REG - Barclays PLC - 3rd Quarter Results
24/10/2024 07:00
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RNS Number : 3820J Barclays PLC 24 October 2024
Barclays PLC
Q3 2024 Results Announcement
30 September 2024
Notes
The terms Barclays and Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement analysis compares
the nine months ended 30 September 2024 to the corresponding nine months of
2023 and balance sheet analysis as at 30 September 2024 with comparatives
relating to 31 December 2023 and 30 September 2023. The abbreviations '£m'
and '£bn' represent millions and thousands of millions of Pounds Sterling
respectively; the abbreviations '$m' and '$bn' represent millions and
thousands of millions of US Dollars respectively; and the abbreviations '€m'
and '€bn' represent millions and thousands of millions of Euros
respectively.
There are a number of key judgement areas, for example impairment
calculations, which are based on models and which are subject to ongoing
adjustment and modifications. Reported numbers reflect best estimates and
judgements at the given point in time.
Relevant terms that are used in this document but are not defined under
applicable regulatory guidance or International Financial Reporting Standards
(IFRS) are explained in the results glossary, which can be accessed at
home.barclays/investor-relations (https://home.barclays/investor-relations) .
The information in this announcement, which was approved by the Board of
Directors on 23 October 2024, does not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006. Statutory accounts for the
year ended 31 December 2023, which contain an unmodified audit report under
Section 495 of the Companies Act 2006 (which does 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 on Form 6-K to the US Securities and Exchange
Commission (SEC) as soon as practicable following publication of this
document. Once furnished to the SEC, a copy of the Form 6-K will be available
from the SEC's website at www.sec.gov (http://www.sec.gov) .
Barclays is a frequent issuer in the debt capital markets and regularly meets
with investors via formal roadshows and other ad hoc meetings. Consistent with
its usual practice, Barclays expects that from time to time over the coming
quarter it will meet with investors globally to discuss these results and
other matters relating to the Group.
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance measures included
in this document provide valuable information to the readers of the financial
statements as they enable the reader to identify a more consistent basis for
comparing the businesses' performance between financial periods and provide
more detail concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for an
assessment of the Group. They also reflect an important aspect of the way in
which operating targets are defined and performance is monitored by Barclays'
management. However, any non-IFRS performance measures in this document are
not a substitute for IFRS measures and readers should consider the IFRS
measures as well. Refer to the appendix on pages 42 to 47 for definitions and
calculations of non-IFRS performance measures included throughout this
document, and reconciliations to the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within the meaning
of Section 21E of the US Securities Exchange Act of 1934, as amended, and
Section 27A of the US Securities Act of 1933, as amended, with respect to the
Group. Barclays cautions readers that no forward-looking statement is a
guarantee of future performance and that actual results or other financial
condition or performance measures could differ materially from those contained
in the forward-looking statements. Forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as 'may', 'will',
'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing but also
may be made verbally by directors, officers and employees of the Group
(including during management presentations) in connection with this document.
Examples of forward-looking statements include, among others, statements or
guidance regarding or relating to the Group's future financial position,
business strategy, income levels, costs, assets and liabilities, impairment
charges, provisions, capital leverage and other regulatory ratios, capital
distributions (including policy on dividends and share buybacks), return on
tangible equity, projected levels of growth in banking and financial markets,
industry trends, any commitments and targets (including environmental, social
and governance (ESG) commitments and targets), plans and objectives for future
operations, International Financial Reporting Standards ("IFRS") and other
statements that are not historical or current facts. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements speak only as at
the date on which they are made. Forward-looking statements may be affected by
a number of factors, including, without limitation: changes in legislation,
regulations, governmental and regulatory policies, expectations and actions,
voluntary codes of practices and the interpretation thereof, changes in IFRS
and other accounting standards, including practices with regard to the
interpretation and application thereof and emerging and developing ESG
reporting standards; the outcome of current and future legal proceedings and
regulatory investigations; the Group's ability along with governments and
other stakeholders to measure, manage and mitigate the impacts of climate
change effectively; environmental, social and geopolitical risks and incidents
and similar events beyond the Group's control; the impact of competition in
the banking and financial services industry; capital, liquidity, leverage and
other regulatory rules and requirements applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business conditions,
including inflation; volatility in credit and capital markets; market related
risks such as changes in interest rates and foreign exchange rates reforms to
benchmark interest rates and indices; higher or lower asset valuations;
changes in credit ratings of any entity within the Group or any securities
issued by it; changes in counterparty risk; changes in consumer behaviour; the
direct and indirect consequences of the conflicts in Ukraine and the Middle
East on European and global macroeconomic conditions, political stability and
financial markets; political elections, including the impact of the UK,
European and US elections in 2024; developments in the UK's relationship with
the European Union ("EU"); the risk of cyberattacks, information or security
breaches, technology failures or operational disruptions and any subsequent
impact on the Group's reputation, business or operations; the Group's ability
to access funding; and the success of acquisitions, disposals and other
strategic transactions. A number of these factors are beyond the Group's
control. As a result, the Group's actual financial position, results,
financial and non-financial metrics or performance measures or its ability to
meet commitments and targets may differ materially from the statements or
guidance set forth in the Group's forward-looking statements. In setting its
targets and outlook for the period 2024-2026, Barclays has made certain
assumptions about the macroeconomic environment, including, without
limitation, inflation, interest and unemployment rates, the different markets
and competitive conditions in which Barclays operates, and its ability to grow
certain businesses and achieve costs savings and other structural actions.
Additional risks and factors which may impact the Group's future financial
condition and performance are identified in Barclays PLC's filings with the US
Securities and Exchange Commission ("SEC") (including, without limitation,
Barclays PLC's Annual Report on Form 20-F for the financial year ended 31
December 2023), which are available on the SEC's website at www.sec.gov
(https://www.sec.gov/) .
Subject to Barclays PLC's obligations under the applicable laws and
regulations of any relevant jurisdiction (including, without limitation, the
UK and the US) in relation to disclosure and ongoing information, we undertake
no obligation to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Performance Highlights
Barclays delivered a return on tangible equity (RoTE) of 12.3% in Q324 and
11.5% for Q324 YTD, on track to deliver against 2024 and 2026 targets
C. S. Venkatakrishnan, Group Chief Executive, commented
"We continue to be focused on disciplined execution of our three year plan and
are encouraged with progress to date. Whilst there is more work to do, the
Group is on track to achieve its target of greater than 12% RoTE in 2026. In
Q324 Barclays delivered a RoTE of 12.3%, supporting our target of greater than
10% in 2024. Tangible net asset value (TNAV) per share increased to 351p, up
11p versus prior quarter and up 35p year-on-year. The acquisition of Tesco
Bank, to complete on 1 November 2024, forms part of our commitment to invest
in the UK. We continue to exercise cost discipline and remain well capitalised
with a Common Equity Tier 1 (CET1) ratio at the end of the quarter of 13.8%."
• Group statutory RoTE of 12.3% in Q324 and 11.5% in Q324 YTD, 2024
Group RoTE targets remain unchanged
• Guidance for 2024 Group Net Interest Income (NII) excluding Investment
Bank (IB) and Head Office increased from c.£11.0bn to greater than £11.0bn.
Within this Barclays UK NII guidance increased from c.£6.3bn to c.£6.5bn(1)
• Group cost: income ratio of 61% in Q324 and Q324 YTD, 2024 Group cost:
income ratio target of c.63% remains unchanged
- Delivered a further £0.3bn of gross cost efficiency savings in Q324
resulting in Q324 YTD savings of £0.7bn, on track to deliver c.£1bn of gross
cost efficiency savings in 2024
• Prudent risk management with Q324 loan loss rate (LLR) of 37bps and
Q324 YTD LLR of 42bps, below the through the cycle target range of 50-60bps,
with FY24 expected to be at the bottom of this range, inclusive of the Day 1
impact of the Tesco Bank acquisition
• Strong balance sheet with CET1 ratio of 13.8%, within the target range
of 13-14%
• c.8.0p total distributions per share equivalent announced at H124:
dividend of 2.9p now paid, and share buyback of £750m well progressed
• TNAV per share of 351p (December 2023: 331p)
Key financial metrics:
Statutory Excluding inorganic activity(2)
Income Profit before tax Attributable profit Cost: income ratio LLR RoTE EPS TNAV per share CET1 ratio RoTE
Q324 £6.5bn £2.2bn £1.6bn 61% 37bps 12.3% 10.7p 351p 13.8% 12.3%
Q324 YTD £19.8bn £6.4bn £4.4bn 61% 42bps 11.5% 29.3p 12.1%
Q324 Performance highlights:
• Group statutory RoTE was 12.3% (Q323: 11.0%) with profit before tax of
£2.2bn (Q323: £1.9bn)
- There were no inorganic transactions in Q324(2)
• Group income of £6.5bn was up 5% year-on-year, with Group NII
excluding IB and Head Office of £2.8bn, of which Barclays UK NII was £1.7bn
- Barclays UK income increased 4%, as higher structural hedge income was
partially offset by mortgage margin pressure and adverse product dynamics in
deposits, which have stabilised throughout 2024
- Barclays UK Corporate Bank (UKCB) income increased 1%, driven by higher
average deposit balances
- Barclays Private Bank and Wealth Management (PBWM) income decreased 3%,
as growth in client balances was more than offset by the non-repeat of a
timing related one-off in Q323
- Barclays Investment Bank (IB) income increased 6%. Global Markets income
increased 3%, with FICC and Equities both up 3% respectively. Investment
Banking income increased 13%, as higher fee income in Advisory and Debt and
Equity Capital Markets was partially offset by lower income in the
International Corporate Bank
- Barclays US Consumer Bank (USCB) income decreased 2% driven by the
strengthening of GBP against USD, partially offset by higher balances
• Group total operating expenses were stable at £4.0bn, with £0.3bn of
cost efficiency savings more than offsetting inflation, enabling investment
spend and business growth
• Credit impairment charges were £0.4bn (Q323: £0.4bn) with an LLR of
37bps (Q323: 42bps)
1 This excludes the 2024 impact of the acquisition of Tesco Bank's retail
banking business, which is expected to complete on 1 November 2024, with an
initial annualised NII of c.£400m. See Other Matters on page 7 for further
details of the acquisition.
2 Inorganic activity refers to certain inorganic transactions announced as part
of the FY23 Investor Update designed to improve Group RoTE beyond 2024. In
Q324 YTD this included the £220m loss on sale of the performing Italian
retail mortgage portfolio and the £20m loss on disposal from the German
consumer finance business, both incurred in H124. There were no inorganic
transactions in Q324.
Q324 YTD Performance highlights:
• Group statutory RoTE was 11.5% (Q323 YTD: 12.5%) with profit before
tax of £6.4bn (Q323 YTD: £6.4bn)
- Excluding the impact of inorganic activity(1), Group RoTE was 12.1%
• Group income of £19.8bn was stable year-on-year, with Group NII
excluding IB and Head Office of £8.2bn of which Barclays UK NII was £4.8bn
• Group total operating expenses were £12.1bn, up 1% year-on-year,
including the £93m impact of the Bank of England (BoE) levy scheme(2)
- Group operating costs were stable at £12.0bn, with £0.7bn of cost
efficiency savings more than offsetting inflation, enabling investment spend
and business growth
• Credit impairment charges were £1.3bn (Q323 YTD: £1.3bn) with an LLR
of 42bps (Q323 YTD: 43bps)
• CET1 ratio of 13.8% (December 2023: 13.8%), with risk weighted assets
(RWAs) of £340.4bn (December 2023: £342.7bn) and TNAV per share of 351p
(December 2023: 331p)
Group Financial Targets and Outlook:
2024
• Returns: targeting RoTE of greater than 10% and c.10.5% excluding
inorganic activity(1)
- The cumulative impact of all inorganic activity on FY24 Group RoTE is
currently expected to be broadly neutral, as an estimated net gain upon the
completion of the Tesco Bank acquisition in Q424 should broadly offset the
losses on disposals from our Italian retail mortgage portfolios as well as
from the disposal of the German consumer finance business
• Income: targeting Barclays Group NII excluding IB and Head Office of
greater than £11.0bn (previous target of c.£11.0bn), of which Barclays UK
NII is now c.£6.5bn (up from previous target of c.£6.3bn)(3)
• Costs: targeting Group cost: income ratio of c.63%, which includes
c.£1bn of gross efficiency savings in 2024
• Impairment: expect an LLR of 50-60bps through the cycle
• Capital: expect to operate within the CET1 ratio target range of
13-14%
2026
• Returns: targeting a greater than 12% RoTE
• Capital returns: plan to return at least £10bn of capital to
shareholders between 2024 and 2026, through dividends and share buybacks, with
a continued preference for buybacks
- Plan to keep total dividend stable at 2023 level in absolute terms, with
progressive dividend per share growth driven through share count reduction as
a result of increased share buybacks
- Dividends will continue to be paid semi-annually. This multi-year plan
is subject to supervisory and Board approval, anticipated financial
performance and our published CET1 ratio target range of 13-14%
• Income: targeting Group total income of c.£30bn
• Costs: targeting total Group operating expenses of c.£17bn and a
Group cost: income ratio of high 50s in percentage terms. This includes total
gross efficiency savings of c.£2bn by 2026
• Impairment: expect an LLR of 50-60bps through the cycle
• Capital: expect to operate within the CET1 ratio target range of
13-14%
- Targeting IB RWAs of c.50% of Group RWAs in 2026
- Impact of regulatory change on RWAs in line with our prior guidance
expected to be at lower end of 5-10% of Group RWAs(4)
- The previously estimated c.£16bn RWAs impact from USCB moving to an
Internal Ratings Based (IRB) model remains in line with prior guidance, with a
change to timing and subject to model build and portfolio changes. c.£5bn of
this to be reflected when Basel 3.1 is implemented in 2026 and the remainder
to follow thereafter
- A modest increase in Pillar 2A is likely, applicable at some point
in 2025 until model implementation
1 Inorganic activity refers to certain inorganic transactions announced as part
of the FY23 Investor Update designed to improve Group RoTE beyond 2024. In
Q324 YTD this included the £220m loss on sale of the performing Italian
retail mortgage portfolio and the £20m loss on disposal from the German
consumer finance business, both incurred in H124. There were no inorganic
transactions in Q324. For FY24 this is expected to also include the loss on
sale of the non-performing Italian mortgage portfolio and the impact of the
Tesco Bank acquisition.
