REG - Barclays PLC - 1st Quarter Results

BarclaysAnnouncement

25/04/2019 07:05

RNS Number : 0167X
Barclays PLC
25 April 2019
 


 
Barclays PLC
Results Announcement
 
31 March 2019
 
 
Performance Highlights
 
Resilient performance with Group return on tangible equity of 9.6%1
 




·


Barclays has continued to implement its strategy in pursuit of improved returns for shareholders




·


Financial targets remain unchanged. Barclays is focused on achieving the 2019 and 2020 Group return on tangible equity (RoTE) targets of >9% and >10% respectively




·


The income environment in the quarter was challenging and if this were to persist for the remainder of the year Barclays expects to reduce costs below the Group cost guidance of £13.6-13.9bn for 2019




 
 




Returns1
 
Group RoTE targets of >9% in 2019 and >10% in 2020


·


Profit before tax of £1.5bn (Q118: £1.7bn) and earnings per share (EPS) of 6.3p (Q118: 7.1p)




·


Group RoTE of 9.6% (Q118: 11.0%)



-

Barclays UK RoTE of 16.4% (Q118: 15.7%)



-

Barclays International RoTE of 10.6% (Q118: 13.6%), with the Corporate and Investment Bank (CIB) RoTE of 9.5% (Q118: 13.2%), in the challenging income environment, and Consumer, Cards and Payments of 15.4% (Q118: 15.7%)




Cost efficiency
 
Group cost guidance of £13.6-13.9bn1 in 2019
Cost: income ratio of <60% over time


·


Group operating expenses1 decreased 3% to £3.3bn, resulting in a cost: income ratio of 62% (Q118: 63%) and positive cost: income jaws for the Group




·


2019 Group cost guidance remains unchanged at £13.6-13.9bn. However, should the challenging income environment experienced in Q119 continue, management expect to reduce 2019 costs below £13.6bn




Capital and dividends
 
At end-state CET1 ratio target of c.13%


·


Common equity tier 1 (CET1) ratio of 13.0% (December 2018: 13.2%), as 39bps of organic capital generation from profits was offset by a £7.8bn increase in Risk Weighted Assets (RWAs) primarily due to seasonality, 14bps from dividends paid and foreseen, and 8bps relating to employee share awards




·


Maintain our capital returns policy, incorporating a progressive ordinary dividend, supplemented by share buybacks as and when appropriate




 




·


Barclays Group profit before tax was £1.5bn (Q118: loss of £0.2bn). Excluding litigation and conduct, Group profit before tax was £1.5bn (Q118: £1.7bn). Income was down 2% and operating expenses were reduced by 3%. The cost: income ratio was 62% (Q118: 63%). Credit impairment charges increased to £0.4bn (Q118: £0.3bn) and were £0.2bn lower than in Q418, which included a £150m specific charge for the impact of the anticipated economic uncertainty in the UK




·


Barclays UK profit before tax increased to £0.6bn (Q118: £0.2bn). Excluding litigation and conduct, profit before tax increased 1% to £0.6bn reflecting a 5% reduction in credit impairment charges due to a reduced risk appetite and continued benign economic environment. Operating expenses decreased 1% reflecting improved operating efficiency, partially offset by continued investment in digital. Income declined 1%, as continuing margin pressures were partially offset by sustainable growth in mortgages and deposits




·


Barclays International profit before tax decreased to £1.1bn (Q118: £1.4bn), reflecting challenging markets for the CIB. Income was down 6%, as growth in Consumer, Cards and Payments was more than offset by the reduction in CIB, reflecting reduced client activity, lower volatility and a smaller banking fee pool across the industry2. Operating expenses reduced by 4% as variable compensation accruals were reduced, reflecting income performance in the CIB. Credit impairment charges increased by £0.2bn, due to the non-recurrence of a favourable US macroeconomic forecast update in Q118




·


Attributable profit was £1.0bn (Q118: loss of £0.8bn). This reflected the non-recurrence of Q118 litigation and conduct charges of £2.0bn, principally relating to the Residential Mortgage Backed Securities settlement and Payment Protection Insurance (PPI). Basic earnings per share was 6.3p (Q118: 7.1p) excluding litigation and conduct




·


Tangible net asset value (TNAV) per share increased 4p in Q119 to 266p as 6.3p of EPS, excluding litigation and conduct, was partially offset by reserve movements, including the impact of changes in FX, the pension re-measurement and employee share awards




 




1


Excluding litigation and conduct, with returns targets based on a Barclays Group CET1 ratio of c.13%.




2


Source: Dealogic.




 
James E Staley, Group Chief Executive Officer, said:
 
"Today we have announced that Barclays earned just over £1bn of attributable profit in the first quarter of 2019, or 6.1 pence per share.
 
Group RoTE was 9.2% in spite of a mixed environment for global banks. TNAV increased 4p to 266p, which has now grown in each of the last four quarters.
 
Group profits before tax were £1.5bn, with positive jaws driven by a 3% reduction in costs, excluding litigation and conduct, versus a 2% reduction in revenues.
 
Barclays UK produced a strong RoTE of 16.4%, excluding litigation and conduct - an improvement on an increased equity base compared to Q1 of 2018, which included a 12% increase in Business Banking income.
 
Barclays International also delivered a double digit RoTE of 10.6%, excluding litigation and conduct, though this was down from a very profitable comparable period last year.
 
Within Barclays International, our Consumer Cards & Payments business had another good quarter, with improved performance in our US franchise in particular, driving a RoTE of 15.4%.
 
Our Corporate and Investment Bank achieved a RoTE of 9.5%, compared to 13.2% in Q1 of 2018. From a revenue perspective, we had a weak quarter in investment banking fees.
 
Our Markets business outperformed US peer average for the sixth consecutive quarter, and like Q1 last year, generated a double-digit return on tangible equity.
 
Our total operating expenses in the first quarter were £3.3bn. Three years ago, we took a charge of just under £400m to allow us to better align variable compensation accruals with the firm's revenues.
 
What you see in the first quarter is Barclays using this discretion around variable compensation to manage our costs and deliver expected profitability.
 
A 9.6% RoTE, excluding litigation and conduct, in the first quarter of this year is a good step towards our objective of delivering a RoTE of greater than 9% in 2019 and greater than 10% in 2020."
 
James E Staley, Group Chief Executive Officer
 




Barclays Group results


 




for the three months ended


31.03.19


31.03.18


 




 


£m


£m


% Change




Total income


5,252


5,358


(2)




Credit impairment charges and other provisions


(448)


(288)


(56)




Net operating income


4,804


5,070


(5)




Operating expenses


(3,257)


(3,364)


3




Litigation and conduct


(61)


(1,961)


97




Total operating expenses


(3,318)


(5,325)


38




Other net (expenses)/ income


(3)


19


 




Profit/(loss) before tax


1,483


(236)


 




Tax charge1


(248)


(304)


18




Profit/(loss) after tax


1,235


(540)


 




Non-controlling interests


(17)


(53)


68




Other equity instrument holders1


(180)


(171)


(5)




Attributable profit/(loss)


1,038


(764)


 




 


 


 


 




Performance measures


 


 


 




Return on average tangible shareholders' equity1


9.2%


(6.5%)


 




Average tangible shareholders' equity (£bn)


45.2


44.2


 




Cost: income ratio


63%


99%


 




Loan loss rate (bps)


54


36


 




Basic earnings/(loss) per share1


6.1p


(4.2p)


 




  


 


 


 




Performance measures excluding litigation and conduct2


 


 


 




Profit before tax


1,544


1,725


(10)




Attributable profit


1,084


1,166


(7)




Return on average tangible shareholders' equity1


9.6%


11.0%


 




Cost: income ratio


62%


63%


 




Basic earnings per share1


6.3p


7.1p


 




 


 


 


 




 


As at 31.03.19


As at 31.12.18


 As at 31.03.18




Balance sheet and capital management3


£bn


£bn


£bn




Tangible net asset value per share


266p


262p


251p




Common equity tier 1 ratio


13.0%


13.2%


12.7%




Common equity tier 1 capital


41.4


41.1


40.2




Risk weighted assets


319.7


311.9


317.9




UK leverage ratio


4.9%


5.1%


4.8%




UK leverage exposure


1,065


999


1,031




Average UK leverage ratio


4.6%


4.5%


4.6%




Average UK leverage exposure


1,106


1,110


1,090




 


 


 


 




Funding and liquidity


 


 


 




Group liquidity pool (£bn)


232


227


207




Liquidity coverage ratio


160%


169%


147%




Loan: deposit ratio


80%


83%


84%




 


 


 


 




 




1


From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in reserves. The Q119 tax credit was £48m (Q118: £46m). This change does not impact earnings per share or return on average tangible shareholders' equity.




2


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




3


Capital, RWAs and leverage measures are calculated applying the transitional arrangements of the Capital Requirements Regulation (CRR). This includes IFRS 9 transitional arrangements.




4


The fully loaded CET1 ratio was 12.6%, with £40.3bn of CET1 capital and £319.6bn of RWAs, calculated without applying the transitional arrangements of the CRR.




 
Group Finance Director's Review
 
The Group return on tangible equity, excluding litigation and conduct, was 9.6% with earnings per share of 6.3p. Income decreased 2% and operating expenses were reduced by 3% resulting in positive jaws and an improved cost: income ratio of 62%.
 
Group performance
 




·


Profit before tax was £1,483m (Q118: loss of £236m). Excluding litigation and conduct, profit before tax was £1,544m (Q118: £1,725m), reflecting the challenging income environment for the CIB, and an increase in impairment due to the non-recurrence of a favourable US macroeconomic forecast update in Q118. The 6% appreciation of average USD against GBP positively impacted profits




·


Total income decreased 2% to £5,252m. Barclays UK income decreased 1% reflecting margin pressures partially offset by continued balance sheet growth. Barclays International income decreased 6%, as the impact of the challenging income environment for the CIB were partially offset by 6% growth in Consumer Cards and Payments




·


Credit impairment charges increased to £448m (Q118: £288m) primarily driven by the non-recurrence of a favourable US macroeconomic forecast update in Q118. There were no significant changes in the macroeconomic variables used in impairment modelling during the quarter. Delinquencies in unsecured lending remained stable, reflecting the continued prudent management of credit risk. The Barclays Group loan loss rate was 54bps (Q118: 36bps)




·


Operating expenses of £3,257m reduced by 3% driven by lower variable compensation accruals in CIB, reflecting reduced income, whilst investment to grow the business and improve future operating efficiency continued. The cost: income ratio, excluding litigation and conduct, reduced to 62% (Q118: 63%)




·


The effective tax rate was 16.7%, which reflected a change in accounting standards from 2019 requiring tax relief on payments made under Additional Tier 1 (AT1) instruments, which in prior periods was recognised in retained earnings but taken into account for RoTE and EPS calculations, to be recognised in the income statement




·


Attributable profit was £1,038m (Q118: loss of £764m). Excluding litigation and conduct, attributable profit was £1,084m (Q118: £1,166m), generating a RoTE of 9.6% (Q118: 11.0%) and EPS of 6.3p (Q118: 7.1p)




·


TNAV per share increased 4p in Q119 to 266p as 6.3p of EPS, excluding litigation and conduct, was partially offset by reserve movements, including the impact of changes in FX, the pension re-measurement and employee share awards




 
Barclays UK
 




·


RoTE excluding litigation and conduct was 16.4% (Q118: 15.7%) reflecting the continuing strength of the Barclays UK business




·


Total income decreased 1% to £1,777m as lower lending margins were partially offset by continuing mortgage and deposit growth




 


-


Personal Banking income decreased 1% to £964m, reflecting continuing mortgage margin pressure, partially offset by mortgage and deposit balance growth and improved liability margins




 


