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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Barclays Plc (PK) | USOTC:BCLYF | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.105 | 3.85% | 2.835 | 2.66 | 3.00 | 2.94 | 2.73 | 2.835 | 712,391 | 21:15:54 |
|
BARCLAYS
PLC
|
|
(Registrant)
|
|
By: /s/
Garth Wright
--------------------------------
|
|
Garth
Wright
|
|
Assistant
Secretary
|
|
Income
|
Group income of £11.3bn down 3% versus prior year reflecting
currency headwinds
|
||
|
●
|
Barclays
International income of £8.2bn, down 5% versus prior
year
|
|
Resilient
income as the Group continues to benefit from diversified income
streams
|
|
–
|
Corporate
and Investment Bank (CIB) income of £6.6bn, down 5% with
strong Equities and Investment Banking fees performance, up 38% and
27% respectively, whilst FICC was down 37% versus a strong
H120
|
|
–
|
Consumer,
Cards and Payments (CC&P) income of £1.6bn, down 4%
primarily reflecting lower interest earning US cards
balances
|
|
|
●
|
Barclays
UK income of £3.2bn increased 1% reflecting strong mortgages
performance with record net balance growth of £6.9bn,
partially offset by lower interest earning UK cards balances and
the effect of lower interest rates
|
|
●
|
Excluding
the impact of the 10% depreciation of average USD against GBP,
Group income was up versus prior year
|
||
Credit impairment
|
Group credit impairment net release of £0.7bn (H120:
£3.7bn charge)
|
||
Improved
macroeconomic outlook and benign credit environment
|
●
|
The net
release included a reversal of £1.1bn in non-default charges,
primarily reflecting the improved macroeconomic outlook. Excluding
this reversal, the charge was £0.4bn, reflecting reduced
unsecured lending balances and the benign credit
environment
|
|
Costs
|
Group total operating expenses of £7.2bn up 10% versus prior
year, resulting in a cost: income ratio of 64% (H120:
57%)
|
||
Investing
for income growth whilst taking structural cost
actions
|
●
|
Total
operating expenses included structural cost actions of £321m
(H120: £78m), primarily related to the real estate review in
Q221, higher performance costs reflective of improved returns, and
continued investment and business growth, partially offset by the
benefit from the depreciation of average USD against GBP and
efficiency savings
|
|
Capital / capital distributions
|
Common equity tier 1 (CET1) ratio of 15.1%, in line with December
2020
|
||
Announced
increased capital distributions
|
●
|
Half
year dividend of 2.0p (H120: 0p) per share to be paid on 17
September 2021
|
|
●
|
Completed
£700m share buyback in April
|
||
●
|
Intend
to initiate a further share buyback of up to £500m, which
would have an effect of 17bps on the CET1 ratio
|
Q221 performance
Robust
performance, with profitability benefiting from a credit impairment
net release and the upwards re-measurement of UK DTAs
|
Q221 Group profit before tax of £2.6bn (Q220: £0.4bn),
RoTE of 18.1% (Q220: 0.7%) and EPS of 12.3p (Q220:
0.5p)
|
|
●
|
Q221 Group income of £5.4bn, up 1% versus prior year despite
currency headwinds. Barclays International income of
£3.8bn was down 5% versus prior year, reflecting CIB income of
£3.0bn, down 10% versus prior year and CC&P income of
£0.8bn, up 21% versus prior year driven by a valuation loss in
2020. Barclays UK income of £1.6bn was up 11% versus prior
year
|
|
●
|
Q221 Group credit impairment net release of £0.8bn (Q220:
£1.6bn charge), reflecting a reversal of £1.0bn in
non-default charges, primarily reflecting the improved
macroeconomic outlook. Excluding this reversal, the charge was
£0.2bn, which is broadly aligned with prior
quarter
|
|
●
|
Q221 Group total operating expenses of £3.7bn, up £0.3bn
versus prior year, reflecting structural cost
actions
|
|
●
|
Q221 attributable profit of £2.1bn (Q220: £0.1bn),
which included an income statement tax benefit of £0.4bn on
the upwards re-measurement of UK deferred tax assets
(DTAs)
|
|
●
|
The CET1 ratio as at June 2021 was 15.1%, up 50bps in the
quarter, driven by profits and lower Risk Weighted Assets
(RWAs)
|
Outlook
Whilst
the macroeconomic environment has improved, the outlook remains
uncertain and subject to change depending on the evolution and
persistence of the COVID-19 pandemic
|
Returns
|
|
●
|
Expect
to deliver a RoTE above 10% in 2021
|
|
|
||
Impairment
|
||
●
|
The
quarterly impairment run rate is expected to remain below
historical levels in coming quarters given reduced unsecured
lending balances and the improved macroeconomic outlook,
acknowledging the continuing uncertainty
|
|
|
||
Costs
|
||
●
|
FY21
costs, excluding structural cost actions and performance costs, are
expected to be broadly in line with FY201
|
|
●
|
Total
full year 2021 costs are expected to be above 2020, due to higher
structural cost actions, including a real estate charge in Q221,
and higher performance costs, reflecting improved
returns
|
|
|
||
Capital
|
||
●
|
FY21
CET1 ratio is expected to remain above the target range of 13-14%,
given the economic environment remains uncertain and capital
headwinds in 2022, including the c.40bps impact from the reversal
of software amortisation benefit from 1 January 2022
|
|
|
||
Capital returns
|
||
●
|
Barclays’
capital returns policy incorporates a progressive ordinary
dividend, supplemented by additional cash returns, including share
buybacks as and when appropriate
|
|
●
|
Dividends
will continue to be paid semi-annually, with the half year dividend
expected to represent, under normal circumstances, around one-third
of the total dividend for the year
|
|
Targets
|
Continue to target the following over the medium term:
|
|
●
|
Returns:
RoTE of greater than 10%
|
|
●
|
Cost
efficiency: Cost: income ratio below 60%
|
|
●
|
Capital
adequacy: CET1 ratio in the range of 13-14%
|
1
|
Group cost outlook is based on an average rate of 1.38 (USD/GBP) in
H221 and subject to foreign currency movements.
|
Barclays Group results
for the half year ended
|
|
||
|
30.06.21
|
30.06.20
|
|
|
£m
|
£m
|
% Change
|
Net interest income
|
3,903
|
4,223
|
(8)
|
Net fee, commission and other income
|
7,412
|
7,398
|
|
Total income
|
11,315
|
11,621
|
(3)
|
Credit impairment releases/(charges)
|
742
|
(3,738)
|
|
Net operating income
|
12,057
|
7,883
|
53
|
Operating expenses
|
(7,132)
|
(6,563)
|
(9)
|
Litigation and conduct
|
(99)
|
(30)
|
|
Total operating expenses
|
(7,231)
|
(6,593)
|
(10)
|
Other net income/expenses
|
153
|
(18)
|
|
Profit before tax
|
4,979
|
1,272
|
|
Tax charge
|
(759)
|
(113)
|
|
Profit after tax
|
4,220
|
1,159
|
|
Non-controlling interests
|
(19)
|
(37)
|
49
|
Other equity instrument holders
|
(389)
|
(427)
|
9
|
Attributable profit
|
3,812
|
695
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average tangible shareholders' equity
|
16.4%
|
2.9%
|
|
Average tangible shareholders' equity (£bn)
|
46.5
|
48.6
|
|
Cost: income ratio
|
64%
|
57%
|
|
Loan loss rate (bps)
|
—
|
207
|
|
Basic earnings per share
|
22.2p
|
4.0p
|
|
Dividend per share
|
2.0p
|
—
|
|
Basic weighted average number of shares (m)
|
17,140
|
17,294
|
|
Period end number of shares (m)
|
16,998
|
17,345
|
|
Share buyback announced (£m)
|
500
|
—
|
|
Total payout equivalent per share
|
4.9p
|
—
|
|
|
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
Balance sheet and capital management1
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
348.5
|
342.6
|
354.9
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.8%
|
2.4%
|
2.5%
|
Deposits at amortised cost
|
500.9
|
481.0
|
466.9
|
Tangible net asset value per share
|
281p
|
269p
|
284p
|
Common equity tier 1 ratio
|
15.1%
|
15.1%
|
14.2%
|
Common equity tier 1 capital
|
46.2
|
46.3
|
45.4
|
Risk weighted assets
|
306.4
|
306.2
|
319.0
|
Average UK leverage ratio
|
4.8%
|
5.0%
|
4.7%
|
UK leverage ratio
|
5.0%
|
5.3%
|
5.2%
|
|
|
|
|
Funding and liquidity
|
|
|
|
Group liquidity pool (£bn)
|
291
|
266
|
298
|
Liquidity coverage ratio
|
162%
|
162%
|
186%
|
Loan: deposit ratio
|
70%
|
71%
|
76%
|
1
|
Refer to pages 54 to 60 for further information on how capital,
RWAs and leverage are calculated.
|
1
|
Period covering Q114 - Q221. Pre 2014 financials were not restated
following re-segmentation in Q116.
|
2
|
Group cost outlook is based on an average rate of 1.38 (USD/GBP) in
H221 and subject to foreign currency movements.
|
●
|
Barclays
delivered a profit before tax of £4,979m (H120: £1,272m),
RoTE of 16.4% (H120: 2.9%), and EPS of 22.2p (H120: 4.0p).
Profitability benefitted from a credit impairment net release and
the upwards re-measurement of UK DTAs. The 10% depreciation of
average USD against GBP adversely impacted income and profits and
positively impacted total operating expenses
|
●
|
Total
income decreased to £11,315m (H120: £11,621m). Barclays
UK income increased 1%. Barclays International income decreased 5%,
with CIB income down 5% and CC&P income down 4%. Excluding the
impact of the 10% depreciation of average USD against GBP, total
income was up, reflecting the Group’s diversified income
streams
|
●
|
Credit
impairment net release of £742m (H120: £3,738m charge)
driven by an improved macroeconomic outlook used in the Q221
scenario refresh, lower unsecured lending balances and a benign
credit environment. Barclays has maintained and refined management
judgements in respect of customers and clients considered to be
potentially more vulnerable as government and other support schemes
start to reduce. The reduction in unsecured lending balances and
growth in secured balances, with the mix impact contributing to a
decrease in the Group’s loan coverage ratio to 1.8% (December
2020: 2.4%), with an unsecured loan coverage ratio at 10.2%
(December 2020: 12.3%) and wholesale loan coverage ratio at 1.1%
(December 2020: 1.5%)
|
●
|
Total
operating expenses increased 10% to £7,231m, due to structural
cost actions of £321m primarily relating to the real estate
review, higher performance costs that reflect improvement in
returns, and continued investment and business growth, partially
offset by efficiency savings. This resulted in a cost: income ratio
of 64% (H120: 57%)
|
●
|
The
effective tax rate was 15.2% (H120: 8.9%). This reflects the
£392m tax benefit recognised for the re-measurement of the
Group’s UK DTAs as a result of the UK corporation tax rate
increase from 19% to 25% from 1 April 2023
|
●
|
Attributable
profit was £3,812m (H120: £695m)
|
●
|
As a
result of the share buyback completed in April, the period end
number of shares was 16,998m (December 2020: 17,359m)
|
●
|
Total
assets increased to £1,376bn (December 2020: £1,350bn)
primarily due to a £26bn increase in cash at central banks, a
£19bn increase in trading portfolio assets due to increased
activity and a £19bn increase in financial assets at fair
value due to an increase in secured lending, partially offset by a
£46bn decrease in derivative assets driven by an increase in
major interest rate curves
|
●
|
Tangible
net asset value (TNAV) per share increased to 281p (December 2020:
269p) primarily reflecting 22.2p of EPS, partially offset by
negative reserve movements
|
●
|
The
CET1 ratio remained stable at 15.1% (December 2020:
15.1%)
|
|
|
–
|
CET1
capital reduced by £0.1bn to £46.2bn (December 2020:
£46.3bn) as profit before tax of £5.0bn was offset by the
removal of temporary regulatory supporting measures introduced in
2020, dividends paid and foreseen and pensions deficit contribution
payments. The £1.1bn release of non-defaulted credit
impairment was more than offset by a reduction in IFRS 9
transitional relief which also decreased due to impairment
migrations from stage 2 to stage 3 and the relief on the pre-2020
impairment charge reducing from 70% to 50% in 2021
|
|
–
|
RWAs
remained broadly stable at £306.4bn (December 2020:
£306.2bn) primarily due to increased client and trading
activity within CIB and growth in mortgages within Barclays UK,
partially offset by lower consumer lending
|
●
|
The
average UK leverage ratio decreased to 4.8% (December 2020: 5.0%).
The average leverage exposure increased by £45.1bn to
£1,192.0bn (December 2020: £1,146.9bn) largely driven by
an increase in securities financing transactions (SFTs), trading
portfolio assets (TPAs) and potential future exposure (PFE) on
derivatives
|
●
|
The
liquidity pool was £291bn (December 2020: £266bn) and the
liquidity coverage ratio remained significantly above the 100%
regulatory requirement at 162% (December 2020: 162%), equivalent to
a surplus of £108bn (December 2020: £99bn). The increase
in the pool is driven by continued deposit growth, further
borrowing from the Bank of England’s Term Funding Scheme with
additional incentives for SMEs and a seasonal increase in
short-term wholesale funding, which were partly offset by an
increase in business funding consumption
|
●
|
Wholesale
funding outstanding, excluding repurchase agreements, was
£158.7bn (December 2020: £145.0bn). The Group issued
£5.9bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) during the year. The Group is well advanced in its
MREL issuance plans relative to the estimated 1 January 2022
requirement
|
●
|
Barclays
understands the importance of delivering attractive total cash
returns to shareholders. Barclays is therefore committed to
maintaining an appropriate balance between total cash returns to
shareholders, investment in the business and maintaining a strong
capital position. Going forward, Barclays intends to pay a
progressive ordinary dividend, taking into account these objectives
and the earnings outlook of the Group. It is also the Board’s
intention to continue to supplement the ordinary dividends with
additional cash returns, including share buybacks, to shareholders
as and when appropriate
|
●
|
Barclays
will pay a half year dividend per share of 2.0p on 17 September
2021, and intends to initiate a share buyback of up to £500m
which is expected to commence in Q321. This is in addition to the
£700m share buyback completed in April
|
●
|
The
Board will assess the appropriate level and form of capital
distributions as the year progresses
|
●
|
Dividends
will continue to be paid semi-annually, with the half year dividend
expected to represent, under normal circumstances, around one-third
of the total dividend for the year
|
Barclays UK
|
Half year ended
|
Half year ended
|
|
|
30.06.21
|
30.06.20
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
2,586
|
2,637
|
(2)
|
Net fee, commission and other income
|
613
|
534
|
15
|
Total income
|
3,199
|
3,171
|
1
|
Credit impairment releases/(charges)
|
443
|
(1,064)
|
|
Net operating income
|
3,642
|
2,107
|
73
|
Operating expenses
|
(2,114)
|
(2,041)
|
(4)
|
Litigation and conduct
|
(22)
|
(11)
|
|
Total operating expenses
|
(2,136)
|
(2,052)
|
(4)
|
Other net income
|
—
|
13
|
|
Profit before tax
|
1,506
|
68
|
|
Attributable profit
|
1,019
|
52
|
|
|
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
207.8
|
205.4
|
202.0
|
Total assets
|
311.2
|
289.1
|
287.6
|
Customer deposits at amortised cost
|
255.5
|
240.5
|
225.7
|
Loan: deposit ratio
|
87%
|
89%
|
92%
|
Risk weighted assets
|
72.2
|
73.7
|
77.9
|
Period end allocated tangible equity
|
9.9
|
9.7
|
10.3
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
Key facts
|
30.06.21
|
30.06.20
|
|
Average
loan to value of mortgage portfolio1
|
51%
|
52%
|
|
Average
loan to value of new mortgage lending1
|
69%
|
68%
|
|
Number of branches
|
755
|
904
|
|
Mobile banking active customers
|
9.4m
|
8.7m
|
|
30 day arrears rate - Barclaycard Consumer UK
|
1.4%
|
2.0%
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
20.6%
|
1.0%
|
|
Average allocated tangible equity (£bn)
|
9.9
|
10.2
|
|
Cost: income ratio
|
67%
|
65%
|
|
Loan loss rate (bps)
|
—
|
101
|
|
Net interest margin
|
2.54%
|
2.69%
|
|
1
|
Average loan to value of mortgages is balance weighted and reflects
both residential and buy-to-let (BTL) mortgage portfolios within
the Home Loans portfolio.