2 In August 2024, Barclays' final charge for the BoE levy scheme in the
2024/2025 financial year was confirmed at £93m, lower than the estimated
charge of £120m recognised in Q124. As a result, a £27m release has been
recognised in Q324. See Other Matters on page 7.
3 This excludes the 2024 impact of the acquisition of Tesco Bank's retail
banking business, which is expected to complete on 1 November 2024, with an
initial annualised NII of c.£400m expected. See Other Matters on page 7 for
further details of the acquisition.
4 Based on Dec-23 RWAs of £342.7bn.
Barclays Group results Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
£m £m % Change £m £m % Change
Barclays UK 5,659 5,795 (2) 1,946 1,873 4
Barclays UK Corporate Bank 1,322 1,375 (4) 445 440 1
Barclays Private Bank and Wealth Management 958 895 7 326 337 (3)
Barclays Investment Bank 9,198 8,998 2 2,851 2,686 6
Barclays US Consumer Bank 2,469 2,402 3 791 809 (2)
Head Office 218 315 (31) 188 113 66
Total income 19,824 19,780 - 6,547 6,258 5
Operating costs (11,951) (11,979) - (3,954) (3,949) -
UK regulatory levies(1) (93) - 27 -
Litigation and conduct (99) (32) (35) -
Total operating expenses (12,143) (12,011) (1) (3,962) (3,949) -
Other net income 37 7 21 9
Profit before impairment 7,718 7,776 (1) 2,606 2,318 12
Credit impairment charges (1,271) (1,329) 4 (374) (433) 14
Profit before tax 6,447 6,447 - 2,232 1,885 18
Tax charge (1,304) (1,257) (4) (412) (343) (20)
Profit after tax 5,143 5,190 (1) 1,820 1,542 18
Non-controlling interests (29) (39) 26 (3) (9) 67
Other equity instrument holders (763) (766) - (253) (259) 2
Attributable profit 4,351 4,385 (1) 1,564 1,274 23
Performance measures
Return on average tangible shareholders' equity 11.5% 12.5% 12.3% 11.0%
Average tangible shareholders' equity (£bn) 50.4 47.0 51.0 46.5
Cost: income ratio 61% 61% 61% 63%
Loan loss rate (bps) 42 43 37 42
Basic earnings per ordinary share 29.3p 28.2p 10.7p 8.3p
Basic weighted average number of shares (m) 14,863 15,564 (5) 14,648 15,405 (5)
Period end number of shares (m) 14,571 15,239 (4)
Period end tangible shareholders' equity (£bn) 51.1 48.2
As at 30.09.24 As at 31.12.23 As at 30.09.23
Balance sheet and capital management(2) £bn £bn £bn
Loans and advances at amortised cost 399.2 399.5 405.4
Loans and advances at amortised cost impairment coverage ratio 1.3% 1.4% 1.4%
Total assets 1,531.1 1,477.5 1,591.7
Deposits at amortised cost 542.8 538.8 561.3
Tangible net asset value per share 351p 331p 316p
Common equity tier 1 ratio 13.8% 13.8% 14.0%
Common equity tier 1 capital 47.0 47.3 48.0
Risk weighted assets 340.4 342.7 341.9
UK leverage ratio 4.9% 5.2% 5.0%
UK leverage exposure 1,197.4 1,168.3 1,202.4
Funding and liquidity
Group liquidity pool (£bn) 311.7 298.1 335.0
Liquidity coverage ratio 170.1% 161.4% 158.7%
Net stable funding ratio(3) 135.6% 138.0% 138.2%
Loan: deposit ratio 74% 74% 72%
1 Comprises the impact of the BoE levy scheme and the UK bank levy.
2 Refer to pages 34 to 38 for further information on how capital, RWAs and
leverage are calculated.
3 Represents average of the last four spot quarter end positions.
Reconciliation of financial results excluding inorganic activity(1)
Nine months ended 30.09.24 30.09.23
Statutory Inorganic activity Excluding inorganic activity Statutory
£m £m £m £m % Change
Barclays UK 5,659 - 5,659 5,795 (2)
Barclays UK Corporate Bank 1,322 - 1,322 1,375 (4)
Barclays Private Bank and Wealth Management 958 - 958 895 7
Barclays Investment Bank 9,198 - 9,198 8,998 2
Barclays US Consumer Bank 2,469 - 2,469 2,402 3
Head Office 218 (240) 458 315 45
Total income 19,824 (240) 20,064 19,780 1
Operating costs (11,951) - (11,951) (11,979) -
UK regulatory levies (93) - (93) -
Litigation and conduct (99) - (99) (32)
Total operating expenses (12,143) - (12,143) (12,011) (1)
Other net income 37 - 37 7
Profit before impairment 7,718 (240) 7,958 7,776 2
Credit impairment charges (1,271) - (1,271) (1,329) 4
Profit before tax 6,447 (240) 6,687 6,447 4
Attributable profit 4,351 (233) 4,584 4,385 5
Average tangible shareholders' equity (£bn) 50.4 50.4 47.0
Return on average tangible shareholders' equity 11.5% 12.1% 12.5%
Cost: income ratio 61% 61% 61%
Three months ended 30.09.24 30.09.23
Statutory Inorganic activity Excluding inorganic activity Statutory
£m £m £m £m % Change
Barclays UK 1,946 - 1,946 1,873 4
Barclays UK Corporate Bank 445 - 445 440 1
Barclays Private Bank and Wealth Management 326 - 326 337 (3)
Barclays Investment Bank 2,851 - 2,851 2,686 6
Barclays US Consumer Bank 791 - 791 809 (2)
Head Office 188 - 188 113 66
Total income 6,547 - 6,547 6,258 5
Operating costs (3,954) - (3,954) (3,949) -
UK regulatory levies 27 - 27 -
Litigation and conduct (35) - (35) -
Total operating expenses (3,962) - (3,962) (3,949) -
Other net income 21 - 21 9
Profit before impairment 2,606 - 2,606 2,318 12
Credit impairment charges (374) - (374) (433) 14
Profit before tax 2,232 - 2,232 1,885 18
Attributable profit 1,564 - 1,564 1,274 23
Average tangible shareholders' equity (£bn) 51.0 51.0 46.5
Return on average tangible shareholders' equity 12.3% 12.3% 11.0%
Cost: income ratio 61% 61% 63%
1 Inorganic activity refers to certain inorganic transactions announced as part
of the FY23 Investor Update designed to improve Group RoTE beyond 2024. In
Q324 YTD this included the £220m loss on sale of the performing Italian
retail mortgage portfolio and the £20m loss on disposal from the German
consumer finance business, both incurred in H124. There were no inorganic
transactions in Q324. For FY24 this is expected to also include the loss on
sale of the non-performing Italian mortgage portfolio and the impact of the
Tesco Bank acquisition.
Group Finance Director's Review
Q324 YTD Group performance
• Barclays delivered a profit before tax of £6,447m (Q323 YTD:
£6,447m), RoTE of 11.5% (Q323 YTD: 12.5%) and earnings per share (EPS) of
29.3p (Q323 YTD: 28.2p)
• The Group has a diverse income profile across businesses and
geographies including a significant presence in the US. The appreciation of
GBP against USD negatively impacted income and profits and positively impacted
credit impairment charges, total operating expenses and RWAs
• Group statutory income was stable at £19,824m, including the impact
of inorganic activity(1)
- Excluding the impact of inorganic activity, Group income increased 1%,
as higher structural hedge income, higher Investment Banking fees, increased
income in Equities and balance growth in USCB were partially offset by lower
FICC income as well as adverse product dynamics in Barclays UK deposits and
mortgages
• Group total operating expenses increased to £12,143m (Q323 YTD:
£12,011m), including the £93m impact of the BoE levy scheme(2)
- Group operating costs were stable at £11,951m, with £0.7bn of cost
efficiency savings more than offsetting inflation, enabling investment spend
and business growth
• Credit impairment charges were £1,271m (Q323 YTD: £1,329m), informed
by the anticipated higher delinquencies in US cards partially offset by the
impact of credit risk management actions and methodology enhancements, as well
as the improved macroeconomic outlook across portfolios. Total coverage ratio
was 1.3% (December 2023: 1.4%)
• The effective tax rate (ETR) was 20.2% (Q323 YTD: 19.5%)
• Attributable profit was £4,351m (Q323 YTD: £4,385m)
• Total assets increased to £1,531.1bn (December 2023: £1,477.5bn),
driven by an increase in trading securities and seasonal increases in the IB
relative to FY23, partially offset by the strengthening of GBP against USD
• TNAV per share increased to 351p (December 2023: 331p) including EPS
of 29.3p, a 9p benefit from the cash flow hedging reserve and a c.6p benefit
from the reduction in share count as a result of the completion of the share
buyback announced at FY23 Results as well as the ongoing share buyback
announced at H124 Results. These were partially offset by an 8p reduction from
dividends paid during Q324 YTD and net negative other reserve movements
Group capital and leverage
• The CET1 ratio remained stable at 13.8% (December 2023: 13.8%) as RWAs
decreased by £2.3bn to £340.4bn offset by a decrease in CET1 capital of
£0.3bn to £47.0bn:
- c.130bps increase from attributable profit
- c.80bps decrease driven by shareholder distributions including the
£1.8bn share buybacks announced with FY23 and H124 results and an accrual
towards the FY24 dividend
- c.20bps decrease from other capital movements
- c.20bps decrease as a result of a £5.2bn increase in RWAs, excluding
the impact of foreign exchange movements, which includes regulatory model
changes in Barclays UK
- A £1.3bn decrease in CET1 capital due to a decrease in the currency
translation reserve was primarily offset by a £7.5bn decrease in RWAs as a
result of foreign exchange movements
• The UK leverage ratio decreased to 4.9% (December 2023: 5.2%) due to a
reduction in Tier 1 Capital of £1.7bn and increase in exposure of £29.2bn to
£1,197.4bn (December 2023: £1,168.3bn). The decrease in capital was driven
by the redemption of an AT1 instrument during the period. The increase in
exposure was largely driven by an increase in trading securities and secured
lending in IB, partially offset by the strengthening of GBP against USD
Group funding and liquidity
• The liquidity metrics remain well above regulatory requirements,
underpinned by well-diversified sources of funding, a stable global deposit
franchise and a highly liquid balance sheet
• The liquidity pool was £311.7bn (December 2023: £298.1bn). The
increase in the liquidity pool was primarily driven by deposit growth in
International Corporate Bank within the IB and in term wholesale funding
• The average(3) Liquidity Coverage Ratio (LCR) increased to 170.1%
(December 2023: 161.4%), equivalent to a surplus of £126.0bn (December 2023:
£117.7bn)
• Total deposits increased by £4.0bn to £542.8bn (December 2023:
£538.8bn)
• The average(4) Net Stable Funding Ratio (NSFR) was 135.6% (December
2023: 138.0%), which represents a £164.0bn (December 2023: £167.1bn) surplus
above the 100% regulatory requirement
• Wholesale funding outstanding, excluding repurchase agreements, was
£178.9bn (December 2023: £176.8bn)
1 Inorganic activity refers to certain inorganic transactions announced as part
of the FY23 Investor Update designed to improve Group RoTE beyond 2024. In
Q324 YTD this included the £220m loss on sale of the performing Italian
retail mortgage portfolio and the £20m loss on disposal from the German
consumer finance business, both incurred in H124. There were no inorganic
transactions in Q324. For FY24 this is expected to also include the loss on
sale of the non-performing Italian mortgage portfolio and the impact of the
Tesco Bank acquisition.
2 In August 2024, Barclays' final charge for the BoE levy scheme in the
2024/2025 financial year was confirmed at £93m, lower than the estimated
charge of £120m recognised in Q124. As a result, a £27m release has been
recognised in Q324. See Other Matters on page 7.
