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RNS Number : 4899C Barclays PLC 23 February 2022
Barclays PLC
2021 Results Announcement
31 December 2021
Table of Contents
Results Announcement Page
Notes 1
Performance Highlights 2
Group Chief Executive's Review 4
Group Finance Director's Review 6
Results by Business
· Barclays UK 8
· Barclays International 11
· Head Office 16
Quarterly Results Summary 17
Quarterly Results by Business 18
Performance Management
· Margins and Balances 24
· Remuneration 26
Risk Management
· Risk Management and Principal Risks 28
· Credit Risk 29
· Market Risk 44
· Treasury and Capital Risk 45
Statement of Directors' Responsibilities 57
Condensed Consolidated Financial Statements 58
Financial Statement Notes 63
Appendix: Non-IFRS Performance Measures 69
Shareholder Information 75
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE:
+44 (0) 20 7116 1000. COMPANY NO. 48839.
Notes
This document contains inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) No. 596/2014 (as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018, as amended)
The terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement analysis compares
the year ended 31 December 2021 to the corresponding 12 months of 2020 and
balance sheet analysis as at 31 December 2021 with comparatives relating to 31
December 2020. The abbreviations '£m' and '£bn' represent millions and
thousands of millions of Pounds Sterling respectively; the abbreviations '$m'
and '$bn' represent millions and thousands of millions of US Dollars
respectively; and the abbreviations '€m' and '€bn' represent millions and
thousands of millions of Euros respectively.
There are a number of key judgement areas, for example impairment
calculations, which are based on models and which are subject to ongoing
adjustment and modifications. Reported numbers reflect best estimates and
judgements at the given point in time.
Relevant terms that are used in this document but are not defined under
applicable regulatory guidance or International Financial Reporting Standards
(IFRS) are explained in the results glossary that can be accessed at
home.barclays/investor-relations/reports-and-events/latest-financial-results
(https://home.barclays/investor-relations/reports-and-events/latest-financial-results/)
.
The information in this document, which was approved by the Board of Directors
on 22 February 2022, does not comprise statutory accounts within the meaning
of Section 434 of the Companies Act 2006. Statutory accounts for the year
ended 31 December 2021, which contained an unmodified audit report under
Section 495 of the Companies Act 2006 (which did not make any statements under
Section 498 of the Companies Act 2006) have been delivered to the Registrar of
Companies in accordance with Section 441 of the Companies Act 2006.
These results will be furnished as a Form 6-K to the US Securities and
Exchange Commission (SEC) as soon as practicable following their publication.
Once furnished with the SEC, a copy of the Form 6-K will be available from the
SEC's website at www.sec.gov (http://www.sec.gov) .
Barclays is a frequent issuer in the debt capital markets and regularly meets
with investors via formal road-shows and other ad hoc meetings. Consistent
with its usual practice, Barclays expects that from time to time over the
coming quarter it will meet with investors globally to discuss these results
and other matters relating to the Group.
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance measures included
in this document provide valuable information to the readers of the financial
statements as they enable the reader to identify a more consistent basis for
comparing the businesses' performance between financial periods and provide
more detail concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for an
assessment of the Group. They also reflect an important aspect of the way in
which operating targets are defined and performance is monitored by Barclays'
management. However, any non-IFRS performance measures in this document are
not a substitute for IFRS measures and readers should consider the IFRS
measures as well. Refer to the appendix on pages 69 to 74 for further
information and calculations of non-IFRS performance measures included
throughout this document, and the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within the meaning
of Section 21E of the US Securities Exchange Act of 1934, as amended, and
Section 27A of the US Securities Act of 1933, as amended, with respect to the
Group. Barclays cautions readers that no forward-looking statement is a
guarantee of future performance and that actual results or other financial
condition or performance measures could differ materially from those contained
in the forward-looking statements. These forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as 'may', 'will',
'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing but also
may be made verbally by members of the management of the Group (including,
without limitation, during management presentations to financial analysts) in
connection with this document. Examples of forward-looking statements include,
among others, statements or guidance regarding or relating to the Group's
future financial position, income growth, assets, impairment charges,
provisions, business strategy, capital, leverage and other regulatory ratios,
capital distributions (including dividend pay-out ratios and expected payment
strategies), projected levels of growth in the banking and financial markets,
projected costs or savings, any commitments and targets (including, without
limitation, environmental, social and governance (ESG) commitments and
targets), estimates of capital expenditures, plans and objectives for future
operations, projected employee numbers, IFRS impacts and other statements that
are not historical fact. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and circumstances.
The forward-looking statements speak only as at the date on which they are
made. Forward-looking statements may be affected by a number of factors,
including, without limitation: changes in legislation, the development of
standards and interpretations under IFRS, including evolving practices with
regard to the interpretation and application of accounting and regulatory
standards, emerging and developing ESG reporting standards, the outcome of
current and future legal proceedings and regulatory investigations, future
levels of conduct provisions, the policies and actions of governmental and
regulatory authorities, the Group's ability along with governments and other
stakeholders to measure, manage and mitigate the impacts of climate change
effectively, environmental, social and geopolitical risks, and the impact of
competition. In addition, factors including (but not limited to) the following
may have an effect: capital, leverage and other regulatory rules applicable to
past, current and future periods; UK, US, Eurozone and global macroeconomic
and business conditions; the effects of any volatility in credit markets;
market related risks such as changes in interest rates and foreign exchange
rates; effects of changes in valuation of credit market exposures; changes in
valuation of issued securities; volatility in capital markets; changes in
credit ratings of any entity within the Group or any securities issued by such
entities; direct and indirect impacts of the coronavirus (COVID-19) pandemic;
instability as a result of the UK's exit from the European Union ("EU"), the
effects of the EU-UK Trade and Cooperation Agreement and the disruption that
may subsequently result in the UK and globally; the risk of cyber-attacks,
information or security breaches or technology failures on the Group's
reputation, business or operations; and the success of future acquisitions,
disposals and other strategic transactions. A number of these influences and
factors are beyond the Group's control. As a result, the Group's actual
financial position, future results, capital distributions, capital, leverage
or other regulatory ratios or other financial and non-financial metrics or
performance measures or ability to meet commitments and targets may differ
materially from the statements or guidance set forth in the Group's
forward-looking statements. Additional risks and factors which may impact the
Group's future financial condition and performance are identified in Barclays
PLC's filings with the SEC (including, without limitation, Barclays PLC's
Annual Report on Form 20-F for the fiscal year ended 31 December 2021), which
are available on the SEC's website at www.sec.gov (http://www.sec.gov) .
Subject to Barclays' obligations under the applicable laws and regulations of
any relevant jurisdiction, (including, without limitation, the UK and the US),
in relation to disclosure and ongoing information, we undertake no obligation
to update publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Performance Highlights
Barclays delivered a record Group profit before tax of £8.4bn, and return on
tangible equity (RoTE) of 13.4%, resulting in a meaningful increase in
distributions equivalent to 15p per share(1)
C. S. Venkatakrishnan, Group Chief Executive, commented
"Barclays demonstrated a clear and sustainable path to growth over the course
of 2021, delivering double-digit RoTE across our operating businesses, and
returning £2.5(1) billion of excess capital. Our strategic priorities will
continue to develop the diversified business model that we have established,
investing in advanced technology capabilities in our consumer businesses,
delivering sustainable growth across our global Corporate and Investment Bank,
and reinforcing our commitment to aiding the transition to a low-carbon
economy."
Key financial metrics:
Income Cost: income ratio Profit before tax RoTE EPS CET1 TNAV per share Total capital return
ratio
2021 £21.9bn 66% £8.4bn 13.4% 37.5p 15.1% 292p 15p equivalent per share(1)
Q421 £5.2bn 72% £1.5bn 9.3% 6.6p
Group Finance Director
Tushar Morzaria has decided to retire as Group Finance Director and as an
Executive Director of Barclays PLC and Barclays Bank PLC, in each case with
effect from 22 April 2022. He will be succeeded by Anna Cross, currently
Deputy Group Finance Director, who will take up the role of Group Finance
Director subject to regulatory approval, and join the Boards of Barclays PLC
and Barclays Bank PLC as an Executive Director, in each case with effect from
23 April 2022. Anna will also join the Group Executive Committee, reporting to
Group Chief Executive C.S. Venkatakrishnan.
2021 performance highlights:
· All operating divisions delivered double-digit returns: Barclays UK generated
a RoTE of 17.6% (2020: 3.2%) and Barclays International a RoTE of 14.9% (2020:
7.1%), including a 14.9% (2020: 9.5%) RoTE in the Corporate and Investment
Bank (CIB) and 15.0% (2020: (7.5)%) RoTE in Consumer, Cards and Payments
(CC&P)
· Record CIB profitability: profit before tax of £5.8bn, including record
Investment Banking fees and Equities income(2)
· Consumer and payments businesses benefitted from economic recovery: delivered
robust UK mortgage lending and deposit growth. Experienced positive trends in
UK and US consumer spending and payments volumes
· Cost discipline enabled investment for growth: excluding structural cost
actions and performance costs, Group total operating expenses were flat at
£12.0bn, as efficiency savings were reinvested to drive income growth
· Net credit impairment release: £0.7bn release (2020: £4.8bn charge) driven
by an improved macroeconomic outlook, reduced unsecured lending balances and
benign credit environment. Coverage ratios on unsecured lending remain higher
than pre-COVID-19 pandemic levels
· Strong capital: Common equity tier 1 (CET1) ratio of 15.1% (December 2020:
15.1%) and tangible net asset value (TNAV) per share increased 9% to 292p
· Increased capital distributions: total dividend for 2021 of 6.0p per share
(2020: 1.0p), including a 4.0p per share 2021 full year dividend. Intend to
initiate a share buyback of up to £1.0bn, bringing the total share buybacks
announced in relation to 2021 to £1.5bn and total capital return equivalent
to 15p per share
Outlook:
· Income: Barclays' diversified income streams position the Group well for the
ongoing economic recovery and rising interest rates
· Impairment: impairment charge is expected to remain below pre-COVID-19
pandemic levels in coming quarters given reduced unsecured lending balances
and an improved macroeconomic outlook
· Costs: Barclays will continue to drive efficiency savings, however,
inflationary pressures and planned investment spend are expected to result in
FY22 costs, excluding structural cost actions and performance costs being
modestly higher than £12.0bn(3)
· Capital: the CET1 ratio is expected to be impacted by c.80bps of regulatory
changes which took effect from 1 January 2022. The announced share buyback of
up to £1.0bn will also reduce the CET1 ratio by c.30bps
· Capital returns: capital returns policy incorporates a progressive ordinary
dividend, supplemented as appropriate, including with share buybacks
1 Includes total dividend for 2021 of 6.0p per share and total share buybacks
announced in relation to 2021 of £1.5bn.
2 On a comparable basis, period covering 2014 - 2021. Pre 2014 financials were
not restated following re-segmentation in 2016.
3 Group cost outlook is based on an average rate of 1.35 (USD/GBP) in 2022 and
subject to foreign currency movements.
Barclays Group results
for the year ended
31.12.21 31.12.20
£m £m % Change
Net interest income 8,073 8,122 (1)
Net fee, commission and other income 13,867 13,644 2
Total income 21,940 21,766 1
Credit impairment releases/(charges) 653 (4,838)
Net operating income 22,593 16,928 33
Operating costs (14,092) (13,434) (5)
UK bank levy (170) (299) 43
Litigation and conduct (177) (153) (16)
Total operating expenses (14,439) (13,886) (4)
Other net income 260 23
Profit before tax 8,414 3,065
Tax charge (1,188) (604) (97)
Profit after tax 7,226 2,461
Non-controlling interests (47) (78) 40
Other equity instrument holders (804) (857) 6
Attributable profit 6,375 1,526
Performance measures
Return on average tangible shareholders' equity 13.4% 3.2%
Average tangible shareholders' equity (£bn) 47.4 48.3
Cost: income ratio 66% 64%
Loan loss rate (bps) - 138
Basic earnings per share 37.5p 8.8p
Dividend per share 6.0p 1.0p
Share buyback announced(1) (£m) 1,500 700
Total payout equivalent per share 15.0p 5.0p
Basic weighted average number of shares (m) 16,985 17,300 (2)
Period end number of shares (m) 16,752 17,359 (3)
Balance sheet and capital management(2) £bn £bn
Loans and advances at amortised cost 361.5 342.6 6
Loans and advances at amortised cost impairment coverage ratio 1.6% 2.4%
Deposits at amortised cost 519.4 481.0 8
Tangible net asset value per share 292p 269p 9
Common equity tier 1 ratio 15.1% 15.1%
Common equity tier 1 capital 47.5 46.3
Risk weighted assets 314.1 306.2
Average UK leverage ratio 4.9% 5.0%
UK leverage ratio 5.3% 5.3%
Funding and liquidity
Group liquidity pool (£bn) 291 266 9
Liquidity coverage ratio 168% 162%
Loan: deposit ratio 70% 71%
1 Barclays intends to initiate a share buyback of up to £1.0bn, which is
expected to commence in Q122. This brings the total share buybacks announced
in relation to FY21 to £1.5bn.
2 Refer to pages 48 to 53 for further information on how capital, Risk Weighted
Assets (RWAs) and leverage are calculated.
Group Chief Executive Review
"2021 is the year in which Barclays demonstrated the results of the strategy
we set out in 2016. Having set out to build a bank able to deliver
double-digit returns through the cycle, we delivered a double-digit RoTE of
13.4%, a resilient, growing and well-capitalised balance sheet with a CET1
ratio of 15.1%, and a strong profit before tax of £8.4 billion even amidst
the uncertainty of the global COVID-19 pandemic. Barclays UK delivered a
strong double-digit RoTE, as did the Corporate and Investment Bank (CIB) and
our Consumer, Cards and Payments (CC&P) businesses within Barclays
International. The CIB delivered its strongest ever profit before tax of £5.8
billion, whilst CC&P and Barclays UK significantly increased their
profitability.
I am proud that we have delivered this resilient performance while continuing
to support our clients and customers through another year of COVID-19 related
challenges. Taken together, our 2021 performance has enabled us meaningfully
to increase returns to our shareholders, with £2.5 billion of excess capital
returned via a total dividend of 6.0 pence per share and £1.5 billion of
announced share buybacks.
Looking ahead into 2022, we are focussed on delivering consistent performance
and returns across our businesses, supported by robust management of our
balance sheet, costs and controls. We recognise that the economic environment
is more than usually uncertain, with rising inflation rates and tighter
monetary policy, while many parts of society continue to recover from the
severe social and economic effects of the COVID-19 pandemic.
In addition, we seek to manage through, and take advantage of, three long-term
changes taking place in financial services. They are:
1. Next-generation consumer financial services
Digitisation has liberated finance, providing our customers and clients with
an explosion of cheaper and better products and services, and a more seamless
and efficient user experience. We see the dominant business challenge for the
next decade as continuing to transform Barclays to deliver services digitally,
with ease, flexibility and adaptability. We will need to compete not just with
other banks for talent and ideas, but with well-funded, superbly equipped and
lightly regulated - therefore more fleet-footed - technology firms. This is
particularly true in our consumer businesses, where we have set a clear
priority to deliver next generation, digitised consumer financial services.
Across Barclays UK and CC&P, we will continue to invest heavily in our
digital capabilities as a means of delivering better products and services,
more efficiently, and with higher profitability. As an example, we have
collaborated with the world's largest retailer, Amazon, to bring a digital
'Buy Now Pay Later' product to users in Germany and the UK. We provide
customers with accessible financing, backed by the consumer protection and
trustworthiness of engaging with a regulated lender. This exemplifies for me
how we should be operating: innovation, founded in trust and responsibility.
In the move to digitise finance, we must make provision for those who are not
using technology to access services. That includes access to banking and cash
in the UK, where our active participation has helped the Cash Action Group
create shared solutions to this social challenge.
2. Growth of the public and private global capital markets
Barclays is the sixth largest global investment bank(1), and the largest not
domiciled in the US. It is therefore a competitive strength for us that we are
one of the few firms that can afford to offer these services and also be
successful at it. The value of our franchise depends on the growth and health
of the global capital markets. Combining the total market capitalisation of
those securities around the world, we have seen roughly 50% growth in the
value of equities and bonds outstanding over the last three years alone,
increasing from $123 trillion in 2018 to over $193 trillion today(2).
As the public markets have grown significantly, so too have the private ones,
at a greater pace. Since 2018, total assets under management in the private
markets have grown more than 60% from $6.0 trillion to $9.8 trillion(3). The
largest private equity and credit funds dominate these markets. They are among
our biggest clients, requiring innovative financial structures to support
their own sophisticated needs.
Capital Markets are cyclical and can be volatile. We are focused on building a
business that will deliver sustainable and diversified performance. Through
2021 we have been able to grow our revenues in Investment Banking fees and
Equities. Our performance has benefited not just from higher market activity,
but by hiring talented traders and bankers, investment in systems and
technology, and a consistent commitment to Investment Banking, after a period
of wavering a decade ago.
1 Top 6 Global Investment Bank supported by #6 ranking in Investment Banking
(Source: Dealogic) and #6 ranking in Global Markets (Source: Coalition
Greenwich, FY21 Preliminary Competitor analysis).
2 Bonds represent debt issuance outstanding for Investment grade (Source:
Bloomberg Barclays Global Aggregate Index LEGATRUU) and high yield (Source:
Bloomberg Barclays Global High Yield Index LG30TRUU). Equities represents the
market capitalisation from all shares outstanding (Source: Bloomberg WCAUWRLD
Index).
3 Source: Preqin "Future of Alternatives 2025" data excluding Hedge Funds,
period covering 2018 - H121.
Building on our culture of innovation and quality, we want to sustain and grow
our market share and diversify our income to protect earnings even during
weaker periods in the cycle. Our strategic priority is to deliver sustainable
growth in the Corporate and Investment Bank. As in the consumer business,
broad technological prowess is essential. We want to be a best-in-class
electronic bank to our Global Markets clients. We will continue to expand in
prime financing, to grow our share in securitised products and take our
Investment Banking strength into growing sectors such as Technology and
Healthcare. In the Corporate Bank, we want to diversify our revenue by growing
our market share in Europe and the US, and by growing Transaction Banking.
3. Transition to a low-carbon economy
We may now be on the threshold of an era of innovation that aims to halt and
negate the deleterious effects on the earth of greenhouse gas emissions. This
is the drive to net-zero, limiting the use of fossil fuels, emphasising
renewable energy and reversing the post-industrial growth in greenhouse gas
emissions. Financial firms have a central role to play in this transition,
providing credit and intermediating investment. The scale of the investment
needed is vast, estimated to be over $3-5 trillion(1) per year over the next
30 years, drawing on global capital markets.
Our strategic priority is to capture opportunities as we transition to a
low-carbon economy. Barclays must have a constructive role in managing the
transition. As this fundamental re-organisation of the global economy takes
place, affecting every business in every sector, we want to capture
opportunity for our company in meeting the demand for climate change related
financing. That means being the trusted partner for our customers and clients
as they transition, advising and supporting them as they adapt their business
models and lifestyles to become more sustainable. It requires us to use our
investment banking and capital markets expertise to help build low-carbon
energy capacity. It necessitates developing banking products that help
consumers and small businesses make greener choices, and invest our own equity
capital in the young companies that are inventing the low-carbon emission
technologies of tomorrow.
As we look forward, there also remains a continuing need for Barclays to
support inclusion in all its forms, educating and employing the disadvantaged,
improving financial literacy, protecting the vulnerable from financial
exploitation, and sustaining the economic life of the societies we serve.
With a clear strategy and demonstrable resilience, we are well-positioned to
take advantage of these changes that will shape our industry through 2022 and
beyond. In doing so we seek to remain faithful to the principles of our Quaker
founders in 1690 - integrity, community and stewardship."
C. S. Venkatakrishnan, Group Chief Executive
1 $3-5 trillion as estimated in the GFMA/BCG (Global Financial Markets
Association/ Boston Consulting Group) Climate Finance Markets and the Real
Economy report, December 2020.