|
Analysis of Barclays UK
|
Half year ended
|
Half year ended
|
|
30.06.21
|
30.06.20
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
Personal Banking
|
1,910
|
1,794
|
6
|
Barclaycard Consumer UK
|
605
|
803
|
(25)
|
Business Banking
|
684
|
574
|
19
|
Total income
|
3,199
|
3,171
|
1
|
|
|
|
|
Analysis of credit impairment releases/(charges)
|
|
|
|
Personal Banking
|
50
|
(264)
|
|
Barclaycard Consumer UK
|
398
|
(697)
|
|
Business Banking
|
(5)
|
(103)
|
|
Total credit impairment releases/(charges)
|
443
|
(1,064)
|
|
|
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
162.4
|
157.3
|
154.9
|
Barclaycard Consumer UK
|
8.8
|
9.9
|
11.5
|
Business Banking
|
36.6
|
38.2
|
35.6
|
Total loans and advances to customers at amortised
cost
|
207.8
|
205.4
|
202.0
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
Personal Banking
|
191.0
|
179.7
|
169.6
|
Barclaycard Consumer UK
|
0.1
|
0.1
|
0.1
|
Business Banking
|
64.4
|
60.7
|
56.0
|
Total customer deposits at amortised cost
|
255.5
|
240.5
|
225.7
|
●
|
Profit
before tax increased to £1,506m (H120: £68m). RoTE was
20.6% (H120: 1.0%) reflecting materially lower credit impairment
charges
|
|
●
|
Total
income increased 1% to £3,199m. Net interest income reduced 2%
to £2,586m with a net interest margin (NIM) of 2.54% (H120:
2.69%). Net fee, commission and other income increased 15% to
£613m
|
|
|
–
|
Personal
Banking income increased 6% to £1,910m, reflecting strong
growth in mortgages alongside improved margins, balance growth in
deposits and the non-recurrence of COVID-19 customer support
actions, partially offset by deposit margin compression from lower
interest rates and lower unsecured lending balances
|
|
–
|
Barclaycard
Consumer UK income decreased 25% to £605m as reduced borrowing
and continued payments by customers resulted in a lower level of
interest earning lending (IEL) balances
|
|
–
|
Business
Banking income increased 19% to £684m due to lending and
deposit balance growth from £12.1bn of government scheme
lending and the non-recurrence of COVID-19 and related customer
support actions, partially offset by deposit margin compression
from lower interest rates
|
●
|
Credit
impairment net release of £443m (H120: £1,064m charge)
was driven by an improved macroeconomic outlook used in the Q221
scenario refresh. The primary driver is a reduction in the
anticipated peak of UK unemployment with the majority of this
provision release in UK cards and personal loans. As at 30 June
2021, 30 and 90 day arrears rates in UK cards were 1.4% (H120:
2.0%) and 0.6% (H120: 1.0%) respectively
|
|
●
|
Total
operating expenses increased 4% to £2,136m reflecting
investment spend and higher operational and customer service costs,
including ongoing financial assistance, partially offset by
efficiency savings
|
●
|
Loans
and advances to customers at amortised cost increased 1% to
£207.8bn predominantly from £6.9bn of mortgage growth
following continued strong flow of new applications as well as
strong customer retention, offset by a £1.8bn decrease in the
Education, Social Housing and Local Authority (ESHLA) portfolio and
£1.5bn lower unsecured lending balances, albeit loans and
advances in Barclaycard Consumer UK stabilised in Q221
|
●
|
Customer
deposits at amortised cost increased 6% to £255.5bn reflecting
an increase of £11.3bn and £3.7bn in Personal Banking and
Business Banking respectively, further strengthening the liquidity
position and contributing to a loan: deposit ratio of 87% (December
2020: 89%)
|
●
|
RWAs
decreased to £72.2bn (December 2020: £73.7bn) driven by a
reduction in unsecured lending and ESHLA, partially offset by
growth in mortgages
|
Barclays International
|
Half year ended
|
Half year ended
|
|
|
30.06.21
|
30.06.20
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
1,559
|
1,845
|
(16)
|
Net trading income
|
3,389
|
4,020
|
(16)
|
Net fee, commission and other income
|
3,270
|
2,789
|
17
|
Total income
|
8,218
|
8,654
|
(5)
|
Credit impairment releases/(charges)
|
293
|
(2,619)
|
|
Net operating income
|
8,511
|
6,035
|
41
|
Operating expenses
|
(4,606)
|
(4,405)
|
(5)
|
Litigation and conduct
|
(84)
|
(11)
|
|
Total operating expenses
|
(4,690)
|
(4,416)
|
(6)
|
Other net income
|
22
|
10
|
|
Profit before tax
|
3,843
|
1,629
|
|
Attributable profit
|
2,698
|
997
|
|
|
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
121.9
|
122.7
|
138.1
|
Trading portfolio assets
|
147.1
|
127.7
|
109.5
|
Derivative financial instrument assets
|
255.4
|
301.8
|
306.8
|
Financial assets at fair value through the income
statement
|
190.4
|
170.7
|
154.3
|
Cash collateral and settlement balances
|
108.5
|
97.5
|
130.8
|
Other assets
|
223.5
|
221.4
|
236.3
|
Total assets
|
1,046.8
|
1,041.8
|
1,075.8
|
Deposits at amortised cost
|
245.4
|
240.5
|
241.2
|
Derivative financial instrument liabilities
|
246.9
|
300.4
|
307.6
|
Loan: deposit ratio
|
50%
|
51%
|
57%
|
Risk weighted assets
|
223.2
|
222.3
|
231.2
|
Period end allocated tangible equity
|
31.8
|
30.2
|
31.6
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
Performance measures
|
30.06.21
|
30.06.20
|
|
Return on average allocated tangible equity
|
16.7%
|
6.2%
|
|
Average allocated tangible equity (£bn)
|
32.3
|
32.4
|
|
Cost: income ratio
|
57%
|
51%
|
|
Loan loss rate (bps)
|
—
|
368
|
|
Net interest margin
|
3.95%
|
3.67%
|
|
Analysis of Barclays International
|
|
|
|
Corporate and Investment Bank
|
Half year ended
|
Half year ended
|
|
|
30.06.21
|
30.06.20
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
640
|
669
|
(4)
|
Net trading income
|
3,411
|
4,043
|
(16)
|
Net fee, commission and other income
|
2,522
|
2,221
|
14
|
Total income
|
6,573
|
6,933
|
(5)
|
Credit impairment releases/(charges)
|
272
|
(1,320)
|
|
Net operating income
|
6,845
|
5,613
|
22
|
Operating expenses
|
(3,509)
|
(3,370)
|
(4)
|
Litigation and conduct
|
(2)
|
(3)
|
33
|
Total operating expenses
|
(3,511)
|
(3,373)
|
(4)
|
Other net income
|
1
|
3
|
(67)
|
Profit before tax
|
3,335
|
2,243
|
49
|
Attributable profit
|
2,312
|
1,514
|
53
|
|
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
91.0
|
92.4
|
104.9
|
Trading portfolio assets
|
147.0
|
127.5
|
109.3
|
Derivative financial instrument assets
|
255.3
|
301.7
|
306.7
|
Financial assets at fair value through the income
statement
|
190.3
|
170.4
|
153.7
|
Cash collateral and settlement balances
|
107.7
|
96.7
|
129.7
|
Other assets
|
192.5
|
194.9
|
205.5
|
Total assets
|
983.8
|
983.6
|
1,009.8
|
Deposits at amortised cost
|
178.2
|
175.2
|
173.9
|
Derivative financial instrument liabilities
|
246.8
|
300.3
|
307.6
|
Risk weighted assets
|
194.3
|
192.2
|
198.3
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
Performance measures
|
30.06.21
|
30.06.20
|
|
Return on average allocated tangible equity
|
16.3%
|
11.0%
|
|
Average allocated tangible equity (£bn)
|
28.3
|
27.7
|
|
Cost: income ratio
|
53%
|
49%
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
FICC
|
2,099
|
3,326
|
(37)
|
Equities
|
1,709
|
1,238
|
38
|
Global Markets1
|
3,808
|
4,564
|
(17)
|
Advisory
|
381
|
239
|
59
|
Equity capital markets
|
469
|
247
|
90
|
Debt capital markets
|
882
|
881
|
|
Investment Banking fees1
|
1,732
|
1,367
|
27
|
Corporate lending
|
244
|
172
|
42
|
Transaction banking
|
789
|
830
|
(5)
|
Corporate
|
1,033
|
1,002
|
3
|
Total income
|
6,573
|
6,933
|
(5)
|
1
|
Previously labelled as “Markets” and “Banking
fees”.
|
Analysis of Barclays International
|
|
|
|
Consumer, Cards and Payments
|
Half year ended
|
Half year ended
|
|
|
30.06.21
|
30.06.20
|
|
Income statement information
|
£m
|
£m
|
% Change
|
Net interest income
|
919
|
1,176
|
(22)
|
Net fee, commission, trading and other income
|
726
|
545
|
33
|
Total income
|
1,645
|
1,721
|
(4)
|
Credit impairment releases/(charges)
|
21
|
(1,299)
|
|
Net operating income
|
1,666
|
422
|
|
Operating expenses
|
(1,097)
|
(1,035)
|
(6)
|
Litigation and conduct
|
(82)
|
(8)
|
|
Total operating expenses
|
(1,179)
|
(1,043)
|
(13)
|
Other net income
|
21
|
7
|
|
Profit/(loss) before tax
|
508
|
(614)
|
|
Attributable profit/(loss)
|
386
|
(517)
|
|
|
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
30.9
|
30.3
|
33.2
|
Total assets
|
63.0
|
58.2
|
66.0
|
Deposits at amortised cost
|
67.2
|
65.3
|
67.3
|
Risk weighted assets
|
29.0
|
30.1
|
32.9
|
|
|
|
|
|
Half year ended
|
Half year ended
|
|
Key facts
|
30.06.21
|
30.06.20
|
|
30 day arrears rate – Barclaycard US
|
1.6%
|
2.4%
|
|
US cards customer FICO score distribution
|
|
|
|
<660
|
10%
|
14%
|
|
>660
|
90%
|
86%
|
|
Total number of Barclaycard payments clients
|
c.372,000
|
c.368,000
|
|
Value
of payments processed (£bn)1
|
160
|
156
|
|
|
|
|
|
Performance measures
|
|
|
|
Return on average allocated tangible equity
|
19.1%
|
(21.9)%
|
|
Average allocated tangible equity (£bn)
|
4.0
|
4.7
|
|
Cost: income ratio
|
72%
|
61%
|
|
Loan loss rate (bps)
|
—
|
714
|
|
|
Half year ended
|
Half year ended
|
|
30.06.21
|
30.06.20
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
International Cards and Consumer Bank
|
1,050
|
1,257
|
(16)
|
Private Bank
|
393
|
362
|
9
|
Unified Payments
|
202
|
102
|
98
|
Total income
|
1,645
|
1,721
|
(4)
|
1
|
Includes £129bn (H120: £124bn) of merchant acquiring
payments.
|
●
|
Profit
before tax increased 136% to £3,843m with a RoTE of 16.7%
(H120: 6.2%), reflecting a RoTE of 16.3% (H120: 11.0%) in CIB and
19.1% (H120: (21.9)%) in CC&P
|
||
●
|
The 10%
depreciation of average USD against GBP adversely impacted income
and profits and positively impacted total operating
expenses
|
||
●
|
Total
income decreased to £8,218m (H120: £8,654m)
|
||
|
–
|
CIB
income decreased 5% to £6,573m
|
|
|
|
–
|
Global
Markets income decreased 17% to £3,808m as a strong
performance in Equities, representing the best ever first half of
the year on a comparable basis1, was more than
offset by FICC. Equities income increased 38% to £1,709m
driven by derivatives, reflecting strong client activity, and
financing through increased client balances. FICC income decreased
37% to £2,099m due to tighter spreads and the non-recurrence
of H120 client activity levels
|
|
|
–
|
Investment
Banking fees income, representing the best ever first half of the
year on a comparable basis1, increased 27% to
£1,732m driven by a strong performance in Equity capital
markets and Advisory reflecting an increase in the fee pool and an
increased market share2
|
|
|
–
|
Within
Corporate, Transaction banking income decreased 5% to £789m as
deposit balance growth was more than offset by margin compression.
Corporate lending income increased by 42% to £244m driven by
the non-recurrence of losses on the mark-to-market of lending and
related hedge positions partially offset by a current year
write-off on a single name
|
|
–
|
CC&P
income decreased 4% to £1,645m
|
|
|
|
–
|
International
Cards and Consumer Bank income decreased 16% to £1,050m
reflecting lower cards balances
|
|
|
–
|
Private
Bank income increased 9% to £393m, which included a gain on a
property sale
|
|
|
–
|
Unified
Payments income increased 98% to £202m driven by the
non-recurrence of a c.£100m valuation loss on Barclays’
preference shares in Visa Inc. resulting from the Q220 Supreme
Court ruling concerning charges paid by merchants
|
●
|
Credit
impairment net release of £293m (H120: £2,619m charge)
was driven by an improved macroeconomic outlook used in the Q221
scenario refresh
|
||
|
–
|
CIB
credit impairment net release of £272m (H120: £1,320m
charge), supported by a benign credit risk environment and limited
single name wholesale loan charges
|
|
|
–
|
CC&P
credit impairment net release of £21m (H120: £1,299m
charge) partially driven by lower delinquencies and customer
repayments. As at 30 June 2021, 30 and 90 day arrears in US cards
were 1.6% (H120: 2.4%) and 0.9% (H120: 1.4%)
respectively
|
|
●
|
Total
operating expenses increased 6% to £4,690m
|
||
|
–
|
CIB
total operating expenses increased 4% to £3,511m due to higher
performance costs that reflected an improvement in
returns
|
|
|
–
|
CC&P
total operating expenses increased 13% to £1,179m driven by
the impact of higher investment spend, including marketing, and
customer remediation costs related to a legacy
portfolio
|
●
|
Trading
portfolio assets increased £19.4bn to £147.1bn due to
increased activity
|
●
|
Derivative
financial instruments assets decreased £46.4bn and liabilities
decreased £53.5bn to £255.4bn and £246.9bn
respectively, driven by an increase in major interest rate
curves
|
●
|
Financial
assets at fair value through the income statement increased
£19.7bn to £190.4bn driven by increased secured
lending
|
●
|
Cash
collateral and settlements balances increased £11.0bn to
£108.5bn due to increased client activity
|
●
|
Deposits
at amortised cost increased £4.9bn to £245.4bn due to
clients increasing liquidity
|
●
|
RWAs
increased to £223.2bn (December 2020: £222.3bn) primarily
due to increased client and trading activity within CIB, partially
offset by the depreciation of period end EUR and USD against
GBP
|
1
|
Period covering Q114 – Q221. Pre 2014 financials were not
restated following re-segmentation in Q116.
|
2
|
Data source: Dealogic for the period covering 1 January to 30 June
2021.
|
●
|
Loss
before tax was £370m (H120: £425m)
|
●
|
Total
income was an expense of £102m (H120: £204m), which
primarily reflected hedge accounting, funding costs on legacy
capital instruments and treasury items, partially offset by
mark-to-market gains on legacy investments
|
●
|
Credit
impairment net release of £6m (H120: £55m charge) was
driven by an improved macroeconomic outlook used in the Q221
scenario refresh, resulting in a provision release for the Italian
home loan portfolio
|
●
|
Total
operating expenses were £405m (H120: £125m), which
included a charge of £266m relating to structural cost actions
taken as part of the real estate review
|
●
|
Other
net income was £131m (H120: £41m expense) driven by a
fair value gain in Barclays’ associate investment holding in
the Business Growth Fund
|
●
|
RWAs
were £11.1bn (December 2020: £10.2bn)
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
2,052
|
1,851
|
|
1,845
|
2,055
|
1,892
|
2,331
|
|
2,344
|
2,445
|
Net fee, commission and other income
|
3,363
|
4,049
|
|
3,096
|
3,149
|
3,446
|
3,952
|
|
2,957
|
3,096
|
Total income
|
5,415
|
5,900
|
|
4,941
|
5,204
|
5,338
|
6,283
|
|
5,301
|
5,541
|
Credit impairment releases/(charges)
|
797
|
(55)
|
|
(492)
|
(608)
|
(1,623)
|
(2,115)
|
|
(523)
|
(461)
|
Net operating income
|
6,212
|
5,845
|
|
4,449
|
4,596
|
3,715
|
4,168
|
|
4,778
|
5,080
|
Operating costs
|
(3,587)
|
(3,545)
|
|
(3,480)
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,308)
|
(3,293)
|
UK bank levy
|
—
|
—
|
|
(299)
|
—
|
—
|
—
|
|
(226)
|
—
|
Litigation and conduct
|
(66)
|
(33)
|
|
(47)
|
(76)
|
(20)
|
(10)
|
|
(167)
|
(1,568)
|
Total operating expenses
|
(3,653)
|
(3,578)
|
|
(3,826)
|
(3,467)
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
Other net income/(expenses)
|
21
|
132
|
|
23
|
18
|
(26)
|
8
|
|
20
|
27
|
Profit before tax
|
2,580
|
2,399
|
|
646
|
1,147
|
359
|
913
|
|
1,097
|
246
|
Tax charge
|
(263)
|
(496)
|
|
(163)
|
(328)
|
(42)
|
(71)
|
|
(189)
|
(269)
|
Profit/(loss) after tax
|
2,317
|
1,903
|
|
483
|
819
|
317
|
842
|
|
908
|
(23)
|
Non-controlling interests
|
(15)
|
(4)
|
|
(37)
|
(4)
|
(21)
|
(16)
|
|
(42)
|
(4)
|
Other equity instrument holders
|
(194)
|
(195)
|
|
(226)
|
(204)
|
(206)
|
(221)
|
|
(185)
|
(265)
|
Attributable profit/(loss)
|
2,108
|
1,704
|
|
220
|
611
|
90
|
605
|
|
681
|
(292)
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
18.1%
|
14.7%
|
|
1.8%
|
5.1%
|
0.7%
|
5.1%
|
|
5.9%
|
(2.4)%
|
Average tangible shareholders' equity (£bn)
|
46.5
|
46.5
|
|
47.6
|
48.3
|
50.2
|
47.0
|
|
46.4
|
48.4
|
Cost: income ratio
|
67%
|
61%
|
|
77%
|
67%
|
62%
|
52%
|
|
70%
|
88%
|
Loan loss rate (bps)
|
—
|
6
|
|
56
|
69
|
179
|
223
|
|
60
|
52
|
Basic earnings/(loss) per share
|
12.3p
|
9.9p
|
|
1.3p
|
3.5p
|
0.5p
|
3.5p
|
|
3.9p
|
(1.7)p
|
Basic weighted average number of shares (m)
|
17,140
|
17,293
|
|
17,300
|
17,298
|
17,294
|
17,278
|
|
17,200
|
17,192
|
Period end number of shares (m)
|
16,998
|
17,223
|
|
17,359
|
17,353
|
17,345
|
17,332
|
|
17,322
|
17,269
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital management1
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
348.5
|
345.8
|
|
342.6
|
344.4
|
354.9
|
374.1
|
|
339.1
|
345.1
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.8%
|
2.2%
|
|
2.4%
|
2.5%
|
2.5%
|
2.1%
|
|
1.8%
|
1.9%
|
Total assets
|
1,376.3
|
1,379.7
|
|
1,349.5
|
1,421.7
|
1,385.1
|
1,444.3
|
|
1,140.2
|
1,290.4
|
Deposits at amortised cost
|
500.9
|
498.8
|
|
481.0
|
494.6
|
466.9
|
470.7
|
|
415.8
|
420.6
|
Tangible net asset value per share
|
281p
|
267p
|
|
269p
|
275p
|
284p
|
284p
|
|
262p
|
274p
|
Common equity tier 1 ratio
|
15.1%
|
14.6%
|
|
15.1%
|
14.6%
|
14.2%
|
13.1%
|
|
13.8%
|
13.4%
|
Common equity tier 1 capital
|
46.2
|
45.9
|
|
46.3
|
45.5
|
45.4
|
42.5
|
|
40.8
|
41.9
|
Risk weighted assets
|
306.4
|
313.4
|
|
306.2
|
310.7
|
319.0
|
325.6
|
|
295.1
|
313.3
|
Average UK leverage ratio
|
4.8%
|
4.9%
|
|
5.0%
|
5.1%
|
4.7%
|
4.5%
|
|
4.5%
|
4.6%
|
Average UK leverage exposure
|
1,192.0
|
1,174.9
|
|
1,146.9
|
1,111.1
|
1,148.7
|
1,176.2
|
|
1,142.8
|
1,171.2
|
UK leverage ratio
|
5.0%
|
5.0%
|
|
5.3%
|
5.2%
|
5.2%
|
4.5%
|
|
5.1%
|
4.8%
|
UK leverage exposure
|
1,153.6
|
1,145.4
|
|
1,090.9
|
1,095.1
|
1,071.1
|
1,178.7
|
|
1,007.7
|
1,099.8
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
291
|
290
|
|
266
|
327
|
298
|
237
|
|
211
|
226
|
Liquidity coverage ratio
|
162%
|
161%
|
|
162%
|
181%
|
186%
|
155%
|
|
160%
|
151%
|
Loan: deposit ratio
|
70%
|
69%
|
|
71%
|
70%
|
76%
|
79%
|
|
82%
|
82%
|
1
|
Refer to pages 54 to 60 for further information on how capital,
RWAs and leverage are calculated.