-


Barclaycard Consumer UK income decreased 7% to £490m reflecting the continued reduced risk appetite in light of economic uncertainty




 


-


Business Banking income increased 12% to £323m driven by strong deposit growth and the non-recurrence of a client remediation provision in Q118




 


-


Net interest margin decreased 2bps in Q119 to 3.18% driven by continuing pressure on mortgage margins and the mix effect from the focus on growing secured over unsecured lending




·


Credit impairment charges decreased 5% to £191m reflecting the continued reduced credit risk appetite and benign UK economic environment as reflected in the stable 30 and 90 day arrears rates in UK cards of 1.9% (Q118: 2.0%) and 0.9% (Q118: 0.9%) respectively




·


Operating expenses, excluding litigation and conduct, decreased 1% to £999m as continued investment to grow the business, including digitisation, was offset by the non-recurrence of Q118 ring-fencing set-up costs and cost efficiencies. The cost: income ratio, excluding litigation and conduct, was 56% (Q118: 56%)




·


RWAs increased to £76.6bn (December 2018: £75.2bn) including the recognition of property leases following IFRS 16 implementation and change in mix of the liquidity pool




 
Barclays International
 




·


Profit before tax, excluding litigation and conduct, decreased 20% to £1,137m resulting in a RoTE of 10.6% (Q118: 13.6%), reflecting reduced returns in the CIB of 9.5% (Q118: 13.2%) and Consumer, Cards and Payments of 15.4% (Q118: 15.7%)




·


The 6% appreciation of average USD against GBP positively impacted profits and income, and adversely impacted credit impairment charges and operating expenses




·


Total income decreased 6% to £3,570m




 


-


CIB income of £2,505m decreased 11% reflecting reduced client activity, lower volatility and a smaller banking fee pool across the industry1. Markets income decreased 6% to £1,369m, Banking fees income decreased 17% to £569m, and Corporate income decreased 13% to £567m




 


 


-


Within Markets, FICC income increased 4% to £902m driven by a strong performance in Rates. Equities income decreased 21% to £467m driven by equity derivatives which was impacted by reduced client activity and subdued volumes, compared to a strong Q118 that saw higher levels of volatility




 


 


-


Banking fees income decreased 17% to £569m reflecting the reduced fee pool across the industry and a strong Q118. Barclays share of the global fee pool has increased since FY181




 


 


-


Within Corporate, Corporate lending income reduced to £152m (Q118: £240m). Excluding mark-to-market movements on loan hedges, Corporate lending income was stable at c.£200m. Transaction banking income was stable at £415m (Q118: £414m)




 


-


Consumer, Cards and Payments income increased 6% to £1,065m reflecting growth in US cards partnership portfolio business and FX




·


Credit impairment charges increased to £245m (Q118: £93m)




 


-


CIB credit impairment charges increased to £52m (Q118: release of £159m) primarily due to the non-recurrence of a favourable US macroeconomic forecast update in Q118




 


-


Consumer, Cards and Payments credit impairment charges decreased 23% reflecting less pronounced seasonal effects. Credit metrics were stable, with US cards 30 and 90 day arrears of 2.6% (Q118: 2.6%) and 1.4% (Q118: 1.4%) respectively




·


Total operating expenses decreased 4% to £2,225m as variable compensation accruals were reduced in response to the income performance in the quarter




·


RWAs increased to £216.1bn (December 2018: £210.7bn), driven by increased CIB seasonal activity




 
Head Office
 




·


Loss before tax, excluding litigation and conduct, was £181m (Q118: £284m). Including litigation and conduct charges of £39m (Q118: £1,535m), loss before tax was £220m (Q118: £1,819m)




·


Total income was an expense of £95m (Q118: £238m) which included legacy capital instrument funding costs and hedge accounting expenses partially offset by the recognition of dividends on Barclays stake in Absa Group Limited. The reduction on prior year reflects lower net expenses from treasury operations




·


Operating expenses, excluding litigation and conduct, decreased to £52m (Q118: £59m)




·


RWAs increased to £27.0bn (December 2018: £26.0bn) driven by recognition of property leases following IFRS 16 implementation




 




1


Source: Dealogic.




 
Group capital and leverage
 




·


The CET1 ratio remained at the end-state target of c.13% having decreased to 13.0% in the quarter (December 2018: 13.2%), primarily due to an increase in RWAs of £7.8bn partially offset by a £0.3bn increase in CET1 capital




 


-


The increase in RWAs was principally due to seasonality in the CIB and the implementation of IFRS 16 within Barclays UK and Head Office




 


-


CET1 capital increased by £0.3bn to £41.4bn as underlying profit generation of £1.2bn, was partially offset by £0.5bn for dividends paid and foreseen and £0.3bn from share awards




·


The average UK leverage ratio increased to 4.6% (December 2018: 4.5%) primarily driven by the issuance of AT1 securities, and was flat year-on-year. The average UK leverage exposure was stable at £1,106bn (December 2018: £1,110bn). The UK leverage ratio decreased to 4.9% (December 2018: 5.1%) primarily driven by a seasonal increase in balances, partially offset by an increase in capital, including the issuance of AT1 securities




 
Group funding and liquidity
 




·


The liquidity pool increased to £232bn (December 2018: £227bn) reflecting the Group's prudent liquidity management approach, given the prevailing macroeconomic uncertainty, while continuing to support seasonal business activity. The liquidity coverage ratio (LCR) remained well above the 100% regulatory requirement at 160% (December 2018: 169%), equivalent to a surplus of £84bn (December 2018: £90bn). The LCR declined in the quarter reflecting the seasonal increase in business activity. The Group also continued to maintain surpluses to its internal liquidity requirements




·


Wholesale funding outstanding, excluding repurchase agreements, was £158bn (December 2018: £154bn). The Group issued £2.2bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments year-to-date from Barclays PLC (the Parent company). The Group is well advanced in its MREL issuance plans, with a Barclays PLC MREL ratio of 27.7% as at 31 March 2019 relative to an estimated requirement including requisite buffers of 29.9% by 1 January 2022




 
Other matters
 




·


The remaining PPI provision as at 31 March 2019 was £0.6bn (December 2018: £0.9bn) to cover claims through to the deadline of 29 August 2019




·


Following regulatory approval, Barclays intends to redeem its £3bn 14% Reserve Capital Instruments to be effected on 15 June 2019, which will result in an ongoing earnings benefit




 
Outlook
 




·


The Group continues to target 2019 and 2020 RoTE of >9% and >10% respectively. The Group cost guidance for 2019 remains £13.6-13.9bn. However, should the challenging income environment experienced in Q119 persist, management expect to reduce 2019 costs below £13.6bn




 
Tushar Morzaria, Group Finance Director
 
Quarterly Results Summary
 




Barclays Group


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q2171




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Net interest income


2,258


 


2,296


2,388


2,190


2,188


 


2,272


2,475


2,579




Net fee, commission and other income


2,994


 


2,777


2,741


3,386


3,170


 


2,750


2,698


2,479




Total income


5,252


 


5,073


5,129


5,576


5,358


 


5,022


5,173


5,058




Credit impairment charges and other provisions


(448)


 


(643)


(254)


(283)


(288)


 


(573)


(709)


(527)




Net operating income


4,804


 


4,430


4,875


5,293


5,070


 


4,449


4,464


4,531




Operating costs


(3,257)


 


(3,624)


(3,329)


(3,310)


(3,364)


 


(3,621)


(3,274)


(3,398)




UK bank levy


-


 


(269)


-


-


-


 


(365)


-


-




Operating expenses


(3,257)


 


(3,893)


(3,329)


(3,310)


(3,364)


 


(3,986)


(3,274)


(3,398)




Guaranteed Minimum Pensions (GMP) charge


-


 


(140)


-


-


-


 


-


-


-




Litigation and conduct


(61)


 


(60)


(105)


(81)


(1,961)


 


(383)


(81)


(715)




Total operating expenses


(3,318)


 


(4,093)


(3,434)


(3,391)


(5,325)


 


(4,369)


(3,355)


(4,113)




Other net (expenses)/income


(3)


 


37


20


(7)


19


 


13


(2)


241




Profit/(loss) before tax


1,483


 


374


1,461


1,895


(236)


 


93


1,107


659




Tax charge


(248)


 


(145)


(240)


(433)


(304)


 


(1,138)


(324)


(305)




Profit/(loss) after tax in respect of continuing operations


1,235


 


229


1,221


1,462


(540)


 


(1,045)


783


354




Loss after tax in respect of discontinued operation


-


 


-


-


-


-


 


-


-


(1,537)




 


 


 


 


 


 


 


 


 


 


 




Attributable to:


 


 


 


 


 


 


 


 


 


 




Ordinary equity holders of the parent


1,038


 


(76)


1,002


1,232


(764)


 


(1,294)


583


(1,401)




Other equity instrument holders


180


 


230


176


175


171


 


181


157


162




Non-controlling interests in respect of continuing operations


17


 


75


43


55


53


 


68


43


59




Non-controlling interests in respect of discontinued operation


-


 


-


-


-


-


 


-


-


(3)




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Total assets


1,193.5


 


1,133.3


1,170.8


1,149.6


1,142.2


 


1,133.2


1,149.3


1,135.3




Tangible net asset value per share


266p


 


262p


260p


259p


251p


 


276p


281p


284p




Risk weighted assets


319.7


 


311.9


316.2


319.3


317.9


 


313.0


324.3


327.4




Average UK leverage exposure


1,105.5


 


1,110.0


1,119.0


1,081.8


1,089.9


 


1,044.6


1,035.1


1,092.2




 


 


 


 


 


 


 


 


 


 


 




Performance measures


 


 


 


 


 


 


 


 


 


 




Return on average tangible shareholders' equity


9.2%


 


(0.1%)


9.4%


11.8%


(6.5%)


 


(10.3%)


5.1%


(11.0%)




Average tangible shareholders' equity (£bn)


45.2


 


44.3


44.6


43.5


44.2


 


48.1


48.9


49.3




Cost: income ratio


63%


 


81%


67%


61%


99%


 


87%


65%


81%




Loan loss rate (bps)2


54


 


77


30


35


36


 


56


66


49




Basic earnings/(loss) per share


6.1p


 


(0.1p)


6.1p


7.5p


(4.2p)


 


(7.3p)


3.7p


(8.0p)




 


 


 


 


 


 


 


 


 


 


 




Performance measures excluding litigation and conduct3


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit before tax


1,544


 


434


1,566


1,976


1,725


 


476


1,188


1,374




Attributable profit/(loss)


1,084


 


(14)


1,087


1,291


1,166


 


(943)


660


(698)




Return on average tangible shareholders' equity


9.6%


 


0.4%


10.2%


12.3%


11.0%


 


(7.4%)


5.7%


(5.3%)




Cost: income ratio


62%


 


79%


65%


59%


63%


 


79%


63%


67%




Basic earnings/(loss) per share


6.3p


 


0.3p


6.6p


7.8p


7.1p


 


(5.3p)


4.1p


(3.8p)




 




1


Results included Barclays Non-Core and the Africa Banking discontinued operation; refer to pages 36 to 37 for further detail.




2


Prior to Q118 comparatives calculated based on gross loans and advances at amortised cost before the balance sheet presentation change and IAS 39 impairment charge.