3 Represents average of the last 12 spot month end ratios.
4 Represents average of the last four spot quarter end ratios.
Group funding and liquidity (continued)
• The Group issued £12.8bn equivalent of minimum requirement for own
funds and eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) in H124. The Group has a strong MREL position with a ratio of
34.9%, which is in excess of the regulatory requirement of 30.1% plus a
confidential, institution specific, Prudential Regulation Authority (PRA)
buffer
Other matters
• The cumulative impact of all inorganic activity in 2024 is currently
expected to reduce the Group's CET1 ratio by c.10bps, and have a broadly
neutral impact on FY24 Group RoTE as the estimated net gain upon the
completion of the Tesco Bank acquisition in Q424 should broadly offset the
losses on disposals from the Italian retail mortgage portfolios as well as
from the disposal of the German consumer finance business:
• Acquisition of Tesco Bank's retail banking business: on 9 February
2024, Barclays entered into an agreement with Tesco Personal Finance plc to
acquire certain assets and liabilities of its retail banking business
(including credit cards, unsecured loans and deposits) conducted under the
"Tesco Bank" brand. The High Court approved the transfer on 17 October 2024,
and it is expected to become effective on 1 November 2024
- The acquisition is expected to generate an income gain of c.£0.5bn as a
result of consideration payable for the net assets being lower than fair
value, partially offset by an expected post-acquisition impairment charge from
IFRS 9 recognition of c.£0.2bn, generating a day 1 net profit before tax
impact of c.£0.3bn, and c.50bps increase to the FY24 Group RoTE. Including
the day 1 profit before tax impact, Barclays Group's CET1 ratio is now
estimated to reduce by c.20bps (previously c.30bps) on completion primarily as
a result of the addition of c.£7bn RWAs. These impacts will be confirmed as
part of Barclays' FY24 Results
• Disposal of Italian retail mortgages: on 24 April 2024, Barclays
announced a transaction under which Barclays Bank Ireland PLC intended to
dispose of its performing Italian retail mortgage portfolio, held in Head
Office. The sale completed in Q224, generating a loss on disposal of £220m
and reduced RWAs by £0.8bn. The transaction was broadly neutral to Barclays'
CET1 ratio and will reduce FY24 Group RoTE by c.40bps
- On 22 October 2024 Barclays agreed the sale of its non-performing Italian
retail mortgage portfolio. The sale of the majority of loans within this
portfolio has now completed, with the sale of the remainder expected to
complete later in Q424. The transaction is expected to generate a small
pre-tax loss of approximately €30m, and reduce RWAs by c.€125m. As a
result, the transaction is expected to be broadly neutral to Barclays' CET1
ratio
- Barclays remains in discussion with respect to the disposal of the
remaining Swiss-Franc linked Italian retail mortgage portfolio. Should the
sale occur, it is expected to generate a further small loss on sale, but be
broadly neutral to Barclays' CET1 ratio
• Disposal of German consumer finance business: on 4 July 2024,
Barclays Bank Ireland PLC agreed the sale of its German consumer finance
business (comprising credit cards, unsecured personal loans and deposits) to
BAWAG P.S.K., a wholly-owned subsidiary of BAWAG Group AG, for a small premium
to net assets. When including disposal costs and accounting adjustments as
required by IFRS 5 (Non-current Assets Held for Sale and Discontinued
Operations), Barclays has recorded a £20m loss for the disposal group within
Head Office in Q224, with an expected c.5bps reduction to FY24 Group RoTE.
Completion of the sale, which is subject to certain conditions, including
regulatory approvals and the sanction of the relevant courts, is expected to
occur in Q424 or Q125. Once complete, the sale is expected to release
c.£3.4bn of RWAs, increasing Barclays' CET1 ratio by c.10bps
• FCA motor finance review: in January 2024, the UK Financial Conduct
Authority (FCA) announced that it was appointing a skilled person to undertake
a review of the historical use of discretionary commission arrangements and
sales in the motor finance market across several firms. This follows two final
decisions by the UK Financial Ombudsman Service (FOS), including one upholding
a complaint against Clydesdale Financial Services Limited (CFS) (a subsidiary
of Barclays PLC) in relation to commission arrangements and disclosure in the
sale of motor finance products and a number of complaints and court claims,
including some against CFS. We have commenced a judicial review challenge
against the FOS in the High Court in relation to this decision. Barclays will
co-operate fully with the FCA's skilled person review, the outcome of which is
unknown, including any potential financial impact. The FCA currently plans to
set out next steps on this matter in May 2025. Barclays ceased operating in
the motor finance market in late 2019 whilst CFS was a subsidiary of the
Barclays Bank group
• BoE levy scheme: following parliamentary approval, the new levy
process commenced in Q124 replacing the Cash Ratio Deposit scheme as a means
of funding the BoE's monetary policy and financial stability operations moving
the charge from negative income to an operating expense. In August 2024,
Barclays' final charge in the 2024/2025 financial year was confirmed at £93m,
lower than the estimated charge of £120m recognised in Q124. As a result, a
£27m release has been recognised in Q324. The £93m charge will be partially
offset by increased income of c.£75m through lower funding costs during 2024
Anna Cross, Group Finance Director
Results by Business
Barclays UK Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Income statement information £m £m % Change £m £m % Change
Net interest income 4,812 4,856 (1) 1,666 1,578 6
Net fee, commission and other income 847 939 (10) 280 295 (5)
Total income 5,659 5,795 (2) 1,946 1,873 4
Operating costs (3,065) (3,240) 5 (1,017) (1,058) 4
UK regulatory levies (42) - 12 -
Litigation and conduct (7) 12 (1) 9
Total operating expenses (3,114) (3,228) 4 (1,006) (1,049) 4
Other net income - - - -
Profit before impairment 2,545 2,567 (1) 940 824 14
Credit impairment charges (82) (267) 69 (16) (59) 73
Profit before tax 2,463 2,300 7 924 765 21
Attributable profit 1,684 1,580 7 621 531 17
Performance measures
Return on average allocated tangible equity 21.4% 20.6% 23.4% 21.0%
Average allocated tangible equity (£bn) 10.5 10.2 10.6 10.1
Cost: income ratio 55% 56% 52% 56%
Loan loss rate (bps) 5 16 3 10
Net interest margin 3.21% 3.15% 3.34% 3.04%
As at 30.09.24 As at 31.12.23 As at 30.09.23
Balance sheet information £bn £bn £bn
Loans and advances to customers at amortised cost 199.3 202.8 204.9
Total assets 292.2 293.1 299.9
Customer deposits at amortised cost 236.3 241.1 243.2
Loan: deposit ratio 92% 92% 92%
Risk weighted assets 77.5 73.5 73.2
Period end allocated tangible equity 10.7 10.2 10.1
Analysis of Barclays UK Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Analysis of total income £m £m % Change £m £m % Change
Personal Banking 3,486 3,662 (5) 1,184 1,165 2
Barclaycard Consumer UK 706 722 (2) 249 238 5
Business Banking 1,467 1,411 4 513 470 9
Total income 5,659 5,795 (2) 1,946 1,873 4
Analysis of credit impairment (charges)/releases
Personal Banking (37) (205) 82 3 (85)
Barclaycard Consumer UK (78) (89) 12 (15) 29
Business Banking 33 27 22 (4) (3) (33)
Total credit impairment charges (82) (267) 69 (16) (59) 73
As at 30.09.24 As at 31.12.23 As at 30.09.23
Analysis of loans and advances to customers at amortised cost £bn £bn £bn
Personal Banking 168.1 170.1 172.3
Barclaycard Consumer UK 10.6 9.7 9.6
Business Banking 20.6 23.0 23.0
Total loans and advances to customers at amortised cost 199.3 202.8 204.9
Analysis of customer deposits at amortised cost
Personal Banking 182.9 185.4 186.1
Barclaycard Consumer UK - - -
Business Banking 53.4 55.7 57.1
Total customer deposits at amortised cost 236.3 241.1 243.2
Barclays UK delivered a RoTE of 21.4% (Q323 YTD: 20.6%) supported by robust
income, strong asset quality and disciplined cost management, with continued
investment in our transformation into a simpler, better and more balanced
retail bank.
Income statement - Q324 YTD compared to Q323 YTD
• Profit before tax increased 7% to £2,463m with a RoTE of 21.4% (Q323
YTD: 20.6%)
• Total income decreased 2% to £5,659m. NII decreased 1% to £4,812m,
as continued structural hedge momentum was more than offset by mortgage margin
pressure and adverse product dynamics in deposits, which have stabilised
throughout 2024. Net fee, commission and other income decreased 10% to £847m
primarily from the impact of the transfer of Wealth Management &
Investments (WM&I) to PBWM(1)
• Total operating expenses decreased 4% to £3,114m, driven by the
transfer of WM&I to PBWM(1) partially offset by the impact of inflation.
Ongoing efficiency savings continue to be reinvested, which includes
investment in our transformation programme to drive sustainable improvement to
the cost: income ratio
• Credit impairment charges were £82m (Q323 YTD: £267m), driven by low
delinquencies in UK cards, high quality mortgage lending portfolio and the
improved macroeconomic outlook. UK cards 30 and 90 day arrears remained low at
0.7% (Q323: 0.9%) and 0.2% (Q323: 0.2%) respectively. The UK cards total
coverage ratio reduced to 5.6% (December 2023: 6.8%) driven by release of the
affordability linked adjustments, supported by a resilient credit performance
Balance sheet - 30 September 2024 compared to 31 December 2023
• Loans and advances to customers at amortised cost decreased by £3.5bn
to £199.3bn, driven by subdued mortgage lending reflecting wider market
factors and continued repayment of government scheme lending in Business
Banking
• Customer deposits at amortised cost decreased £4.8bn to £236.3bn,
driven by reduced Business Banking and retail current account balances,
reflecting broader market trends. The loan: deposit ratio remained stable at
92% (December 2023: 92%)
• RWAs increased to £77.5bn (December 2023: £73.5bn), primarily driven
by regulatory model changes
1 WM&I was transferred in May 2023.
Barclays UK Corporate Bank Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Income statement information £m £m % Change £m £m % Change
Net interest income 882 913 (3) 309 304 2
Net fee, commission, trading and other income 440 462 (5) 136 136 -
Total income 1,322 1,375 (4) 445 440 1
Operating costs (685) (647) (6) (229) (224) (2)
UK regulatory levies (23) - 7 -
Litigation and conduct - 2 - 2
Total operating expenses (708) (645) (10) (222) (222) -
Other net income - 2 - -
Profit before impairment 614 732 (16) 223 218 2
Credit impairment (charges)/releases (36) 45 (13) (15) 13
Profit before tax 578 777 (26) 210 203 3
Attributable profit 392 525 (25) 144 129 12
Performance measures
Return on average allocated tangible equity 17.3% 24.4% 18.8% 18.3%
Average allocated tangible equity (£bn) 3.0 2.9 3.1 2.8
Cost: income ratio 54% 47% 50% 50%
Loan loss rate (bps) 19 (22) 21 21
As at 30.09.24 As At 31.12.23 As at 30.09.23
Balance sheet information £bn £bn £bn
Loans and advances to customers at amortised cost 24.8 26.4 26.9
Deposits at amortised cost 82.3 84.9 82.7
Risk weighted assets 22.1 20.9 19.5
Period end allocated tangible equity 3.0 3.0 2.8
Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Analysis of total income £m £m % Change £m £m % Change
Corporate lending 196 198 (1) 67 69 (3)
Transaction banking 1,126 1,177 (4) 378 371 2
Total income 1,322 1,375 (4) 445 440 1
UKCB delivered a RoTE of 17.3% (Q323 YTD: 24.4%), as income from increased
average deposits is offset by lower liquidity pool income, the year-to-date
impact of continuing investment to support future growth ambitions and the BoE
levy scheme.
Income statement - Q324 YTD compared to Q323 YTD
• Profit before tax decreased 26% to £578m (Q323 YTD: £777m)
• Total income decreased 4% to £1,322m as increased deposit income from
higher average balances in the higher interest rate environment was more than
offset by lower liquidity pool income
• Total operating expenses increased 10% to £708m, reflecting higher
ongoing spend to support growth ambitions and the year-to-date impact of the
BoE levy scheme
• Credit impairment charges were £36m (Q323 YTD: £45m release), driven
by resilient underlying credit performance and limited single name charges.
The release in the prior period was driven by the improved macroeconomic
outlook
Balance sheet - 30 September 2024 compared to 31 December 2023
• Loans and advances to customers at amortised cost decreased by £1.6bn
to £24.8bn (December 2023: £26.4bn) with underlying growth more than offset
by a c.£2bn reduction from refinements to the perimeter with the
International Corporate Bank within IB
• Customer deposits at amortised cost decreased by £2.6bn at £82.3bn
(December 2023: £84.9bn) primarily driven by a c.£2bn reduction from
refinements to the perimeter with the International Corporate Bank within IB
• RWAs increased to £22.1bn (December 2023: £20.9bn) reflecting higher
client lending limits, supporting future lending growth
Barclays Private Bank and Wealth Management Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Income statement information £m £m % Change £m £m % Change
Net interest income 551 586 (6) 189 219 (14)
Net fee, commission and other income 407 309 32 137 118 16
Total income 958 895 7 326 337 (3)
Operating costs (656) (540) (21) (222) (214) (4)
UK regulatory levies (2) - 1 -
Litigation and conduct 1 - - -
Total operating expenses (657) (540) (22) (221) (214) (3)
Other net income - - ` - -
Profit before impairment 301 355 (15) 105 123 (15)
Credit impairment (charges)/releases (4) (8) 50 (7) 2
Profit before tax 297 347 (14) 98 125 (22)
Attributable profit 225 283 (20) 74 102 (27)
Performance measures
Return on average allocated tangible equity 29.5% 37.1% 29.0% 41.2%
Average allocated tangible equity (£bn) 1.0 1.0 1.0 1.0
Cost: income ratio 69% 60% 68% 63%
Loan loss rate (bps) 4 7 19 (7)
Key facts £bn £bn
Invested assets(1) 122.4 105.4
Clients assets and liabilities(2) 201.5 178.7
As at 30.09.24 As At 31.12.23 As at 30.09.23
Balance sheet information £bn £bn £bn
Loans and advances to customers at amortised cost 14.0 13.6 13.4
Deposits at amortised cost 64.8 60.3 59.7
Risk weighted assets 7.3 7.2 7.2
Period end allocated tangible equity 1.0 1.0 1.0
PBWM delivered a RoTE of 29.5% (Q323 YTD: 37.1%), supported by 13% growth
year-on-year in client balances to £201.5bn, which is predominantly driven by
invested assets(1) as a result of market movements and underlying growth.
Income statement - Q324 YTD compared to Q323 YTD
• Profit before tax decreased 14% to £297m with a RoTE of 29.5% (Q323
YTD: 37.1%)
• Total income increased 7% to £958m reflecting the transfer of
WM&I from Barclays UK(3) and higher client assets and liabilities
balances, partially offset by lower liquidity pool income
• Total operating expenses increased 22% to £657m, reflecting the
transfer of WM&I from Barclays UK and higher ongoing spend, including
hiring, to support business growth
Balance sheet - 30 September 2024 compared to 31 December 2023
• Client assets and liabilities increased £18.6bn to £201.5bn, driven
by £13.6bn increase in invested assets as a result of market movements and
underlying growth, as well as £4.5bn increase in deposits and £0.5bn
increase in gross loans to clients
• Deposits at amortised cost increased £4.5bn to £64.8bn, driven by
underlying growth from client inflows
• RWAs were stable at £7.3bn (December 2023: £7.2bn)
1 Invested assets represent assets under management and supervision.
2 Client assets and liabilities refers to customer deposits, lending and
invested assets.