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
1,305
|
1,281
|
|
1,317
|
1,280
|
1,225
|
1,412
|
|
1,478
|
1,503
|
Net fee, commission and other income
|
318
|
295
|
|
309
|
270
|
242
|
292
|
|
481
|
343
|
Total income
|
1,623
|
1,576
|
|
1,626
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
Credit impairment releases/(charges)
|
520
|
(77)
|
|
(170)
|
(233)
|
(583)
|
(481)
|
|
(190)
|
(101)
|
Net operating income
|
2,143
|
1,499
|
|
1,456
|
1,317
|
884
|
1,223
|
|
1,769
|
1,745
|
Operating costs
|
(1,078)
|
(1,036)
|
|
(1,134)
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,023)
|
(952)
|
UK bank levy
|
—
|
—
|
|
(50)
|
—
|
—
|
—
|
|
(41)
|
—
|
Litigation and conduct
|
(19)
|
(3)
|
|
4
|
(25)
|
(6)
|
(5)
|
|
(58)
|
(1,480)
|
Total operating expenses
|
(1,097)
|
(1,039)
|
|
(1,180)
|
(1,120)
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
Other net income/(expenses)
|
—
|
—
|
|
6
|
(1)
|
13
|
—
|
|
—
|
—
|
Profit/(loss) before tax
|
1,046
|
460
|
|
282
|
196
|
(127)
|
195
|
|
647
|
(687)
|
Attributable profit/(loss)
|
721
|
298
|
|
160
|
113
|
(123)
|
175
|
|
438
|
(907)
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
207.8
|
205.7
|
|
205.4
|
203.9
|
202.0
|
195.7
|
|
193.7
|
193.2
|
Total assets
|
311.2
|
309.1
|
|
289.1
|
294.5
|
287.6
|
267.5
|
|
257.8
|
257.9
|
Customer deposits at amortised cost
|
255.5
|
247.5
|
|
240.5
|
232.0
|
225.7
|
207.5
|
|
205.5
|
203.3
|
Loan: deposit ratio
|
87%
|
88%
|
|
89%
|
91%
|
92%
|
96%
|
|
96%
|
97%
|
Risk weighted assets
|
72.2
|
72.7
|
|
73.7
|
76.2
|
77.9
|
77.7
|
|
74.9
|
76.8
|
Period end allocated tangible equity
|
9.9
|
10.0
|
|
9.7
|
10.0
|
10.3
|
10.3
|
|
10.3
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
29.1%
|
12.0%
|
|
6.5%
|
4.5%
|
(4.8)%
|
6.9%
|
|
17.0%
|
(34.9)%
|
Average allocated tangible equity (£bn)
|
9.9
|
9.9
|
|
9.8
|
10.1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
Cost: income ratio
|
68%
|
66%
|
|
73%
|
72%
|
70%
|
60%
|
|
57%
|
132%
|
Loan loss rate (bps)
|
—
|
14
|
|
31
|
43
|
111
|
96
|
|
38
|
20
|
Net interest margin
|
2.55%
|
2.54%
|
|
2.56%
|
2.51%
|
2.48%
|
2.91%
|
|
3.03%
|
3.10%
|
Analysis of Barclays UK
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Analysis of total income
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Personal Banking
|
987
|
923
|
|
895
|
833
|
826
|
968
|
|
1,064
|
1,035
|
Barclaycard Consumer UK
|
290
|
315
|
|
354
|
362
|
367
|
436
|
|
533
|
472
|
Business Banking
|
346
|
338
|
|
377
|
355
|
274
|
300
|
|
362
|
339
|
Total income
|
1,623
|
1,576
|
|
1,626
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment releases/(charges)
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
72
|
(22)
|
|
(68)
|
(48)
|
(130)
|
(134)
|
|
(71)
|
(36)
|
Barclaycard Consumer UK
|
434
|
(36)
|
|
(78)
|
(106)
|
(396)
|
(301)
|
|
(108)
|
(49)
|
Business Banking
|
14
|
(19)
|
|
(24)
|
(79)
|
(57)
|
(46)
|
|
(11)
|
(16)
|
Total credit impairment releases/(charges)
|
520
|
(77)
|
|
(170)
|
(233)
|
(583)
|
(481)
|
|
(190)
|
(101)
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Personal Banking
|
162.4
|
160.4
|
|
157.3
|
155.7
|
154.9
|
153.4
|
|
151.9
|
150.1
|
Barclaycard Consumer UK
|
8.8
|
8.7
|
|
9.9
|
10.7
|
11.5
|
13.6
|
|
14.7
|
14.9
|
Business Banking
|
36.6
|
36.6
|
|
38.2
|
37.5
|
35.6
|
28.7
|
|
27.1
|
28.2
|
Total loans and advances to customers at amortised
cost
|
207.8
|
205.7
|
|
205.4
|
203.9
|
202.0
|
195.7
|
|
193.7
|
193.2
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
191.0
|
186.0
|
|
179.7
|
173.2
|
169.6
|
161.4
|
|
159.2
|
157.9
|
Barclaycard Consumer UK
|
0.1
|
0.1
|
|
0.1
|
0.1
|
0.1
|
—
|
|
—
|
—
|
Business Banking
|
64.4
|
61.4
|
|
60.7
|
58.7
|
56.0
|
46.1
|
|
46.3
|
45.4
|
Total customer deposits at amortised cost
|
255.5
|
247.5
|
|
240.5
|
232.0
|
225.7
|
207.5
|
|
205.5
|
203.3
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
811
|
748
|
|
614
|
823
|
847
|
998
|
|
965
|
1,059
|
Net trading income
|
1,455
|
1,934
|
|
1,372
|
1,528
|
1,660
|
2,360
|
|
929
|
1,110
|
Net fee, commission and other income
|
1,553
|
1,717
|
|
1,500
|
1,430
|
1,503
|
1,286
|
|
1,558
|
1,581
|
Total income
|
3,819
|
4,399
|
|
3,486
|
3,781
|
4,010
|
4,644
|
|
3,452
|
3,750
|
Credit impairment releases/(charges)
|
271
|
22
|
|
(291)
|
(370)
|
(1,010)
|
(1,609)
|
|
(329)
|
(352)
|
Net operating income
|
4,090
|
4,421
|
|
3,195
|
3,411
|
3,000
|
3,035
|
|
3,123
|
3,398
|
Operating costs
|
(2,168)
|
(2,438)
|
|
(2,133)
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,240)
|
(2,282)
|
UK bank levy
|
—
|
—
|
|
(240)
|
—
|
—
|
—
|
|
(174)
|
—
|
Litigation and conduct
|
(63)
|
(21)
|
|
(9)
|
(28)
|
(11)
|
—
|
|
(86)
|
—
|
Total operating expenses
|
(2,231)
|
(2,459)
|
|
(2,382)
|
(2,255)
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
Other net income
|
13
|
9
|
|
9
|
9
|
4
|
6
|
|
17
|
21
|
Profit before tax
|
1,872
|
1,971
|
|
822
|
1,165
|
807
|
822
|
|
640
|
1,137
|
Attributable profit
|
1,267
|
1,431
|
|
441
|
782
|
468
|
529
|
|
397
|
799
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
121.9
|
123.5
|
|
122.7
|
128.0
|
138.1
|
167.0
|
|
132.8
|
138.1
|
Trading portfolio assets
|
147.1
|
131.1
|
|
127.7
|
122.3
|
109.5
|
101.6
|
|
113.3
|
119.4
|
Derivative financial instrument assets
|
255.4
|
269.4
|
|
301.8
|
295.9
|
306.8
|
341.5
|
|
228.9
|
286.0
|
Financial assets at fair value through the income
statement
|
190.4
|
197.5
|
|
170.7
|
178.2
|
154.3
|
188.4
|
|
128.4
|
158.0
|
Cash collateral and settlement balances
|
108.5
|
109.7
|
|
97.5
|
121.8
|
130.8
|
153.2
|
|
79.4
|
112.5
|
Other assets
|
223.5
|
221.7
|
|
221.4
|
261.7
|
236.3
|
201.5
|
|
178.6
|
195.6
|
Total assets
|
1,046.8
|
1,052.9
|
|
1,041.8
|
1,107.9
|
1,075.8
|
1,153.2
|
|
861.4
|
1,009.6
|
Deposits at amortised cost
|
245.4
|
251.2
|
|
240.5
|
262.4
|
241.2
|
263.3
|
|
210.0
|
217.6
|
Derivative financial instrument liabilities
|
246.9
|
260.2
|
|
300.4
|
293.3
|
307.6
|
338.8
|
|
228.9
|
283.3
|
Loan: deposit ratio
|
50%
|
49%
|
|
51%
|
49%
|
57%
|
63%
|
|
63%
|
63%
|
Risk weighted assets
|
223.2
|
230.0
|
|
222.3
|
224.7
|
231.2
|
237.9
|
|
209.2
|
223.1
|
Period end allocated tangible equity
|
31.8
|
32.7
|
|
30.2
|
30.5
|
31.6
|
33.1
|
|
29.6
|
31.4
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
15.6%
|
17.7%
|
|
5.8%
|
10.2%
|
5.6%
|
6.8%
|
|
5.1%
|
9.9%
|
Average allocated tangible equity (£bn)
|
32.4
|
32.3
|
|
30.5
|
30.6
|
33.5
|
31.2
|
|
30.9
|
32.2
|
Cost: income ratio
|
58%
|
56%
|
|
68%
|
60%
|
55%
|
48%
|
|
72%
|
61%
|
Loan loss rate (bps)
|
—
|
(7)
|
|
90
|
112
|
284
|
377
|
|
96
|
99
|
Net interest margin
|
3.96%
|
3.92%
|
|
3.41%
|
3.79%
|
3.43%
|
3.93%
|
|
4.29%
|
4.10%
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
370
|
270
|
|
110
|
305
|
334
|
335
|
|
248
|
339
|
Net trading income
|
1,494
|
1,917
|
|
1,397
|
1,535
|
1,812
|
2,231
|
|
951
|
1,126
|
Net fee, commission and other income
|
1,115
|
1,407
|
|
1,131
|
1,065
|
1,170
|
1,051
|
|
1,115
|
1,152
|
Total income
|
2,979
|
3,594
|
|
2,638
|
2,905
|
3,316
|
3,617
|
|
2,314
|
2,617
|
Credit impairment releases/(charges)
|
229
|
43
|
|
(52)
|
(187)
|
(596)
|
(724)
|
|
(30)
|
(31)
|
Net operating income
|
3,208
|
3,637
|
|
2,586
|
2,718
|
2,720
|
2,893
|
|
2,284
|
2,586
|
Operating costs
|
(1,623)
|
(1,886)
|
|
(1,603)
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,691)
|
(1,712)
|
UK bank levy
|
—
|
—
|
|
(226)
|
—
|
—
|
—
|
|
(156)
|
—
|
Litigation and conduct
|
(1)
|
(1)
|
|
2
|
(3)
|
(3)
|
—
|
|
(79)
|
(4)
|
Total operating expenses
|
(1,624)
|
(1,887)
|
|
(1,827)
|
(1,719)
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
Other net income
|
—
|
1
|
|
2
|
1
|
3
|
—
|
|
1
|
12
|
Profit before tax
|
1,584
|
1,751
|
|
761
|
1,000
|
1,040
|
1,203
|
|
359
|
882
|
Attributable profit
|
1,049
|
1,263
|
|
413
|
627
|
694
|
820
|
|
193
|
609
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
91.0
|
94.3
|
|
92.4
|
96.8
|
104.9
|
128.2
|
|
92.0
|
95.8
|
Trading portfolio assets
|
147.0
|
130.9
|
|
127.5
|
122.2
|
109.3
|
101.5
|
|
113.3
|
119.3
|
Derivative financial instruments assets
|
255.3
|
269.4
|
|
301.7
|
295.9
|
306.7
|
341.4
|
|
228.8
|
286.0
|
Financial assets at fair value through the income
statement
|
190.3
|
197.3
|
|
170.4
|
177.9
|
153.7
|
187.8
|
|
127.7
|
157.3
|
Cash collateral and settlement balances
|
107.7
|
108.8
|
|
96.7
|
121.0
|
129.7
|
152.2
|
|
78.5
|
111.6
|
Other assets
|
192.5
|
190.8
|
|
194.9
|
228.9
|
205.5
|
171.4
|
|
155.3
|
171.5
|
Total assets
|
983.8
|
991.5
|
|
983.6
|
1,042.7
|
1,009.8
|
1,082.5
|
|
795.6
|
941.5
|
Deposits at amortised cost
|
178.2
|
185.2
|
|
175.2
|
195.6
|
173.9
|
198.4
|
|
146.2
|
152.1
|
Derivative financial instrument liabilities
|
246.8
|
260.2
|
|
300.3
|
293.2
|
307.6
|
338.7
|
|
228.9
|
283.2
|
Risk weighted assets
|
194.3
|
201.3
|
|
192.2
|
193.3
|
198.3
|
201.7
|
|
171.5
|
184.9
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.8%
|
17.9%
|
|
6.3%
|
9.5%
|
9.6%
|
12.5%
|
|
3.0%
|
9.1%
|
Average allocated tangible equity (£bn)
|
28.4
|
28.2
|
|
26.3
|
26.4
|
29.0
|
26.2
|
|
25.8
|
26.9
|
Cost: income ratio
|
55%
|
53%
|
|
69%
|
59%
|
51%
|
47%
|
|
83%
|
66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
FICC
|
895
|
1,204
|
|
812
|
1,000
|
1,468
|
1,858
|
|
726
|
816
|
Equities
|
777
|
932
|
|
542
|
691
|
674
|
564
|
|
409
|
494
|
Global Markets1
|
1,672
|
2,136
|
|
1,354
|
1,691
|
2,142
|
2,422
|
|
1,135
|
1,310
|
Advisory
|
218
|
163
|
|
232
|
90
|
84
|
155
|
|
202
|
221
|
Equity capital markets
|
226
|
243
|
|
104
|
122
|
185
|
62
|
|
56
|
86
|
Debt capital markets
|
429
|
453
|
|
418
|
398
|
463
|
418
|
|
322
|
381
|
Investment Banking fees1
|
873
|
859
|
|
754
|
610
|
732
|
635
|
|
580
|
688
|
Corporate lending
|
38
|
206
|
|
186
|
232
|
61
|
111
|
|
202
|
195
|
Transaction banking
|
396
|
393
|
|
344
|
372
|
381
|
449
|
|
397
|
424
|
Corporate
|
434
|
599
|
|
530
|
604
|
442
|
560
|
|
599
|
619
|
Total income
|
2,979
|
3,594
|
|
2,638
|
2,905
|
3,316
|
3,617
|
|
2,314
|
2,617
|
1
|
Previously labelled as “Markets” and “Banking
fees”.