3


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




 
Quarterly Results by Business
 




Barclays UK


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Net interest income


1,469


 


1,513


1,529


1,493


1,493


 


1,540


1,501


1,534




Net fee, commission and other income


308


 


350


367


343


295


 


330


351


286




Total income


1,777


 


1,863


1,896


1,836


1,788


 


1,870


1,852


1,820




Credit impairment charges and other provisions


(191)


 


(296)


(115)


(214)


(201)


 


(184)


(201)


(220)




Net operating income


1,586


 


1,567


1,781


1,622


1,587


 


1,686


1,651


1,600




Operating costs


(999)


 


(1,114)


(988)


(968)


(1,005)


 


(1,117)


(980)


(974)




UK bank levy


-


 


(46)


-


-


-


 


(59)


-


-




Litigation and conduct


(3)


 


(15)


(54)


(3)


(411)


 


(53)


(11)


(699)




Total operating expenses


(1,002)


 


(1,175)


(1,042)


(971)


(1,416)


 


(1,229)


(991)


(1,673)




Other net income/(expenses)


1


 


(2)


1


5


(1)


 


(5)


1


(1)




Profit/(loss) before tax


585


 


390


740


656


170


 


452


661


(74)




Attributable profit/(loss)


422


 


232


500


464


(38)


 


245


423


(285)




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Loans and advances to customers at amortised cost


187.5


 


187.6


186.7


185.3


184.3


 


183.8


182.2


166.6




Total assets


253.1


 


249.7


252.0


245.9


235.2


 


237.4


230.4


203.4




Customer deposits at amortised cost


197.3


 


197.3


195.8


194.3


192.0


 


193.4


189.3


187.4




Loan: deposit ratio


96%


 


96%


96%


96%


96%


 


95%


97%


89%




Risk weighted assets


76.6


 


75.2


74.8


75.0


72.5


 


70.9


70.0


66.1




Period end allocated tangible equity


10.5


 


10.2


10.1


10.2


9.8


 


9.6


9.5


8.6




 


 


 


 


 


 


 


 


 


 


 




Performance measures


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


16.3%


 


9.6%


20.1%


18.8%


(1.1%)


 


10.7%


18.4%


(12.7%)




Average allocated tangible equity (£bn)


10.4


 


10.1


10.1


10.1


9.8


 


9.6


9.4


8.7




Cost: income ratio


56%


 


63%


55%


53%


79%


 


66%


54%


92%




Loan loss rate (bps)1


40


 


61


24


45


43


 


39


43


52




Net interest margin


3.18%


 


3.20%


3.22%


3.22%


3.27%


 


3.32%


3.28%


3.70%




 


 


 


 


 


 


 


 


 


 


 




Performance measures excluding litigation and conduct2


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit before tax


588


 


405


794


659


581


 


505


672


625




Attributable profit


424


 


244


548


465


373


 


282


431


406




Return on average allocated tangible equity


16.4%


 


10.1%


22.0%


18.8%


15.7%


 


12.3%


18.7%


19.1%




Cost: income ratio


56%


 


62%


52%


53%


56%


 


63%


53%


54%




 




1


Prior to Q118 comparatives calculated based on gross loans and advances at amortised cost before the balance sheet presentation change and IAS 39 impairment charge.




2


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




 




Analysis of Barclays UK


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Analysis of total income


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Personal Banking


964


 


998


1,021


1,015


972


 


1,116


1,022


1,033




Barclaycard Consumer UK


490


 


522


551


504


527


 


445


539


495




Business Banking


323


 


343


324


317


289


 


309


291


292




Total income


1,777


 


1,863


1,896


1,836


1,788


 


1,870


1,852


1,820




 


 


 


 


 


 


 


 


 


 


 




Analysis of credit impairment (charges)/releases and other provisions


 


 


 


 


 


 


 


 


 


 




Personal Banking


(52)


 


(44)


(8)


(49)


(72)


 


(56)


(57)


(60)




Barclaycard Consumer UK


(140)


 


(250)


(88)


(139)


(113)


 


(124)


(145)


(149)




Business Banking


1


 


(2)


(19)


(26)


(16)


 


(4)


1


(11)




Total credit impairment charges and other provisions


(191)


 


(296)


(115)


(214)


(201)


 


(184)


(201)


(220)




 


 


 


 


 


 


 


 


 


 


 




Analysis of loans and advances to customers at amortised cost


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Personal Banking


145.9


 


146.0


145.4


143.6


142.1


 


141.3


140.4


138.6




Barclaycard Consumer UK


15.0


 


15.3


15.3


15.2


15.2


 


16.4


16.3


16.2




Business Banking


26.6


 


26.3


26.0


26.5


27.0


 


26.1


25.5


11.8




Total loans and advances to customers at amortised cost


187.5


 


187.6


186.7


185.3


184.3


 


183.8


182.2


166.6




 


 


 


 


 


 


 


 


 


 


 




Analysis of customer deposits at amortised cost


 


 


 


 


 


 


 


 


 


 




Personal Banking


154.1


 


154.0


153.4


152.9


151.9


 


153.1


152.1


151.1




Barclaycard Consumer UK


-


 


-


-


-


-


 


-


-


-




Business Banking


43.2


 


43.3


42.4


41.4


40.1


 


40.3


37.2


36.3




Total customer deposits at amortised cost


197.3


 


197.3


195.8


194.3


192.0


 


193.4


189.3


187.4




 




Barclays International


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Net interest income


900


 


984


965


853


1,013


 


987


1,148


1,060




Net trading income


1,144


 


837


1,103


1,094


1,416


 


935


815


1,039




Net fee, commission and other income


1,526


 


1,400


1,222


1,760


1,379


 


1,397


1,352


1,511




Total income


3,570


 


3,221


3,290


3,707


3,808


 


3,319


3,315


3,610




Credit impairment charges and other provisions


(245)


 


(354)


(143)


(68)


(93)


 


(386)


(495)


(279)




Net operating income


3,325


 


2,867


3,147


3,639


3,715


 


2,933


2,820


3,331




Operating costs


(2,206)


 


(2,441)


(2,277)


(2,306)


(2,300)


 


(2,428)


(2,182)


(2,276)




UK bank levy


-


 


(210)


-


-


-


 


(265)


-


-




Litigation and conduct


(19)


 


(33)


(32)


(47)


(15)


 


(255)


(5)


4




Total operating expenses


(2,225)


 


(2,684)


(2,309)


(2,353)


(2,315)


 


(2,948)


(2,187)


(2,272)




Other net income


18


 


32


12


11


13


 


21


19


202




Profit before tax


1,118


 


215


850


1,297


1,413


 


6


652


1,261




Attributable profit/(loss)


788


 


(72)


650


890


973


 


(1,168)


359


819




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Loans and advances at amortised cost


130.9


 


127.2


132.4


125.5


117.5


 


126.8


134.4


135.2




Trading portfolio assets


117.2


 


104.0


124.6


116.5


114.9


 


113.0


91.2


83.3




Derivative financial instrument assets


217.3


 


222.1


214.8


228.2


214.1


 


236.2


242.8


108.4




Derivative financial instrument liabilities


213.5


 


219.6


213.7


224.9


210.8


 


237.8


242.9


116.8




Financial assets at fair value through the income statement


153.5


 


144.7


147.8


141.2


150.6


 


104.1


103.7


94.1




Total assets


919.0


 


862.1


900.2


886.5


866.6


 


856.1


867.1


681.6




Deposits at amortised cost


215.5


 


197.2


200.3


191.0


167.2


 


187.3


191.9


192.0




Loan: deposit ratio


61%


 


65%


66%


66%


70%


 


68%


70%


70%




Risk weighted assets


216.1


 


210.7


214.6


218.0


214.2


 


210.3


218.2


212.2




Period end allocated tangible equity


30.6


 


29.9


30.2


30.5


30.0


 


27.5


28.0


26.8




 


 


 


 


 


 


 


 


 


 


 




Performance measures


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


10.4%


 


(0.3%)


8.8%


11.8%


13.4%


 


(15.9%)


5.4%


12.4%




Average allocated tangible equity (£bn)


30.5


 


31.3


31.1


31.4


30.1


 


28.5


28.9


27.4




Cost: income ratio


62%


 


83%


70%


63%


61%


 


89%


66%


63%




Loan loss rate (bps)1


73


 


107


41


22


31


 


76


88


54




Net interest margin


3.99%


 


3.98%


3.87%


4.03%


4.57%


 


4.31%


4.21%


4.07%




 


 


 


 


 


 


 


 


 


 


 




Performance measures excluding litigation and conduct2


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit before tax


1,137


 


248


882


1,344


1,428


 


261


657


1,257




Attributable profit/(loss)


804


 


(38)


676


924


985


 


(918)


363


816




Return on average allocated tangible equity


10.6%


 


0.2%


9.2%


12.2%


13.6%


 


(12.4%)


5.5%


12.3%




Cost: income ratio


62%


 


82%


69%


62%


60%


 


81%


66%


63%




 




1


Prior to Q118 comparatives calculated based on gross loans and advances at amortised cost before the balance sheet presentation change and IAS 39 impairment charge.




2


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




 




Analysis of Barclays International


 


 




 


 


 


 


 


 


 


 


 


 


 




Corporate and Investment Bank


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




FICC


902


 


570


688


736


869


 


607


627


752




Equities


467


 


375


471


601


590


 


362


350


455




Markets


1,369


 


945


1,159


1,337


1,459


 


969


977


1,207




Banking fees


569


 


625


519


704


683


 


605


607


674




Corporate lending


152


 


243


197


198


240


 


269


277


278




Transaction banking


415


 


412


416


385


414


 


408


419


404




Corporate


567


 


655


613


583


654


 


677


696


682




Other1


-


 


(74)


(56)


(44)


3


 


1


-


1




Total income


2,505


 


2,151


2,235


2,580


2,799


 


2,252


2,280


2,564




Credit impairment (charges)/releases and other
provisions


(52)


 


(35)


3


23


159


 


(127)


(36)


1




Net operating income


2,453


 


2,116


2,238


2,603


2,958


 


2,125


2,244


2,565




Operating expenses


(1,619)


 


(2,023)


(1,712)


(1,773)


(1,773)


 


(2,129)


(1,656)


(1,760)




Litigation and conduct


(19)


 


(23)


(32)


-


(13)


 


(255)


(5)


4




Total operating expenses


(1,638)


 


(2,046)


(1,744)


(1,773)


(1,786)


 


(2,384)


(1,661)


(1,756)




Other net income


12


 


15


4


5


3


 


7


10


116




Profit/(loss) before tax


827


 


85


498


835


1,175


 


(252)


593


925




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Loans and advances at amortised cost


90.6


 


86.4


93.3


87.8


81.3


 


88.2


95.4


96.7




Deposits at amortised cost


151.4


 


136.3


137.6


130.3


107.6


 


128.0


133.4


134.1




Risk weighted assets


176.6


 


170.9


175.9


180.4


181.3


 


176.2


185.2


178.9




 


 


 


 


 


 


 


 


 


 


 




Performance measures


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


9.3%


 


(1.3%)


6.6%


9.1%


13.0%


 


(20.2%)


5.9%


11.1%




Average allocated tangible equity (£bn)


25.1


 


26.0


25.9


26.4


25.6


 


24.3


24.8


23.3




 


 


 


 


 


 


 


 


 


 


 




Performance measures excluding litigation and conduct2


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit before tax


846


 


108


530


835


1,188


 


3


598


921




Return on average allocated tangible equity


9.5%


 


(0.9%)


7.0%


9.1%


13.2%


 


(16.1%)


6.0%


11.1%




 




1


From Q119, treasury items previously included in Other have been allocated to businesses.