Group Finance Director's Review
Group performance(1)
· Barclays' diversified business model delivered a record profit before tax of
£8,414m (2020: £3,065m), RoTE of 13.4% (2020: 3.2%) and earnings per share
(EPS) of 37.5p (2020: 8.8p)
· Total income increased to £21,940m (2020: £21,766m). Barclays UK income
increased 3%. Barclays International income decreased 2%, with CIB income down
1% and CC&P income down 3%. Excluding the impact of the 8% depreciation of
average USD against GBP, total income was up, reflecting Barclays' diversified
income streams
· Credit impairment net release of £653m (2020: £4,838m charge). The net
release included a reversal of £1.3bn in non-default charges, primarily
reflecting the improved macroeconomic outlook. Excluding this reversal, the
charge was £0.7bn, reflecting reduced unsecured lending balances and low
delinquency. Economic uncertainty adjustments have been maintained firstly in
respect of customers and clients who may be more vulnerable to the withdrawal
of support schemes and emerging economic uncertainty, and secondly, model
uncertainty which does not capture certain macroeconomic and risk parameter
uncertainties. The reduction in unsecured lending balances and growth in
secured balances have contributed to a decrease in the Group's loan coverage
ratio to 1.6% (December 2020: 2.4%). Coverage ratios in unsecured loan
portfolios remained elevated compared to pre-COVID-19 pandemic levels
· Total operating expenses increased 4% to £14,439m, due to structural cost
actions of £648m primarily relating to the real estate review in Q221 and
Barclays UK transformation costs in Q421, higher performance costs that
reflect improved returns, and continued investment and business growth. This
was partially offset by the benefit from the depreciation of average USD
against GBP, efficiency savings and a lower UK bank levy charge, primarily due
to the reduced rate. This resulted in a cost: income ratio of 66% (2020: 64%).
Excluding structural cost actions of £648m (2020: £368m), operating expenses
would have been £13,791m (2020: £13,518m), resulting in a cost: income ratio
of 63% (2020: 62%)
· The effective tax rate was 14.1% (2020: 19.7%). This reflects a £462m tax
benefit recognised for the re-measurement of the Group's UK deferred tax
assets (DTAs) as a result of the enactment in 2021 of a UK corporation tax
rate increase from 19% to 25% effective from 1 April 2023
· Attributable profit was £6,375m (2020: £1,526m)
· Following the completion of the £700m share buyback announced with FY20
results and the £500m share buyback announced with H121 results, the period
end number of shares was 16,752m (December 2020: 17,359m)
· Total assets increased to £1,384bn (December 2020: £1,350bn) reflecting a
£47bn increase in cash at central banks following strong client deposit
growth and a £19bn increase in loans and advances at amortised cost due to
increased customer lending
· TNAV per share increased to 292p (December 2020: 269p) primarily reflecting
37.5p of EPS, partially offset by negative reserve movements
Group capital and leverage
· The CET1 ratio was stable at 15.1% (December 2020: 15.1%)
- CET1 capital increased by £1.2bn to £47.5bn as profit before tax of £8.4bn
was partially offset by share buybacks, 2021 dividends and equity coupons paid
and foreseen as well as pensions deficit contribution payments
- RWAs increased £7.9bn to £314.1bn primarily resulting from the recalibration
of the modelled market risk stress period, increased client and trading
activity within CIB and growth in mortgages within Barclays UK, partially
offset by lower unsecured balances
· The average UK leverage ratio decreased to 4.9% (December 2020: 5.0%). The
average leverage exposure increased by £80.2bn to £1,227.1bn largely driven
by an increase in securities financing transactions (SFTs), potential future
exposure (PFE) on derivatives and trading portfolio assets (TPAs)
1 The 8% depreciation of average USD against GBP adversely impacted income and
profits and positively impacted total operating expenses.
Group funding and liquidity
· The liquidity pool was £291bn (December 2020: £266bn) and the liquidity
coverage ratio remained significantly above the 100% regulatory requirement at
168% (December 2020: 162%), equivalent to a surplus of £116bn (December 2020:
£99bn). The increase in the pool and surplus was driven by deposit growth,
borrowing from the Bank of England's Term Funding Scheme with additional
incentives for small and medium-sized enterprises (SMEs) and an increase in
wholesale funding, which were partly offset by an increase in business funding
consumption
· Wholesale funding outstanding, excluding repurchase agreements, was £167.5bn
(December 2020: £145.0bn). The Group issued £11.0bn equivalent of minimum
requirement for own funds and eligible liabilities (MREL) instruments from
Barclays PLC (the Parent company) during the year. The Group has a strong MREL
position with a ratio of 8% of CRR leverage exposures which is in excess of
its regulatory requirement of 6.9%
Other matters
· The UK Government has announced that the banking surcharge rate will be
reduced from 8% to 3% effective from 1 April 2023. This change has been
substantively enacted in Q122 at which point the Group's UK DTAs will be
re-measured and decreased with a resulting tax charge. If this had been
enacted by 31 December 2021 it would have resulted in the Group's UK DTAs
being re-measured and decreasing with a tax charge in the income statement of
£346m and a tax credit within other comprehensive income of £87m
Capital distributions
· Barclays is committed to maintaining an appropriate balance between delivering
attractive total cash returns to shareholders, investment in the business and
maintaining a strong capital position. Barclays pays a progressive ordinary
dividend, taking into account these objectives and the earnings outlook of the
Group. The Board will also continue to supplement the ordinary dividends as
appropriate, including with share buybacks
· Barclays announces a total dividend for 2021 of 6.0p per share (2020: 1.0p),
including a 2021 full year dividend of 4.0p per share to be paid on 5 April
2022. 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 intends to initiate a share buyback of up to £1.0bn, which is
expected to commence in Q122. This brings the total share buybacks announced
in relation to FY21 to £1.5bn
· The 6.0p total dividend per share and total share buybacks of £1.5bn in
relation to FY21 bring the total capital return equivalent to 15p per share
Group targets
Barclays continues 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%
Tushar Morzaria, Group Finance Director
Results by Business
Barclays UK Year ended Year ended
31.12.21 31.12.20
Income statement information £m £m % Change
Net interest income 5,202 5,234 (1)
Net fee, commission and other income 1,334 1,113 20
Total income 6,536 6,347 3
Credit impairment releases/(charges) 365 (1,467)
Net operating income 6,901 4,880 41
Operating costs (4,357) (4,270) (2)
UK bank levy (36) (50) 28
Litigation and conduct (37) (32) (16)
Total operating expenses (4,430) (4,352) (2)
Other net income - 18
Profit before tax 2,471 546
Attributable profit 1,756 325
Balance sheet information £bn £bn
Loans and advances to customers at amortised cost 208.8 205.4
Total assets 321.2 289.1
Customer deposits at amortised cost 260.6 240.5
Loan: deposit ratio 85% 89%
Risk weighted assets 72.3 73.7
Period end allocated tangible equity 10.0 9.7
Key facts
Average loan to value of mortgage portfolio(1) 51% 51%
Average loan to value of new mortgage lending(1) 70% 68%
Number of branches 666 859
Mobile banking active customers 9.7m 9.2m
30 day arrears rate - Barclaycard Consumer UK 1.0% 1.7%
Performance measures
Return on average allocated tangible equity 17.6% 3.2%
Average allocated tangible equity (£bn) 10.0 10.1
Cost: income ratio 68% 69%
Loan loss rate (bps) - 68
Net interest margin 2.52% 2.61%
1 Average loan to value (LTV) 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 Year ended Year ended
31.12.21 31.12.20
Analysis of total income £m £m % Change
Personal Banking 3,883 3,522 10
Barclaycard Consumer UK 1,250 1,519 (18)
Business Banking 1,403 1,306 7
Total income 6,536 6,347 3
Analysis of credit impairment releases/(charges)
Personal Banking 28 (380)
Barclaycard Consumer UK 404 (881)
Business Banking (67) (206) 67
Total credit impairment releases/(charges) 365 (1,467)
Analysis of loans and advances to customers at amortised cost £bn £bn
Personal Banking 165.4 157.3
Barclaycard Consumer UK 8.7 9.9
Business Banking 34.7 38.2
Total loans and advances to customers at amortised cost 208.8 205.4
Analysis of customer deposits at amortised cost
Personal Banking 196.4 179.7
Barclaycard Consumer UK - 0.1
Business Banking 64.2 60.7
Total customer deposits at amortised cost 260.6 240.5
Barclays UK delivered a strong FY21 RoTE of 17.6%, reflecting improved income
performance across Personal Banking and Business Banking, and a net impairment
release following improvements in the UK macroeconomic outlook. Structural
cost actions of £288m (2020: £150m) have been taken to reduce the cost base
over time through efficiency savings. Balances continued to grow, with
increased mortgage lending of £9.9bn and deposits of £20.1bn, further adding
to a strong liquidity position.
2021 compared to 2020
Income statement
· Profit before tax increased to £2,471m (2020: £546m). RoTE was 17.6% (2020:
3.2%) reflecting an improving UK operating environment
· Total income increased 3% to £6,536m. Net interest income reduced 1% to
£5,202m with a net interest margin (NIM) of 2.52% (2020: 2.61%) as strong
customer retention and improved margins in mortgages were more than offset by
lower unsecured lending balances. Net fee, commission and other income
increased 20% to £1,334m, returning back towards pre-COVID-19 pandemic levels
- Personal Banking income increased 10% to £3,883m, reflecting strong growth in
mortgages, alongside improved margins during the first three quarters, balance
growth in deposits and the non-recurrence of COVID-19 customer support
actions. This was partially offset by deposit margin compression from lower
interest rates and lower unsecured lending balances
- Barclaycard Consumer UK income decreased 18% to £1,250m, as repayments by
customers and reduced borrowing resulted in a lower level of interest earning
lending (IEL) balances. However, IEL balances began to stabilise throughout
H221
- Business Banking income increased 7% to £1,403m 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 £365m (2020: £1,467m charge) was driven by
an improved macroeconomic outlook and lower unsecured lending balances due to
customer repayments and lower delinquencies. As at 31 December 2021, 30 and 90
day arrears rates in UK cards were 1.0% (Q420: 1.7%) and 0.2% (Q420: 0.8%)
respectively
· Total operating expenses increased 2% to £4,430m primarily reflecting
increased investment spend, including structural cost actions of £288m (2020:
£150m). Excluding structural cost actions, operating expenses would have been
broadly stable at £4,142m (2020: £4,202m), with higher operational and
customer service costs, primarily driven by increased volumes, offset by
efficiency savings
Balance sheet
· Loans and advances to customers at amortised cost increased 2% to £208.8bn
predominantly from £9.9bn of mortgage growth following a strong flow of new
applications as well as strong customer retention. This was offset by a
£2.2bn decrease in the Education, Social Housing and Local Authority (ESHLA)
portfolio carrying value as interest rate yield curves steepened, £1.6bn
lower unsecured lending balances and £1.3bn lower Business Banking balances
as repayment of government scheme lending commences
· Customer deposits at amortised cost increased 8% to £260.6bn reflecting an
increase of £16.7bn and £3.5bn in Personal Banking and Business Banking
respectively, further strengthening the liquidity position and contributing to
a loan: deposit ratio of 85% (December 2020: 89%)
· RWAs decreased to £72.3bn (December 2020: £73.7bn) driven by a reduction in
unsecured lending and the value of the ESHLA portfolio, partially offset by
growth in mortgages
Barclays International Year ended Year ended
31.12.21 31.12.20
Income statement information £m £m % Change
Net interest income 3,263 3,282 (1)
Net trading income 5,693 6,920 (18)
Net fee, commission and other income 6,709 5,719 17
Total income 15,665 15,921 (2)
Credit impairment releases/(charges) 288 (3,280)
Net operating income 15,953 12,641 26
Operating costs (9,076) (8,765) (4)
UK bank levy (134) (240) 44
Litigation and conduct (125) (48)
Total operating expenses (9,335) (9,053) (3)
Other net income 40 28 43
Profit before tax 6,658 3,616 84
Attributable profit 4,817 2,220
Balance sheet information £bn £bn
Loans and advances at amortised cost 133.8 122.7
Trading portfolio assets 146.9 127.7
Derivative financial instrument assets 261.5 301.8
Financial assets at fair value through the income statement 188.2 170.7
Cash collateral and settlement balances 88.1 97.5
Other assets 225.6 221.4
Total assets 1,044.1 1,041.8
Deposits at amortised cost 258.8 240.5
Derivative financial instrument liabilities 256.4 300.4
Loan: deposit ratio 52% 51%
Risk weighted assets 230.9 222.3
Period end allocated tangible equity 33.2 30.2
Performance measures
Return on average allocated tangible equity 14.9% 7.1%
Average allocated tangible equity (£bn) 32.4 31.5
Cost: income ratio 60% 57%
Loan loss rate (bps) - 257
Net interest margin 4.01% 3.64%
Analysis of Barclays International
Corporate and Investment Bank Year ended Year ended
31.12.21 31.12.20
Income statement information £m £m % Change
Net interest income 1,351 1,084 25
Net trading income 5,652 6,975 (19)
Net fee, commission and other income 5,331 4,417 21
Total income 12,334 12,476 (1)
Credit impairment releases/(charges) 473 (1,559)
Net operating income 12,807 10,917 17
Operating costs (6,818) (6,689) (2)
UK bank levy (128) (226) 43
Litigation and conduct (17) (4)
Total operating expenses (6,963) (6,919) (1)
Other net income 2 6 (67)
Profit before tax 5,846 4,004 46
Attributable profit 4,202 2,554 65
Balance sheet information £bn £bn
Loans and advances at amortised cost 100.0 92.4
Trading portfolio assets 146.7 127.5
Derivative financial instrument assets 261.5 301.7
Financial assets at fair value through the income statement 188.1 170.4
Cash collateral and settlement balances 87.2 96.7
Other assets 195.8 194.9
Total assets 979.3 983.6
Deposits at amortised cost 189.4 175.2
Derivative financial instrument liabilities 256.4 300.3
Risk weighted assets 200.7 192.2
Performance measures
Return on average allocated tangible equity 14.9% 9.5%
Average allocated tangible equity (£bn) 28.3 27.0
Cost: income ratio 56% 55%
Analysis of total income £m £m
FICC 3,448 5,138 (33)
Equities 2,967 2,471 20
Global Markets 6,415 7,609 (16)
Advisory 921 561 64
Equity capital markets 813 473 72
Debt capital markets 1,925 1,697 13
Investment Banking fees 3,659 2,731 34
Corporate lending 588 590 -
Transaction banking 1,672 1,546 8
Corporate 2,260 2,136 6
Total income 12,334 12,476 (1)
Analysis of Barclays International
Consumer, Cards and Payments Year ended Year ended
31.12.21 31.12.20
Income statement information £m £m % Change
Net interest income 1,912 2,198 (13)
Net fee, commission, trading and other income 1,419 1,247 14
Total income 3,331 3,445 (3)
Credit impairment charges (185) (1,721) 89
Net operating income 3,146 1,724 82
Operating costs (2,258) (2,076) (9)
UK bank levy (6) (14) 57
Litigation and conduct (108) (44)
Total operating expenses (2,372) (2,134) (11)
Other net income 38 22 73
Profit/(loss) before tax 812 (388)
Attributable profit/(loss) 615 (334)
Balance sheet information £bn £bn
Loans and advances at amortised cost 33.8 30.3
Total assets 64.8 58.2
Deposits at amortised cost 69.4 65.3
Risk weighted assets 30.2 30.1
Key facts
30 day arrears rate - Barclaycard US 1.6% 2.5%
US cards customer FICO score distribution
<660 10% 13%
>660 90% 87%
Total number of Barclaycard payments clients c.380,000 c.365,000
Value of payments processed (£bn)(1) 277 274
Performance measures
Return on average allocated tangible equity 15.0% (7.5)%
Average allocated tangible equity (£bn) 4.1 4.5
Cost: income ratio 71% 62%
Loan loss rate (bps) 51 517
Analysis of total income £m £m
International Cards and Consumer Bank 2,092 2,433 (14)
Private Bank 781 707 10
Unified Payments 458 305 50
Total income 3,331 3,445 (3)
1 Includes £270bn (2020: £268bn) of merchant acquiring payments.
Barclays International delivered a RoTE of 14.9% reflecting the benefits of a
diversified business. CIB delivered a RoTE of 14.9% reflecting a strong
performance in Investment Banking fees and Equities, offset by a decrease in
FICC against a very strong prior year comparative, and a net credit impairment
release following improvements in the macroeconomic outlook. CC&P RoTE
improved significantly to 15.0% as a decline in income, reflecting lower cards
balances, was more than offset by an improvement in impairment.
2021 compared to 2020
Income statement
· Profit before tax increased 84% to £6,658m with a RoTE of 14.9% (2020: 7.1%),
reflecting a RoTE of 14.9% (2020:9.5%) in CIB and 15.0% (2020: (7.5)%) in
CC&P
· The 8% depreciation of average USD against GBP adversely impacted income and
profits and positively impacted total operating expenses
· Total income decreased to £15,665m (2020: £15,921m)
- CIB income decreased 1% to £12,334m
- Global Markets income decreased 16% to £6,415m as a strong performance in
Equities, representing the best full year on a comparable basis(1), was more
than offset by FICC. Equities income increased 20% to £2,967m driven by
strong client activity in derivatives and increased client balances in
financing. FICC income decreased 33% to £3,448m due to tighter spreads and
the non-recurrence of prior year client activity levels
- Investment Banking fees income, representing the best full year on a
comparable basis(1), increased 34% to £3,659m driven by a strong performance
in Advisory and Equity capital markets reflecting an increase in the fee pool
and an increased market share(2)
- Within Corporate, Transaction banking income increased 8% to £1,672m driven
by deposits and higher payments volumes. Corporate lending income was stable
at £588m (2020: £590m) driven by a current year fair value loan write-off on
a single name and increased cost of hedging, whilst the prior year included
net losses from the mark-to-market of lending and related hedge positions
- CC&P income decreased 3% to £3,331m
- International Cards and Consumer Bank income decreased 14% to £2,092m
reflecting lower average cards balances whilst balances increased during H221
- Private Bank income increased 10% to £781m, reflecting client balance growth
and a gain on a property sale
- Unified Payments income increased 50% to £458m driven by the non-recurrence
of a c.£100m valuation loss on Barclays' preference shares in Visa Inc. in
Q220, which have subsequently been fully disposed of in FY21, and merchant
acquiring turnover growth following the easing of lockdown restrictions
· Credit impairment net release of £288m (2020: £3,280m charge) was driven by
an improved macroeconomic outlook
- CIB credit impairment net release of £473m (2020: £1,559m charge) was also
supported by net single name wholesale loan releases and a benign credit
environment
- CC&P credit impairment charge of £185m (2020: £1,721m) was partially
driven by lower delinquencies and higher customer repayments. As at 31
December 2021, 30 and 90 day arrears in US cards were 1.6% (Q420: 2.5%) and
0.8% (Q420: 1.4%) respectively
· Total operating expenses increased 3% to £9,335m
- CIB total operating expenses increased 1% to £6,963m due to higher
performance costs, that reflect an improvement in returns, partly offset by a
lower bank levy charge, primarily due to the reduced rate
- CC&P total operating expenses increased 11% to £2,372m driven by the
impact of higher investment spend, including an increase in marketing and
costs for existing and new partnerships, and customer remediation costs
related to a legacy portfolio
1 Period covering 2014 - 2021. Pre 2014 financials were not restated following
re-segmentation in 2016.