|
Analysis of Barclays International
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
441
|
478
|
|
504
|
518
|
513
|
663
|
|
717
|
720
|
Net fee, commission, trading and other income
|
399
|
327
|
|
344
|
358
|
181
|
364
|
|
421
|
413
|
Total income
|
840
|
805
|
|
848
|
876
|
694
|
1,027
|
|
1,138
|
1,133
|
Credit impairment releases/(charges)
|
42
|
(21)
|
|
(239)
|
(183)
|
(414)
|
(885)
|
|
(299)
|
(321)
|
Net operating income
|
882
|
784
|
|
609
|
693
|
280
|
142
|
|
839
|
812
|
Operating costs
|
(545)
|
(552)
|
|
(530)
|
(511)
|
(506)
|
(529)
|
|
(549)
|
(570)
|
UK bank levy
|
—
|
—
|
|
(14)
|
—
|
—
|
—
|
|
(18)
|
—
|
Litigation and conduct
|
(62)
|
(20)
|
|
(11)
|
(25)
|
(8)
|
—
|
|
(7)
|
4
|
Total operating expenses
|
(607)
|
(572)
|
|
(555)
|
(536)
|
(514)
|
(529)
|
|
(574)
|
(566)
|
Other net income
|
13
|
8
|
|
7
|
8
|
1
|
6
|
|
16
|
9
|
Profit/(loss) before tax
|
288
|
220
|
|
61
|
165
|
(233)
|
(381)
|
|
281
|
255
|
Attributable profit/(loss)
|
218
|
168
|
|
28
|
155
|
(226)
|
(291)
|
|
204
|
190
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
30.9
|
29.2
|
|
30.3
|
31.2
|
33.2
|
38.8
|
|
40.8
|
42.3
|
Total assets
|
63.0
|
61.4
|
|
58.2
|
65.2
|
66.0
|
70.7
|
|
65.8
|
68.1
|
Deposits at amortised cost
|
67.2
|
66.0
|
|
65.3
|
66.8
|
67.3
|
64.9
|
|
63.8
|
65.5
|
Risk weighted assets
|
29.0
|
28.8
|
|
30.1
|
31.4
|
32.9
|
36.2
|
|
37.7
|
38.2
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
21.8%
|
16.5%
|
|
2.7%
|
14.7%
|
(20.2)%
|
(23.5)%
|
|
15.9%
|
14.2%
|
Average allocated tangible equity (£bn)
|
4.0
|
4.1
|
|
4.2
|
4.2
|
4.5
|
5.0
|
|
5.1
|
5.3
|
Cost: income ratio
|
72%
|
71%
|
|
65%
|
61%
|
74%
|
52%
|
|
50%
|
50%
|
Loan loss rate (bps)
|
—
|
27
|
|
286
|
211
|
455
|
846
|
|
273
|
283
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Income statement information
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Net interest income
|
(64)
|
(178)
|
|
(86)
|
(48)
|
(180)
|
(79)
|
|
(99)
|
(117)
|
Net fee, commission and other income
|
37
|
103
|
|
(85)
|
(79)
|
41
|
14
|
|
(11)
|
62
|
Total income
|
(27)
|
(75)
|
|
(171)
|
(127)
|
(139)
|
(65)
|
|
(110)
|
(55)
|
Credit impairment releases/(charges)
|
6
|
—
|
|
(31)
|
(5)
|
(30)
|
(25)
|
|
(4)
|
(8)
|
Net operating expenses
|
(21)
|
(75)
|
|
(202)
|
(132)
|
(169)
|
(90)
|
|
(114)
|
(63)
|
Operating costs
|
(341)
|
(71)
|
|
(213)
|
(69)
|
(106)
|
(11)
|
|
(45)
|
(59)
|
UK bank levy
|
—
|
—
|
|
(9)
|
—
|
—
|
—
|
|
(11)
|
—
|
Litigation and conduct
|
16
|
(9)
|
|
(42)
|
(23)
|
(3)
|
(5)
|
|
(23)
|
(88)
|
Total operating expenses
|
(325)
|
(80)
|
|
(264)
|
(92)
|
(109)
|
(16)
|
|
(79)
|
(147)
|
Other net income/(expenses)
|
8
|
123
|
|
8
|
10
|
(43)
|
2
|
|
3
|
6
|
Loss before tax
|
(338)
|
(32)
|
|
(458)
|
(214)
|
(321)
|
(104)
|
|
(190)
|
(204)
|
Attributable profit/(loss)
|
120
|
(25)
|
|
(381)
|
(284)
|
(255)
|
(99)
|
|
(154)
|
(184)
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Total assets
|
18.3
|
17.7
|
|
18.6
|
19.3
|
21.7
|
23.6
|
|
21.0
|
22.9
|
Risk weighted assets
|
11.1
|
10.7
|
|
10.2
|
9.8
|
9.9
|
10.0
|
|
11.0
|
13.4
|
Period end allocated tangible equity
|
5.9
|
3.3
|
|
6.8
|
7.1
|
7.4
|
6.0
|
|
5.6
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
4.2
|
4.3
|
|
7.3
|
7.6
|
6.4
|
5.6
|
|
5.2
|
5.8
|
Margins and balances
|
|
|
|
|
|
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
||||
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
2,586
|
204,930
|
2.54
|
2,637
|
197,023
|
2.69
|
Barclays
International1,2
|
1,518
|
77,413
|
3.95
|
1,848
|
101,286
|
3.67
|
Total Barclays UK and Barclays International
|
4,104
|
282,343
|
2.93
|
4,485
|
298,309
|
3.02
|
Other3
|
(201)
|
|
|
(262)
|
|
|
Total Barclays Group
|
3,903
|
|
|
4,223
|
|
|
1
|
Barclays International margins include IEL balances within the
investment banking business.
|
2
|
Barclays amended the presentation of the premium paid for purchased
financial guarantees which are embedded in notes it issues directly
to the market in Q420 from net investment income to interest
expense within net interest income. Had the equivalent H120
interest expense been recognised in net interest income, the
Barclays International and Total Barclays UK and Barclays
International NIMs would have been 3.57% and 2.99%
respectively.
|
3
|
Other includes Head Office and non-lending related investment
banking businesses not included in Barclays International
margins.
|
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Three months ended 30.06.21
|
£m
|
£m
|
%
|
Barclays UK
|
1,305
|
205,168
|
2.55
|
Barclays
International1
|
763
|
77,330
|
3.96
|
Total Barclays UK and Barclays International
|
2,068
|
282,498
|
2.94
|
|
|
|
|
Three months ended 31.03.21
|
|
|
|
Barclays UK
|
1,281
|
204,663
|
2.54
|
Barclays
International1
|
755
|
78,230
|
3.92
|
Total Barclays UK and Barclays International
|
2,036
|
282,893
|
2.92
|
|
|
|
|
Three months ended 31.12.20
|
|
|
|
Barclays UK
|
1,317
|
204,315
|
2.56
|
Barclays
International1,2
|
696
|
81,312
|
3.41
|
Total Barclays UK and Barclays International
|
2,013
|
285,627
|
2.80
|
|
|
|
|
Three months ended 30.09.20
|
|
|
|
Barclays UK
|
1,280
|
203,089
|
2.51
|
Barclays
International1,2
|
838
|
88,032
|
3.79
|
Total Barclays UK and Barclays International
|
2,118
|
291,121
|
2.89
|
|
|
|
|
Three months ended 30.06.20
|
|
|
|
Barclays UK
|
1,225
|
199,039
|
2.48
|
Barclays
International1,2
|
868
|
101,706
|
3.43
|
Total Barclays UK and Barclays International
|
2,093
|
300,745
|
2.80
|
1
|
Barclays International margins include IEL balances within the
investment banking business.
|
2
|
The reclassification of expense of the premium paid for purchased
financial guarantees from net investment income to net interest
income was recognised in full in Q420 and resulted in a 0.48%
reduction on the Q420 Barclays International NIM and 0.14%
reduction on the Q420 Total Barclays UK and Barclays International
NIM. Had the equivalent impact been reflected in the respective
quarters, the Barclays International NIM would have been 3.33% in
Q220, 3.68% in Q320 and 3.77% in Q420. Total Barclays UK and
Barclays International NIMs would have been 2.77% in Q220, 2.86% in
Q320 and 2.91% in Q420 respectively.
|
●
|
Conduct risk: in undertaking actions to transition away from
using certain reference rates (such as LIBOR) to new alternative
RFRs, the Group faces conduct risks. These may lead to customer
complaints, regulatory sanctions or reputational impact if the
Group is considered to be (among other things) (i) undertaking
market activities that are manipulative or create a false or
misleading impression, (ii) misusing sensitive information or not
identifying or appropriately managing or mitigating conflicts of
interest, (iii) providing customers with inadequate advice,
misleading information, unsuitable products or unacceptable
service, (iv) not taking a consistent approach to remediation for
customers in similar circumstances, (v) unduly delaying the
communication and migration activities in relation to client
exposure, leaving them insufficient time to prepare, or (vi)
colluding or inappropriately sharing information with
competitors
|
●
|
Litigation risk: members of the Group may face legal
proceedings, regulatory investigations and/or other actions or
proceedings regarding (among other things) (i) the conduct risks
identified above, (ii) the interpretation and enforceability of
provisions in LIBOR-based contracts, and (iii) the Group’s
preparation and readiness for the replacement of LIBOR with
alternative RFRs
|
●
|
Financial risk: the valuation of certain of the
Group’s financial assets and liabilities may change.
Moreover, transitioning to alternative RFRs may impact the ability
of members of the Group to calculate and model amounts receivable
by them on certain financial assets and determine the amounts
payable on certain financial liabilities (such as debt securities
issued by them) because currently alternative RFRs (such as the
Sterling Overnight Index Average (SONIA) and the Secured Overnight
Financing Rate (SOFR)) are look-back rates whereas term rates (such
as LIBOR) allow borrowers to calculate at the start of any interest
period exactly how much is payable at the end of such interest
period. This may have a material adverse effect on the
Group’s cash flows
|
●
|
Pricing risk: changes to existing reference rates and
indices, discontinuation of any reference rate or indices and
transition to alternative RFRs may impact the pricing mechanisms
used by the Group on certain transactions
|
●
|
Operational risk: changes to existing reference rates and
indices, discontinuation of any reference rate or index and
transition to alternative RFRs may require changes to the
Group’s IT systems, trade reporting infrastructure,
operational processes, and controls. In addition, if any reference
rate or index (such as LIBOR) is no longer available to calculate
amounts payable, the Group may incur additional expenses in
amending documentation for new and existing transactions and/or
effecting the transition from the original reference rate or index
to a new reference rate or index
|
●
|
Accounting risk: an inability to apply hedge accounting in
accordance with IAS 39 could lead to increased volatility in the
Group’s financial results and performance
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual basis, and excludes Business Banking exposures that are
managed on a collective basis. The net impact is a difference in
total exposure of £7,796m of balances reported as wholesale
loans on page 29 in the Loans and advances at amortised cost by
product disclosure.
|
2
|
Excludes loan commitments and financial guarantees of £21bn
carried at fair value.
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£186.0bn and impairment allowance of £114m. This
comprises £9m ECL on £185.8bn Stage 1 assets, £3m on
£58m Stage 2 fair value through other comprehensive income
assets, cash collateral and settlement balances and £102m on
£109m Stage 3 other assets.
|
1
|
Private Banking have refined the methodology to classify £5bn
of their exposure between Wholesale and Retail during the
year.
|
2
|
Includes Wealth and Private Banking exposures measured on an
individual basis, and excludes Business Banking exposures that are
managed on a collective basis. The net impact is a difference in
total exposure of £7,551m of balances reported as wholesale
loans on page 29 in the Loans and advances at amortised cost by
product disclosure.
|
3
|
Excludes loan commitments and financial guarantees of £9.5bn
carried at fair value.
|
4
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.3bn and impairment allowance of £165m. This
comprises £11m ECL on £175.7bn Stage 1 assets, £9m
on £4.4bn Stage 2 fair value through other comprehensive
income assets, other assets and cash collateral and settlement
balances and £145m on £154m Stage 3 other
assets.
|
5
|
The loan loss rate is 138 bps after applying the total impairment
charge of £4,838m.
|
|
|
Stage 2
|
|
|
|||
As at 30.06.21
|
Stage 1
|
Not past due
|
<=30 days past due
|
>30 days past due
|
Total
|
Stage 3
|
Total
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
144,103
|
17,991
|
1,666
|
823
|
20,480
|
2,235
|
166,818
|
Credit cards, unsecured loans and other retail lending
|
34,537
|
5,642
|
300
|
209
|
6,151
|
2,773
|
43,461
|
Wholesale loans
|
126,342
|
14,760
|
529
|
391
|
15,680
|
2,765
|
144,787
|
Total
|
304,982
|
38,393
|
2,495
|
1,423
|
42,311
|
7,773
|
355,066
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home loans
|
15
|
56
|
6
|
7
|
69
|
389
|
473
|
Credit cards, unsecured loans and other retail lending
|
834
|
1,547
|
100
|
120
|
1,767
|
1,852
|
4,453
|
Wholesale loans
|
336
|
381
|
5
|
11
|
397
|
858
|
1,591
|
Total
|
1,185
|
1,984
|
111
|
138
|
2,233
|
3,099
|
6,517
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
144,088
|
17,935
|
1,660
|
816
|
20,411
|
1,846
|
166,345
|
Credit cards, unsecured loans and other retail lending
|
33,703
|
4,095
|
200
|
89
|
4,384
|
921
|
39,008
|
Wholesale loans
|
126,006
|
14,379
|
524
|
380
|
15,283
|
1,907
|
143,196
|
Total
|
303,797
|
36,409
|
2,384
|
1,285
|
40,078
|
4,674
|
348,549
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
—
|
0.3
|
0.4
|
0.9
|
0.3
|
17.4
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
2.4
|
27.4
|
33.3
|
57.4
|
28.7
|
66.8
|
10.2
|
Wholesale loans
|
0.3
|
2.6
|
0.9
|
2.8
|
2.5
|
31.0
|
1.1
|
Total
|
0.4
|
5.2
|
4.4
|
9.7
|
5.3
|
39.9
|
1.8
|
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
138,639
|
16,651
|
1,785
|
876
|
19,312
|
2,234
|
160,185
|
Credit cards, unsecured loans and other retail lending
|
33,021
|
9,470
|
544
|
306
|
10,320
|
3,172
|
46,513
|
Wholesale loans
|
119,304
|
19,501
|
1,097
|
776
|
21,374
|
3,591
|
144,269
|
Total
|
290,964
|
45,622
|
3,426
|
1,958
|
51,006
|
8,997
|
350,967
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home Loans
|
33
|
57
|
13
|
14
|
84
|
421
|
538
|
Credit cards, unsecured loans and other retail lending
|
680
|
2,382
|
180
|
207
|
2,769
|
2,251
|
5,700
|
Wholesale Loans
|
320
|
650
|
50
|
11
|
711
|
1,066
|
2,097
|
Total
|
1,033
|
3,089
|
243
|
232
|
3,564
|
3,738
|
8,335
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
138,606
|
16,594
|
1,772
|
862
|
19,228
|
1,813
|
159,647
|
Credit cards, unsecured loans and other retail lending
|
32,341
|
7,088
|
364
|
99
|
7,551
|
921
|
40,813
|
Wholesale loans
|
118,984
|
18,851
|
1,047
|
765
|
20,663
|
2,525
|
142,172
|
Total
|
289,931
|
42,533
|
3,183
|
1,726
|
47,442
|
5,259
|
342,632
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
—
|
0.3
|
0.7
|
1.6
|
0.4
|
18.8
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
2.1
|
25.2
|
33.1
|
67.6
|
26.8
|
71.0
|
12.3
|
Wholesale loans
|
0.3
|
3.3
|
4.6
|
1.4
|
3.3
|
29.7
|
1.5
|
Total
|
0.4
|
6.8
|
7.1
|
11.8
|
7.0
|
41.5
|
2.4
|
1
|
Changes to models used for calculation include a £34m movement
in Home loans, £24m in Credit cards, unsecured loans and other
retail lending and £36m in Wholesale loans. These reflect
methodology changes made during the year. Barclays continually
review the output of models to determine accuracy of the ECL
calculation including review of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This ensures that the models used continue to
reflect the risks inherent across the businesses.
|
2
|
In H121, gross write-offs amounted to £1,001m (H120:
£953m) and post write-off recoveries amounted to £31m
(H120: £15m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £970m (H120:
£938m).