2


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




 




Analysis of Barclays International


 


 




 


 


 


 


 


 


 


 


 


 


 




Consumer, Cards and Payments


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Total income


1,065


 


1,070


1,055


1,127


1,009


 


1,067


1,035


1,046




Credit impairment charges and other provisions


(193)


 


(319)


(146)


(91)


(252)


 


(259)


(459)


(280)




Net operating income


872


 


751


909


1,036


757


 


808


576


766




Operating expenses


(587)


 


(628)


(565)


(533)


(527)


 


(564)


(526)


(516)




Litigation and conduct


-


 


(10)


-


(47)


(2)


 


-


-


-




Total operating expenses


(587)


 


(638)


(565)


(580)


(529)


 


(564)


(526)


(516)




Other net income


6


 


17


8


6


10


 


14


9


86




Profit before tax


291


 


130


352


462


238


 


258


59


336




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Loans and advances at amortised cost


40.3


 


40.8


39.1


37.7


36.2


 


38.6


39.0


38.5




Deposits at amortised cost


64.1


 


60.9


62.7


60.7


59.6


 


59.3


58.5


57.9




Risk weighted assets


39.5


 


39.8


38.7


37.6


32.9


 


34.1


33.0


33.3




 


 


 


 


 


 


 


 


 


 


 




Performance measures


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


15.4%


 


4.8%


19.8%


26.2%


15.6%


 


8.9%


2.2%


19.4%




Average allocated tangible equity (£bn)


5.4


 


5.3


5.2


5.0


4.5


 


4.2


4.2


4.1




 


 


 


 


 


 


 


 


 


 


 




Performance measures excluding litigation and conduct1


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit before tax


291


 


140


352


509


240


 


258


59


336




Return on average allocated tangible equity


15.4%


 


5.4%


19.9%


28.9%


15.7%


 


9.0%


2.2%


19.4%




 




1


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




 




Head Office


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Net interest income


(111)


 


(201)


(106)


(156)


(318)


 


(254)


(174)


108




Net fee, commission and other income


16


 


190


49


189


80


 


87


180


(24)




Total income


(95)


 


(11)


(57)


33


(238)


 


(167)


6


84




Credit impairment (charges)/releases and other provisions


(12)


 


7


4


(1)


6


 


(3)


(13)


(1)




Net operating (expenses)/income


(107)


 


(4)


(53)


32


(232)


 


(170)


(7)


83




Operating costs


(52)


 


(69)


(64)


(36)


(59)


 


(76)


(112)


(40)




UK bank levy


-


 


(13)


-


-


-


 


(41)


-


-




GMP charge


-


 


(140)


-


-


-


 


-


-


-




Litigation and conduct


(39)


 


(12)


(19)


(31)


(1,535)


 


(75)


(65)


(1)




Total operating expenses


(91)


 


(234)


(83)


(67)


(1,594)


 


(192)


(177)


(41)




Other net (expenses)/income


(22)


 


7


7


(23)


7


 


(3)


(22)


(164)




Loss before tax


(220)


 


(231)


(129)


(58)


(1,819)


 


(365)


(206)


(122)




Attributable loss


(172)


 


(236)


(148)


(122)


(1,699)


 


(371)


(199)


(175)




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Total assets


21.4


 


21.5


18.6


17.2


40.4


 


39.7


51.7


17.3




Risk weighted assets


27.0


 


26.0


26.8


26.3


31.2


 


31.8


36.1


26.2




Period end allocated tangible equity


4.5


 


4.9


4.2


3.6


3.0


 


10.0


10.4


9.0




 


 


 


 


 


 


 


 


 


 


 




Performance measures


 


 


 


 


 


 


 


 


 


 




Average allocated tangible equity (£bn)


4.3


 


2.9


3.4


2.0


4.3


 


10.0


10.5


8.8




 


 


 


 


 


 


 


 


 


 


 




Performance measures excluding litigation and conduct1


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Loss before tax


(181)


 


(219)


(110)


(27)


(284)


 


(290)


(141)


(121)




Attributable loss


(144)


 


(220)


(137)


(98)


(192)


 


(307)


(134)


(174)




 




1


Refer to pages 29 to 35 for further information and calculations of performance measures excluding litigation and conduct.




 
Performance Management
 




Margins and balances


 


 


 


 


 


 




 


Three months ended 31.03.19


Three months ended 31.03.181




 


Net interest income


Average customer assets


Net interest margin


Net interest income


Average customer assets


Net interest margin




 


£m


£m


%


£m


£m


%




Barclays UK


1,469


187,570


3.18


1,493


185,351


3.27




Barclays International2


967


98,313


3.99


1,065


94,530


4.57




Total Barclays UK and Barclays International


2,436


285,883


3.46


2,558


279,881


3.71




Other3


(178)


 


 


(370)


 


 




Total Barclays Group4


2,258


 


 


2,188


 


 




 




1


The Group's treasury results are reported directly within Barclays UK and Barclays International following ring-fencing, resulting in gains and losses made on certain activities being recognised as Other income. These amounts had previously been included in Net interest income and the Net interest margin through transfer pricing.




2


Barclays International margins include interest earning lending balances within the investment banking business.




3


Other includes Head Office and investment banking businesses not included in Barclays International margins.




4


Group Net interest income includes gross structural hedge contributions of £0.4bn (Q118: £0.4bn).




 




Quarterly analysis for Barclays UK and Barclays International


Net interest income


Average customer assets


Net interest margin




Three months ended 31.12.18


£m


£m


%




Barclays UK


1,513


187,813


3.20




Barclays International1


994


99,137


3.98




Total Barclays UK and Barclays International


2,507


286,950


3.47




 


 


 


 




Three months ended 30.09.18


 


 


 




Barclays UK


1,529


188,239


3.22




Barclays International1


945


96,785


3.87




Total Barclays UK and Barclays International


2,474


285,024


3.44




 


 


 


 




Three months ended 30.06.18


 


 


 




Barclays UK


1,493


186,053


3.22




Barclays International1


962


95,728


4.03




Total Barclays UK and Barclays International


2,455


281,781


3.49




 




1


Barclays International margins include interest earning lending balances within the investment banking business.




 
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 March 2019. 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 March 2019. Barclays does not hold any material purchased or originated credit impaired assets as at period-end.
 




 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 




 


Gross exposure


 


Impairment allowance


Net exposure




 


Stage 1


Stage 2


Stage 3


Total


 


Stage 1


Stage 2


Stage 3


Total




As at 31.03.19


£m


£m


£m


£m


 


£m


£m


£m


£m


£m




Barclays UK


134,661


25,504


2,886


163,051


 


180


1,377


1,069


2,626


160,425




Barclays International


26,099


4,724


1,823


32,646


 


309


898


1,294


2,501


30,145




Head Office


6,064


605


872


7,541


 


8


46


297


351


7,190




Total Barclays Group retail


166,824


30,833


5,581


203,238


 


497


2,321


2,660


5,478


197,760




Barclays UK


24,137


3,937


1,329


29,403


 


17


55


114


186


29,217




Barclays International


91,215


8,800


1,612


101,627


 


135


259


446


840


100,787




Head Office


2,922


-


38


2,960


 


1


-


38


39


2,921




Total Barclays Group wholesale


118,274


12,737


2,979


133,990


 


153


314


598


1,065


132,925




Total loans and advances at amortised cost


285,098


43,570


8,560


337,228


 


650


2,635


3,258


6,543


330,685




Off-balance sheet loan commitments and financial guarantee contracts1


312,363


22,891


512


335,766


 


104


151


24


279


335,487




Total2


597,461


66,461


9,072


672,994


 


754


2,786


3,282


6,822


666,172




 


 


 


 


 


 


 


 


 


 


 




 


As at 31.03.19


 


Three months ended 31.03.19


 




 


Coverage ratio


 


Loan impairment charge and loan loss rate3


 




 


Stage 1


Stage 2


Stage 3


Total


 


Loan impairment charge


Loan loss rate


 




 


%


%


%


%


 


£m


bps


 




Barclays UK


0.1


5.4


37.0


1.6


 


195


49


 




Barclays International


1.2


19.0


71.0


7.7


 


199


247


 




Head Office


0.1


7.6


34.1


4.7


 


12


65


 




Total Barclays Group retail


0.3


7.5


47.7


2.7


 


406


81


 




Barclays UK


0.1


1.4


8.6


0.6


 


(6)


-


 




Barclays International


0.1


2.9


27.7


0.8


 


33


13


 




Head Office


-


-


100.0


1.3


 


-


-


 




Total Barclays Group wholesale


0.1


2.5


20.1


0.8


 


27


8


 




Total loans and advances at amortised cost


0.2


6.0


38.1


1.9


 


433


52


 




Off-balance sheet loan commitments and financial guarantee contracts1


-


0.7


4.7


0.1


 


 


13


 


 


 




Other financial assets subject to impairment


 


 


 


 


 


 


2


 


 


 




Total


0.1


4.2


36.2


1.0


 


 


448


 


 


 




 




1


Excludes loan commitments and financial guarantees of £20.3bn carried at fair value.




2


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 £170.5bn and impairment allowance of £16m. This comprises £13m Expected Credit Losses (ECL) on £170.0bn stage 1 assets and £3m on £0.5bn stage 2 fair value through other comprehensive income assets.




3


Q119 loan impairment charge represents three months of impairment charge, annualised to calculate the loan loss rate. The loan loss rate for Q119 is 54bps after applying the total impairment charge of £448m.




 




 


Gross exposure


 


Impairment allowance


Net exposure




 


Stage 1


Stage 2


Stage 3


Total


 


Stage 1


Stage 2


Stage 3


Total




As at 31.12.18


£m


£m


£m


£m


 


£m


£m


£m


£m


£m




Barclays UK


134,911


25,279


3,040


163,230


 


183


1,389


1,152


2,724


160,506




Barclays International


26,714


4,634


1,830


33,178


 


352


965


1,315


2,632


30,546




Head Office


6,510


636


938


8,084


 


9


47


306


362


7,722




Total Barclays Group retail


168,135


30,549


5,808


204,492


 


544


2,401


2,773


5,718


198,774




Barclays UK


22,824


4,144


1,272


28,240


 


16


70


117


203


28,037




Barclays International


87,344


8,754


1,382


97,480


 


128


244


439


811


96,669




Head Office


2,923


-


41


2,964


 


-


-


38


38


2,926




Total Barclays Group wholesale


113,091


12,898


2,695


128,684


 


144


314


594


1,052


127,632




Total loans and advances at amortised cost


281,226


43,447


8,503


333,176


 


688


2,715


3,367


6,770


326,406




Off-balance sheet loan commitments and financial guarantee contracts1


309,989


22,126


684


332,799


 


99


150


22


271


332,528




Total2


591,215


65,573


9,187


665,975


 


787


2,865


3,389


7,041


658,934




 


 


 


 


 


 


 


 


 


 


 




 


As at 31.12.18


 


Year ended 31.12.18


 




 


Coverage ratio


 


Loan impairment charge and loan loss rate


 




 


Stage 1


Stage 2


Stage 3


Total


 


Loan impairment charge


Loan loss rate


 




 


%


%


%


%


 


 


£m


 


bps


 




Barclays UK


0.1


5.5


37.9


1.7


 


 


830


 


51


 




Barclays International


1.3


20.8


71.9


7.9


 


 


844


 


254


 




Head Office


0.1


7.4


32.6


4.5


 


 


15


 


19


 




Total Barclays Group retail


0.3


7.9


47.7


2.8


 


 


1,689


 


83


 




Barclays UK


0.1


1.7


9.2


0.7


 


 


74


 


26


 




Barclays International


0.1


2.8


31.8


0.8


 


 


(142)


 


-


 




Head Office


-


-


92.7


1.3


 


 


(31)


 


-


 




Total Barclays Group wholesale


0.1


2.4


22.0


0.8


 


 


(99)


 


-


 




Total loans and advances at amortised cost


0.2


6.2


39.6


2.0


 


 


1,590


 


48


 




Off-balance sheet loan commitments and financial guarantee contracts1


-


0.7


3.2


0.1


 


 


(125)


 


 


 




Other financial assets subject to impairment


 


 


 


 


 


 


3


 


 


 




Total


0.1


4.4


36.9


1.1


 


 


1,468


 


 


 




 




1


Excludes loan commitments and financial guarantees of £11.7bn carried at fair value.




