 9.4% (2015: 11.2%) and the Core basic earnings per share was 23.1p (2015: 24.9p). Excluding notable items, the Non-Core basic loss per share was 11.3p (2015: 10.2p).

 
 1   Attributable profit in respect of the Africa Banking discontinued 
      operation is reported at the Group level only. Allocated tangible 
      equity, RWAs and leverage exposure are reported in Head Office 
      within Core. 
 
 
 
                         Year ended  Year ended 
                           31.12.16    31.12.15       YoY 
Income by business             GBPm        GBPm  % Change 
=======================  ==========  ==========  ======== 
Barclays UK                   7,517       7,343         2 
Barclays International       14,995      13,747         9 
Head Office                     103         338      (70) 
=======================  ==========  ==========  ======== 
Barclays Core                22,615      21,428         6 
Barclays Non-Core           (1,164)         612 
=======================  ==========  ==========  ======== 
Barclays Group               21,451      22,040       (3) 
 
 
Profit/(loss) before tax by business 
=====================================  =======  =======  === 
Barclays UK                              1,738      585 
Barclays International                   4,211    3,278   28 
Head Office                                 67    (114) 
=====================================  =======  =======  === 
Barclays Core                            6,016    3,749   60 
Barclays Non-Core                      (2,786)  (2,603)  (7) 
=====================================  =======  =======  === 
Barclays Group                           3,230    1,146 
 

Group Finance Director's Review

2016 reflected the good operational performance of Barclays UK and Barclays International with the benefits of diversification across customers and clients, geographies and products coming through. The Core business generated a RoTE excluding notable items of 9.4% (2015: 11.2%) on a GBP4bn increased average allocated tangible equity base of GBP41bn. The Core business also generated positive cost: income jaws and we intend to continue to reduce the Group's structural cost base, targeting a Group cost: income ratio of less than 60% over time. The accelerated Non-Core rundown resulted in a reduction in RWAs of GBP22bn to GBP32bn resulting in the decision to close the unit six months ahead of plan on 30 June 2017. Capital ratio progression towards end-state target of 150bps to 200bps above the minimum regulatory level was strong with a CET1 ratio of 12.4% (December 2015: 11.4%), largely reflecting profit generation in the period.

Group performance

 
 --   Return on average tangible shareholders' equity was 3.6% (2015: 
       (0.7%)) and basic earnings per share was 10.4p (2015: (1.9p)) 
 --   Profit before tax increased to GBP3,230m (2015: GBP1,146m). The 
       Group performance reflected good Core results whilst being impacted 
       by the Non-Core loss before tax of GBP2,786m (2015: GBP2,603m) 
       and provisions for UK customer redress of GBP1,000m (2015: GBP2,772m). 
       The appreciation of average USD and EUR against GBP positively 
       impacted income and adversely affected impairment and operating 
       expenses 
 --   Total income decreased 3% to GBP21,451m as Non-Core income reduced 
       GBP1,776m to a net expense of GBP1,164m due to the acceleration 
       of the Non-Core rundown, while Core income increased 6% to GBP22,615m 
       driven by Barclays International 
 --   Credit impairment charges increased GBP611m to GBP2,373m including 
       a GBP320m charge in Q316 following the management review of the 
       UK and US cards portfolio impairment modelling. This resulted in 
       a 11bps increase in the loan loss rate to 53bps 
 --   Total operating expenses reduced 12% to GBP16,338m reflecting lower 
       litigation and conduct charges. This was partially offset by the 
       non-recurrence of the prior year gain of GBP429m on the valuation 
       of a component of the defined retirement benefit liability, increased 
       structural reform implementation costs, and a GBP150m charge in 
       Barclays International in Q316, relating to a reduction in the 
       real estate footprint which will generate savings in future periods. 
       Operating expenses also included a GBP395m additional charge in 
       Q416 relating to 2016 compensation awards 
 --   The effective tax rate on profit before tax decreased to 30.7% 
       (2015: 100.3%) principally as a result of a reduction in non-deductible 
       charges 
 --   Profit after tax in respect of continuing operations increased 
       to GBP2,237m (2015: loss of GBP3m). Profit after tax in relation 
       to the Africa Banking discontinued operation decreased 6% to GBP591m 
       as increased credit impairment charges and operating expenses were 
       partially offset by income growth 
 --   Notable items totalled a net loss before tax of GBP420m (2015: 
       GBP3,330m) comprising provisions for UK customer redress of GBP1,000m 
       (2015: GBP2,772m), a GBP615m (2015: GBPnil) gain on disposal of 
       Barclays' share of Visa Europe Limited and an own credit loss of 
       GBP35m (2015: gain of GBP430m) 
 

All performance commentary which follows excludes the impact of notable items. Refer to pages 68-71 for a reconciliation of results excluding notable items.

Core performance

 
 --   The Core business generated a RoTE of 9.4% (2015: 11.2%) on an 
       average allocated tangible equity base that was GBP4bn higher at 
       GBP41bn, due to Core earnings generation and capital returned from 
       the Non-Core 
 --   Profit before tax increased 4% to GBP6,436m reflecting good performance 
       in both Barclays UK and Barclays International, with an improvement 
       in the cost: income ratio to 61% (2015: 62%). This included the 
       benefit of the appreciation of average USD and EUR against GBP 
 --   Total income increased 7% to GBP22,035m with Barclays International 
       income increasing 10% to GBP14,531m, with growth in both Corporate 
       and Investment Bank, and Consumer, Cards and Payments, while Barclays 
       UK income was broadly in line at GBP7,366m (2015: GBP7,343m) 
 --   Credit impairment charges increased 38% to GBP2,251m resulting 
       in a 13bps increase in the loan loss rate to 58bps, including a 
       GBP320m charge in Q316 following the management review of the UK 
       and US cards portfolio impairment modelling, and a number of single 
       name exposures 
 --   Total operating expenses increased 6% to GBP13,507m, including 
       a GBP390m charge in Q416 relating to the 2016 compensation awards, 
       increased structural reform implementation costs, and a GBP150m 
       charge in Barclays International in Q316 relating to a reduction 
       in the real estate footprint 
 

Barclays UK

 
 --   RoTE was 19.3% (2015: 21.1%) as profit before tax decreased 5% 
       to GBP2,587m driven by an increase in credit impairment charges, 
       partially offset by a reduction in total operating expenses 
 --   Total income was broadly in line at GBP7,366m (2015: GBP7,343m), 
       within which: 
      -   Personal Banking income increased 1% to GBP3,762m, Barclaycard 
           Consumer UK income decreased 2% to GBP2,022m and Wealth, Entrepreneurs 
           & Business Banking (WEBB) income increased 1% to GBP1,582m 
      -   Net interest income increased 1% to GBP6,048m, with the net interest 
           margin increasing 6bps to 3.62% reflecting higher margins on 
           deposits, partially offset by lower mortgage margins 
 --   Credit impairment charges increased GBP190m to GBP896m due to a 
       GBP200m charge in Q316 following the management review of the cards 
       portfolio impairment modelling. Delinquency trends improved with 
       the 30 and 90 day arrears rates on the cards portfolio reducing 
       to 1.9% (2015: 2.3%) and 0.9% (2015: 1.2%) respectively 
 --   Total operating expenses reduced 1% to GBP3,882m reflecting savings 
       realised from strategic cost programmes, relating to restructuring 
       of the branch network and technology improvements, partially offset 
       by structural reform programme implementation costs. The cost: 
       income ratio was stable at 53% (2015: 53%) 
 

Barclays International

 
 --   RoTE was 8.0% (2015: 9.5%) as profit before tax decreased 3% to 
       GBP3,747m including the impact of the appreciation of average USD 
       and EUR against GBP. This was driven by increased credit impairment 
       charges and operating expenses, partially offset by strong income 
       growth in Consumer, Cards and Payments and Corporate and Investment 
       Bank 
 --   Total income increased 10% to GBP14,531m, including the appreciation 
       of average USD and EUR against GBP, within which: 
      -    Consumer, Cards and Payments income increased 21% to GBP3,998m, 
            driven by continued growth across all key businesses 
      -    Corporate and Investment Bank income increased 6% to GBP10,533m 
            as Markets income increased 9% to GBP5,279m, within which Credit 
            increased 44% to GBP1,185m and Macro increased 9% to GBP2,304m, 
            partially offset by a 6% reduction in Equities to GBP1,790m. 
            Banking income increased 3% to GBP5,249m driven by strong growth 
            in Banking fees, which increased 15% to GBP2,397m, partially 
            offset by a 12% reduction in Corporate lending to GBP1,195m. 
            Transactional banking was broadly in line at GBP1,657m (2015: 
            GBP1,663m) 
 --   Credit impairment charges increased 47% to GBP1,355m, within which 
       Consumer, Cards and Payments impairment increased 51% to GBP1,095m 
       driven by growth in receivables, a change in portfolio mix and 
       a GBP120m charge in Q316 following the management review of the 
       cards portfolio impairment modelling. Delinquency trends in Barclaycard 
       US worsened with the 30 and 90 day arrears rates increasing to 
       2.6% (2015: 2.2%) and 1.3% (2015: 1.1%) respectively. Corporate 
       and Investment Bank impairment increased 31% to GBP260m primarily 
       from impairment of a number of single name exposures 
 --   Total operating expenses increased 11% to GBP9,461m including an 
       additional charge in Q416 relating to the 2016 compensation awards, 
       higher structural reform programme implementation costs, a GBP150m 
       charge in Q316 to reduce the real estate footprint and increased 
       costs in Consumer, Cards and Payments driven by continued growth. 
       These increases were partially offset by lower litigation and conduct 
       costs 
 

Head Office

 
 --   Profit before tax was GBP102m (2015: loss of GBP380m) reflecting 
       increased net income from treasury operations, structural reform 
       programme implementation costs included in operating expenses in 
       2015, now included in the businesses, and increased other net income 
       primarily due to recycling of the currency translation reserve 
       to the income statement on completion of the sale of the Southern 
       European cards business 
 

Non-Core performance

 
 --   Strong performance in the accelerated rundown of Non-Core resulted 
       in RWAs decreasing GBP22.2bn to GBP32.1bn, despite the impact of 
       the appreciation of USD and EUR against GBP, driven by a GBP10bn 
       reduction in Derivatives, a GBP3bn reduction in Securities and 
       loans, a GBP4bn reduction in Businesses RWAs and a GBP4bn reallocation 
       to Head Office of operational risk RWAs associated with exited 
       businesses and assets 
 --   Loss before tax increased to GBP2,786m (2015: GBP1,715m) driven 
       by reduced income and increased losses resulting from continued 
       progress on the rundown of Businesses, Securities and loans, and 
       Derivatives, partially offset by lower operating expenses and an 
       increase in other net income from business disposals 
 --   Total income reduced GBP1,776m to a net expense of GBP1,164m including 
       fair value losses on the Education, Social Housing, and Local Authority 
       (ESHLA) portfolio of GBP393m (2015: GBP359m). Excluding these fair 
       value losses, negative income was GBP771m 
      -    Businesses income reduced GBP654m to GBP485m due to the completion 
            of the sale of a number of income generating businesses 
      -    Securities and loans income decreased GBP288m to a net expense 
            of GBP638m primarily driven by the impact of restructuring the 
            ESHLA Lender Option Borrower Option (LOBO) loan terms in Q216 
      -    Derivatives income reduced GBP834m to a net expense of GBP1,011m 
            primarily reflecting the costs of running down the portfolio 
 --   Credit impairment charges improved 9% to GBP122m driven by lower 
       impairment charges in European businesses 
 --   Total operating expenses improved 14% to GBP1,831m reflecting cost 
       savings from ceasing certain investment banking activities in a 
       number of countries and the completion of the sale of a number 
       of businesses, partially offset by a c.GBP200m increase in restructuring 
       charges, which totalled c.GBP400m 
 --   Other net income of GBP331m (2015: net expense of GBP70m) included 
       gains on the sale of Barclays Risk Analytics and Index Solutions, 
       the Asia wealth and investment management business and the Southern 
       European cards business, partially offset by the loss on sale of 
       the French retail business of GBP455m 
 --   The intention is to close Non-Core on 30 June 2017 with approximately 
       GBP25bn of RWAs 
 

Group capital and leverage

 
 --   The fully loaded CRD IV CET1 ratio increased to 12.4% (December 
       2015: 11.4%) reflecting an increase in CET1 capital of GBP4.5bn 
       to GBP45.2bn, despite RWAs increasing by GBP7bn to GBP366bn 
      -    The increase in CET1 capital was largely driven by profits of 
            GBP2.1bn generated in the period, after absorbing the impact 
            of notable items. Other favourable movements included the currency 
            translation reserve as a result of the appreciation of all major 
            currencies against GBP 
      -    The increase in RWAs was principally due to the appreciation 
            of ZAR, USD and EUR against GBP and business growth, which together 
            more than offset RWA reductions in Non-Core 
 --   The leverage ratio increased to 4.6% (December 2015: 4.5%) driven 
       by a GBP5.8bn increase in fully loaded Tier 1 capital to GBP52.0bn 
       partially offset by an increase in leverage exposure of GBP97bn 
       to GBP1,125bn. Total IFRS assets increased 8% to GBP1,213bn from 
       December 2015 contributing to the 9% increase in leverage exposure 
      -    The IFRS asset increase was mainly driven by loans and advances 
            and other assets which increased GBP82bn to GBP707bn. The increase 
            was primarily due to the appreciation of major currencies against 
            GBP, an increase in liquidity pool assets, and lending growth 
            in Barclays UK and Barclays International. This was partially 
            offset by the rundown and exit of Non-Core assets 
      -    Net derivative leverage exposure remained broadly flat as an 
            increase in IFRS derivative assets of GBP19bn to GBP347bn was 
            offset by an increase in IFRS derivative liabilities resulting 
            in regulatory derivative netting increasing GBP20bn to GBP313bn. 
            The increase was mainly within foreign exchange derivatives driven 
            by an increase in trade volumes and appreciation of all major 
            currencies against GBP 
 --   Tangible net asset value per share increased to 290p (December 
       2015: 275p) driven by profit generated in the period and net favourable 
       reserve movements 
 

Group funding and liquidity

 
 --   The Group continued to maintain surpluses to its internal and regulatory 
       requirements. The liquidity pool increased to GBP165bn (December 
       2015: GBP145bn), primarily driven by the appreciation of USD and 
       EUR against GBP and a net increase in deposits and wholesale funding 
       to support business growth. The Liquidity Coverage Ratio (LCR) 
       was 131% (December 2015: 133%), equivalent to a surplus of GBP39bn 
       (December 2015: GBP37bn) 
 --   Wholesale funding outstanding excluding repurchase agreements was 
       GBP158bn (December 2015: GBP142bn). The increase was driven by 
       the prudent management of the liquidity position, HoldCo issuance 
       and the appreciation of USD and EUR against GBP. The Group issued 
       GBP12.1bn equivalent of capital and term senior unsecured debt 
       from the HoldCo of which GBP8.6bn equivalent and GBP0.7bn equivalent 
       in public and private senior unsecured debt respectively, and GBP2.8bn 
       of capital instruments. In the same period GBP7.4bn of Barclays 
       Bank PLC (OpCo) capital and senior unsecured debt was repurchased 
       or redeemed 
 --   On 12 December 2016, Moody's upgraded both the HoldCo's and OpCo's 
       long term senior unsecured ratings one notch to Baa2 and A1 respectively. 
       The negative outlooks remained 
 

Other matters

 
 --   The acquisition of Barclays' share of Visa Europe Limited by Visa 
       Inc. completed on 21 June 2016 resulting in the recognition of 
       a pre-tax gain on disposal of GBP615m in income in Q216 
 --   Additional UK customer redress provisions of GBP1,000m (2015: GBP2,772m) 
       relating to Payment Protection Insurance (PPI) were recognised. 
       GBP400m was recognised in Q216 reflecting an updated estimate of 
       costs, primarily relating to ongoing remediation programmes, with 
       GBP600m recognised in Q316 to reflect the current estimate of the 
       impact of the revised complaints deadline proposed in Financial 
       Conduct Authority (FCA) consultation paper 16/20 issued on 2 August 
       2016. The remaining PPI provision as at December 2016 was GBP1,979m 
       (December 2015: GBP2,106m) 
 --   In Q216, Barclays redeemed its $1.15bn 7.75% Series 4 Non-Cumulative 
       Callable Dollar Preference Shares. In Q316, Barclays redeemed its 
       $750m 6.625% Series 2 Non-Cumulative Callable Dollar Preference 
       Shares. These redemptions resulted in a 10bps detriment to the 
       CET1 ratio, but will result in an ongoing reduction in preference 
       share dividends payable of $139m per annum 
 --   On 5 May 2016, Barclays executed the first tranche of the sell 
       down of the Group's interest in BAGL with the sale of 12.2% of 
       BAGL's issued share capital. Following completion of this first 
       tranche, Barclays' holding represents 50.1% of BAGL's issued share 
       capital. Barclays continues to explore opportunities to reduce 
       its shareholding to a level that would permit regulatory deconsolidation. 
       Barclays also continues to work closely with BAGL management on 
       arrangements for operational separation of the two businesses 
 --   The terms of the transitional services arrangements and related 
       separation payments have been agreed with BAGL and submitted to 
       relevant regulators as part of a request for approval for Barclays 
       to sell down to below a 50% holding. These proposed separation 
       terms include contributions totalling GBP765m, of which GBP27.5m 
       was paid in 2016, with the remainder to be paid over the period 
       through to completion of any initial sale of Barclays' stake in 
       BAGL to below 50%. The majority of these funds would be used by 
       BAGL to separate from the Barclays group, including termination 
       of the existing Master Services Agreement, making investments in 
       branding, operations and technology, and covering separation related 
       expenses. In addition, Barclays will contribute an amount equivalent 
       to 1.5% of BAGL's market capitalisation to a new Broad-Based Black 
       Economic Empowerment scheme, equating to approximately GBP130m 
       at the 31 December 2016 share price and ZAR exchange rate, and 
       expects to incur some additional operating expenses in respect 
       of delivering the separation of the businesses under the transitional 
       services arrangements 
 --   It is estimated that the selldown of the Group's interest in BAGL 
       to a level that achieves regulatory deconsolidation will result 
       in greater than 75bps accretion to the Group's CET1 ratio, based 
       on the BAGL share price of ZAR168.69 and ZAR exchange rate of 16.78 
       at 31 December 2016, after taking account of the separation costs 
       referred to above 
 --   Certain legal proceedings and investigations relating to legacy 
       issues remain outstanding, including a civil complaint filed by 
       the DOJ against Barclays in December 2016 relating to mortgage-backed 
       securities sold between 2005 and 2007 which Barclays is defending. 
       Resolving outstanding legacy issues in an appropriate timeframe 
       will continue to be a priority. Please see note 29 to the financial 
       statements in the Annual Report for details of relevant matters 
 

Dividends

 
 --   A final dividend for 2016 of 2.0p per share will be paid on 5 April 
       2017, resulting in a total 3.0p dividend per share for the year 
 

Outlook and Guidance

 
 --   Barclays today announces the intention to close Non-Core early 
       at 30 June 2017, at which point RWAs are expected to be approximately 
       GBP25bn. The composition of the assets at that date are expected 
       to consist primarily of residual derivatives, Italian mortgages 
       and the ESHLA portfolio. Further information on the allocation 
       of the residual Non-Core between Barclays UK and Barclays International 
       will be provided on closure 
 --   Loss before tax in 2017 generated by Non-Core operations is expected 
       to be approximately GBP1bn, excluding fair value gains or losses 
       on the ESHLA portfolio. A greater proportion of this loss is expected 
       to occur in H117 reflecting continued exit costs 
 --   The end-state CET1 capital ratio target has been revised to 150-200bps 
       above the minimum regulatory level, providing 400-450bps buffer 
       to the Bank of England stress test systemic reference point 
 

Tushar Morzaria, Group Finance Director

Results by Business

 
 Barclays UK                             Year ended  Year ended 
                                           31.12.16    31.12.15       YoY 
Income statement information(1)                GBPm        GBPm  % Change 
=======================================  ==========  ==========  ======== 
Net interest income                           6,048       5,973         1 
Net fee, commission and other income          1,469       1,370         7 
=======================================  ==========  ==========  ======== 
Total income                                  7,517       7,343         2 
Credit impairment charges and other 
 provisions                                   (896)       (706)      (27) 
=======================================  ==========  ==========  ======== 
Net operating income                          6,621       6,637         - 
Operating expenses                          (3,792)     (3,464)       (9) 
UK bank levy                                   (48)        (77)        38 
Litigation and conduct                      (1,042)     (2,511)        59 
=======================================  ==========  ==========  ======== 
Total operating expenses                    (4,882)     (6,052)        19 
Other net expenses                              (1)           - 
=======================================  ==========  ==========  ======== 
Profit before tax                             1,738         585 
Attributable profit/(loss)                      828        (47) 
 
Balance sheet information 
=======================================  ==========  ==========  ======== 
Loans and advances to customers at 
 amortised cost (GBPbn)                       166.4       166.1 
Total assets (GBPbn)                          209.6       202.5 
Customer deposits (GBPbn)                     189.0       176.8 
Risk weighted assets (GBPbn)                   67.5        69.5 
 
Key facts 
=======================================  ==========  ==========  ======== 
Average LTV of mortgage portfolio(2)            48%         49% 
Average LTV of new mortgage lending(2)          63%         64% 
Number of branches                            1,305       1,362 
Barclays mobile banking customers              5.7m        4.7m 
30 day arrears rate - Barclaycard 
 Consumer UK                                   1.9%        2.3% 
 
Performance measures 
=======================================  ==========  ==========  ======== 
Return on average allocated tangible 
 equity                                        9.6%      (0.3%) 
Average allocated tangible equity 
 (GBPbn)                                        8.9         9.3 
Cost: income ratio                              65%         82% 
Loan loss rate (bps)                             52          42 
Loan: deposit ratio                             88%         94% 
Net interest margin                           3.62%       3.56% 
 
Notable items 
=======================================  ==========  ==========  ======== 
Total income 
Gain on disposal of Barclays' share 
 of Visa Europe Limited                         151           - 
Litigation and conduct 
Provisions for UK customer redress          (1,000)     (2,431) 
Operating expenses 
Gain on valuation of a component 
 of the defined retirement benefit 
 liability                                        -         296 
=======================================  ==========  ==========  ======== 
Total notable items                           (849)     (2,135) 
 

Excluding notable items, the Barclays UK return on average allocated tangible equity was 19.3% (2015: 21.1%).

 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 2   Average LTV of mortgage portfolio and new mortgage lending calculated 
      on the balance weighted basis. 
 