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£186.0bn (December 2020: £180.3bn) and impairment
allowance of £114m (December 2020: £165m). This comprises
£9m ECL (December 2020: £11m) on £185.8bn stage 1
assets (December 2020: £175.7bn), £3m (December 2020:
£9m) on £58m stage 2 fair value through other
comprehensive income assets, other assets and cash collateral and
settlement balances (December 2020: £4.4bn) and £102m
(December 2020: £145m) on £109m stage 3 other assets
(December 2020: £154m).
|
4
|
Transfers and risk parameter changes include a £0.3bn net
release in ECL arising from a reclassification of £2.2bn gross
loans and advances from Stage 2 to Stage 1 in Credit cards,
unsecured loans and other retail lending. The reclassification
followed a review of back-testing of results which indicated that
accuracy of origination probability of default characteristics
require management adjustments to correct and was first established
in Q220.
|
5
|
The £101m disposals reported within Credit cards, unsecured
loans and other retail lending portfolio relates to debt sales
undertaken during the year. The £1.7bn disposal reported
within Wholesale loans includes a sale of £0.7bn debt
securities as part of Group Treasury Operations and a £1.0bn
sale of Barclays Asset Finance.
|
1
|
Changes to models used for calculation include a £34m movement
in Home Loans, £24m in Credit cards, unsecured loans and other
retail lending and £36m in Wholesale loans. These reflect
methodology changes made during the year. Barclays continually
review the output of models to determine accuracy of the ECL
calculation including review of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This ensures that the models used continue to
reflect the risks inherent across the businesses.
|
2
|
The £101m disposals reported within Credit cards, unsecured
loans and other retail lending portfolio relates to debt sales
undertaken during the year. The £1.7bn disposal reported
within Wholesale loans includes a sale of £0.7bn debt
securities as part of Group Treasury Operations and a £1.0bn
sale of Barclays Asset Finance.
|
3
|
In H121, gross write-offs amounted to £1,001m (H120:
£953m) and post write-off recoveries amounted to £31m
(H120: £15m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £970m (H120:
£938m).
|
4
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£186.0bn (December 2020: £180.3bn) and impairment
allowance of £114m (December 2020: £165m). This comprises
£9m ECL (December 2020: £11m) on £185.8bn stage 1
assets (December 2020: £175.7bn), £3m (December 2020:
£9m) on £58m stage 2 fair value through other
comprehensive income assets, other assets and cash collateral and
settlement balances (December 2020: £4.4bn) and £102m
(December 2020: £145m) on £109m stage 3 other assets
(December 2020: £154m).
|
5
|
Recoveries and reimbursements includes a net loss in relation to
reimbursements from financial guarantee contracts held with third
parties of £216m (H120 gain: £279m) and post write off
recoveries of £31m (H120: £15m).
|
6
|
Includes foreign exchange and interest and fees in
suspense.
|
|
As at 30.06.21
|
As at 31.12.20
|
||
|
Management adjustments to impairment allowances
|
Proportion of total impairment allowances
|
Management adjustments to impairment allowances
|
Proportion of total impairment allowances
|
|
£m
|
%
|
£m
|
%
|
Home loans
|
83
|
17.5
|
131
|
24.3
|
Credit cards, unsecured loans and other retail lending
|
1,145
|
24.5
|
1,234
|
20.3
|
Wholesale loans
|
643
|
30.9
|
23
|
0.8
|
Total
|
1,871
|
25.9
|
1,388
|
14.8
|
|
Impairment allowance pre management
adjustments2
|
Economic uncertainty adjustments
|
Other adjustments
|
Total impairment allowance
|
As at 30.06.21
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
390
|
41
|
42
|
473
|
Credit cards, unsecured loans and other retail lending
|
3,534
|
1,398
|
(253)
|
4,679
|
Wholesale loans
|
1,435
|
651
|
(8)
|
2,078
|
Total
|
5,359
|
2,090
|
(219)
|
7,230
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
Home loans
|
407
|
21
|
110
|
538
|
Credit cards, unsecured loans and other retail lending
|
4,849
|
1,625
|
(391)
|
6,083
|
Wholesale loans
|
2,755
|
421
|
(398)
|
2,778
|
Total
|
8,011
|
2,067
|
(679)
|
9,399
|
1
|
Positive values reflect an increase in impairment
allowance.
|
2
|
Includes £4.3bn (December 2020: £6.8bn) of modelled ECL,
£0.8bn (December 2020: £0.9bn) of individually assessed
impairments and £0.3bn (December 2020: £0.3bn) ECL from
non-modelled exposures.
|
●
|
A
£1.2bn adjustment has been applied to customers and clients
considered potentially vulnerable to the withdrawal of government
and other support schemes. In US consumer card portfolios, the
populations identified are those who have higher potential risk
indicators and in the UK we have specifically considered the impact
of furlough schemes ending (equivalent to UK unemployment
increasing to 7.2%). In wholesale portfolios, the populations
identified are specific clients who may exhibit greater cross
default risk between COVID-19 and other financing exposures,
including clients with Bounce Back Loans in Business Banking, and
those corporate sectors deemed more vulnerable to the economic
impacts of COVID-19. This adjustment is split between credit cards
and unsecured loans, £0.9bn, and wholesale loans,
£0.3bn
|
●
|
Expert
judgement has been used to adjust the probability of default at
portfolio level to pre-COVID-19 levels to reflect the impact of
temporary support measures on underlying customer and client
behaviour. Following a refinement to methodology, this has reduced
to £0.5bn from £0.7bn in December 2020. A £(0.1)bn
PMA to recognise government guarantees remains in
place
|
●
|
Macroeconomic
variables which may be temporarily influenced by support measures
have been adjusted at a portfolio level enabling the model to
consume the economic stress. This is reduced to £0.5bn from
£1.2bn at December 2020 as management judgements have been
refined towards potentially vulnerable customers and clients as the
pandemic evolves
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in average yearly US HPI = FHFA House Price Index, relative
to prior year end.
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in average yearly US HPI = FHFA house price index, relative
to prior year end.
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in average yearly US HPI = FHFA House Price Index, relative
to prior year end.
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in average yearly US HPI = FHFA House Price Index, relative
to prior year end.
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in average yearly US HPI = FHFA House Price Index, relative
to prior year end.
|
Scenario probability weighting
|
|||||
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
%
|
%
|
%
|
%
|
%
|
As at 30.06.21
|
|
|
|
|
|
Scenario probability weighting
|
19.6
|
24.5
|
26.4
|
16.9
|
12.6
|
As at 31.12.20
|
|
|
|
|
|
Scenario probability weighting
|
20.2
|
24.2
|
24.7
|
15.5
|
15.4
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index. 20 quarter period starts from Q121 (2020:
Q120).
|
2
|
Maximum growth relative to Q420 (2020: Q419), based on 20 quarter
period in Upside scenarios; 5-year yearly average Compound Annual
Growth Rate (CAGR) in Baseline; minimum growth relative to Q420
(2020: Q419), based on 20 quarter period in Downside
scenarios.
|
3
|
Lowest quarter in 20 quarter period in Upside scenarios; 5-year
average in Baseline; highest quarter in 20 quarter period in
Downside scenarios.
|
4
|
Maximum growth relative to Q420 (2020: Q419), based on 20 quarter
period in Upside scenarios; 5-year quarter end CAGR in Baseline;
minimum growth relative to Q420 (2020: Q419), based on 20 quarter
period in Downside scenarios.
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index.
|
2
|
5-year yearly average CAGR, starting 2020 (2020:
2019).
|
3
|
5-year average. Period based on 20 quarters from Q121 (2020:
Q120).
|
4
|
5-year quarter end CAGR, starting Q420 (2020: Q419).
|
|
Scenarios
|
|||||
As at 30.06.21
|
Weighted
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
131,134
|
133,584
|
132,343
|
130,694
|
128,711
|
126,953
|
Credit cards, unsecured loans and other retail lending
|
44,014
|
45,185
|
44,809
|
44,307
|
42,383
|
39,252
|
Wholesale loans
|
160,174
|
162,762
|
162,201
|
160,564
|
158,614
|
152,164
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
4
|
2
|
3
|
4
|
6
|
8
|
Credit cards, unsecured loans and other retail lending
|
379
|
269
|
288
|
324
|
456
|
486
|
Wholesale loans
|
248
|
187
|
203
|
224
|
306
|
352
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
—
|
—
|
—
|
—
|
—
|
—
|
Credit cards, unsecured loans and other retail lending
|
0.9
|
0.6
|
0.6
|
0.7
|
1.1
|
1.2
|
Wholesale loans
|
0.2
|
0.1
|
0.1
|
0.1
|
0.2
|
0.2
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
24,345
|
21,895
|
23,136
|
24,785
|
26,769
|
28,526
|
Credit cards, unsecured loans and other retail lending
|
7,175
|
5,733
|
6,205
|
6,819
|
9,066
|
12,625
|
Wholesale loans
|
33,666
|
31,077
|
31,639
|
33,276
|
35,225
|
41,676
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
20
|
13
|
15
|
18
|
27
|
39
|
Credit cards, unsecured loans and other retail lending
|
1,076
|
733
|
841
|
976
|
1,544
|
2,517
|
Wholesale loans
|
773
|
594
|
646
|
709
|
939
|
1,342
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
0.1
|
0.1
|
0.1
|
0.1
|
0.1
|
0.1
|
Credit cards, unsecured loans and other retail lending
|
15.0
|
12.8
|
13.6
|
14.3
|
17.0
|
19.9
|
Wholesale loans
|
2.3
|
1.9
|
2.0
|
2.1
|
2.7
|
3.2
|
Stage 3 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
1,829
|
1,829
|
1,829
|
1,829
|
1,829
|
1,829
|
Credit cards, unsecured loans and other retail lending
|
2,374
|
2,374
|
2,374
|
2,374
|
2,374
|
2,374
|
Wholesale
loans1
|
1,374
|
1,374
|
1,374
|
1,374
|
1,374
|
1,374
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
324
|
307
|
315
|
325
|
337
|
352
|
Credit cards, unsecured loans and other retail lending
|
1,878
|
1,850
|
1,864
|
1,875
|
1,905
|
1,920
|
Wholesale
loans1
|
67
|
65
|
66
|
67
|
69
|
72
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
17.7
|
16.8
|
17.2
|
17.8
|
18.4
|
19.2
|
Credit cards, unsecured loans and other retail lending
|
79.1
|
77.9
|
78.5
|
79.0
|
80.2
|
80.9
|
Wholesale
loans1
|
4.9
|
4.7
|
4.8
|
4.9
|
5.0
|
5.2
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
348
|
322
|
333
|
347
|
370
|
399
|
Credit cards, unsecured loans and other retail lending
|
3,333
|
2,852
|
2,993
|
3,175
|
3,905
|
4,923
|
Wholesale
loans1
|
1,088
|
846
|
915
|
1,000
|
1,314
|
1,766
|
Total Model ECL
|
4,769
|
4,020
|
4,241
|
4,522
|
5,589
|
7,088
|
1
|
Material wholesale loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £783m is
reported as individually assessed impairments in the table
below.
|
Reconciliation to total ECL
|
£m
|
Total model ECL
|
4,769
|
ECL from individually assessed impairments on stage 3
loans
|
783
|
ECL
from non-modelled and other management adjustments1
|
1,678
|
Total ECL
|
7,230
|
1
|
Includes £1.9bn post-model adjustments of which £0.4bn is
included as part of total model ECL and £0.2bn ECL from
non-modelled exposures.
|
|
Scenarios
|
|||||
As at 31.12.20
|
Weighted
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
131,422
|
134,100
|
133,246
|
132,414
|
130,547
|
128,369
|
Credit cards, unsecured loans and other retail lending
|
51,952
|
53,271
|
52,932
|
51,995
|
50,168
|
48,717
|
Wholesale loans
|
149,099
|
155,812
|
154,578
|
152,141
|
144,646
|
131,415
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
6
|
4
|
5
|
6
|
14
|
42
|
Credit cards, unsecured loans and other retail lending
|
392
|
316
|
340
|
372
|
415
|
415
|
Wholesale loans
|
262
|
242
|
258
|
249
|
278
|
290
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
—
|
—
|
—
|
—
|
—
|
—
|
Credit cards, unsecured loans and other retail lending
|
0.8
|
0.6
|
0.6
|
0.7
|
0.8
|
0.9
|
Wholesale loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.2
|
0.2
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
19,180
|
16,502
|
17,356
|
18,188
|
20,055
|
22,233
|
Credit cards, unsecured loans and other retail lending
|
13,399
|
10,572
|
11,579
|
13,176
|
16,477
|
19,322
|
Wholesale loans
|
32,677
|
25,963
|
27,198
|
29,635
|
37,130
|
50,361
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
37
|
31
|
32
|
33
|
42
|
63
|
Credit cards, unsecured loans and other retail lending
|
2,207
|
1,618
|
1,837
|
2,138
|
2,865
|
3,564
|
Wholesale loans
|
1,410
|
952
|
1,047
|
1,223
|
1,771
|
2,911
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.2
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
16.5
|
15.3
|
15.9
|
16.2
|
17.4
|
18.4
|
Wholesale loans
|
4.3
|
3.7
|
3.8
|
4.1
|
4.8
|
5.8
|
Stage 3 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
1,778
|
1,778
|
1,778
|
1,778
|
1,778
|
1,778
|
Credit cards, unsecured loans and other retail lending
|
2,585
|
2,585
|
2,585
|
2,585
|
2,585
|
2,585
|
Wholesale
loans1
|
2,211
|
2,211
|
2,211
|
2,211
|
2,211
|
2,211
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
307
|
282
|
286
|
290
|
318
|
386
|
Credit cards, unsecured loans and other retail lending
|
2,003
|
1,947
|
1,972
|
2,001
|
2,055
|
2,078
|
Wholesale
loans1
|
146
|
128
|
134
|
141
|
157
|
184
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
17.3
|
15.9
|
16.1
|
16.3
|
17.9
|
21.7
|
Credit cards, unsecured loans and other retail lending
|
77.5
|
75.3
|
76.3
|
77.4
|
79.5
|
80.4
|
Wholesale
loans1
|
6.6
|
5.8
|
6.1
|
6.4
|
7.1
|
8.3
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
350
|
317
|
323
|
329
|
374
|
491
|
Credit cards, unsecured loans and other retail lending
|
4,602
|
3,881
|
4,149
|
4,511
|
5,335
|
6,057
|
Wholesale
loans1
|
1,818
|
1,322
|
1,439
|
1,613
|
2,206
|
3,385
|
Total Model ECL
|
6,770
|
5,520
|
5,911
|
6,453
|
7,915
|
9,933
|
1
|
Material wholesale loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £902m is
reported as individually assessed impairments in the table
below.
|
Reconciliation to total ECL1
|
£m
|
Total model ECL
|
6,770
|
ECL from individually assessed impairments on stage 3
loans
|
902
|
ECL from non-modelled and other management adjustments
|
1,727
|
Total ECL
|
9,399
|
1
|
Includes £1.4bn of post-model adjustments and £0.3bn ECL
from non-modelled exposures.
|
Home loans principal portfolios
|
Barclays UK
|
|
|
As at 30.06.21
|
As at 31.12.20
|
Gross loans and advances (£m)
|
155,247
|
148,343
|
90 day arrears rate, excluding recovery book (%)
|
0.1
|
0.2
|
Annualised gross charge-off rates - 180 days past due
(%)
|
0.6
|
0.6
|
Recovery book proportion of outstanding balances (%)
|
0.6
|
0.6
|
Recovery book impairment coverage ratio (%)
|
3.4
|
3.2
|
|
|
|
Average marked to market LTV
|
|
|
Balance weighted %
|
51.3
|
50.7
|
Valuation weighted %
|
38.0
|
37.6
|
|
|
|
New lending
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
New home loan bookings (£m)
|
19,120
|
9,977
|
New home loan proportion > 90% LTV (%)
|
0.9
|
3.7
|
Average LTV on new home loans: balance weighted (%)
|
68.7
|
68.4
|
Average LTV on new home loans: valuation weighted (%)
|
61.3
|
60.0
|
1
|
Portfolio mark to market based on the most updated valuation
including recovery book balances. Updated valuations reflect the
application of the latest HPI available as at 30 June
2021.
|
Principal portfolios
|
Gross exposure
|
30 day arrears rate, excluding recovery book
|
90 day arrears rate, excluding recovery book
|
Annualised gross write-off rate
|
Annualised net write-off rate
|
As at 30.06.21
|
£m
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
UK cards
|
10,202
|
1.4
|
0.6
|
4.9
|
4.8
|
UK personal loans
|
4,075
|
2.3
|
1.4
|
3.9
|
3.6
|
Barclays
Partner Finance
|
2,362
|
0.5
|
0.2
|
1.3
|
1.3
|
Barclays International
|
|
|
|
|
|
US cards
|
15,895
|
1.6
|
0.9
|
5.6
|
5.4
|
Germany consumer lending
|
3,398
|
1.5
|
0.7
|
0.9
|
0.8
|
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
UK cards
|
11,911
|
1.7
|
0.8
|
2.9
|
2.9
|
UK personal loans
|
4,591
|
2.3
|
1.2
|
3.4
|
3.1
|
Barclays Partner Finance
|
2,469
|
0.5
|
0.3
|
1.1
|
1.1
|
Barclays International
|
|
|
|
|
|
US cards
|
16,845
|
2.5
|
1.4
|
5.6
|
5.6
|
Germany consumer lending
|
3,458
|
1.9
|
0.8
|
1.2
|
1.1
|
1
|
Diversification effects recognise that forecast losses from
different assets or businesses are unlikely to occur concurrently,
hence the expected aggregate loss is lower than the sum of the
expected losses from each area. Historical correlations between
losses are taken into account in making these assessments. The high
and low VaR figures reported for each category did not necessarily
occur on the same day as the high and low VaR reported as a whole.