2 Data source: Dealogic for the period covering 1 January to 31 December 2021.
Balance sheet
· Loans and advances at amortised cost increased £11.1bn to £133.8bn due to
increased lending across CIB and CC&P
· Trading portfolio assets increased £19.2bn to £146.9bn predominantly due to
increased activity in Equities
· Derivative financial instruments assets decreased £40.3bn and liabilities
decreased £44.0bn to £261.5bn and £256.4bn respectively, driven by an
increase in major interest rate curves and reduced client activity in FICC
· Financial assets at fair value through the income statement increased £17.5bn
to £188.2bn driven by increased secured lending
· Cash collateral and settlement balances decreased £9.4bn to £88.1bn
· Deposits at amortised cost increased £18.3bn to £258.8bn due to clients
increasing liquidity
· RWAs increased to £230.9bn (December 2020: £222.3bn) primarily resulting
from the recalibration of the modelled market risk stress period, and
increased client and trading activity within CIB
Head Office Year ended Year ended
31.12.21 31.12.20
Income statement information £m £m % Change
Net interest income (392) (393) -
Net fee, commission and other income 131 (109)
Total income (261) (502) 48
Credit impairment charges - (91)
Net operating income (261) (593) 56
Operating costs (659) (399) (65)
UK bank levy - (9)
Litigation and conduct (15) (73) 79
Total operating expenses (674) (481) (40)
Other net income/(expenses) 220 (23)
Loss before tax (715) (1,097) 35
Attributable loss (198) (1,019) 81
Balance sheet information £bn £bn
Total assets 19.0 18.6
Risk weighted assets 11.0 10.2
Period end allocated tangible equity 5.7 6.8
Performance measures
Average allocated tangible equity (£bn) 5.0 6.7
2021 compared to 2020
Income statement
· Loss before tax was £715m (2020: £1,097m)
· Total income was an expense of £261m (2020: £502m), which primarily
reflected hedge accounting, funding costs on legacy capital instruments and
treasury items, partially offset by mark-to-market gains on legacy investments
and the recognition of dividends on Barclays' stake in Absa Group Limited
· Total operating expenses were £674m (2020: £481m), which included £266m
relating to structural cost actions taken as part of the real estate review in
Q221, as well as costs associated with the discontinued use of software assets
· Other net income was £220m (2020: £23m expense) driven by a fair value gain
on investments held by the Business Growth Fund in which Barclays has an
associate interest
Balance sheet
· RWAs were £11.0bn (December 2020: £10.2bn)
Quarterly Results Summary
Barclays Group
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Income statement information £m £m £m £m £m £m £m £m
Net interest income 2,230 1,940 2,052 1,851 1,845 2,055 1,892 2,331
Net fee, commission and other income 2,930 3,525 3,363 4,049 3,096 3,149 3,446 3,952
Total income 5,160 5,465 5,415 5,900 4,941 5,204 5,338 6,283
Credit impairment releases/(charges) 31 (120) 797 (55) (492) (608) (1,623) (2,115)
Net operating income 5,191 5,345 6,212 5,845 4,449 4,596 3,715 4,168
Operating costs (3,514) (3,446) (3,587) (3,545) (3,480) (3,391) (3,310) (3,253)
UK bank levy (170) - - - (299) - - -
Litigation and conduct (46) (32) (66) (33) (47) (76) (20) (10)
Total operating expenses (3,730) (3,478) (3,653) (3,578) (3,826) (3,467) (3,330) (3,263)
Other net income/(expenses) 13 94 21 132 23 18 (26) 8
Profit before tax 1,474 1,961 2,580 2,399 646 1,147 359 913
Tax charge (112) (317) (263) (496) (163) (328) (42) (71)
Profit after tax 1,362 1,644 2,317 1,903 483 819 317 842
Non-controlling interests (27) (1) (15) (4) (37) (4) (21) (16)
Other equity instrument holders (218) (197) (194) (195) (226) (204) (206) (221)
Attributable profit 1,117 1,446 2,108 1,704 220 611 90 605
Performance measures
Return on average tangible shareholders' equity 9.3% 11.9% 18.1% 14.7% 1.8% 5.1% 0.7% 5.1%
Average tangible shareholders' equity (£bn) 48.2 48.4 46.5 46.5 47.6 48.3 50.2 47.0
Cost: income ratio 72% 64% 67% 61% 77% 67% 62% 52%
Loan loss rate (bps) - 13 - 6 56 69 179 223
Basic earnings per share 6.6p 8.5p 12.3p 9.9p 1.3p 3.5p 0.5p 3.5p
Basic weighted average number of shares (m) 16,985 17,062 17,140 17,293 17,300 17,298 17,294 17,278
Period end number of shares (m) 16,752 16,851 16,998 17,223 17,359 17,353 17,345 17,332
Balance sheet and capital management(1) £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 361.5 353.0 348.5 345.8 342.6 344.4 354.9 374.1
Loans and advances at amortised cost impairment coverage ratio 1.6% 1.7% 1.8% 2.2% 2.4% 2.5% 2.5% 2.1%
Total assets 1,384.3 1,406.5 1,376.3 1,379.7 1,349.5 1,421.7 1,385.1 1,444.3
Deposits at amortised cost 519.4 510.2 500.9 498.8 481.0 494.6 466.9 470.7
Tangible net asset value per share 292p 287p 281p 267p 269p 275p 284p 284p
Common equity tier 1 ratio 15.1% 15.4% 15.1% 14.6% 15.1% 14.6% 14.2% 13.1%
Common equity tier 1 capital 47.5 47.3 46.2 45.9 46.3 45.5 45.4 42.5
Risk weighted assets 314.1 307.5 306.4 313.4 306.2 310.7 319.0 325.6
Average UK leverage ratio 4.9% 4.9% 4.8% 4.9% 5.0% 5.1% 4.7% 4.5%
Average UK leverage exposure 1,227.1 1,199.8 1,192.0 1,174.9 1,146.9 1,111.1 1,148.7 1,176.2
UK leverage ratio 5.3% 5.1% 5.0% 5.0% 5.3% 5.2% 5.2% 4.5%
UK leverage exposure 1,136.0 1,161.0 1,153.6 1,145.4 1,090.9 1,095.1 1,071.1 1,178.7
Funding and liquidity
Group liquidity pool (£bn) 291 293 291 290 266 327 298 237
Liquidity coverage ratio 168% 161% 162% 161% 162% 181% 186% 155%
Loan: deposit ratio 70% 69% 70% 69% 71% 70% 76% 79%
1 Refer to pages 48 to 53 for further information on how capital, RWAs and
leverage are calculated.
Quarterly Results by Business
Barclays UK
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Income statement information £m £m £m £m £m £m £m £m
Net interest income 1,313 1,303 1,305 1,281 1,317 1,280 1,225 1,412
Net fee, commission and other income 386 335 318 295 309 270 242 292
Total income 1,699 1,638 1,623 1,576 1,626 1,550 1,467 1,704
Credit impairment releases/(charges) 59 (137) 520 (77) (170) (233) (583) (481)
Net operating income 1,758 1,501 2,143 1,499 1,456 1,317 884 1,223
Operating costs (1,202) (1,041) (1,078) (1,036) (1,134) (1,095) (1,018) (1,023)
UK bank levy (36) - - - (50) - - -
Litigation and conduct (5) (10) (19) (3) 4 (25) (6) (5)
Total operating expenses (1,243) (1,051) (1,097) (1,039) (1,180) (1,120) (1,024) (1,028)
Other net (expenses)/income (1) 1 - - 6 (1) 13 -
Profit/(loss) before tax 514 451 1,046 460 282 196 (127) 195
Attributable profit/(loss) 420 317 721 298 160 113 (123) 175
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 208.8 208.6 207.8 205.7 205.4 203.9 202.0 195.7
Total assets 321.2 312.1 311.2 309.1 289.1 294.5 287.6 267.5
Customer deposits at amortised cost 260.6 256.8 255.5 247.5 240.5 232.0 225.7 207.5
Loan: deposit ratio 85% 86% 87% 88% 89% 91% 92% 96%
Risk weighted assets 72.3 73.2 72.2 72.7 73.7 76.2 77.9 77.7
Period end allocated tangible equity 10.0 10.0 9.9 10.0 9.7 10.0 10.3 10.3
Performance measures
Return on average allocated tangible equity 16.8% 12.7% 29.1% 12.0% 6.5% 4.5% (4.8)% 6.9%
Average allocated tangible equity (£bn) 10.0 10.0 9.9 9.9 9.8 10.1 10.3 10.1
Cost: income ratio 73% 64% 68% 66% 73% 72% 70% 60%
Loan loss rate (bps) - 24 - 14 31 43 111 96
Net interest margin 2.49% 2.49% 2.55% 2.54% 2.56% 2.51% 2.48% 2.91%
Analysis of Barclays UK Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Analysis of total income £m £m £m £m £m £m £m £m
Personal Banking 983 990 987 923 895 833 826 968
Barclaycard Consumer UK 352 293 290 315 354 362 367 436
Business Banking 364 355 346 338 377 355 274 300
Total income 1,699 1,638 1,623 1,576 1,626 1,550 1,467 1,704
Analysis of credit impairment releases/(charges)
Personal Banking 8 (30) 72 (22) (68) (48) (130) (134)
Barclaycard Consumer UK 114 (108) 434 (36) (78) (106) (396) (301)
Business Banking (63) 1 14 (19) (24) (79) (57) (46)
Total credit impairment releases/(charges) 59 (137) 520 (77) (170) (233) (583) (481)
Analysis of loans and advances to customers at amortised cost £bn £bn £bn £bn £bn £bn £bn £bn
Personal Banking 165.4 164.6 162.4 160.4 157.3 155.7 154.9 153.4
Barclaycard Consumer UK 8.7 8.6 8.8 8.7 9.9 10.7 11.5 13.6
Business Banking 34.7 35.4 36.6 36.6 38.2 37.5 35.6 28.7
Total loans and advances to customers at amortised cost 208.8 208.6 207.8 205.7 205.4 203.9 202.0 195.7
Analysis of customer deposits at amortised cost
Personal Banking 196.4 193.3 191.0 186.0 179.7 173.2 169.6 161.4
Barclaycard Consumer UK - - 0.1 0.1 0.1 0.1 0.1 -
Business Banking 64.2 63.5 64.4 61.4 60.7 58.7 56.0 46.1
Total customer deposits at amortised cost 260.6 256.8 255.5 247.5 240.5 232.0 225.7 207.5
Barclays International
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Income statement information £m £m £m £m £m £m £m £m
Net interest income 955 749 811 748 614 823 847 998
Net trading income 789 1,515 1,455 1,934 1,372 1,528 1,660 2,360
Net fee, commission and other income 1,766 1,673 1,553 1,717 1,500 1,430 1,503 1,286
Total income 3,510 3,937 3,819 4,399 3,486 3,781 4,010 4,644
Credit impairment (charges)/releases (23) 18 271 22 (291) (370) (1,010) (1,609)
Net operating income 3,487 3,955 4,090 4,421 3,195 3,411 3,000 3,035
Operating costs (2,160) (2,310) (2,168) (2,438) (2,133) (2,227) (2,186) (2,219)
UK bank levy (134) - - - (240) - - -
Litigation and conduct (38) (3) (63) (21) (9) (28) (11) -
Total operating expenses (2,332) (2,313) (2,231) (2,459) (2,382) (2,255) (2,197) (2,219)
Other net income 3 15 13 9 9 9 4 6
Profit before tax 1,158 1,657 1,872 1,971 822 1,165 807 822
Attributable profit 856 1,263 1,267 1,431 441 782 468 529
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 133.8 125.9 121.9 123.5 122.7 128.0 138.1 167.0
Trading portfolio assets 146.9 144.8 147.1 131.1 127.7 122.3 109.5 101.6
Derivative financial instrument assets 261.5 257.0 255.4 269.4 301.8 295.9 306.8 341.5
Financial assets at fair value through the income statement 188.2 200.5 190.4 197.5 170.7 178.2 154.3 188.4
Cash collateral and settlement balances 88.1 115.9 108.5 109.7 97.5 121.8 130.8 153.2
Other assets 225.6 231.8 223.5 221.7 221.4 261.7 236.3 201.5
Total assets 1,044.1 1,075.9 1,046.8 1,052.9 1,041.8 1,107.9 1,075.8 1,153.2
Deposits at amortised cost 258.8 253.3 245.4 251.2 240.5 262.4 241.2 263.3
Derivative financial instrument liabilities 256.4 252.3 246.9 260.2 300.4 293.3 307.6 338.8
Loan: deposit ratio 52% 50% 50% 49% 51% 49% 57% 63%
Risk weighted assets 230.9 222.7 223.2 230.0 222.3 224.7 231.2 237.9
Period end allocated tangible equity 33.2 31.8 31.8 32.7 30.2 30.5 31.6 33.1
Performance measures
Return on average allocated tangible equity 10.4% 15.9% 15.6% 17.7% 5.8% 10.2% 5.6% 6.8%
Average allocated tangible equity (£bn) 32.9 31.8 32.4 32.3 30.5 30.6 33.5 31.2
Cost: income ratio 66% 59% 58% 56% 68% 60% 55% 48%
Loan loss rate (bps) 7 - - (7) 90 112 284 377
Net interest margin 4.14% 4.02% 3.96% 3.92% 3.41% 3.79% 3.43% 3.93%
Analysis of Barclays International
Corporate and Investment Bank Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Income statement information £m £m £m £m £m £m £m £m
Net interest income 432 279 370 270 110 305 334 335
Net trading income 774 1,467 1,494 1,917 1,397 1,535 1,812 2,231
Net fee, commission and other income 1,426 1,383 1,115 1,407 1,131 1,065 1,170 1,051
Total income 2,632 3,129 2,979 3,594 2,638 2,905 3,316 3,617
Credit impairment releases/(charges) 73 128 229 43 (52) (187) (596) (724)
Net operating income 2,705 3,257 3,208 3,637 2,586 2,718 2,720 2,893
Operating costs (1,562) (1,747) (1,623) (1,886) (1,603) (1,716) (1,680) (1,690)
UK bank levy (128) - - - (226) - - -
Litigation and conduct (13) (2) (1) (1) 2 (3) (3) -
Total operating expenses (1,703) (1,749) (1,624) (1,887) (1,827) (1,719) (1,683) (1,690)
Other net income 1 - - 1 2 1 3 -
Profit before tax 1,003 1,508 1,584 1,751 761 1,000 1,040 1,203
Attributable profit 733 1,157 1,049 1,263 413 627 694 820
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 100.0 93.8 91.0 94.3 92.4 96.8 104.9 128.2
Trading portfolio assets 146.7 144.7 147.0 130.9 127.5 122.2 109.3 101.5
Derivative financial instruments assets 261.5 256.9 255.3 269.4 301.7 295.9 306.7 341.4
Financial assets at fair value through the income statement 188.1 200.4 190.3 197.3 170.4 177.9 153.7 187.8
Cash collateral and settlement balances 87.2 115.1 107.7 108.8 96.7 121.0 129.7 152.2
Other assets 195.8 200.4 192.5 190.8 194.9 228.9 205.5 171.4
Total assets 979.3 1,011.3 983.8 991.5 983.6 1,042.7 1,009.8 1,082.5
Deposits at amortised cost 189.4 185.8 178.2 185.2 175.2 195.6 173.9 198.4
Derivative financial instrument liabilities 256.4 252.2 246.8 260.2 300.3 293.2 307.6 338.7
Risk weighted assets 200.7 192.5 194.3 201.3 192.2 193.3 198.3 201.7
Performance measures
Return on average allocated tangible equity 10.2% 16.6% 14.8% 17.9% 6.3% 9.5% 9.6% 12.5%
Average allocated tangible equity (£bn) 28.7 27.8 28.4 28.2 26.3 26.4 29.0 26.2
Cost: income ratio 65% 56% 55% 53% 69% 59% 51% 47%
Analysis of total income £m £m £m £m £m £m £m £m
FICC 546 803 895 1,204 812 1,000 1,468 1,858
Equities 501 757 777 932 542 691 674 564
Global Markets 1,047 1,560 1,672 2,136 1,354 1,691 2,142 2,422
Advisory 287 253 218 163 232 90 84 155
Equity capital markets 158 186 226 243 104 122 185 62
Debt capital markets 511 532 429 453 418 398 463 418
Investment Banking fees 956 971 873 859 754 610 732 635
Corporate lending 176 168 38 206 186 232 61 111
Transaction banking 453 430 396 393 344 372 381 449
Corporate 629 598 434 599 530 604 442 560
Total income 2,632 3,129 2,979 3,594 2,638 2,905 3,316 3,617
Analysis of Barclays International
Consumer, Cards and Payments Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Income statement information £m £m £m £m £m £m £m £m
Net interest income 522 471 441 478 504 518 513 663
Net fee, commission, trading and other income 356 337 399 327 344 358 181 364
Total income 878 808 840 805 848 876 694 1,027
Credit impairment (charges)/releases (96) (110) 42 (21) (239) (183) (414) (885)
Net operating income 782 698 882 784 609 693 280 142
Operating costs (598) (563) (545) (552) (530) (511) (506) (529)
UK bank levy (6) - - - (14) - - -
Litigation and conduct (25) (1) (62) (20) (11) (25) (8) -
Total operating expenses (629) (564) (607) (572) (555) (536) (514) (529)
Other net income 2 15 13 8 7 8 1 6
Profit/(loss) before tax 155 149 288 220 61 165 (233) (381)
Attributable profit/(loss) 123 106 218 168 28 155 (226) (291)
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 33.8 32.1 30.9 29.2 30.3 31.2 33.2 38.8
Total assets 64.8 64.6 63.0 61.4 58.2 65.2 66.0 70.7
Deposits at amortised cost 69.4 67.5 67.2 66.0 65.3 66.8 67.3 64.9
Risk weighted assets 30.2 30.2 29.0 28.8 30.1 31.4 32.9 36.2
Performance measures
Return on average allocated tangible equity 11.7% 10.5% 21.8% 16.5% 2.7% 14.7% (20.2)% (23.5)%
Average allocated tangible equity (£bn) 4.2 4.0 4.0 4.1 4.2 4.2 4.5 5.0
Cost: income ratio 72% 70% 72% 71% 65% 61% 74% 52%
Loan loss rate (bps) 105 127 - 27 286 211 455 846
Analysis of total income £m £m £m £m £m £m £m £m
International Cards and Consumer Bank 552 490 517 533 576 600 567 690
Private Bank 200 188 214 179 174 171 160 202
Unified Payments 126 130 109 93 98 105 (33) 135
Total income 878 808 840 805 848 876 694 1,027
Head Office
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Income statement information £m £m £m £m £m £m £m £m
Net interest income (38) (112) (64) (178) (86) (48) (180) (79)
Net fee, commission and other income (11) 2 37 103 (85) (79) 41 14
Total income (49) (110) (27) (75) (171) (127) (139) (65)
Credit impairment (charges)/releases (5) (1) 6 - (31) (5) (30) (25)
Net operating expenses (54) (111) (21) (75) (202) (132) (169) (90)
Operating costs (152) (95) (341) (71) (213) (69) (106) (11)
UK bank levy - - - - (9) - - -
Litigation and conduct (3) (19) 16 (9) (42) (23) (3) (5)
Total operating expenses (155) (114) (325) (80) (264) (92) (109) (16)
Other net income/(expenses) 11 78 8 123 8 10 (43) 2
Loss before tax (198) (147) (338) (32) (458) (214) (321) (104)
Attributable (loss)/profit (159) (134) 120 (25) (381) (284) (255) (99)
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Total assets 19.0 18.5 18.3 17.7 18.6 19.3 21.7 23.6
Risk weighted assets 11.0 11.5 11.1 10.7 10.2 9.8 9.9 10.0
Period end allocated tangible equity 5.7 6.5 5.9 3.3 6.8 7.1 7.4 6.0
Performance measures
Average allocated tangible equity (£bn) 5.3 6.6 4.2 4.3 7.3 7.6 6.4 5.6
Performance Management
Margins and balances
Year ended 31.12.21 Year ended 31.12.20
Net interest income Average customer assets Net interest margin Net interest income Average customer assets Net interest margin
£m £m % £m £m %
Barclays UK 5,202 206,628 2.52 5,234 200,317 2.61
Barclays International(1) 3,149 78,530 4.01 3,382 92,909 3.64
Total Barclays UK and Barclays International 8,351 285,158 2.93 8,616 293,226 2.94
Other(2) (278) (494)
Total Barclays Group 8,073 8,122
1 Barclays International margins include IEL balances within the investment
banking business.
2 Other includes Head Office and non-lending related investment banking
businesses not included in Barclays International margins.
The Group NIM remained stable with a 1bps decrease to 2.93%. Barclays UK NIM
decreased 9bps to 2.52%, reflecting the impact of lower UK interest rates as
well as the mix impact of strong mortgage growth and lower unsecured lending
balances. Barclays International NIM increased 37bps to 4.01% reflecting the
mix impact of lower average lending balances in the CIB.
The Group's combined product and equity structural hedge notional as at
31 December 2021 was £228bn (31 December 2020: £188bn), with an average
duration of close to 3 years (2020: average duration 2.5 to 3 years). Group
net interest income includes gross structural hedge contributions of £1,415m
(2020: £1,650m) and net structural hedge contributions of £1,187m (2020:
£1,246m). Gross structural hedge contributions represent the absolute
interest income earned from the fixed receipts on the basket of swaps in the
structural hedge, while the net structural hedge contributions represent the
net interest earned on the difference between the structural hedge rate and
prevailing floating rates.
Quarterly analysis for Barclays UK and Barclays International Net interest income Average customer assets Net interest margin
Three months ended 31.12.21 £m £m %
Barclays UK 1,313 209,064 2.49
Barclays International(1) 848 81,244 4.14
Total Barclays UK and Barclays International 2,161 290,308 2.95
Three months ended 30.09.21
Barclays UK 1,303 207,692 2.49
Barclays International(1) 783 77,364 4.02
Total Barclays UK and Barclays International 2,086 285,056 2.90
Three months ended 30.06.21
Barclays UK 1,305 205,168 2.55
Barclays International(1) 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 International(1) 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 International(1,2) 696 81,312 3.41
Total Barclays UK and Barclays International 2,013 285,627 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 3.77% in
Q420. Total Barclays UK and Barclays International NIMs would have been 2.91%
in Q420.