 
Analysis of Barclays UK                 Year ended  Year ended 
                                          31.12.16    31.12.15       YoY 
Analysis of total income                      GBPm        GBPm  % Change 
======================================  ==========  ==========  ======== 
Personal Banking                             3,891       3,714         5 
Barclaycard Consumer UK                      2,022       2,065       (2) 
Wealth, Entrepreneurs & Business 
 Banking                                     1,604       1,564         3 
======================================  ==========  ==========  ======== 
Total income                                 7,517       7,343         2 
 
Analysis of credit impairment charges 
 and other provisions 
======================================  ==========  ==========  ======== 
Personal Banking                             (183)       (194)         6 
Barclaycard Consumer UK                      (683)       (488)      (40) 
Wealth, Entrepreneurs & Business 
 Banking                                      (30)        (24)      (25) 
======================================  ==========  ==========  ======== 
Total credit impairment charges and 
 other provisions                            (896)       (706)      (27) 
 
Analysis of loans and advances to 
 customers at amortised cost (GBPbn) 
======================================  ==========  ==========  ======== 
Personal Banking                             135.0       134.0 
Barclaycard Consumer UK                       16.5        16.2 
Wealth, Entrepreneurs & Business 
 Banking                                      14.9        15.9 
======================================  ==========  ==========  ======== 
Total loans and advances to customers 
 at amortised cost                           166.4       166.1 
 
Analysis of customer deposits (GBPbn) 
======================================  ==========  ==========  ======== 
Personal Banking                             139.3       131.0 
Barclaycard Consumer UK                          -           - 
Wealth, Entrepreneurs & Business 
 Banking                                      49.7        45.8 
======================================  ==========  ==========  ======== 
Total customer deposits                      189.0       176.8 
 

2016 compared to 2015

 
 --   Profit before tax increased GBP1,153m to GBP1,738m reflecting lower 
       provisions for UK customer redress. Profit before tax excluding 
       notable items(1) decreased 5% to GBP2,587m driven by an increase 
       in credit impairment charges following the management review of 
       the cards portfolio impairment modelling, partially offset by a 
       reduction in total operating expenses 
 --   Total income, including a gain on disposal of Barclays' share of 
       Visa Europe Limited recognised in Personal Banking and Wealth, 
       Entrepreneurs & Business Banking (WEBB) increased 2% to GBP7,517m. 
       Total income excluding notable items was broadly in line at GBP7,366m 
       (2015: GBP7,343m), within which: 
      -   Personal Banking income increased 1% to GBP3,762m driven by improved 
           deposit margins and balance growth, partially offset by lower 
           mortgage margins 
      -   Barclaycard Consumer UK income decreased 2% to GBP2,022m primarily 
           as a result of the European Interchange Fee Regulation, which 
           came into full effect from December 2015, offset by balance growth 
           and gains from debt sales 
      -   WEBB income increased 1% to GBP1,582m reflecting improved margins 
           and deposit growth, partially offset by reduced transactional 
           fee income 
      -   Net interest income increased 1% to GBP6,048m due to balance 
           growth and deposit pricing initiatives, partially offset by lower 
           mortgage margins 
      -   Net interest margin increased 6bps to 3.62% reflecting higher 
           margins on deposits, partially offset by lower mortgage margins 
      -   Net fee, commission and other income decreased 4% to GBP1,318m 
           due to the impact of the European Interchange Fee Regulation 
           in Barclaycard Consumer UK, which came into full effect from 
           December 2015, and reduced fee and commission income in WEBB 
 --   Credit impairment charges increased 27% to GBP896m due to a GBP200m 
       charge in Q316 following the management review of the cards portfolio 
       impairment modelling. The 30 day and 90 day arrears rates on the 
       cards portfolio improved year-on-year to 1.9% (2015: 2.3%) and 
       0.9% (2015: 1.2%) respectively 
 --   Total operating expenses, including provisions for UK customer 
       redress of GBP1,000m (2015: GBP2,431m), reduced 19% to GBP4,882m. 
       Total operating expenses excluding notable items reduced 1% to 
       GBP3,882m reflecting savings realised from strategic cost programmes, 
       relating to restructuring of the branch network and technology 
       improvements, offset by structural reform programme implementation 
       costs 
 --   The cost: income ratio excluding notable items was 53% (2015: 53%) 
       and RoTE excluding notable items was 19.3% (2015: 21.1%) 
 --   Loans and advances to customers were stable at GBP166.4bn (December 
       2015: GBP166.1bn) 
 --   Total assets increased GBP7.1bn to GBP209.6bn primarily reflecting 
       an increase in the allocated liquidity pool 
 --   Customer deposits increased 7% to GBP189.0bn primarily driven by 
       higher balances in Personal Banking and WEBB 
 --   RWAs reduced GBP2.0bn to GBP67.5bn primarily driven by changes 
       in the mortgages credit risk model 
 
 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 
 
Barclays International                        Year ended  Year ended 
                                                31.12.16    31.12.15       YoY 
Income statement information(1)                     GBPm        GBPm  % Change 
============================================  ==========  ==========  ======== 
Net interest income                                4,512       4,324         4 
Net trading income                                 4,580       3,782        21 
Net fee, commission and other income               5,903       5,641         5 
============================================  ==========  ==========  ======== 
Total income                                      14,995      13,747         9 
Credit impairment charges and other 
 provisions                                      (1,355)       (922)      (47) 
============================================  ==========  ==========  ======== 
Net operating income                              13,640      12,825         6 
Operating expenses                               (9,129)     (8,029)      (14) 
UK bank levy                                       (284)       (253)      (12) 
Litigation and conduct                              (48)     (1,310)        96 
============================================  ==========  ==========  ======== 
Total operating expenses                         (9,461)     (9,592)         1 
Other net income                                      32          45      (29) 
============================================  ==========  ==========  ======== 
Profit before tax                                  4,211       3,278        28 
Attributable profit                                2,412       1,758        37 
 
Balance sheet information 
============================================  ==========  ==========  ======== 
Loans and advances to banks and customers 
 at amortised cost (GBPbn)(2)                      211.3       184.1 
Trading portfolio assets (GBPbn)                    73.2        61.9 
Derivative financial instrument assets 
 (GBPbn)                                           156.2       111.5 
Derivative financial instrument liabilities 
 (GBPbn)                                           160.6       119.0 
Reverse repurchase agreements and 
 other similar secured lending (GBPbn)              13.4        24.7 
Financial assets designated at fair 
 value (GBPbn)                                      62.3        46.8 
Total assets (GBPbn)                               648.5       532.2 
Customer deposits (GBPbn)(3)                       216.2       185.6 
Risk weighted assets (GBPbn)                       212.7       194.8 
 
Performance measures 
============================================  ==========  ==========  ======== 
Return on average allocated tangible 
 equity                                             9.8%        7.2% 
Average allocated tangible equity 
 (GBPbn)                                            25.5        24.9 
Cost: income ratio                                   63%         70% 
Loan loss rate (bps)                                  63          49 
Loan: deposit ratio                                  86%         88% 
Net interest margin(4)                             3.98%       3.80% 
 
Notable items 
============================================  ==========  ==========  ======== 
Total income 
Gain on disposal of Barclays' share 
 of Visa Europe Limited                              464           - 
Gains on US Lehman acquisition assets                  -         496 
Litigation and conduct 
Provisions for UK customer redress                     -       (218) 
Provisions for ongoing investigations 
 and litigation including Foreign 
 Exchange                                              -       (984) 
Operating expenses 
Gain on valuation of a component 
 of the defined retirement benefit 
 liability                                             -         133 
--------------------------------------------  ----------  ----------  -------- 
Total notable items                                  464       (573) 
 

Excluding notable items, the Barclays International return on average allocated tangible equity was 8.0% (2015: 9.5%).

 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 2   As at 31 December 2016 loans and advances included GBP185.9bn (December 
      2015: GBP162.6bn) of loans and advances to customers (including 
      settlement balances of GBP19.5bn (December 2015: GBP18.5bn) and 
      cash collateral of GBP30.1bn (December 2015: GBP24.8bn)), and GBP25.4bn 
      (December 2015: GBP21.5bn) of loans and advances to banks (including 
      settlement balances of GBP1.7bn (December 2015: GBP1.6bn) and cash 
      collateral of GBP6.3bn (December 2015: GBP5.7bn)). Loans and advances 
      to banks and customers in respect of Consumer, Cards and Payments 
      were GBP39.7bn (December 2015: GBP32.1bn). 
 3   As at 31 December 2016 customer deposits included settlement balances 
      of GBP16.6bn (December 2015: GBP16.3bn) and cash collateral of 
      GBP20.8bn (December 2015: GBP15.9bn). 
 4   Barclays International margins have been restated to include interest 
      earning lending within the investment banking business. 
 
 
Analysis of Barclays International 
                                       Year ended  Year ended 
Corporate and Investment Bank            31.12.16    31.12.15       YoY 
Income statement information                 GBPm        GBPm  % Change 
=====================================  ==========  ==========  ======== 
Analysis of total income 
Credit                                      1,185         824        44 
Equities                                    1,790       1,912       (6) 
Macro                                       2,304       2,108         9 
=====================================  ==========  ==========  ======== 
Markets                                     5,279       4,844         9 
Banking fees                                2,397       2,087        15 
Corporate lending                           1,195       1,361      (12) 
Transactional banking                       1,657       1,663         - 
=====================================  ==========  ==========  ======== 
Banking                                     5,249       5,111         3 
Other                                           5         495      (99) 
=====================================  ==========  ==========  ======== 
Total income                               10,533      10,450         1 
Credit impairment charges and other 
 provisions                                 (260)       (199)      (31) 
Total operating expenses                  (7,624)     (7,929)         4 
Profit before tax                           2,650       2,322        14 
 
Balance sheet information 
=====================================  ==========  ==========  ======== 
Risk weighted assets (GBPbn)                178.6       167.3 
 
Performance measures 
=====================================  ==========  ==========  ======== 
Return on average allocated tangible 
 equity                                      6.1%        5.4% 
Average allocated tangible equity 
 (GBPbn)                                     21.9        21.9 
 

Excluding notable items, the CIB return on average allocated tangible equity was 6.1% (2015: 8.2%).

 
Consumer, Cards and Payments 
Income statement information 
==========================================  ========  ========  ==== 
Total income                                   4,462     3,297    35 
Credit impairment charges and other 
 provisions                                  (1,095)     (723)  (51) 
Total operating expenses                     (1,837)   (1,663)  (10) 
Profit before tax                              1,561       956    63 
 
Balance sheet information 
==========================================  ========  ========  ==== 
Loans and advances to banks and customers 
 at amortised cost (GBPbn)                      39.7      32.1 
Customer deposits (GBPbn)                       50.0      41.8 
Risk weighted assets (GBPbn)                    34.1      27.5 
 
Key facts 
==========================================  ========  ========  ==== 
30 days arrears rate - Barclaycard 
 US                                             2.6%      2.2% 
Total number of Barclaycard business 
 clients                                     355,000   341,000 
Value of payments processed                 GBP296bn  GBP271bn 
 
Performance measures 
==========================================  ========  ========  ==== 
Return on average allocated tangible 
 equity                                        31.4%     20.2% 
Average allocated tangible equity 
 (GBPbn)                                         3.6       3.0 
 

Excluding notable items, the Consumer, Cards and Payments return on average allocated tangible equity was 19.1% (2015: 18.9%).

2016 compared to 2015

 
 --   Profit before tax increased 28% to GBP4,211m, including the gain 
       on disposal of Barclays' share of Visa Europe Limited. Profit before 
       tax excluding notable items(1) decreased 3% to GBP3,747m driven 
       by an 11% increase in total operating expenses, and a 47% increase 
       in impairment, partially offset by a 10% increase in total income 
 --   Total income excluding notable items increased 10% to GBP14,531m, 
       including the appreciation of average USD and EUR against GBP, 
       with Consumer, Cards and Payments income increasing 21% to GBP3,998m 
       and Corporate and Investment Bank (CIB) income increasing 6% to 
       GBP10,533m 
  -   Markets income increased 9% to GBP5,279m, within which: 
      -    Credit income increased 44% to GBP1,185m driven by strong performance 
            in fixed income flow credit which benefitted from increased market 
            volatility and client demand 
      -    Equities income decreased 6% to GBP1,790m with lower client activity 
            in Asia and the simplification of the EMEA business, partially 
            offset by improved performance in cash, derivatives and financing 
            in H216 
      -    Macro income increased 9% to GBP2,304m driven by increased activity 
            post the EU referendum decision and US elections 
  -   Banking income increased 3% to GBP5,249m within which: 
      -    Banking fees income increased 15% to GBP2,397m driven by higher 
            debt underwriting and advisory fees, partially offset by lower 
            equity underwriting fees 
      -    Corporate lending reduced 12% to GBP1,195m due to losses on fair 
            value hedges and the non-recurrence of one-off work-out gains 
            recognised in Q215 
      -    Transactional banking was broadly flat at GBP1,657m (2015: GBP1,663m) 
            as income from higher deposit balances was offset by margin compression 
  -   Consumer, Cards and Payments income increased 21% to GBP3,998m 
       driven by growth across all key businesses and the appreciation 
       of average USD and EUR against GBP 
 --   Credit impairment charges increased 47% to GBP1,355m including 
       the appreciation of average USD and EUR against GBP, within which: 
  -   CIB credit impairment charges increased 31% to GBP260m driven by 
       the impairment of a number of single name exposures 
  -   Consumer, Cards and Payments credit impairment charges increased 
       51% to GBP1,095m primarily driven by balance growth, a change in 
       portfolio mix and a GBP120m charge in Q316 following a management 
       review of the cards portfolio impairment modelling 
 --   Total operating expenses excluding notable items increased 11%, 
       within which: 
  -   CIB increased 12% to GBP7,624m. In addition to the appreciation 
       of average USD against GBP this reflected an additional charge 
       in Q416 relating to the 2016 compensation awards, higher restructuring 
       costs, GBP150m of which related to reducing the real estate footprint 
       in Q316, and higher structural reform programme implementation 
       costs including those relating to the incorporation of the US Intermediate 
       Holding Company (IHC) on 1 July 2016. These increases were partially 
       offset by lower litigation and conduct costs 
  -   Consumer, Cards and Payments increased 7% to GBP1,837m due to continued 
       business growth and the appreciation of average USD and EUR against 
       GBP, partially offset by lower restructuring costs 
 --   The cost: income ratio excluding notable items was 65% (2015: 64%) 
       and RoTE excluding notable items was 8.0% (2015: 9.5%) 
 --   Loans and advances to banks and customers at amortised cost increased 
       GBP27.2bn to GBP211.3bn with CIB increasing GBP19.7bn to GBP171.7bn 
       due to increased lending and cash collateral and the appreciation 
       of USD and EUR against GBP. Consumer, Cards and Payments increased 
       GBP7.6bn to GBP39.7bn driven by appreciation of USD and EUR against 
       GBP and growth in Barclaycard US, including the acquisition of 
       the JetBlue credit card portfolio 
 --   Trading portfolio assets increased GBP11.3bn to GBP73.2bn due to 
       an increase in client activity and appreciation of major currencies 
       against GBP 
 --   Derivative financial instrument assets and liabilities increased 
       GBP44.7bn to GBP156.2bn and GBP41.6bn to GBP160.6bn respectively, 
       due to the appreciation of USD and EUR against GBP and decreases 
       in forward interest rates 
 --   Financial assets designated at fair value increased GBP15.5bn to 
       GBP62.3bn and reverse repurchase agreements and other similar lending 
       decreased GBP11.3bn to GBP13.4bn. Since 2015, new reverse repurchase 
       agreements in certain businesses have been designated at fair value 
       to better align to the way the business manages the portfolio's 
       risk and performance. On a net basis reverse repos have increased 
       by GBP4.2bn as a result of increased matched book trading 
 --   Customer deposits increased GBP30.6bn to GBP216.2bn, with CIB increasing 
       GBP22.6bn to GBP166.3bn primarily driven by increases in deposits 
       cash collateral and the appreciation of USD and EUR against GBP. 
       Consumer, Cards and Payments increased GBP8.2bn to GBP50.0bn driven 
       by balance growth in Barclaycard US and Private Banking, and the 
       appreciation of USD and EUR against GBP 
 --   RWAs increased GBP17.9bn to GBP212.7bn, due to the appreciation 
       of USD against GBP, and business growth, including the acquisition 
       of the JetBlue credit card portfolio in Consumer, Cards and Payments 
 
 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 
 
Head Office                               Year ended  Year ended 
                                            31.12.16    31.12.15       YoY 
Income statement information(1)                 GBPm        GBPm  % Change 
Net interest income                            (183)       (305)        40 
Net fee, commission and other income             286         643      (56) 
========================================  ==========  ==========  ======== 
Net operating income                             103         338      (70) 
Operating expenses                             (135)       (272)        50 
UK bank levy                                     (2)         (8)        75 
Litigation and conduct                          (27)        (66)        59 
========================================  ==========  ==========  ======== 
Total operating expenses                       (164)       (346)        53 
Other net income/(expenses)                      128       (106) 
========================================  ==========  ==========  ======== 
Profit/(loss) before tax                          67       (114) 
Attributable profit                              110          11 
 
Balance sheet information 
========================================  ==========  ==========  ======== 
Total assets (GBPbn)(2)                         75.2        59.4 
Risk weighted assets (GBPbn)(2)                 53.3        39.7 
 
Performance measures 
========================================  ==========  ==========  ======== 
Average allocated tangible equity 
 (GBPbn)                                         6.5         2.6 
 
Notable items 
----------------------------------------  ----------  ----------  -------- 
Total income 
Own credit                                      (35)         430 
Litigation and conduct 
Provisions for ongoing investigations 
 and litigation including Foreign 
 Exchange                                          -        (52) 
Other net expenses 
Losses on sale relating to the Spanish, 
 Portuguese and Italian businesses                 -       (112) 
----------------------------------------  ----------  ----------  -------- 
Total notable items                             (35)         266 
 

2016 compared to 2015

 
 --   Profit before tax was GBP67m (2015: loss of GBP114m). Profit before 
       tax excluding notable items(1) improved from a loss of GBP380m 
       to a profit of GBP102m 
 --   Net operating income excluding notable items increased to GBP138m 
       (2015: loss of GBP92m) primarily due to changes in net income from 
       treasury operations 
 --   Total operating expenses excluding notable items reduced to GBP164m 
       (2015: GBP294m) primarily due to a reduction in structural reform 
       implementation costs now allocated to the businesses 
 --   Other net income excluding notable items increased to GBP128m (2015: 
       GBP6m) primarily due to recycling of the currency translation reserve 
       on the disposal of the Southern European cards business 
 --   Total assets increased GBP15.8bn to GBP75.2bn primarily driven 
       by the appreciation of ZAR against GBP 
 --   RWAs increased GBP13.6bn to GBP53.3bn primarily driven by the appreciation 
       of ZAR against GBP and the reallocation of operational risk RWAs 
       from Non-Core associated with exited businesses and assets 
 
 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 2   Includes Africa Banking assets held for sale of GBP65.1bn (December 
      2015: GBP47.9bn) and risk weighted assets of GBP 42.3bn (December 
      2015: GBP31.7bn). 
 
 
Barclays Non-Core                             Year ended  Year ended 
                                                31.12.16    31.12.15       YoY 
Income statement information(1)                     GBPm        GBPm  % Change 
============================================  ==========  ==========  ======== 
Net interest income                                  160         615      (74) 
Net trading income                               (1,703)       (706) 
Net fee, commission and other income                 379         703      (46) 
============================================  ==========  ==========  ======== 
Total income                                     (1,164)         612 
Credit impairment charges and other 
 provisions                                        (122)       (134)         9 
============================================  ==========  ==========  ======== 
Net operating (expenses)/income                  (1,286)         478 
Operating expenses                               (1,509)     (1,958)        23 
UK bank levy                                        (76)        (88)        14 
Litigation and conduct                             (246)       (500)        51 
============================================  ==========  ==========  ======== 
Total operating expenses                         (1,831)     (2,546)        28 
Other net income/(expenses)                          331       (535) 
============================================  ==========  ==========  ======== 
Loss before tax                                  (2,786)     (2,603)       (7) 
Attributable loss                                (1,916)     (2,418)        21 
 
Balance sheet information 
============================================  ==========  ==========  ======== 
Loans and advances to banks and customers 
 at amortised cost (GBPbn)(2)                       51.1        51.8 
Derivative financial instrument assets 
 (GBPbn)                                           188.7       213.7 
Derivative financial instrument liabilities 
 (GBPbn)                                           178.6       202.1 
Reverse repurchase agreements and 
 other similar secured lending (GBPbn)               0.1         3.1 
Financial assets designated at fair 
 value (GBPbn)                                      14.5        21.4 
Total assets (GBPbn)                               279.7       325.8 
Customer deposits (GBPbn)(3)                        12.5        20.9 
Risk weighted assets (GBPbn)                        32.1        54.3 
 
Performance measures 
============================================  ==========  ==========  ======== 
Average allocated tangible equity 
 (GBPbn)                                             7.8        10.9 
Period end allocated tangible equity 
 (GBPbn)                                             5.4         8.5 
Loan loss rate (bps)                                  22          23 
 
Notable items 
============================================  ==========  ==========  ======== 
Litigation and conduct 
Provisions for UK customer redress                     -       (123) 
Provisions for ongoing investigations 
 and litigation including Foreign 
 Exchange                                              -       (201) 
Operating expenses 
Impairment of goodwill and other 
 assets relating to businesses being 
 disposed                                              -        (96) 
Other net expenses 
Losses on sale relating to the Spanish, 
 Portuguese and Italian businesses                     -       (468) 
============================================  ==========  ==========  ======== 
Total notable items                                    -       (888) 
 
Analysis of total income 
============================================  ==========  ==========  ======== 
Businesses                                           485       1,139      (57) 
Securities and loans                               (638)       (350)      (82) 
Derivatives                                      (1,011)       (177) 
============================================  ==========  ==========  ======== 
Total income                                     (1,164)         612 
 
 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 2   As at 31 December 2016 loans and advances included GBP38.5bn (December 
      2015: GBP40.4bn) of loans and advances to customers (including 
      settlement balances of GBP0.1bn (December 2015: GBP0.3bn) and cash 
      collateral of GBP17.3bn (December 2015: GBP19.0bn)), and GBP12.6bn 
      (December 2015: GBP11.4bn) of loans and advances to banks (including 
      settlement balances of GBP0.1bn (December 2015: GBPnil) and cash 
      collateral of GBP12.1bn (December 2015: GBP10.1bn)). 
 3   As at 31 December 2016 customer deposits included settlement balances 
      of GBP0.1bn (December 2015: GBP0.2bn) and cash collateral of GBP11.9bn 
      (December 2015: GBP12.3bn). 
 

2016 compared to 2015

 
 --   Loss before tax increased to GBP2,786m (2015: GBP2,603m). Loss 
       before tax excluding notable items(1) increased to GBP2,786m (2015: 
       GBP1,715m) driven by reduced income and increased losses resulting 
       from continued progress on the rundown of Derivatives, Businesses 
       and Securities and loans, partially offset by lower operating expenses 
       and higher other net income primarily from business and country 
       exits 
 --   Total income reduced GBP1,776m to a net expense of GBP1,164m 
  -   Businesses income reduced GBP654m to GBP485m due to the impact 
       of lower income following the completion of the sale of a number 
       of income generating businesses and fees paid to Head Office relating 
       to the termination of internal hedging and funding positions no 
       longer required 
  -   Securities and loans income decreased GBP288m to a net expense 
       of GBP638m primarily driven by the impact of restructuring the 
       ESHLA portfolio, the non-recurrence of a GBP91m provision release 
       relating to a litigation matter in Q115 and portfolio rundown. 
       Fair value losses on the ESHLA portfolio were GBP393m (2015: GBP359m) 
  -   Derivatives income reduced GBP834m to a net expense of GBP1,011m 
       principally reflecting the costs of running down the portfolio 
 --   Credit impairment charges improved 9% to GBP122m due to lower impairment 
       charges in European businesses 
 --   Total operating expenses excluding notable items improved 14% to 
       GBP1,831m reflecting cost savings from ceasing certain investment 
       banking activities in a number of countries and the completion 
       of the sale of a number of businesses, partially offset by a c.GBP200m 
       increase in restructuring charges, which totalled c.GBP400m 
 --   Other net income excluding notable items of GBP331m (2015: net 
       expense of GBP70m) included gains on the sale of Barclays Risk 
       Analytics and Index Solutions, the Asia wealth and investment management 
       business and the Southern European cards business, partially offset 
       by the loss on sale of the French retail business of GBP455m 
 --   Loans and advances to banks and customers at amortised cost decreased 
       GBP0.7bn to GBP51.1bn due to the sale of the Asia wealth and investment 
       management business, and the rundown and exit of historical investment 
       bank assets, partially offset by the recognition of GBP8bn of ESHLA 
       loans at amortised cost, following the restructure of LOBO loan 
       terms 
 --   Total assets decreased GBP46.1bn to GBP279.7bn due to lower derivative 
       financial instrument assets which decreased GBP25.0bn to GBP188.7bn 
       whilst derivative financial instrument liabilities decreased GBP23.5bn 
       to GBP178.6bn mainly on continued rundown of the derivative back 
       book 
 --   Leverage exposure decreased GBP47bn 
       to GBP101bn due to reduced potential future exposure on derivatives 
       and trading portfolio assets 
 --   RWAs reduced GBP22.2bn to GBP32.1bn despite the appreciation of 
       USD and EUR against GBP, including a GBP10bn reduction in Derivatives, 
       a GBP3bn reduction in Securities and loans, a GBP4bn reduction 
       in Businesses RWAs, and a GBP4bn reallocation of operational risk 
       RWAs to Head Office associated with business disposals and exits 
 
 
 1   Refer to the appendix on pages 65-75 for further information, reconciliations 
      and calculations of non-IFRS performance measures included throughout 
      this document. 
 

Discontinued Operation

On 1 March 2016, Barclays announced its intention to sell down the Group's interest in BAGL. This sell down is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals as required. On 5 May 2016 Barclays executed the first tranche of the sell down of the Group's interest in BAGL with the sale of 12.2% of BAGL's issued share capital. Following completion of the sale, Barclays' holding represents 50.1% of BAGL's issued share capital.

The terms of the transitional services arrangements and related separation payments have been agreed with BAGL and submitted to relevant regulators as part of a request for approval for Barclays to sell down to below a 50% holding. These proposed separation terms include contributions totalling GBP765m, of which GBP27.5m was paid in 2016, with the remainder to be paid over the period through to completion of any initial sale of Barclays' stake in BAGL to below 50%. The majority of these funds would be used by BAGL to separate from the Barclays group, including termination of the existing Master Services Agreement, making investments in branding, operations and technology, and covering separation related expenses. In addition, Barclays will contribute an amount equivalent to 1.5% of BAGL's market capitalisation to a new Broad-Based Black Economic Empowerment scheme, equating to approximately GBP130m at the 31 December 2016 share price and ZAR exchange rate, and expects to incur some additional operating expenses in respect of delivering the separation of the businesses under the transitional services arrangements.

These proposed contributions have been taken into account in assessing whether any impairment of the BAGL disposal group was required in the Group's balance sheet. No impairment of the BAGL disposal group was required at 31 December 2016, as the market value of BAGL less estimated costs to sell at the prevailing share price and ZAR exchange rate was GBP8.4bn, which was greater than the carrying asset value of BAGL at that date of GBP7.3bn, plus the proposed costs of separation referred to above.

The Africa Banking business meets the requirements for presentation as a discontinued operation. As such, these results have been presented as two lines on the face of the Group income statement, representing the profit after tax and non-controlling interest in respect of the discontinued operation. Were the fair value of BAGL, based on its quoted share price, less estimated costs to sell, to fall below the carrying amount of the net assets of BAGL including goodwill on acquisition, a resulting impairment to Barclays' stake in BAGL would also be recognised through these lines.