Consequently, a diversification effect balance for the high and low
VaR figures would not be meaningful and is therefore omitted from
the above table.
|
Liquidity coverage ratio
|
|
|
|
As at 30.06.21
|
As at 31.12.20
|
|
£bn
|
£bn
|
Eligible liquidity buffer
|
280
|
258
|
Net stress outflows
|
(172)
|
(159)
|
Surplus
|
108
|
99
|
|
|
|
Liquidity coverage ratio
|
162%
|
162%
|
Composition of the Group liquidity pool
|
|||||
|
As at 30.06.21
|
As at 31.12.20
|
|||
|
Liquidity pool
|
Liquidity pool of which CRD IV LCR
eligible3
|
Liquidity pool
|
||
|
Cash
|
Level 1
|
Level 2A
|
||
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Cash and deposits with central banks1
|
224
|
217
|
—
|
—
|
197
|
|
|
|
|
|
|
Government bonds2
|
|
|
|
|
|
AAA to AA-
|
39
|
—
|
30
|
1
|
31
|
A+ to A-
|
6
|
—
|
1
|
5
|
13
|
BBB+ to BBB-
|
2
|
—
|
2
|
—
|
1
|
Total government bonds
|
47
|
—
|
33
|
6
|
45
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Government Guaranteed Issuers, PSEs and GSEs
|
8
|
—
|
5
|
2
|
10
|
International Organisations and MDBs
|
4
|
—
|
4
|
—
|
6
|
Covered bonds
|
7
|
—
|
6
|
2
|
8
|
Other
|
1
|
—
|
—
|
—
|
—
|
Total other
|
20
|
—
|
15
|
4
|
24
|
|
|
|
|
|
|
Total as at 30 June 2021
|
291
|
217
|
48
|
10
|
266
|
Total as at 31 December 2020
|
266
|
192
|
55
|
11
|
|
1
|
Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 98% (December 2020: over
98%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
2
|
Of which over 76% (December 2020: over 78%) comprised UK, US,
French, German, Japanese, Swiss and Dutch securities.
|
3
|
The LCR eligible liquidity pool is adjusted for trapped liquidity
and other regulatory deductions. It also incorporates other CRR (as
amended by CRR II) qualifying assets that are not eligible under
Barclays’ internal risk appetite.
|
1
|
The loan: deposit ratio is calculated as loans and advances at
amortised cost divided by deposits at amortised cost.
|
|
As at 30.06.21
|
As at 31.12.20
|
|
|
As at 30.06.21
|
As at 31.12.20
|
Assets
|
£bn
|
£bn
|
|
Liabilities and equity
|
£bn
|
£bn
|
Loans
and advances at amortised cost1
|
340
|
335
|
|
Deposits at amortised cost
|
501
|
481
|
Group liquidity pool
|
291
|
266
|
|
<1 Year wholesale funding
|
58
|
43
|
|
|
|
|
>1 Year wholesale funding
|
101
|
102
|
Reverse repurchase agreements, trading portfolio assets, cash
collateral and settlement balances
|
419
|
376
|
|
Repurchase agreements, trading portfolio liabilities, cash
collateral and settlement balances
|
362
|
324
|
Derivative financial instruments
|
257
|
302
|
|
Derivative financial instruments
|
247
|
301
|
Other
assets2
|
69
|
71
|
|
Other liabilities
|
39
|
32
|
|
|
|
|
Equity
|
68
|
67
|
Total assets
|
1,376
|
1,350
|
|
Total liabilities and equity
|
1,376
|
1,350
|
1
|
Adjusted for liquidity pool debt securities reported at amortised
cost of £9bn (December 2020: £8bn).
|
2
|
Other assets include fair value assets that are not part of reverse
repurchase agreements or trading portfolio assets, and other asset
categories.
|
1
|
The composition of wholesale funds comprises the balance sheet
reported financial liabilities at fair value, debt securities in
issue and subordinated liabilities. It does not include
participation in the central bank facilities reported within
repurchase agreements and other similar secured
borrowing.
|
2
|
Term funding comprises public benchmark and privately placed senior
unsecured notes, covered bonds, asset-backed securities and
subordinated debt where the original maturity of the instrument is
more than 1 year.
|
3
|
Includes structured notes of £47.9bn, of which £10.2bn
matures within one year.
|
Barclays Bank PLC
|
Standard & Poor's
|
Moody's
|
Fitch
|
Long-term
|
A / Positive
|
A1 / Stable
|
A+ /
Stable
|
Short-term
|
A-1
|
P-1
|
F1
|
|
|
|
|
Barclays Bank UK PLC
|
|
|
|
Long-term
|
A / Positive
|
A1 / Stable
|
A+ / Stable
|
Short-term
|
A-1
|
P-1
|
F1
|
|
|
|
|
Barclays PLC
|
|
|
|
Long-term
|
BBB / Positive
|
Baa2 /Stable
|
A /
Stable
|
Short-term
|
A-2
|
P-2
|
F1
|
Capital ratios1,2,3
|
As at 30.06.21
|
As at 31.03.21
|
As at 31.12.20
|
CET1
|
15.1%
|
14.6%
|
15.1%
|
Tier 1 (T1)
|
18.9%
|
18.4%
|
19.0%
|
Total regulatory capital
|
22.3%
|
21.8%
|
22.1%
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests per the balance
sheet
|
67,052
|
65,105
|
65,797
|
Less: other equity instruments (recognised as AT1
capital)
|
(11,167)
|
(11,179)
|
(11,172)
|
Adjustment to retained earnings for foreseeable ordinary share
dividends
|
(510)
|
(303)
|
(174)
|
Adjustment to retained earnings for foreseeable repurchase of
shares
|
—
|
(439)
|
—
|
Adjustment to retained earnings for foreseeable other equity
coupons
|
(35)
|
(42)
|
(30)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,447)
|
(1,496)
|
(1,146)
|
Goodwill and intangible assets
|
(6,814)
|
(6,504)
|
(6,914)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(664)
|
(629)
|
(595)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
(665)
|
(850)
|
(1,575)
|
Gains or losses on liabilities at fair value resulting from own
credit
|
934
|
1,202
|
870
|
Defined benefit pension fund assets
|
(1,828)
|
(1,192)
|
(1,326)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(50)
|
(50)
|
(50)
|
Adjustment under IFRS 9 transitional arrangements
|
1,331
|
2,285
|
2,556
|
Other regulatory adjustments
|
88
|
(4)
|
55
|
CET1 capital
|
46,225
|
45,904
|
46,296
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
11,167
|
11,179
|
11,172
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
648
|
655
|
646
|
Other regulatory adjustments and deductions
|
(80)
|
(80)
|
(80)
|
AT1 capital
|
11,735
|
11,754
|
11,738
|
|
|
|
|
T1 capital
|
57,960
|
57,658
|
58,034
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
8,969
|
8,951
|
7,836
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
1,401
|
1,641
|
1,893
|
Credit risk adjustments (excess of impairment over expected
losses)
|
79
|
95
|
57
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(160)
|
Total regulatory capital
|
68,249
|
68,185
|
67,660
|
|
|
|
|
Total RWAs
|
306,424
|
313,356
|
306,203
|
1
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR and CRR II non-compliant capital instruments.
|
2
|
The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 14.7%,
with £44.9bn of CET1 capital and £306.2bn of RWAs
calculated without applying the transitional arrangements of the
CRR as amended by CRR II.
|
3
|
The Group’s CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays Bank PLC 7.625% Contingent
Capital Notes, was 15.1%. For this calculation CET1 capital and
RWAs are calculated applying the transitional arrangements under
the CRR as amended by CRR II, including the IFRS 9 transitional
arrangements. The benefit of the Financial Services Authority (FSA)
October 2012 interpretation of the transitional provisions,
relating to the implementation of CRD IV, expired in December
2017.
|
Movement in CET1 capital
|
Three months ended 30.06.21
|
Six months ended 30.06.21
|
|
£m
|
£m
|
Opening CET1 capital
|
45,904
|
46,296
|
|
|
|
Profit for the period attributable to equity holders
|
2,302
|
4,201
|
Own credit relating to derivative liabilities
|
3
|
17
|
Ordinary share dividends paid and foreseen
|
(380)
|
(509)
|
Purchased and foreseeable share repurchase
|
—
|
(700)
|
Other equity coupons paid and foreseen
|
(187)
|
(394)
|
Increase in retained regulatory capital generated from
earnings
|
1,738
|
2,615
|
|
|
|
Net impact of share schemes
|
119
|
(48)
|
Fair value through other comprehensive income reserve
|
70
|
(250)
|
Currency translation reserve
|
(17)
|
(495)
|
Other reserves
|
5
|
(1)
|
Increase / (decrease) in other qualifying reserves
|
177
|
(794)
|
|
|
|
Pension remeasurements within reserves
|
289
|
103
|
Defined benefit pension fund asset deduction
|
(636)
|
(502)
|
Net impact of pensions
|
(347)
|
(399)
|
|
|
|
Additional value adjustments (PVA)
|
49
|
(301)
|
Goodwill and intangible assets
|
(310)
|
100
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(35)
|
(69)
|
Adjustment under IFRS 9 transitional arrangements
|
(954)
|
(1,225)
|
Other regulatory adjustments
|
3
|
2
|
Decrease in regulatory capital due to adjustments and
deductions
|
(1,247)
|
(1,493)
|
|
|
|
Closing CET1 capital
|
46,225
|
46,225
|
●
|
A
£0.3bn reduction in the fair value through other comprehensive
income reserve driven by a decrease in the fair value of bonds due
to increasing bond yields
|
●
|
A 0.5bn
decrease in the currency translation reserves driven by the
depreciation of period end EUR and USD against GBP
|
●
|
A
£0.4bn decrease as a result of movements relating to pensions,
largely due to deficit contribution payments of £0.35bn in
April 2021
|
●
|
A
£0.3bn increase in the PVA deduction due to the removal of
temporary regulatory supporting measures applied to certain
additional valuation adjustments
|
●
|
A
£1.2bn decrease in IFRS 9 transitional relief, after tax,
primarily due to a credit impairment net release, impairment
migrations from stage 2 to stage 3 and a decrease to the amount of
relief applied to the pre-2020 impairment charge reducing to 50% in
2021 from 70% in 2020
|
Movement analysis of RWAs
|
|||||
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Opening RWAs (as at 31.12.20)
|
193,969
|
35,707
|
35,629
|
40,898
|
306,203
|
Book size
|
378
|
1,698
|
1,519
|
76
|
3,671
|
Acquisitions and disposals
|
(874)
|
—
|
—
|
—
|
(874)
|
Book quality
|
1,074
|
277
|
—
|
—
|
1,351
|
Model updates
|
(1,070)
|
(186)
|
—
|
—
|
(1,256)
|
Methodology and policy
|
(115)
|
416
|
(1,289)
|
—
|
(988)
|
Foreign
exchange movements1
|
(1,683)
|
—
|
—
|
—
|
(1,683)
|
Total RWA movements
|
(2,290)
|
2,205
|
230
|
76
|
221
|
Closing RWAs (as at 30.06.21)
|
191,679
|
37,912
|
35,859
|
40,974
|
306,424
|
1
|
Foreign exchange movements does not include foreign exchange for
counterparty credit risk or market risk.
|
●
|
A
£1.1bn increase in book quality is primarily due to reduction
in credit quality
|
●
|
A
£1.1bn decrease in model updates primarily due to modelled
risk weight recalibrations
|
●
|
A
£1.7bn decrease in FX is due to the depreciation of period end
EUR and USD against GBP
|
●
|
A
£1.7bn increase in book size primarily due to an increase in
trading activities across SFTs and derivatives
|
●
|
A
£1.5bn increase in book size primarily due to increased client
and trading activities
|
●
|
A
£1.3bn decrease in methodology and policy is driven by a
change in the historical look back period of the VaR model from two
years to one year
|
Leverage ratios1,2
|
As at 30.06.21
|
As at 31.03.21
|
As at 31.12.20
|
£m
|
£m
|
£m
|
|
Average UK leverage ratio
|
4.8%
|
4.9%
|
5.0%
|
Average
T1 capital3
|
57,280
|
57,040
|
57,069
|
Average UK leverage exposure
|
1,191,986
|
1,174,887
|
1,146,919
|
|
|
|
|
UK leverage ratio
|
5.0%
|
5.0%
|
5.3%
|
|
|
|
|
CET1 capital
|
46,225
|
45,904
|
46,296
|
AT1 capital
|
11,087
|
11,099
|
11,092
|
T1 capital3
|
57,312
|
57,003
|
57,388
|
|
|
|
|
UK leverage exposure
|
1,153,570
|
1,145,413
|
1,090,907
|
|
|
|
|
UK leverage exposure
|
|
|
|
Accounting assets
|
|
|
|
Derivative financial instruments
|
256,636
|
270,717
|
302,446
|
Derivative cash collateral
|
54,063
|
51,797
|
64,798
|
Securities financing transactions (SFTs)
|
182,820
|
189,496
|
164,034
|
Loans and advances and other assets
|
882,814
|
867,646
|
818,236
|
Total IFRS assets
|
1,376,333
|
1,379,656
|
1,349,514
|
|
|
|
|
Regulatory consolidation adjustments
|
(1,406)
|
(1,926)
|
(1,144)
|
|
|
|
|
Derivatives adjustments
|
|
|
|
Derivatives netting
|
(229,123)
|
(242,857)
|
(272,275)
|
Adjustments to collateral
|
(42,774)
|
(45,464)
|
(57,414)
|
Net written credit protection
|
16,730
|
16,814
|
14,986
|
Potential future exposure (PFE) on derivatives
|
135,162
|
128,454
|
117,010
|
Total derivatives adjustments
|
(120,005)
|
(143,053)
|
(197,693)
|
|
|
|
|
SFTs adjustments
|
23,511
|
22,294
|
21,114
|
|
|
|
|
Regulatory deductions and other adjustments
|
(22,525)
|
(18,111)
|
(17,469)
|
|
|
|
|
Weighted off-balance sheet commitments
|
111,870
|
118,134
|
113,704
|
|
|
|
|
Qualifying central bank claims
|
(172,465)
|
(167,054)
|
(155,890)
|
|
|
|
|
Settlement netting
|
(41,743)
|
(44,527)
|
(21,229)
|
|
|
|
|
UK leverage exposure
|
1,153,570
|
1,145,413
|
1,090,907
|
1
|
Fully loaded average UK leverage ratio was 4.7%, with £55.5bn
of T1 capital and £1,190.2bn of leverage exposure. Fully
loaded UK leverage ratio was 4.9%, with £56.0bn of T1 capital
and £1,152.2bn of leverage exposure. Fully loaded UK leverage
ratios are calculated without applying the transitional
arrangements of the CRR as amended by CRR II.
|
2
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR
II.
|
3
|
T1 capital is calculated in line with the PRA
Handbook.
|
1
|
CRR leverage ratio as amended by CRR II.
|
Own funds and eligible liabilities
ratios1,2
|
As a percentage of RWAs
|
|
As a percentage of CRR leverage exposure
|
||||
|
As at 30.06.21
|
As at 31.03.21
|
As at 31.12.20
|
|
As at 30.06.21
|
As at 31.03.21
|
As at 31.12.20
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
33.7%
|
32.1%
|
32.7%
|
|
7.7%
|
7.6%
|
8.0%
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments
|
34.4%
|
32.8%
|
33.6%
|
|
7.9%
|
7.8%
|
8.2%
|
|
|
|
|
|
|
|
|
Own funds and eligible
liabilities1,2
|
|
|
|
|
As at 30.06.21
|
As at 31.03.21
|
As at 31.12.20
|
|
|
|
|
|
£m
|
£m
|
£m
|
CET1 capital
|
|
|
|
|
46,225
|
45,904
|
46,296
|
AT1
capital instruments and related share premium accounts3
|
|
11,087
|
11,099
|
11,092
|
|||
T2
capital instruments and related share premium accounts3
|
|
|
|
|
8,888
|
8,886
|
7,733
|
Eligible liabilities
|
|
|
|
|
37,095
|
34,571
|
35,086
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
|
103,295
|
100,460
|
100,207
|
|||
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
|
648
|
655
|
646
|
|||
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
|
1,401
|
1,641
|
1,893
|
|||
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments
|
|
105,344
|
102,756
|
102,746
|
|||
|
|
|
|
|
|
|
|
Total RWAs
|
|
|
|
|
306,424
|
313,356
|
306,203
|
Total CRR leverage exposure4
|
|
|
|
|
1,334,929
|
1,320,628
|
1,254,157
|
1
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR and CRR II non-compliant capital instruments.
|
2
|
The BoE has set external MREL based on the higher of RWAs and CRR
or UK leverage exposures which could result in the binding measure
changing in future periods. The 30 June 2021 Barclays PLC (the
Parent company) own funds and eligible liabilities ratio as a
percentage of the UK leverage exposure was 9.0% and as a percentage
of the average UK leverage exposure was 8.7%.
|
3
|
Includes other AT1 capital regulatory adjustments and deductions of
£80m (December 2020: £80m), and other T2 credit risk
adjustments and deductions of £81m (December 2020:
£103m).
|
4
|
Fully loaded CRR leverage exposure is calculated without applying
the transitional arrangements of the CRR as amended by CRR
II.
|
●
|
an indication of important events that have occurred during the six
months ended 30 June 2021 and their impact on the condensed
consolidated interim financial statements, and a description of the
principal risks and uncertainties for the remaining six months of
the financial year
|
●
|
any related party transactions in the six months ended 30 June
2021 that have materially affected the financial position or
performance of Barclays during that period and any changes in the
related party transactions described in the last Annual Report that
could have a material effect on the financial position or
performance of Barclays in the six months ended 30 June
2021
|
James E Staley
|
|
Tushar Morzaria
|
Group Chief Executive
|
|
Group Finance Director
|
Chairman
|
Executive Directors
|
Non-Executive Directors
|
Nigel Higgins
|
James E Staley
Tushar Morzaria
|
Mike Ashley
Tim Breedon CBE
Mohamed A. El-Erian
Dawn Fitzpatrick
Mary Francis CBE
Crawford Gillies
Brian Gilvary
Diane Schueneman
Julia Wilson
|
●
|
the
condensed consolidated income statement and condensed consolidated
statement of comprehensive income for the period then
ended;
|
●
|
the
condensed consolidated balance sheet as at 30 June
2021;
|
●
|
the
condensed consolidated statement of changes in equity for the
period then ended;
|
●
|
the
condensed consolidated cash flow statement for the period then
ended; and
|
●
|
the
related explanatory notes.
|
Condensed consolidated income statement (unaudited)
|
|||
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
|
Notes1
|
£m
|
£m
|
Interest and similar income
|
|
5,279
|
6,437
|
Interest and similar expense
|
|
(1,376)
|
(2,214)
|
Net interest income
|
|
3,903
|
4,223
|
Fee and commission income
|
3
|
4,682
|
4,399
|
Fee and commission expense
|
3
|
(976)
|
(1,090)
|
Net fee and commission income
|
3
|
3,706
|
3,309
|
Net trading income
|
|
3,482
|
4,198
|
Net investment income
|
|
152
|
(136)
|
Other income
|
|
72
|
27
|
Total income
|
|
11,315
|
11,621
|
Credit impairment releases/(charges)
|
|
742
|
(3,738)
|
Net operating income
|
|
12,057
|
7,883
|
|
|
|
|
Staff costs
|
4
|
(4,334)
|
(4,053)
|
Infrastructure, administration and general expenses
|
5
|
(2,798)
|
(2,510)
|
Litigation and conduct
|
|
(99)
|
(30)
|
Operating expenses
|
|
(7,231)
|
(6,593)
|
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
|
154
|
(31)
|
Profit on disposal of subsidiaries, associates and joint
ventures
|
|
(1)
|
13
|
Profit before tax
|
|
4,979
|
1,272
|
Tax charge
|
6
|
(759)
|
(113)
|
Profit after tax
|
|
4,220
|
1,159
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
3,812
|
695
|
Other equity instrument holders
|
|
389
|
427
|
Total equity holders of the parent
|
|
4,201
|
1,122
|
Non-controlling interests
|
7
|
19
|
37
|
Profit after tax
|
|
4,220
|
1,159
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
Basic earnings per ordinary share
|
8
|
22.2
|
4.0
|
Diluted earnings per ordinary share
|
8
|
21.7
|
3.9
|
1
|
For notes to the Financial Statements see pages 70 to
96.
|
1
|
For notes to the Financial Statements see pages 70 to
96.
|
2
|
Reported net of tax.