Remuneration
Deferred bonuses are payable only once an employee meets certain conditions,
including a specified period of future service. This creates a timing
difference between the communication of the bonus pool and the charges that
are recognised in the income statement which are reconciled in the table below
to show the charge for performance costs. Refer to the Remuneration Report on
pages 162 to 199 of the Barclays PLC Annual Report 2021 for further detail on
remuneration. The table below includes the other elements of compensation and
staff costs.
Year ended 31.12.21 Year ended 31.12.20
£m £m % Change
Incentive awards granted:
Current year bonus 1,278 1,090 (17)
Deferred bonus 667 490 (36)
Total incentive awards granted 1,945 1,580 (23)
Reconciliation of incentive awards granted to income statement charge:
Less: deferred bonuses granted but not charged in current year (457) (335) (36)
Add: current year charges for deferred bonuses from previous years 280 293 4
Other differences between incentive awards granted and income statement charge (23) (34) 32
Income statement charge for performance costs 1,745 1,504 (16)
Other income statement charges:
Salaries 4,290 4,322 1
Social security costs 619 613 (1)
Post-retirement benefits(1) 539 519 (4)
Other compensation costs 431 479 10
Total compensation costs(2) 7,624 7,437 (3)
Other resourcing costs
Outsourcing 357 342 (4)
Redundancy and restructuring 296 102
Temporary staff costs 109 102 (7)
Other 125 114 (10)
Total other resourcing costs 887 660 (34)
Total staff costs 8,511 8,097 (5)
Group compensation costs as a % of total income 34.7 34.2
Group staff costs as a % of total income 38.8 37.2
One of the primary considerations for performance costs are Group and business
level returns, alongside other financial and non-financial measures including,
strategic delivery, risk and conduct, aligning colleague, shareholder and
wider stakeholder interests.
1 Post-retirement benefits charge includes £289m (2020: £279m) in respect of
defined contribution schemes and £250m (2020: £240m) in respect of defined
benefit schemes.
2 £484m (2020: £451m) of Group compensation was capitalised as internally
generated software and excluded from the Staff cost disclosed above.
Deferred bonuses have been awarded and are expected to be charged to the
income statement in the years outlined in the table that follows:
Year in which income statement charge is expected to be taken for deferred
bonuses awarded to date(1)
Actual Expected(1, 2)
Year ended Year ended Year ended 2023 and
31.12.20 31.12.21 31.12.22 beyond
£m £m £m £m
Deferred bonuses from 2018 and earlier bonus pools 158 49 9 1
Deferred bonuses from 2019 bonus pool 135 92 43 8
Deferred bonuses from 2020 bonus pool 155 139 130 67
Deferred bonuses from 2021 bonus pool - 210 201 187
Income statement charge for deferred bonuses 448 490 383 263
1 The actual amount charged depends upon whether conditions have been met and
may vary compared with the above expectation.
2 Does not include the impact of grants which will be made in 2022 and beyond.
Charging of deferred bonus profile(1)
Grant date Expected payment date(s)(2) and percentage of the deferred bonus paid Year Income statement charge % profile of 2021 onwards(3,4)
March 2022 2021 35%
2022 34%
March 2023 (33.3%) 2023 21%
March 2024 (33.3%) 2024 9%
March 2025 (33.3%) 2025 1%
1 Represents a typical vesting schedule for deferred awards. Certain awards may
be subject to a 4-, 5- or 7-year deferral in line with regulatory
requirements.
2 Share awards may be subject to an additional holding period.
3 The income statement charge is based on the period over which conditions are
met.
4 Income statement charge profile % disclosed as a percentage of the award
excluding lapse.
Risk Management
Risk management and principal risks
The roles and responsibilities of the business groups, Risk and Compliance, in
the management of risk in the Group are defined in the Enterprise Risk
Management Framework. The purpose of the framework is to identify the
principal risks of the Group, the process by which the Group sets its appetite
for these risks in its business activities, and the consequent limits which it
places on related risk taking.
The framework identifies nine principal risks: credit risk, market risk,
treasury and capital risk, climate risk, operational risk, model risk, conduct
risk, reputation risk and legal risk. Climate risk was added with effect from
1 January 2022. Further detail on these risks and how they are managed is
available in the Barclays PLC Annual Report 2021 or online at
home.barclays/annualreport (http://home.barclays/annualreport) .
The following section gives an overview of credit risk, market risk, and
treasury and capital risk for the period.
Credit Risk
Loans and advances at amortised cost by stage
The table below presents an analysis of loans and advances at amortised cost
by gross exposure, impairment allowance, impairment charge and coverage ratio
by stage allocation and business segment as at 31 December 2021. Also included
are off-balance sheet loan commitments and financial guarantee contracts by
gross exposure, impairment allowance and coverage ratio by stage allocation as
at 31 December 2021.
Impairment allowance under IFRS 9 considers both the drawn and the undrawn
counterparty exposure. For retail portfolios, the total impairment allowance
is allocated to the drawn exposure to the extent that the allowance does not
exceed the exposure, as Expected Credit Losses (ECL) is not reported
separately. Any excess is reported on the liability side of the balance sheet
as a provision. For wholesale portfolios, the impairment allowance on the
undrawn exposure is reported on the liability side of the balance sheet as a
provision.
Gross exposure Impairment allowance Net exposure
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 31.12.21 £m £m £m £m £m £m £m £m £m
Barclays UK 160,695 22,779 2,915 186,389 261 949 728 1,938 184,451
Barclays International 25,981 2,691 1,566 30,238 603 795 858 2,256 27,982
Head Office 3,735 429 705 4,869 2 36 347 385 4,484
Total Barclays Group retail 190,411 25,899 5,186 221,496 866 1,780 1,933 4,579 216,917
Barclays UK 35,571 1,917 969 38,457 153 43 111 307 38,150
Barclays International 92,341 13,275 1,059 106,675 187 192 458 837 105,838
Head Office 542 2 21 565 - - 19 19 546
Total Barclays Group wholesale(1) 128,454 15,194 2,049 145,697 340 235 588 1,163 144,534
Total loans and advances at amortised cost 318,865 41,093 7,235 367,193 1,206 2,015 2,521 5,742 361,451
Off-balance sheet loan commitments and financial guarantee contracts(2) 312,142 34,815 1,298 348,255 217 302 23 542 347,713
Total(3) 631,007 75,908 8,533 715,448 1,423 2,317 2,544 6,284 709,164
As at 31.12.21 Year ended 31.12.21
Coverage ratio Loan impairment charge/(release) and loan loss rate
Stage 1 Stage 2 Stage 3 Total Loan impairment charge/(release) Loan loss rate
% % % % £m bps
Barclays UK 0.2 4.2 25.0 1.0 (227) -
Barclays International 2.3 29.5 54.8 7.5 181 60
Head Office 0.1 8.4 49.2 7.9 - -
Total Barclays Group retail 0.5 6.9 37.3 2.1 (46) -
Barclays UK 0.4 2.2 11.5 0.8 122 32
Barclays International 0.2 1.4 43.2 0.8 (197) -
Head Office - - 90.5 3.4 - -
Total Barclays Group wholesale(1) 0.3 1.5 28.7 0.8 (75) -
Total loans and advances at amortised cost 0.4 4.9 34.8 1.6 (121) -
Off-balance sheet loan commitments and financial guarantee contracts(2) 0.1 0.9 1.8 0.2 (514)
Other financial assets subject to impairment(3) (18)
Total 0.2 3.1 29.8 0.9 (653)
1 Includes Wealth and Private Banking exposures measured on an individual basis,
and excludes Business Banking exposures, including BBLs of £9.4bn that are
managed on a collective basis and reported within BUK Retail. The net impact
is a difference in total exposure of £5,993m of balances reported as
wholesale loans on page 31 in the Loans and advances at amortised cost by
product disclosure.
2 Excludes loan commitments and financial guarantees of £18.8bn carried at fair
value.
3 Other financial assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets at fair
value through other comprehensive income and other assets. These have a total
gross exposure of £155.2bn and impairment allowance of £114m. This comprises
£6m ECL on £154.9bn Stage 1 assets, £1m on £157m Stage 2 fair value
through other comprehensive income assets, cash collateral and settlement
balances and £107m on £110m Stage 3 other assets.
Gross exposure Impairment allowance Net exposure
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 31.12.20 £m £m £m £m £m £m £m £m £m
Barclays UK 153,250 23,896 2,732 179,878 332 1,509 1,147 2,988 176,890
Barclays International(1) 21,048 5,500 1,992 28,540 396 1,329 1,205 2,930 25,610
Head Office 4,267 720 844 5,831 4 51 380 435 5,396
Total Barclays Group retail 178,565 30,116 5,568 214,249 732 2,889 2,732 6,353 207,896
Barclays UK 31,918 4,325 1,126 37,369 13 129 116 258 37,111
Barclays International(1) 79,911 16,565 2,270 98,746 288 546 859 1,693 97,053
Head Office 570 - 33 603 - - 31 31 572
Total Barclays Group wholesale(2) 112,399 20,890 3,429 136,718 301 675 1,006 1,982 134,736
Total loans and advances at amortised cost 290,964 51,006 8,997 350,967 1,033 3,564 3,738 8,335 342,632
Off-balance sheet loan commitments and financial guarantee contracts(3) 289,939 52,891 2,330 345,160 256 758 50 1,064 344,096
Total(4) 580,903 103,897 11,327 696,127 1,289 4,322 3,788 9,399 686,728
As at 31.12.20 Year ended 31.12.20
Coverage ratio Loan impairment charge and loan loss rate(5)
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
% % % % £m bps
Barclays UK 0.2 6.3 42.0 1.7 1,070 59
Barclays International(1) 1.9 24.2 60.5 10.3 1,680 589
Head Office 0.1 7.1 45.0 7.5 91 156
Total Barclays Group retail 0.4 9.6 49.1 3.0 2,841 133
Barclays UK - 3.0 10.3 0.7 154 41
Barclays International(1) 0.4 3.3 37.8 1.7 914 93
Head Office - - 93.9 5.1 - -
Total Barclays Group wholesale(2) 0.3 3.2 29.3 1.4 1,068 78
Total loans and advances at amortised cost 0.4 7.0 41.5 2.4 3,909 111
Off-balance sheet loan commitments and financial guarantee contracts(3) 0.1 1.4 2.1 0.3 776
Other financial assets subject to impairment(4) 153
Total(5) 0.2 4.2 33.4 1.4 4,838
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 31 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.
Loans and advances at amortised cost by product
The table below presents a breakdown of loans and advances at amortised cost
and the impairment allowance with stage allocation by asset classification.
Stage 2
As at 31.12.21 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 148,058 17,133 1,660 707 19,500 2,122 169,680
Credit cards, unsecured loans and other retail lending 37,840 5,102 300 248 5,650 2,332 45,822
Wholesale loans 132,967 15,246 306 391 15,943 2,781 151,691
Total 318,865 37,481 2,266 1,346 41,093 7,235 367,193
Impairment allowance
Home loans 19 46 6 7 59 397 475
Credit cards, unsecured loans and other retail lending 824 1,493 85 123 1,701 1,504 4,029
Wholesale loans 363 248 4 3 255 620 1,238
Total 1,206 1,787 95 133 2,015 2,521 5,742
Net exposure
Home loans 148,039 17,087 1,654 700 19,441 1,725 169,205
Credit cards, unsecured loans and other retail lending 37,016 3,609 215 125 3,949 828 41,793
Wholesale loans 132,604 14,998 302 388 15,688 2,161 150,453
Total 317,659 35,694 2,171 1,213 39,078 4,714 361,451
Coverage ratio % % % % % % %
Home loans - 0.3 0.4 1.0 0.3 18.7 0.3
Credit cards, unsecured loans and other retail lending 2.2 29.3 28.3 49.6 30.1 64.5 8.8
Wholesale loans 0.3 1.6 1.3 0.8 1.6 22.3 0.8
Total 0.4 4.8 4.2 9.9 4.9 34.8 1.6
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
The increase in coverage on Credit cards, unsecured loans and other retail
lending Stage 2 not past due is driven by a reduction in balances and the
economic uncertainty adjustments held for specific customers and clients who
may be more vulnerable to the full withdrawal of support and emerging economic
uncertainty.
Loans and advances at amortised cost by selected sectors
The table below presents a breakdown of drawn exposure and impairment
allowance for loans and advances at amortised cost, with stage allocation for
selected industry sectors within the wholesale loans portfolio. The industry
sectors have been selected based upon the level of management focus they have
received following the onset of the COVID-19 pandemic.
The gross loans and advances to selected sectors have decreased over the year
driven by repayments and lower drawdowns. The reduction in provisions is
informed by the improved macroeconomic outlook over the course of 2021,
partially offset by management judgments to reflect the risk of uncertainty
still prevailing within these sectors. The wholesale portfolio also benefits
from a hedge protection programme that enables effective risk management
against systemic losses. An additional £0.1bn (2020: £0.1bn) impairment
allowance has been applied to the undrawn exposures not included in the table
below.
Gross exposure Impairment allowance
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 31.12.21 £m £m £m £m £m £m £m £m
Air travel 232 201 94 527 9 5 37 51
Hospitality and leisure 4,898 986 377 6,261 26 19 45 90
Oil and gas 1,765 576 62 2,403 14 9 21 44
Retail 3,901 780 192 4,873 38 14 39 91
Shipping 382 201 25 608 9 8 - 17
Transportation 1,166 417 156 1,739 18 9 29 56
Total 12,344 3,161 906 16,411 114 64 171 349
Total of Wholesale exposures 9% 20% 33% 11% 31% 25% 28% 28%
Gross exposure Impairment allowance
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 31.12.20 £m £m £m £m £m £m £m £m
Air travel 367 525 56 948 9 27 23 59
Hospitality and leisure 4,440 2,387 313 7,140 53 115 61 229
Oil and gas 1,754 854 465 3,073 31 27 140 198
Retail 3,907 1,153 283 5,343 78 51 108 237
Shipping 308 389 12 709 2 30 1 33
Transportation 1,148 253 125 1,526 19 10 57 86
Total 11,924 5,561 1,254 18,739 192 260 390 842
Total of Wholesale exposures 10% 26% 35% 13% 60% 37% 37% 40%
The coverage ratio for selected sectors has decreased from 4.5% as at 31
December 2020 to 2.1% as at 31 December 2021 due to improved macroeconomic
outlook. Non Default coverage remains elevated as compared to pre COVID-19
level.
Exposure to UK Commercial Real Estate £8.5bn (2020: £9.9bn) remained stable
and is predominantly in Stage 1 82% (2020: 83%). The loan portfolio is well
collateralised, hence a low coverage of 1% (ECL: £0.1bn). Exposure included
in Stage 3 4% (2020: 4%) having a coverage ratio of 17% (2020: 20%).
Movement in gross exposures and impairment allowance including provisions for
loan commitments and financial guarantees
The following tables present a reconciliation of the opening to the closing
balance of the exposure and impairment allowance. An explanation of the
methodology used to determine credit impairment provisions is included in the
Barclays PLC Annual Report 2021 on page 348. Transfers between stages in the
table have been reflected as if they had taken place at the beginning of the
year. The movements are measured over a 12-month period.
Loans and advances at amortised cost
Stage 1 Stage 2 Stage 3 Total
Gross exposure ECL Gross exposure ECL Gross exposure ECL Gross exposure ECL
Home loans £m £m £m £m £m £m £m £m
As at 1 January 2021 138,639 33 19,312 84 2,234 421 160,185 538
Transfers from Stage 1 to Stage 2 (7,672) (2) 7,672 2 - - - -
Transfers from Stage 2 to Stage 1 5,336 32 (5,336) (32) - - - -
Transfers to Stage 3 (282) - (469) (9) 751 9 - -
Transfers from Stage 3 35 1 203 5 (238) (6) - -
Business activity in the year(1) 32,744 7 1,243 5 4 - 33,991 12
Refinements to models used for calculation(2) - - - (4) - 38 - 34
Net drawdowns, repayments, net re-measurement and movement due to exposure and (8,131) (50) (1,090) 12 (216) (26) (9,437) (64)
risk parameter changes
Final repayments (12,039) (2) (2,009) (4) (392) (18) (14,440) (24)
Disposals(3) (572) - (26) - - - (598) -
Write-offs(4) - - - - (21) (21) (21) (21)
As at 31 December 2021(5) 148,058 19 19,500 59 2,122 397 169,680 475
Credit cards, unsecured loans and other retail lending
As at 1 January 2021 33,021 680 10,320 2,769 3,172 2,251 46,513 5,700
Transfers from Stage 1 to Stage 2 (1,894) (78) 1,894 78 - - - -
Transfers from Stage 2 to Stage 1 4,717 1,174 (4,717) (1,174) - - - -
Transfers to Stage 3 (529) (22) (790) (370) 1,319 392 - -
Transfers from Stage 3 55 26 32 19 (87) (45) - -
Business activity in the year(1) 7,842 119 257 62 42 19 8,141 200
Refinements to models used for calculation(2) - (5) - (33) - 14 - (24)
Net drawdowns, repayments, net re-measurement and movement due to exposure and (2,793) (1,030) (848) 389 (165) 620 (3,806) (21)
risk parameter changes(6)
Final repayments (2,579) (40) (498) (39) (212) (92) (3,289) (171)
Disposals(3) - - - - (287) (205) (287) (205)
Write-offs(4) - - - - (1,450) (1,450) (1,450) (1,450)
As at 31 December 2021(5) 37,840 824 5,650 1,701 2,332 1,504 45,822 4,029
1 Business activity in the year does not include additional drawdowns on the
existing facility which are reported under "Net drawdowns, repayments, net
re-measurement and movements due to exposure and risk parameter changes".
2 Refinements to models used for calculation include a £34m movement in Home
loans, £24m in Credit cards, unsecured loans and other retail lending
portfolio and £19m 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.
3 The £598m disposals reported within Home loans relate to transfer of UK
Mortgage facilities to a non consolidated special purpose vehicle for the
purpose of securitisation. £287m 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 £1.0bn of Barclays Asset Finance and a £0.7bn of
debt sales.
4 In 2021, gross write-offs amounted to £1,836m (2020: £1,964m) and post
write-off recoveries amounted to £66m (2020: £35m). Net write-offs represent
gross write-offs less post write-off recoveries and amounted to £1,770m
(2020: £1,929m).
5 Other financial assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets at fair
value through other comprehensive income and other assets. These have a total
gross exposure of £155.2bn (December 2020: £180.3bn) and impairment
allowance of £114m (December 2020: £165m). This comprises £6m ECL (December
2020: £11m) on £154.9bn stage 1 assets (December 2020: £175.7bn), £1m
(December 2020: £9m) on £157m stage 2 fair value through other comprehensive
income assets, other assets and cash collateral and settlement balances
(December 2020: £4.4bn) and £107m (December 2020: £145m) on £110m stage 3
other assets (December 2020: £154m).
6 Transfers and risk parameter changes include a £0.3bn (2020: £0.6bn) net
release in ECL arising from a reclassification of £1.9bn (2020: £2.0bn)
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.
Loans and advances at amortised cost
Stage 1 Stage 2 Stage 3 Total
Gross exposure ECL Gross exposure ECL Gross exposure ECL Gross exposure ECL
Wholesale loans £m £m £m £m £m £m £m £m
As at 1 January 2021 119,304 320 21,374 711 3,591 1,066 144,269 2,097
Transfers from Stage 1 to Stage 2 (6,115) (19) 6,115 19 - - - -
Transfers from Stage 2 to Stage 1 9,137 257 (9,137) (257) - - - -
Transfers to Stage 3 (804) (4) (377) (21) 1,181 25 - -
Transfers from Stage 3 580 23 410 22 (990) (45) - -
Business activity in the year(1) 34,804 95 1,774 18 283 50 36,861 163
Refinements to models used for calculation(2) - 8 - 11 - - - 19
Net drawdowns, repayments, net re-measurement and movement due to exposure and (417) (268) 721 (68) (211) 67 93 (269)
risk parameter changes
Final repayments (22,219) (34) (4,734) (174) (545) (131) (27,498) (339)
Disposals(3) (1,303) (15) (203) (6) (163) (47) (1,669) (68)
Write-offs(4) - - - - (365) (365) (365) (365)
As at 31 December 2021(5) 132,967 363 15,943 255 2,781 620 151,691 1,238
Reconciliation of ECL movement to credit impairment (release)/charge for the £m
period
Home loans (42)
Credit cards, unsecured loans and other retail lending (16)
Wholesale loans (426)
ECL movement excluding assets derecognised due to disposals and write-offs (484)
Recoveries and reimbursements(6) 240
Exchange and other adjustments(7) 123
Credit impairment release on loan commitments and other financial guarantees (514)
Credit impairment release on other financial assets(5) (18)
Credit impairment release for the year (653)
1 Business activity in the year does not include additional drawdowns on the
existing facility which are reported under "Net drawdowns, repayments, net
re-measurement and movements due to exposure and risk parameter changes".