3 WM&I was transferred in May 2023.
Barclays Investment Bank Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Income statement information £m £m % Change £m £m % Change
Net interest income 747 1,111 (33) 282 397 (29)
Net trading income 4,979 5,283 (6) 1,512 1,497 1
Net fee, commission and other income 3,472 2,604 33 1,057 792 33
Total income 9,198 8,998 2 2,851 2,686 6
Operating costs (5,763) (5,685) (1) (1,906) (1,840) (4)
UK regulatory levies (26) - 7 -
Litigation and conduct (29) 7 (17) 6
Total operating expenses (5,818) (5,678) (2) (1,916) (1,834) (4)
Other net income - 1 - 2
Profit before impairment 3,380 3,321 2 935 854 9
Credit impairment (charges)/releases (77) (79) 3 (43) 23
Profit before tax 3,303 3,242 2 892 877 2
Attributable profit 2,266 2,190 3 652 580 12
Performance measures
Return on average allocated tangible equity 10.1% 10.1% 8.8% 8.0%
Average allocated tangible equity (£bn) 29.8 29.0 29.5 28.8
Cost: income ratio 63% 63% 67% 68%
Loan loss rate (bps) 9 10 15 (8)
As at 30.09.24 As at 31.12.23 As at 30.09.23
Balance sheet information £bn £bn £bn
Loans and advances to customers at amortised cost 64.5 62.7 62.3
Loans and advances to banks at amortised cost 6.7 7.3 9.5
Debt securities at amortised cost 44.8 38.9 36.3
Loans and advances at amortised cost 116.0 108.9 108.1
Trading portfolio assets 185.8 174.5 155.3
Derivative financial instrument assets 256.7 255.1 280.4
Financial assets at fair value through the income statement 210.8 202.5 237.2
Cash collateral and settlement balances 134.7 102.3 134.6
Deposits at amortised cost 139.8 132.7 154.2
Derivative financial instrument liabilities 249.4 249.7 268.3
Risk weighted assets 194.2 197.3 201.1
Period end allocated tangible equity 28.4 29.0 29.0
Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Analysis of total income £m £m % Change £m £m % Change
FICC 3,733 4,121 (9) 1,180 1,147 3
Equities 2,271 1,942 17 692 675 3
Global Markets 6,004 6,063 (1) 1,872 1,822 3
Advisory 472 422 12 186 80
Equity capital markets 253 181 40 64 62 3
Debt capital markets 1,165 847 38 344 233 48
Banking fees and underwriting 1,890 1,450 30 594 375 58
Corporate lending 108 236 (54) (21) 103
Transaction banking 1,196 1,249 (4) 406 386 5
International Corporate Bank 1,304 1,485 (12) 385 489 (21)
Investment Banking 3,194 2,935 9 979 864 13
Total income 9,198 8,998 2 2,851 2,686 6
IB delivered a RoTE of 10.1% (Q323 YTD: 10.1%) reflecting the benefit of
diversified income streams across businesses and geographies. An increase in
Banking fees and underwriting and Equities income was partially offset by a
decrease in FICC and International Corporate Bank income. Costs were
marginally up while impairment remained below prior year.
Income statement - Q324 YTD compared to Q323 YTD
• IB has a diverse income profile across businesses and geographies
including a significant presence in the US. The appreciation of GBP against
USD adversely impacted income and profits, and positively impacted credit
impairment charges, total operating expenses and RWAs
• Profit before tax increased to £3,303m (Q323 YTD: £3,242m)
• Total income increased 2% to £9,198m
- Global Markets income decreased 1% to £6,004m as increased income in
Equities was more than offset by lower income in FICC
- Equities income increased 17% to £2,271m, reflecting increased client
activity in Derivatives and Cash products, additionally supported by a £125m
fair value gain on Visa B shares in Q124
- FICC income decreased 9% to £3,733m, reflecting lower client activity in
Macro and the non-repeat of the inflation benefit from prior year, partially
offset by strong performance in securitised products
- Investment Banking income increased 9% to £3,194m
- Banking fees and underwriting income increased 30% to £1,890m. Equity
capital markets fees increased 40% driven by increased deal activity including
fees booked on a large UK rights issue completed in Q224. Debt capital markets
fees increased 38% driven by increased activity in leverage finance and
investment grade issuance. Advisory fee income increased 12% to £472m
- International Corporate Bank income decreased 12% to £1,304m, including
the £85m impact of fair value losses on leverage finance lending in Q324,
which decreased Corporate lending income. Transaction banking income decreased
4% to £1,196m driven by margin compression as customers continue to migrate
to higher interest returning products and lower liquidity pool income
• Total operating expenses increased 2% to £5,818m reflecting the
impact of inflation, Q224 structural cost actions and the estimated impact of
the BoE levy scheme, partially offset by efficiency savings
• Credit impairment charges were £77m (Q323 YTD: £79m), driven by
single name charges, partially offset by the benefit of credit protection and
the improved macroeconomic outlook
Balance sheet - 30 September 2024 compared to 31 December 2023
• Loans and advances at amortised costs increased £7.1bn to £116.0bn
driven by increased investment in debt securities and c.£2bn from refinements
to the perimeter with UKCB
• Trading portfolio assets increased £11.3bn to £185.8bn driven by
increased trading in debt securities to facilitate client demand in Global
Markets
• Derivative assets increased £1.6bn to £256.7bn and liabilities
remained broadly stable at £249.4bn, reflecting increased client activity in
Equities, offset by a decrease in Macro due to lower market volatility
• Financial assets at fair value through the income statement increased
£8.3bn to £210.8bn driven by increased secured lending balances
• Deposits at amortised cost increased £7.1bn to £139.8bn driven by
growth in deposits, primarily in International Corporate Bank and c.£2bn from
refinements to the perimeter with UKCB
• RWAs decreased to £194.2bn (December 2023: £197.3bn) driven by the
strengthening of GBP against USD
Barclays US Consumer Bank Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Income statement information £m £m % Change £m £m % Change
Net interest income 1,981 1,918 3 647 662 (2)
Net fee, commission and other income 488 484 1 144 147 (2)
Total income 2,469 2,402 3 791 809 (2)
Operating costs (1,179) (1,232) 4 (384) (404) 5
UK regulatory levies - - - -
Litigation and conduct (14) (4) (9) -
Total operating expenses (1,193) (1,236) 3 (393) (404) 3
Other net income - - - -
Profit before impairment 1,276 1,166 9 398 405 (2)
Credit impairment charges (995) (989) (1) (276) (404) 32
Profit before tax 281 177 59 122 1
Attributable profit 208 134 55 89 3
Performance measures
Return on average allocated tangible equity 8.4% 5.7% 10.9% 0.4%
Average allocated tangible equity (£bn) 3.3 3.2 3.3 3.1
Cost: income ratio 48% 51% 50% 50%
Loan loss rate (bps) 497 480 411 582
Net interest margin 10.64% 10.84% 10.38% 10.88%
As at 30.09.24 As at 31.12.23 As at 30.09.23
Balance sheet information £bn £bn £bn
Loans and advances to customers at amortised cost 23.2 24.2 24.3
Deposits at amortised cost 19.4 19.7 19.3
Risk weighted assets 23.2 24.8 24.1
Period end allocated tangible equity 3.2 3.4 3.3
USCB delivered a RoTE of 8.4% (Q323 YTD: 5.7%) with underlying growth in cards
balances driving higher income, partially offset by the strengthening of GBP
against USD. c.£0.9bn ($1.1bn) of the outstanding credit card receivables
were sold to Blackstone in Q124, providing a benefit from reduced RWAs.
Income statement - Q324 YTD compared to Q323 YTD
• The appreciation of GBP against USD adversely impacted income and
profits, and positively impacted credit impairment charges, total operating
expenses and RWAs
• Profit before tax was £281m (Q323 YTD: £177m)
• Total income increased 3% to £2,469m. NII increased 3% to £1,981m
reflecting underlying growth in cards balances, partially offset by the
strengthening of GBP against USD. Net fee, commission and other income
increased 1% to £488m driven by higher purchases and account growth(1)
• Total operating expenses decreased 3% to £1,193m, driven by
efficiency savings and the strengthening of GBP against USD
• Credit impairment charges were £995m (Q323 YTD: £989m), driven by
anticipated higher delinquencies in US cards, which led to higher coverage
ratios, partially offset by the impact of credit risk management actions and
methodology enhancements. 30 and 90 day arrears for US cards were 3.0% (Q323:
2.7%) and 1.6% (Q323: 1.3%) respectively. The USCB total coverage ratio was
10.3% (December 2023: 10.1%) as ongoing reserve build was partially offset by
the impact of a debt sale in Q324
Balance sheet - 30 September 2024 compared to 31 December 2023
• Loans and advances to customers at amortised cost remained broadly
stable at £23.2bn (December 2023: £24.2bn) with underlying growth in cards
balances more than offset by the strengthening of GBP against USD
• Customer deposits at amortised cost were broadly stable at £19.4bn
(December 2023: £19.7bn), with underlying deposit growth, in line with USCB's
ambition to grow core deposits, more than offset by the strengthening of GBP
against USD
• RWAs decreased to £23.2bn (December 2023: £24.8bn), reflecting the
sale of receivables to Blackstone in Q124 and strengthening of GBP against USD
1 Includes Barclays accounts and those serviced for third parties.
Head Office Nine months ended Three months ended
30.09.24 30.09.23 30.09.24 30.09.23
Income statement information £m £m % Change £m £m % Change
Net interest income 463 185 215 87
Net fee, commission and other income (245) 130 (27) 26
Total income 218 315 (31) 188 113 66
Operating costs (603) (635) 5 (197) (210) 6
UK regulatory levies - - - -
Litigation and conduct (50) (49) (2) (7) (16) 56
Total operating expenses (653) (684) 5 (204) (226) 10
Other net income 37 4 21 7
(Loss)/profit before impairment (398) (365) (9) 5 (106)
Credit impairment (charges)/releases (77) (31) (19) 20
Loss before tax (475) (396) (20) (14) (86) 84
Attributable loss (424) (327) (30) (16) (71) 77
Performance measures
Average allocated tangible equity (£bn) 2.8 0.7 3.5 0.7
As at 30.09.24 As at 31.12.23 As at 30.09.23
Balance sheet information £bn £bn £bn
Risk weighted assets 16.1 19.0 16.8
Period end allocated tangible equity 4.9 3.6 2.0
Income statement - Q324 YTD compared to Q323 YTD
• Loss before tax was £475m (Q323 YTD: £396m)
• Total income decreased to £218m (Q323 YTD: £315m) mainly driven by
the loss on sale of the performing Italian retail mortgage portfolio and the
impact of the disposal of the German consumer finance business. These were
partially offset by a gain on disposal of a legacy investment and hedge
accounting
• Total operating expenses decreased to £653m (Q323 YTD: £684m)
• Credit impairment charges were £77m (Q323 YTD: £31m), reflecting
stable credit performance. The lower charge in the prior period was influenced
by easing inflationary pressure in the modelled German consumer finance
business
Balance sheet - 30 September 2024 compared to 31 December 2023
• RWAs decreased to £16.1bn (December 2023: £19.0bn) mainly from the
sale of the performing Italian retail mortgage portfolio and a decrease in
relation to merchant acquiring cash in transit settlement balances
Quarterly Results Summary
Barclays Group
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 3,308 3,056 3,072 3,139 3,247 3,270 3,053 2,741
Net fee, commission and other income 3,239 3,268 3,881 2,459 3,011 3,015 4,184 3,060
Total income 6,547 6,324 6,953 5,598 6,258 6,285 7,237 5,801
Operating costs (3,954) (3,999) (3,998) (4,735) (3,949) (3,919) (4,111) (3,748)
UK regulatory levies(1) 27 - (120) (180) - - - (176)
Litigation and conduct (35) (7) (57) (5) - (33) 1 (79)
Total operating expenses (3,962) (4,006) (4,175) (4,920) (3,949) (3,952) (4,110) (4,003)
Other net income/(expenses) 21 4 12 (16) 9 3 (5) 10
Profit before impairment 2,606 2,322 2,790 662 2,318 2,336 3,122 1,808
Credit impairment charges (374) (384) (513) (552) (433) (372) (524) (498)
Profit before tax 2,232 1,938 2,277 110 1,885 1,964 2,598 1,310
Tax (charges)/credit (412) (427) (465) 23 (343) (353) (561) 33
Profit after tax 1,820 1,511 1,812 133 1,542 1,611 2,037 1,343
Non-controlling interests (3) (23) (3) (25) (9) (22) (8) (22)
Other equity instrument holders (253) (251) (259) (219) (259) (261) (246) (285)
Attributable profit/(loss) 1,564 1,237 1,550 (111) 1,274 1,328 1,783 1,036
Performance measures
Return on average tangible shareholders' equity 12.3% 9.9% 12.3% (0.9)% 11.0% 11.4% 15.0% 8.9%
Average tangible shareholders' equity (£bn) 51.0 49.8 50.5 48.9 46.5 46.7 47.6 46.7
Cost: income ratio 61% 63% 60% 88% 63% 63% 57% 69%
Loan loss rate (bps) 37 38 51 54 42 37 52 49
Basic earnings per ordinary share 10.7p 8.3p 10.3p (0.7)p 8.3p 8.6p 11.3p 6.5p
Basic weighted average number of shares (m) 14,648 14,915 14,983 15,092 15,405 15,523 15,770 15,828
Period end number of shares (m) 14,571 14,826 15,091 15,155 15,239 15,556 15,701 15,871
Period end tangible shareholders' equity (£bn) 51.1 50.4 50.6 50.2 48.2 45.3 47.3 46.8
Balance sheet and capital management(2) £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 326.5 329.8 332.1 333.3 339.6 337.4 343.6 343.3
Loans and advances to banks at amortised cost 8.1 8.0 8.5 9.5 11.5 10.9 11.0 10.0
Debt securities at amortised cost 64.6 61.7 57.4 56.7 54.3 53.1 48.9 45.5
Loans and advances at amortised cost 399.2 399.5 397.9 399.5 405.4 401.4 403.5 398.8
Loans and advances at amortised cost impairment coverage ratio 1.3% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4%
Total assets 1,531.1 1,576.6 1,577.1 1,477.5 1,591.7 1,549.7 1,539.1 1,513.7
Deposits at amortised cost 542.8 557.5 552.3 538.8 561.3 554.7 555.7 545.8
Tangible net asset value per share 351p 340p 335p 331p 316p 291p 301p 295p
Common equity tier 1 ratio 13.8% 13.6% 13.5% 13.8% 14.0% 13.8% 13.6% 13.9%
Common equity tier 1 capital 47.0 47.7 47.1 47.3 48.0 46.6 46.0 46.9
Risk weighted assets 340.4 351.4 349.6 342.7 341.9 336.9 338.4 336.5
UK leverage ratio 4.9% 5.0% 4.9% 5.2% 5.0% 5.1% 5.1% 5.3%
UK leverage exposure 1,197.4 1,222.7 1,226.5 1,168.3 1,202.4 1,183.7 1,168.9 1,130.0
Funding and liquidity
Group liquidity pool (£bn) 311.7 328.7 323.5 298.1 335.0 330.7 333.0 318.0
Liquidity coverage ratio 170.1% 167.0% 163.2% 161.4% 158.7% 157.2% 156.6% 155.5%
Net stable funding ratio 135.6% 136.4% 135.7% 138.0% 138.2% 138.8% 139.2% 137.0%
Loan: deposit ratio 74% 72% 72% 74% 72% 72% 73% 73%
1 Comprises the impact of the BoE levy scheme and the UK bank levy.
2 Refer to pages 34 to 38 for further information on how capital, RWAs and
leverage are calculated.