2


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 £129.9bn and impairment allowance of £12m. This comprises £10m ECL on £129.3bn stage 1 assets and £2m on £0.6bn stage 2 fair value through other comprehensive income assets.




 
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 31.03.19


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


129,625


15,959


1,694


809


18,462


2,367


150,454




Credit cards, unsecured loans and other retail lending


45,138


11,243


591


429


12,263


3,645


61,046




Corporate loans


110,335


11,916


511


418


12,845


2,548


125,728




Total


285,098


39,118


2,796


1,656


43,570


8,560


337,228




 


 


 


 


 


 


 


 




Impairment allowance


 


 


 


 


 


 


 




Home loans


32


54


15


15


84


339


455




Credit cards, unsecured loans and other retail lending


478


1,821


174


226


2,221


2,400


5,099




Corporate loans


140


304


20


6


330


519


989




Total


650


2,179


209


247


2,635


3,258


6,543




 


 


 


 


 


 


 


 




Net exposure


 


 


 


 


 


 


 




Home loans


129,593


15,905


1,679


794


18,378


2,028


149,999




Credit cards, unsecured loans and other retail lending


44,660


9,422


417


203


10,042


1,245


55,947




Corporate loans


110,195


11,612


491


412


12,515


2,029


124,739




Total


284,448


36,939


2,587


1,409


40,935


5,302


330,685




 


 


 


 


 


 


 


 




Coverage ratio


%


%


%


%


%


%


%




Home loans


-


0.3


0.9


1.9


0.5


14.3


0.3




Credit cards, unsecured loans and other retail lending


1.1


16.2


29.4


52.7


18.1


65.8


8.4




Corporate loans


0.1


2.6


3.9


1.4


2.6


20.4


0.8




Total


0.2


5.6


7.5


14.9


6.0


38.1


1.9




 


 


 


 


 


 


 


 




As at 31.12.18


 


 


 


 


 


 


 




Gross exposure


£m


£m


£m


£m


£m


£m


£m




Home loans


130,066


15,672


1,672


862


18,206


2,476


150,748




Credit cards, unsecured loans and other retail lending


45,785


11,262


530


437


12,229


3,760


61,774




Corporate loans


105,375


12,177


360


475


13,012


2,267


120,654




Total


281,226


39,111


2,562


1,774


43,447


8,503


333,176




 


 


 


 


 


 


 


 




Impairment allowance


 


 


 


 


 


 


 




Home loans


31


56


13


13


82


351


464




Credit cards, unsecured loans and other retail lending


528


1,895


169


240


2,304


2,511


5,343




Corporate loans


129


300


16


13


329


505


963




Total


688


2,251


198


266


2,715


3,367


6,770




 


 


 


 


 


 


 


 




Net exposure


 


 


 


 


 


 


 




Home loans


130,035


15,616


1,659


849


18,124


2,125


150,284




Credit cards, unsecured loans and other retail lending


45,257


9,367


361


197


9,925


1,249


56,431




Corporate loans


105,246


11,877


344


462


12,683


1,762


119,691




Total


280,538


36,860


2,364


1,508


40,732


5,136


326,406




 


 


 


 


 


 


 


 




Coverage ratio


%


%


%


%


%


%


%




Home loans


-


0.4


0.8


1.5


0.5


14.2


0.3




Credit cards, unsecured loans and other retail lending


1.2


16.8


31.9


54.9


18.8


66.8


8.6




Corporate loans


0.1


2.5


4.4


2.7


2.5


22.3


0.8




Total


0.2


5.8


7.7


15.0


6.2


39.6


2.0




 
Treasury and Capital Risk
 
Capital
 
Barclays CET1 regulatory requirement is 11.7% 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 0.5% Countercyclical Capital Buffer (CCyB).
 
The Barclays CCyB is based on the buffer rate applicable for each jurisdiction in which Barclays have exposures. On 28 November 2018, the Financial Policy Committee set the CCyB rate for UK exposures at 1%. The buffer rates set by other national authorities for our non-UK exposures are not currently material. Overall, this results in a 0.5% CCyB for Barclays for Q119.
 
Barclays Pillar 2A requirement as per the PRA's Individual Capital Requirement for 2019 is 4.7%, of which at least 56.25% needs to be met in CET1 form, equating to approximately 2.6% of RWAs. Certain elements of the Pillar 2A requirement are a fixed quantum whilst others are a proportion of RWAs and are based on a point in time assessment. The Pillar 2A requirement is subject to at least annual review.
 




Capital ratios 1,2,3


 


 


 




 


As at 31.03.19


As at 31.12.18




CET1


 


13.0%


13.2%




Tier 1 (T1)


 


17.1%


17.0%




Total regulatory capital


 


20.8%


20.7%




  


 


 


 




Capital resources


 


£bn


£bn




Total equity excluding non-controlling interests per the balance sheet


 


64.7


62.6




Less: other equity instruments (recognised as AT1 capital)


 


(11.1)


(9.6)




Adjustment to retained earnings for foreseeable dividends


 


(1.0)


(0.7)




 


 


 


 




Other regulatory adjustments and deductions


 


 


 




Additional value adjustments (PVA)


 


(1.7)


(1.7)




Goodwill and intangible assets


 


(7.9)


(8.0)




Deferred tax assets that rely on future profitability excluding temporary differences


 


(0.4)


(0.5)




Fair value reserves related to gains or losses on cash flow hedges


 


(1.0)


(0.7)




Gains or losses on liabilities at fair value resulting from own credit


 


(0.2)


(0.1)




Defined benefit pension fund assets


 


(0.9)


(1.3)




Direct and indirect holdings by an institution of own CET1 instruments


 


(0.1)


(0.1)




Adjustment under IFRS 9 transitional arrangements


 


1.2


1.3




CET1 capital


 


41.4


41.1




  


 


 


 




AT1 capital


 


 


 




Capital instruments and related share premium accounts


 


11.1


9.6




Qualifying AT1 capital (including minority interests) issued by subsidiaries


 


2.3


2.4




Other regulatory adjustments and deductions


 


(0.1)


(0.1)




AT1 capital


 


13.3


11.9




 


 


 


 




T1 capital


 


54.7


53.0




  


 


 


 




T2 capital


 


 


 




Capital instruments and related share premium accounts


 


6.5


6.6




Qualifying T2 capital (including minority interests) issued by subsidiaries


 


5.5


5.3




Credit risk adjustments (excess of impairment over expected losses)


 


0.1


-




Other regulatory adjustments and deductions


 


(0.3)


(0.3)




Total regulatory capital


 


66.6


64.6




 


 


 


 




Total RWAs


 


319.7


311.9




 




1


CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR. This includes IFRS 9 transitional arrangements and the grandfathering of CRR non-compliant capital instruments.




2


The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC additional tier 1 (AT1) securities, was 12.6%, with £40.3bn of CET1 capital and £319.6bn of RWAs calculated without applying the transitional arrangements of the CRR.




3


The Barclays PLC CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays Bank PLC T2 Contingent Capital Notes, was 13.0%. For this calculation CET1 capital and RWAs are calculated applying the transitional arrangements under the CRR, including the IFRS 9 transitional arrangements. The benefit of the Financial Services Authority 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




 


31.03.19




 


£bn




Opening CET1 capital


 


41.1




 


 


 




Profit for the period attributable to equity holders


 


1.2




Dividends paid and foreseen


 


(0.5)




Increase in retained regulatory capital generated from earnings


 


0.8




 


 


 




Net impact of share schemes


 


(0.3)




Fair value through other comprehensive income reserve


 


0.1




Currency translation reserve


 


(0.4)




Decrease in other qualifying reserves


 


(0.5)




 


 


 




Pension remeasurements within reserves


 


(0.4)




Defined benefit pension fund asset deduction


 


0.4




Net impact of pensions


 


-




 


 


 




Goodwill and intangible assets


 


0.1




Deferred tax assets that rely on future profitability excluding those arising from temporary differences


 


0.1




Adjustment under IFRS 9 transitional arrangements1


 


(0.1)




Increase in regulatory capital due to adjustments and deductions


 


0.1




 


 


 




Closing CET1 capital


 


41.4




 


 


 




 




1


The IFRS 9 transitional add back decreased £0.1bn primarily due to the change in the phasing of transitional relief from 95% in 2018 to 85% in 2019.




 




Risk weighted assets (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 31.03.19


£bn


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


 


£bn


£bn




Barclays UK


3.8


60.7


 


0.2


-


-


-


 


0.1


-


 


11.8


76.6




Barclays International


56.2


68.5


 


10.3


15.9


0.1


4.1


 


16.5


15.6


 


28.9


216.1




Head Office


5.2


5.8


 


-


-


-


-


 


-


-


 


16.0


27.0




Barclays Group


65.2


135.0


 


10.5


15.9


0.1


4.1


 


16.6


15.6


 


56.7


319.7




 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 




As at 31.12.18


 


 


 


 


 


 


 


 


 


 


 


 


 




Barclays UK


3.3


59.7


 


0.2


-


-


0.1


 


0.1


-


 


11.8


75.2




Barclays International


55.6


67.0


 


9.9


15.0


0.2


3.3


 


13.9


16.8


 


29.0


210.7




Head Office


4.3


5.8


 


-


-


-


-


 


-


-


 


15.9


26.0




Barclays Group


63.2


132.5


 


10.1


15.0


0.2


3.4


 


14.0


16.8


 


56.7


311.9




 




Movement analysis of RWAs




 


Credit risk


Counterparty credit risk


Market risk


Operational risk


Total RWAs




As at 31.03.19


£bn


£bn


£bn


£bn


£bn




Opening RWAs


195.6


28.8


30.8


56.7


311.9




Book size


4.2


1.4


-


-


5.6




Acquisitions and disposals


-


-


-


-


-




Book quality


0.6


(0.1)


-


-


0.5




Model updates


-


-


-


-


-




Methodology and policy


1.6


0.5


1.4


-


3.5




Foreign exchange movements1


(1.8)


-


-


-


(1.8)




Closing RWAs


200.2


30.6


32.2


56.7


319.7




 




1


Foreign exchange movements does not include foreign exchange for counterparty credit risk or market risk.




 
RWAs increased £7.8bn to £319.7bn:
 




·


Book size increased RWAs £5.6bn primarily due to increased CIB seasonal activity




·


Methodology and policy increased RWAs £3.5bn reflecting the implementation of IFRS 16 in credit risk RWAs




·


Foreign exchange movements decreased for credit risk RWAs by £1.8bn primarily due to the depreciation of period end USD against GBP




 
Leverage ratio and exposures
 
Barclays is subject to a leverage ratio requirement of 4.0% as at 31 March 2019. 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 (CCLB) of 0.2%. 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 and CCLB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £5.8bn and the 0.2% CCLB was £2.2bn.
 
Barclays 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. Barclays is also required to disclose a UK leverage ratio based on capital and exposure on the last day of the quarter. Both approaches exclude qualifying claims on central banks from the leverage exposures.
 




 


As at 31.03.19


As at 31.12.18




Leverage ratios1,2


£bn


£bn




UK leverage ratio


4.9%


5.1%




 


 


 




CET1 capital


41.4


 41.1




AT1 capital


11.0


 9.5




T1 capital3


52.4


 50.6




 


 


 




UK leverage exposure


1,065


999




 


 


 




Average UK leverage ratio


4.6%


4.5%




Average T1 capital3


51.2


 50.5




Average UK leverage exposure


1,106


 1,110




 


 


 




UK leverage exposure


 


 




Accounting assets


 


 




Derivative financial instruments


218


223




Derivative cash collateral


53


48




Securities financing transactions (SFTs)


135


121




Loans and advances and other assets


788


741




Total IFRS assets


1,194


1,133




 


 


 




Regulatory consolidation adjustments


(2)


(2)




 


 


 




Derivatives adjustments


 


 




Derivatives netting


(198)


(202)




Adjustments to cash collateral


(43)


(42)




Net written credit protection


16


19




Potential future exposure (PFE) on derivatives


125


123




Total derivatives adjustments


(100)


(102)




 


 


 




SFTs adjustments


17


17




 


 


 




Regulatory deductions and other adjustments


(11)


(11)




 


 


 




Weighted off-balance sheet commitments


108


108




 


 


 




Qualifying central bank claims


(141)


(144)




 


 


 




UK leverage exposure2


1,065


999




 




1


The fully loaded UK leverage ratio was 4.8%, with £51.3bn of T1 capital and £1,064bn of leverage exposure calculated without applying the transitional arrangements of the CRR.