 
Africa Banking                         Year ended  Year ended 
                                         31.12.16    31.12.15       YoY 
Income statement information                 GBPm        GBPm  % Change 
=====================================  ==========  ==========  ======== 
Net interest income                         2,169       1,950        11 
Net fee, commission and other income        1,577       1,464         8 
=====================================  ==========  ==========  ======== 
Total income                                3,746       3,414        10 
Credit impairment charges and other 
 provisions                                 (445)       (353)      (26) 
=====================================  ==========  ==========  ======== 
Net operating income                        3,301       3,061         8 
Operating expenses                        (2,345)     (2,091)      (12) 
UK bank levy                                 (65)        (50)      (30) 
=====================================  ==========  ==========  ======== 
Total operating expenses                  (2,410)     (2,141)      (13) 
Other net income                                6           7      (14) 
=====================================  ==========  ==========  ======== 
Profit before tax                             897         927       (3) 
Profit after tax                              591         626       (6) 
Attributable profit                           189         302      (37) 
 
Balance sheet information 
=====================================  ==========  ==========  ======== 
Total assets (GBPbn)(1)                      65.1        47.9 
Risk weighted assets (GBPbn)(1)              42.3        31.7 
 
Key Facts 
=====================================  ==========  ==========  ======== 
Period end - ZAR/GBP                        16.78       23.14 
Average - ZAR/GBP(2)                        20.04       19.57 
Barclays Africa Group Limited share 
 price (ZAR)                               168.69      143.49 
Barclays Africa Group Limited number 
 of shares (m)                                848         848 
 
 
 1   Africa Banking assets held for sale and RWAs are reported in Head 
      Office within Core. 
 2   The average rate is derived from daily spot rates during the year. 
 

Quarterly Results Summary

 
Barclays Group 
                                           Q416     Q316     Q216     Q116     Q415     Q315     Q215     Q115 
Income statement information               GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                       2,523    2,796    2,530    2,688    2,726    2,692    2,664    2,526 
Net fee, commission and 
 other income                             2,469    2,650    3,442    2,353    1,722    2,789    3,797    3,124 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                              4,992    5,446    5,972    5,041    4,448    5,481    6,461    5,650 
Credit impairment charges 
 and other provisions                     (653)    (789)    (488)    (443)    (554)    (429)    (393)    (386) 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                      4,339    4,657    5,484    4,598    3,894    5,052    6,068    5,264 
Operating expenses                      (3,812)  (3,581)  (3,425)  (3,747)  (3,547)  (3,552)  (3,557)  (3,067) 
UK bank levy                              (410)        -        -        -    (426)        -        -        - 
Litigation and conduct                     (97)    (741)    (447)     (78)  (1,722)    (699)    (927)  (1,039) 
Total operating expenses                (4,319)  (4,322)  (3,872)  (3,825)  (5,695)  (4,251)  (4,484)  (4,106) 
Other net income/(expenses)                 310      502    (342)       20    (274)    (182)     (39)    (101) 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit/(loss) before tax                    330      837    1,270      793  (2,075)      619    1,545    1,057 
Tax credit/(charge)                          50    (328)    (467)    (248)    (164)    (133)    (324)    (528) 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit/(loss) after tax 
 in respect of continuing 
 operations                                 380      509      803      545  (2,239)      486    1,221      529 
Profit after tax in respect 
 of discontinued operation                   71      209      145      166      101      167      162      196 
 
Attributable to: 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Ordinary equity holders 
 of the parent                               99      414      677      433  (2,422)      417    1,146      465 
Other equity holders                        139      110      104      104      107       79       79       80 
Non-controlling interests                   213      194      167      174      177      157      158      180 
 
Balance sheet information                 GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total assets                            1,213.1  1,324.0  1,351.3  1,248.9  1,120.0  1,236.5  1,196.7  1,416.4 
Risk weighted assets                      365.6    373.4    366.3    363.0    358.4    381.9    376.7    395.9 
Leverage exposure                       1,125.5  1,185.1  1,155.4  1,082.0  1,027.8  1,140.7  1,139.3  1,254.7 
 
Performance measures 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average tangible 
 shareholders' equity                      1.1%     3.6%     5.8%     3.8%  (20.1%)     3.6%     9.8%     4.0% 
Average tangible shareholders' 
 equity (GBPbn)                            48.9     49.4     48.3     48.3     47.8     47.6     47.2     48.1 
Cost: income ratio                          87%      79%      65%      76%     128%      78%      69%      73% 
Loan loss rate (bps)                         58       66       41       40       53       37       35       32 
Basic earnings/(loss) per 
 share                                     0.8p     2.6p     4.2p     2.7p  (14.4p)     2.6p     7.0p     2.9p 
 
Notable items                              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income 
Own credit                                   46    (264)      292    (109)    (175)      195      282      128 
Gain on disposal of Barclays' 
 share of Visa Europe Limited                 -        -      615        -        -        -        -        - 
Gains on US Lehman acquisition 
 assets                                       -        -        -        -        -        -      496        - 
Litigation and conduct 
Provisions for UK customer 
 redress                                      -    (600)    (400)        -  (1,450)    (290)    (850)    (182) 
Provisions for ongoing investigations 
 and litigation including 
 Foreign Exchange                             -        -        -        -    (167)    (270)        -    (800) 
Operating expenses 
Gain on valuation of a component 
 of the defined retirement 
 benefit liability                            -        -        -        -        -        -        -      429 
Impairment of goodwill and 
 other assets relating to 
 businesses being disposed                    -        -        -        -     (96)        -        -        - 
Other net expenses 
Losses on sale relating 
 to the Spanish, Portuguese 
 and Italian businesses                       -        -        -        -    (261)    (201)        -    (118) 
--------------------------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
Total notable items                          46    (864)      507    (109)  (2,149)    (566)     (72)    (543) 
 

Excluding notable items, the Q416 Group return on average tangible shareholders' equity was 0.7% (Q415: (1.9%)) and basic earnings/(loss) per share was 0.5p (Q415: (1.3p)).

 
 Barclays Core 
                                    Q416     Q316     Q216     Q116     Q415     Q315     Q215     Q115 
Income statement information        GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                2,577    2,718    2,491    2,591    2,555    2,557    2,510    2,371 
Net fee, commission and 
 other income                      2,834    2,887    3,825    2,692    1,961    2,708    3,709    3,057 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                       5,411    5,605    6,316    5,283    4,516    5,265    6,219    5,428 
Credit impairment charges 
 and other provisions              (606)    (769)    (462)    (414)    (522)    (388)    (373)    (345) 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income               4,805    4,836    5,854    4,869    3,994    4,877    5,846    5,083 
Operating expenses               (3,471)  (3,270)  (3,057)  (3,258)  (2,992)  (3,094)  (3,061)  (2,618) 
UK bank levy                       (334)        -        -        -    (338)        -        -        - 
Litigation and conduct              (46)    (639)    (420)     (12)  (1,634)    (419)    (819)  (1,015) 
Total operating expenses         (3,851)  (3,909)  (3,477)  (3,270)  (4,964)  (3,513)  (3,880)  (3,633) 
Other net income/(expenses)          164        4     (18)        9      (5)       13       14     (83) 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit/(loss) before tax           1,118      931    2,359    1,608    (975)    1,377    1,980    1,367 
Tax charge                         (272)    (522)    (696)    (485)     (92)    (299)    (474)    (614) 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit/(loss) after tax              846      409    1,663    1,123  (1,067)    1,078    1,506      753 
Non-controlling interests           (76)     (57)     (80)     (84)     (81)     (54)     (64)     (68) 
Other equity holders               (121)     (95)     (89)     (89)     (92)     (63)     (61)     (65) 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Attributable profit/(loss)           649      257    1,494      950  (1,240)      961    1,381      620 
 
Balance sheet information          GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total assets                       933.4    964.3    972.2    883.6    794.2    862.0    830.5    919.4 
Risk weighted assets               333.5    329.5    319.6    312.2    304.1    316.3    308.1    318.0 
 
Performance measures 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average allocated 
 tangible equity                    6.4%     2.7%    15.0%     9.9%  (12.8%)    10.4%    15.5%     7.1% 
Average tangible equity 
 (GBPbn)                            42.4     41.8     40.4     39.3     38.1     37.5     35.9     35.6 
Cost: income ratio                   71%      70%      55%      62%     110%      67%      62%      67% 
Loan loss rate (bps)                  61       74       45       42       57       39       38       35 
Basic earnings/(loss) per 
 share                              4.0p     1.7p     9.0p     5.8p   (7.3p)     5.8p     8.4p     3.8p 
 
Notable items                       GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income 
Own credit                            46    (264)      292    (109)    (175)      195      282      128 
Gain on disposal of Barclays' 
 share of Visa Europe Limited          -        -      615        -        -        -        -        - 
Gains on US Lehman acquisition 
 assets                                -        -        -        -        -        -      496        - 
Litigation and conduct 
Provisions for UK customer 
 redress                               -    (600)    (400)        -  (1,392)    (290)    (800)    (167) 
Provisions for ongoing 
 investigations and litigation 
 including Foreign Exchange            -        -        -        -    (167)     (69)        -    (800) 
Operating expenses 
Gain on valuation of a 
 component of the defined 
 retirement benefit liability          -        -        -        -        -        -        -      429 
Other net expenses 
Losses on sale relating 
 to the Spanish, Portuguese 
 and Italian businesses                -        -        -        -     (15)        -        -     (97) 
-------------------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
Total notable items                   46    (864)      507    (109)  (1,749)    (164)     (22)    (507) 
 

Excluding notable items, the Q416 Core return on average allocated tangible equity was 5.8% (Q415: 6.3%) and the Core basic earnings per share was 3.7p (Q415: 3.6p).

 
Barclays Non-Core 
                                    Q416   Q316     Q216    Q116     Q415    Q315    Q215    Q115 
Income statement information        GBPm   GBPm     GBPm    GBPm     GBPm    GBPm    GBPm    GBPm 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Net interest income                 (54)     78       40      96      171     135     154     155 
Net trading income                 (462)  (288)    (463)   (490)    (398)   (124)    (57)   (127) 
Net fee, commission and 
 other income                         97     51       79     152      159     204     146     194 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Total income                       (419)  (159)    (344)   (242)     (68)     215     243     222 
Credit impairment charges 
 and other provisions               (47)   (20)     (26)    (29)     (32)    (41)    (20)    (41) 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Net operating (expenses)/income    (466)  (179)    (370)   (271)    (100)     174     223     181 
Operating expenses                 (341)  (311)    (368)   (489)    (555)   (458)   (496)   (449) 
UK bank levy                        (76)      -        -       -     (88)       -       -       - 
Litigation and conduct              (51)  (102)     (27)    (66)     (89)   (279)   (108)    (24) 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Total operating expenses           (468)  (413)    (395)   (555)    (732)   (737)   (604)   (473) 
Other net income/(expenses)          146    498    (324)      11    (268)   (195)    (54)    (18) 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Loss before tax                    (788)   (94)  (1,089)   (815)  (1,100)   (758)   (435)   (310) 
Tax credit/(charge)                  322    194      229     237     (72)     166     150      86 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
(Loss)/profit after tax            (466)    100    (860)   (578)  (1,172)   (592)   (285)   (224) 
Non-controlling interests           (14)   (13)     (12)    (10)     (19)    (21)    (21)    (20) 
Other equity holders                (18)   (15)     (15)    (15)     (17)    (15)    (18)    (14) 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Attributable (loss)/profit         (498)     72    (887)   (603)  (1,208)   (628)   (324)   (258) 
 
Balance sheet information          GBPbn  GBPbn    GBPbn   GBPbn    GBPbn   GBPbn   GBPbn   GBPbn 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Loans and advances to banks 
 and customers at amortised 
 cost                               51.1   58.7     68.5    55.4     51.8    57.1    60.4    73.1 
Derivative financial instrument 
 assets                            188.7  253.2    262.8   249.7    213.7   243.3   223.9   305.6 
Derivative financial instrument 
 liabilities                       178.6  243.0    253.4   239.1    202.1   235.0   216.7   299.6 
Reverse repurchase agreements 
 and other similar secured 
 lending                             0.1    0.1      0.1     0.7      3.1     8.5    16.7    43.7 
Financial assets designated 
 at fair value                      14.5   15.5     15.4    23.4     21.4    22.8    22.1    25.0 
Total assets                       279.7  359.8    379.1   365.4    325.8   374.5   366.2   497.0 
Customer deposits                   12.5   16.0     17.4    19.3     20.9    25.8    27.9    29.9 
Risk weighted assets                32.1   43.9     46.7    50.9     54.3    65.6    68.6    77.9 
 
Performance measures 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Average allocated tangible 
 equity (GBPbn)                      6.5    7.6      7.9     9.0      9.7    10.2    11.3    12.4 
Period end allocated tangible 
 equity (GBPbn)                      5.4    7.2      7.8     8.5      8.5    10.2    10.1    11.7 
Loan loss rate (bps)                  31     13       14      21       25      27      13      17 
Basic (loss)/earnings per 
 share contribution               (2.9p)   0.5p   (5.2p)  (3.6p)   (7.2p)  (3.7p)  (1.9p)  (1.5p) 
 
Notable items                       GBPm   GBPm     GBPm    GBPm     GBPm    GBPm    GBPm    GBPm 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Litigation and conduct 
Provisions for UK customer 
 redress                               -      -        -       -     (58)       -    (50)    (15) 
Provisions for ongoing 
 investigations and litigation 
 including Foreign Exchange            -      -        -       -        -   (201)       -       - 
Operating expenses 
Impairment of goodwill 
 and other assets relating 
 to businesses being disposed          -      -        -       -     (96)       -       -       - 
Other net expenses 
Losses on sale relating 
 to the Spanish, Portuguese 
 and Italian business                  -      -        -       -    (246)   (201)       -    (21) 
--------------------------------  ------  -----  -------  ------  -------  ------  ------  ------ 
Total notable items                    -      -        -       -    (400)   (402)    (50)    (36) 
 
Analysis of total income 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Businesses                          (73)    181      181     196      229     314     292     304 
Securities and loans                 161   (34)    (363)   (402)    (195)    (87)       -    (68) 
Derivatives                        (507)  (306)    (162)    (36)    (102)    (12)    (49)    (14) 
================================  ======  =====  =======  ======  =======  ======  ======  ====== 
Total income                       (419)  (159)    (344)   (242)     (68)     215     243     222 
 

Excluding notable items, the Non-Core basic loss per share was 2.9p (Q415: 5.1p).

Quarterly Core Results by Business

 
 Barclays UK 
                                      Q416     Q316     Q216   Q116     Q415     Q315     Q215   Q115 
Income statement information          GBPm     GBPm     GBPm   GBPm     GBPm     GBPm     GBPm   GBPm 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Net interest income                  1,502    1,569    1,476  1,501    1,509    1,499    1,479  1,486 
Net fee, commission and 
 other income                          326      374      467    302      325      375      325    345 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Total income                         1,828    1,943    1,943  1,803    1,834    1,874    1,804  1,831 
Credit impairment charges 
 and other provisions                (180)    (350)    (220)  (146)    (219)    (154)    (166)  (167) 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Net operating income                 1,648    1,593    1,723  1,657    1,615    1,720    1,638  1,664 
Operating expenses                   (989)    (904)    (947)  (952)    (920)    (925)    (970)  (649) 
UK bank levy                          (48)        -        -      -     (77)        -        -      - 
Litigation and conduct                (28)    (614)    (399)    (1)  (1,466)     (76)    (801)  (168) 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Total operating expenses           (1,065)  (1,518)  (1,346)  (953)  (2,463)  (1,001)  (1,771)  (817) 
Other net (expenses)/income              -        -      (1)      -        1        1        1    (3) 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Profit/(loss) before tax               583       75      376    704    (847)      720    (132)    844 
Attributable profit/(loss)             383    (163)      141    467  (1,078)      541    (174)    664 
 
Balance sheet information            GBPbn    GBPbn    GBPbn  GBPbn    GBPbn    GBPbn    GBPbn  GBPbn 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Loans and advances to customers 
 at amortised cost                   166.4    166.6    166.0  166.2    166.1    166.7    166.1  166.0 
Total assets                         209.6    209.1    204.6  201.7    202.5    204.1    202.2  199.6 
Customer deposits                    189.0    185.5    181.7  179.1    176.8    173.4    171.6  168.7 
Risk weighted assets                  67.5     67.4     67.1   69.7     69.5     71.0     71.7   72.3 
Net interest margin                  3.56%    3.72%    3.56%  3.62%    3.58%    3.54%    3.54%  3.60% 
 
Performance measures 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Return on average allocated 
 tangible equity                     18.2%   (7.1%)     6.6%  20.5%  (46.5%)    23.3%   (7.3%)  28.3% 
Average allocated tangible 
 equity (GBPbn)                        8.6      8.7      9.0    9.3      9.2      9.3      9.4    9.4 
Cost: income ratio                     58%      78%      69%    53%     134%      53%      98%    45% 
Loan loss rate (bps)                    42       82       52     34       51       36       40     40 
 
Notable items                         GBPm     GBPm     GBPm   GBPm     GBPm     GBPm     GBPm   GBPm 
=================================  =======  =======  =======  =====  =======  =======  =======  ===== 
Total income 
Gain on disposal of Barclays' 
 share of Visa Europe Limited            -        -      151      -        -        -        -      - 
Litigation and conduct 
Provisions for UK customer 
 redress                                 -    (600)    (400)      -  (1,391)     (73)    (800)  (167) 
Operating expenses 
Gain on valuation of a component 
 of the defined retirement 
 benefit liability                       -        -        -      -        -        -        -    296 
---------------------------------  -------  -------  -------  -----  -------  -------  -------  ----- 
Total notable items                      -    (600)    (249)      -  (1,391)     (73)    (800)    129 
 

Excluding notable items, the Q416 Barclays UK return on average allocated tangible equity was 17.1% (Q415: 14.8%).

 
Analysis of Barclays UK 
                                  Q416   Q316   Q216   Q116   Q415   Q315   Q215   Q115 
Analysis of total income          GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                   934    970  1,068    919    945    938    905    927 
Barclaycard Consumer UK            507    561    463    491    505    552    503    505 
Wealth, Entrepreneurs & 
 Business Banking                  387    412    412    393    384    384    396    399 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income                     1,828  1,943  1,943  1,803  1,834  1,874  1,804  1,831 
 
Analysis of credit impairment 
 charges and other provisions 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                  (50)   (47)   (44)   (42)   (39)   (36)   (50)   (69) 
Barclaycard Consumer UK          (118)  (291)  (169)  (105)  (176)  (111)  (106)   (95) 
Wealth, Entrepreneurs & 
 Business Banking                 (12)   (12)    (7)      1    (4)    (7)   (10)    (3) 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total credit impairment 
 charges and other provisions    (180)  (350)  (220)  (146)  (219)  (154)  (166)  (167) 
 
Analysis of loans and advances 
 to customers at amortised 
 cost                            GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                 135.0  135.3  134.7  134.7  134.0  134.5  134.4  134.3 
Barclaycard Consumer UK           16.5   16.2   16.2   16.0   16.2   15.9   15.8   15.7 
Wealth, Entrepreneurs & 
 Business Banking                 14.9   15.1   15.1   15.5   15.9   16.3   15.9   16.0 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total loans and advances 
 to customers at amortised 
 cost                            166.4  166.6  166.0  166.2  166.1  166.7  166.1  166.0 
 
Analysis of customer deposits 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Personal Banking                 139.3  137.2  134.8  132.9  131.0  128.4  126.7  123.4 
Barclaycard Consumer UK              -      -      -      -      -      -      -      - 
Wealth, Entrepreneurs & 
 Business Banking                 49.7   48.3   46.9   46.2   45.8   45.0   44.9   45.3 
===============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total customer deposits          189.0  185.5  181.7  179.1  176.8  173.4  171.6  168.7 
 
 
Barclays International 
                                           Q416     Q316     Q216     Q116     Q415     Q315     Q215     Q115 
Income statement information               GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net interest income                       1,046    1,355    1,001    1,110    1,121    1,109    1,077    1,018 
Net trading income                        1,131    1,074    1,130    1,245      593      817    1,299    1,073 
Net fee, commission and 
 other income                             1,415    1,422    1,908    1,158    1,254    1,297    1,726    1,363 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                              3,592    3,851    4,039    3,513    2,968    3,223    4,102    3,454 
Credit impairment charges 
 and other provisions                     (426)    (420)    (240)    (269)    (303)    (235)    (206)    (178) 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Net operating income                      3,166    3,431    3,799    3,244    2,665    2,988    3,896    3,276 
Operating expenses                      (2,497)  (2,337)  (2,074)  (2,221)  (2,007)  (2,059)  (2,027)  (1,936) 
UK bank levy                              (284)        -        -        -    (253)        -        -        - 
Litigation and conduct                     (17)     (17)     (10)      (4)    (151)    (302)     (12)    (845) 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total operating expenses                (2,798)  (2,354)  (2,084)  (2,225)  (2,411)  (2,361)  (2,039)  (2,781) 
Other net income                              5        8       11        8        8        9       13       15 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Profit before tax                           373    1,085    1,726    1,027      262      636    1,870      510 
Attributable profit/(loss)                   43      623    1,171      575     (24)      422    1,376     (16) 
 
Balance sheet information                 GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Loans and advances to banks 
 and customers at amortised 
 cost                                     211.3    233.7    230.6    215.9    184.1    220.3    210.5    224.7 
Trading portfolio assets                   73.2     73.8     68.1     64.3     61.9     72.8     75.3     92.7 
Derivative financial instrument 
 assets                                   156.2    155.6    181.4    150.1    111.5    133.7    116.0    172.8 
Derivative financial instrument 
 liabilities                              160.6    160.5    187.5    155.4    119.0    142.0    124.8    182.3 
Reverse repurchase agreements 
 and other similar secured 
 lending                                   13.4     17.3     19.7     19.1     24.7     68.0     57.4     57.1 
Financial assets designated 
 at fair value                             62.3     72.0     68.3     59.6     46.8      5.6      5.6      5.2 
Total assets                              648.5    681.9    679.9    618.4    532.2    596.1    566.1    656.2 
Customer deposits                         216.2    224.1    226.5    213.1    185.6    207.0    197.7    206.2 
Risk weighted assets                      212.7    214.6    209.3    202.2    194.8    204.0    195.4    202.6 
 
Performance measures 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average allocated 
 tangible equity                           1.0%    10.0%    19.2%     9.5%   (0.2%)     7.0%    22.5%   (0.1%) 
Average allocated tangible 
 equity (GBPbn)                            26.6     25.7     24.8     25.1     24.9     24.7     24.7     25.3 
Cost: income ratio                          78%      61%      52%      63%      81%      73%      50%      81% 
Loan loss rate (bps)                         78       71       41       50       65       42       38       32 
Net interest margin(1)                    3.91%    4.21%    3.92%    3.78%    3.79%    3.85%    3.86%    3.66% 
 
Notable items                              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
======================================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income 
Gain on disposal of Barclays' 
 share of Visa Europe Limited                 -        -      464        -        -        -        -        - 
Gains on US Lehman acquisition 
 assets                                       -        -        -        -        -        -      496        - 
Litigation and conduct 
Provisions for UK customer 
 redress                                      -        -        -        -        -    (218)        -        - 
Provisions for ongoing investigations 
 and litigation including 
 Foreign Exchange                             -        -        -        -    (145)     (39)        -    (800) 
Operating expenses 
Gain on valuation of a component 
 of the defined retirement 
 benefit liability                            -        -        -        -        -        -        -      133 
--------------------------------------  -------  -------  -------  -------  -------  -------  -------  ------- 
Total notable items                           -        -      464        -    (145)    (257)      496    (667) 
 

Excluding notable items, the Q416 Barclays International return on average allocated tangible equity was 1.0% (Q415: 3.5%).

 
 1   Barclays International margins have been restated to include interest 
      earning lending within the investment banking business. 
 
 
Analysis of Barclays International 
 
Corporate and Investment            Q416     Q316     Q216     Q116     Q415     Q315     Q215     Q115 
 Bank 
Income statement information        GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Analysis of total income 
Credit                               261      333      269      322      195      191      218      220 
Equities                             410      461      406      513      319      416      588      589 
Macro                                505      614      612      573      382      487      582      657 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Markets                            1,176    1,408    1,287    1,408      896    1,094    1,388    1,466 
Banking fees                         650      644      622      481      458      501      580      548 
Corporate lending                    303      284      312      296      312      377      387      285 
Transactional banking                401      458      390      408      415      419      416      413 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Banking                            1,354    1,386    1,324    1,185    1,185    1,297    1,383    1,246 
Other                                  1        1        -        3       16     (17)      495        1 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Total income                       2,531    2,795    2,611    2,596    2,097    2,374    3,266    2,713 
Credit impairment (charges)/ 
 releases and other provisions      (90)     (38)     (37)     (95)     (83)     (75)     (42)        1 
Total operating expenses         (2,287)  (1,872)  (1,665)  (1,800)  (1,962)  (1,940)  (1,605)  (2,422) 
Profit before tax                    155      885      909      701       52      358    1,620      292 
 
Balance sheet information          GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn    GBPbn 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Risk weighted assets               178.6    182.5    178.4    172.6    167.3    177.4    170.0    177.1 
 
Performance measures 
===============================  =======  =======  =======  =======  =======  =======  =======  ======= 
Return on average allocated 
 tangible equity                  (1.2%)     9.2%     9.5%     7.3%   (2.5%)     4.5%    22.3%   (2.5%) 
Average allocated tangible 
 equity (GBPbn)                     22.6     21.9     21.3     21.6     21.8     21.7     21.7     22.3 
 

Excluding notable items, the Q416 CIB return on average allocated tangible equity was (1.2%) (Q415: 1.8%).