|
Condensed consolidated balance sheet (unaudited)
|
|||
|
|
As at 30.06.21
|
As at 31.12.20
|
Assets
|
Notes1
|
£m
|
£m
|
Cash and balances at central banks
|
|
216,963
|
191,127
|
Cash collateral and settlement balances
|
|
111,921
|
101,367
|
Loans and advances at amortised cost
|
12
|
348,549
|
342,632
|
Reverse repurchase agreements and other similar secured
lending
|
|
4,459
|
9,031
|
Trading portfolio assets
|
|
147,239
|
127,950
|
Financial assets at fair value through the income
statement
|
|
194,421
|
175,151
|
Derivative financial instruments
|
10
|
256,636
|
302,446
|
Financial assets at fair value through other comprehensive
income
|
|
73,260
|
78,688
|
Investments in associates and joint ventures
|
|
907
|
781
|
Goodwill and intangible assets
|
13
|
8,196
|
7,948
|
Property, plant and equipment
|
|
3,581
|
4,036
|
Current tax assets
|
|
228
|
477
|
Deferred tax assets
|
6
|
3,771
|
3,444
|
Retirement benefit assets
|
16
|
2,701
|
1,814
|
Other assets
|
|
3,501
|
2,622
|
Total assets
|
|
1,376,333
|
1,349,514
|
|
|
|
|
Liabilities
|
|
|
|
Deposits at amortised cost
|
12
|
500,895
|
481,036
|
Cash collateral and settlement balances
|
|
101,923
|
85,423
|
Repurchase agreements and other similar secured
borrowing
|
|
20,005
|
14,174
|
Debt securities in issue
|
|
90,733
|
75,796
|
Subordinated Liabilities
|
14
|
12,839
|
16,341
|
Trading portfolio liabilities
|
|
56,986
|
47,405
|
Financial liabilities designated at fair value
|
|
264,164
|
249,765
|
Derivative financial instruments
|
10
|
247,034
|
300,775
|
Current tax liabilities
|
|
592
|
645
|
Deferred tax liabilities
|
6
|
8
|
15
|
Retirement benefit liabilities
|
16
|
338
|
291
|
Other liabilities
|
|
10,928
|
8,662
|
Provisions
|
15
|
1,772
|
2,304
|
Total liabilities
|
|
1,308,217
|
1,282,632
|
|
|
|
|
Equity
|
|
|
|
Called up share capital and share premium
|
17
|
4,568
|
4,637
|
Other reserves
|
19
|
2,856
|
4,461
|
Retained earnings
|
|
48,461
|
45,527
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
55,885
|
54,625
|
Other equity instruments
|
18
|
11,167
|
11,172
|
Total equity excluding non-controlling interests
|
|
67,052
|
65,797
|
Non-controlling interests
|
7
|
1,064
|
1,085
|
Total equity
|
|
68,116
|
66,882
|
|
|
|
|
Total equity and liabilities
|
|
1,376,333
|
1,349,514
|
1
|
For notes to the Financial Statements see pages 70 to
96.
|
1
|
Details of share capital, other equity instruments and other
reserves are shown on pages 85 to 86.
|
2
|
Details of non-controlling interests are shown on page
74.
|
1
|
Details of share capital, other equity instruments and other
reserves are shown on pages 85 to 86.
|
2
|
Details of non-controlling interests are shown on page
74.
|
Condensed consolidated cash flow statement (unaudited)
|
|
|
|
Half year ended 30.06.21
|
Half year ended
30.06.201
|
|
£m
|
£m
|
Profit before tax
|
4,979
|
1,272
|
Adjustment
for non-cash items2
|
6,900
|
(1,431)
|
Net
increase in loans and advances at amortised cost2
|
432
|
(12,868)
|
Net increase in deposits at amortised cost
|
19,859
|
51,126
|
Net increase in debt securities in issue
|
13,041
|
24,183
|
Changes
in other operating assets and liabilities3
|
(5,559)
|
(6,770)
|
Corporate income tax paid
|
(712)
|
(351)
|
Net cash from operating activities
|
38,940
|
55,161
|
Net
cash from investing activities2
|
(3,389)
|
(17,844)
|
Net cash from financing activities
|
(2,562)
|
3,133
|
Effect of exchange rates on cash and cash equivalents
|
(5,535)
|
7,814
|
Net increase/(decrease) in cash and cash equivalents
|
27,454
|
48,264
|
Cash
and cash equivalents at beginning of the period3
|
210,142
|
166,613
|
Cash and cash equivalents at end of the period3
|
237,596
|
214,877
|
1
|
H120 comparative figures have been restated to make the condensed
cash flow statement more relevant following a review of the
disclosure and the accounting policies applied that was undertaken
in H220. Amendments, which were first applied in the Barclays PLC
Annual Report 2020, have been made to the classification of cash
collateral reported within cash and cash equivalents and to the
presentation of items within net cash flows from operating and
investing activities. Footnotes 2 and 3 below quantify the impact
of the changes to the respective cash flow categories in H120 and
provide further detail.
|
2
|
Movements in cash and cash equivalents relating to debt securities
at amortised cost were previously shown within loans and advances
at amortised cost in operating activities. These debt securities
holdings are now considered to be part of the investing activity
performed by the Group following a change in accounting policy and
have been presented within investing activities in H121.
Comparatives have been restated. The effect of this change was to
reclassify £6,245m of net cash outflows from operating
activities to investing activities in H120.
|
3
|
Cash and cash equivalents have been restated to exclude cash
collateral and settlement balances, with the exception of balances
that the Group holds at central banks related to payment schemes.
The effect of this change decreased cash and cash equivalents by
£28,301m as at 30 June 2020 and £16,774m as at 31
December 2019. As a result, net cash from operating activities
decreased by £11,527m in H120, representing the net increase
in the cash collateral and settlement balances line item in this
period.
|
Analysis of results by business
|
|
|
|
|
|
Barclays
UK
|
Barclays
International
|
Head
Office
|
Barclays
Group
|
Half year ended 30.06.21
|
£m
|
£m
|
£m
|
£m
|
Total income
|
3,199
|
8,218
|
(102)
|
11,315
|
Credit impairment releases
|
443
|
293
|
6
|
742
|
Net operating income/(expenses)
|
3,642
|
8,511
|
(96)
|
12,057
|
Operating expenses
|
(2,114)
|
(4,606)
|
(412)
|
(7,132)
|
Litigation and conduct
|
(22)
|
(84)
|
7
|
(99)
|
Total operating expenses
|
(2,136)
|
(4,690)
|
(405)
|
(7,231)
|
Other
net income1
|
—
|
22
|
131
|
153
|
Profit/(loss) before tax
|
1,506
|
3,843
|
(370)
|
4,979
|
|
|
|
|
|
As at 30.06.21
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
311.2
|
1,046.8
|
18.3
|
1,376.3
|
|
Barclays
UK
|
Barclays
International
|
Head
Office
|
Barclays
Group
|
Half year ended 30.06.20
|
£m
|
£m
|
£m
|
£m
|
Total income
|
3,171
|
8,654
|
(204)
|
11,621
|
Credit impairment charges
|
(1,064)
|
(2,619)
|
(55)
|
(3,738)
|
Net operating income/(expenses)
|
2,107
|
6,035
|
(259)
|
7,883
|
Operating expenses
|
(2,041)
|
(4,405)
|
(117)
|
(6,563)
|
Litigation and conduct
|
(11)
|
(11)
|
(8)
|
(30)
|
Total operating expenses
|
(2,052)
|
(4,416)
|
(125)
|
(6,593)
|
Other
net income/(expenses)1
|
13
|
10
|
(41)
|
(18)
|
Profit/(loss) before tax
|
68
|
1,629
|
(425)
|
1,272
|
|
|
|
|
|
As at 31.12.20
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
289.1
|
1,041.8
|
18.6
|
1,349.5
|
1
|
Other net income/(expenses) represents the share of post-tax
results of associates and joint ventures, profit (or loss) on
disposal of subsidiaries, associates and joint ventures and gains
on acquisitions.
|
Split of income by geographic
region1
|
|
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
|
£m
|
£m
|
United Kingdom
|
5,895
|
5,989
|
Europe
|
1,222
|
1,199
|
Americas
|
3,608
|
3,776
|
Africa and Middle East
|
20
|
20
|
Asia
|
570
|
637
|
Total
|
11,315
|
11,621
|
1
|
The geographical analysis is based on the location of the office
where the transactions are recorded.
|
|
Barclays UK
|
Barclays International
|
Head Office
|
Total
|
Half year ended 30.06.21
|
£m
|
£m
|
£m
|
£m
|
Fee type
|
|
|
|
|
Transactional
|
408
|
1,181
|
—
|
1,589
|
Advisory
|
83
|
459
|
1
|
543
|
Brokerage and execution
|
109
|
553
|
—
|
662
|
Underwriting and syndication
|
—
|
1,715
|
—
|
1,715
|
Other
|
35
|
73
|
3
|
111
|
Total revenue from contracts with customers
|
635
|
3,981
|
4
|
4,620
|
Other non-contract fee income
|
—
|
62
|
—
|
62
|
Fee and commission income
|
635
|
4,043
|
4
|
4,682
|
Fee and commission expense
|
(108)
|
(861)
|
(7)
|
(976)
|
Net fee and commission income
|
527
|
3,182
|
(3)
|
3,706
|
|
Barclays UK
|
Barclays International
|
Head Office
|
Total
|
Half year ended 30.06.20
|
£m
|
£m
|
£m
|
£m
|
Fee type
|
|
|
|
|
Transactional
|
386
|
1,157
|
—
|
1,543
|
Advisory
|
79
|
306
|
1
|
386
|
Brokerage and execution
|
102
|
685
|
—
|
787
|
Underwriting and syndication
|
—
|
1,468
|
—
|
1,468
|
Other
|
38
|
115
|
2
|
155
|
Total revenue from contracts with customers
|
605
|
3,731
|
3
|
4,339
|
Other non-contract fee income
|
—
|
60
|
—
|
60
|
Fee and commission income
|
605
|
3,791
|
3
|
4,399
|
Fee and commission expense
|
(148)
|
(940)
|
(2)
|
(1,090)
|
Net fee and commission income
|
457
|
2,851
|
1
|
3,309
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
Compensation costs
|
£m
|
£m
|
Upfront bonus charge
|
824
|
476
|
Deferred bonus charge
|
262
|
269
|
Other incentives
|
6
|
4
|
Performance costs
|
1,092
|
749
|
Salaries
|
2,117
|
2,153
|
Social security costs
|
336
|
317
|
Post-retirement benefits
|
275
|
268
|
Other compensation costs
|
223
|
254
|
Total compensation costs
|
4,043
|
3,741
|
|
|
|
Other resourcing costs
|
|
|
Outsourcing
|
171
|
175
|
Redundancy and restructuring
|
23
|
39
|
Temporary staff costs
|
55
|
58
|
Other
|
42
|
40
|
Total other resourcing costs
|
291
|
312
|
|
|
|
Total staff costs
|
4,334
|
4,053
|
|
|
|
Barclays Group compensation costs as a % of total
income
|
35.7
|
32.2
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
Infrastructure costs
|
£m
|
£m
|
Property and equipment
|
709
|
757
|
Depreciation and amortisation
|
832
|
751
|
Lease payments
|
20
|
26
|
Impairment of property, equipment and intangible
assets
|
304
|
32
|
Total infrastructure costs
|
1,865
|
1,566
|
|
|
|
Administration and general expenses
|
|
|
Consultancy, legal and professional fees
|
262
|
270
|
Marketing and advertising
|
163
|
158
|
Other administration and general expenses
|
508
|
516
|
Total administration and general expenses
|
933
|
944
|
|
|
|
Total infrastructure, administration and general
expenses
|
2,798
|
2,510
|
|
As at 30.06.21
|
As at 31.12.20
|
Deferred tax assets and liabilities
|
£m
|
£m
|
USA
|
1,908
|
2,049
|
UK
|
1,380
|
886
|
Other territories
|
483
|
509
|
Deferred tax assets
|
3,771
|
3,444
|
Deferred tax liabilities
|
(8)
|
(15)
|
|
|
|
Analysis of deferred tax assets
|
|
|
Temporary differences
|
2,972
|
2,709
|
Tax losses
|
799
|
735
|
Deferred tax assets
|
3,771
|
3,444
|
|
Profit attributable to
non-controlling interests
|
|
Equity attributable to
non-controlling interests
|
||
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
|
As at 30.06.21
|
As at 31.12.20
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays Bank PLC issued:
|
|
|
|
|
|
- Preference shares
|
13
|
28
|
|
529
|
529
|
- Upper T2 instruments
|
3
|
9
|
|
533
|
533
|
Other non-controlling interests
|
3
|
—
|
|
2
|
23
|
Total
|
19
|
37
|
|
1,064
|
1,085
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
|
£m
|
£m
|
Profit attributable to ordinary equity holders of the
parent
|
3,812
|
695
|
|
|
|
|
m
|
m
|
Basic weighted average number of shares in issue
|
17,140
|
17,294
|
Number of potential ordinary shares
|
467
|
319
|
Diluted weighted average number of shares
|
17,607
|
17,613
|
|
|
|
|
p
|
p
|
Basic earnings per ordinary share
|
22.2
|
4.0
|
Diluted earnings per ordinary share
|
21.7
|
3.9
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
||
|
Per share
|
Total
|
Per share
|
Total
|
Dividends paid during the period
|
p
|
£m
|
p
|
£m
|
Full year dividend paid during period
|
1.0
|
173
|
—
|
—
|
|
Contract notional amount
|
|
Fair value
|
|
|
|
Assets
|
Liabilities
|
|
As at 30.06.21
|
£m
|
|
£m
|
£m
|
Foreign exchange derivatives
|
5,654,026
|
|
66,963
|
(64,194)
|
Interest rate derivatives
|
37,888,009
|
|
134,734
|
(123,436)
|
Credit derivatives
|
920,030
|
|
5,469
|
(5,960)
|
Equity and stock index and commodity derivatives
|
1,541,007
|
|
48,530
|
(52,444)
|
Derivative assets/(liabilities) held for trading
|
46,003,072
|
|
255,696
|
(246,034)
|
|
|
|
|
|
Derivatives in hedge accounting relationships
|
|
|
|
|
Derivatives designated as cash flow hedges
|
91,278
|
|
806
|
—
|
Derivatives designated as fair value hedges
|
107,879
|
|
128
|
(993)
|
Derivatives designated as hedges of net investments
|
1,595
|
|
6
|
(7)
|
Derivative assets/(liabilities) designated in hedge accounting
relationships
|
200,752
|
|
940
|
(1,000)
|
|
|
|
|
|
Total recognised derivative assets/(liabilities)
|
46,203,824
|
|
256,636
|
(247,034)
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
Foreign exchange derivatives
|
5,554,037
|
|
84,739
|
(84,381)
|
Interest rate derivatives
|
35,257,371
|
|
172,144
|
(162,402)
|
Credit derivatives
|
847,845
|
|
4,605
|
(5,004)
|
Equity and stock index and commodity derivatives
|
1,510,718
|
|
40,392
|
(48,008)
|
Derivative assets/(liabilities) held for trading
|
43,169,971
|
|
301,880
|
(299,795)
|
|
|
|
|
|
Derivatives in hedge accounting relationships
|
|
|
|
|
Derivatives designated as cash flow hedges
|
74,437
|
|
386
|
—
|
Derivatives designated as fair value hedges
|
114,556
|
|
155
|
(980)
|
Derivatives designated as hedges of net investments
|
791
|
|
25
|
—
|
Derivative assets/(liabilities) designated in hedge accounting
relationships
|
189,784
|
|
566
|
(980)
|
|
|
|
|
|
Total recognised derivative assets/(liabilities)
|
43,359,755
|
|
302,446
|
(300,775)
|
|
Valuation technique using
|
|
||
|
Quoted market prices
|
Observable inputs
|
Significant unobservable inputs
|
|
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
As at 30.06.21
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
73,405
|
71,282
|
2,552
|
147,239
|
Financial assets at fair value through the income
statement
|
1,229
|
185,415
|
7,777
|
194,421
|
Derivative financial instruments
|
11,643
|
241,336
|
3,657
|
256,636
|
Financial assets at fair value through other comprehensive
income
|
21,375
|
51,837
|
48
|
73,260
|
Investment property
|
—
|
—
|
8
|
8
|
Total assets
|
107,652
|
549,870
|
14,042
|
671,564
|
|
|
|
|
|
Trading portfolio liabilities
|
(30,911)
|
(26,058)
|
(17)
|
(56,986)
|
Financial liabilities designated at fair value
|
(142)
|
(263,710)
|
(312)
|
(264,164)
|
Derivative financial instruments
|
(11,227)
|
(230,207)
|
(5,600)
|
(247,034)
|
Total liabilities
|
(42,280)
|
(519,975)
|
(5,929)
|
(568,184)
|
|
|
|
|
|
As at 31.12.20
|
|
|
|
|
Trading portfolio assets
|
60,671
|
65,416
|
1,863
|
127,950
|
Financial assets at fair value through the income
statement
|
4,503
|
162,142
|
8,506
|
175,151
|
Derivative financial instruments
|
9,155
|
288,822
|
4,469
|
302,446
|
Financial assets at fair value through other comprehensive
income
|
19,792
|
58,743
|
153
|
78,688
|
Investment property
|
—
|
—
|
10
|
10
|
Total assets
|
94,121
|
575,123
|
15,001
|
684,245
|
|
|
|
|
|
Trading portfolio liabilities
|
(24,391)
|
(22,986)
|
(28)
|
(47,405)
|
Financial liabilities designated at fair value
|
(159)
|
(249,251)
|
(355)
|
(249,765)
|
Derivative financial instruments
|
(8,762)
|
(285,774)
|
(6,239)
|
(300,775)
|
Total liabilities
|
(33,312)
|
(558,011)
|
(6,622)
|
(597,945)
|
|
As at 30.06.21
|
As at 31.12.20
|
||
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|
£m
|
£m
|
£m
|
£m
|
Interest rate derivatives
|
916
|
(1,269)
|
1,613
|
(1,615)
|
Foreign exchange derivatives
|
151
|
(129)
|
144
|
(143)
|
Credit derivatives
|
100
|
(364)
|
196
|
(351)
|
Equity derivatives
|
2,490
|
(3,838)
|
2,498
|
(4,112)
|
Commodity derivatives
|
—
|
—
|
18
|
(18)
|
Corporate debt
|
981
|
(38)
|
698
|
(3)
|
Reverse repurchase and repurchase agreements
|
—
|
(161)
|
—
|
(174)
|
Non-asset backed loans
|
6,338
|
—
|
6,394
|
—
|
Asset backed securities
|
562
|
—
|
767
|
(24)
|
Equity cash products
|
402
|
—
|
542
|
—
|
Private equity investments
|
979
|
(16)
|
873
|
(14)
|
Other1
|
1,123
|
(114)
|
1,258
|
(168)
|
Total
|
14,042
|
(5,929)
|
15,001
|
(6,622)
|
1
|
Other includes commercial real estate loans, funds and fund-linked
products, asset backed loans, issued debt, commercial paper,
government sponsored debt and investment property.