2


Capital and leverage measures are calculated applying the transitional arrangements of the CRR.




3


The T1 capital is calculated in line with the PRA Handbook, which excludes grandfathered AT1 instruments allowed under the CRR.




 
The UK leverage ratio decreased to 4.9% (December 2018: 5.1%) driven by a seasonal increase in UK leverage exposure of £66bn to £1,065bn (December 2018: £999bn), partially offset by an increase in T1 capital primarily due to the issuance of $2bn AT1 securities. Leverage exposure movements included a seasonal increase in settlement balances, securities financing transactions (SFTs) and trading portfolio assets.
 
The average UK leverage ratio increased to 4.6% (December 2018: 4.5%) driven by £0.7bn increase in T1 capital primarily driven by the issuance of $2bn AT1 securities. The average UK leverage exposure was stable at £1,106bn (December 2018: £1,110bn).
 
The difference between the average UK leverage ratio and the UK leverage ratio was primarily driven by the issuance of AT1 securities in March 2019 and lower SFT exposures at quarter end.
 
Barclays is required to disclose a CRR leverage ratio. This is included in the additional Barclays regulatory disclosures, prepared in accordance with European Banking Authority (EBA) guidelines on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (see Barclays PLC Pillar 3 Report Q1 2019), due to be published by 25 April 2019, available at home.barclays/investor-relations/reports-and-events/latest-financial-results.
 
Minimum requirement for own funds and eligible liabilities (MREL)
 
Under the Bank of England's statement of policy on MREL, the Bank of England will set MREL for UK Global Systemically Important Banks (G-SIBs) as necessary to implement the total loss-absorbing capacity (TLAC) standard.
 
MREL is subject to phased implementation from 1 January 2019 and will be fully implemented by 1 January 2022, at which time G-SIBs with resolution entities incorporated in the UK, including Barclays, will be required to meet the higher of: (i) two times the sum of its Pillar 1 and Pillar 2A requirements or; (ii) the higher of two times its leverage ratio requirement or 6.75% of leverage exposures. However, the PRA will review the MREL calibration by the end of 2020, including assessing the proposal for Pillar 2A recapitalisation which may drive a different 1 January 2022 MREL than currently proposed. In addition, it is proposed that CET1 capital cannot be counted towards both MREL and the capital buffers, meaning that the buffers will effectively be applied above both the Pillar 1 and Pillar 2A requirements relating to own funds and MREL.
 
Barclays indicative MREL is currently expected to be 29.9% of RWAs from 1 January 2022 comprising:
 




·


Loss absorption and recapitalisation amounts consisting of two times the 8% Pillar 1 and 4.7% Pillar 2A requirement




·


Capital buffers including a 1.5% G-SII buffer, 2.5% CCB and 0.5% CCyB.




 




MREL ratios and position


 


 




 


 


 




MREL ratios1


As at 31.03.19


As at 31.12.18




CET1 capital


13.0%


13.2%




AT1 capital instruments and related share premium accounts2


3.4%


3.1%




T2 capital instruments and related share premium accounts2


2.0%


2.1%




Term senior unsecured funding


9.4%


9.7%




Total Barclays PLC (the Parent company) MREL ratio


27.7%


28.1%




Qualifying AT1 capital (including minority interests) issued by subsidiaries


0.7%


0.7%




Qualifying T2 capital (including minority interests) issued by subsidiaries


1.7%


1.6%




Total MREL ratio, including eligible Barclays Bank PLC instruments


30.2%


30.5%




 


 


 




MREL position1


£bn


£bn




CET1 capital


41.4


41.1




AT1 capital instruments and related share premium accounts2


11.0


9.6




T2 capital instruments and related share premium accounts2


6.3


6.6




Term senior unsecured funding


29.9


30.4




Total Barclays PLC (the Parent company) MREL position


88.7


87.7




Qualifying AT1 capital (including minority interests) issued by subsidiaries


2.3


2.3




Qualifying T2 capital (including minority interests) issued by subsidiaries


5.5


5.1




Total MREL position, including eligible Barclays Bank PLC instruments


96.5


95.1




 


 


 




Total RWAs1


319.7


311.9




 




1


CET1, T1 and T2 capital and RWAs are calculated applying the transitional arrangements of the CRR. This includes IFRS 9 transitional arrangements and the grandfathering of CRR non-compliant capital instruments.




2


Includes other AT1 capital regulatory adjustments and deductions of £0.1bn (included in AT1 issued by subsidiaries in December 2018: £0.1bn), and other T2 credit risk adjustments and deductions of £0.2bn (included in T2 issued by subsidiaries in December 2018: £0.3bn).




 
Condensed Consolidated Financial Statements
 




Condensed consolidated income statement




 


Three months ended


Three months ended




 


31.03.19


31.03.18




 


£m


£m




Total income


5,252


5,358




Credit impairment charges and other provisions


(448)


(288)




Net operating income


4,804


5,070




Operating expenses excluding litigation and conduct


(3,257)


(3,364)




Litigation and conduct


(61)


(1,961)




Operating expenses


(3,318)


(5,325)




Other net (expenses)/income


(3)


19




Profit/(loss) before tax


1,483


(236)




Tax charge


(248)


(304)




Profit/(loss) after tax


1,235


(540)




 


 


 




Attributable to:


 


 




Equity holders of the parent


1,038


(764)




Other equity instrument holders1


180


171




Total equity holders of the parent


1,218


(593)




Non-controlling interests


17


53




Profit/(loss) after tax


1,235


(540)




 


 


 




Earnings per share


 


 




Basic earnings/(loss) per ordinary share1


6.1p


(4.2p)




 




1


From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in reserves. The Q119 tax credit was £48m (Q118: £46m). This change does not impact earnings per share or return on average tangible shareholders' equity.




 




Condensed consolidated balance sheet




 


 


 


 




 


 


As at 31.03.191


As at 31.12.18




Assets


 


£m


£m




Cash and balances at central banks


 


166,020


177,069




Cash collateral and settlement balances


 


101,551


77,222




Loans and advances at amortised cost


 


330,685


326,406




Reverse repurchase agreements and other similar secured lending


 


10,910


2,308




Trading portfolio assets


 


117,490


104,187




Financial assets at fair value through the income statement


 


158,386


149,648




Derivative financial instruments


 


217,703


222,538




Financial assets at fair value through other comprehensive income


 


66,715


52,816




Investments in associates and joint ventures


 


725


762




Goodwill and intangible assets


 


7,921


7,973




Current tax assets


 


799


798




Deferred tax assets


 


3,528


3,828




Other assets


 


11,110


7,728




Total assets


 


1,193,543


1,133,283




 


 


 


 




Liabilities


 


 


 




Deposits at amortised cost


 


412,710


394,838




Cash collateral and settlement balances


 


90,188


67,522




Repurchase agreements and other similar secured borrowing


 


20,832


18,578




Debt securities in issue


 


86,982


82,286




Subordinated liabilities


 


20,549


20,559




Trading portfolio liabilities


 


46,324


37,882




Financial liabilities designated at fair value


 


222,277


216,834




Derivative financial instruments


 


213,558


219,643




Current tax liabilities


 


600


628




Deferred tax liabilities


 


33


51




Other liabilities


 


13,606


10,683




Total liabilities


 


1,127,659


1,069,504




 


 


 


 




Equity


 


 


 




Called up share capital and share premium


 


4,320


4,311




Other reserves


 


5,408


5,153




Retained earnings


 


43,814


43,460




Shareholders' equity attributable to ordinary shareholders of the parent


 


53,542


52,924




Other equity instruments


 


11,119


9,632




Total equity excluding non-controlling interests


 


64,661


62,556




Non-controlling interests


 


1,223


1,223




Total equity


 


65,884


63,779




 


 


 


 




Total liabilities and equity


 


1,193,543


1,133,283




 




1


Barclays adopted the accounting standard IFRS 16 on 1 January 2019. The impact on adoption was an increase in other assets of £1.6bn, an increase in other liabilities of £1.6bn, with no material impact on retained earnings.




 




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




Three months ended 31.03.19


£m


£m


£m


£m


£m


£m


£m




Balance as at 1 January 2019


4,311


9,632


5,153


43,460


62,556


1,223


63,779




Profit after tax


-


180


-


1,038


1,218


17


1,235




Other comprehensive profit after tax for the period


-


-


255


(408)


(153)


-


(153)




Total comprehensive income for the period


-


180


255


630


1,065


17


1,082




Issue of new ordinary shares


-


-


-


-


-


-


-




Issue of shares under employee share schemes


9


-


-


112


121


-


121




Issue and exchange of other equity instruments


-


1,509


-


-


1,509


-


1,509




Other equity instruments coupons paid1


-


(180)


-


-


(180)


-


(180)




Vesting of shares under employee share schemes


-


-


-


(384)


(384)


-


(384)




Dividends paid


-


-


-


-


-


(17)


(17)




Other movements


-


(22)


-


(4)


(26)


-


(26)




Balance as at 31 March 2019


4,320


11,119


5,408


43,814


64,661


1,223


65,884




 




 


As at 31.03.19


As at 31.12.18




Other reserves


£m


£m




Currency translation reserve


3,508


3,888




Fair value through other comprehensive income reserve


(116)


(258)




Cash flow hedging reserve


969


660




Own credit reserve


63


(121)




Other reserves and treasury shares


984


984




Total


5,408


5,153




 




1


From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in reserves. The Q119 tax credit was £48m (Q118: £46m). This change does not impact earnings per share or return on average tangible shareholders' equity.




 
Barclays PLC Parent Company
 




Summary balance sheet


 


 




 


As at 31.03.19


As at 31.12.18




Assets


£m


£m




Investment in subsidiaries


59,374


57,374




Loans and advances to subsidiaries


28,702


29,374




Financial assets at fair value through the income statement


7,212


6,945




Derivative financial instruments


126


168




Other assets


175


115




Total assets


95,589


93,976




 


 


 




Liabilities


 


 




Deposits at amortised cost


508


576




Debt securities in issue


31,587


32,373




Subordinated liabilities


6,616


6,775




Financial liabilities designated at fair value


140


-




Other liabilities


125


72




Total liabilities


38,976


39,796




 


 


 




Equity


 


 




Called up share capital and share premium


4,320


4,311




Other equity instruments


11,142


9,633




Other reserves


394


394




Retained earnings


40,757


39,842




Total equity


56,613


54,180




 


 


 




Total liabilities and equity


95,589


93,976




 
Investment in subsidiaries
 
The investment in subsidiaries of £59,374m (December 2018: £57,374m) predominantly relates to investments in Barclays Bank PLC and Barclays Bank UK PLC, as well as holdings of their AT1 securities of £11,163m (December 2018: £9,666m). The increase of £2,000m in the quarter was predominantly driven by a £504m capital contribution into Barclays Bank PLC and an additional $2,000m AT1 holding.
 