 
 
Consumer, Cards and Payments 
Income statement information    GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income                   1,061  1,056  1,428    917    871    849    836    741 
Credit impairment charges 
 and other provisions          (336)  (382)  (203)  (174)  (219)  (160)  (165)  (179) 
Total operating expenses       (511)  (482)  (419)  (425)  (449)  (421)  (434)  (359) 
Profit before tax                218    200    817    326    210    278    250    218 
 
Balance sheet information      GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Loans and advances to banks 
 and customers at amortised 
 cost                           39.7   36.8   35.4   32.9   32.1   30.6   29.6   29.8 
Customer deposits               50.0   48.3   46.9   44.2   41.8   39.8   38.4   40.1 
Risk weighted assets            34.1   32.1   30.9   29.6   27.5   26.6   25.4   25.5 
 
Performance measures 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Return on average allocated 
 tangible equity               13.2%  14.8%  77.9%  23.4%  15.3%  24.7%  23.4%  17.5% 
Average allocated tangible 
 equity (GBPbn)                  4.0    3.7    3.5    3.4    3.2    3.1    3.0    3.0 
 

Excluding notable items, the Q416 Consumer, Cards and Payments return on average allocated tangible equity was 13.2% (Q415: 15.7%).

 
Head Office 
                                         Q416   Q316   Q216   Q116   Q415   Q315   Q215   Q115 
Income statement information             GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Net interest income                        29  (206)     14   (20)   (75)   (51)   (46)  (133) 
Net fee, commission and 
 other income                            (38)     17    320   (13)  (210)    220    358    275 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income                              (9)  (189)    334   (33)  (285)    169    312    142 
Credit impairment releases/(charges) 
 and other provisions                       -      1    (2)      1      -      1    (1)      - 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Net operating (expenses)/income           (9)  (188)    332   (32)  (285)    170    311    142 
Operating expenses                         15   (29)   (36)   (85)   (64)  (110)   (64)   (34) 
UK bank levy                              (2)      -      -      -    (8)      -      -      - 
Litigation and conduct                    (1)    (8)   (11)    (7)   (17)   (42)    (6)    (1) 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total operating expenses                   12   (37)   (47)   (92)   (89)  (152)   (70)   (35) 
Other net income/(expenses)               159    (4)   (28)      1   (14)      2      1   (95) 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Profit/(loss) before tax                  162  (229)    257  (123)  (388)     20    242     12 
Attributable profit/(loss)                223  (203)    182   (92)  (140)    (1)    180   (28) 
 
Balance sheet information               GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total assets(1)                          75.2   73.3   87.7   63.4   59.4   61.8   62.2   63.6 
Risk weighted assets(1)                  53.3   47.5   43.2   40.3   39.7   41.3   41.0   43.1 
 
Performance measures 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Average allocated tangible 
 equity (GBPbn)                           7.2    7.4    6.6    5.0    3.9    3.4    1.8    0.9 
 
Notable items                            GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
======================================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income 
Own credit                                 46  (264)    292  (109)  (175)    195    282    128 
Litigation and conduct 
Provisions for ongoing investigations 
 and litigation including 
 Foreign Exchange                           -      -      -      -   (23)   (29)      -      - 
Other net expenses 
Losses on sale relating 
 to the Spanish, Portuguese 
 and Italian businesses                     -      -      -      -   (15)      -      -   (97) 
--------------------------------------  -----  -----  -----  -----  -----  -----  -----  ----- 
Total notable items                        46  (264)    292  (109)  (213)    166    282     31 
 
 
 1   Includes Africa Banking assets held for sale and RWAs. 
 

Quarterly Discontinued Operation Results

 
Africa Banking 
                                Q416   Q316   Q216   Q116   Q415   Q315   Q215   Q115 
Income statement information    GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm   GBPm 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Net interest income              626    561    502    480    468    471    506    505 
Net fee, commission and 
 other income                    441    421    377    338    346    351    364    403 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Total income                   1,067    982    879    818    814    822    870    908 
Credit impairment charges 
 and other provisions          (105)   (96)  (133)  (111)   (93)   (66)  (103)   (91) 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Net operating income             962    886    746    707    721    756    767    817 
Operating expenses             (727)  (598)  (543)  (477)  (501)  (515)  (536)  (539) 
UK bank levy                    (65)      -      -      -   (50)      -      -      - 
Total operating expenses       (792)  (598)  (543)  (477)  (551)  (515)  (536)  (539) 
Other net income                   2      2      1      1      3      1      1      2 
=============================  =====  =====  =====  =====  =====  =====  =====  ===== 
Profit before tax                172    290    204    231    173    242    232    280 
Profit after tax                  71    209    145    166    101    167    162    196 
Attributable (loss)/profit      (52)     85     70     86     25     85     88    104 
 
Balance sheet information      GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn  GBPbn 
============================= 
Total assets(1)                 65.1   61.1   56.0   52.7   47.9   50.2   52.2   55.9 
Risk weighted assets(1)         42.3   39.9   36.1   33.9   31.7   33.8   34.4   37.3 
 
 
 1   Africa Banking assets held for sale and RWAs are reported in Head 
      Office within Core. 
 

Performance Management

 
Margins and balances 
                                       Year ended 31.12.16                    Year ended 31.12.15 
                              Net interest    Average  Net interest  Net interest    Average  Net interest 
                                    income   customer        margin        income   customer        margin 
                                               assets                                 assets 
                                      GBPm       GBPm             %          GBPm       GBPm             % 
----------------------------  ------------  ---------  ------------  ------------  ---------  ------------ 
Barclays UK                          6,048    167,233          3.62         5,973    167,599          3.56 
Barclays International(1)            4,275    107,333          3.98         3,841    101,164          3.80 
----------------------------  ------------  ---------  ------------  ------------  ---------  ------------ 
Total Barclays UK 
 and Barclays International         10,323    274,566          3.76         9,814    268,763          3.65 
Other(2)                               214                                    794 
----------------------------  ------------  ---------  ------------  ------------  ---------  ------------ 
Total net interest 
 income                             10,537                                 10,608 
 
 
 1   Barclays International margins have been restated to include interest 
      earning lending within the investment banking business. 
 2   Other includes Head Office, Barclays Non-Core and non-lending related 
      investment banking balances. 
 
 
 --   Total Barclays UK and Barclays International net interest income 
       increased 6% to GBP10.3bn due to: 
      -   An increase in average customer assets to GBP274.6bn (2015: GBP268.8bn) 
           with growth in Barclays International, while Barclays UK remained 
           stable 
      -   Net interest margin increased 11bps to 3.76% primarily due to 
           growth in interest earning lending within the cards portfolio 
           of Barclays International and higher margins on deposits in Barclays 
           UK 
 --   Group net interest income decreased to GBP10.5bn (2015: GBP10.6bn) 
       including net structural hedge contributions of GBP1.5bn (2015: 
       GBP1.4bn) 
 --   Net interest margin by business reflects movements in the Group's 
       internal funding rates which are based on the cost to the Group 
       of alternative funding in wholesale markets. The internal funding 
       rate prices intra-group funding and liquidity to appropriately 
       give credit to businesses with net surplus liquidity and to charge 
       those businesses in need of alternative funding at a rate that 
       is driven by prevailing market rates and includes a term premium 
 
 
Quarterly analysis for Barclays UK and                 Three months ended 31.12.16 
 Barclays International 
                                               Net interest  Average customer  Net interest 
                                                     income            assets        margin 
                                                       GBPm              GBPm             % 
---------------------------------------------  ------------  ----------------  ------------ 
Barclays UK                                           1,502           167,935          3.56 
Barclays International(1)                             1,110           112,936          3.91 
---------------------------------------------  ------------  ----------------  ------------ 
Total Barclays UK and Barclays International          2,612           280,871          3.70 
 
                                                       Three months ended 30.09.16 
=============================================  ============================================ 
Barclays UK                                           1,569           167,713          3.72 
Barclays International(1)                             1,149           108,571          4.21 
---------------------------------------------  ------------  ----------------  ------------ 
Total Barclays UK and Barclays International          2,718           276,284          3.91 
 
                                                       Three months ended 30.06.16 
=============================================  ============================================ 
Barclays UK                                           1,476           166,891          3.56 
Barclays International(1)                             1,021           104,707          3.92 
---------------------------------------------  ------------  ----------------  ------------ 
Total Barclays UK and Barclays International          2,497           271,598          3.70 
 
                                                       Three months ended 31.03.16 
=============================================  ============================================ 
Barclays UK                                           1,501           166,727          3.62 
Barclays International(1)                               995           105,994          3.78 
---------------------------------------------  ------------  ----------------  ------------ 
Total Barclays UK and Barclays International          2,496           272,721          3.68 
 
                                                       Three months ended 31.12.15 
=============================================  ============================================ 
Barclays UK                                           1,509           167,405          3.58 
Barclays International(1)                               991           103,844          3.79 
---------------------------------------------  ------------  ----------------  ------------ 
Total Barclays UK and Barclays International          2,500           271,249          3.66 
 
 
 1   Barclays International margins have been restated to include interest 
      earning lending within the investment banking business. 
 

Remuneration

Deferred awards are payable only once an employee meets certain conditions, including a specified period of service. This creates a timing difference between the communication of the bonus pool and the charges that are recognised in the income statement which are reconciled in the table below to show the charge for performance costs. For 2016 awards, there have been changes in the proportion of bonuses which are deferred, to harmonise deferral structures across the Group, and to more closely align the incentive awards granted with the income statement charge, as illustrated below. The combined effect of these changes is to accelerate the rate at which the awards are recognised in the income statement, resulting in an increase in the charge for 2016 of GBP395m. There is expected to be a lesser effect in 2017 and 2018 as these changes take full effect. See page 104 of the Remuneration Report and Note 8 in the Annual Report for additional information on the changes. The table also shows the other elements of compensation and staff costs.

 
                                                       Barclays Group 
                                              -------------------------------- 
                                              Year ended  Year ended 
                                                31.12.16    31.12.15 
                                                    GBPm        GBPm  % Change 
============================================  ----------  ----------  -------- 
Incentive awards granted 
Current year bonus                                 1,018         788      (29) 
Deferred bonus                                       441         665        34 
Commissions and other incentives(1)                   74          91        19 
============================================  ==========  ----------  -------- 
Total incentive awards granted                     1,533       1,544         1 
Reconciliation of incentive awards granted 
 to income statement charge: 
Less: deferred bonuses granted but not 
 charged in current year                           (300)       (665)        55 
Add: current year charges for deferred 
 bonuses from previous years                         690         856        19 
Other differences between incentive awards 
 granted and income statement charge                (26)          26 
============================================  ==========  ----------  -------- 
Income statement charge for performance 
 costs                                             1,897       1,761       (8) 
 
Other income statement charges: 
Salaries                                           4,121       4,183         1 
Social security costs                                589         587         - 
Post retirement benefits(2)                          486         494         2 
Other compensation costs                             352         276      (28) 
--------------------------------------------  ==========  ----------  -------- 
Total compensation costs(3)                        7,445       7,301       (2) 
 
Other resourcing costs(4)                          1,978       1,981         - 
 
Total staff costs                                  9,423       9,282       (2) 
 
Group compensation as % of income excluding 
 notable items(5)                                   35.7        34.6 
 

For further detail on remuneration refer to the Remuneration Report on pages 99-133 of the Annual Report.

 
 1   Amounts previously included in 2015 as commitments are now included 
      in current year bonus and deferred bonus for consistency with 2016. 
 2   2015 post retirement benefits exclude the impact of a GBP429m gain 
      on valuation of a component of the defined benefit liability. Including 
      the gain would result in compensation: income ratio of 32.5%. 
 3   In addition, GBP212m of Group compensation (2015: GBP236m) was 
      capitalised as internally generated software. 
 4   Other resourcing costs include outsourcing, redundancy and restructuring 
      costs and other temporary staff costs. 
 5   Core compensation as a percentage of income excluding notable items 
      was 31.2% (2015: 31.3%) and CIB compensation as a percentage of 
      income excluding notable items was 41.9% (2015: 39.5%), including 
      the impact of the change in the 2016 compensation awards. 
 

Deferred bonuses have been awarded and are expected to be charged to the income statement in the years outlined in the table that follows:

 
Year in which income statement charge is expected to be taken for deferred 
 bonuses awarded to date(1) 
                                               Actual              Expected(2) 
                                       ======================  ==================== 
                                       Year ended  Year ended  Year ended  2018 and 
                                         31.12.15    31.12.16    31.12.17    beyond 
Barclays Group                               GBPm        GBPm        GBPm      GBPm 
=====================================  ==========  ==========  ==========  ======== 
Deferred bonuses from 2013 and 
 earlier bonus pools                          402         110          14         - 
Deferred bonuses from 2014 bonus 
 pool                                         454         191          80        12 
Deferred bonuses from 2015 bonus 
 pool                                                     389         175        86 
Deferred bonuses from 2016 bonus 
 pool                                                     141         135       133 
=====================================  ==========  ==========  ==========  ======== 
Income statement charge for deferred 
 bonuses                                      856         831         404       231 
 
 
 
 1   The actual amount charged depends upon whether conditions have 
      been met and will vary compared with the above expectation. 
 2   Does not include the impact of grants which will be made in 2017 
      and beyond. 
 
 
Change in charging of deferred bonus profile 
             Expected payment              Income statement 
Grant date    date(s)(1)                     charge profile 
                                          =================== 
                                          Post-2016  Pre-2016 
                                   Year      awards    awards 
===========  ====================  =====  =========  ======== 
March 2017                          2016        33%        0% 
                   2017                         33%       48% 
 March 2018 (33.3%)          2018               22%       35% 
 March 2019 (33.3%)          2019               10%       15% 
  March 2020 (33.3%)         2020                2%        2% 
 
 
 1   Certain awards may be subject to an additional holding period. 
 2   The income statement charge is based on the period over which conditions 
      are met. 
 

Liquidity

Overview

The Group has a comprehensive Key Risk Control Framework for managing the Group's liquidity risk. The Liquidity Framework meets the PRA's standards and is designed to ensure the Group maintains liquidity resources that are sufficient in amount and quality, and a funding profile that is appropriate to meet the liquidity risk appetite. The Liquidity Framework is delivered via a combination of policy formation, review and governance, analysis, stress testing, limit setting and monitoring.

While Barclays has a comprehensive framework for managing the Group's liquidity risks, liquidity risk is managed separately at Barclays Africa Group Limited (BAGL) due to local currency and funding requirements. Unless stated otherwise, all disclosures in this section exclude BAGL and they are reported on a stand-alone basis. Adjusting for local requirements, BAGL liquidity risk is managed on a consistent basis to Barclays Group.

Liquidity stress testing

Barclays manages the Group's liquidity position against the Group's internally defined Liquidity Risk Appetite (LRA) and regulatory metrics such as CRD IV Liquidity Coverage Ratio (LCR). As at December 2016, the Group held eligible liquid assets well in excess of 100% of net stress outflows for both the 30 day Barclays-specific LRA and the LCR.

 
                                                            Barclays' LRA 
                                                         (30 day Barclays 
Compliance with internal and regulatory          specific requirement)(1,  CRD IV: 
 stress tests                                                          2)   LCR(2) 
                                                                    GBPbn    GBPbn 
----------------------------------------------  -------------------------  ------- 
Eligible liquidity buffer                                             173      166 
Net stress outflows                                                 (144)    (127) 
==============================================  -------------------------  ------- 
Surplus                                                                29       39 
 
Liquidity pool as a percentage of anticipated 
 net outflows as at 31 December 2016                                 120%     131% 
Liquidity pool as a percentage of anticipated 
 net outflows as at 31 December 2015                                 131%     133% 
 

Barclays plans to maintain its surplus at an adequate level to the internal and regulatory stress requirements, whilst considering risks to market funding conditions and its liquidity position. The continuous reassessment of these risks may lead to actions being taken with respect to sizing of the liquidity pool.

 
 1   Of the three stress scenarios monitored as part of the LRA, the 
      30 day Barclays specific scenario results in the lowest ratio at 
      120% (2015 131%). This compares to 134% (2015: 144%) under the 
      90 day market-wide scenario and 144% (2015: 133%) under the 30 
      day combined scenario. 
 2   Includes BAGL. 
 
 
                                                        Liquidity pool of 
                                          Liquidity            which           Liquidity 
Liquidity pool                               pool       CRD IV LCR-eligible       pool 
                                                                Level   Level 
                                           31.12.16     Cash        1      2A   31.12.15 
                                              GBPbn    GBPbn    GBPbn   GBPbn      GBPbn 
----------------------------------------  ---------  -------  -------  ------  --------- 
Cash and deposits with central banks(1)         103      101                          48 
 
Government bonds(2) 
AAA to AA-                                       34                34 
A+ to A-                                          3                 3 
BBB+ to BBB-                                      1                 1 
Other LCR Ineligible Government bonds             1 
----------------------------------------  ---------  -------  -------  ------  --------- 
Total Government bonds                           39                38                 75 
 
Other 
========================================  =========  =======  =======  ======  ========= 
Government Guaranteed Issuers, PSEs and 
 GSEs                                            12                 9       3 
International Organisations and MDBs              6                 7 
Covered bonds                                     1                 1 
Corporate bonds 
Other                                             4 
----------------------------------------  ---------  -------  -------  ------  ========= 
Total other                                      23                17       3         22 
 
Total as at 31 December 2016                    165      101       55       3 
Total as at 31 December 2015                    145       45       87       8 
 
 
 1   Of which over 98% (2015: over 97%) was placed with the Bank of 
      England, US Federal Reserve, European Central Bank, Bank of Japan 
      and Swiss National Bank. 
 2   Of which over 90% (2015: over 92%) are comprised of UK, US, Japanese, 
      French, German, Danish, Swiss and Dutch securities. 
 

The Group liquidity pool was GBP165bn at 31 December 2016 (2015: GBP145bn). During 2016, the month-end liquidity pool ranged from GBP132bn to GBP175bn (2015: GBP142bn to GBP168bn), and the month-end average balance was GBP153bn (2015: GBP155bn). The liquidity pool is held unencumbered and is not used to support payment or clearing requirements.

Barclays manages the liquidity pool on a centralised basis. As at 31 December 2016, 91% (2015: 94%) of the liquidity pool was located in Barclays Bank PLC and was available to meet liquidity needs across the Barclays Group. The residual liquidity pool is held predominantly within Barclays Capital Inc (BCI). The portion of the liquidity pool outside of Barclays Bank PLC is held against entity-specific stressed outflows and regulatory requirements.

 
Deposit funding                                           As at 31.12.16                 As at 31.12.15 
                                             -----------------------------------------  --------------- 
                                                 Loans and 
                                                  advances   Customer  Loan to deposit  Loan to deposit 
                                              to customers   deposits            ratio            ratio 
Funding of loans and advances to customers           GBPbn      GBPbn                %                % 
-------------------------------------------  -------------  ---------  ---------------  --------------- 
Barclays UK                                            167        189 
Barclays International                                  98        152 
Non-Core                                                19          - 
-------------------------------------------  -------------  ---------  ---------------  --------------- 
Total Barclays UK, Barclays International 
 and Non-Core(1)                                       284        341              83%              86% 
 
Barclays International, Head 
 Office and Non-Core(2)                                109         82 
-------------------------------------------  -------------  ---------  ---------------  --------------- 
Total                                                  393        423              93%              95% 
 

Total Barclays UK, Barclays International and Non-Core(1) are largely funded by customer deposits. The loan to deposit ratio for these businesses was 83% (2015: 86%). The customer deposits in excess of loans and advances are primarily used to fund liquidity buffer requirements for these businesses. The loan to deposit ratio for the Group is 93% (2015: 95%).

As at 31 December 2016, GBP139bn (2015: GBP129bn) of total customer deposits were insured through the UK Financial Services Compensation Scheme and other similar schemes. In addition to these customer deposits, there were GBP4bn (2015: GBP4bn) of other liabilities insured or guaranteed by governments.

 
 1   Excluding investment banking businesses. 
 2   Including investment banking businesses. 
 

Wholesale Funding

Composition of wholesale funding(1)

The Group's total wholesale funding outstanding (excluding repurchase agreements) was GBP158bn (2015: GBP142bn). GBP70bn (2015: GBP54bn) of wholesale funding matures in less than one year, of which GBP22bn (2015: GBP14bn) relates to term funding.

Outstanding wholesale funding comprised of GBP26bn (2015: GBP25bn) of secured funding and GBP132bn (2015: GBP117bn) of unsecured funding.

 
Maturity profile of wholesale 
 funding(2) 
                               <1      1-3      3-6     6-12     <1     1-2     2-3     3-4     4-5 
                            month   months   months   months   year   years   years   years   years  >5 years  Total 
                            GBPbn    GBPbn    GBPbn    GBPbn  GBPbn   GBPbn   GBPbn   GBPbn   GBPbn     GBPbn  GBPbn 
-------------------------  ------  -------  -------  -------  -----  ------  ------  ------  ------  --------  ----- 
Barclays PLC 
Senior unsecured 
 (public benchmark)             -        -        -        -      -     0.9     1.6     1.1     4.5       7.9   16.0 
Senior unsecured 
 (privately placed)             -        -        -        -      -     0.1       -       -     0.2       0.5    0.8 
Subordinated liabilities        -        -        -        -      -       -       -     1.1       -       2.7    3.8 
-------------------------  ------  -------  -------  -------  -----  ------  ------  ------  ------  --------  ----- 
Barclays Bank PLC 
Deposits from banks           9.2      4.3      1.7      1.1   16.3     0.2       -     0.3       -         -   16.8 
Certificates of deposit 
 and commercial paper         0.3      5.2      5.6     10.9   22.0     0.7     1.1     0.5     0.5       0.3   25.1 
Asset backed commercial 
 paper                        3.7      3.1      0.7        -    7.5       -       -       -       -         -    7.5 
Senior unsecured 
 (public benchmark)           1.7      0.6      1.6        -    3.9       -     2.7     0.7     0.7       1.1    9.1 
Senior unsecured 
 (privately placed)(3)        0.6      1.5      3.6      3.5    9.2     7.3     5.5     3.2     1.6      10.0   36.8 
Covered bonds                   -      1.8      1.6      1.5    4.9     1.0     1.8       -     1.0       3.7   12.4 
Asset backed securities         -      0.6      1.0      0.6    2.2     0.7     1.4     0.4       -       0.7    5.4 
Subordinated liabilities        -        -        -      1.3    1.3     3.2     0.1     1.0     5.5       8.5   19.6 
Other(4)                      1.1      0.2      0.6      1.1    3.0     0.2     0.2     0.3     0.1       0.7    4.5 
-------------------------  ------  -------  -------  -------  -----  ------  ------  ------  ------  --------  ----- 
Total as at 31 December 
 2016                        16.6     17.3     16.4     20.0   70.3    14.3    14.4     8.6    14.1      36.1  157.8 
Of which secured              3.7      5.6      3.4      2.3   15.0     1.8     3.2     0.4     1.0       4.4   25.8 
Of which unsecured           12.9     11.7     13.0     17.7   55.3    12.5    11.2     8.2    13.1      31.7  132.0 
-------------------------  ------  -------  -------  -------  -----  ------  ------  ------  ------  --------  ----- 
Total as at 31 December 
 2015                        15.8     15.3      8.6     13.8   53.5    16.5    12.6    13.7     8.3      37.3  141.9 
Of which secured              4.2      3.9      1.6      0.3   10.0     5.1     2.4     2.8     0.5       4.5   25.3 
Of which unsecured           11.6     11.4      7.0     13.5   43.5    11.4    10.2    10.9     7.8      32.8  116.6 
 
 
 1   The composition of wholesale funds comprises the balance sheet 
      reported Deposits from Banks, Financial liabilities at Fair Value, 
      Debt Securities in Issue and Subordinated Liabilities, excluding 
      cash collateral and settlement balances and collateral swaps. Included 
      within deposits from banks are GBP4.5bn of liabilities drawn in 
      the European Central Bank's facilities. 
 2   Term funding maturities comprise public benchmark and privately 
      placed senior unsecured notes, covered bonds/asset-backed securities 
      (ABS) and subordinated debt where the original maturity of the 
      instrument was more than 1 year. 
 3   Includes structured notes of GBP30.8bn, GBP7.7bn of which matures 
      within one year. 
 4   Primarily comprised of fair value deposits GBP3bn and secured financing 
      transactions of physical gold GBP0.5bn. 
 

Term financing

In preparation for a Single Point of Entry resolution model, Barclays has made good progress on the issuance of debt capital and term senior unsecured funding from Barclays PLC, the holding company, replacing maturing debt in Barclays Bank PLC.

The Group issued GBP12.1bn equivalent of capital and senior unsecured debt from the holding company of which GBP8.6bn equivalent and GBP0.7bn equivalent in public and private senior unsecured debt respectively, and GBP2.8bn of capital instruments. In the same period GBP7.4bn of Barclays Bank PLC capital and senior unsecured debt was bought back or called.

The Group has GBP21.2bn(1) of term funding maturing in 2017 and GBP13.2bn in 2018.

The Group expects to continue to issue public wholesale debt in 2017, in order to maintain a stable and diverse funding base by type, currency and distribution channel.

 
 1   Includes GBP0.2bn bilateral secured funding. 
 

Credit ratings

In addition to monitoring and managing key metrics related to the financial strength of the Group, Barclays also solicits independent credit ratings by Standard & Poor's (S&P), Moody's, Fitch and Rating and Investment Information (R&I). These ratings assess the creditworthiness of the Group, its subsidiaries and branches and are based on reviews of a broad range of business and financial attributes including risk management processes and procedures, capital strength, earnings, funding, asset quality, liquidity, accounting and governance.

 
                              Standard 
As at 31 December 2016        & Poor's          Moody's       Fitch 
======================  ==============  ===============  ========== 
Barclays Bank PLC 
Long-term                A- (Negative)    A1 (Negative)  A (Stable) 
Short-term                         A-2              P-1          F1 
Stand-alone rating(1)             bbb+             baa2           a 
----------------------  --------------  ---------------  ---------- 
Barclays PLC 
Long-term               BBB (Negative)  Baa2 (Negative)  A (Stable) 
Short-term                         A-2              P-3          F1 
 
 
 1   Refers to Standard & Poor's Stand-Alone Credit Profile (SACP), 
      Moody's Baseline Credit Assessment (BCA) and Fitch's Viability 
      Rating (VR). 
 