Barclays UK
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 1,666 1,597 1,549 1,575 1,578 1,660 1,618 1,600
Net fee, commission and other income 280 290 277 217 295 301 343 370
Total income 1,946 1,887 1,826 1,792 1,873 1,961 1,961 1,970
Operating costs (1,017) (1,041) (1,007) (1,153) (1,058) (1,090) (1,092) (1,108)
UK regulatory levies 12 - (54) (30) - - - (26)
Litigation and conduct (1) (4) (2) (4) 9 5 (2) (13)
Total operating expenses (1,006) (1,045) (1,063) (1,187) (1,049) (1,085) (1,094) (1,147)
Other net income - - - - - - - 1
Profit before impairment 940 842 763 605 824 876 867 824
Credit impairment charges (16) (8) (58) (37) (59) (95) (113) (157)
Profit before tax 924 834 705 568 765 781 754 667
Attributable profit 621 584 479 382 531 534 515 474
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 199.3 198.7 200.8 202.8 204.9 206.8 208.2 205.1
Customer deposits at amortised cost 236.3 236.8 237.2 241.1 243.2 249.8 254.3 258.0
Loan: deposit ratio 92% 91% 92% 92% 92% 90% 90% 87%
Risk weighted assets 77.5 76.5 76.5 73.5 73.2 73.0 74.6 73.1
Period end allocated tangible equity 10.7 10.6 10.7 10.2 10.1 10.1 10.3 10.1
Performance measures
Return on average allocated tangible equity 23.4% 22.3% 18.5% 14.9% 21.0% 20.9% 20.0% 18.7%
Average allocated tangible equity (£bn) 10.6 10.5 10.4 10.2 10.1 10.2 10.3 10.2
Cost: income ratio 52% 55% 58% 66% 56% 55% 56% 58%
Loan loss rate (bps) 3 1 11 7 10 17 20 27
Net interest margin 3.34% 3.22% 3.09% 3.07% 3.04% 3.22% 3.18% 3.10%
Analysis of Barclays UK Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Analysis of total income £m £m £m £m £m £m £m £m
Personal Banking 1,184 1,174 1,128 1,067 1,165 1,244 1,253 1,229
Barclaycard Consumer UK 249 228 229 242 238 237 247 269
Business Banking 513 485 469 483 470 480 461 472
Total income 1,946 1,887 1,826 1,792 1,873 1,961 1,961 1,970
Analysis of credit impairment (charges)/releases
Personal Banking 3 (26) (14) 35 (85) (92) (28) (120)
Barclaycard Consumer UK (15) (25) (38) (73) 29 (35) (83) (12)
Business Banking (4) 43 (6) 1 (3) 32 (2) (25)
Total credit impairment charges (16) (8) (58) (37) (59) (95) (113) (157)
Analysis of loans and advances to customers at amortised cost £bn £bn £bn £bn £bn £bn £bn £bn
Personal Banking 168.1 167.3 169.0 170.1 172.3 173.3 173.6 169.7
Barclaycard Consumer UK 10.6 10.2 9.8 9.7 9.6 9.3 9.0 9.2
Business Banking 20.6 21.2 22.0 23.0 23.0 24.2 25.6 26.2
Total loans and advances to customers at amortised cost 199.3 198.7 200.8 202.8 204.9 206.8 208.2 205.1
Analysis of customer deposits at amortised cost
Personal Banking 182.9 183.3 183.4 185.4 186.1 191.1 194.3 195.6
Barclaycard Consumer UK - - - - - - - -
Business Banking 53.4 53.5 53.8 55.7 57.1 58.7 60.0 62.4
Total customer deposits at amortised cost 236.3 236.8 237.2 241.1 243.2 249.8 254.3 258.0
Barclays UK Corporate Bank
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 309 296 277 247 304 299 310 324
Net fee, commission, trading and other income 136 147 157 148 136 173 153 153
Total income 445 443 434 395 440 472 463 477
Operating costs (229) (235) (221) (258) (224) (213) (210) (213)
UK regulatory levies 7 - (30) (8) - - - (7)
Litigation and conduct - - - (1) 2 - - -
Total operating expenses (222) (235) (251) (267) (222) (213) (210) (220)
Other net (expenses)/income - - - (5) - 1 1 1
Profit before impairment 223 208 183 123 218 260 254 258
Credit impairment (charges)/releases (13) (8) (15) (18) (15) 84 (24) (52)
Profit before tax 210 200 168 105 203 344 230 206
Attributable profit 144 135 113 59 129 239 157 131
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 24.8 25.7 25.7 26.4 26.9 26.9 27.2 26.9
Deposits at amortised cost 82.3 84.9 81.7 84.9 82.7 82.6 83.6 84.4
Risk weighted assets 22.1 21.9 21.4 20.9 19.5 20.6 20.2 21.1
Period end allocated tangible equity 3.0 3.0 3.0 3.0 2.8 2.9 2.9 3.0
Performance measures
Return on average allocated tangible equity 18.8% 18.0% 15.2% 8.4% 18.3% 32.9% 21.7% 17.8%
Average allocated tangible equity (£bn) 3.1 3.0 3.0 2.8 2.8 2.9 2.9 2.9
Cost: income ratio 50% 53% 58% 68% 50% 45% 45% 46%
Loan loss rate (bps) 21 12 23 27 21 (123) 36 74
Analysis of total income £m £m £m £m £m £m £m £m
Corporate lending 67 57 72 64 69 68 61 66
Transaction banking 378 386 362 331 371 404 402 411
Total income 445 443 434 395 440 472 463 477
Barclays Private Bank and Wealth Management
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 189 187 175 182 219 186 181 205
Net fee, commission and other income 137 133 137 131 118 113 78 81
Total income 326 320 312 313 337 299 259 286
Operating costs (222) (220) (214) (255) (214) (182) (144) (153)
UK regulatory levies 1 - (3) (4) - - - (4)
Litigation and conduct - 1 - 2 - - - -
Total operating expenses (221) (219) (217) (257) (214) (182) (144) (157)
Other net income - - - - - - - -
Profit before impairment 105 101 95 56 123 117 115 129
Credit impairment (charges)/releases (7) 3 - 4 2 (7) (3) (10)
Profit before tax 98 104 95 60 125 110 112 119
Attributable profit 74 77 74 47 102 91 90 92
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 14.0 13.9 13.7 13.6 13.4 13.8 14.3 14.4
Deposits at amortised cost 64.8 64.6 61.9 60.3 59.7 59.2 60.8 62.3
Risk weighted assets 7.3 7.0 7.2 7.2 7.2 7.2 7.5 7.8
Period end allocated tangible equity 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1
Client assets and liabilities(1) 201.5 198.5 189.1 182.9 178.7 174.1 141.5 139.4
Performance measures
Return on average allocated tangible equity 29.0% 30.8% 28.7% 19.1% 41.2% 35.9% 34.5% 34.9%
Average allocated tangible equity (£bn) 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1
Cost: income ratio 68% 68% 70% 82% 63% 61% 56% 55%
Loan loss rate (bps) 19 (9) - (10) (7) 20 7 26
1 Client assets and liabilities refers to customer deposits, lending and
invested assets.
Barclays Investment Bank
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 282 268 197 282 397 555 159 228
Net trading income 1,512 1,485 1,982 757 1,497 1,351 2,435 1,197
Net fee, commission and other income 1,057 1,266 1,149 998 792 837 975 731
Total income 2,851 3,019 3,328 2,037 2,686 2,743 3,569 2,156
Operating costs (1,906) (1,900) (1,957) (1,934) (1,840) (1,813) (2,032) (1,619)
UK regulatory levies 7 - (33) (123) - - - (119)
Litigation and conduct (17) (3) (9) (2) 6 (1) 2 (55)
Total operating expenses (1,916) (1,903) (1,999) (2,059) (1,834) (1,814) (2,030) (1,793)
Other net (expenses)/income - - - (1) 2 - (1) 1
Profit/(loss) before impairment 935 1,116 1,329 (23) 854 929 1,538 364
Credit impairment (charges)/releases (43) (44) 10 (23) 23 (77) (25) (22)
Profit/(loss) before tax 892 1,072 1,339 (46) 877 852 1,513 342
Attributable profit/(loss) 652 715 899 (149) 580 562 1,048 313
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 64.5 66.6 64.6 62.7 62.3 59.1 63.1 64.6
Loans and advances to banks at amortised cost 6.7 6.6 7.6 7.3 9.5 9.0 9.1 8.1
Debt securities at amortised cost 44.8 41.7 40.4 38.9 36.3 35.1 30.7 27.2
Loans and advances at amortised cost 116.0 114.9 112.6 108.9 108.1 103.2 102.9 99.9
Trading portfolio assets 185.8 197.2 195.3 174.5 155.3 165.0 137.6 133.7
Derivative financial instrument assets 256.7 251.4 248.9 255.1 280.4 264.8 256.5 301.6
Financial assets at fair value through the income statement 210.8 211.7 225.1 202.5 237.2 231.1 243.8 209.4
Cash collateral and settlement balances 134.7 139.8 129.8 102.3 134.6 122.1 124.3 106.2
Deposits at amortised cost 139.8 151.3 151.1 132.7 154.2 142.9 137.3 121.5
Derivative financial instrument liabilities 249.4 241.8 241.5 249.7 268.3 254.5 246.7 288.9
Risk weighted assets 194.2 203.3 200.4 197.3 201.1 197.2 198.0 195.9
Period end allocated tangible equity 28.4 29.7 29.6 29.0 29.0 28.7 28.9 28.6
Performance measures
Return on average allocated tangible equity 8.8% 9.6% 12.0% (2.1)% 8.0% 7.7% 14.4% 4.0%
Average allocated tangible equity (£bn) 29.5 29.9 30.0 28.9 28.8 29.0 29.1 30.9
Cost: income ratio 67% 63% 60% 101% 68% 66% 57% 83%
Loan loss rate (bps) 15 15 (4) 8 (8) 30 10 9
Analysis of total income £m £m £m £m £m £m £m £m
FICC 1,180 1,149 1,404 724 1,147 1,186 1,788 976
Equities 692 696 883 431 675 563 704 440
Global Markets 1,872 1,845 2,287 1,155 1,822 1,749 2,492 1,416
Advisory 186 138 148 171 80 130 212 197
Equity capital markets 64 121 68 38 62 69 50 40
Debt capital markets 344 420 401 301 233 273 341 243
Banking Fees and Underwriting 594 679 617 510 375 472 603 480
Corporate lending (21) 87 42 (23) 103 100 33 (194)
Transaction banking 406 408 382 395 386 422 441 454
International Corporate Banking 385 495 424 372 489 522 474 260
Investment Banking 979 1,174 1,041 882 864 994 1,077 740
Total income 2,851 3,019 3,328 2,037 2,686 2,743 3,569 2,156
Barclays US Consumer Bank
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 647 646 688 686 662 622 634 639
Net fee, commission, trading and other income 144 173 171 180 147 145 192 149
Total income 791 819 859 866 809 767 826 788
Operating costs (384) (408) (387) (418) (404) (401) (427) (425)
UK regulatory levies - - - - - - - -
Litigation and conduct (9) (2) (3) (2) - (4) - (3)
Total operating expenses (393) (410) (390) (420) (404) (405) (427) (428)
Other net income - - - - - - - -
Profit before impairment 398 409 469 446 405 362 399 360
Credit impairment charges (276) (309) (410) (449) (404) (264) (321) (224)
Profit/(loss) before tax 122 100 59 (3) 1 98 78 136
Attributable profit/(loss) 89 75 44 (3) 3 72 59 101
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 23.2 24.3 23.6 24.2 24.3 22.9 22.5 23.6
Deposits at amortised cost 19.4 20.0 20.3 19.7 19.3 17.9 18.1 18.3
Risk weighted assets 23.2 24.4 23.9 24.8 24.1 22.5 22.5 23.9
Period end allocated tangible equity 3.2 3.3 3.3 3.4 3.3 3.1 3.1 3.3
Performance measures
Return on average allocated tangible equity 10.9% 9.2% 5.3% (0.3)% 0.4% 9.3% 7.5% 12.6%
Average allocated tangible equity (£bn) 3.3 3.3 3.3 3.3 3.1 3.1 3.1 3.2
Cost: income ratio 50% 50% 46% 48% 50% 53% 52% 54%
Loan loss rate (bps) 411 438 610 636 582 411 515 337
Net interest margin 10.38% 10.43% 11.12% 10.88% 10.88% 10.66% 10.97% 10.64%
Head Office
Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
Income statement information £m £m £m £m £m £m £m £m
Net interest income 215 62 186 167 87 (52) 151 (255)
Net fee, commission and other income (27) (226) 8 28 26 95 8 379
Total income 188 (164) 194 195 113 43 159 124
Operating costs (197) (195) (211) (717) (210) (221) (204) (229)
UK regulatory levies - - - (14) - - - (20)
Litigation and conduct (7) 1 (44) 1 (16) (32) (1) (9)
Total operating expenses (204) (194) (255) (730) (226) (253) (205) (258)
Other net income/(expenses) 21 4 12 (10) 7 2 (5) 7
Profit/(loss) before impairment 5 (354) (49) (545) (106) (208) (51) (127)
Credit impairment (charges)/releases (19) (18) (40) (29) 20 (13) (38) (33)
Loss before tax (14) (372) (89) (574) (86) (221) (89) (160)
Attributable loss (16) (349) (59) (447) (71) (170) (86) (75)
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Risk weighted assets 16.1 18.3 20.2 19.0 16.8 16.4 15.6 14.7
Period end allocated tangible equity 4.9 2.7 3.0 3.6 2.0 (0.5) 1.1 0.7
Performance measures
Average allocated tangible equity (£bn) 3.5 2.1 2.8 2.7 0.7 0.5 1.2 (1.6)
Performance Management
Margins and balances
Nine months ended 30.09.24 Nine months ended 30.09.23
Net interest income Average customer assets Net interest margin Net interest income Average customer assets Net interest margin
£m £m % £m £m %
Barclays UK 4,812 199,938 3.21 4,856 206,338 3.15
Barclays UK Corporate Bank 882 22,552 5.22 913 23,157 5.27
Barclays Private Bank and Wealth Management 551 13,862 5.31 586 14,071 5.57
Barclays US Consumer Bank 1,981 24,864 10.64 1,918 23,661 10.84
Group excluding IB and Head Office 8,226 261,216 4.21 8,273 267,227 4.14
Barclays Investment Bank 747 1,111
Head Office 463 185
Total Barclays Group net interest income 9,436 9,570
The Group excluding IB and Head Office net interest margin (NIM) increased by
7bps from 4.14% in Q323 to 4.21% in Q324, due to continued structural hedge
momentum and higher cards balances in USCB, partially offset by mortgage
margin pressure in Barclays UK and adverse product dynamics in deposits.