Subordinated liabilities and financial liabilities designated at fair value
 
In the three months ended 31 March 2019, Barclays PLC issued ¥20,000m Fixed-to-floating Rate Bonds, which are included within the financial liabilities designated at fair value balance of £140m (December 2018: £nil). Barclays PLC did not issue any subordinated liabilities in the period.
 
Other equity instruments
 
Other equity instruments comprises AT1 securities issued by Barclays PLC. In the quarter, Barclays PLC issued a $2,000m AT1 security.
 
Management of internal investments, loans and advances
 
Barclays PLC retains the discretion to manage the nature of its internal investments in subsidiaries according to their regulatory and business needs. Barclays PLC may invest capital and funding into Barclays Bank PLC, Barclays Bank UK PLC and other Barclays Group subsidiaries such as the Group Service Company and the US Intermediate Holding Company (IHC). In June 2018, the Bank of England published its updated statement of policy on 'The Bank of England's approach to setting a minimum requirement for own funds and eligible liabilities (MREL)'. Accordingly, during the course of December 2018 Barclays restructured certain investments in subsidiaries, including subordinating internal MREL instruments beneath operating liabilities, to the extent required to achieve compliance with internal MREL requirements which came in to effect on 1 January 2019.
 
Appendix: 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 Barclays 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.
 
Non-IFRS performance measures glossary
 




Measure


Definition






Loan: deposit ratio


Loans and advances at amortised cost divided by deposits at amortised cost.




Period end allocated tangible equity


Allocated tangible equity is calculated as 13.0% (2018: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Barclays Group's tangible shareholders' equity and the amounts allocated to businesses.




Average tangible shareholders' equity


Calculated as the average of the previous month's period end tangible equity and the current month's period end tangible equity. The average tangible shareholders' equity for the period is the average of the monthly averages within that period.




Average allocated tangible equity


Calculated as the average of the previous month's period end allocated tangible equity and the current month's period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period.




Return on average tangible shareholders' equity


Annualised profit after tax attributable to ordinary equity holders of the parent (pre 2019 included an adjustment for the tax credit in reserves in respect of other equity instruments), as a proportion of average shareholders' equity excluding non-controlling interests and other equity instruments adjusted for the deduction of intangible assets and goodwill. The components of the calculation have been included on page 30.




Return on average allocated tangible equity


Annualised profit after tax attributable to ordinary equity holders of the parent (pre 2019 included an adjustment for the tax credit in reserves in respect of other equity instruments), as a proportion of average allocated tangible equity. The components of the calculation have been included on page 30.




Cost: income ratio


Total operating expenses divided by total income.




Loan loss rate


Quoted in basis points and represents total annualised impairment charges divided by gross loans and advances held at amortised cost at the balance sheet date. The components of the calculation have been included on page 15.




Net interest margin


Annualised net interest income divided by the sum of average customer assets. The components of the calculation have been included on page 14.




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 35.




Performance measures excluding litigation and conduct


Calculated by excluding litigation and conduct charges from performance measures. The components of the calculations have been included on pages 31 to 35.




 
Returns
 
Return on average tangible equity is calculated as profit after tax attributable to ordinary equity holders of the parent (pre 2019 included an adjustment for the tax credit in reserves in respect of other equity instruments) as a proportion of average tangible equity, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 13.0% (2018: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office average allocated tangible equity represents the difference between the Barclays Group's average tangible shareholders' equity and the amounts allocated to businesses.
 




 


Attributable profit/(loss)


Tax credit in respect of interest payments on other equity instruments1


Profit/(loss) attributable to ordinary equity holders of the parent


 


Average tangible equity


 


Return on average tangible equity




Three months ended 31.03.19


£m


£m


£m


 


£bn


 


%




Barclays UK


422


 


422


 


10.4


 


16.3




    Corporate and Investment Bank


582


 


582


 


25.1


 


9.3




    Consumer, Cards and Payments


206


 


206


 


5.4


 


15.4




Barclays International


788


 


788


 


30.5


 


10.4




Head Office


(172)


 


(172)


 


4.3


 


n/m




Barclays Group


1,038


 


1,038


 


45.2


 


9.2




 


 


 


 


 


 


 


 




Three months ended 31.03.18


 


 


 


 


 


 


 




Barclays UK


(38)


12


(26)


 


9.8


 


(1.1)




    Corporate and Investment Bank


805


29


834


 


25.6


 


13.0




    Consumer, Cards and Payments


168


5


173


 


4.5


 


15.6




Barclays International


973


34


1,007


 


30.1


 


13.4




Head Office


(1,699)


-


(1,699)


 


4.3


 


n/m




Barclays Group


(764)


46


(718)


 


44.2


 


(6.5)




 




1


From 2019, the tax credit is recorded in the income statement tax charge, whereas it was previously recorded in reserves. As a result the tax credit is no longer adjusted for to calculate return on average tangible equity.




 




Performance measures excluding litigation and conduct


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 




Barclays Group


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Cost: income ratio


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Total operating expenses


(3,318)


 


(4,093)


(3,434)


(3,391)


(5,325)


 


(4,369)


(3,355)


(4,113)




Impact of litigation and conduct


61


 


60


105


81


1,961


 


383


81


715




Operating expenses


(3,257)


 


(4,033)


(3,329)


(3,310)


(3,364)


 


(3,986)


(3,274)


(3,398)




 


 


 


 


 


 


 


 


 


 


 




Total income


5,252


 


5,073


5,129


5,576


5,358


 


5,022


5,173


5,058




 


 


 


 


 


 


 


 


 


 


 




Cost: income ratio excluding litigation and conduct


62%


 


79%


65%


59%


63%


 


79%


63%


67%




 


 


 


 


 


 


 


 


 


 


 




Profit before tax


 


 


 


 


 


 


 


 


 


 




Profit/(loss) before tax


1,483


 


374


1,461


1,895


(236)


 


93


1,107


659




Impact of litigation and conduct


61


 


60


105


81


1,961


 


383


81


715




Profit before tax excluding litigation and conduct


1,544


 


434


1,566


1,976


1,725


 


476


1,188


1,374




 


 


 


 


 


 


 


 


 


 


 




Profit attributable to ordinary equity holders of the parent


 


 


 


 


 


 


 


 


 


 




Attributable profit/(loss)


1,038


 


(76)


1,002


1,232


(764)


 


(1,294)


583


(1,401)




Post-tax impact of litigation and conduct


46


 


62


85


59


1,930


 


351


77


703




Attributable profit/(loss) excluding litigation and conduct


1,084


 


(14)


1,087


1,291


1,166


 


(943)


660


(698)




Tax credit in respect of interest payments on other equity instruments


-


 


62


48


47


46


 


49


43


44




Profit/(loss) attributable to ordinary equity holders of the parent excluding litigation and conduct


1,084


 


48


1,135


1,338


1,212


 


(894)


703


(654)




 


 


 


 


 


 


 


 


 


 


 




Return on average tangible shareholders' equity


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Average shareholders' equity


53.2


 


52.2


52.5


51.3


52.0


 


55.9


56.6


57.5




Average goodwill and intangibles


(8.0)


 


(7.9)


(7.9)


(7.8)


(7.8)


 


(7.8)


(7.8)


(8.2)




Average tangible shareholders' equity


45.2


 


44.3


44.6


43.5


44.2


 


48.1


48.9


49.3




 


 


 


 


 


 


 


 


 


 


 




Return on average tangible shareholders' equity excluding litigation and conduct


9.6%


 


0.4%


10.2%


12.3%


11.0%


 


(7.4%)


5.7%


(5.3%)




 


 


 


 


 


 


 


 


 


 


 




Basic earnings per ordinary share


 


 


 


 


 


 


 


 


 


 




Basic weighted average number of shares (m)


17,111


 


17,075


17,074


17,067


17,037


 


16,996


16,994


16,989




 


 


 


 


 


 


 


 


 


 


 




Basic earnings/(loss) per ordinary share excluding litigation and conduct


6.3p


 


0.3p


6.6p


7.8p


7.1p


 


(5.3p)


4.1p


(3.8p)




 




Barclays UK


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Cost: income ratio


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Total operating expenses


(1,002)


 


(1,175)


(1,042)


(971)


(1,416)


 


(1,229)


(991)


(1,673)




Impact of litigation and conduct


3


 


15


54


3


411


 


53


11


699




Operating expenses


(999)


 


(1,160)


(988)


(968)


(1,005)


 


(1,176)


(980)


(974)




 


 


 


 


 


 


 


 


 


 


 




Total income


1,777


 


1,863


1,896


1,836


1,788


 


1,870


1,852


1,820




 


 


 


 


 


 


 


 


 


 


 




Cost: income ratio excluding litigation and conduct


56%


 


62%


52%


53%


56%


 


63%


53%


54%




 


 


 


 


 


 


 


 


 


 


 




Profit before tax


 


 


 


 


 


 


 


 


 


 




Profit/(loss) before tax


585


 


390


740


656


170


 


452


661


(74)




Impact of litigation and conduct


3


 


15


54


3


411


 


53


11


699




Profit before tax excluding litigation and conduct


588


 


405


794


659


581


 


505


672


625




 


 


 


 


 


 


 


 


 


 


 




Profit attributable to ordinary equity holders of the parent


 


 


 


 


 


 


 


 


 


 




Attributable profit/(loss)


422


 


232


500


464


(38)


 


245


423


(285)




Post-tax impact of litigation and conduct


2


 


12


48


1


411


 


37


8


691




Attributable profit excluding litigation and conduct


424


 


244


548


465


373


 


282


431


406




Tax credit in respect of interest payments on other equity instruments


-


 


9


10


9


12


 


13


9


9




Profit attributable to ordinary equity holders of the parent excluding litigation and conduct


424


 


253


558


474


385


 


295


440


415




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Average allocated equity


13.9


 


13.6


13.7


13.6


13.4


 


13.1


14.0


13.5




Average goodwill and intangibles


(3.5)


 


(3.5)


(3.6)


(3.5)


(3.5)


 


(3.5)


(4.6)


(4.8)




Average allocated tangible equity


10.4


 


10.1


10.1


10.1


9.8


 


9.6


9.4


8.7




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity excluding litigation and conduct


16.4%


 


10.1%


22.0%


18.8%


15.7%


 


12.3%


18.7%


19.1%




 




Barclays International


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Cost: income ratio


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Total operating expenses


(2,225)


 


(2,684)


(2,309)


(2,353)


(2,315)


 


(2,948)


(2,187)


(2,272)




Impact of litigation and conduct


19


 


33


32


47


15


 


255


5


(4)




Operating expenses


(2,206)


 


(2,651)


(2,277)


(2,306)


(2,300)


 


(2,693)


(2,182)


(2,276)




 


 


 


 


 


 


 


 


 


 


 




Total income


3,570


 


3,221


3,290


3,707


3,808


 


3,319


3,315


3,610




 


 


 


 


 


 


 


 


 


 


 




Cost: income ratio excluding litigation and conduct


62%


 


82%


69%


62%


60%


 


81%


66%


63%




 


 


 


 


 


 


 


 


 


 


 




Profit before tax


 


 


 


 


 


 


 


 


 


 




Profit before tax


1,118


 


215


850


1,297


1,413


 


6


652


1,261




Impact of litigation and conduct


19


 


33


32


47


15


 


255


5


(4)




Profit before tax excluding litigation and conduct


1,137


 


248


882


1,344


1,428


 


261


657


1,257




 


 


 


 


 


 


 


 


 


 


 




Profit attributable to ordinary equity holders of the parent


 


 


 


 


 


 


 


 


 


 




Attributable profit/(loss)


788


 


(72)


650


890


973


 


(1,168)


359


819




Post-tax impact of litigation and conduct


16


 


34


26


34


12


 


250


4


(3)




Attributable profit/(loss) excluding litigation and conduct


804


 


(38)


676


924


985


 


(918)


363


816




Tax credit in respect of interest payments on other equity instruments


-


 