2 Refinements to models used for calculation include a £34m movement in Home
Loans, £24m in Credit cards, unsecured loans and other retail lending
portfolio and £19m 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.
3 The £598m disposals reported within Home loans relate to transfer of UK
Mortgage facilities to a non consolidated special purpose vehicle for the
purpose of securitisation. The £287m 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 £1.0bn sale of Barclays Asset Finance and a £0.7bn of debt
sales.
4 In 2021, gross write-offs amounted to £1,836m (2020: £1,964m) and post
write-off recoveries amounted to £66m (2020: £35m). Net write-offs represent
gross write-offs less post write-off recoveries and amounted to £1,770m
(2020: £1,929m).
5 Other financial assets subject to impairment not included in the table above
include cash collateral and settlement balances, financial assets at fair
value through other comprehensive income and other assets. These have a total
gross exposure of £155.2bn (December 2020: £180.3bn) and impairment
allowance of £114m (December 2020: £165m). This comprises £6m ECL (December
2020: £11m) on £154.9bn stage 1 assets (December 2020: £175.7bn), £1m
(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 £107m (December 2020: £145m) on £110m stage 3
other assets (December 2020: £154m).
6 Recoveries and reimbursements includes a net reduction in amounts recoverable
from financial guarantee contracts held with third parties of £306m (2020
gain: £364m) and post write off recoveries of £66m (2020: £35m).
7 Includes foreign exchange and interest and fees in suspense.
Loan commitments and financial guarantees
Stage 1 Stage 2 Stage 3 Total
Gross exposure ECL Gross exposure ECL Gross exposure ECL Gross exposure ECL
Home loans £m £m £m £m £m £m £m £m
As at 1 January 2021 11,861 - 516 - 5 - 12,382 -
Net transfers between stages (131) - 124 - 7 - - -
Business activity in the year 7,034 - - - - - 7,034 -
Net drawdowns, repayments, net re-measurement and movement due to exposure and (7,556) - (64) - (4) - (7,624) -
risk parameter changes
Limit management and final repayments (375) - (44) - (5) - (424) -
As at 31 December 2021 10,833 - 532 - 3 - 11,368 -
Credit cards, unsecured loans and other retail lending
As at 1 January 2021 114,371 55 12,117 305 229 23 126,717 383
Net transfers between stages 5,769 206 (6,379) (213) 610 7 - -
Business activity in the year 11,206 - 430 - 2 - 11,638 -
Net drawdowns, repayments, net re-measurement and movement due to exposure and (742) (207) 217 (24) (526) (10) (1,051) (241)
risk parameter changes
Limit management and final repayments (7,785) (4) (667) (7) (97) - (8,549) (11)
As at 31 December 2021 122,819 50 5,718 61 218 20 128,755 131
Wholesale loans
As at 1 January 2021 163,707 201 40,258 453 2,096 27 206,061 681
Net transfers between stages 8,227 221 (7,174) (215) (1,053) (6) - -
Business activity in the year 44,085 14 4,658 102 10 - 48,753 116
Net drawdowns, repayments, net re-measurement and movement due to exposure and 8,819 (229) (151) 7 515 (11) 9,183 (233)
risk parameter changes
Limit management and final repayments (46,348) (40) (9,026) (106) (491) (7) (55,865) (153)
As at 31 December 2021 178,490 167 28,565 241 1,077 3 208,132 411
Management adjustments to models for impairment
Management adjustments to impairment models are applied in order to factor in
certain conditions or changes in policy that are not fully incorporated into
the impairment models, or to reflect additional facts and circumstances at the
period end. Management adjustments are reviewed and incorporated into future
model development where applicable.
Total management adjustments to impairment allowance are presented by product
below:
Overview of management adjustments to models for impairment allowance(1)
As at 31.12.21 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 103 21.7 131 24.3
Credit cards, unsecured loans and other retail lending 1,362 32.7 1,234 20.3
Wholesale loans 21 1.3 23 0.8
Total 1,486 23.6 1,388 14.8
1 Positive values reflect an increase in impairment allowance and negative
values reflect a reduction in the impairment allowances.
Management adjustments to model are presented by products below(1):
Impairment allowance pre management adjustments(2) Economic uncertainty adjustments (a) Other adjustments (b) Total management adjustments (a+b) Total impairment allowance(3)
As at 31 December 2021 £m £m £m £m £m
Home loans 372 72 31 103 475
Credit cards, unsecured loans and other retail lending 2,798 1,217 145 1,362 4,160
Wholesale loans(4) 1,628 403 (382) 21 1,649
Total 4,798 1,692 (206) 1,486 6,284
As at 31 December 2020
Home loans 407 21 110 131 538
Credit cards, unsecured loans and other retail lending 4,849 1,625 (391) 1,234 6,083
Wholesale loans(4) 2,755 421 (398) 23 2,778
Total 8,011 2,067 (679) 1,388 9,399
1 Positive values reflect an increase in impairment allowance and negative
values reflect a reduction in the impairment allowance.
2 Includes £4.1bn (2020: £6.8bn) of modelled ECL, £0.5bn (2020: £0.9bn) of
individually assessed impairments and £0.2bn (2020: £0.3bn) ECL from
non-modelled exposures.
3 Total impairment allowance consists of ECL stock on drawn and undrawn
exposures.
4 Other adjustments include £(0.4)bn related to Bounce back loan government
guarantee in 2021. In the prior year, the adjustment was £(0.1)bn and was
presented under economic uncertainty.
Economic uncertainty adjustments
Throughout the COVID-19 pandemic in 2020 and 2021, macroeconomic forecasts
anticipated lasting impacts to unemployment levels and customer and client
stress. More recent macroeconomic forecasts indicated that the outlook has
improved, with measures of government and bank support having tapered down and
no material deterioration in customer delinquencies observed to date. However,
the degree of economic uncertainty remains relatively high: credit
deterioration may still occur when support measures are fully withdrawn across
geographies; emerging supply chain disruption and inflationary pressures may
challenge economic stability; and economic consensus may not capture the range
of economic uncertainty associated with fast moving new COVID-19 variants such
as Omicron.
Given this backdrop, management has recognised economic uncertainty
adjustments to modelled outputs to address these sources of uncertainties and
ensure that the potential impacts of stress are provided for. This uncertainty
continues to be captured in two distinct ways. Firstly, customer uncertainty:
the identification of customers and clients who may be more vulnerable to the
withdrawal of support schemes and emerging economic instability; and secondly,
model uncertainty: to capture the impact from model limitations and
sensitivities to specific macroeconomic parameters which are applied at a
portfolio level.
The economic uncertainty adjustments of £1.7bn (2020 £2.1bn) includes
customer and client uncertainty provisions of £1.5bn (2020 £1.7bn) and model
uncertainty provisions of £0.2bn (2020 £0.4bn).
Customer uncertainty provisions comprises:
a. An adjustment of £0.4bn (2020: £0.7bn) to adjust the probability of
default (PDs) to pre-COVID-19 levels to offset the temporary improvement to
PDs in light of reduced customer spend behaviour and support measures. The
decrease of £0.3bn is primarily driven by some normalisation of customer
spending behaviour during the year resulting in a partial release of the PMA.
b. A vulnerable customer adjustment of £1.1bn (2020: £1.0bn) has been applied
to customers and clients considered potentially vulnerable to the withdrawal
of support schemes and emerging economic instability against which lifetime
coverage is applied. This is split between credit cards, unsecured loans and
other retail lending of £0.8bn (2020: £0.8bn) and wholesale loans of £0.3bn
(2020: £0.2bn). The latter includes an adjustment of £0.1bn (2020: £nil) to
reflect possible cross default risk on Barclays lending in respect of clients
who have taken bounce back loans.
Model uncertainty provisions reduced by £0.2bn reflecting an update in
adjustment in response to the modelled provisions following the update in the
Q421 scenarios.
Other adjustments
Other adjustments are operational in nature and are expected to remain in
place until they can be corrected in the underlying models. These adjustments
result from data limitations and model performance related issues identified
through established governance processes. The quantum of adjustments reduced
in response to the Q421 scenarios as well as model enhancements made during
the year. Material adjustments consists of the following:
Home loans: The low average LTV nature of the UK Home Loans portfolio means
that modelled ECL estimates are low and do not reflect the tail risk with
severe economic stress. An adjustment is made to maintain an appropriate level
of ECL informed by model monitoring.
Credit cards, unsecured loans and other retail lending: Includes an adjustment
for model inaccuracies informed by model monitoring and a reclassification of
loans and advances from Stage 2 to Stage 1 in credit cards. The
reclassification followed a review of back-testing results which indicated
that accuracy of origination probability of default characteristics
require management adjustments to correct and was first established in Q220.
This adjustment has reduced driven by the macroeconomic scenarios in Q421 and
the reduction in exposure on this portfolio.
Wholesale loans: Materially comprises of an adjustment applied on bounce back
loans of £(0.4)bn to reverse out the modelled charge which does not consider
the government guarantee when calculating the ECL.
Management adjustments of £(0.4)bn within wholesale loans in 2020 primarily
comprised an adjustment to offset modelled ECL output in the Investment Bank
to limit excessive ECL sensitivity to the macroeconomic variable for Federal
Tax Receipts.
Measurement uncertainty
Management has applied economic uncertainty and other adjustments to modelled
ECL outputs. Economic uncertainty adjustments reflect the potential
vulnerability of specific customers and clients who may be more vulnerable to
the full withdrawal of support and emerging economic instability and the
degree to which economic consensus may not have captured the range of economic
uncertainty associated with new variants of COVID-19. As a result, ECL is
higher than would be the case if it were based on forecast economic scenarios
alone.
The measurement of modelled ECL involves complexity and judgement, including
estimation of probabilities of default (PD), loss given default (LGD), a range
of unbiased future economic scenarios, estimation of expected lives,
estimation of exposures at default (EAD) and assessing significant increases
in credit risk. The Group uses a five-scenario model to calculate ECL. An
external consensus forecast is assembled from key sources, including HM
Treasury (short and medium term forecasts), Bloomberg (based on median of
economic forecasts) and the Urban Land Institute (for US House Prices), which
forms the Baseline scenario. In addition, two adverse scenarios (Downside 1
and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are
derived, with associated probability weightings. The adverse scenarios are
calibrated to a broadly similar severity to Barclays' internal stress tests
and stress scenarios provided by regulators whilst also considering IFRS 9
specific sensitivities and non-linearity. The favourable scenarios are
designed to reflect plausible upside risks to the Baseline scenario which are
broadly consistent with the economic narrative approved by the Senior Scenario
Review Committee. All scenarios are regenerated at a minimum semi-annually.
The scenarios include eight key economic variables, (GDP, unemployment, House
Price Index (HPI) and base rates in both the UK and US markets), and expanded
variables using statistical models based on historical correlations. The
upside and downside shocks are designed to evolve over a five-year stress
horizon, with all five scenarios converging to a steady state after
approximately eight years.
Scenarios used to calculate the Group's ECL charge were reviewed and updated
regularly throughout 2021, following the continuation of the COVID-19 pandemic
throughout the year, including the emergence of the Omicron variant and the
global vaccination rollout. The current Baseline scenario reflects the latest
consensus economic forecasts; the steady recovery in GDP in both the UK and US
continues with UK GDP returning to pre-COVID-19 pandemic levels by Q222. UK
unemployment peaks at 5.0% in Q122 and US unemployment continues to decline.
In the Downside 2 scenario, inflation continues to accelerate and the UK bank
rate is increased to 4.0% and the US federal funds rate is increased to 3.5%,
by the end of 2022, leading to a further downturn in GDP until Q322.
Unemployment peaks in Q322 at 9.2% in the UK and 9.5% in the US. In the Upside
2 scenario, inflation expectations and global energy prices stabilise and GDP
growth rises as COVID-19 risks continue to decline helping to release more of
the pent-up demand and accumulated household savings into the economy.
Unemployment rates decline gradually.
The methodology for estimating probability weights used in calculating ECL
involves simulating a range of future paths for UK and US GDP using historical
data. The five scenarios are mapped against the distribution of these future
paths, with the median centred around the Baseline such that scenarios further
from the Baseline attract a lower weighting. A single set of five scenarios is
used across all portfolios and all five weights are normalised to equate to
100%. The same scenarios and weights that are used in the estimation of
expected credit losses are also used for Barclays' internal planning purposes.
The impacts across the portfolios are different because of the sensitivities
of each of the portfolios to specific macroeconomic variables, for example,
mortgages are highly sensitive to house prices, credit cards and unsecured
consumer loans are highly sensitive to unemployment.
The changes to the scenario weights in 2021 primarily reflect changes made to
the severity of the scenarios. The Downside 2 scenario has been aligned with
the internal stress test, which is informed by a weaker GDP outlook. The
effect of this is to move the Downside 2 scenario further away from the
Baseline, resulting in a lower weighting. For further details see page 39.
Although the macroeconomic outlook has improved, the level of uncertainty
remains relatively high. A key judgement is the extent to which economic
uncertainty experienced throughout the COVID-19 pandemic now reflects
additional challenges, namely inflationary pressures and global supply chain
disruptions. Inflationary headwinds have yet to materially impact customer
affordability and corporate profitability data. A balanced approach has
therefore been adopted in the sizing of expert judgements as we move away from
a period characterised by significant customer support.
The economic uncertainty adjustments of £1.7bn (FY20: £2.1bn) have been
applied as overlays to the modelled ECL output. These adjustments consist of a
customer and client uncertainty provision of £1.5bn (FY20 £1.7bn) and a
model uncertainty provision of £0.2bn (FY20 £0.4bn). For further details see
pages 36 to 37.
The tables below show the key consensus macroeconomic variables used in the
Baseline scenario (5 year annual paths), the probability weights applied to
each scenario and the macroeconomic variables by scenario using 'specific
bases' i.e. the most extreme position of each variable in the context of the
scenario, for example, the highest unemployment for downside scenarios and the
lowest unemployment for upside scenarios. 5-year average tables provide
additional transparency. Annual paths show quarterly averages for the year
(unemployment and base rate) or change in the year (GDP and HPI).
Baseline average macroeconomic variables used in the calculation of ECL
2021 2022 2023 2024 2025
As at 31 December 2021 % % % % %
UK GDP(1) 6.2 4.9 2.3 1.9 1.7
UK unemployment(2) 4.8 4.7 4.5 4.3 4.2
UK HPI(3) 4.7 1.0 1.9 1.9 2.3
UK bank rate 0.1 0.8 1.0 1.0 0.8
US GDP(1) 5.5 3.9 2.6 2.4 2.4
US unemployment(4) 5.5 4.2 3.6 3.6 3.6
US HPI(5) 11.8 4.5 5.2 4.9 5.0
US federal funds rate(3) 0.2 0.3 0.9 1.2 1.3
2020 2021 2022 2023 2024
As at 31 December 2020 % % % % %
UK GDP(1) (10.1) 6.3 3.3 2.6 2.0
UK unemployment(2) 4.5 6.7 6.4 5.8 5.1
UK HPI(3) 6.1 2.4 2.3 5.0 2.4
UK bank rate 0.2 - (0.1) - 0.1
US GDP(1) (4.4) 3.9 3.1 2.9 2.9
US unemployment(4) 8.4 6.9 5.7 5.6 5.6
US HPI(5) 2.3 2.8 4.7 4.7 4.7
US federal funds rate(3) 0.5 0.3 0.3 0.3 0.4
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 31 December 2021
Scenario probability weighting 20.9 27.2 30.1 14.8 7.0
As at 31 December 2020
Scenario probability weighting 20.2 24.2 24.7 15.5 15.4
Specific bases show the most extreme position of each variable in the context
of the scenario, for example, the highest unemployment for downside scenarios,
average unemployment for baseline scenarios and lowest unemployment for upside
scenarios. GDP and HPI downside and upside scenario data represents the lowest
and highest points relative to the start point in the 20 quarter period.
Macroeconomic variables (specific bases)(1)
Upside 2 Upside 1 Baseline Downside 1 Downside 2
As at 31 December 2021 % % % % %
UK GDP(2) 21.4 18.3 3.4 (1.6) (1.6)
UK unemployment(3) 4.0 4.1 4.5 7.0 9.2
UK HPI(4) 35.7 23.8 2.4 (12.7) (29.9)
UK bank rate(3) 0.1 0.1 0.7 2.8 4.0
US GDP(2) 22.8 19.6 3.4 1.5 (1.3)
US unemployment(3) 3.3 3.5 4.1 6.8 9.5
US HPI(4) 53.3 45.2 6.2 2.2 (5.0)
US federal funds rate(3) 0.1 0.1 0.8 2.3 3.5
As at 31 December 2020
UK GDP(2) 14.2 8.8 0.7 (22.1) (22.1)
UK unemployment(3) 4.0 4.0 5.7 8.4 10.1
UK HPI(4) 48.2 30.8 3.6 (4.5) (18.3)
UK bank rate(3) 0.1 0.1 - 0.6 0.6
US GDP(2) 15.7 12.8 1.6 (10.6) (10.6)
US unemployment(3) 3.8 3.8 6.4 13.0 13.7
US HPI(4) 42.2 30.9 3.8 (3.7) (15.9)
US federal funds rate(3) 0.1 0.1 0.3 1.3 1.3
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.
Average basis represents the average quarterly value of variables in the 20
quarter period with GDP and HPI based on yearly average and quarterly CAGRs
respectively.
Macroeconomic variables (5 year averages)(1)
Upside 2 Upside 1 Baseline Downside 1 Downside 2
As at 31 December 2021 % % % % %
UK GDP(2) 4.4 3.9 3.4 2.7 1.8
UK unemployment(3) 4.3 4.4 4.5 5.8 7.0
UK HPI(4) 6.3 4.4 2.4 0.3 (2.0)
UK bank rate(3) 0.3 0.5 0.7 1.7 2.3
US GDP(2) 4.4 3.9 3.4 2.4 1.3
US unemployment(3) 3.9 4.0 4.1 5.7 7.1
US HPI(4) 8.9 7.7 6.2 3.6 1.4
US federal funds rate(3) 0.5 0.6 0.8 1.5 2.1
As at 31 December 2020
UK GDP(2) 2.5 1.6 0.7 0.1 (0.9)
UK unemployment(3) 5.0 5.3 5.7 6.5 7.2
UK HPI(4) 8.2 5.5 3.6 (0.2) (3.6)
UK bank rate(3) 0.3 0.2 - - (0.1)
US GDP(2) 2.9 2.4 1.6 0.8 0.1
US unemployment(3) 5.3 5.7 6.4 8.3 10.4
US HPI(4) 7.3 5.5 3.8 0.8 (3.0)
US federal funds rate(3) 0.5 0.5 0.3 0.3 0.3
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).
Analysis of specific portfolios and asset types
Secured home loans
The UK home loan portfolio primarily comprises first lien mortgages and
accounts for 93% (December 2020: 93%) of the Group's total home loans balance.
Home loans principal portfolios Barclays UK
As at 31.12.21 As at 31.12.20
Gross loans and advances (£m) 158,192 148,343
90 day arrears rate, excluding recovery book (%) 0.1 0.2
Annualised gross charge-off rates - 180 days past due (%) 0.5 0.6
Recovery book proportion of outstanding balances (%) 0.6 0.6
Recovery book impairment coverage ratio (%) 4.2 3.2
Average marked to market LTV
Balance weighted % 50.7 50.7
Valuation weighted % 37.5 37.6
New lending Year ended 31.12.21 Year ended 31.12.20
New home loan bookings (£m) 33,945 22,776
New home loan proportion > 90% LTV (%) 1.9 2.6
Average LTV on new home loans: balance weighted (%) 69.5 67.5
Average LTV on new home loans: valuation weighted (%) 61.9 59.6
Home loans principal portfolios - distribution of balances by LTV(1)
Distribution of balances Distribution of impairment allowance Coverage ratio
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Barclays UK % % % % % % % % % % % %
As at 31.12.21
<=75% 77.2 11.3 0.7 89.2 8.3 17.7 31.9 57.9 - 0.1 2.4 -
>75% and <=90% 9.3 0.6 - 9.9 4.8 10.7 11.7 27.2 - 1.0 22.6 0.1
>90% and <=100% 0.9 - - 0.9 0.9 1.0 2.9 4.8 0.1 1.9 87.5 0.3
>100% - - - - 0.2 1.0 8.9 10.1 0.4 6.4 100.0 14.1
As at 31.12.20
<=75% 75.7 11.6 0.6 87.9 17.9 15.0 19.0 51.9 - 0.1 1.8 -
>75% and <=90% 10.8 0.8 - 11.6 9.7 14.8 7.6 32.1 0.1 1.2 16.0 0.2
>90% and <=100% 0.4 - - 0.4 0.8 1.5 2.2 4.5 0.1 2.6 35.7 0.7
>100% 0.1 - - 0.1 0.7 3.4 7.4 11.5 0.7 10.3 69.1 8.0
1 Portfolio marked to market based on the most updated valuation including
recovery book balances. Updated valuations reflect the application of the
latest HPI available as at 31 December 2021.