Quarterly analysis
Q324 Q224 Q124 Q423 Q323
Net interest income £m £m £m £m £m
Barclays UK 1,666 1,597 1,549 1,575 1,578
Barclays UK Corporate Bank 309 296 277 247 304
Barclays Private Bank and Wealth Management 189 187 175 182 219
Barclays US Consumer Bank 647 646 688 686 662
Group excluding IB and Head Office 2,811 2,726 2,689 2,690 2,763
Average customer assets £m £m £m £m £m
Barclays UK 198,616 199,529 201,669 203,646 205,693
Barclays UK Corporate Bank 23,049 22,474 22,257 23,354 23,225
Barclays Private Bank and Wealth Management 14,061 13,931 13,593 13,525 13,594
Barclays US Consumer Bank 24,798 24,899 24,880 25,012 24,128
Group excluding IB and Head Office 260,524 260,833 262,399 265,537 266,640
Net interest margin % % % % %
Barclays UK 3.34 3.22 3.09 3.07 3.04
Barclays UK Corporate Bank 5.33 5.30 5.00 4.19 5.19
Barclays Private Bank and Wealth Management 5.35 5.40 5.17 5.33 6.40
Barclays US Consumer Bank 10.38 10.43 11.12 10.88 10.88
Group excluding IB and Head Office 4.29 4.20 4.12 4.02 4.11
Structural hedge
The Group employs a structural hedge programme designed to stabilise NIM on
fixed rate non-maturity balance sheet items that are behaviourally stable. As
interest rates move, such balances would otherwise drive material income
volatility where there is a re-pricing mismatch with floating rate assets.
The structural hedge predominantly covers non-interest-bearing current
accounts and the fixed portion of instant access savings accounts as well as
equity, which are invested into either floating rate customer assets or
balances at central banks, creating an exposure to changes in interest rates.
The structural hedge is executed via a portfolio of receive fixed, pay
variable interest rate swaps, with an amortising structure so that a small
portion matures and is reinvested each month at prevailing market rates. The
pay-floating leg of the interest rate swaps nets down a proportion of the
receive-floating income from the customer assets, leaving a receive-fixed
income stream from the structural hedge.
The purpose of the structural hedge is to smooth the Group NII through time.
The floating leg of the swap will re-price immediately, whereas the fixed rate
yield on the portfolio reprices gradually, as a portion of the swap portfolio
matures and the roll is re-invested onto new market rates.
When interest rates are higher than our structural hedge yield, the pay
floating rate will typically be higher than our average receive fixed rate. In
this scenario, when viewed in isolation, the structural hedge will be a net
drag to Group NII. When floating rates are lower than our structural hedge
yield, the hedge in isolation will be a net benefit.
Since the receive-fixed swaps are booked for a specific term, an element of
NII is 'locked in'. The income stabilising feature of the structural hedge
provides greater net interest income certainty through the interest rate
cycle.
The structural hedge is one component of a larger portfolio of interest rate
risk management activities that includes non-structural hedging (e.g. pay
fixed and receive variable flows for asset hedging), and other offsetting
flows. The net risk of these positions is executed externally through interest
rate swaps and managed for accounting risk (i.e. income volatility arising
from the accounting mismatch of swaps at fair value through profit and loss
and underlying hedged items at amortised cost) within the cash flow hedge
reserve. Overall the Group has external derivatives designated as cash flow
hedges that hedge interest rate risk with a notional £98bn (December 2023:
£128bn) which reflects the structural hedge notional of £234bn (December
2023: £246bn) netted with non-structural hedging positions of £136bn
(December 2023: £118bn). The majority of these interest rate swaps are
cleared with Central Clearing Counterparties and margined daily with an
average duration of between 2.5 years and 3 years.
Gross structural hedge contributions were £3,430m (Q323: £2,609m). Gross
structural hedge contributions represent the absolute interest income earned
on the fixed legs of the swaps in the structural hedge as the floating leg is
offset by the base rate funding of the deposits.
Credit Risk
Loans and advances at amortised cost by geography
Total loans and advances at amortised cost in the credit risk performance
section includes loans and advances at amortised cost to banks and loans and
advances at amortised cost to customers.
The table below presents a product and geographical breakdown by stages of
loans and advances at amortised cost and the impairment allowance. Also
included are stage allocation of debt securities and off-balance sheet loan
commitments and financial guarantee contracts by gross exposure, impairment
allowance and coverage ratio.
Impairment allowance under IFRS 9 considers both the drawn and the undrawn
counterparty exposure. For retail portfolios, the total impairment allowance
is allocated to gross loans and advances to the extent allowance does not
exceed the drawn exposure and any excess is reported on the liabilities side
of the balance sheet as a provision. For corporate portfolios, impairment
allowance on undrawn exposure is reported on the liability side of the balance
sheet as a provision.
Gross exposure Impairment allowance
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 30.09.24 £m £m £m £m £m £m £m £m
Retail mortgages 145,587 18,026 1,692 165,305 31 60 105 196
Retail credit cards 9,080 1,993 186 11,259 107 429 95 631
Retail other 6,605 1,202 221 8,028 56 104 141 301
Corporate loans(1) 52,404 7,156 1,789 61,349 155 168 379 702
Total UK 213,676 28,377 3,888 245,941 349 761 720 1,830
Retail mortgages 1,701 29 494 2,224 2 - 278 280
Retail credit cards 20,427 3,448 1,652 25,527 358 960 1,338 2,656
Retail other 1,624 148 130 1,902 2 1 26 29
Corporate loans 59,315 3,895 982 64,192 78 141 225 444
Total Rest of the World 83,067 7,520 3,258 93,845 440 1,102 1,867 3,409
Total loans and advances at amortised cost 296,743 35,897 7,146 339,786 789 1,863 2,587 5,239
Debt securities at amortised cost 61,342 3,316 - 64,658 10 11 - 21
Total loans and advances at amortised cost including debt securities 358,085 39,213 7,146 404,444 799 1,874 2,587 5,260
Off-balance sheet loan commitments and financial guarantee contracts(2) 378,879 17,441 1,046 397,366 171 231 28 430
Total(3,4) 736,964 56,654 8,192 801,810 970 2,105 2,615 5,690
Net exposure Coverage ratio
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 30.09.24 £m £m £m £m % % % %
Retail mortgages 145,556 17,966 1,587 165,109 - 0.3 6.2 0.1
Retail credit cards 8,973 1,564 91 10,628 1.2 21.5 51.1 5.6
Retail other 6,549 1,098 80 7,727 0.8 8.7 63.8 3.7
Corporate loans(1) 52,249 6,988 1,410 60,647 0.3 2.3 21.2 1.1
Total UK 213,327 27,616 3,168 244,111 0.2 2.7 18.5 0.7
Retail mortgages 1,699 29 216 1,944 0.1 - 56.3 12.6
Retail credit cards 20,069 2,488 314 22,871 1.8 27.8 81.0 10.4
Retail other 1,622 147 104 1,873 0.1 0.7 20.0 1.5
Corporate loans 59,237 3,754 757 63,748 0.1 3.6 22.9 0.7
Total Rest of the World 82,627 6,418 1,391 90,436 0.5 14.7 57.3 3.6
Total loans and advances at amortised cost 295,954 34,034 4,559 334,547 0.3 5.2 36.2 1.5
Debt securities at amortised cost 61,332 3,305 - 64,637 - 0.3 - -
Total loans and advances at amortised cost including debt securities 357,286 37,339 4,559 399,184 0.2 4.8 36.2 1.3
Off-balance sheet loan commitments and financial guarantee contracts(2) 378,708 17,210 1,018 396,936 - 1.3 2.7 0.1
Total(3,4) 735,994 54,549 5,577 796,120 0.1 3.7 31.9 0.7
1 Includes Business Banking, which has a gross exposure of £13.6bn and an
impairment allowance of £365m. This comprises £80m impairment allowance on
£9.5bn Stage 1 exposure, £56m on £3.0bn Stage 2 exposure and £229m on
£1.1bn Stage 3 exposure. Excluding this, total coverage for corporate loans
in UK is 0.7%.
2 Excludes loan commitments and financial guarantees of £20.7bn carried at fair
value and includes exposures relating to financial assets classified as assets
held for sale.
3 Other financial assets subject to impairment excluded 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 £224.0bn and an impairment allowance of £139m. This
comprises £13m impairment allowance on £222.8bn Stage 1 exposure, £3m on
£1.1bn Stage 2 exposure and £123m on £129m Stage 3 exposure.
4 The annualised loan loss rate is 42bps after applying the total impairment
charge of £1,271m.
Gross exposure Impairment allowance
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 31.12.23 £m £m £m £m £m £m £m £m
Retail mortgages 146,001 19,123 1,812 166,936 43 77 112 232
Retail credit cards 8,094 2,128 198 10,420 111 492 107 710
Retail other 6,832 1,252 264 8,348 56 117 144 317
Corporate loans(1) 54,257 8,673 1,692 64,622 191 214 346 751
Total UK 215,184 31,176 3,966 250,326 401 900 709 2,010
Retail mortgages 4,201 346 612 5,159 7 28 316 351
Retail credit cards 22,315 3,450 1,522 27,287 412 1,138 1,226 2,776
Retail other 1,637 91 229 1,957 3 1 32 36
Corporate loans 58,248 4,629 862 63,739 96 200 252 548
Total Rest of the World 86,401 8,516 3,225 98,142 518 1,367 1,826 3,711
Total loans and advances at amortised cost 301,585 39,692 7,191 348,468 919 2,267 2,535 5,721
Debt securities 52,869 3,907 - 56,776 11 16 - 27
Total loans and advances at amortised cost including debt securities 354,454 43,599 7,191 405,244 930 2,283 2,535 5,748
Off-balance sheet loan commitments and financial guarantee contracts(2) 374,063 24,208 1,037 399,308 173 287 44 504
Total(3,4) 728,517 67,807 8,228 804,552 1,103 2,570 2,579 6,252
Net exposure Coverage ratio
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 31.12.23 £m £m £m £m % % % %
Retail mortgages 145,958 19,046 1,700 166,704 - 0.4 6.2 0.1
Retail credit cards 7,983 1,636 91 9,710 1.4 23.1 54.0 6.8
Retail other 6,776 1,135 120 8,031 0.8 9.3 54.5 3.8
Corporate loans(1) 54,066 8,459 1,346 63,871 0.4 2.5 20.4 1.2
Total UK 214,783 30,276 3,257 248,316 0.2 2.9 17.9 0.8
Retail mortgages 4,194 318 296 4,808 0.2 8.1 51.6 6.8
Retail credit cards 21,903 2,312 296 24,511 1.8 33.0 80.6 10.2
Retail other 1,634 90 197 1,921 0.2 1.1 14.0 1.8
Corporate loans 58,152 4,429 610 63,191 0.2 4.3 29.2 0.9
Total Rest of the World 85,883 7,149 1,399 94,431 0.6 16.1 56.6 3.8
Total loans and advances at amortised cost 300,666 37,425 4,656 342,747 0.3 5.7 35.3 1.6
Debt securities 52,858 3,891 - 56,749 - 0.4 - -
Total loans and advances at amortised cost including debt securities 353,524 41,316 4,656 399,496 0.3 5.2 35.3 1.4
Off-balance sheet loan commitments and financial guarantee contracts(2) 373,890 23,921 993 398,804 - 1.2 4.2 0.1
Total(3,4) 727,414 65,237 5,649 798,300 0.2 3.8 31.3 0.8
1 Includes Business Banking, which has a gross exposure of £15.2bn and an
impairment allowance of £431m. This comprises £99m impairment allowance on
£9.8bn Stage 1 exposure, £81m on £4.1bn Stage 2 exposure and £251m on
£1.3bn Stage 3 exposure. Excluding this, total coverage for corporate loans
in UK is 0.6%.