During the year, Barclays' ratings outlooks for Moody's and S&P were changed to Negative from Stable following the outcome of the EU referendum in June 2016. The rating actions were part of a wider set of actions which saw the two agencies place several UK banks on negative outlooks whilst affirming the ratings. The ratings continue to carry a stable outlook with Fitch.

In December 2016 Moody's upgraded senior long term ratings for both Barclays Bank PLC and Barclays PLC by one notch reflecting the continued build-up of loss absorbing capacity at Barclays PLC which would provide additional protection for Barclays Bank PLC's depositors and senior unsecured creditors, and Barclays PLC's senior unsecured creditors in a failure scenario. The negative outlooks assigned in June remained in place as the rating agency's assessment of Barclays' standalone credit strength was unaffected by the rating action.

S&P and Fitch affirmed Barclays' ratings in July and December 2016 respectively as part of their periodic reviews.

Barclays also solicits issuer ratings from R&I for local issuances purposes in Japan and the ratings of A- for Barclays PLC and A for Barclays Bank PLC were affirmed in July 2016 with stable outlooks.

Capital

CRD IV capital

Barclays' current regulatory requirement is to meet a fully loaded CRD IV CET1 ratio comprising the required 4.5% minimum CET1 ratio and, phased in from 2016, a Combined Buffer Requirement. This currently comprises a Capital Conservation Buffer (CCB) of 2.5% and a Globally Systemically Important Institution (G-SII) buffer determined by the PRA in line with guidance from the Financial Stability Board (FSB). Both buffers are subject to phased implementation, the CCB is phased in at 25% per annum with 0.625% applicable for 2016. The G-SII buffer for 2016 and 2017 has been set at 2% and is also phased in at 25% per annum with 0.5% applicable for 2016 and 1% for 2017. On 21 November 2016 the FSB confirmed that the G-SII buffer for 2018 will be 1.5% with 1.1% applicable for 2018 and taking full effect from 2019 onwards.

Also forming part of the Combined Buffer Requirement is a Counter-Cyclical Capital Buffer (CCyB) and a Systemic Risk Buffer (SRB). On 30 November 2016 the Financial Policy Committee (FPC) reaffirmed that it expects to maintain a CCyB of 0% on UK exposures until at least June 2017. Other national authorities also determine the appropriate CCyBs that should be applied to exposures in their jurisdiction. During 2016, CCyBs started to apply for Barclays' exposures to other jurisdictions; however based on current exposures these are not material. No SRB has been set to date.

In addition, Barclays' Pillar 2A requirement as per the PRA's Individual Capital Guidance (ICG) for 2016 based on a point in time assessment was 3.9% of which 56% needs to be met in CET1 form, equating to approximately 2.2% of RWAs. The Pillar 2A requirement is subject to at least annual review and for 2017 Barclays' Pillar 2A add-on will be 4.0%, with approximately 2.3% of RWAs needing to be met in CET1 form. All capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.

As at 31 December 2016, Barclays' CET1 ratio was 12.4% which exceeds the 2016 transitional minimum requirement of 7.8% including the minimum 4.5% CET1 ratio requirement, 2.2% of Pillar 2A, a 0.625% CCB buffer, a 0.5% G-SII buffer and a 0% CCyB.

 
                                                     As at     As at     As at 
================================================ 
Capital ratios                                    31.12.16  30.09.16  31.12.15 
================================================  ========  ========  ======== 
Fully loaded CET1(1,2)                               12.4%     11.6%     11.4% 
PRA Transitional Tier 1(3,4)                         15.6%     14.8%     14.7% 
PRA Transitional Total Capital(3,4)                  19.6%     18.8%     18.6% 
 
Capital resources                                     GBPm      GBPm      GBPm 
================================================  ========  ========  ======== 
Shareholders' equity (excluding non-controlling 
 interests) per the balance sheet                   64,873    63,929    59,810 
Less: other equity instruments (recognised 
 as AT1 capital)                                   (6,449)   (6,442)   (5,305) 
Adjustment to retained earnings for 
 foreseeable dividends                               (388)     (276)     (631) 
Minority interests (amount allowed 
 in consolidated CET1)                               1,825     1,695       950 
 
Other regulatory adjustments and 
 deductions: 
Additional value adjustments (PVA)                 (1,571)   (1,742)   (1,602) 
Goodwill and intangible assets                     (9,054)   (8,847)   (8,234) 
Deferred tax assets that rely on 
 future profitability excluding temporary 
 differences                                         (494)     (623)     (855) 
Fair value reserves related to gains 
 or losses on cash flow hedges                     (2,104)   (2,952)   (1,231) 
Excess of expected losses over impairment          (1,294)   (1,272)   (1,365) 
Gains or losses on liabilities at 
 fair value resulting from own credit                   86        72       127 
Defined-benefit pension fund assets                   (38)      (40)     (689) 
Direct and indirect holdings by an 
 institution of own CET1 instruments                  (50)      (50)      (57) 
Deferred tax assets arising from 
 temporary differences (amount above 
 10% threshold)                                      (183)      (49)         - 
Other regulatory adjustments                            45     (226)     (177) 
================================================  ========  ========  ======== 
Fully loaded CET1 capital                           45,204    43,177    40,741 
 
Additional Tier 1 (AT1) capital 
Capital instruments and related share 
 premium accounts                                    6,449     6,442     5,305 
Qualifying AT1 capital (including 
 minority interests) issued by subsidiaries          5,445     5,658     6,718 
Other regulatory adjustments and 
 deductions                                          (130)     (130)     (130) 
================================================  ========  ========  ======== 
Transitional AT1 capital(5)                         11,764    11,970    11,893 
================================================  ========  ========  ======== 
PRA Transitional Tier 1 capital                     56,968    55,147    52,634 
 
Tier 2 (T2) capital 
Capital instruments and related share 
 premium accounts                                    3,769     3,631     1,757 
Qualifying T2 capital (including 
 minority interests) issued by subsidiaries         11,366    11,664    12,389 
Other regulatory adjustments and 
 deductions                                          (257)     (254)     (253) 
================================================  ========  ========  ======== 
PRA Transitional total regulatory 
 capital                                            71,846    70,188    66,527 
 
 
 1   The transitional regulatory adjustments to CET1 capital are no 
      longer applicable resulting in CET1 capital on a fully loaded basis 
      being equal to that on a transitional basis. 
 2   The CRD IV CET1 ratio (FSA October 2012 transitional statement) 
      as applicable to Barclays' Tier 2 Contingent Capital Notes was 
      13.7% based on GBP50bn of transitional CRD IV CET1 capital and 
      GBP366bn of RWAs. 
 3   The PRA transitional capital is based on the PRA Rulebook and accompanying 
      supervisory statements. 
 4   As at 31 December 2016, Barclays' fully loaded Tier 1 capital was 
      GBP51,993m, and the fully loaded Tier 1 ratio was 14.2%. Fully 
      loaded total regulatory capital was GBP67,772m and the fully loaded 
      total capital ratio was 18.5%. 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. 
 5   Of the GBP11.8bn transitional AT1 capital, fully loaded AT1 capital 
      used for the leverage ratio comprises the GBP6.4bn capital instruments 
      and related share premium accounts, GBP0.5bn qualifying minority 
      interests and GBP0.1bn capital deductions. It excludes legacy Tier 
      1 capital instruments issued by subsidiaries that are subject to 
      grandfathering. 
 
 
Movement in CET1 capital                                 Three months 
                                                                ended  Year ended 
                                                             31.12.16    31.12.16 
                                                                 GBPm        GBPm 
-------------------------------------------------------  ------------  ---------- 
Opening CET1 capital                                           43,177      40,741 
 
Profit for the period attributable to equity holders              238       2,080 
Own credit                                                         14        (41) 
Dividends paid and foreseen                                     (212)       (843) 
-------------------------------------------------------  ------------  ---------- 
Increase in retained regulatory capital generated 
 from earnings                                                     40       1,196 
 
Net impact of share schemes                                       330         535 
Available for sale reserves                                      (91)       (391) 
Currency translation reserves                                     637       3,674 
Other reserves                                                      3       (778) 
-------------------------------------------------------  ------------  ---------- 
Increase in other qualifying reserves                             879       3,040 
 
Retirement benefit reserve                                        768       (988) 
Defined-benefit pension fund asset deduction                        2         651 
-------------------------------------------------------  ------------  ---------- 
Net impact of pensions                                            770       (337) 
 
Minority interests                                                130         875 
Additional value adjustments (PVA)                                171          31 
Goodwill and intangible assets                                  (207)       (820) 
Deferred tax assets that rely on future profitability 
 excluding those arising from temporary differences               129         361 
Excess of expected loss over impairment                          (22)          71 
Direct and indirect holdings by an institution of 
 own CET1 instruments                                               -           7 
Deferred tax assets arising from temporary differences 
 (amount above 10% threshold)                                   (134)       (183) 
Other regulatory adjustments                                      271         222 
-------------------------------------------------------  ------------  ---------- 
Increase in regulatory capital due to adjustments 
 and deductions                                                   338         564 
 
Closing CET1 capital                                           45,204      45,204 
 
 
 --   The CET1 ratio improved to 12.4% (December 2015: 11.4%) primarily 
       driven by an increase in CET1 capital of GBP4.5bn to GBP45.2bn 
       primarily as a result of profits of GBP2.1bn generated in the year, 
       after absorbing the impact of notable items. Regulatory capital 
       generated from earnings after absorbing the impact of own credit 
       and dividends paid and foreseen increased CET1 capital by GBP1.2bn. 
       Other significant movements in the year were: 
      -    A GBP3.0bn increase in other qualifying reserves including a 
            GBP3.7bn increase in the currency translation reserves as USD, 
            EUR and ZAR strengthened against GBP; partially offset by a GBP0.4bn 
            decrease as a result of preference share redemptions and a GBP0.4bn 
            decrease in AFS reserves 
      -    A GBP0.3bn decrease, net of tax, as a result of movements relating 
            to pensions. There was a GBP1.0bn decrease in the retirement 
            benefit reserve largely within the UKRF, which is the Groups 
            main pension scheme, moving from a GBP0.8bn surplus in December 
            2015 to a GBP27m deficit in December 2016. The decrease in reserves 
            was partially offset by the removal of a GBP0.7bn capital deduction 
            for the UKRF asset in December 2015 
      -    A GBP0.9bn increase in minority interests following the sale 
            of 12.2% of BAGL's issued share capital was partially offset 
            by GBP0.3bn higher capital deductions 
 --   Transitional AT1 capital remained largely flat in the period as 
       redemptions and repurchases of GBP1.3bn of CRD IV end point non-qualifying 
       preference shares, Tier One Notes and Reserve Capital Instruments 
       were offset by the issuance of $1.5bn of qualifying AT1 capital 
       instruments 
 
 
Risk weighted assets (RWAs) by risk type and business 
                                               Counterparty credit                          Operational    Total 
                         Credit risk                   risk                  Market risk           risk     RWAs 
                       ===============  ==================================  ==============  ===========  ======= 
                                                        Settlement 
                          Std      IRB     Std     IRB        Risk     CVA     Std     IMA 
As at 31.12.16           GBPm     GBPm    GBPm    GBPm        GBPm    GBPm    GBPm    GBPm         GBPm     GBPm 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays UK             5,592   49,591      47       -           -       -       -       -       12,293   67,523 
Barclays 
 International         53,201   82,327  13,515  13,706          30   3,581   9,343   9,460       27,538  212,701 
Head Office(1)          9,048   27,122      77   1,157           -     927     482   2,323       12,156   53,292 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays Core          67,841  159,040  13,639  14,863          30   4,508   9,825  11,783       51,987  333,516 
Barclays Non-Core       4,714    9,945   1,043   6,081          37   2,235     477   2,928        4,673   32,133 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays Group         72,555  168,985  14,682  20,944          67   6,743  10,302  14,711       56,660  365,649 
 
As at 30.09.16 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays UK             5,886   49,183       9       -           -      39       -       -       12,293   67,410 
Barclays 
 International         51,498   82,020  14,201  13,945          82   4,931  11,485   8,900       27,538  214,600 
Head Office(1)          8,527   25,174      43   1,088           -     844     580   2,560        8,685   47,501 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays Core          65,911  156,377  14,253  15,033          82   5,814  12,065  11,460       48,516  329,511 
Barclays Non-Core       7,009   11,037   1,740   7,435           2   4,287     695   3,526        8,144   43,875 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays Group         72,920  167,414  15,993  22,468          84  10,101  12,760  14,986       56,660  373,386 
 
As at 31.12.15 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays UK             6,562   50,763      26       -           -       -       -       -       12,174   69,525 
Barclays 
 International         45,892   77,275  10,463  11,055         516   3,406   8,373  10,196       27,657  194,833 
Head Office(1)          8,291   20,156      54     538           8     382     399   1,903        8,003   39,734 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays Core          60,745  148,194  10,543  11,593         524   3,788   8,772  12,099       47,834  304,092 
Barclays Non-Core       8,704   12,797   1,653   9,430           1   7,480   1,714   3,679        8,826   54,284 
=====================  ======  =======  ======  ======  ==========  ======  ======  ======  ===========  ======= 
Barclays Group         69,449  160,991  12,196  21,023         525  11,268  10,486  15,778       56,660  358,376 
 
 
 1   Includes Africa Banking discontinued operation. 
 
 
Movement analysis of risk weighted assets 
 
                                             Counterparty               Operational 
                                Credit risk   credit risk  Market risk         risk  Total RWAs 
==============================  ===========  ============  ===========  ===========  ========== 
                                      GBPbn         GBPbn        GBPbn        GBPbn       GBPbn 
As at 01.01.16                        230.4          45.0         26.3         56.7       358.4 
Book size                               0.8           1.2        (0.6)            -         1.4 
Acquisitions and disposals            (6.4)         (0.2)            -            -       (6.6) 
Book quality                          (0.5)         (0.4)          0.6            -       (0.3) 
Model updates                         (2.9)         (2.0)        (0.3)            -       (5.2) 
Methodology and policy                  1.1         (1.2)        (1.0)            -       (1.1) 
Foreign exchange movements(1)          19.0             -            -            -        19.0 
------------------------------  -----------  ------------  -----------  -----------  ---------- 
As at 31.12.16                        241.5          42.4         25.0         56.7       365.6 
 
 
 1   Foreign exchange movement does not include FX for modelled counterparty 
      risk or modelled market risk. 
 

RWAs increased GBP7.2bn to GBP365.6bn, due to:

 
 --   Book size increased RWAs by GBP1.4bn primarily due to an increase 
       in trading activity in Barclays International and business growth 
       in corporate and consumer lending partially offset by securitisation 
       transactions 
 --   Acquisitions and disposals decreased RWAs by GBP6.6bn primarily 
       due to the rundown of Non-Core portfolios, including the sale of 
       Portuguese and Italian businesses 
 --   Model updates decreased RWAs by GBP5.2bn primarily driven by changes 
       in the mortgages credit risk model in Barclays UK 
 --   Methodology and Policy decreased RWAs by GBP1.1bn primarily driven 
       by the effect of collateral modelling for mismatched FX collateral 
       on average CVA and a new treatment for sovereign exposures, partly 
       offset by modelled wholesale recalibration 
 --   Foreign exchange movements increased RWAs by GBP19.0bn primarily 
       driven by the appreciation of ZAR, USD and EUR against GBP 
 

Leverage ratio and exposures

Effective 1 January 2016, Barclays is required to disclose a leverage ratio and an average leverage ratio applicable to the Group:

 
   --   The leverage ratio is consistent with the December 2015 method 
         of calculation and has been included in the table below. The 
         calculation uses the end point CRR definition of Tier 1 capital 
         for the numerator and the CRR definition of leverage exposure. 
         The current expected minimum fully loaded requirement is 3%, 
         but this could be impacted by the Basel Consultation on the Leverage 
         Framework 
   --   The average leverage ratio as outlined by the PRA Supervisory 
         Statement SS45/15 and the updated PRA rulebook is calculated 
         as the capital measure divided by the exposure measure, where 
         the capital and exposure measure is based on the average of the 
         last day of each month in the quarter. The expected end point 
         minimum requirement is 3.5% comprising of the 3% minimum requirement, 
         a fully phased in G-SII additional leverage ratio buffer (G-SII 
         ALRB) and a countercyclical leverage ratio buffer (CCLB). The 
         minimum requirement is on a phased basis in line with the CET1 
         G-SII buffer which results in a minimum requirement of 3.175% 
         at 31 December 2016 
 

At 31 December 2016, Barclays' leverage ratio was 4.6% (December 2015: 4.5%) and the average leverage ratio was 4.3%, which exceeds the transitional minimum requirement for Barclays of 3.175% and expected end point minimum requirement of 3.5%.

In August 2016, the PRA implemented the FPC's recommendation to allow firms to exclude qualifying central bank claims from the calculation of the leverage exposure measure, as long as these are matched by deposits denominated in the same currency, subject to firms obtaining permission from the PRA. This change in reporting requirements is effective 1 April 2017 and will result in a modification to the calculation of the exposure measure for the purpose of calculating the UK leverage ratio. At 31 December 2016, Barclays' reported leverage ratio and average leverage ratio disclosed below is unaffected by this announcement as firms are required to disclose based on the existing rules. The impact of the PRA rule modification would have resulted in an average leverage ratio of 4.5% and a leverage ratio at 31 December 2016 of 5.0%.

 
                                                  As at      As at      As at 
                                               31.12.16   30.09.16   31.12.15 
                                                  GBPbn      GBPbn      GBPbn 
============================================  =========  =========  ========= 
Accounting assets 
Derivative financial instruments                    347        410        328 
Cash collateral                                      67         74         62 
Reverse repurchase agreements and 
 other similar secured lending                       13         17         28 
Financial assets designated at fair 
 value(1)                                            79         94         77 
Loans and advances and other assets                 707        729        625 
============================================  =========  =========  ========= 
Total IFRS assets                                 1,213      1,324      1,120 
 
Regulatory consolidation adjustments                (6)        (8)       (10) 
 
Derivatives adjustments 
Derivatives netting                               (313)      (373)      (293) 
Adjustments to cash collateral                     (50)       (59)       (46) 
Net written credit protection                        12         20         15 
Potential Future Exposure (PFE) on 
 derivatives                                        136        143        129 
============================================  =========  =========  ========= 
Total derivatives adjustments                     (215)      (269)      (195) 
 
Securities financing transactions 
 (SFTs) adjustments                                  29         36         16 
 
Regulatory deductions and other adjustments        (15)       (16)       (14) 
Weighted off-balance sheet commitments              119        118        111 
============================================  =========  =========  ========= 
Total leverage exposure                           1,125      1,185      1,028 
 
Fully loaded CET 1 capital                         45.2       43.2       40.7 
Fully loaded AT1 capital                            6.8        6.8        5.4 
============================================  =========  =========  ========= 
Fully loaded Tier 1 capital                        52.0       49.9       46.2 
 
Leverage ratio                                     4.6%       4.2%       4.5% 
 
 
 1   Included within financial assets designated at fair value are reverse 
      repurchase agreements designated at fair value of GBP63bn (2015: 
      GBP50bn). 
 

The leverage ratio increased to 4.6% (December 2015: 4.5%) primarily driven by a GBP5.8bn increase in fully loaded Tier 1 capital to GBP52.0bn (December 2015: GBP46.2bn), partially offset by an increase in the leverage exposure of GBP97bn to GBP1,125bn (December 2015: GBP1,028bn):

 
 --   The IFRS asset increase was mainly driven by loans and advances 
       and other assets which increased GBP82bn to GBP707bn. The increase 
       was primarily due to the appreciation of major currencies against 
       GBP, an increase in liquidity pool assets and lending growth in 
       Barclays UK and Barclays International. This was partially offset 
       by the rundown and exit of Non-Core assets 
 --   SFT adjustments increased by GBP13bn to GBP29bn, primarily as a 
       result of a change in treatment of securities pre-positioned for 
       use against undrawn central bank lending facilities 
 --   PFE on derivatives increased by GBP7bn to GBP136bn primarily driven 
       by the appreciation of major currencies against GBP, partially 
       offset by compression activity, sale of positions and maturity 
       of trades 
 --   Weighted off balance sheet commitments increased by GBP8bn to GBP119bn 
       primarily driven by the appreciation of major currencies against 
       GBP 
 

The average leverage exposure measure for Q416 was GBP1,206bn resulting in an average leverage ratio of 4.3%. The CET1 capital held against the 0.175% transitional G-SII ALRB was GBP2bn. The impact of the CCLB is currently nil.

The difference between the average leverage ratio and the leverage ratio was primarily driven by higher positions in October and November within trading portfolio assets, reverse repurchase agreements and settlements balances.

Credit Risk

 
Analysis of retail and wholesale loans and advances and 
 impairment 
 
                                                         Loans                      CRLs % 
                              Gross               and advances                    of gross 
                              loans  Impairment         net of       Credit          loans  Loan impairment  Loan loss 
                       and advances   allowance     impairment   Risk Loans   and advances       charges(1)      rates 
As at 31.12.16                 GBPm        GBPm           GBPm         GBPm              %             GBPm        bps 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Barclays UK                 155,729       1,519        154,210        2,044            1.3              866         56 
Barclays 
 International               33,485       1,492         31,993        1,249            3.7            1,085        324 
Barclays Core               189,214       3,011        186,203        3,293            1.7            1,951        103 
Barclays Non-Core            10,319         385          9,934          838            8.1              102         99 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Total Group retail          199,533       3,396        196,137        4,131            2.1            2,053        103 
 
Barclays UK                  15,204         282         14,922          591            3.9               30         20 
Barclays 
 International              180,102         748        179,354        1,470            0.8              258         14 
Head Office                   4,410           -          4,410            -              -                -          - 
Barclays Core               199,716       1,030        198,686        2,061            1.0              288         14 
Barclays Non-Core            41,406         194         41,212          299            0.7               11          3 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Total Group 
 wholesale                  241,122       1,224        239,898        2,360            1.0              299         12 
 
Total loans and 
 advances 
 at amortised cost          440,655       4,620        436,035        6,491            1.5            2,352         53 
 
Traded loans                  2,975         n/a          2,975          n/a 
Loans and advances 
 designated 
 at fair value               10,519         n/a         10,519          n/a 
====================  =============  ==========  =============  =========== 
Loans and advances 
 held 
 at fair value               13,494         n/a         13,494          n/a 
 
Total loans and 
 advances                   454,149       4,620        449,529        6,491 
 
As at 31.12.15 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Barclays UK                 153,539       1,556        151,983        2,238            1.5              682         44 
Barclays 
 International               26,041         897         25,144          863            3.3              714        274 
Barclays Core               179,580       2,453        177,127        3,101            1.7            1,396         78 
Barclays Non-Core            12,588         464         12,124          936            7.4              139        110 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Total Group retail          192,168       2,917        189,251        4,037            2.1            1,535         80 
 
Barclays UK                  16,400         312         16,088          637            3.9               24         15 
Barclays 
 International              159,776         617        159,159        1,330            0.8              201         13 
Head Office                   5,767           -          5,767            -              -                -          - 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Barclays Core               181,943         929        181,014        1,967            1.1              225         12 
Barclays Non-Core            39,979         336         39,643          441            1.1             (16)        (4) 
====================  =============  ==========  =============  ===========  =============  ===============  ========= 
Total Group 
 wholesale                  221,922       1,265        220,657        2,408            1.1              209          9 
 
Total loans and 
 advances 
 at amortised cost          414,090       4,182        409,908        6,445            1.6            1,744         42 
 
BAGL loans and 
 advances 
 at amortised cost           31,397         739         30,658        1,372 
 
Traded loans                  2,474         n/a          2,474          n/a 
Loans and advances 
 designated 
 at fair value               17,913         n/a         17,913          n/a 
====================  =============  ==========  =============  =========== 
Loans and advances 
 held 
 at fair value               20,387         n/a         20,387          n/a 
 
Total loans and 
 advances                   465,874       4,921        460,953        7,817 
 
 
 1   Excluding impairment charges on available for sale investments 
      and reverse repurchase agreements. 
 

Total loans and advances decreased by GBP12bn to GBP450bn driven by a GBP31bn decrease due to the reclassification of BAGL balances to held for sale and GBP9bn from the exit of other assets in Non-Core. This was offset by lending of GBP20bn driven by volume growth and foreign currency movements due to the appreciation of average USD and EUR against GBP. There was also a net GBP9bn increase in settlement and cash collateral balances.

Credit risk loans (CRLs) and the ratio of CRLs to gross loans and advances excluding BAGL balances now held for sale remained stable at GBP6.5bn (2015: GBP6.4bn) and 1.5% (2015: 1.6%) respectively.

Loan impairment charges increased GBP0.6bn to GBP2.4bn primarily due to increased charges following the management review of impairment modelling for UK and US cards portfolios and the impairment of a number of single name exposures. Overall, this resulted in a 11bps increase in the loan loss rate to 53bps.