The increased level of new business in 2021 was driven by elevated demand in
the house purchase market supported by government intervention including stamp
duty relief. Barclays maintained its share of the market, supported by
re-introduction of high LTV (> 85% LTV) products and reversal of some
policy tightening introduced in 2020.
Head Office: Italian home loans and advances at amortised cost reduced to
£4.7bn (2020: £5.7bn). The portfolio is secured on residential property with
an average balance weighted mark to market LTV of 60.4% (2020: 62.1%). 90-day
arrears were at 1.3% (2020: 1.7%) and gross charge-off rates decreased to 0.3%
(2020: 1.0%) due to continuous reduction of delinquent balances.
Credit cards, unsecured loans and other retail lending
The principal portfolios listed below accounted for 82% (December 2020: 84%)
of the Group's total credit cards, unsecured loans and other retail lending.
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 31.12.21 £m % % % %
Barclays UK
UK cards 9,933 1.0 0.2 4.1 4.0
UK personal loans 4,011 1.5 0.7 3.5 3.2
Barclays Partner Finance 2,471 0.4 0.2 1.4 1.4
Barclays International
US cards 17,779 1.6 0.8 4.3 4.2
Germany consumer lending 3,559 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
UK cards: 30 and 90 day arrears rates reduced significantly to 1.0% (2020:
1.7%) and 0.2% (2020: 0.8%) respectively, with balances reducing by £2.0bn.
Whilst performance had been on an improving trend as a result of reduced spend
and increased repayments due to government support as a response to COVID-19
and lower flows into delinquency, the main driver was a change in the point of
charge off from 180 days to 120 days past due. Higher write offs primarily
reflected a higher level of debt sales.
UK personal loans: 30 and 90 day arrears rates reduced significantly to 1.5%
(2020: 2.3%) and 0.7% (2020: 1.2%) respectively, with balances reducing by
£0.6bn. Similar to UK cards, the main driver was a change in the point of
charge off from 180 days to 120 days past due. Higher write offs primarily
reflected a higher level of debt sales.
Barclays Partner Finance: 30 and 90 day arrears rates both reduced by 0.1% as
a result of slightly lower entry rates and flows through the delinquency
cycles.
US cards: 30 and 90 day arrears rates improved and remain below pre-pandemic
levels due to continued benefit from government support schemes throughout the
pandemic and industry payment deferrals that were made available to consumers.
Germany consumer lending: 30 and 90 day arrears rates reduced in 2021 due to
improved payment behaviour of formerly high-risk customers as unemployment
eased, and the benefit from government support in the local market continued.
Market Risk
Analysis of management value at risk (VaR)
The table below shows the total management VaR on a diversified basis by asset
class. Total management VaR includes all trading positions in CIB and Treasury
and it is calculated with a one-day holding period. VaR limits are applied to
total management VaR and by asset class. Additionally, the market risk
management function applies VaR sub-limits to material businesses and trading
desks.
Management VaR (95%) by asset class
31.12.21 31.12.20
Average High Low Average High Low
£m £m £m £m £m £m
Credit risk 14 30 7 20 38 10
Interest rate risk 7 15 4 10 17 6
Equity risk 9 29 4 13 35 6
Basis risk 6 10 3 10 16 7
Spread risk 4 6 3 5 9 3
Foreign exchange risk 4 16 1 5 7 2
Commodity risk - 1 - 1 1 -
Inflation risk 3 5 2 2 3 1
Diversification effect(1) (28) n/a n/a (34) n/a n/a
Total management VaR 19 36 6 32 57 18
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.
Average management VaR decreased by 41% to £19m (2020: £32m), driven by
reduced risk taking, lower market volatility and the impact of a methodology
update in March 2021 which changed the historical lookback period of the VaR
model from two years to one year. The methodology change has increased the
responsiveness of the model to changes over time in volatility levels in the
lookback period.
Treasury and Capital Risk
The Group has a liquidity risk control framework that meets the Prudential
Regulation Authority (PRA) standards and is designed to maintain liquidity
resources that are sufficient in amount and quality, and a funding profile
that is appropriate to meet the Group's Liquidity Risk Appetite (LRA). The
liquidity framework is delivered via a combination of policy formation, review
and governance, analysis, stress testing, limit setting and monitoring.
Liquidity risk stress testing
The liquidity risk stress assessment measures the potential contractual and
contingent stress outflows under a range of scenarios, which are then used to
determine the size of the liquidity pool that is immediately available to meet
anticipated outflows if a stress occurs. The short-term scenarios include a 30
day Barclays-specific stress event, a 90 day market-wide stress event and a 30
day combined scenario consisting of both a Barclays specific and market-wide
stress event. The Group also runs a long-term liquidity stress test, which
measures the anticipated outflows over a 12 month market-wide scenario.
The liquidity coverage ratio (LCR) requirement takes into account the relative
stability of different sources of funding and potential incremental funding
requirements in a stress. The LCR is designed to promote short-term resilience
of a bank's liquidity risk profile by holding sufficient high quality liquid
assets to survive an acute stress scenario lasting for 30 days.
As at 31 December 2021, the Group held eligible liquid assets in excess of
100% of net stress outflows to its internal and external regulatory
requirements.
Liquidity coverage ratio
As at 31.12.21 As at 31.12.20
£bn £bn
Eligible liquidity buffer 285 258
Net stress outflows (169) (159)
Surplus 116 99
Liquidity coverage ratio 168% 162%
The Group plans to maintain its surplus to the internal and regulatory stress
requirements at an efficient level, while considering risks to market funding
conditions and its liquidity position. The continuous reassessment of these
risks may lead to execution of appropriate actions to resize the liquidity
pool.
Composition of the Group liquidity pool
As at 31.12.21 As at 31.12.20
Liquidity pool Liquidity pool of which CRD IV LCR eligible(3) Liquidity pool
Cash Level 1 Level 2A
£bn £bn £bn £bn £bn
Cash and deposits with central banks(1) 245 243 - - 197
Government bonds(2)
AAA to AA- 26 - 23 - 31
A+ to A- 2 - - 2 13
BBB+ to BBB- - - - - 1
Total government bonds 28 - 23 2 45
Other
Government Guaranteed Issuers, PSEs and GSEs 6 - 5 1 10
International Organisations and MDBs 5 - 5 - 6
Covered bonds 6 - 4 2 8
Other 1 - - - -
Total other 18 - 14 3 24
Total as at 31 December 2021 291 243 37 5 266
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 99% (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 82% (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.
The Group liquidity pool increased to £291bn as at 31 December 2021 (December
2020: £266bn) driven by continued deposit growth, further borrowing from the
Bank of England's Term Funding Scheme with additional incentives for SMEs and
an increase in wholesale funding, which were partly offset by an increase in
business funding consumption. During 2021, the month-end liquidity pool ranged
from £290bn to £337bn (2020: £218bn to £332bn), and the month-end average
balance was £303bn (2020: £287bn). The liquidity pool is held unencumbered
and is not used to support payment or clearing requirements. Such requirements
are treated as part of our regular business funding. The liquidity pool is
intended to offset stress outflows, and comprises the above cash and
unencumbered assets.
As at 31 December 2021, 58% (December 2020: 64%) of the liquidity pool was
located in Barclays Bank PLC, 30% (December 2020: 23%) in Barclays Bank UK PLC
and 7% (December 2020: 7%) in Barclays Bank Ireland PLC. The residual portion
of the liquidity pool is held outside of these entities, predominantly in US
subsidiaries, to meet entity-specific stress outflows and local regulatory
requirements. To the extent the use of this residual portion of the liquidity
pool is restricted due to local regulatory requirements, it is assumed to be
unavailable to the rest of the Group in calculating the LCR.
The composition of the pool is subject to limits set by the Board and the
independent liquidity risk, credit risk and market risk functions. In
addition, the investment of the liquidity pool is monitored for concentration
by issuer, currency and asset type. Given returns generated by these highly
liquid assets, the risk and reward profile is continuously managed.
Deposit funding
As at 31.12.21 As at 31.12.20
Loans and advances at amortised cost Deposits at amortised cost Loan: deposit ratio(1) Loan: deposit ratio(1)
Funding of loans and advances £bn £bn % %
Barclays UK 222 260 85 89
Barclays International 134 259 52 51
Head Office 5
Barclays Group 361 519 70 71
1 The loan: deposit ratio is calculated as loans and advances at amortised cost
divided by deposits at amortised cost.
Composition of wholesale funding
Wholesale funding outstanding (excluding repurchase agreements) was £167.5bn
(December 2020: £145.0bn). In 2021, the Group issued £11.0bn of MREL
eligible instruments from Barclays PLC (the Parent company) in a range of
tenors and currencies.
Our operating companies also access wholesale funding markets to maintain
their stable and diversified funding bases. Barclays Bank PLC continued to
issue in the shorter-term and medium-term notes markets. In addition, Barclays
Bank UK PLC continued to issue in the shorter-term markets.
Wholesale funding of £60.7.bn (December 2020: £42.7bn) matures in less than
one year, representing 36% (December 2020: 29%) of total wholesale funding
outstanding. This includes £18.9bn (December 2020: £20.3bn) related to term
funding(2).
Maturity profile of wholesale funding(1,2)
<1 1-3 3-6 6-12 <1 1-2 2-3 3-4 4-5 >5
month months months months year years years years years years Total
£bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn
Barclays PLC (the Parent company)
Senior unsecured (public benchmark) - 0.8 - - 0.8 7.4 5.5 5.5 5.8 15.6 40.6
Senior unsecured (privately placed) - - - - - 0.1 0.1 - - 1.0 1.2
Subordinated liabilities - - - - - - 0.9 - 1.5 6.8 9.2
Barclays Bank PLC (including subsidiaries)
Certificates of deposit and commercial paper 0.7 11.2 10.2 9.0 31.1 0.2 0.1 - - - 31.4
Asset backed commercial paper 2.3 4.2 0.6 - 7.1 - - - - - 7.1
Senior unsecured (public benchmark) - - 1.3 - 1.3 - 0.9 - - 0.4 2.6
Senior unsecured (privately placed)(3) 1.2 2.1 3.1 5.3 11.7 7.1 8.6 4.6 4.0 22.5 58.5
Asset backed securities 0.1 - - 0.5 0.6 0.1 2.0 0.1 0.3 1.4 4.5
Subordinated liabilities - 1.0 - 1.3 2.3 - 0.1 - 0.4 0.8 3.6
Barclays Bank UK PLC (including subsidiaries)
Certificates of deposit and commercial paper 2.9 0.2 0.5 - 3.6 - - - - - 3.6
Senior unsecured (public benchmark) - - - - - - - - - 0.2 0.2
Covered Bonds - 2.2 - - 2.2 1.8 - - - 1.0 5.0
Total as at 31 December 2021 7.2 21.7 15.7 16.1 60.7 16.7 18.2 10.2 12.0 49.7 167.5
Of which secured 2.4 6.4 0.6 0.5 9.9 1.9 2.0 0.1 0.3 2.4 16.6
Of which unsecured 4.8 15.3 15.1 15.6 50.8 14.8 16.2 10.1 11.7 47.3 150.9
Total as at 31 December 2020 5.7 15.4 9.5 12.1 42.7 15.6 16.7 12.3 10.2 47.5 145.0
Of which secured 2.3 5.0 0.7 0.5 8.5 3.1 2.2 0.5 0.2 2.6 17.1
Of which unsecured 3.4 10.4 8.8 11.6 34.2 12.5 14.5 11.8 10.0 44.9 127.9
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 £50.1bn, of which £10.9bn matures within one
year.
Capital
The Group's Overall Capital Requirement for CET1 is 11.1% comprising a 4.5%
Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global
Systemically Important Institution (G-SII) buffer, a 2.6% Pillar 2A
requirement and a 0% Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each jurisdiction
in which the Group has exposures. On 11 March 2020, the Financial Policy
Committee (FPC) set the CCyB rate for UK exposures at 0% with immediate
effect. The buffer rates set by other national authorities for non-UK
exposures are not currently material. Overall, this results in a 0.0% CCyB for
the Group. On 13 December 2021, the FPC announced that a CCyB rate of 1% for
UK exposures has been re-introduced and will be applicable from 13 December
2022.
As at 31 December 2021, the Group's Pillar 2A requirement as per the PRA's
Individual Capital Requirement was set as a nominal amount. When expressed as
a percentage of RWAs this was 4.6% of which at least 56.25% needed to be met
with CET1 capital, equating to approximately 2.6% of RWAs. The Pillar 2A
requirement is subject to at least annual review and is based on a point in
time assessment.
Following the withdrawal of the UK from the EU, any references to CRR as
amended by CRR II mean, unless otherwise specified, CRR as amended by CRR II,
as it forms part of UK law pursuant to the European Union (Withdrawal) Act
2018 and subject to the temporary transitional powers (TTP) available to UK
regulators to delay or phase-in on-shoring changes to UK regulatory
requirements arising at the end of the transition period until 31 March 2022,
as at the applicable reporting date.
Capital ratios(1,2,3) As at 31.12.21 As at 30.09.21 As at 31.12.20
CET1 15.1% 15.4% 15.1%
Tier 1 (T1) 19.2% 19.6% 19.0%
Total regulatory capital 22.3% 22.9% 22.1%
Capital resources £m £m £m
Total equity excluding non-controlling interests per the balance sheet 69,222 68,697 65,797
Less: other equity instruments (recognised as AT1 capital) (12,259) (12,252) (11,172)
Adjustment to retained earnings for foreseeable ordinary share dividends (666) (419) (174)
Adjustment to retained earnings for foreseeable repurchase of shares - (221) -
Adjustment to retained earnings for foreseeable other equity coupons (32) (51) (30)
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1,585) (1,427) (1,146)
Goodwill and intangible assets (6,804) (6,850) (6,914)
Deferred tax assets that rely on future profitability excluding temporary (1,028) (662) (595)
differences
Fair value reserves related to gains or losses on cash flow hedges 852 46 (1,575)
Gains or losses on liabilities at fair value resulting from own credit 892 940 870
Defined benefit pension fund assets (2,619) (1,925) (1,326)
Direct and indirect holdings by an institution of own CET1 instruments (50) (50) (50)
Adjustment under IFRS 9 transitional arrangements 1,229 1,332 2,556
Other regulatory adjustments 345 144 55
CET1 capital 47,497 47,302 46,296
AT1 capital
Capital instruments and related share premium accounts 12,259 12,252 11,172
Qualifying AT1 capital (including minority interests) issued by subsidiaries 637 636 646
Other regulatory adjustments and deductions (80) (80) (80)
AT1 capital 12,816 12,808 11,738
T1 capital 60,313 60,110 58,034
T2 capital
Capital instruments and related share premium accounts 8,713 8,927 7,836
Qualifying T2 capital (including minority interests) issued by subsidiaries 1,113 1,306 1,893
Credit risk adjustments (excess of impairment over expected losses) 73 98 57
Other regulatory adjustments and deductions (160) (160) (160)
Total regulatory capital 70,052 70,281 67,660
Total RWAs 314,136 307,464 306,203
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 £46.3bn of
CET1 capital and £313.9bn 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 31.12.21 Twelve months ended 31.12.21
£m £m
Opening CET1 capital 47,302 46,296
Profit for the period attributable to equity holders 1,335 7,179
Own credit relating to derivative liabilities (6) 16
Ordinary share dividends paid and foreseen (247) (1,004)
Purchased and foreseeable share repurchase - (1,200)
Other equity coupons paid and foreseen (199) (806)
Increase in retained regulatory capital generated from earnings 883 4,185
Net impact of share schemes 60 187
Fair value through other comprehensive income reserve (120) (288)
Currency translation reserve (68) (131)
Other reserves 5 (2)
Decrease in other qualifying reserves (123) (234)
Pension remeasurements within reserves 717 643
Defined benefit pension fund asset deduction (694) (1,293)
Net impact of pensions 23 (650)
Additional value adjustments (PVA) (158) (439)
Goodwill and intangible assets 46 110
Deferred tax assets that rely on future profitability excluding those arising (366) (433)
from temporary differences
Adjustment under IFRS 9 transitional arrangements (103) (1,327)
Other regulatory adjustments (7) (11)
Decrease in regulatory capital due to adjustments and deductions (588) (2,100)
Closing CET1 capital 47,497 47,497
CET1 capital increased £1.2bn to £47.5bn (December 2020: £46.3bn).
£7.2bn of capital generated from profits were partially offset by
distributions of £3bn comprising:
· £1bn of dividends paid and foreseen for ordinary shares, which includes
£0.3bn half year dividend and a £0.7bn accrual towards the 2021 full year
dividend
· £1.2bn for share buybacks made up of £0.7bn for the share buyback announced
with FY20 results and £0.5bn for the share buyback announced with H121
results; and
· £0.8bn of equity coupons paid
Other significant movements in the period were:
· A £1.3bn decrease in IFRS 9 transitional relief, after tax, primarily due to
credit impairment releases, 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
· A £0.7bn decrease as a result of movements relating to pensions, largely due
to deficit contribution payments of £0.35bn in April 2021 and September 2021
· A £0.4bn increase in the PVA deduction due to the reversal of temporary
COVID-19 relief measures which increased diversification factors applied to
certain additional valuation adjustments during 2020
RWAs by risk type and business
Credit risk Counterparty credit risk Market risk Operational risk Total RWAs
STD IRB STD IRB Settlement Risk CVA STD IMA
As at 31.12.21 £m £m £m £m £m £m £m £m £m £m
Barclays UK 7,195 53,408 426 - - 138 100 - 11,022 72,289
Corporate and Investment Bank 29,420 64,416 15,223 19,238 105 2,289 17,306 27,308 25,359 200,664
Consumer, Cards and Payments 20,770 2,749 215 18 - 21 - 57 6,391 30,221
Barclays International 50,190 67,165 15,438 19,256 105 2,310 17,306 27,365 31,750 230,885
Head Office 4,733 7,254 - - - - - - (1,025) 10,962
Barclays Group 62,118 127,827 15,864 19,256 105 2,448 17,406 27,365 41,747 314,136
As at 30.09.21
Barclays UK 7,128 53,981 464 - - 158 115 - 11,381 73,227
Corporate and Investment Bank 26,778 70,842 17,063 19,477 211 2,347 16,399 15,934 23,453 192,504
Consumer, Cards and Payments 20,159 2,740 255 30 - 37 - 44 6,948 30,213
Barclays International 46,937 73,582 17,318 19,507 211 2,384 16,399 15,978 30,401 222,717
Head Office 4,984 7,344 - - - - - - (808) 11,520
Barclays Group 59,049 134,907 17,782 19,507 211 2,542 16,514 15,978 40,974 307,464
As at 31.12.20
Barclays UK 7,360 54,340 394 - - 136 72 - 11,359 73,661
Corporate and Investment Bank 24,660 73,792 12,047 20,280 246 2,351 13,123 22,363 23,343 192,205
Consumer, Cards and Payments 19,754 3,041 177 45 - 31 - 71 6,996 30,115
Barclays International 44,414 76,833 12,224 20,325 246 2,382 13,123 22,434 30,339 222,320
Head Office 4,153 6,869 - - - - - - (800) 10,222
Barclays Group 55,927 138,042 12,618 20,325 246 2,518 13,195 22,434 40,898 306,203
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 (1,106) 1,838 1,295 849 2,876
Acquisitions and disposals (1,095) - - - (1,095)
Book quality 175 (102) - - 73
Model updates (950) (186) 6,927 - 5,791
Methodology and policy (345) 416 920 - 991
Foreign exchange movements(1) (703) - - - (703)
Total RWA movements (4,024) 1,966 9,142 849 7,933
Closing RWAs (as at 31.12.21) 189,945 37,673 44,771 41,747 314,136
1 Foreign exchange movements does not include foreign exchange for counterparty
credit risk, market risk or operational risk.