2 Excludes loan commitments and financial guarantees of £16.5bn carried at fair
value and includes exposures relating to financial assets classified as assets
held for sale.
3 Other financial assets subject to impairment excluded 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 £183.6bn and impairment allowance of £151m. This comprises
£16m impairment allowance on £182.8bn Stage 1 exposure, £2m on £0.6bn
Stage 2 exposure and £133m on £140m Stage 3 exposure.
4 The annualised loan loss rate is 46bps after applying the total impairment
charge of £1,881m
Assets held for sale
During 2023, gross loans and advances and related impairment allowances for
the German consumer finance business portfolio were reclassified from loans
and advances to customers to assets held for sale in the balance sheet.
Loans and advances to customers classified as assets held for sale
Stage 1 Stage 2 Stage 3 Total
Gross ECL Coverage Gross ECL Coverage Gross ECL Coverage Gross ECL Coverage
As at 30.09.24 £m £m % £m £m % £m £m % £m £m %
Retail credit cards 1,779 18 1.0 412 37 9.0 91 66 72.5 2,282 121 5.3
Retail other 1,290 18 1.4 254 36 14.2 74 50 67.6 1,618 104 6.4
Total Rest of the World 3,069 36 1.2 666 73 11.0 165 116 70.3 3,900 225 5.8
As at 31.12.23
Retail credit cards 1,621 15 0.9 445 41 9.2 92 68 73.9 2,158 124 5.7
Retail other 1,561 20 1.3 288 32 11.1 84 60 71.4 1,933 112 5.8
Total Rest of the World 3,182 35 1.1 733 73 10.0 176 128 72.7 4,091 236 5.8
Loans and advances at amortised cost by product
The table below presents a product breakdown by stages of loans and advances
at amortised cost. Also included is a breakdown of Stage 2 past due balances.
Stage 2
As at 30.09.24 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
Retail mortgages 147,288 15,123 2,071 861 18,055 2,186 167,529
Retail credit cards 29,507 4,768 370 303 5,441 1,838 36,786
Retail other 8,229 1,006 165 179 1,350 351 9,930
Corporate loans 111,719 10,855 64 132 11,051 2,771 125,541
Total 296,743 31,752 2,670 1,475 35,897 7,146 339,786
Impairment allowance
Retail mortgages 33 30 12 18 60 383 476
Retail credit cards 465 1,060 150 179 1,389 1,433 3,287
Retail other 58 70 16 19 105 167 330
Corporate loans 233 295 5 9 309 604 1,146
Total 789 1,455 183 225 1,863 2,587 5,239
Net exposure
Retail mortgages 147,255 15,093 2,059 843 17,995 1,803 167,053
Retail credit cards 29,042 3,708 220 124 4,052 405 33,499
Retail other 8,171 936 149 160 1,245 184 9,600
Corporate loans 111,486 10,560 59 123 10,742 2,167 124,395
Total 295,954 30,297 2,487 1,250 34,034 4,559 334,547
Coverage ratio % % % % % % %
Retail mortgages - 0.2 0.6 2.1 0.3 17.5 0.3
Retail credit cards 1.6 22.2 40.5 59.1 25.5 78.0 8.9
Retail other 0.7 7.0 9.7 10.6 7.8 47.6 3.3
Corporate loans 0.2 2.7 7.8 6.8 2.8 21.8 0.9
Total 0.3 4.6 6.9 15.3 5.2 36.2 1.5
As at 31.12.23
Gross exposure £m £m £m £m £m £m £m
Retail mortgages 150,202 16,834 1,971 664 19,469 2,424 172,095
Retail credit cards 30,409 4,858 392 328 5,578 1,720 37,707
Retail other 8,469 1,094 126 123 1,343 493 10,305
Corporate loans 112,505 12,960 179 163 13,302 2,554 128,361
Total 301,585 35,746 2,668 1,278 39,692 7,191 348,468
Impairment allowance
Retail mortgages 50 73 20 12 105 428 583
Retail credit cards 523 1,257 166 207 1,630 1,333 3,486
Retail other 59 82 18 18 118 176 353
Corporate loans 287 399 8 7 414 598 1,299
Total 919 1,811 212 244 2,267 2,535 5,721
Net exposure
Retail mortgages 150,152 16,761 1,951 652 19,364 1,996 171,512
Retail credit cards 29,886 3,601 226 121 3,948 387 34,221
Retail other 8,410 1,012 108 105 1,225 317 9,952
Corporate loans 112,218 12,561 171 156 12,888 1,956 127,062
Total 300,666 33,935 2,456 1,034 37,425 4,656 342,747
Coverage ratio % % % % % % %
Retail mortgages - 0.4 1.0 1.8 0.5 17.7 0.3
Retail credit cards 1.7 25.9 42.3 63.1 29.2 77.5 9.2
Retail other 0.7 7.5 14.3 14.6 8.8 35.7 3.4
Corporate loans 0.3 3.1 4.5 4.3 3.1 23.4 1.0
Total 0.3 5.1 7.9 19.1 5.7 35.3 1.6
Measurement uncertainty
Scenarios used to calculate the Group's expected credit losses charge were
refreshed in Q324 with the Baseline scenario reflecting the latest consensus
macroeconomic forecasts available at the time of the scenario refresh. In the
Baseline scenario, the UK economy is gradually recovering and is further
stimulated as restrictive monetary policy continues loosening. US GDP growth
falls to 1.8% in 2025 but then stabilises at 2.0%. Labour markets remain
broadly resilient. The UK unemployment rate peaks at 4.6% during 2025 before
stabilising at 4.4%. US unemployment increases slightly to 4.2% at end of 2024
where it remains for the rest of the projection period. With the significant
decline in inflationary pressures, major central banks continue to cut rates
throughout 2025. UK house prices keep falling in 2024 before stabilising and
resuming the upward trend from 2025. The housing market in the US remains more
resilient, with house prices continuing to grow.
In the Downside 2 scenario, inflationary pressures are assumed to intensify
again, mainly driven by strong wage growth. Central banks raise rates further,
with the UK bank rate and the US federal funds rate each reaching 8.5% in
Q225. Major economies experience a rapid tightening of financial conditions
alongside a significant increase in market volatility resulting in a sharp
repricing of assets and higher credit losses. Central banks are forced to cut
interest rates aggressively. Falling demand reduces UK and US GDP and headline
inflation drops significantly following a temporary surge. In the Upside 2
scenario, a rise in labour force participation and higher productivity
contribute to accelerated economic growth without creating new inflationary
pressures. With inflation continuing to fall, central banks lower interest
rates, further stimulating aggregate demand, leading to reduced unemployment
and healthy GDP growth.
The methodology for estimating scenario probability weights involves
simulating a range of future paths for UK and US GDP using historical data
with the five scenarios mapped against the distribution of these future paths.
The median is centred around the Baseline with scenarios further from the
Baseline attracting a lower weighting before the five weights are normalised
to total 100%. The increases in the Upside scenario weightings were driven by
the improvement in GDP in the Baseline scenario, bringing the Baseline
scenario closer to the Upside scenarios. For further details see page 33.
Economic uncertainty adjustments of £102m (30 June 2024: £151m) were applied
as overlays to the modelled ECL output. The decrease reflected a release of
affordability linked adjustments in the UK unsecured lending portfolio,
supported by a resilient credit performance from UK customers, as evidenced by
continued low and stable delinquencies.
The following tables show the key macroeconomic variables used in the five
scenarios (5-year annual paths) and the probability weights applied to each
scenario.
Macroeconomic variables used in the calculation of ECL
As at 30.09.24 2024 2025 2026 2027 2028
Baseline % % % % %
UK GDP(1) 0.9 1.3 1.5 1.7 1.6
UK unemployment(2) 4.4 4.5 4.4 4.4 4.4
UK HPI(3) 0.7 2.6 2.6 4.6 3.2
UK bank rate(6) 5.0 3.9 3.4 3.3 3.3
US GDP(1) 2.3 1.8 2.0 2.0 2.0
US unemployment(4) 4.0 4.2 4.2 4.2 4.2
US HPI(5) 3.2 3.0 3.1 3.1 3.1
US federal funds rate(6) 5.0 3.4 3.1 3.0 3.3
Downside 2
UK GDP(1) 0.8 (2.3) (1.0) 2.3 1.4
UK unemployment(2) 4.4 5.6 7.4 5.6 4.8
UK HPI(3) (0.4) (18.1) (6.7) 16.6 8.9
UK bank rate(6) 5.5 5.5 1.0 1.0 1.0
US GDP(1) 2.2 (2.1) (0.4) 3.1 1.7
US unemployment(4) 4.1 5.6 6.8 5.4 5.0
US HPI(5) 2.3 (9.4) (1.7) 7.6 5.6
US federal funds rate(6) 5.5 5.4 1.5 1.5 1.5
Downside 1
UK GDP(1) 0.9 (0.5) 0.3 2.0 1.5
UK unemployment(2) 4.4 5.1 5.9 5.0 4.6
UK HPI(3) 0.1 (8.1) (2.1) 10.5 6.0
UK bank rate(6) 5.3 4.7 2.2 2.1 2.1
US GDP(1) 2.2 (0.2) 0.8 2.6 1.9
US unemployment(4) 4.1 4.9 5.5 4.8 4.6
US HPI(5) 2.7 (3.3) 0.7 5.3 4.4
US federal funds rate(6) 5.2 4.4 2.3 2.3 2.4
Upside 2
UK GDP(1) 1.1 3.5 3.4 2.8 2.4
UK unemployment(2) 4.4 3.7 3.5 3.5 3.5
UK HPI(3) 2.3 14.0 6.9 4.0 4.3
UK bank rate(6) 5.0 3.3 2.3 2.3 2.3
US GDP(1) 2.4 2.9 3.0 2.8 2.8
US unemployment(4) 4.0 3.6 3.5 3.5 3.5
US HPI(5) 4.3 4.5 4.9 4.5 4.6
US federal funds rate(6) 5.0 2.9 2.3 2.3 2.3
Upside 1
UK GDP(1) 1.0 2.4 2.5 2.2 2.0
UK unemployment(2) 4.4 4.1 4.0 4.0 4.0
UK HPI(3) 1.5 8.2 4.8 4.3 3.7
UK bank rate(6) 5.0 3.6 2.9 2.8 2.8
US GDP(1) 2.3 2.3 2.5 2.4 2.4
US unemployment(4) 4.0 3.9 3.9 3.9 3.9
US HPI(5) 3.8 3.8 4.0 3.8 3.8
US federal funds rate(6) 5.0 3.2 2.7 2.6 2.8
1 Average Real GDP seasonally adjusted change in year.
2 Average UK unemployment rate 16-year+.
3 Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to
prior year end.
4 Average US civilian unemployment rate 16-year+.
5 Change in year end US HPI = FHFA House Price Index, relative to prior year
end.
6 Average rate
As at 30.06.24 2024 2025 2026 2027 2028
Baseline % % % % %
UK GDP(1) 0.7 1.2 1.6 1.7 1.6
UK unemployment(2) 4.3 4.4 4.4 4.4 4.4
UK HPI(3) (1.2) 1.6 3.0 4.4 3.2
UK bank rate(6) 5.0 4.3 3.8 3.6 3.5
US GDP(1) 2.3 1.7 2.0 2.0 2.0
US unemployment(4) 4.0 4.1 4.1 4.1 4.1
US HPI(5) 3.3 3.0 3.3 3.3 3.3
US federal funds rate(6) 5.3 4.4 4.0 3.8 3.8
Downside 2
UK GDP(1) 0.2 (3.2) 0.5 2.1 1.3
UK unemployment(2) 4.4 6.4 6.9 5.3 4.7
UK HPI(3) (3.6) (23.3) 2.8 15.6 7.7
UK bank rate(6) 5.9 4.0 1.0 1.0 1.0
US GDP(1) 1.8 (2.9) 1.2 2.8 1.6
US unemployment(4) 4.2 6.3 6.4 5.3 4.9
US HPI(5) 0.9 (10.7) 2.0 8.0 5.3
US federal funds rate(6) 5.9 4.1 1.5 1.5 1.5
Downside 1
UK GDP(1) 0.4 (1.0) 1.0 1.9 1.5
UK unemployment(2) 4.3 5.4 5.6 4.9 4.6
UK HPI(3) (2.4) (11.5) 2.9 9.9 5.5
UK bank rate(6) 5.5 4.1 2.4 2.3 2.3
US GDP(1) 2.0 (0.6) 1.6 2.4 1.8
US unemployment(4) 4.1 5.2 5.3 4.7 4.5
US HPI(5) 2.1 (4.0) 2.7 5.6 4.3
US federal funds rate(6) 5.6 4.3 2.8 2.6 2.6
Upside 2
UK GDP(1) 1.1 3.9 3.2 2.6 2.3
UK unemployment(2) 4.1 3.4 3.4 3.3 3.2
UK HPI(3) 4.9 14.2 6.8 2.7 3.8
UK bank rate(6) 4.9 3.4 2.6 2.6 2.5
US GDP(1) 2.6 3.2 2.9 2.8 2.8
US unemployment(4) 3.7 3.5 3.4 3.4 3.4
US HPI(5) 5.3 3.9 5.0 4.6 4.6
US federal funds rate(6) 5.2 3.7 3.1 2.8 2.8
Upside 1
UK GDP(1) 0.9 2.5 2.4 2.2 2.0
UK unemployment(2) 4.2 3.9 3.9 3.9 3.8
UK HPI(3) 1.8 7.8 4.9 3.6 3.5
UK bank rate(6) 5.0 3.8 3.2 3.1 3.0
US GDP(1) 2.4 2.5 2.4 2.4 2.4
US unemployment(4) 3.8 3.8 3.8 3.8 3.8
US HPI(5) 4.3 3.5 4.2 3.9 3.9
US federal funds rate(6) 5.3 4.1 3.5 3.3 3.3
1 Average Real GDP seasonally adjusted change in year.
2 Average UK unemployment rate 16-year+.
3 Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to
prior year end.