 
Analysis of potential credit risk loans (PCRLs), potential problem loans 
 (PPLs) and coverage ratios 
                                      CRLs                  PPLs               PCRLs 
                             ======================  ==================  ================== 
                                  As at       As at     As at     As at     As at     As at 
                               31.12.16    31.12.15  31.12.16  31.12.15  31.12.16  31.12.15 
                                   GBPm        GBPm      GBPm      GBPm      GBPm      GBPm 
===========================  ==========  ==========  ========  ========  ========  ======== 
Barclays UK                       2,044       2,238       310       382     2,354     2,620 
Barclays International            1,249         863       192       117     1,441       980 
Barclays Core                     3,293       3,101       502       499     3,795     3,600 
Barclays Non-Core                   838         936        11        26       849       962 
===========================  ==========  ==========  ========  ========  ========  ======== 
Total retail                      4,131       4,037       513       525     4,644     4,562 
 
Barclays UK                         591         637        94       127       685       764 
Barclays International            1,470       1,330     1,530       877     3,000     2,207 
Barclays Core                     2,061       1,967     1,624     1,004     3,685     2,971 
Barclays Non-Core                   299         441        59       122       358       563 
===========================  ==========  ==========  ========  ========  ========  ======== 
Total wholesale                   2,360       2,408     1,683     1,126     4,043     3,534 
 
Total retail and wholesale        6,491       6,445     2,196     1,651     8,687     8,096 
 BAGL                                 -       1,372         -       399         -     1,771 
===========================  ==========  ==========  ========  ========  ========  ======== 
Group total                       6,491       7,817     2,196     2,050     8,687     9,867 
 
                              Impairment allowance      CRL coverage       PCRL coverage 
                             ======================  ==================  ================== 
                                  As at       As at     As at     As at     As at     As at 
                               31.12.16    31.12.15  31.12.16  31.12.15  31.12.16  31.12.15 
                                   GBPm        GBPm         %%                  %% 
===========================  ==========  ==========  ========   =======  ======== ======= 
Barclays UK                       1,519       1,556      74.3      69.5      64.5      59.4 
Barclays International            1,492         897     119.5     103.9     103.5      91.5 
Barclays Core                     3,011       2,453      91.4      79.1      79.3      68.1 
Barclays Non-Core                   385         464      45.9      49.6      45.3      48.2 
===========================  ==========  ==========  ========  ========  ========  ======== 
Total retail                      3,396       2,917      82.2      72.3      73.1      63.9 
 
Barclays UK                         282         312      47.7      49.0      41.2      40.8 
Barclays International              748         617      50.9      46.4      24.9      28.0 
Barclays Core                     1,030         929      50.0      47.2      28.0      31.3 
Barclays Non-Core                   194         336      64.9      76.2      54.2      59.7 
===========================  ==========  ==========  ========  ========  ========  ======== 
Total wholesale                   1,224       1,265      51.9      52.5      30.3      35.8 
 
Total retail and wholesale        4,620       4,182      71.2      64.9      53.2      51.7 
 BAGL                                 -         739         -      53.9         -      41.7 
Group total                       4,620       4,921      71.2      63.0      53.2      49.9 
 
 
 --   Excluding BAGL balances, CRLs remained stable at GBP6.5bn (2015: 
       GBP6.4bn) with the Group's CRL coverage ratio increasing to 71% 
       (2015: 65%) mainly within retail portfolios 
 --   The CRL coverage ratio for retail portfolios increased to 82% (2015: 
       72%) primarily due to increased impairment allowances following 
       the management review of impairment modelling of the UK and US 
       cards portfolio 
 --   PPLs increased to GBP2.2bn (2015: GBP1.7bn) primarily within Barclays 
       International wholesale portfolios. The increase was driven by 
       exposures within the Corporate and Investment Bank across a number 
       of industries 
 

Analysis of specific portfolios and asset types

This section provides an analysis of principal portfolios and businesses in the retail and wholesale segments. In particular, home loans, credit cards, overdrafts and unsecured loans are covered for retail segments. In addition, this section details exposures to UK commercial real estate.

Secured home loans

The UK home loans portfolio comprises first lien home loans and accounts for 98%(1) (2015: 98%) of the Group's core home loan balances and 91% (2015: GBP90%) of the Group's total home loan balances. Italy home loans accounts for 100% (2015: 91%) of the Group's Non-Core home loan balances and 7% (2015: 7%) of the Group's total home loan balances.

 
Home loans principal portfolios(2) 
                                                           Barclays UK 
                                                       -------------------- 
                                                           As at      As at 
                                                        31.12.16   31.12.15 
--------------------------------------------------     ---------  --------- 
Gross loans and advances (GBPm)                          129,136    127,750 
>90 day arrears, excluding recovery book 
 (%)                                                         0.2        0.2 
Non-performing proportion of outstanding 
 balances (%)                                                0.6        0.7 
Annualised gross charge-off rates (%)                        0.3        0.3 
Recovery book proportion of outstanding balances 
 (%)                                                         0.4        0.4 
Recovery book impairment coverage ratio (%)                  9.1       10.1 
 
 
 1   Remaining balance includes wealth portfolio. 
 2   Gross loans and advances include loans and advances to customers 
      and banks. Risk metrics based on exposures to customers only. 
 

Barclays UK: Portfolio performance remained steady reflecting the continuing low base rate environment, house price appreciation and steady economic conditions. Non-performing proportion of outstanding balances and recovery book impairment coverage reduced due to a reduction in repossession stock.

Within the UK home loans portfolio:

 
 --   owner-occupied interest-only home loans comprised 31% (2015: 32%) 
       of total balances. The average balance weighted LTV on these loans 
       reduced to 41.7% (2015: 44.7%) as house prices have improved across 
       core regions, and >90 day arrears excluding recovery book remained 
       steady at 0.2% (2015: 0.2%) 
 --   buy-to-let home loans comprised 9% (2015: 9% ) of total balances. 
       The average balance weighted LTV reduced to 52.6% (2015: 54.6%), 
       and >90 day arrears excluding recovery book reduced to 0.1% (2015: 
       0.2%) 
 

Credit cards and unsecured loans

The principal portfolios listed below accounted for 94% (2015: 92%) of the Group's total credit cards and unsecured loans.

 
Credit cards and unsecured loans Principal Portfolios 
                                             30 day      90 day 
                                           arrears,    arrears,                             Recovery          Recovery 
                                          excluding   excluding         Annualised   book proportion   book impairment 
                            Gross loans    recovery    recovery   gross charge-off    of outstanding          coverage 
                        and advances(1)        book        book              rates          balances             ratio 
As at 31 December 
 2016                              GBPm           %           %                  %                 %                 % 
---------------------  ----------------  ----------  ----------  -----------------  ----------------  ---------------- 
Barclays UK 
   UK cards(2)                   17,833         1.9         0.9                5.5               3.0              83.8 
   UK personal loans              6,076         2.1         0.9                3.1               4.7              77.2 
Barclays 
International 
   US cards(2)                   23,915         2.6         1.3                4.5               2.4              83.6 
   Barclays Partner 
    Finance                       4,041         1.5         0.6                2.5               2.6              81.5 
   Germany cards                  1,812         2.6         1.0                3.7               2.7              79.0 
As at 31 December 
 2015 
---------------------  ----------------  ----------  ----------  -----------------  ----------------  ---------------- 
 Barclays UK 
   UK cards(2)                   18,502         2.3         1.2                5.2               3.6              82.6 
   UK personal loans              5,476         1.9         0.8                3.0               7.5              73.9 
Barclays 
International 
   US cards(2)                   16,699         2.2         1.1                3.9               2.0              84.8 
   Barclays Partner 
    Finance(3)                    3,986         1.5         0.6                2.4               2.5              82.2 
   Germany cards                  1,419         2.3         1.0                3.8               2.7              81.2 
 
 
 1   Includes loans and advances to customers and banks. Risk metrics 
      based on exposures to customers. 
 2   For UK and US cards, outstanding recovery book balances for acquired 
      portfolios recognised at fair value (which have no related impairment 
      allowance) have been excluded from the recovery book impairment 
      coverage ratio. Losses have been recognised where related to additional 
      spend from acquired accounts in the period post acquisition. 
 3   2015 recovery book coverage ratio has been restated from 85.2% 
      to 82.2% to reflect more granular allocation of management adjustments 
      to the recovery book. 
 

UK cards: Gross loans and advances decreased 4% to GBP17.8bn primarily due to reduced loans and advances to banks. Annualised gross charge-off rates increased due to accelerated asset sales in the latter half of the year and accelerated charge off of informal arrangement stock. The recovery book impairment coverage ratio increased, reflecting the impact of increased flow into charge-off.

UK personal loans: 30 day arrears increased to 2.1% (2015: 1.9%) and 90 day arrears increased to 0.9% (2015: 0.8%) driven by portfolio growth and an increased level of operational delinquency from new customer acquisitions. The recovery book proportion of outstanding balances reduced to 4.7% (2015: 7.5%) due to an asset sale that also resulted in an increase in the recovery book impairment coverage ratio to 77.2% (2015: 73.9%).

US cards: Gross loans and advances increased 43% to GBP23.9bn due to portfolio growth, new acquisitions and the appreciation of USD against GBP. Increased arrears and charge-off rates were driven by a change in portfolio mix, volume growth and the appreciation of average USD against GBP.

Barclays Partner Finance: Portfolio arrears and charge-off rates remained broadly steady during 2016.

Germany cards: Loans and advances were 28% higher mainly due to a combination of the appreciation of EUR against GBP and portfolio growth. 90 day arrears and charge off rates remained stable, while the recovery book coverage ratio reduced slightly reflecting favourable recovery expectations.

Exposure to UK commercial real estate (CRE)

The UK CRE portfolio includes property investment, development, trading and house builders but excludes social housing and contractors.

 
UK CRE summary(1)                             As at 31.12.16  As at 31.12.15 
------------------------------------------    --------------  -------------- 
UK CRE loans and advances (GBPm)                      11,227          10,690 
Past due balances (GBPm)                                  83             152 
Balances past due as % of UK CRE balances 
 (%)                                                     0.7             1.4 
Impairment allowances (GBPm)                              58              79 
Past due coverage ratio (%)                             69.9            52.0 
Total collateral (GBPm)                               23,225          21,858 
 
For the year ended                                  31.12.16        31.12.15 
------------------------------------------    --------------  -------------- 
Impairment (credit)/charge (GBPm)                        (2)               3 
 
 
 1   Based on the most recent valuation assessment. 2015 year end numbers 
      have been restated following closer alignment of industry classifications 
      between corporate banking and business lending. 
 
 
Maturity analysis of exposure to UK CRE 
                                       Contractual maturity of UK CRE loans and 
                                               advances at amortised cost 
                --------------------------------------------------------------------------------------- 
                                                                           Over        Over 
                                                   Over        Over   two years        five 
                                             six months    one year     but not       years 
                                                but not     but not        more     but not 
                                  Not more         more        more        than        more                      Total 
                         Past         than         than        than        five        than        Over          loans 
                 due balances   six months     one year   two years       years   ten years   ten years   and advances 
                         GBPm         GBPm         GBPm        GBPm        GBPm        GBPm        GBPm           GBPm 
--------------  -------------  -----------  -----------  ----------  ----------  ----------  ----------  ------------- 
As at 31 
 December 2016             83          774          668       1,200       6,318         700       1,484         11,227 
 
As at 31 
 December 2015            152          784          744         929       5,678         852       1,551         10,690 
 

Total exposure to UK commercial real estate rose moderately from GBP10.7bn to GBP11.2bn primarily in medium term deals. Past due balances fell to GBP83m from GBP152m due to favourable recovery activity and selective approach to new deals in this sector.

 
UK CRE LTV analysis 
                                                  Balances as 
                              Balances         proportion of total 
                         ------------------  ---------------------- 
                         31.12.16  31.12.15    31.12.16    31.12.15 
                             GBPm      GBPm           %           % 
-----------------------  --------  --------  ----------  ---------- 
Group 
<=75%                       7,884     7,208          70          68 
>75% and <=100%               102       244           1           2 
>100% and <=125%               15       109           -           1 
>125%                          60        18           1           - 
Unassessed balances(1)      2,286     2,370          20          22 
Unsecured balances(2)         880       741           8           7 
-----------------------  --------  --------  ----------  ---------- 
Total                      11,227    10,690         100         100 
 
 
 1   Corporate banking balances under GBP1m. 
 2   Unsecured balances primarily relate to working capital facilities 
      agreed to CRE companies. 
 

Statement of Directors' Responsibilities

Each of the Directors (the names of whom are set out below) confirm that:

 
   --   to the best of their knowledge, the condensed consolidated financial 
         statements (set out on pages 51 to 55), which have been prepared 
         in accordance with the IFRSs as adopted by the European Union, 
         give a true and fair view of the assets, liabilities, financial 
         position and profit or loss of the Company and the undertakings 
         included in the consolidation taken as a whole. The condensed 
         consolidated financial statements should be read in conjunction 
         with the annual financial statements as included in the Annual 
         Report for the year ended 2016; and 
   --   to the best of their knowledge, the management information (set 
         out on pages 1 to 49) includes a fair review of the development 
         and performance of the business and the position of the Company 
         and the undertakings included in the consolidation taken as a 
         whole, together with a description of the principal risks and 
         uncertainties that they face. This management information should 
         be read in conjunction with the principal risks and uncertainties 
         included in the Annual Report for the year ended 2016. 
 

Signed on behalf of the Board by

 
 James E Staley             Tushar Morzaria 
  Group Chief Executive      Group Finance Director 
 

Barclays PLC Board of Directors:

 
 Chairman          Executive Directors                         Non-executive Directors 
  John McFarlane    James E Staley (Group Chief Executive)      Mike Ashley 
                    Tushar Morzaria (Group Finance Director)    Tim Breedon CBE 
                                                                Mary Francis 
                                                                Crawford Gillies 
                                                                Sir Gerry Grimstone 
                                                                Reuben Jeffery III 
                                                                Dambisa Moyo 
                                                                Diane de Saint Victor 
                                                                Diane Schueneman 
                                                                Stephen Thieke 
 

Condensed Consolidated Financial Statements

 
 Condensed Consolidated Income Statement (audited) 
                                                               Year ended  Year ended 
                                                                 31.12.16    31.12.15 
Continuing operations                                Notes(1)        GBPm        GBPm 
===================================================  ========  ==========  ========== 
Net interest income                                                10,537      10,608 
Net fee and commission income                                       6,768       6,859 
Net trading income                                                  2,768       3,426 
Net investment income                                               1,324       1,097 
Other income                                                           54          50 
===================================================  ========  ----------  ---------- 
Total income                                                       21,451      22,040 
Credit impairment charges and other provisions                    (2,373)     (1,762) 
===================================================  ========  ==========  ========== 
Net operating income                                               19,078      20,278 
 
Staff costs                                                       (9,423)     (8,853) 
Administration and general expenses                               (6,915)     (9,683) 
===================================================  ========  ==========  ========== 
Operating expenses                                               (16,338)    (18,536) 
 
Profit/(loss) on disposal of undertakings and 
 share of results of associates and joint ventures                    490       (596) 
===================================================  ========  ==========  ========== 
Profit before tax                                                   3,230       1,146 
Tax                                                         2       (993)     (1,149) 
===================================================  ========  ==========  ========== 
Profit/(loss) after tax in respect of continuing 
 operations                                                         2,237         (3) 
Profit after tax in respect of discontinued 
 operation                                                            591         626 
===================================================  ========  ==========  ========== 
Profit after tax                                                    2,828         623 
 
Attributable to: 
===================================================  ========  ==========  ========== 
Ordinary equity holders of the parent                               1,623       (394) 
Other equity holders                                       10         457         345 
===================================================  ========  ==========  ========== 
Total equity holders                                                2,080        (49) 
 
Profit attributable to non-controlling interests 
 in respect of continuing operations                        3         346         348 
Profit attributable to non-controlling interests 
 in respect of discontinued operation                       3         402         324 
===================================================  ========  ==========  ========== 
Profit after tax                                                    2,828         623 
 
Earnings per share 
===================================================  ========  ==========  ========== 
Basic earnings/(loss) per ordinary share(2)                 4        10.4       (1.9) 
Basic earnings/(loss) per ordinary share in 
 respect of continuing operations                                     9.3       (3.7) 
Basic earnings per ordinary share in respect 
 of discontinued operations                                           1.1         1.8 
Diluted earnings/(loss) per ordinary share(2)                        10.3       (1.9) 
 
 
 1   For notes to the Financial Statements see pages 56 to 64. 
 2   The profit after tax attributable to other equity holders of GBP457m 
      (2015: GBP345m) is offset by a tax credit recorded in reserves 
      of GBP128m (2015: GBP70m). The net amount of GBP329m (2015: GBP275m), 
      along with NCI, is deducted from profit after tax in order to calculate 
      earnings per share. 
 
 
Condensed consolidated statement of comprehensive 
 income 
                                                                  Year ended  Year ended 
                                                                    31.12.16    31.12.15 
Continuing operations                                   Notes(1)        GBPm        GBPm 
======================================================  ========  ==========  ========== 
Profit after tax                                                       2,828         623 
Profit/(loss) after tax in respect of continuing 
 operations                                                            2,237         (3) 
Profit after tax in respect of discontinued operation                    591         626 
Other comprehensive income/(loss) that may be 
 recycled to profit or loss: 
======================================================  ========  ==========  ========== 
Currency translation reserve                               11          3,024         748 
Available for sale reserve                                 11          (387)       (229) 
Cash flow hedge reserve                                    11            798       (493) 
Other                                                                     13          20 
======================================================  ========  ==========  ========== 
Total comprehensive income that may be recycled 
 to profit or loss                                                     3,448          46 
 
Other comprehensive (loss)/income not recycled 
 to profit or loss: 
======================================================  ========  ==========  ========== 
Retirement benefit remeasurements                                      (980)         916 
 
Other comprehensive income for the period                              2,468         962 
Total comprehensive income for the year, net 
 of tax from continuing operations                                     4,705         959 
Total comprehensive income/(loss) for the year, 
 net of tax from discontinued operation                                2,111       (722) 
======================================================  ========  ==========  ========== 
Total comprehensive income for the period                              6,816         237 
 
Attributable to: 
======================================================  ========  ==========  ========== 
Equity holders of the parent                                           5,233          45 
Non-controlling interests                                              1,583         192 
======================================================  ========  ==========  ========== 
Total comprehensive income for the period                              6,816         237 
 
 
 1   For notes to the Financial Statements see pages 56 to 64. 
 
 
Condensed consolidated balance sheet (audited) 
                                                                   As at      As at 
                                                                31.12.16   31.12.15 
Assets                                               Notes(1)       GBPm       GBPm 
===================================================  ========  =========  ========= 
Cash and balances at central banks                               102,353     49,711 
Items in the course of collection from other 
 banks                                                             1,467      1,011 
Trading portfolio assets                                          80,240     77,348 
Financial assets designated at fair value                         78,608     76,830 
Derivative financial instruments                                 346,626    327,709 
Financial investments                                             63,317     90,267 
Loans and advances to banks                                       43,251     41,349 
Loans and advances to customers                                  392,784    399,217 
Reverse repurchase agreements and other similar 
 secured lending                                                  13,454     28,187 
Current and deferred tax assets                                    5,430      4,910 
Prepayments, accrued income and other assets                       2,893      3,010 
Investments in associates and joint ventures                         684        573 
Goodwill and intangible assets                                     7,726      8,222 
Property, plant and equipment                                      2,825      3,468 
Retirement benefit assets                               8             14        836 
Assets included in disposal groups classified 
 as held for sale                                       1         71,454      7,364 
===================================================  ========  =========  ========= 
Total assets                                                   1,213,126  1,120,012 
 
Liabilities 
===================================================  ========  =========  ========= 
Deposits from banks                                               48,214     47,080 
Items in the course of collection due to other 
 banks                                                               636      1,013 
Customer accounts                                                423,178    418,242 
Repurchase agreements and other similar secured 
 borrowing                                                        19,760     25,035 
Trading portfolio liabilities                                     34,687     33,967 
Financial liabilities designated at fair value                    96,031     91,745 
Derivative financial instruments                                 340,487    324,252 
Debt securities in issue(2)                                       75,932     69,150 
Subordinated liabilities                                          23,383     21,467 
Accruals, deferred income and other liabilities                    8,871     10,610 
Current and deferred tax liabilities                                 766      1,025 
Provisions                                              7          4,134      4,142 
Retirement benefit liabilities                          8            390        423 
Liabilities included in disposal groups classified 
 as held for sale                                       1         65,292      5,997 
===================================================  ========  =========  ========= 
Total liabilities                                              1,141,761  1,054,148 
 
Equity 
===================================================  ========  =========  ========= 
Called up share capital and share premium               9         21,842     21,586 
Other reserves                                          11         6,051      1,898 
Retained earnings                                                 30,531     31,021 
===================================================  ========  =========  ========= 
Shareholders' equity attributable to ordinary 
 shareholders of the parent                                       58,424     54,505 
Other equity instruments                                10         6,449      5,305 
===================================================  ========  =========  ========= 
Total equity excluding non-controlling interests                  64,873     59,810 
Non-controlling interests                               3          6,492      6,054 
===================================================  ========  =========  ========= 
Total equity                                                      71,365     65,864 
 
 
 1   For notes to the Financial Statements see pages 56 to 64. 
 2   Debt securities in issue include covered bonds of GBP12.4bn (2015: 
      GBP12.3bn). 
 
 
Condensed consolidated statement of changes in equity (audited) 
 
                                   Called 
                                 up share 
                                  capital            Other 
                                and share           equity         Other   Retained           Non-controlling    Total 
                               premium(1)   instruments(1)   reserves(1)   earnings    Total     interests(2)   equity 
Year ended 31.12.16                  GBPm             GBPm          GBPm       GBPm     GBPm             GBPm     GBPm 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance as at 1 January 
 2016                              21,586            5,305         1,898     31,021   59,810            6,054   65,864 
Profit after tax                        -              457             -      1,434    1,891              346    2,237 
Other comprehensive profit 
 after tax for the period               -                -         3,433      (968)    2,465                3    2,468 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 net of tax from continuing 
 operations                             -              457         3,433        466    4,356              349    4,705 
Total comprehensive income 
 net of tax from 
 discontinued 
 operation                              -                -           694        183      877            1,234    2,111 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 for the year                           -              457         4,127        649    5,233            1,583    6,816 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Issue of shares                       256                -             -        668      924                -      924 
Issue and exchange of 
 equity instruments                     -            1,132             -          -    1,132                -    1,132 
Dividends                               -                -             -      (757)    (757)            (575)  (1,332) 
Coupons paid on other 
 equity instruments                     -            (457)             -        128    (329)                -    (329) 
Redemption of preference 
 shares                                 -                -             -      (417)    (417)          (1,170)  (1,587) 
Treasury shares                         -                -            26      (415)    (389)                -    (389) 
Net equity impact of partial 
 BAGL disposal                          -                -             -      (349)    (349)              601      252 
Other movements                         -               12             -          3       15              (1)       14 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance as at 31 December 
 2016                              21,842            6,449         6,051     30,531   64,873            6,492   71,365 
 
 
Year ended 31.12.15 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance as at 1 January 
 2015                              20,809            4,322         2,724     31,712   59,567            6,391   65,958 
Profit after tax                        -              345             -      (696)    (351)              348      (3) 
Other comprehensive profit 
 after tax for the period               -                -            25        936      961                1      962 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 net of tax from continuing 
 operations                             -              345            25        240      610              349      959 
Total comprehensive income 
 net of tax from 
 discontinued 
 operation                              -                -         (867)        302    (565)            (157)    (722) 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Total comprehensive income 
 for the year                           -              345         (842)        542       45              192      237 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Issue of shares                       777                -             -        571    1,348                -    1,348 
Issue and exchange of 
 equity instruments                     -              995             -          -      995                -      995 
Dividends                               -                -             -    (1,081)  (1,081)            (552)  (1,633) 
Coupons paid on other 
 equity instruments                     -            (345)             -         70    (275)                -    (275) 
Treasury shares                         -                -            16      (755)    (739)                -    (739) 
Other movements                         -             (12)             -       (38)     (50)               23     (27) 
============================  ===========  ===============  ============  =========  =======  ===============  ======= 
Balance as at 31 December 
 2015                              21,586            5,305         1,898     31,021   59,810            6,054   65,864 
 
 
 1   Details of share capital, other equity instruments and other reserves 
      are shown on pages 63 and 64. 
 2   Details of non-controlling interests are shown on page 59. 
 
 
Condensed consolidated cash flow statement (audited) 
                                                         Year ended  Year ended 
                                                           31.12.16    31.12.15 
                                                               GBPm        GBPm 
======================================================   ==========  ========== 
Profit before tax                                             3,230       1,146 
Adjustment for non-cash items                              (15,355)       7,060 
Changes in operating assets and liabilities                  24,191       8,798 
Corporate income tax paid                                     (780)     (1,670) 
=======================================================  ==========  ========== 
Net cash from operating activities                           11,286      15,334 
Net cash from investing activities                           36,707     (6,551) 
Net cash from financing activities                          (1,317)       (574) 
Net cash from discontinued operations                           405     (1,821) 
Effect of exchange rates on cash and cash equivalents        10,473       1,689 
=======================================================  ==========  ========== 
Net increase in cash and cash equivalents                    57,554       8,077 
Cash and cash equivalents at beginning of the period         86,556      78,479 
=======================================================  ==========  ========== 
Cash and cash equivalents at end of the period              144,110      86,556 
 

Financial Statement Notes

1. Assets included in disposal groups classified as held for sale and associated liabilities

On 1 March 2016, Barclays announced its intention to reduce the Group's 62.3% interest in BAGL. This reduction is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, for which approval was granted by shareholders at the Group's general meeting held on 28 April 2016. On 5 May 2016 Barclays sold 12.2% of the Group's interest in BAGL resulting in a transfer to non-controlling interests of GBP601m. Following this sale, Barclays' interest represents 50.1% of BAGL's share capital. The BAGL disposal group includes all assets and liabilities of BAGL and its subsidiaries as well as Group balances associated with BAGL and expected contributions that will form part of the sale.