Overall RWAs increased £7.9bn to £314.1bn (December 2020: £306.2bn).
Significant movements in the period were:
Credit risk RWAs decreased £4.0bn:
· A £1.1bn decrease in book size mainly driven by lower lending, partially
offset by growth in mortgages within Barclays UK
· A £1.1bn decrease in acquisitions and disposals mainly driven by disposal of
wholesale loans during the year
· A £1.0bn decrease in model updates primarily due to modelled risk weight
recalibrations
Counterparty credit risk RWAs increased £2.0bn:
· A £1.8bn increase in book size primarily due to an increase in client and
trading activities within SFTs, partially offset by a reduction in derivatives
Market risk RWAs increased £9.1bn:
· A £1.3bn increase in book size primarily due to an increase in client and
trading activities
· A £6.9bn increase in model updates driven by an increase in Stressed Value at
Risk (SVaR) due to a model adjustment to reflect market movements during the
COVID-19 stressed period following recalibration of the period, which was
delayed until 2021 as a result of COVID-19 relief measures afforded by the PRA
· A £0.9bn increase in methodology and policy driven by the application of
Pillar 1 Structural FX charge, partially offset by a change in the historical
lookback period of the VaR model from two years to one year
Leverage ratio and exposures
The Group is subject to a leverage ratio requirement of 3.8% as at 31 December
2021. This comprises the 3.25% minimum requirement, a G-SII additional
leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage
ratio buffer of 0.0%. Although the leverage ratio is expressed in terms of T1
capital, 75% of the minimum requirement, equating to 2.4375%, needs to be met
with CET1 capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.0bn.
The Group is required to disclose an average UK leverage ratio which is based
on capital on the last day of each month in the quarter and an exposure
measure for each day in the quarter. The Group is also required to disclose a
UK leverage ratio based on capital and exposure on the last day of the
quarter.
Leverage ratios(1,2) As at 31.12.21 As at 30.09.21 As at 31.12.20
£m £m £m
Average UK leverage ratio 4.9% 4.9% 5.0%
Average T1 capital(3) 59,796 58,580 57,069
Average UK leverage exposure 1,227,134 1,199,774 1,146,919
UK leverage ratio 5.3% 5.1% 5.3%
CET1 capital 47,497 47,302 46,296
AT1 capital 12,179 12,172 11,092
T1 capital(3) 59,676 59,474 57,388
UK leverage exposure 1,135,997 1,160,983 1,090,907
UK leverage exposure
Accounting assets
Derivative financial instruments 262,572 258,093 302,446
Derivative cash collateral 58,177 54,166 64,798
Securities financing transactions 170,853 190,927 164,034
Loans and advances and other assets 892,683 903,327 818,236
Total IFRS assets 1,384,285 1,406,513 1,349,514
Regulatory consolidation adjustments (3,665) (2,192) (1,144)
Derivatives adjustments
Derivatives netting (236,881) (231,559) (272,275)
Adjustments to collateral (50,929) (47,490) (57,414)
Net written credit protection 15,509 15,910 14,986
Potential future exposure on derivatives 137,291 143,517 117,010
Total derivatives adjustments (135,010) (119,622) (197,693)
SFTs adjustments 24,544 24,579 21,114
Regulatory deductions and other adjustments (20,219) (19,454) (17,469)
Weighted off-balance sheet commitments 113,140 115,521 113,704
Qualifying central bank claims (210,134) (198,817) (155,890)
Settlement netting (16,944) (45,545) (21,229)
UK leverage exposure 1,135,997 1,160,983 1,090,907
1 Fully loaded average UK leverage ratio was 4.8%, with £58.5bn of T1 capital
and £1,225.8bn of leverage exposure. Fully loaded UK leverage ratio was 5.2%,
with £58.4bn of T1 capital and £1,134.8bn 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.
The average UK leverage ratio decreased to 4.9% (December 2020: 5.0%). The
average leverage exposure increased by £80.2bn to £1,227.1bn (December 2020:
£1,146.9bn) largely driven by balance sheet increases in SFTs and TPAs as
well as PFE on derivatives.
The UK leverage ratio remained stable at 5.3% (December 2020: 5.3%) primarily
driven by a £2.3bn increase in T1 capital offset by a £45.1bn increase in UK
leverage exposure. The UK leverage exposure increase to £1,136.0bn (December
2020: £1,090.9bn) was primarily driven by a £20.3bn increase in PFE on
derivatives, a £19.1bn increase in TPAs due to increased trading activity in
CIB, £18.8bn increase in loans and advances at amortised cost, and a £6.8bn
increase in SFTs, offset by a £16.9bn decrease in assets at fair value
through other comprehensive income due to disposals.
The Group also discloses a CRR leverage ratio(1) within its additional
regulatory disclosures prepared in accordance with EBA guidelines on
disclosure under Part Eight of the CRR (see Barclays PLC Pillar 3 Report 2021,
due to be published on 23 February 2022 and which will be available at
home.barclays/investor-relations/reports-and-events/annual-reports
(https://home.barclays/investor-relations/reports-and-events/latest-financial-results/)
).
1 CRR leverage ratio as amended by CRR II.
MREL
As at 31 December 2021, the Group was required to meet the higher of: (i) the
MREL set by the Bank of England (BoE); and (ii) the requirements in CRR as
amended by CRR II, both of which have RWA and leverage measures.
As at 31 December 2021, Barclays PLC (the Parent company) had £108.2bn of own
funds and eligible liabilities equating to 8% of CRR leverage exposures. This
was in excess of the Group's MREL requirement to hold £93.9bn of own funds
and eligible liabilities, equating to 6.9% of CRR leverage exposures.
CET1 capital cannot be counted towards both MREL and the capital buffers,
meaning that the buffers will effectively be applied above MREL requirements.
MREL requirements including buffers(1,2) Requirement (£m): Requirement (%):
As at 31.12.2021 As at 30.09.2021 As at 31.12.2020 As at 31.12.2021 As at 30.09.2021 As at 31.12.2020
Requirement based on RWAs 77,302 76,174 75,918 24.6% 24.8% 24.8%
Requirement based on CRR leverage exposure (minimum requirement) 93,861 94,438 87,529 6.9% 6.9% 7.0%
Own funds and eligible liabilities(1,2) £m £m £m
CET1 capital 47,497 47,302 46,296
AT1 capital instruments and related share premium accounts(3) 12,179 12,172 11,092
T2 capital instruments and related share premium accounts(3) 8,626 8,865 7,733
Eligible liabilities 39,889 38,787 35,086
Total Barclays PLC (the Parent company) own funds and eligible liabilities 108,191 107,126 100,207
Total RWAs 314,136 307,464 306,203
Total CRR leverage exposure 1,354,284 1,368,259 1,254,157
Own funds and eligible liabilities ratios as a percentage of: As at 31.12.2021 As at 30.09.2021 As at 31.12.2020
Total RWAs 34.4% 34.8% 32.7%
Total CRR leverage exposure 8.0% 7.8% 8.0%
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 As at 31 December 2021, Own funds and eligible liabilities including
instruments issued by subsidiaries was £109.9bn.
3 Includes other AT1 capital regulatory adjustments and deductions of £80m
(December 2020: £80m), and other T2 credit risk adjustments and deductions of
£87m (December 2020: £103m).
Regulatory changes as implemented by the Prudential Regulation Authority
The PRA has implemented several regulatory changes impacting the calculation
of the CET1 ratio within the UK. Changes have also been implemented following
the review of the UK Leverage framework and the setting of MREL
requirements. All changes took effect from 1 January 2022.
Capital and RWAs
On 19 July 2019, the EBA published a report on the implementation of IRB
roadmap changes. These have subsequently been implemented by the PRA via
several Policy Statements. Key changes include revisions to the criteria for
definition of default, PD and LGD estimation to ensure supervisory consistency
and increase transparency of IRB models.
On 14 October 2021, the PRA finalised their implementation of Basel standards
through Policy Statement 22/21. The finalised requirements included the
introduction of the Standardised Approach for Counterparty Credit Risk
(SA-CCR) which replaces the Current Exposure Method (CEM) for Standardised
derivative exposures as a more risk sensitive approach. The PRA also confirmed
the intention to revert to the previous treatment of 100% CET1 capital
deduction for qualifying software assets, meaning the c.35bps benefit in the
CET1 ratio will be reversed.
UK Leverage Ratio Framework
On 8 October 2021, the PRA published its Policy Statement on the UK leverage
ratio framework. The Policy Statement confirms that UK banks will be subject
to a single UK leverage ratio requirement meaning that the CRR leverage ratio
will no longer apply for UK banks. Whilst largely upholding the existing
framework, technical changes generally align to the Basel III standards with
the exception of the qualifying claims on central banks exemption. Central
bank claims can be excluded from the UK leverage ratio measure as long as they
are matched by qualifying liabilities (rather than deposits). Minimum
requirements for the Group remain the same with minimum requirements also
expected to be applied at the individual level from 1 January 2023. Individual
requirements may be replaced with a sub-consolidated measure, subject to
permission from the PRA.
MREL requirements
On 3 December 2021 the BoE set new MREL requirements via an updated Statement
of Policy removing the requirements under CRR, meaning that from 1 January
2022 the Group will be required to meet the higher of (i) 2 times 8% Pillar 1
and 4.6% Pillar 2A requirement; and (ii) 6.75% of UK leverage exposure. Using
the rebased 1 January 2022 RWAs and UK leverage exposure, the MREL requirement
is expected to be £93.6bn based on RWAs. The Group currently holds £108.2bn
of own funds and eligible liabilities which is above the expected 2022 minimum
requirement. The Statement of Policy also confirmed that own funds instruments
issued by subsidiaries cannot count towards the Group's MREL from 1 January
2022.
Barclays has calculated RWAs, Leverage exposures and Capital and Leverage
ratios reflecting our interpretation of the latest rules and guidance.
Impacts due to implementation of regulatory changes - indicative as at As at Rebased as at
01.01.22
31.12.21 01.01.22
£bn £bn
CET1 ratio 15.1% 14.3%
CET1 capital 47.5 45.8
Total RWAs(1,2) 314.1 320.5
UK leverage ratio 5.3% 5.3%
T1 capital 59.7 58.0
UK leverage exposure 1,136.0 1,102.1
MREL requirement based on UK leverage exposures(3) 87.3
MREL requirement based on RWAs (minimum requirement)(3) 93.6
1 Includes expected impact on CVA of roll out of SA-CCR across 60 day average
period.
2 IRB roadmap impact based on latest available data by portfolio, majority is
based on 31 December 2021.
3 MREL requirement for 31 December 2021 was £93.9bn based on CRR leverage
exposures which no longer apply for UK banks from 1 January 2022.
Barclays CET1 ratio is expected to decrease by c.80bps as a result of the
regulatory changes which took effect from 1 January 2022, due to the reversal
of the software intangibles benefit, implementation of IRB roadmap changes,
introduction of SA-CCR and amortisation of IFRS 9 transitional relief.
The UK Leverage ratio is expected to remain broadly stable following the
introduction of SA-CCR and exclusion of central bank claims matched by
qualifying liabilities, partially offset by the reversal of the software
intangibles benefit.
Statement of Directors' Responsibilities
Each of the Directors (the names of whom are set out below) confirm that:
· to the best of their knowledge, the condensed consolidated financial
statements (set out on pages 58 to 62), which have been prepared in accordance
with (a) UK-adopted international accounting standards; and (b) International
Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), including interpretations issued by the IFRS
Interpretations Committee, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole. The condensed
consolidated financial statements should be read in conjunction with the
annual financial statements as included in the Annual Report for the year
ended 31 December 2021; and
· to the best of their knowledge, the management information (set out on pages 1
to 56) includes a fair review of the development and performance of the
business and the position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face. This management information should be
read in conjunction with the principal risks and uncertainties included in the
Annual Report for the year ended 31 December 2021.
Signed on 22 February 2022 on behalf of the Board by
C. S. Venkatakrishnan Tushar Morzaria
Group Chief Executive Group Finance Director
Barclays PLC Board of Directors:
Chairman Executive Directors Non-Executive Directors
Nigel Higgins C. S. Venkatakrishnan Mike Ashley
Tushar Morzaria Robert Berry
Tim Breedon CBE
Mohamed A. El-Erian
Dawn Fitzpatrick
Mary Francis CBE
Crawford Gillies
Brian Gilvary
Diane Schueneman
Julia Wilson
Condensed Consolidated Financial Statements
Condensed consolidated income statement
Year ended 31.12.21 Year ended 31.12.20
Notes(1) £m £m
Interest and similar income 11,240 11,892
Interest and similar expense (3,167) (3,770)
Net interest income 8,073 8,122
Fee and commission income 9,880 8,641
Fee and commission expense (2,206) (2,070)
Net fee and commission income 7,674 6,571
Net trading income 5,794 7,029
Net investment income 311 13
Other income 88 31
Total income 21,940 21,766
Credit impairment releases/(charges) 653 (4,838)
Net operating income 22,593 16,928
Staff costs (8,511) (8,097)
Infrastructure, administration and general expenses (5,751) (5,636)
Litigation and conduct (177) (153)
Operating expenses (14,439) (13,886)
Share of post-tax results of associates and joint ventures 260 6
Profit on disposal of subsidiaries, associates and joint ventures - 17
Profit before tax 8,414 3,065
Tax charge 1 (1,188) (604)
Profit after tax 7,226 2,461
Attributable to:
Equity holders of the parent 6,375 1,526
Other equity instrument holders 804 857
Total equity holders of the parent 7,179 2,383
Non-controlling interests 2 47 78
Profit after tax 7,226 2,461
Earnings per share p p
Basic earnings per ordinary share 3 37.5 8.8
Diluted earnings per ordinary share 3 36.6 8.6
1 For notes to the Financial Statements see pages 63 to 68.
Condensed consolidated statement of comprehensive income
Year ended 31.12.21 Year ended 31.12.20
Notes(1) £m £m
Profit after tax 7,226 2,461
Other comprehensive (loss)/income that may be recycled to profit or loss:(2)
Currency translation reserve 11 (131) (473)
Fair value through other comprehensive income reserve 11 (429) 454
Cash flow hedging reserve 11 (2,428) 573
Other 11 - 5
Other comprehensive (loss)/income that may be recycled to profit or loss (2,988) 559
Other comprehensive income/(loss) not recycled to profit or loss:(2)
Retirement benefit remeasurements 8 643 (111)
Fair value through other comprehensive income reserve 11 141 (262)
Own credit 11 (14) (581)
Other comprehensive income/(loss) not recycled to profit or loss 770 (954)
Other comprehensive loss for the period (2,218) (395)
Total comprehensive income for the period 5,008 2,066
Attributable to:
Equity holders of the parent 4,961 1,988
Non-controlling interests 47 78
Total comprehensive income for the period 5,008 2,066
1 For notes to the Financial Statements see pages 63 to 68.
2 Reported net of tax.
Condensed consolidated balance sheet
As at 31.12.21 As at 31.12.20
Assets Notes(1) £m £m
Cash and balances at central banks 238,574 191,127
Cash collateral and settlement balances 92,542 101,367
Loans and advances at amortised cost 361,451 342,632
Reverse repurchase agreements and other similar secured lending 3,227 9,031
Trading portfolio assets 147,035 127,950
Financial assets at fair value through the income statement 191,972 175,151
Derivative financial instruments 262,572 302,446
Financial assets at fair value through other comprehensive income 61,753 78,688
Investments in associates and joint ventures 999 781
Goodwill and intangible assets 8,061 7,948
Property, plant and equipment 3,555 4,036
Current tax assets 261 477
Deferred tax assets 1 4,619 3,444
Retirement benefit assets 8 3,879 1,814
Other assets 3,785 2,622
Total assets 1,384,285 1,349,514
Liabilities
Deposits at amortised cost 519,433 481,036
Cash collateral and settlement balances 79,371 85,423
Repurchase agreements and other similar secured borrowing 28,352 14,174
Debt securities in issue 98,867 75,796
Subordinated Liabilities 12,759 16,341
Trading portfolio liabilities 54,169 47,405
Financial liabilities designated at fair value 250,960 249,765
Derivative financial instruments 256,883 300,775
Current tax liabilities 739 645
Deferred tax liabilities 1 37 15
Retirement benefit liabilities 8 311 291
Other liabilities 10,505 8,662
Provisions 7 1,688 2,304
Total liabilities 1,314,074 1,282,632
Equity
Called up share capital and share premium 9 4,536 4,637
Other reserves 11 1,770 4,461
Retained earnings 50,657 45,527
Shareholders' equity attributable to ordinary shareholders of the parent 56,963 54,625
Other equity instruments 10 12,259 11,172
Total equity excluding non-controlling interests 69,222 65,797
Non-controlling interests 2 989 1,085
Total equity 70,211 66,882
Total liabilities and equity 1,384,285 1,349,514
1 For notes to the Financial Statements see pages 63 to 68.
Condensed consolidated statement of changes in equity
Called up share capital and share premium Other equity instruments Other reserves Retained earnings Total Non-controlling interests Total equity
Year ended 31.12.2021 £m £m £m £m £m £m £m
Balance as at 1 January 2021 4,637 11,172 4,461 45,527 65,797 1,085 66,882
Profit after tax - 804 - 6,375 7,179 47 7,226
Retirement benefit remeasurements - - - 643 643 - 643
Other comprehensive profit after tax for the year - - (2,861) - (2,861) - (2,861)
Total comprehensive income for the period - 804 (2,861) 7,018 4,961 47 5,008
Employee share schemes and hedging thereof 60 - - 235 295 - 295
Issue and redemption of other equity instruments - 1,078 - 6 1,084 (75) 1,009
Other equity instruments coupon paid - (804) - - (804) - (804)
Vesting of employee share schemes - - 1 (410) (409) - (409)
Dividends paid - - - (512) (512) (44) (556)
Repurchase of shares (161) - 161 (1,200) (1,200) - (1,200)
Other movements - 9 8 (7) 10 (24) (14)
Balance as at 31 December 2021 4,536 12,259 1,770 50,657 69,222 989 70,211
Year ended 31.12.2020
Balance as at 1 January 2020 4,594 10,871 4,760 44,204 64,429 1,231 65,660
Profit after tax - 857 - 1,526 2,383 78 2,461
Retirement benefit remeasurements - - - (111) (111) - (111)
Other comprehensive profit after tax for the year - - (289) 5 (284) - (284)
Total comprehensive income for the period - 857 (289) 1,420 1,988 78 2,066
Employee share schemes and hedging thereof 43 - - 303 346 - 346
Issue and redemption of other equity instruments - 311 - (55) 256 (158) 98
Other equity instruments coupon paid - (857) - - (857) - (857)
Vesting of shares under employee share schemes - - (10) (347) (357) - (357)
Dividends paid - - - - - (79) (79)
Other movements - (10) - 2 (8) 13 5
Balance as at 31 December 2020 4,637 11,172 4,461 45,527 65,797 1,085 66,882
Condensed consolidated cash flow statement
Year ended 31.12.21 Year ended 31.12.20
£m £m
Profit before tax 8,414 3,065
Adjustment for non-cash items 4,803 5,007
Net increase in loans and advances at amortised cost (10,728) (4,365)
Net increase in deposits at amortised cost 38,397 65,249
Net increase/(decrease) in debt securities in issue 18,131 (6,309)
Changes in other operating assets and liabilities (8,763) (4,459)
Corporate income tax paid (1,335) (683)
Net cash from operating activities 48,919 57,505
Net cash from investing activities 4,270 (18,376)
Net cash from financing activities 107 2,732
Effect of exchange rates on cash and cash equivalents (4,232) 1,668
Net increase/(decrease) in cash and cash equivalents 49,064 43,529
Cash and cash equivalents at beginning of the period 210,142 166,613
Cash and cash equivalents at end of the period 259,206 210,142
Financial Statement Notes
1. Tax
The tax charge for 2021 was £1,188m (2020: £604m), representing an effective
tax rate of 14.1% (2020: 19.7%). This reflects a £462m tax benefit, with a
£111m tax charge within other comprehensive income, for the re-measurement of
the Group's UK deferred tax assets as a result of the enactment in 2021 of a
UK corporation tax rate increase from 19% to 25% effective from 1 April 2023.
Absent this re-measurement of deferred tax assets the effective tax rate would
have been 19.6%. Included in the 2021 tax charge is a credit of £212m (2020:
£233m) in respect of payments made on AT1 instruments that are classified as
equity for accounting purposes.