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £3,657m and
derivative financial liabilities were £5,600m.
|
1
|
Derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets were £7,748m and
derivative financial liabilities were £8,932m.
|
|
Half year ended 30.06.21
|
Half year ended 30.06.20
|
||||||
|
Income statement
|
Other compre hensive income
|
Total
|
Income statement
|
Other compre hensive income
|
Total
|
||
|
Trading income
|
Other income
|
Trading income
|
Other income
|
||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
35
|
—
|
—
|
35
|
(177)
|
—
|
—
|
(177)
|
Financial assets at fair value through the income
statement
|
(201)
|
114
|
—
|
(87)
|
397
|
(53)
|
—
|
344
|
Financial assets at fair value through other comprehensive
income
|
—
|
—
|
—
|
—
|
—
|
—
|
(2)
|
(2)
|
Investment properties
|
—
|
—
|
—
|
—
|
—
|
(2)
|
—
|
(2)
|
Trading portfolio liabilities
|
(6)
|
—
|
—
|
(6)
|
—
|
—
|
—
|
—
|
Financial liabilities designated at fair value
|
7
|
—
|
—
|
7
|
(16)
|
(1)
|
—
|
(17)
|
Net derivative financial instruments
|
(367)
|
—
|
—
|
(367)
|
248
|
—
|
—
|
248
|
Non-current assets/liabilities held for sale
|
|
|
|
|
—
|
—
|
—
|
—
|
Total
|
(532)
|
114
|
—
|
(418)
|
452
|
(56)
|
(2)
|
394
|
1
|
Other includes commercial real estate loans, funds and fund-linked
products, asset backed loans, issued debt, commercial paper,
government sponsored debt and investment property.
|
|
As at 30.06.21
|
As at 31.12.20
|
|
£m
|
£m
|
Exit price adjustments derived from market bid-offer
spreads
|
(500)
|
(493)
|
Uncollateralised derivative funding
|
(80)
|
(115)
|
Derivative credit valuation adjustments
|
(210)
|
(268)
|
Derivative debit valuation adjustments
|
91
|
113
|
●
|
Exit
price adjustments derived from market bid-offer spreads increased
by £7m to £500m
|
●
|
Uncollateralised
derivative funding decreased by £35m to £80m as a result
of tightening input funding spreads
|
●
|
Derivative
credit valuation adjustments decreased by £58m to £210m
as a result of tightening input counterparty credit
spreads
|
●
|
Derivative
debit valuation adjustments decreased by £22m to £91m as
a result of tightening input Barclays Bank PLC credit
spreads
|
|
As at 30.06.21
|
As at 31.12.20
|
||
|
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
Financial assets
|
£m
|
£m
|
£m
|
£m
|
Loans and advances at amortised cost
|
348,549
|
347,733
|
342,632
|
340,516
|
Reverse repurchase agreements and other similar secured
lending
|
4,459
|
4,459
|
9,031
|
9,031
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
Deposits at amortised cost
|
(500,895)
|
(500,933)
|
(481,036)
|
(481,106)
|
Repurchase agreements and other similar secured
borrowing
|
(20,005)
|
(20,005)
|
(14,174)
|
(14,174)
|
Debt securities in issue
|
(90,733)
|
(92,746)
|
(75,796)
|
(77,813)
|
Subordinated liabilities
|
(12,839)
|
(13,434)
|
(16,341)
|
(16,918)
|
|
As at 30.06.21
|
As at 31.12.20
|
|
£m
|
£m
|
Loans and advances at amortised cost to banks
|
11,032
|
8,900
|
Loans and advances at amortised cost to customers
|
309,194
|
309,927
|
Debt securities at amortised cost
|
28,323
|
23,805
|
Total loans and advances at amortised cost
|
348,549
|
342,632
|
|
|
|
Deposits at amortised cost from banks
|
17,165
|
17,343
|
Deposits at amortised cost from customers
|
483,730
|
463,693
|
Total deposits at amortised cost
|
500,895
|
481,036
|
|
Half year ended 30.06.21
|
Year ended 31.12.20
|
|
£m
|
£m
|
Opening balance as at 1 January
|
16,341
|
18,156
|
Issuances
|
1,734
|
1,438
|
Redemptions
|
(4,534)
|
(3,464)
|
Other
|
(702)
|
211
|
Closing balance
|
12,839
|
16,341
|
|
As at 30.06.21
|
As at 31.12.20
|
|
£m
|
£m
|
Customer redress
|
449
|
497
|
Legal, competition and regulatory matters
|
223
|
268
|
Redundancy and restructuring
|
88
|
158
|
Undrawn contractually committed facilities and
guarantees
|
713
|
1,064
|
Onerous contracts
|
14
|
28
|
Sundry provisions
|
285
|
289
|
Total
|
1,772
|
2,304
|
|
Ordinary share capital
|
Share premium
|
Total share capital and share premium
|
Half year ended 30.06.21
|
£m
|
£m
|
£m
|
Opening balance as at 1 January
|
4,340
|
297
|
4,637
|
Issue of shares under employee share schemes
|
3
|
22
|
25
|
Repurchase of shares
|
(94)
|
—
|
(94)
|
Closing balance
|
4,249
|
319
|
4,568
|
|
Half year ended 30.06.21
|
Year ended 31.12.20
|
|
£m
|
£m
|
Opening balance as at 1 January
|
11,172
|
10,871
|
Issuances
|
—
|
1,142
|
Redemptions
|
—
|
(831)
|
Securities held by the Group
|
(5)
|
(10)
|
Closing balance
|
11,167
|
11,172
|
|
As at 30.06.21
|
As at 31.12.20
|
|
£m
|
£m
|
Currency translation reserve
|
2,376
|
2,871
|
Fair value through other comprehensive income reserve
|
(245)
|
5
|
Cash flow hedging reserve
|
664
|
1,575
|
Own credit reserve
|
(1,001)
|
(954)
|
Other reserves and treasury shares
|
1,062
|
964
|
Total
|
2,856
|
4,461
|
|
As at 30.06.21
|
As at 31.12.20
|
Contingent liabilities
|
£m
|
£m
|
Guarantees and letters of credit pledged as collateral
security
|
13,519
|
15,665
|
Performance guarantees, acceptances and endorsements
|
5,679
|
5,944
|
Total
|
19,198
|
21,609
|
|
|
|
Commitments
|
|
|
Documentary credits and other short-term trade related
transactions
|
1,017
|
1,086
|
Standby facilities, credit lines and other commitments
|
345,281
|
331,963
|
Total
|
346,298
|
333,049
|
|
As at 30.06.21
|
As at 31.12.20
|
Assets
|
£m
|
£m
|
Investment in subsidiaries
|
58,828
|
58,886
|
Loans and advances to subsidiaries
|
23,295
|
24,710
|
Financial assets at fair value through the income
statement
|
21,046
|
17,521
|
Derivative financial instruments
|
2
|
7
|
Other assets
|
19
|
65
|
Total assets
|
103,190
|
101,189
|
|
|
|
Liabilities
|
|
|
Deposits at amortised cost
|
476
|
482
|
Cash collateral and settlement balances
|
—
|
—
|
Debt securities in issue
|
26,663
|
28,428
|
Subordinated liabilities
|
9,170
|
7,724
|
Financial liabilities designated at fair value
|
12,130
|
9,507
|
Other liabilities
|
135
|
176
|
Total liabilities
|
48,574
|
46,317
|
|
|
|
Equity
|
|
|
Called up share capital
|
4,249
|
4,340
|
Share premium account
|
319
|
297
|
Other equity instruments
|
11,169
|
11,169
|
Other reserves
|
488
|
394
|
Retained earnings
|
38,391
|
38,672
|
Total equity
|
54,616
|
54,872
|
|
|
|
Total liabilities and equity
|
103,190
|
101,189
|
Measure
|
Definition
|
Loan: deposit ratio
|
Loans
and advances at amortised cost divided by deposits at amortised
cost. The components of the calculation have been included on page
50.
|
Period end allocated tangible equity
|
Allocated
tangible equity is calculated as 13.5% (2020: 13.0%) of RWAs for
each business, adjusted for capital deductions, excluding goodwill
and intangible assets, reflecting the assumptions the Group uses
for capital planning purposes. Head Office allocated tangible
equity represents the difference between the Group’s tangible
shareholders’ equity and the amounts allocated to
businesses.
|
Average tangible shareholders’ equity
|
Calculated
as the average of the previous month’s period end tangible
equity and the current month’s period end tangible equity.
The average tangible shareholders’ equity for the period is
the average of the monthly averages within that
period.
|
Average allocated tangible equity
|
Calculated
as the average of the previous month’s period end allocated
tangible equity and the current month’s period end allocated
tangible equity. The average allocated tangible equity for the
period is the average of the monthly averages within that
period.
|
Return on average tangible shareholders’ equity
|
Annualised
profit after tax attributable to ordinary equity holders of the
parent, 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 page 98 to
100.
|
Return on average allocated tangible equity
|
Annualised
profit after tax attributable to ordinary equity holders of the
parent, as a proportion of average allocated tangible equity. The
components of the calculation have been included on page 98 to
101.
|
Cost: income ratio
|
Total
operating expenses divided by total income.
|
Loan loss rate
|
Quoted
in basis points and represents total annualised impairment charges
divided by gross loans and advances held at amortised cost at the
balance sheet date. The components of the calculation have been
included on page 27. Quoted as zero across the current reporting
period due to credit impairment net release.
|
Net interest margin
|
Annualised
net interest income divided by the sum of average customer assets.
The components of the calculation have been included on pages 23 to
24.
|
Tangible net asset value per share
|
Calculated
by dividing shareholders’ equity, excluding non-controlling
interests and other equity instruments, less goodwill and
intangible assets, by the number of issued ordinary shares. The
components of the calculation have been included on page
102.
|
|
Profit/(loss) attributable to ordinary equity holders of the
parent
|
|
Average tangible equity
|
|
Return on average tangible equity
|
Half year ended 30.06.21
|
£m
|
|
£bn
|
|
%
|
Barclays UK
|
1,019
|
|
9.9
|
|
20.6
|
Corporate and Investment Bank
|
2,312
|
|
28.3
|
|
16.3
|
Consumer, Cards and Payments
|
386
|
|
4.0
|
|
19.1
|
Barclays International
|
2,698
|
|
32.3
|
|
16.7
|
Head Office
|
95
|
|
4.3
|
|
n/m
|
Barclays Group
|
3,812
|
|
46.5
|
|
16.4
|
|
|
|
|
|
|
Half year ended 30.06.20
|
|
|
|
|
|
Barclays UK
|
52
|
|
10.2
|
|
1.0
|
Corporate and Investment Bank
|
1,514
|
|
27.7
|
|
11.0
|
Consumer, Cards and Payments
|
(517)
|
|
4.7
|
|
(21.9)
|
Barclays International
|
997
|
|
32.4
|
|
6.2
|
Head Office
|
(354)
|
|
6.0
|
|
n/m
|
Barclays Group
|
695
|
|
48.6
|
|
2.9
|
|
|
|
|
|
|
|
|
Half year ended 30.06.21
|
|||||
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
Return on average tangible shareholders' equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable profit
|
1,019
|
2,312
|
386
|
2,698
|
95
|
3,812
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
13.5
|
28.3
|
4.6
|
32.9
|
8.0
|
54.4
|
Average goodwill and intangibles
|
(3.6)
|
—
|
(0.6)
|
(0.6)
|
(3.7)
|
(7.9)
|
Average tangible shareholders' equity
|
9.9
|
28.3
|
4.0
|
32.3
|
4.3
|
46.5
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
20.6%
|
16.3%
|
19.1%
|
16.7%
|
n/m
|
16.4%
|
|
Half year ended 30.06.20
|
|||||
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
Return on average tangible shareholders' equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable profit/(loss)
|
52
|
1,514
|
(517)
|
997
|
(354)
|
695
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
13.8
|
27.7
|
5.4
|
33.1
|
9.9
|
56.8
|
Average goodwill and intangibles
|
(3.6)
|
—
|
(0.7)
|
(0.7)
|
(3.9)
|
(8.2)
|
Average tangible shareholders' equity
|
10.2
|
27.7
|
4.7
|
32.4
|
6.0
|
48.6
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
1.0%
|
11.0%
|
(21.9)%
|
6.2%
|
n/m
|
2.9%
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
Attributable profit/(loss)
|
2,108
|
1,704
|
|
220
|
611
|
90
|
605
|
|
681
|
(292)
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average shareholders' equity
|
54.4
|
54.4
|
|
55.7
|
56.4
|
58.4
|
55.2
|
|
54.5
|
56.4
|
Average goodwill and intangibles
|
(7.9)
|
(7.9)
|
|
(8.1)
|
(8.1)
|
(8.2)
|
(8.2)
|
|
(8.1)
|
(8.0)
|
Average tangible shareholders' equity
|
46.5
|
46.5
|
|
47.6
|
48.3
|
50.2
|
47.0
|
|
46.4
|
48.4
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
18.1%
|
14.7%
|
|
1.8%
|
5.1%
|
0.7%
|
5.1%
|
|
5.9%
|
(2.4)%
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit/(loss)
|
721
|
298
|
|
160
|
113
|
(123)
|
175
|
|
438
|
(907)
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
13.5
|
13.5
|
|
13.4
|
13.7
|
13.9
|
13.7
|
|
13.8
|
13.9
|
Average goodwill and intangibles
|
(3.6)
|
(3.6)
|
|
(3.6)
|
(3.6)
|
(3.6)
|
(3.6)
|
|
(3.5)
|
(3.5)
|
Average allocated tangible equity
|
9.9
|
9.9
|
|
9.8
|
10.1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
29.1%
|
12.0%
|
|
6.5%
|
4.5%
|
(4.8)%
|
6.9%
|
|
17.0%
|
(34.9)%
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit
|
1,267
|
1,431
|
|
441
|
782
|
468
|
529
|
|
397
|
799
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
33.0
|
32.8
|
|
31.1
|
31.2
|
34.2
|
31.9
|
|
31.9
|
33.3
|
Average goodwill and intangibles
|
(0.6)
|
(0.5)
|
|
(0.6)
|
(0.6)
|
(0.7)
|
(0.7)
|
|
(1.0)
|
(1.1)
|
Average allocated tangible equity
|
32.4
|
32.3
|
|
30.5
|
30.6
|
33.5
|
31.2
|
|
30.9
|
32.2
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
15.6%
|
17.7%
|
|
5.8%
|
10.2%
|
5.6%
|
6.8%
|
|
5.1%
|
9.9%
|
Corporate and Investment Bank
|
|
|
|
|
|
|
||||
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit
|
1,049
|
1,263
|
|
413
|
627
|
694
|
820
|
|
193
|
609
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
28.4
|
28.2
|
|
26.3
|
26.4
|
29.1
|
26.2
|
|
25.9
|
26.9
|
Average goodwill and intangibles
|
—
|
—
|
|
—
|
—
|
(0.1)
|
—
|
|
(0.1)
|
—
|
Average allocated tangible equity
|
28.4
|
28.2
|
|
26.3
|
26.4
|
29.0
|
26.2
|
|
25.8
|
26.9
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.8%
|
17.9%
|
|
6.3%
|
9.5%
|
9.6%
|
12.5%
|
|
3.0%
|
9.1%
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
|
|
||
|
Q221
|
Q121
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Return on average allocated tangible equity
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
Attributable profit/(loss)
|
218
|
168
|
|
28
|
155
|
(226)
|
(291)
|
|
204
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Average allocated equity
|
4.6
|
4.6
|
|
4.8
|
4.8
|
5.1
|
5.7
|
|
6.0
|
6.4
|
Average goodwill and intangibles
|
(0.6)
|
(0.5)
|
|
(0.6)
|
(0.6)
|
(0.6)
|
(0.7)
|
|
(0.9)
|
(1.1)
|
Average allocated tangible equity
|
4.0
|
4.1
|
|
4.2
|
4.2
|
4.5
|
5.0
|
|
5.1
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
21.8%
|
16.5%
|
|
2.7%
|
14.7%
|
(20.2)%
|
(23.5)%
|
|
15.9%
|
14.2%
|
Tangible net asset value per share
|
As at 30.06.21
|
As at 31.12.20
|
As at 30.06.20
|
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests
|
67,052
|
65,797
|
68,304
|
Other equity instruments
|
(11,167)
|
(11,172)
|
(10,871)
|
Goodwill and intangibles
|
(8,196)
|
(7,948)
|
(8,163)
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
47,689
|
46,677
|
49,270
|
|
|
|
|
|
m
|
m
|
m
|
Shares in issue
|
16,998
|
17,359
|
17,345
|
|
|
|
|
|
p
|
p
|
p
|
Tangible net asset value per share
|
281
|
269
|
284
|
1
|
Note that these dates are provisional and subject to
change.
|
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 in England and Wales.
|
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