No impairment for BAGL has been recognised under IFRS 5 as at 31 December 2016. Impairment under IFRS 5 is calculated as the difference between fair value less disposal costs and the carrying value of the disposal group. The fair value is determined by reference to the quoted market price for BAGL and the foreign exchange rate for ZAR/GBP as at 31 December 2016, less the expected contributions on page 57. The fair value less disposal costs and expected contributions exceeds the net asset value at 31 December 2016.

Barclays continues to explore potential options for further disposal of its shares in BAGL during the course of 2017.

 
Assets included in disposal groups classified as 
 held for sale 
                                            BAGL  Other   Total  Total 
                                            2016   2016    2016   2015 
                                            GBPm   GBPm    GBPm   GBPm 
                                          ======  =====  ======  ===== 
Cash and balances at central 
 banks                                     2,689    241   2,930     21 
Items in the course of collection 
 from other banks                            549     21     570     24 
Trading portfolio assets                   3,044     40   3,084      - 
Financial assets designated at 
 fair value                                5,546  1,438   6,984    696 
Derivative financial instruments           1,992      -   1,992      - 
Financial investments                      4,995  2,742   7,737  1,230 
Loans and advances to banks                1,184    482   1,666     74 
Loans and advances to customers           41,793  1,711  43,504  5,513 
Prepayments, accrued income and 
 other assets                                637     59     696     47 
Investments in associates and 
 joint ventures                               63     24      87     10 
Property, plant and equipment                902     52     954    128 
Goodwill                                     965     32     997      - 
Intangible assets                            554     16     570     43 
Current and deferred tax assets              124     25     149     22 
Retirement benefit assets                     33      -      33      - 
========================================                         ===== 
Total                                     65,070  6,883  71,953  7,808 
Balance of impairment unallocated 
 under IFRS 5                                     (499)   (499)  (444) 
========================================                         ===== 
Total assets classified as held 
 for sale                                 65,070  6,384  71,454  7,364 
 
Liabilities included in disposal groups classified 
 as held for sale 
                                            BAGL  Other   Total  Total 
                                            2016   2016    2016   2015 
                                            GBPm   GBPm    GBPm   GBPm 
                                          ======  =====  ======  ===== 
Deposits from banks                        2,113     36   2,149      - 
Items in the course of collection 
 due to banks                                350     23     373     74 
Customer accounts                         39,331  3,100  42,431  4,000 
Repurchase agreements and other 
 similar secured borrowing                   597      -     597      - 
Trading portfolio liabilities                388      -     388      - 
Financial liabilities designated 
 at fair value                             3,748  3,577   7,325    346 
Derivative financial instruments           1,610      1   1,611      3 
Debt securities in issue                   7,997      -   7,997  1,474 
Subordinated liabilities                     934      -     934      - 
Accruals, deferred income and 
 other liabilities                         1,061    119   1,180     39 
Provisions                                    52     51     103     34 
Current and deferred tax liabilities         154      8     162    (6) 
Retirement benefit liabilities                26     16      42     33 
========================================                         ===== 
Total liabilities classified 
 as held for sale                         58,361  6,931  65,292  5,997 
 
Net assets/(liabilities) classified 
 as held for sale(1)                       6,709  (547)   6,162  1,367 
Expected contributions to BAGL(2,3)          866      -     866      - 
                                          ======  =====          ===== 
Disposal group post contribution           7,575  (547)   7,028  1,367 
 
 
 1   The carrying value of the disposal group is stated after the elimination 
      of internal balances between Barclays and BAGL of GBP595m. Internal 
      balances have been considered in determining the carrying value 
      of BAGL (of GBP7.3bn before the planned contributions in respect 
      of BAGL) for the purposes of measuring the disposal group at the 
      lower of carrying amount and fair value less costs to sell. 
 2   In December 2016, Barclays finalised proposals regarding planned 
      contributions to the BAGL group relating to the reimbursement of 
      certain expenses as well as contributions for investment to support 
      separation activities. The cash and cash equivalents to make these 
      planned contributions is included within the perimeter of the disposal 
      group, also for the purposes of measuring the disposal group at 
      the lower of carrying amount and fair value less costs to sell. 
      The planned contributions are reported within Cash and balances 
      at central banks in the Group's consolidated balance sheet. 
 3   In December 2016, Barclays reimbursed BAGL for expenses incurred 
      for an amount of GBP28m. This amount is excluded from the proposed 
      overall potential reimbursement and contribution figure of GBP866m. 
 

The BAGL disposal group meets the requirements for presentation as a discontinued operation. As such, the results, which have been presented as the profit after tax and non-controlling interest in respect of the discontinued operation on the face of the Group income statement, are analysed in the income statement below.

 
BAGL group income statement 
                                                        As at      As at 
                                                     31.12.16   31.12.15 
For the year ended 31 December                           GBPm       GBPm 
                                                    =========  ========= 
Net interest income                                     2,169      1,950 
Net fee and commission income                           1,072      1,033 
Net trading income                                        281        197 
Net investment income                                      45         41 
Other income                                              179        193 
                                                               ========= 
Total income                                            3,746      3,414 
Credit impairment charges and other provisions          (445)      (353) 
                                                               ========= 
Net operating income                                    3,301      3,061 
Staff costs                                           (1,186)    (1,107) 
Administration and general expenses                     (653)      (545) 
Depreciation of property, plant and equipment           (513)      (442) 
Amortisation of intangible assets                        (58)       (47) 
                                                               ========= 
Operating expenses                                    (2,410)    (2,141) 
Share of post-tax results of associates and joint 
 ventures                                                   6          7 
Profit before tax                                         897        927 
Taxation                                                (306)      (301) 
                                                               ========= 
Profit after tax                                          591        626 
 
Attributable to: 
Equity holders of the parent                              189        302 
Non-controlling interests                                 402        324 
                                                               ========= 
Profit after tax                                          591        626 
 
 
Other comprehensive income relating to discontinued 
 operations is as follows: 
 
                                                            2016     2015 
For the year ended 31 December                              GBPm     GBPm 
                                                           =====  ======= 
Available for sale assets                                    (9)     (22) 
Currency translation reserves                              1,451  (1,223) 
Cash flow hedge reserves                                      89    (101) 
                                                                  ======= 
Other comprehensive income, net of tax from discontinued 
 operations                                                1,531  (1,346) 
 
The cash flows attributed to the discontinued operations 
 are as follows: 
                                                            2016     2015 
For the year ended 31 December                              GBPm     GBPm 
Net cash flows from operating activities                   1,164      794 
Net cash flows from investing activities                   (691)  (1,883) 
Net cash flows from financing activities                   (105)      133 
Effect of exchange rates on cash and cash equivalents         37    (865) 
                                                                  ======= 
Net increase/(decrease) in cash and cash equivalents         405  (1,821) 
 
   2.   Tax 

The 2016 tax charge of GBP993m (2015: GBP1,149m), represented an effective tax rate of 30.7% (2015: 100.3%). The effective tax rate is higher than the UK statutory rate of 20% (2015: 20.25%) primarily due to profits earned outside the UK being taxed at higher local statutory tax rates. In addition the effective tax rate is affected by provisions for UK customer redress being non-deductible for tax purposes, non-creditable taxes and non-deductible expenses including UK bank levy. These factors, which have each increased the effective tax rate, are partially offset by the impact of non-taxable gains and income, including those arising from divestments, and adjustments in respect of prior years.

The deferred tax asset of GBP4,869m (2015: GBP4,495m) mainly relates to amounts in the US.

 
                                              Assets                       Liabilities 
                                  As at 31.12.16  As at 31.12.15  As at 31.12.16  As at 31.12.15 
Current and deferred tax assets             GBPm            GBPm            GBPm            GBPm 
 and liabilities 
Current tax                                  561             415           (737)           (903) 
Deferred tax                               4,869           4,495            (29)           (122) 
Total                                      5,430           4,910           (766)         (1,025) 
 
 
                                                    As at 31.12.16  As at 31.12.15 
Deferred tax assets and liabilities                           GBPm            GBPm 
Intermediate Holding Company (IHC) - US tax group            2,207           2,049 
Barclays Bank PLC (US branch) - US tax group                 1,766           1,569 
Barclays PLC - UK tax group                                    575             411 
Other                                                          321             466 
Deferred tax asset                                           4,869           4,495 
Deferred tax liability                                        (29)           (122) 
Net deferred tax                                             4,840           4,373 
 
Analysis of net deferred tax 
Temporary differences                                        4,337           3,471 
Tax losses                                                     503             902 
Net deferred tax                                             4,840           4,373 
 
3. Non-controlling interests 
 
 
                                   Profit attributable     Equity attributable 
                                    to non-controlling      to non-controlling 
                                         interest                interest 
                                  Year ended  Year ended  Year ended  Year ended 
                                    31.12.16    31.12.15    31.12.16    31.12.15 
                                        GBPm        GBPm        GBPm        GBPm 
Barclays Bank PLC Issued: 
- Preference shares                      340         343       2,698       3,654 
- Upper Tier 2 instruments                 3           2         272         486 
Barclays Africa Group Limited            402         324       3,507       1,902 
Other non-controlling interests            3           3          15          12 
Total                                    748         672       6,492       6,054 
 

Equity attributable to non-controlling interests increased by GBP438m to GBP6,492m in December 2016 driven by the sale of 12.2% of the Group's stake in BAGL increasing the non-controlling interest from 37.6% to 49.9% and the appreciation of ZAR against GBP. These increases were partially offset by the redemption of preference shares issued by Barclays Bank PLC.

    4.   Earnings per share 
 
                                                                As at     As at 
                                                             31.12.16  31.12.15 
                                                                 GBPm      GBPm 
                                                             ========  ======== 
Profit/(loss) attributable to ordinary equity holders 
 of the parent from continuing and discontinued operations      1,623     (394) 
Tax credit on profit after tax attributable to other 
 equity holders                                                   128        70 
Total profit/(loss) attributable to ordinary equity 
 holders of the parent from continuing and discontinued 
 operations                                                     1,751     (324) 
Continuing operations 
Profit/(loss) attributable to ordinary equity holders 
 of the parent from continuing operations                       1,434     (696) 
Tax credit on profit after tax attributable to other 
 equity holders                                                   128        70 
Profit/(loss) attributable to equity holders of 
 the parent from continuing operations                          1,562     (626) 
Discontinued operation 
Profit attributable to ordinary equity holders of 
 the parent from discontinued operation                           189       302 
Dilutive impact of convertible options from discontinued 
 operation                                                        (1)         - 
Profit attributable to equity holders of the parent 
 from discontinued operations including dilutive 
 impact on convertible options                                    188       302 
Profit/(loss) attributable to equity holders of 
 the parent from continuing and discontinued operations 
 including dilutive impact on convertible options               1,750     (324) 
 
                                                                As at     As at 
                                                             31.12.16  31.12.15 
                                                                 GBPm      GBPm 
                                                             ========  ======== 
Basic weighted average number of shares in issue               16,860    16,687 
Number of potential ordinary shares                               184       367 
Diluted weighted average number of shares                      17,044    17,054 
                                                                    p         p 
Basic earnings per ordinary share(1)                             10.4     (1.9) 
Basic earnings per ordinary share from continuing 
 operations(1)                                                    9.3     (3.7) 
Basic earnings per ordinary share from discontinued 
 operation                                                        1.1       1.8 
Diluted earnings per ordinary share(1)                           10.3     (1.9) 
Diluted earnings per ordinary share from continuing 
 operations(1)                                                    9.2     (3.7) 
Diluted earnings per ordinary share from discontinued 
 operation                                                        1.1       1.8 
 
 
 1   The profit after tax attributable to other equity holders of GBP457m 
      (2015: GBP345m) is offset by a tax credit recorded in reserves 
      of GBP128m (2015: GBP70m). The net amount of GBP329m (2015: GBP275m), 
      along with NCI, is deducted from profit after tax in order to calculate 
      earnings per share. 
 
   5.   Dividends on Ordinary Shares 

It is Barclays' policy to declare and pay dividends on a semi-annual basis. A final dividend in respect of 2016 of 2.0p per ordinary share will be paid on 5 April 2017 to shareholders on the Share Register on 3 March 2017 and accounted for as a distribution of retained earnings in the year ending 31 December 2017. The financial statements for 2016 include the following dividends paid during the year:

 
                                     Year ended 31.12.16    Year ended 31.12.15 
                                        Per share   Total      Per share   Total 
Dividends paid during the period                p    GBPm              p    GBPm 
Final dividend paid during period             3.5     588            3.5     578 
Interim dividends paid during 
 period                                       1.0     169            3.0     503 
Total                                         4.5     757            6.5   1,081 
 
   6.   Fair value of assets and liabilities 

The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification:

 
Assets and liabilities held at 
 fair value                                          Valuation technique using 
                                                                        Significant 
                                      Quoted market      Observable    unobservable 
                                      prices (Level   inputs (Level   inputs (Level 
                                                 1)              2)              3)      Total 
                                               GBPm            GBPm            GBPm       GBPm 
As at 31 December 2016 
Trading portfolio assets                     41,550          36,625           2,065     80,240 
Financial assets designated at 
 fair value                                   4,031          64,630           9,947     78,608 
Derivative financial assets                   5,261         332,819           8,546    346,626 
Available for sale investments               21,218          36,551             372     58,141 
Investment property                               -               -              81         81 
Assets included in disposal groups 
 classified as held for sale(1)               6,754           8,511           6,009     21,274 
Total assets                                 78,814         479,136          27,020    584,970 
 
Trading portfolio liabilities              (20,205)        (14,475)             (7)   (34,687) 
Financial liabilities designated 
 at fair value                                 (70)        (95,121)           (840)   (96,031) 
Derivative financial liabilities            (5,051)       (328,265)         (7,171)  (340,487) 
Liabilities included in disposal 
 groups classified as held for 
 sale(1)                                      (397)         (5,224)         (6,201)   (11,822) 
Total liabilities                          (25,723)       (443,085)        (14,219)  (483,027) 
 
As at 31 December 2015 
Trading portfolio assets                     36,676          35,725           4,947     77,348 
Financial assets designated at 
 fair value                                   6,163          52,909          17,758     76,830 
Derivative financial assets                   6,342         315,949           5,418    327,709 
Available for sale investments               42,552          46,693           1,022     90,267 
Investment property                               -               -             140        140 
Assets included in disposal groups 
 classified as held for sale(1)                  26               8           7,330      7,364 
Total assets                                 91,759         451,284          36,615    579,658 
 
Trading portfolio liabilities              (23,978)         (9,989)               -   (33,967) 
Financial liabilities designated 
 at fair value                                (240)        (90,203)         (1,302)   (91,745) 
Derivative financial liabilities            (5,450)       (314,033)         (4,769)  (324,252) 
Liabilities included in disposal 
 groups classified as held for 
 sale(1)                                    (1,024)           (802)         (4,171)    (5,997) 
Total liabilities                          (30,692)       (415,027)        (10,242)  (455,961) 
 
 
 1   Disposal groups held for sale and measured at fair value less cost 
      to sell are non-recurring fair value instruments and therefore 
      included in the fair value table. For disposal groups that are 
      measured at the carrying amount, only items measured at fair value 
      are included in the table above. 
 
   7.   Provisions 
 
                                                               As at     As at 
                                                            31.12.16  31.12.15 
                                                                GBPm      GBPm 
UK customer redress: 
Payment Protection Insurance redress                           1,979     2,106 
Other customer redress                                           712       896 
Legal, competition & regulatory matters                          455       489 
Redundancy and restructuring                                     206       186 
Undrawn contractually committed facilities and guarantees         67        60 
Onerous contracts                                                385       141 
Sundry provisions                                                330       264 
Total                                                          4,134     4,142 
 

Payment Protection Insurance Redress

As at 31 December 2016, Barclays had recognised cumulative provisions totalling GBP8.44bn (31 December 2015: GBP7.44bn) against the cost of Payment Protection Insurance (PPI) redress and associated processing costs with utilisation of GBP6.46bn (31 December 2015: GBP5.33bn), leaving a residual provision of GBP1.98bn (31 December 2015: GBP2.11bn).

Through to 31 December 2016, 1.8m (31 December 2015: 1.6m) customer initiated claims(1) had been received and processed. The volume of claims received during 2016 decreased 8%(2) from 2015. This rate of decline was slower than previously recorded but in line with expectations.

The current provision reflects the estimate of costs of PPI redress primarily relating to customer initiated complaints and on-going remediation programmes. This also includes liabilities managed by third parties arising from portfolios previously sold where Barclays remains liable.

As at 31 December 2016, the provision of GBP1.98bn represents Barclays' best estimate of expected PPI redress reflecting the revised complaints deadline proposed in Financial Conduct Authority (FCA) consultation paper 16/20 issued on 2 August 2016. However, it is possible the eventual outcome may differ from the current estimate. We will continue to review the adequacy of provision level in respect of the on-going level of complaints.

The PPI provision is calculated using a number of key assumptions which continue to involve significant management judgement and modelling:

 
 --   Customer initiated claim volumes - claims received but not yet 
       processed plus an estimate of future claims initiated by customers 
       where the volume is anticipated to cease after H119 
 --   Average claim redress - the expected average payment to customers 
       for upheld claims based on the type and age of the policy/policies 
 --   Processing cost per claim - the cost to Barclays of assessing and 
       processing each valid claim 
 

These assumptions remain subjective, in particular due to the uncertainty associated with future claims levels, which include complaints driven by Claims Management Company (CMC) activity.

The current provision represents Barclays' revised best estimate of all future expected costs of PPI redress based on information available at year end.

The following table details actual data through to 31 December 2016, key forecast assumptions used in the provision calculation and a sensitivity analysis illustrating the impact on the provision if the future expected assumptions prove too high or too low.

 
 1   Total claims received directly by Barclays to date, including those 
      received via CMCs but excluding those for which no PPI policy exists 
      and excluding responses to proactive mailing. 
 2   Gross volumes received including no PPI. 
 
 
                                                                             Sensitivity 
                                        Cumulative                    analysis increase/ 
                                            actual                              decrease 
Assumption                             to 31.12.16  Future expected         in provision 
Customer initiated claims received 
 and processed(1)                           1,840k             650k        50k = GBP100m 
Average uphold rate per claim(2)               87%              83%          1% = GBP15m 
Average redress per valid claim(3)        GBP2,137         GBP1,950      GBP100 = GBP74m 
Processing cost per claim(4)                GBP410           GBP350         50k = GBP17m 
 
 
 1   Total claims received directly by Barclays to date, including those 
      received via CMCs but excluding those for which no PPI policy exists 
      and excluding responses to proactive mailing. 
 2   Average uphold rate per customer initiated claims received directly 
      by Barclays and proactive mailings, excluding those for which no 
      PPI policy exists. 
 3   Average redress stated on a per policy basis for future customer 
      initiated complaints received directly by Barclays and proactive 
      mailings. 
 4   Processing cost per claim on an upheld complaints basis, includes 
      direct staff costs and associated overheads. 
 
   8.   Retirement Benefits 

As at 31 December 2016, the Group's IAS 19 (Revised) pension deficit across all schemes was GBP0.4bn (2015: GBP0.4bn surplus). The UK Retirement Fund (UKRF), which is the Group's main scheme, had a deficit of GBP0.03bn (2015: GBP0.8bn surplus).

The movement for the UKRF is mainly due to a decrease in discount rate to 2.62% (2015: 3.82%), and an increase in inflation rate to 3.35% (2015: 3.05%) partially offset by deficit contributions, updated mortality assumptions based on scheme experience, and higher than assumed returns on plan assets.

The triennial funding valuation of the UKRF is currently underway with an effective date of 30 September 2016. Contribution requirements, including any deficit recovery plans, are expected to be agreed between the Bank and Trustee by the end of 2017. In these discussions, the Bank and the Trustee are taking into account the impact of the Structural Reform Programme.

The 2013 valuation was completed in 2014 with an effective date of 30 September 2013. The funding deficit at that date was calculated to be GBP3.6bn. Under the agreed recovery plan, deficit contributions of GBP300m were paid in 2016, with further deficit contributions of GBP740m payable each year between 2017 and 2021. Up to GBP500m of the 2021 deficit contributions is payable in 2017 if the funding deficit remains over GBP2.6bn. These deficit contributions are in addition to the regular contributions to meet the Group's share of the cost of benefits accruing over each year.

In non-valuation years the Scheme Actuary prepares an annual update of the funding position. The latest annual update was carried out as at 30 September 2015 and showed a deficit of GBP6.0bn.

9. Called Up Share Capital

Called up share capital comprises 16,963m (2015: 16,805m) ordinary shares of 25p each. The increase was due to the issuance of 116m (2015: 253m) shares under employee share schemes and a further 42m (2015: 54m) issued as part of the Barclays PLC Scrip Dividend Programme.

10. Other Equity Instruments

Other Equity Instruments of GBP6,449m (2015: GBP5,305m) include AT1 securities issued by Barclays PLC. In 2016 there was one issuance of CRD IV end point qualifying AT1 capital instruments, with a principal amount of GBP1.1bn (2015: GBP1.0bn)

The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under CRD IV. All AT1 securities will be converted into ordinary shares of Barclays PLC, at a pre-determined price, should the fully loaded CET1 ratio of Barclays PLC fall below 7.0%.

11. Other Reserves

 
                                   As at     As at 
                                31.12.16  31.12.15 
                                    GBPm      GBPm 
Currency translation reserves      3,051     (623) 
Available for sale reserves         (74)       317 
Cash flow hedges reserves          2,105     1,261 
Other                                969       943 
Total other reserves               6,051     1,898 
 

Currency Translation Reserve

As at 31 December 2016 there was a credit balance of GBP3,051m (2015: GBP623m debit) in the currency translation reserve. The increase in the credit balance of GBP3,674m (2015: GBP41m debit) principally reflected the strengthening of all major currencies against GBP. The currency translation reserve movement associated with non-controlling interests was a GBP801m credit (2015: GBP435m debit) reflecting the strengthening of ZAR against GBP.

During the year a GBP101m net gain (2015: GBP65m net loss) from recycling of the currency translation reserve was recognised in the income statement.

Available for Sale Reserve

As at 31 December 2016 there was a debit balance of GBP74m (2015: GBP317m credit) in the available for sale reserve. The decrease of GBP391m (2015: GBP245m decrease) was primarily due to a GBP2,192m gain from changes in fair value of Government Bonds, predominantly held in the liquidity pool. This was more than offset by GBP1,677m of losses from related hedging and GBP912m of net gains transferred to net profit, mainly due to GBP615m sale of Visa Europe Limited by Visa Inc. A tax charge of GBP28m was recognised in the period relating to these items.

Cash Flow Hedging Reserve

As at 31 December 2016, there was a credit balance of GBP2,105m (2015: GBP1,261m credit) in the cash flow hedging reserve. The increase of GBP844m (2015: GBP556m decrease) principally reflected a GBP1,595m increase in the fair value of interest rate swaps held for hedging purposes as interest rate forward curves decreased, partially offset by GBP450m gains recycled to the income statement in line with when the hedged item affects profit or loss and tax charge of GBP326m. This tax charge reflects the introduction of the new surcharge of 8% that applies to bank's UK profits with effect from January 2016, in addition to the standard UK corporation tax of 20%.

Other Reserves and Treasury Shares

As at 31 December 2016 there was a credit balance of GBP969m (2015: GBP943m credit) in other reserves and treasury shares. The increase principally reflected GBP166m (2015: GBP618m) transferred from treasury shares reflecting the vesting of deferred share based payments, partially offset by GBP140m (2015: GBP602m) net purchases of treasury shares held for the purposes of employee share schemes.

Appendix: Non-IFRS performance measures

The Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the business' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of Barclays PLC and its subsidiaries (the Group). They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management.

Non-IFRS and IFRS performance measures may also be presented on an excluding notable items basis. Notable items are considered to be significant items impacting comparability of performance.

Any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well.

Non-IFRS performance measures glossary

 
Measure                  Definition 
Barclays Core            Barclays Core includes Barclays UK, Barclays International 
                          and Head Office. A reconciliation of Core statutory 
                          results and results excluding notable items is included 
                          on page 67. 
Return on average        Statutory profit after tax attributable to ordinary 
 tangible shareholders'   shareholders, including an adjustment for the tax credit 
 equity                   in reserves in respect of other equity instruments, 
                          as a proportion of average shareholders' equity excluding 
                          non-controlling interests and other equity instruments 
                          adjusted for the deduction of intangible assets and 
                          goodwill. The components of the calculation have been 
                          included on pages 72 and 73. 
Return on average        Statutory profit after tax attributable to ordinary 
 allocated tangible       shareholders, including an adjustment for the tax credit 
 shareholders'            in reserves in respect of other equity instruments, 
 equity                   as a proportion of average allocated tangible equity. 
                          The components of the calculation have been included 
                          on pages 72 and 73. 
Period end allocated     Allocated tangible equity is calculated as 11.5% of 
 tangible equity          CRD IV fully loaded risk weighted assets for each business, 
                          adjusted for CRD IV fully loaded capital deductions, 
                          excluding goodwill and intangible assets, reflecting 
                          the assumptions the Group uses for capital planning 
                          purposes. Head Office tangible equity represents the 
                          difference between the Group's tangible equity and 
                          the amounts allocated to businesses. 
Average tangible         Calculated as the average of the monthly period end 
 shareholders'            tangible shareholders' equity during the period. 
 equity 
 
Average allocated        Calculated as the average of the monthly period end 
 tangible shareholders'   allocated tangible shareholders' equity during the 
 equity                   period. 
Cost: income             Total operating expenses divided by total income. 
 ratio 
Basic earnings/(loss)    The calculation is consistent with the IFRS measure 
 per share contribution   and applied to the Barclays Core and Non-Core: statutory 
 (Barclays Core           profit after tax attributable to ordinary shareholders, 
 and Non-Core)            including an adjustment for the tax credit in reserves 
                          in respect of other equity instruments, divided by 
                          the Group basic weighted average number of shares. 
                          The components of the calculation have been included 
                          on page 74. 
 