51


37


36


34


 


34


32


27




Profit/(loss) attributable to ordinary equity holders of the parent excluding litigation and conduct


804


 


13


713


960


1,019


 


(884)


395


843




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Average allocated equity


31.6


 


32.4


32.5


32.8


31.4


 


29.9


31.5


30.1




Average goodwill and intangibles


(1.1)


 


(1.1)


(1.3)


(1.4)


(1.4)


 


(1.4)


(2.6)


(2.8)




Average allocated tangible equity


30.5


 


31.3


31.1


31.4


30.1


 


28.5


28.9


27.4




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity excluding litigation and conduct


10.6%


 


0.2%


9.2%


12.2%


13.6%


 


(12.4%)


5.5%


12.3%




 




Corporate and Investment Bank


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Profit before tax


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit/(loss) before tax


827


 


85


498


835


1,175


 


(252)


593


925




Impact of litigation and conduct


19


 


23


32


-


13


 


255


5


(4)




Profit before tax excluding litigation and conduct


846


 


108


530


835


1,188


 


3


598


921




 


 


 


 


 


 


 


 


 


 


 




Profit attributable to ordinary equity holders of the parent


 


 


 


 


 


 


 


 


 


 




Attributable profit/(loss)


582


 


(128)


397


567


805


 


(1,256)


340


623




Post-tax impact of litigation and conduct


16


 


27


25


-


10


 


250


4


(3)




Attributable profit/(loss) excluding litigation and conduct


598


 


(101)


422


567


815


 


(1,006)


344


620




Tax credit in respect of interest payments on other equity instruments


-


 


44


34


33


29


 


29


28


22




Profit/(loss) attributable to ordinary equity holders of the parent excluding litigation and conduct


598


 


(57)


456


600


844


 


(977)


372


642




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Average allocated equity


25.2


 


26.0


26.2


26.7


25.9


 


24.7


25.8


24.4




Average goodwill and intangibles


(0.1)


 


-


(0.2)


(0.3)


(0.3)


 


(0.4)


(1.1)


(1.2)




Average allocated tangible equity


25.1


 


26.0


25.9


26.4


25.6


 


24.3


24.8


23.3




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity excluding litigation and conduct


9.5%


 


(0.9%)


7.0%


9.1%


13.2%


 


(16.1%)


6.0%


11.1%




 




Consumer, Cards and Payments


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 




Profit before tax


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Profit before tax


291


 


130


352


462


238


 


258


59


336




Impact of litigation and conduct


-


 


10


-


47


2


 


-


-


-




Profit before tax excluding litigation and conduct


291


 


140


352


509


240


 


258


59


336




 


 


 


 


 


 


 


 


 


 


 




Profit attributable to ordinary equity holders of the parent


 


 


 


 


 


 


 


 


 


 




Attributable profit


206


 


56


253


323


168


 


88


19


196




Post-tax impact of litigation and conduct


-


 


7


1


34


2


 


-


-


-




Attributable profit excluding litigation and conduct


206


 


63


254


357


170


 


88


19


196




Tax credit in respect of interest payments on other equity instruments


-


 


7


3


3


5


 


5


4


5




Profit attributable to ordinary equity holders of the parent excluding litigation and conduct


206


 


70


257


360


175


 


93


23


201




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Average allocated equity


6.4


 


6.4


6.3


6.0


5.5


 


5.3


5.7


5.7




Average goodwill and intangibles


(1.0)


 


(1.1)


(1.1)


(1.1)


(1.0)


 


(1.1)


(1.5)


(1.6)




Average allocated tangible equity


5.4


 


5.3


5.2


5.0


4.5


 


4.2


4.2


4.1




 


 


 


 


 


 


 


 


 


 


 




Return on average allocated tangible equity excluding litigation and conduct


15.4%


 


5.4%


19.9%


28.9%


15.7%


 


9.0%


2.2%


19.4%




 




Head Office


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Profit before tax


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Loss before tax


(220)


 


(231)


(129)


(58)


(1,819)


 


(365)


(206)


(122)




Impact of litigation and conduct


39


 


12


19


31


1,535


 


75


65


1




Loss before tax excluding litigation and conduct


(181)


 


(219)


(110)


(27)


(284)


 


(290)


(141)


(121)




 


 


 


 


 


 


 


 


 


 


 




Profit attributable to ordinary equity holders of the parent


 


 


 


 


 


 


 


 


 


 




Attributable loss


(172)


 


(236)


(148)


(122)


(1,699)


 


(371)


(199)


(175)




Post-tax impact of litigation and conduct


28


 


16


11


24


1,507


 


64


65


1




Attributable loss excluding litigation and conduct


(144)


 


(220)


(137)


(98)


(192)


 


(307)


(134)


(174)




 




Tangible net asset value


 


 


 




 


As at 31.03.19


As at 31.12.18


As at 31.03.18




 


£m


£m


£m




Total equity excluding non-controlling interests


64,661


62,556


59,519




Other equity instruments


(11,119)


(9,632)


(8,941)




Goodwill and intangibles


(7,921)


(7,973)


(7,806)




Tangible shareholders' equity attributable to ordinary shareholders of the parent


45,621


44,951


42,772




 


 


 


 




 


m


m


m




Shares in issue


17,139


17,133


17,069




 


 


 


 




 


p


p


p




Tangible net asset value per share


266


262


251




 
Appendix: Barclays Non-Core Results
 
The Barclays Non-Core segment was closed on 1 July 2017 with the residual assets and liabilities reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office. Financial results up until 30 June 2017 are reflected in the Non-Core segment within the Barclays Group's results.
 




Barclays Non-Core


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q217




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Net interest income


-


 


-


-


-


-


 


-


-


(123)




Net trading income


-


 


-


-


-


-


 


-


-


(411)




Net fee, commission and other income


-


 


-


-


-


-


 


-


-


78




Total income


-


 


-


-


-


-


 


-


-


(456)




Credit impairment charges and other provisions


-


 


-


-


-


-


 


-


-


(27)




Net operating expenses


-


 


-


-


-


-


 


-


-


(483)




Operating expenses


-


 


-


-


-


-


 


-


-


(108)




Litigation and conduct


-


 


-


-


-


-


 


-


-


(19)




Total operating expenses


-


 


-


-


-


-


 


-


-


(127)




Other net income


-


 


-


-


-


-


 


-


-


204




Loss before tax


-


 


-


-


-


-


 


-


-


(406)




Tax credit


-


 


-


-


-


-


 


-


-


207




Loss after tax


-


 


-


-


-


-


 


-


-


(199)




Non-controlling interests


-


 


-


-


-


-


 


-


-


(8)




Other equity instrument holders


-


 


-


-


-


-


 


-


-


(19)




Attributable loss


-


 


-


-


-


-


 


-


-


(226)




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Loans and advances to banks and customers at amortised cost


-


 


-


-


-


-


 


-


-


48.3




Derivative financial instrument assets


-


 


-


-


-


-


 


-


-


150.3




Derivative financial instrument liabilities


-


 


-


-


-


-


 


-


-


143.0




Financial assets designated at fair value


-


 


-


-


-


-


 


-


-


12.1




Total assets


-


 


-


-


-


-


 


-


-


233.0




Customer deposits


-


 


-


-


-


-


 


-


-


11.8




Risk weighted assets


-


 


-


-


-


-


 


-


-


22.8




 
Appendix: Discontinued Operation Results
 
Following the reduction of the Barclays Group's interest in BAGL in 2017, Barclays remaining holding of 14.9%, as at Q119, is reported as a financial asset at fair value through other comprehensive income in the Head Office segment, with Barclays share of Absa Group Limited's dividend recognised in the Head Office income statement.
 




Africa Banking


 


 


 


 


 


 


 


 


 


 




 


Q119


 


Q418


Q318


Q218


Q118


 


Q417


Q317


Q2171




Income statement information


£m


 


£m


£m


£m


£m


 


£m


£m


£m




Net interest income


-


 


-


-


-


-


 


-


-


407




Net fee, commission and other income


-


 


-


-


-


-


 


-


-


297




Total income


-


 


-


-


-


-


 


-


-


704




Credit impairment charges and other provisions


-


 


-


-


-


-


 


-


-


(71)




Net operating income


-


 


-


-


-


-


 


-


-


633




Operating expenses excluding impairment of Barclays holding in BAGL


-


 


-


-


-


-


 


-


-


(477)




Other net income excluding loss on sale of BAGL


-


 


-


-


-


-


 


-


-


3




Profit before tax excluding impairment of Barclays holding in BAGL and loss on sale of BAGL


-


 


-


-


-


-


 


-


-


159




Impairment of Barclays holding in BAGL


-


 


-


-


-


-


 


-


-


(206)




Loss on sale of BAGL


-


 


-


-


-


-


 


-


-


(1,435)




Loss before tax


-


 


-


-


-


-


 


-


-


(1,482)




Loss after tax


-


 


-


-


-


-


 


-


-


(1,537)




Attributable loss


-


 


-


-


-


-


 


-


-


(1,534)




 


 


 


 


 


 


 


 


 


 


 




Balance sheet information


£bn


 


£bn


£bn


£bn


£bn


 


£bn


£bn


£bn




Total assets


-


 


-


-


-


-


 


-


-


-




Risk weighted assets


-


 


-


-


-


-


 


-


-


9.8




 




1


The Africa Banking income statement represents two months of results as a discontinued operation to 31 May 2017.




 
Shareholder Information
 




 


 


 


 


 


 


 




Results timetable1


 


Date


 


 


 


 




2019 Interim Results Announcement


 


1 August 2019




 


 


 


 


 


 


 




 


 


 


 


 


 


 




 


 


 


 


 


 




 


 


 


 


 


% Change3




Exchange rates2


31.03.19


31.12.18


31.03.18


 


31.12.18


31.03.18




Period end - USD/GBP


1.30


1.28


1.40


 


2%


(7%)




3 month average - USD/GBP


1.30


1.29


1.39


 


1%


(6%)




Period end - EUR/GBP


1.16


1.12


1.14


 


4%


2%




3 month average - EUR/GBP


1.15


1.13


1.13


 


2%


2%




 


 


 


 


 


 


 




Share price data


 


 


 


 


 


 




Barclays PLC (p)


154.68


150.52


206.50


 


 


 




Barclays PLC number of shares (m)


17,139


17,133


17,069


 


 


 




 


 


 


 


 


 


 




 


 


 


 


 


 


 




For further information please contact


 


 


 


 


 


 




 


 


 


 


 


 


 




Investor relations


Media relations


 


 


 




Lisa Bartrip +44 (0) 20 7773 0708


Thomas Hoskin +44 (0) 20 7116 4755


 


 


 




 


 


 


 


 


 


 




More information on Barclays can be found on our website: 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 20554 from the UK or +44 121 415 7004 from overseas.




 




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.




 
Notes
 
The terms Barclays or Barclays Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2019 to the corresponding three months of 2018 and balance sheet analysis as at 31 March 2019 with comparatives relating to 31 December 2018 and 31 March 2018. 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; 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.
 
The information in this announcement, which was approved by the Board of Directors on 24 April 2019, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2018, which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
 
These results will be furnished as a Form 6-K to the 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.
 
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 Barclays 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 Barclays 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 29 to 37 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 Barclays Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Barclays Group's future financial position, income growth, assets, impairment charges, provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend payout ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any 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. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards including evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules 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 entities within the Barclays Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; instability as a result of the exit by the United Kingdom from the European Union and the disruption that may subsequently result in the UK and globally; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Barclays Group's control. As a result, the Barclays Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set forth in the Barclays Group's forward-looking statements. Additional risks and factors which may impact the Barclays Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2018), which are available on the SEC's website at www.sec.gov.
 
Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
QRFUSSKRKVASUAR