In its Budget held in October 2021, the UK Government announced that the
banking surcharge rate will be reduced from 8% to 3% from 1 April 2023. The
reduction in the banking surcharge rate was substantively enacted on 2
February 2022 and is a non-adjusting post balance sheet event. If the
reduction in the banking surcharge rate had been substantively enacted at the
balance sheet date then this would have resulted in the Group's UK deferred
tax assets being re-measured and decreasing with a tax charge in the income
statement of £346m and a tax credit within other comprehensive income of
£87m.
In October 2021, the OECD and G20 Inclusive Framework on Base Erosion and
Profit Shifting announced plans to introduce a global minimum tax rate of 15%
from 2023. The model rules, which set out the scope of and the mechanism for
calculating the global minimum tax, were released by the OECD on 20 December
2021. The Group is reviewing the model rules and awaiting the OECD's
anticipated publication of further guidance, as well as new legislation
expected to be released by governments implementing this new tax regime, and
will assess the potential impact of new legislation during 2022.
In the USA, a proposed Build Back Better Act has been passed by the House of
Representatives but has not been passed by the Senate and at this time it is
uncertain whether the Act will progress further. The proposed Act passed by
the House of Representatives included proposals to implement material changes
to international tax provisions, including amendments to the Base Erosion and
Anti-Abuse Tax and the imposition of an alternative minimum tax based on
accounting profits. It is unclear at this time whether any of these proposals
could have a significant impact on the Group if enacted. The Group will
continue to monitor developments and assess the potential impact of any future
legislative changes ultimately enacted.
As at 31.12.21 As at 31.12.20
Deferred tax assets and liabilities £m £m
UK 2,183 886
USA 2,006 2,049
Other territories 430 509
Deferred tax assets 4,619 3,444
Deferred tax liabilities (37) (15)
Analysis of deferred tax assets
Temporary differences 3,399 2,709
Tax losses 1,220 735
Deferred tax assets 4,619 3,444
2. Non-controlling interests
Profit attributable to Equity attributable to
non-controlling interests non-controlling interests
Year ended 31.12.21 Year ended 31.12.20 As at 31.12.21 As at 31.12.20
£m £m £m £m
Barclays Bank PLC issued:
- Preference shares 27 42 529 529
- Upper T2 instruments 17 37 458 533
Other non-controlling interests 3 (1) 2 23
Total 47 78 989 1,085
3. Earnings per share
Year ended 31.12.21 Year ended 31.12.20
£m £m
Profit attributable to ordinary equity holders of the parent 6,375 1,526
m m
Basic weighted average number of shares in issue 16,985 17,300
Number of potential ordinary shares 435 368
Diluted weighted average number of shares 17,420 17,668
p p
Basic earnings per ordinary share 37.5 8.8
Diluted earnings per ordinary share 36.6 8.6
4. Dividends on ordinary shares
It is Barclays' policy to declare and pay dividends on a semi-annual basis.
The 2021 full year dividend of 4p per ordinary share will be paid on 5 April
2022 to the shareholders on the Share Registrar on 4 March 2022. The half year
dividend for 2021 of 2.0p (H120: 0p) per ordinary share was paid on 17
September 2021.
Year ended 31.12.21 Year ended 31.12.20
Per share Total Per share Total
Dividends paid during the period p £m p £m
Full year dividend paid during period 1.0 173 - -
Half year dividend paid during period 2.0 339 - -
Total dividend 3.0 512 - -
The Directors have confirmed their intention to initiate a share buyback of up
to £1bn after the balance sheet date. The share buyback is expected to
commence in the first quarter of 2022. The financial statements for the year
ended 31 December 2021 do not reflect the impact of the proposed share
buyback, which will be accounted for as and when shares are repurchased by the
Company.
5. Fair value of financial instruments
This section should be read in conjunction with Note 17, Fair value of
financial instruments of the Barclays PLC Annual Report 2021 which provides
more detail about accounting policies adopted, valuation methodologies used in
calculating fair value and the valuation control framework which governs
oversight of valuations. There have been no changes in the accounting policies
adopted or the valuation methodologies used.
Valuation
The following table shows the Group's assets and liabilities that are held at
fair value disaggregated by valuation technique (fair value hierarchy) and
balance sheet classification:
Valuation technique using
Quoted market prices Observable inputs Significant unobservable inputs
(Level 1) (Level 2) (Level 3) Total
As at 31.12.21 £m £m £m £m
Trading portfolio assets 80,926 63,828 2,281 147,035
Financial assets at fair value through the income statement 5,093 177,167 9,712 191,972
Derivative financial instruments 6,150 252,412 4,010 262,572
Financial assets at fair value through other comprehensive income 22,009 39,706 38 61,753
Investment property - - 7 7
Total assets 114,178 533,113 16,048 663,339
Trading portfolio liabilities (27,529) (26,613) (27) (54,169)
Financial liabilities designated at fair value (174) (250,376) (410) (250,960)
Derivative financial instruments (6,571) (244,253) (6,059) (256,883)
Total liabilities (34,274) (521,242) (6,496) (562,012)
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)
6. Subordinated liabilities
Year ended 31.12.21 Year ended 31.12.20
£m £m
Opening balance as at 1 January 16,341 18,156
Issuances 1,890 1,438
Redemptions (4,807) (3,464)
Other (665) 211
Closing balance 12,579 16,341
Issuances of £1,890m comprise £855m EUR 1.125% Fixed Rate Resetting
Subordinated Callable Notes and £724m USD 3.811% Fixed Rate Resetting
Subordinated Callable Notes, both issued externally by Barclays PLC and £229m
USD Floating Rate Notes and £82m ZAR Floating Rate Notes issued externally by
Barclays subsidiaries.
Redemptions of £4,807m comprise £1,961m GBP 10% Fixed Rate Subordinated
Notes, £1,339m EUR 6% Fixed Rate Subordinated Notes, £1,075m USD 10.179%
Fixed Rate Subordinated Notes, £200m GBP 9.5% Subordinated Bonds and £86m
EUR Subordinated Floating Rate Notes, issued externally by Barclays Bank PLC
and £146m USD Floating Rate Notes issued externally by a Barclays subsidiary.
Other movements predominantly comprise foreign exchange movements, fair value
hedge adjustments and reclassification from Debt Securities in Issue of £67m
Undated Subordinated Loan Notes (secured) issued externally by a Barclays
securitisation special purpose vehicle in 2020.
7. Provisions
As at 31.12.21 As at 31.12.20
£m £m
Customer redress 310 497
Legal, competition and regulatory matters 226 268
Redundancy and restructuring 326 158
Undrawn contractually committed facilities and guarantees(1) 542 1,064
Onerous contracts 5 28
Sundry provisions 279 289
Total 1,688 2,304
1 Undrawn contractually committed facilities and guarantees provisions are
accounted for under IFRS 9.
8. Retirement benefits
As at 31 December 2021, the Group's IAS 19 pension surplus across all schemes
was £3.6bn (December 2020: £1.5bn). The UK Retirement Fund (UKRF), which is
the Group's main scheme, had an IAS 19 pension surplus of £3.8bn (December
2020: £1.8bn). The movement for the UKRF was driven by payment of deficit
reduction contributions, and an increase in the discount rate, partially
offset by higher expected long term price inflation.
UKRF funding valuations
The latest annual update as at 30 September 2021 showed the funding position
had improved to a surplus of £0.6bn from a deficit of £0.9bn shown at 30
September 2020. The improvement was mainly due to £0.7bn of deficit reduction
contributions and favourable asset returns, partially offset by higher
expected long term price inflation. The deficit recovery plan agreed at the
last triennial valuation requires deficit reduction contributions from
Barclays Bank PLC of £294m in 2022, £286m in 2023 and £0m in 2024. The
deficit reduction contributions are in addition to the regular contributions
to meet the Group's share of the cost of benefits accruing over each year.
Deficit reduction contributions amounting to £700m were paid in 2021. The
next triennial actuarial valuation of the UKRF is due to be completed in 2023
with an effective date of 30 September 2022.
9. Called up share capital
Ordinary share capital Share premium Total share capital and share premium
Year ended 31.12.21 £m £m £m
Opening balance as at 1 January 4,340 297 4,637
Issue of shares under employee share schemes 9 51 60
Repurchase of shares (161) - (161)
Closing balance 4,188 348 4,536
Called up share capital comprised 16,752m (December 2020: 17,359m) ordinary
shares of 25p each. The decrease is mainly due to the repurchase of 644m
shares as part of the share buybacks conducted in 2021, partially offset by an
increase due to the issuance of shares under employee share schemes.
10. Other equity instruments
Year ended 31.12.21 Year ended 31.12.20
£m £m
Opening balance as at 1 January 11,172 10,871
Issuances 1,078 1,142
Redemptions - (831)
Securities held by the Group 9 (10)
Closing balance 12,259 11,172
Other equity instruments of £12,259m (December 2020: £11,172m) include AT1
securities issued by Barclays PLC. There was one issuance in the period.
The AT1 securities are perpetual securities with no fixed maturity and are
structured to qualify as AT1 instruments under prevailing capital rules
applicable as at the relevant issue date. AT1 securities are undated and are
redeemable, at the option of Barclays PLC, in whole on (i) the initial reset
date, or on any fifth anniversary after the initial reset date or (ii) any day
falling in a named period ending on the initial reset date, or on any fifth
anniversary after the initial reset date. In addition, the AT1 securities are
redeemable, at the option of Barclays PLC, in whole in the event of certain
changes in the tax or regulatory treatment of the securities. Any redemptions
require the prior consent of the PRA.
All Barclays PLC AT1 securities will be converted into ordinary shares of
Barclays PLC, at a pre-determined price, should the fully loaded CET1 ratio of
the Group fall below 7%.
11. Other reserves
As at 31.12.21 As at 31.12.20
£m £m
Currency translation reserve 2,740 2,871
Fair value through other comprehensive income reserve (283) 5
Cash flow hedging reserve (853) 1,575
Own credit reserve (960) (954)
Other reserves and treasury shares 1,126 964
Total 1,770 4,461
Currency translation reserve
The currency translation reserve represents the cumulative gains and losses on
the retranslation of the Group's net investment in foreign operations, net of
the effects of hedging.
As at 31 December 2021, there was a credit balance of £2,740m (December 2020:
£2,871m credit) in the currency translation reserve. The £131m debit
movement principally reflects the strengthening of GBP against EUR and
weakening of GBP against USD during the period.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve represents the
unrealised change in the fair value through other comprehensive income
investments since initial recognition.
As at 31 December 2021, there was a debit balance of £283m (December 2020:
£5m credit) in the fair value through other comprehensive income reserve. The
loss of £288m is principally driven by a loss of £313m from the decrease in
fair value of bonds due to increasing bond yields and £305m of net gains
transferred to the income statement. This is partially offset by a gain of
£139m due to an increase in the Absa Group Limited share price and a tax
credit of £198m. £8m release in impairment was also noted during the period.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and losses on
effective cash flow hedging instruments that will be recycled to the income
statement when the hedged transactions affect profit or loss.
As at 31 December 2021, there was a debit balance of £853m (December 2020:
£1,575m credit) in the cash flow hedging reserve. The decrease of £2,428m
principally reflects a £2,280m decrease in the fair value of interest rate
swaps held for hedging purposes as major interest rate forward curves
increased and £1,173m of gains transferred to the income statement. This is
partially offset by a tax credit of £1,025m.
Own credit reserve
The own credit reserve reflects the cumulative own credit gains and losses on
financial liabilities at fair value. Amounts in the own credit reserve are not
recycled to profit or loss in future periods.
As at 31 December 2021, there was a debit balance of £960m (December 2020:
£954m debit) in the own credit reserve. The movement of £6m principally
reflects a £105m loss from the tightening of Barclays' funding spreads. This
is partially offset by other activity of £7m and a tax credit of £92m.
Other reserves and treasury shares
Other reserves relate to redeemed ordinary and preference shares issued by the
Group. Treasury shares relate to Barclays PLC shares held principally in
relation to the Group's various share schemes.
As at 31 December 2021, there was a credit balance of £1,126m (December 2020:
£964m credit) in other reserves and treasury shares. This is driven by an
increase of £161m due to the repurchase of 644m shares as part of the share
buybacks conducted in 2021 and a £1m increase due to a reduction in treasury
shares held in relation to employee share schemes.
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance measures
included in this document provide valuable information to the readers of the
financial statements as they enable the reader to identify a more consistent
basis for comparing the businesses' performance between financial periods, and
provide more detail concerning the elements of performance which the managers
of these businesses are most directly able to influence or are relevant for an
assessment of the Group. They also reflect an important aspect of the way in
which operating targets are defined and performance is monitored by
management.
However, any non-IFRS performance measures in this document are not a
substitute for IFRS measures and readers should consider the IFRS measures as
well.
Non-IFRS performance measures glossary
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 46.
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 Statutory 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 pages 70 to 72.
Return on average allocated tangible equity Statutory 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 pages 70 to 73.
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total 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 29. Quoted as zero
when credit impairment is a net release.
Net interest margin Net interest income divided by the sum of average customer assets. The
components of the calculation have been included on pages 24 to 25.
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 74.
Returns
Return on average tangible equity is calculated as profit after tax
attributable to ordinary equity holders of the parent as a proportion of
average tangible equity, excluding non-controlling and other equity interests
for businesses. Allocated tangible equity has been 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 average allocated tangible equity
represents the difference between the Group's average tangible shareholders'
equity and the amounts allocated to businesses.
Profit/(loss) attributable to ordinary equity holders of the parent Average tangible equity Return on average tangible equity
For the year ended 31.12.21 £m £bn %
Barclays UK 1,756 10.0 17.6
Corporate and Investment Bank 4,202 28.3 14.9
Consumer, Cards and Payments 615 4.1 15.0
Barclays International 4,817 32.4 14.9
Head Office (198) 5.0 n/m
Barclays Group 6,375 47.4 13.4
For the year ended 31.12.20
Barclays UK 325 10.1 3.2
Corporate and Investment Bank 2,554 27.0 9.5
Consumer, Cards and Payments (334) 4.5 (7.5)
Barclays International 2,220 31.5 7.1
Head Office (1,019) 6.7 n/m
Barclays Group 1,526 48.3 3.2
Year ended 31.12.21
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/(loss) 1,756 4,202 615 4,817 (198) 6,375
£bn £bn £bn £bn £bn £bn
Average shareholders' equity 13.6 28.3 4.8 33.1 8.7 55.4
Average goodwill and intangibles (3.6) - (0.7) (0.7) (3.7) (8.0)
Average tangible shareholders' equity 10.0 28.3 4.1 32.4 5.0 47.4
Return on average tangible shareholders' equity 17.6% 14.9% 15.0% 14.9% n/m 13.4%
Year ended 31.12.20
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) 325 2,554 (334) 2,220 (1,019) 1,526
£bn £bn £bn £bn £bn £bn
Average shareholders' equity 13.7 27.0 5.1 32.1 10.6 56.4
Average goodwill and intangibles (3.6) - (0.6) (0.6) (3.9) (8.1)
Average tangible shareholders' equity 10.1 27.0 4.5 31.5 6.7 48.3
Return on average tangible shareholders' equity 3.2% 9.5% (7.5)% 7.1% n/m 3.2%
Barclays Group
Return on average tangible shareholders' equity Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
£m £m £m £m £m £m £m £m
Attributable profit 1,117 1,446 2,108 1,704 220 611 90 605
£bn £bn £bn £bn £bn £bn £bn £bn
Average shareholders' equity 56.3 56.6 54.4 54.4 55.7 56.4 58.4 55.2
Average goodwill and intangibles (8.1) (8.2) (7.9) (7.9) (8.1) (8.1) (8.2) (8.2)
Average tangible shareholders' equity 48.2 48.4 46.5 46.5 47.6 48.3 50.2 47.0
Return on average tangible shareholders' equity 9.3% 11.9% 18.1% 14.7% 1.8% 5.1% 0.7% 5.1%
Barclays UK
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Return on average allocated tangible equity £m £m £m £m £m £m £m £m
Attributable profit/(loss) 420 317 721 298 160 113 (123) 175
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 13.6 13.6 13.5 13.5 13.4 13.7 13.9 13.7
Average goodwill and intangibles (3.6) (3.6) (3.6) (3.6) (3.6) (3.6) (3.6) (3.6)
Average allocated tangible equity 10.0 10.0 9.9 9.9 9.8 10.1 10.3 10.1
Return on average allocated tangible equity 16.8% 12.7% 29.1% 12.0% 6.5% 4.5% (4.8)% 6.9%
Barclays International
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Return on average allocated tangible equity £m £m £m £m £m £m £m £m
Attributable profit 856 1,263 1,267 1,431 441 782 468 529
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 33.8 32.7 33.0 32.8 31.1 31.2 34.2 31.9
Average goodwill and intangibles (0.9) (0.9) (0.6) (0.5) (0.6) (0.6) (0.7) (0.7)
Average allocated tangible equity 32.9 31.8 32.4 32.3 30.5 30.6 33.5 31.2
Return on average allocated tangible equity 10.4% 15.9% 15.6% 17.7% 5.8% 10.2% 5.6% 6.8%
Corporate and Investment Bank
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Return on average allocated tangible equity £m £m £m £m £m £m £m £m
Attributable profit 733 1,157 1,049 1,263 413 627 694 820
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 28.7 27.8 28.4 28.2 26.3 26.4 29.1 26.2
Average goodwill and intangibles - - - - - - (0.1) -
Average allocated tangible equity 28.7 27.8 28.4 28.2 26.3 26.4 29.0 26.2
Return on average allocated tangible equity 10.2% 16.6% 14.8% 17.9% 6.3% 9.5% 9.6% 12.5%
Consumer, Cards and Payments
Q421 Q321 Q221 Q121 Q420 Q320 Q220 Q120
Return on average allocated tangible equity £m £m £m £m £m £m £m £m
Attributable profit/(loss) 123 106 218 168 28 155 (226) (291)
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 5.1 4.9 4.6 4.6 4.8 4.8 5.1 5.7
Average goodwill and intangibles (0.9) (0.9) (0.6) (0.5) (0.6) (0.6) (0.6) (0.7)
Average allocated tangible equity 4.2 4.0 4.0 4.1 4.2 4.2 4.5 5.0
Return on average allocated tangible equity 11.7% 10.5% 21.8% 16.5% 2.7% 14.7% (20.2)% (23.5)%
Tangible net asset value per share As at 31.12.21 As at 31.12.20
£m £m
Total equity excluding non-controlling interests 69,222 65,797
Other equity instruments (12,259) (11,172)
Goodwill and intangibles (8,061) (7,948)
Tangible shareholders' equity attributable to ordinary shareholders of the 48,902 46,677
parent
m m
Shares in issue 16,752 17,359
p p
Tangible net asset value per share 292 269
Shareholder Information
Results timetable(1) Date
Ex-dividend date 3 March 2022
Dividend record date 4 March 2022
Cut off time of 5:00pm (UK time) for the receipt of Dividend Re-investment 18 March 2022
Programme (DRIP) Application Form Mandate
Dividend payment date 5 April 2022
Q1 2022 Results Announcement 28 April 2022
For qualifying US and Canadian resident ADR holders, the 2021 full year
dividend of 4.0p per ordinary share becomes 16.0p per ADS (representing four
shares). The ex-dividend, dividend record and dividend payment dates for ADR
holders are as shown above.
Year ended Year ended
Exchange rates(2) 31.12.21 31.12.20 % Change(3)
Period end - USD/GBP 1.35 1.37 (1)%
Average - USD/GBP 1.38 1.28 8%
3 month average - USD/GBP 1.35 1.32 2%
Period end - EUR/GBP 1.19 1.12 6%
Average - EUR/GBP 1.16 1.13 3%
3 month average - EUR/GBP 1.18 1.11 6%
Share price data
Barclays PLC (p) 187.00 146.68
Barclays PLC number of shares (m) 16,752 17,359
For further information please contact
Investor relations Media relations
Chris Manners +44 (0) 20 7773 2136 Tom Hoskin +44 (0) 20 7116 4755
More information on Barclays can be found on our website: home.barclays
(https://home.barclays/) .
Registered office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000.
Company number: 48839.
Registrar
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United
Kingdom.
Tel: 0371 384 2055(4) from the UK or +44 121 415 7004 from overseas.
American Depositary Receipts (ADRs)
Shareowner Services
StockTransfer@equiniti.com
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128 (outside
the US and Canada)
Shareowner Services, PO Box 64504, St Paul, MN 55164-0504, USA.
Delivery of ADR certificates and overnight mail
Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN
55120, USA.
Qualifying US and Canadian resident ADR holders should contact Shareowner
Services for further details regarding the DRIP
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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