Non-IFRS performance measures glossary (continued)

 
Measure           Definition 
Loan loss rate    Is quoted in basis points and represents total loan 
                   impairment divided by gross loans and advances to customers 
                   and banks held at amortised cost at the balance sheet 
                   date. 
Loan: deposit     Loans and advances divided by customer accounts calculated 
 ratio             for Barclays UK, Barclays International and Non-Core, 
                   excluding investment banking businesses. This excludes 
                   particular liabilities issued by the retail businesses 
                   that have characteristics comparable to retail deposits 
                   (for example structured Certificates of Deposit and 
                   retail bonds), which are included within debt securities 
                   in issue. 
Notable items     Notable items are considered to be significant items 
                   impacting comparability of performance and are shown 
                   for each of the business segments. A reconciliation 
                   between statutory results and results excluding notable 
                   items is included on pages 68 to 71 including relevant 
                   performance measures. 
Net interest      Net interest income divided by the sum of average customer 
 margin            assets. The components of the calculation have been 
                   included on page 31. 
Tangible net      Calculated by dividing shareholders equity, excluding 
 asset value per   non-controlling interests and other equity instruments, 
 share             less goodwill and intangible assets, by the number 
                   of issued ordinary shares. The components of the calculation 
                   have been included on page 75. 
 
 
Barclays Core reconciliation 
 for the year ended                            31.12.16                                     31.12.15 
                              Barclays        Barclays     Head  Barclays  Barclays        Barclays     Head  Barclays 
                                    UK   International   Office      Core        UK   International   Office      Core 
                                  GBPm            GBPm     GBPm      GBPm      GBPm            GBPm     GBPm      GBPm 
Total income                     7,517          14,995      103    22,615     7,343          13,747      338    21,428 
Credit impairment charges 
 and other provisions            (896)         (1,355)        -   (2,251)     (706)           (922)        -   (1,628) 
Net operating income             6,621          13,640      103    20,364     6,637          12,825      338    19,800 
Operating expenses             (3,792)         (9,129)    (135)  (13,056)   (3,464)         (8,029)    (272)  (11,765) 
UK bank levy                      (48)           (284)      (2)     (334)      (77)           (253)      (8)     (338) 
Litigation and conduct         (1,042)            (48)     (27)   (1,117)   (2,511)         (1,310)     (66)   (3,887) 
Total operating expenses       (4,882)         (9,461)    (164)  (14,507)   (6,052)         (9,592)    (346)  (15,990) 
Other net (expenses)/income        (1)              32      128       159         -              45    (106)      (61) 
Profit/(loss) before 
 tax                             1,738           4,211       67     6,016       585           3,278    (114)     3,749 
Attributable profit/(loss)         828           2,412      110     3,350      (47)           1,758       11     1,722 
 
Average allocated tangible 
 equity (GBPbn)                    8.9            25.5      6.5      41.0       9.3            24.9      2.6      36.8 
Risk weighted assets 
 (GBPbn)                          67.5           212.7     53.3     333.5      69.5           194.8     39.7     304.1 
 
Notable items 
Total income 
Own credit                           -               -     (35)      (35)         -               -      430       430 
Gain on disposal of 
 Barclays' 
 share of Visa Europe 
 Limited                           151             464        -       615         -               -        -         - 
Gains on US Lehman 
 acquisition 
 assets                              -               -        -         -         -             496        -       496 
Litigation and conduct 
Provisions for UK customer 
 redress                       (1,000)               -        -   (1,000)   (2,431)           (218)        -   (2,649) 
Provisions for ongoing 
 investigations and 
 litigation 
 including Foreign Exchange          -               -        -         -         -           (984)     (52)   (1,036) 
Operating expenses 
Gain on valuation of 
 a component of the defined 
 retirement benefit 
 liability                           -               -        -         -       296             133        -       429 
Other net expenses 
Losses on sale relating 
 to the Spanish, Portuguese 
 and Italian businesses              -               -        -         -         -               -    (112)     (112) 
Total notable items              (849)             464     (35)     (420)   (2,135)           (573)      266   (2,442) 
 
 Results excluding notable items 
Total income                     7,366          14,531      138    22,035     7,343          13,251     (92)    20,502 
Credit impairment charges 
 and other provisions            (896)         (1,355)        -   (2,251)     (706)           (922)        -   (1,628) 
Net operating income/ 
 (expenses)                      6,470          13,176      138    19,784     6,637          12,329     (92)    18,874 
Operating expenses             (3,792)         (9,129)    (135)  (13,056)   (3,760)         (8,162)    (272)  (12,194) 
UK bank levy                      (48)           (284)      (2)     (334)      (77)           (253)      (8)     (338) 
Litigation and conduct            (42)            (48)     (27)     (117)      (80)           (108)     (14)     (202) 
Total operating expenses       (3,882)         (9,461)    (164)  (13,507)   (3,917)         (8,523)    (294)  (12,734) 
Other net (expenses)/income        (1)              32      128       159         -              45        6        51 
Profit/(loss) before 
 tax                             2,587           3,747      102     6,436     2,720           3,851    (380)     6,191 
Attributable profit/(loss)       1,685           1,961      135     3,781     1,961           2,320    (176)     4,105 
 
 
Results excluding notable items 
                                                           Results                           Results     Results 
                                                         excluding                         excluding   excluding 
                                  Statutory    Notable     notable  Statutory    Notable     notable     notable 
Barclays Core                       results   items(1)       items    results   items(1)       items       items 
for the year ended                            31.12.16                          31.12.15 
Income statement information                                                                                 YoY 
                                       GBPm       GBPm        GBPm       GBPm       GBPm        GBPm    % Change 
Net interest income                  10,377          -      10,377      9,993          -       9,993           4 
Net fee, commission and 
 other income                        12,238        580      11,658     11,435        926      10,509          11 
Total income                         22,615        580      22,035     21,428        926      20,502           7 
Credit impairment charges 
 and other provisions               (2,251)          -     (2,251)    (1,628)          -     (1,628)        (38) 
Net operating income                 20,364        580      19,784     19,800        926      18,874           5 
Operating expenses                 (13,056)          -    (13,056)   (11,765)        429    (12,194)         (7) 
UK bank levy                          (334)          -       (334)      (338)          -       (338)           1 
Total operating expenses 
 excluding litigation and 
 conduct                           (13,390)          -    (13,390)   (12,103)        429    (12,532)         (7) 
Litigation and conduct              (1,117)    (1,000)       (117)    (3,887)    (3,685)       (202)          42 
Total operating expenses           (14,507)    (1,000)    (13,507)   (15,990)    (3,256)    (12,734)         (6) 
Other net income/(expenses)             159          -         159       (61)      (112)          51 
Profit before tax                     6,016      (420)       6,436      3,749    (2,442)       6,191           4 
Attributable profit/(loss)            3,350      (431)       3,781      1,722    (2,383)       4,105         (8) 
 
Performance measures 
Return on average allocated 
 tangible equity                       8.4%                   9.4%       4.8%                  11.2% 
Cost: income ratio                      64%                    61%        75%                    62% 
 
 
Barclays Non-Core 
Income statement information 
Net interest income                     160          -         160        615          -         615        (74) 
Net trading income                  (1,703)          -     (1,703)      (706)          -       (706) 
Net fee, commission and 
 other income                           379          -         379        703          -         703        (46) 
Total income                        (1,164)          -     (1,164)        612          -         612 
Credit impairment charges 
 and other provisions                 (122)          -       (122)      (134)          -       (134)           9 
Net operating (expenses)/income     (1,286)          -     (1,286)        478          -         478 
Operating expenses                  (1,509)          -     (1,509)    (1,958)       (99)     (1,859)          19 
UK bank levy                           (76)          -        (76)       (88)          -        (88)          14 
Litigation and conduct                (246)          -       (246)      (500)      (324)       (176)        (40) 
Total operating expenses            (1,831)          -     (1,831)    (2,546)      (423)     (2,123)          14 
Other net income/(expenses)             331          -         331      (535)      (465)        (70) 
Loss before tax                     (2,786)          -     (2,786)    (2,603)      (888)     (1,715)        (62) 
Attributable loss                   (1,916)          -     (1,916)    (2,418)      (707)     (1,711)        (12) 
 
 
 1   Refer to page 5 for a breakdown of notable items. 
 
 
Results excluding notable items 
                                                       Results                                     Results     Results 
                                                     excluding                                   excluding   excluding 
                              Statutory    Notable     notable        Statutory    Notable         notable     notable 
Barclays UK                     results   items(1)       items          results   items(1)           items       items 
                                                                                                                   YoY 
for the year ended                     31.12.16                                  31.12.15                     % Change 
Income statement                   GBPm       GBPm        GBPm             GBPm       GBPm            GBPm 
information 
Net interest income               6,048          -       6,048            5,973          -           5,973           1 
Net fee, commission 
 and 
 other income                     1,469        151       1,318            1,370          -           1,370         (4) 
Total income                      7,517        151       7,366            7,343          -           7,343           - 
Credit impairment 
 charges 
 and other provisions             (896)          -       (896)            (706)          -           (706)        (27) 
Net operating income              6,621        151       6,470            6,637          -           6,637         (3) 
Operating expenses              (3,792)          -     (3,792)          (3,464)        296         (3,760)         (1) 
UK bank levy                       (48)          -        (48)             (77)          -            (77)          38 
Litigation and conduct          (1,042)    (1,000)        (42)          (2,511)    (2,431)            (80)          48 
Total operating 
 expenses                       (4,882)    (1,000)     (3,882)          (6,052)    (2,135)         (3,917)           1 
Other net expenses                  (1)          -         (1)                -          -               -           - 
Profit before tax                 1,738      (849)       2,587              585    (2,135)           2,720         (5) 
Attributable profit                 828      (857)       1,685             (47)    (2,008)           1,961        (14) 
 
Performance measures 
Return on average 
 allocated 
 tangible equity                   9.6%                  19.3%           (0.3%)                      21.1% 
Cost: income ratio                  65%                    53%              82%                        53% 
 
Analysis of total 
income 
Personal Banking                  3,891        129       3,762            3,714          -           3,714           1 
Barclaycard Consumer 
 UK                               2,022          -       2,022           2,065           -           2,065         (2) 
Wealth, Entrepreneurs 
 & 
 Business Banking                1,604          22       1,582           1,564           -           1,564           1 
Total income                      7,517        151       7,366            7,343          -           7,343           - 
 
 
 1   Refer to page 12 for a breakdown of notable items. 
 
 
Results excluding notable items 
                                                               Results                             Results     Results 
                                                             excluding                           excluding   excluding 
                                     Statutory    Notable      notable   Statutory    Notable      notable     notable 
Barclays International                 results   items(1)        items     results   items(1)        items       items 
                                                                                                                   YoY 
for the year ended                             31.12.16                              31.12.15                 % Change 
Income statement information              GBPm       GBPm         GBPm        GBPm       GBPm         GBPm 
Net interest income                      4,512          -        4,512       4,324          -        4,324           4 
Net trading income                       4,580          -        4,580       3,782          -        3,782          21 
Net fee, commission and 
 other income                            5,903        464        5,439       5,641        496        5,145           6 
Total income                            14,995        464       14,531      13,747        496       13,251          10 
Credit impairment charges 
 and other provisions                  (1,355)          -      (1,355)       (922)          -        (922)        (47) 
Net operating income                    13,640        464       13,176      12,825        496       12,329           7 
Operating expenses                     (9,129)          -      (9,129)     (8,029)        133      (8,162)        (12) 
UK bank levy                             (284)          -        (284)       (253)          -        (253)        (12) 
Litigation and conduct                    (48)          -         (48)     (1,310)    (1,202)        (108)          56 
Total operating expenses               (9,461)          -      (9,461)     (9,592)    (1,069)      (8,523)        (11) 
Other net income                            32          -           32          45          -           45        (29) 
Profit before tax                        4,211        464        3,747       3,278      (573)        3,851         (3) 
Attributable profit                      2,412        451        1,961       1,758      (562)        2,320        (15) 
 
Performance measures 
Return on average allocated 
 tangible equity                          9.8%                    8.0%        7.2%                    9.5% 
Cost: income ratio                         63%                     65%         70%                     64% 
 
Analysis of Barclays 
International 
 
Corporate and Investment 
 Bank 
Income statement information 
Total income                            10,533          -       10,533      10,450        496        9,954           6 
Credit impairment charges 
 and other provisions                    (260)          -        (260)       (199)          -        (199)        (31) 
Total operating expenses               (7,624)          -      (7,624)     (7,929)    (1,124)      (6,805)        (12) 
Profit before tax                        2,650          -        2,650       2,322      (628)        2,950        (10) 
 
Performance measures 
Return on average allocated 
 tangible equity                          6.1%                    6.1%        5.4%                    8.2% 
 
Consumer, Cards and Payments 
Income statement information 
Total income                             4,462        464        3,998       3,297          -        3,297          21 
Credit impairment charges 
 and other provisions                  (1,095)          -      (1,095)       (723)          -        (723)        (51) 
Total operating expenses               (1,837)          -      (1,837)     (1,663)         55      (1,718)         (7) 
Profit before tax                        1,561        464        1,097         956         55          901          22 
 
Performance measures 
Return on average allocated 
 tangible equity                         31.4%                   19.1%       20.2%                   18.9% 
 
 
 1   Refer to page 15 for a breakdown of notable items. 
 
 
Results excluding notable items 
                                                        Results                           Results     Results 
                                                      excluding                         excluding   excluding 
                               Statutory    Notable     notable  Statutory    Notable     notable     notable 
Head Office                      results   items(1)       items    results   items(1)       items       items 
                                                                                                          YoY 
for the year ended                         31.12.16                          31.12.15                % Change 
Income statement information        GBPm       GBPm        GBPm       GBPm       GBPm        GBPm 
Net interest income                (183)          -       (183)      (305)          -       (305)          40 
Net fee, commission and 
 other income                        286       (35)         321        643        430         213          51 
Net operating income                 103       (35)         138        338        430        (92) 
Operating expenses                 (135)          -       (135)      (272)          -       (272)          50 
UK bank levy                         (2)          -         (2)        (8)          -         (8)          75 
Litigation and conduct              (27)          -        (27)       (66)       (52)        (14)        (93) 
Total operating expenses           (164)          -       (164)      (346)       (52)       (294)          44 
Other net income/(expenses)          128          -         128      (106)      (112)           6 
Profit/(loss) before tax              67       (35)         102      (114)        266       (380) 
Attributable profit/(loss)           110       (25)         135         11        187       (176) 
 
 
 1   Refer to page 18 for a breakdown of notable items. 
 

Returns

Return on average allocated tangible equity is calculated as profit for the period attributable to ordinary equity holders of the parent (adjusted for the tax credit recorded in reserves in respect of interest payments on other equity instruments) divided by average allocated tangible equity for the period as appropriate, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 11.5% of CRD IV fully loaded risk weighted assets for each business, adjusted for CRD IV fully loaded capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office average tangible equity represents the difference between the Group's average tangible equity and the amounts allocated to businesses.

 
 
                                                                          Year ended  Year ended 
                                                                            31.12.16    31.12.15 
Attributable profit                                                             GBPm        GBPm 
                                                        ----------------------------  ---------- 
Barclays UK                                                                      828        (47) 
Barclays International                                                         2,412       1,758 
Head Office                                                                      110          11 
                                                                                      ---------- 
Barclays Core                                                                  3,350       1,722 
Barclays Non-Core                                                            (1,916)     (2,418) 
Africa Banking discontinued operation                                            189         302 
                                                                                      ---------- 
Barclays Group                                                                 1,623       (394) 
 
Tax credit in respect of interest payments on other 
 equity instruments 
                                                        ----------------------------  ---------- 
Barclays UK                                                                       29          14 
Barclays International                                                            83          42 
Head Office                                                                      (1)- 
                                                                                     --------- 
Barclays Core                                                                    111          56 
Barclays Non-Core                                                                 17          14 
Africa Banking discontinued operation                                              -- 
                                                                                     --------- 
Barclays Group                                                                   128          70 
 
Profit/(loss) attributable to ordinary equity holders 
 of the parent 
Barclays UK                                                                      857        (33) 
Barclays International                                                         2,495       1,800 
Head Office                                                                      109          11 
                                                                                      ---------- 
Barclays Core                                                                  3,461       1,778 
Barclays Non-Core                                                            (1,899)     (2,405) 
 Africa Banking discontinued operation                                           189         302 
Barclays Group                                                                 1,751       (324) 
 
Average allocated tangible equity                                              GBPbn       GBPbn 
Barclays UK                                                                      8.9         9.3 
Barclays International                                                          25.5        24.9 
Head Office(1)                                                                   6.5         2.6 
                                                                                      ---------- 
Barclays Core                                                                   41.0        36.8 
Barclays Non-Core                                                                7.8        10.9 
                                                                                      ---------- 
Barclays Group                                                                  48.7        47.7 
 
Return on average allocated tangible equity                                        %% 
Barclays UK                                                                     9.6%      (0.3%) 
Barclays International                                                          9.8%        7.2% 
                                                                                      ---------- 
Barclays Core                                                                   8.4%        4.8% 
 
Barclays Group                                                                  3.6%      (0.7%) 
 
 
 
 1   Includes the Africa Banking discontinued operation. 
 

Returns excluding notable items

 
                                                                      Year ended                            Year ended 
                                                                        31.12.16                              31.12.15 
Attributable profit excluding notable                                       GBPm                                  GBPm 
items 
Barclays UK                                                                1,685                                 1,961 
Barclays International                                                     1,961                                 2,320 
Head Office                                                                  135                                 (176) 
Barclays Core                                                              3,781                                 4,105 
Barclays Non-Core                                                        (1,916)                               (1,711) 
Africa Banking discontinued operation                                        189                                   302 
Barclays Group                                                             2,054                                 2,696 
 
Tax credit in respect of interest payments 
on other 
equity instruments 
                                            ------------------------------------  ------------------------------------ 
Barclays UK                                                                   29                                    14 
Barclays International                                                        83                                    42 
Head Office                                                                  (1)- 
                                                                                 ----------------------------------- 
Barclays Core                                                                111                                    56 
Barclays Non-Core                                                             17                                    14 
Africa Banking discontinued operation                                          -- 
                                                                                 ----------------------------------- 
Barclays Group                                                               128                                    70 
 
Profit/(loss) attributable to ordinary 
equity holders 
of the parent excluding notable items 
Barclays UK                                                                1,714                                 1,975 
Barclays International                                                     2,044                                 2,362 
Head Office                                                                  133                                 (176) 
                                                                                  ------------------------------------ 
Barclays Core                                                              3,891                                 4,161 
Barclays Non-Core                                                        (1,899)                               (1,697) 
 Africa Banking discontinued operation                                       189                                   302 
                                                                                  ------------------------------------ 
Barclays Group                                                             2,182                                 2,766 
 
Average allocated tangible equity 
excluding notable 
items                                                                      GBPbn                                 GBPbn 
Barclays UK                                                                  8.9                                   9.3 
Barclays International                                                      25.5                                  24.9 
Head Office(1,2)                                                             6.8                                   2.9 
                                                                                  ------------------------------------ 
Barclays Core                                                               41.3                                  37.2 
Barclays Non-Core                                                            7.8                                  10.9 
                                                                                  ------------------------------------ 
Barclays Group                                                              49.0                                  48.1 
 
Return on average allocated tangible 
equity excluding 
notable items                                                                  %% 
Barclays UK                                                                19.3%                                 21.1% 
Barclays International                                                      8.0%                                  9.5% 
                                                                                  ------------------------------------ 
Barclays Core                                                               9.4%                                 11.2% 
 
 Barclays Group                                                             4.4%                                  5.8% 
 
 
 1   Includes the Africa Banking discontinued operation. 
 2   Excludes the cumulative post-tax impact of own credit. 
 

Earnings per share

 
                                                        Year ended                            Year ended 
                                                          31.12.16                              31.12.15 
Profit/(loss) attributable to ordinary equity holders 
 of the parent(1)                                             GBPm                                  GBPm 
Barclays Core                                                3,461                                 1,778 
Barclays Non-Core                                          (1,899)                               (2,405) 
 Africa Banking discontinued operation                         189                                   302 
                                                                    ------------------------------------ 
Barclays Group(2)                                            1,751                                 (324) 
 
                                                                 m                                     m 
Basic weighted average number of shares                     16,860                                16,683 
 
Basic earnings per ordinary share                                p                                     p 
Barclays Core contribution                                    20.5                                  10.7 
Barclays Non-Core contribution                              (11.3)                                (14.4) 
 
Barclays Group                                                10.4                                 (1.9) 
 
 

Earnings per share excluding notable items

 
Profit/(loss) attributable to ordinary 
equity holders 
of the parent excluding notable items(1)                                    GBPm                                  GBPm 
Barclays Core                                                              3,891                                 4,161 
Barclays Non-Core                                                        (1,899)                               (1,697) 
 Africa Banking discontinued operation                                       189                                   302 
                                                                                  ------------------------------------ 
Barclays Group(2)                                                          2,182                                 2,766 
 
Basic earnings per ordinary share 
excluding notable 
items                                                                          p                                     p 
Barclays Core contribution                                                  23.1                                  24.9 
Barclays Non-Core contribution                                            (11.3)                                (10.2) 
 
Barclays Group                                                              12.9                                  16.6 
 
 
 1   Profit for the period attributable to ordinary equity holders of 
      the parent includes the tax credit recorded in reserves in respect 
      of interest payments on other equity instruments. The tax credit 
      of GBP128m (2015: GBP70m) is allocated to businesses in proportion 
      to the allocation of the payments in relation to the other equity 
      instruments. 
 2   Includes the Africa Banking discontinued operation. 
 

Tangible net asset value

 
                                                         Year ended  Year ended 
                                                           31.12.16    31.12.15 
                                                               GBPm        GBPm 
Total equity excluding non-controlling interests             64,873      59,810 
Other equity instruments                                    (6,449)     (5,305) 
Goodwill and intangibles(1)                                 (9,245)     (8,222) 
Tangible shareholders' equity attributable to ordinary 
 shareholders of the parent                                  49,179      46,283 
 
                                                                  m           m 
Shares in issue                                              16,963      16,805 
 
                                                                  p           p 
Tangible net asset value per share                              290         275 
 
 
 1   2016 includes goodwill and intangibles in relation to Africa Banking. 
 

Shareholder Information

 
Results timetable(1)                                        Date 
Ex-dividend date                                            2 March 2017 
Dividend Record date                                        3 March 2017 
Scrip reference share price set and made available to 
 shareholders                                               9 March 2017 
Cut off time of 4.30 pm (London time) for the receipt 
 of Mandate Forms or Revocation Forms (as applicable)       17 March 2017 
Dividend Payment date /first day of dealing in New Shares   5 April 2017 
Q1 2017 Results                                             28 April 2017 
 
For qualifying US and Canadian resident ADR holders, the final dividend 
 of 2.0p per ordinary share becomes 8.0p per ADS (representing four 
 shares). The ex-dividend, dividend record and dividend payment dates 
 for ADR holders are as shown above. 
 
 
                                          Year ended  Year ended  % Change(3) 
Exchange rates(2)                           31.12.16    31.12.15     31.12.15 
========================================  ==========  ==========  =========== 
Period end - USD/GBP                            1.23        1.48        (17%) 
Average - USD/GBP                               1.36        1.53        (11%) 
3 Month Average - USD/GBP                       1.24        1.52        (18%) 
Period end - EUR/GBP                            1.17        1.36        (14%) 
Average - EUR/GBP                               1.23        1.38        (11%) 
3 Month Average - EUR/GBP                       1.15        1.39        (17%) 
Period end - ZAR/GBP                           16.78       23.14        (27%) 
Average - ZAR/GBP                              20.04       19.57           2% 
3 Month Average - ZAR/GBP                      17.29       21.56        (20%) 
 
Share price data                            31.12.16    31.12.15 
========================================  ==========  ==========  ----------- 
Barclays PLC (p)                              223.45      218.90 
Barclays PLC number of shares (m)             16,963      16,805 
Barclays Africa Group Limited (formerly 
 Absa Group Limited) (ZAR)                    168.69      143.49 
Barclays Africa Group Limited (formerly 
 Absa Group Limited) number of shares 
 (m)                                             848         848 
 
 
 
For further information please contact 
 
Investor relations                                                     Media relations 
=====================================================================  ====================================== 
Kathryn McLeland +44 (0) 20 7116                                       Thomas Hoskin +44 (0) 20 7116 4755 
 4943 
 
More information on Barclays can be found on our website: 
 www.home.barclays 
 
Registered office 
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 
 7116 1000. Company number: 48839 
 
Registrar 
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, 
 United Kingdom. 
Tel: 0371 384 2055(4) from the UK 
 or +44 121 415 7004 from overseas. 
 
 
 1   Note that these dates are provisional and subject to change. Any 
      changes to the Scrip Dividend Programme dates will be made available 
      at www.home.barclays/dividends. 
 2   The average rates shown above are derived from daily spot rates 
      during the year. 
 3   The change is the impact to GBP reported information. 
 4   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

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