4 Average US civilian unemployment rate 16-year+.
5 Change in year end US HPI = FHFA House Price Index, relative to prior year
end.
6 Average rate.
As at 31.12.23 2023 2024 2025 2026 2027
Baseline % % % % %
UK GDP(1) 0.5 0.3 1.2 1.6 1.6
UK unemployment(2) 4.2 4.7 4.7 4.8 5.0
UK HPI(3) (3.3) (5.1) 0.7 3.1 5.3
UK bank rate(6) 4.7 4.9 4.1 3.8 3.5
US GDP(1) 2.4 1.3 1.7 1.9 1.9
US unemployment(4) 3.7 4.3 4.3 4.3 4.3
US HPI(5) 5.4 3.4 3.0 3.3 3.3
US federal funds rate(6) 5.1 5.0 3.9 3.8 3.8
Downside 2
UK GDP(1) 0.5 (1.5) (2.6) 2.4 1.6
UK unemployment(2) 4.2 5.2 7.9 6.3 5.5
UK HPI(3) (3.3) (19.3) (16.8) 14.5 12.4
UK bank rate(6) 4.7 6.6 1.3 1.0 1.0
US GDP(1) 2.4 (0.6) (2.0) 3.1 2.0
US unemployment(4) 3.7 5.2 7.2 5.9 5.2
US HPI(5) 5.4 (6.5) (5.7) 7.2 6.4
US federal funds rate(6) 5.1 6.3 1.8 1.5 1.5
Downside 1
UK GDP(1) 0.5 (0.6) (0.7) 2.0 1.6
UK unemployment(2) 4.2 4.9 6.3 5.6 5.2
UK HPI(3) (3.3) (12.4) (8.3) 8.7 8.8
UK bank rate(6) 4.7 5.8 2.7 2.5 2.3
US GDP(1) 2.4 0.3 (0.2) 2.5 1.9
US unemployment(4) 3.7 4.7 5.8 5.1 4.8
US HPI(5) 5.4 (1.7) (1.4) 5.2 4.8
US federal funds rate(6) 5.1 5.7 2.9 2.8 2.8
Upside 2
UK GDP(1) 0.5 2.4 3.7 2.9 2.4
UK unemployment(2) 4.2 3.9 3.5 3.6 3.6
UK HPI(3) (3.3) 7.8 7.6 4.5 5.6
UK bank rate(6) 4.7 4.3 2.7 2.5 2.5
US GDP(1) 2.4 2.8 3.1 2.8 2.8
US unemployment(4) 3.7 3.5 3.6 3.6 3.6
US HPI(5) 5.4 6.1 4.3 4.5 4.6
US federal funds rate(6) 5.1 4.3 2.9 2.8 2.8
Upside 1
UK GDP(1) 0.5 1.4 2.5 2.3 2.0
UK unemployment(2) 4.2 4.3 4.1 4.2 4.3
UK HPI(3) (3.3) 1.2 4.1 3.8 5.4
UK bank rate(6) 4.7 4.6 3.4 3.3 3.0
US GDP(1) 2.4 2.0 2.4 2.4 2.4
US unemployment(4) 3.7 3.9 3.9 4.0 4.0
US HPI(5) 5.4 4.7 3.7 3.9 3.9
US federal funds rate(6) 5.1 4.7 3.5 3.3 3.3
1 Average Real GDP seasonally adjusted change in year.
2 Average UK unemployment rate 16-year+.
3 Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to
prior year end.
4 Average US civilian unemployment rate 16-year+.
5 Change in year end US HPI = FHFA House Price Index, relative to prior year
end.
6 Average rate.
Scenario probability weighting Upside 2 Upside 1 Baseline Downside 1 Downside 2
% % % % %
As at 30.09.24
Scenario probability weighting 16.8 26.4 32.7 15.9 8.2
As at 30.06.24
Scenario probability weighting 16.5 26.1 32.6 16.2 8.6
As at 31.12.23
Scenario probability weighting 13.8 24.7 32.4 18.3 10.8
Treasury and Capital Risk
Regulatory minimum requirements
Capital
The Group's Overall Capital Requirement for CET1 remained at 12.0% 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 1.0% Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each jurisdiction
in which the Group has exposures. The buffer rates set by other national
authorities for non-UK exposures are not currently material.
The Group's Pillar 2A requirement as per the PRA's Individual Capital
Requirement is 4.6% of which at least 56.25% needs to be met with CET1
capital, equating to 2.6% of RWAs. The Pillar 2A requirement, based on a point
in time assessment, has been set as a proportion of RWAs and is subject to at
least annual review.
The Group's CET1 target ratio of 13-14% takes into account headroom above
requirements which includes a confidential institution-specific PRA buffer.
The Group remains above its minimum capital regulatory requirements including
the PRA buffer.
Leverage
The Group is subject to a UK leverage ratio requirement of 4.1%. 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 0.3%. The Group is also 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.
MREL
The Group is required to meet the higher of: (i) two times the sum of 8%
Pillar 1 and 4.6% Pillar 2A equating to 25.2% of RWAs; and (ii) 6.75% of
leverage exposures. In addition, the higher of regulatory capital and leverage
buffers apply. CET1 capital cannot be counted towards both MREL and the
buffers, meaning that the buffers, including the above mentioned confidential
institution-specific PRA buffer, will effectively be applied above MREL
requirements.
Significant regulatory updates in the period
Following its 12 December 2023 publication of 'Implementation of the Basel 3.1
standards near-final part 1' (PS12/23), covering Credit Valuation Adjustments,
Counterparty Credit Risk, Market Risk and Operational Risk, on 12 September
2024 the PRA published its near-final policy statement 'Implementation of the
Basel 3.1 standards near-final part 2' (PS9/24) covering the remaining
aspects of the Basel 3.1 standards. This covered Credit Risk, Credit Risk
Mitigation, the Output Floor, and Reporting and Disclosure requirements.
Additionally, the policy statement confirmed that the implementation date for
Basel 3.1 within the United Kingdom will be deferred by 6 months to 1 January
2026.
Capital ratios(1,2) As at 30.09.24 As at 30.06.24 As at 31.12.23
CET1 13.8% 13.6% 13.8%
T1 17.3% 17.3% 17.7%
Total regulatory capital 19.9% 19.9% 20.1%
MREL ratio as a percentage of total RWAs 34.9% 33.5% 33.6%
Own funds and eligible liabilities £m £m £m
Total equity excluding non-controlling interests per the balance sheet 70,972 71,173 71,204
Less: other equity instruments (recognised as AT1 capital) (11,739) (12,959) (13,259)
Adjustment to retained earnings for foreseeable ordinary share dividends (493) (645) (795)
Adjustment to retained earnings for foreseeable repurchase of shares (385) (222) -
Adjustment to retained earnings for foreseeable other equity coupons (40) (41) (43)
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1,850) (1,887) (1,901)
Goodwill and intangible assets (8,111) (7,835) (7,790)
Deferred tax assets that rely on future profitability excluding temporary (1,482) (1,630) (1,630)
differences
Fair value reserves related to gains or losses on cash flow hedges 2,298 3,799 3,707
Excess of expected losses over impairment (440) (324) (296)
Gains or losses on liabilities at fair value resulting from own credit 656 622 136
Defined benefit pension fund assets (2,534) (2,564) (2,654)
Direct and indirect holdings by an institution of own CET1 instruments (5) (5) (20)
Adjustment under IFRS 9 transitional arrangements 83 123 288
Other regulatory adjustments 100 90 357
CET1 capital 47,030 47,695 47,304
AT1 capital
Capital instruments and related share premium accounts 11,755 13,000 13,263
Other regulatory adjustments and deductions (16) (41) (60)
AT1 capital 11,739 12,959 13,203
T1 capital 58,769 60,654 60,507
T2 capital
Capital instruments and related share premium accounts 8,587 8,836 7,966
Qualifying T2 capital (including minority interests) issued by subsidiaries 379 385 569
Credit risk adjustments (excess of impairment over expected losses) - 39 -
Other regulatory adjustments and deductions (19) (43) (160)
Total regulatory capital 67,716 69,871 68,882
Less : Ineligible T2 capital (including minority interests) issued by (379) (385) (569)
subsidiaries
Eligible liabilities 51,330 48,299 46,995
Total own funds and eligible liabilities(3) 118,667 117,785 115,308
Total RWAs 340,401 351,433 342,717
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements in accordance with UK CRR. This includes IFRS 9 transitional
arrangements and the grandfathering of certain capital instruments until 28
June 2025.
2 The fully loaded CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays PLC AT1 securities, was 13.8%, with £46.9bn of
CET1 capital and £340.4bn of RWAs calculated without applying the
transitional arrangements in accordance with UK CRR.
3 As at 30 September 2024, the Group's MREL requirement, excluding the PRA
buffer, was to hold £102.6bn of own funds and eligible liabilities equating
to 30.1% of RWAs. The Group remains above its MREL regulatory requirement
including the PRA buffer.
Movement in CET1 capital Three months ended 30.09.24 Nine months ended 30.09.24
£m £m
Opening CET1 capital 47,695 47,304
Profit for the period attributable to equity holders 1,817 5,114
Own credit relating to derivative liabilities 3 27
Ordinary share dividends paid and foreseen (273) (918)
Purchased and foreseeable share repurchase (750) (1,750)
Other equity coupons paid and foreseen (252) (760)
Increase in retained regulatory capital generated from earnings 545 1,713
Net impact of share schemes 164 94
Fair value through other comprehensive income reserve 119 (150)
Currency translation reserve (1,244) (1,328)
Other reserves (8) (111)
Decrease in other qualifying reserves (969) (1,495)
Pension remeasurements within reserves (30) (127)
Defined benefit pension fund asset deduction 30 120
Net impact of pensions - (7)
Additional value adjustments (PVA) 37 51
Goodwill and intangible assets (276) (321)
Deferred tax assets that rely on future profitability excluding those arising 148 148
from temporary differences
Excess of expected loss over impairment (116) (144)
Direct and indirect holdings by an institution of own CET1 instruments - 15
Adjustment under IFRS 9 transitional arrangements (40) (205)
Other regulatory adjustments 6 (29)
Decrease in regulatory capital due to adjustments and deductions (241) (485)
Closing CET1 capital 47,030 47,030
CET1 capital decreased £0.3bn to £47.0bn (December 2023: £47.3bn).
Significant movements in the period were:
• £5.1bn of capital generated from profit partially offset by
distributions of £3.4bn comprising:
- £1.8bn of share buybacks announced with FY23 and H124 results
- £0.9bn accrual towards the FY24 dividend
- £0.8bn of equity coupons paid and foreseen
• £1.5bn decrease in other qualifying reserves including a reduction in
the currency translation reserve due to the strengthening of GBP against USD
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 30.09.24 £m £m £m £m £m £m £m £m £m £m
Barclays UK 9,606 55,792 100 13 - 52 199 - 11,715 77,477
Barclays UK Corporate Bank 3,790 14,275 93 389 - 10 5 507 3,024 22,093
Barclays Private Bank & Wealth Management 4,846 482 80 24 - 11 41 305 1,546 7,335
Barclays Investment Bank 38,757 47,864 20,458 23,709 118 2,466 13,087 23,559 24,179 194,197
Barclays US Consumer Bank 18,316 839 - - - - - - 4,051 23,206
Head Office 6,488 8,346 1 15 - 3 1 196 1,043 16,093
Barclays Group 81,803 127,598 20,732 24,150 118 2,542 13,333 24,567 45,558 340,401
As at 30.06.24
Barclays UK 9,349 55,055 101 12 - 72 169 - 11,715 76,473
Barclays UK Corporate Bank 4,033 13,881 91 327 - 12 3 487 3,024 21,858
Barclays Private Bank & Wealth Management 4,612 467 85 33 - 13 - 293 1,546 7,049
Barclays Investment Bank 41,151 50,854 20,426 23,636 159 2,897 14,173 25,811 24,179 203,286
Barclays US Consumer Bank 19,462 917 - - - - - - 4,051 24,430
Head Office 6,470 10,609 1 21 - 4 1 188 1,043 18,337
Barclays Group 85,077 131,783 20,704 24,029 159 2,998 14,346 26,779 45,558 351,433
As at 31.12.23
Barclays UK 10,472 50,761 178 - - 94 274 - 11,715 73,494
Barclays UK Corporate Bank 3,458 13,415 262 167 - 14 2 541 3,024 20,883
Barclays Private Bank & Wealth Management 4,611 455 182 27 - 30 1 322 1,546 7,174
Barclays Investment Bank 37,749 52,190 18,512 21,873 159 3,248 14,623 24,749 24,179 197,282
Barclays US Consumer Bank 19,824 966 - - - - - - 4,051 24,841
Head Office 6,772 10,951 1 21 - 6 1 248 1,043 19,043
Barclays Group 82,886 128,738 19,135 22,088 159 3,392 14,901 25,860 45,558 342,717
Movement analysis of RWAs Credit risk Counterparty credit risk Market risk Operational risk Total RWAs
£m £m £m £m £m
Opening RWAs (as at 31.12.23) 211,624 44,774 40,761 45,558 342,717
Book size (69) 4,115 (2,123) - 1,923
Acquisitions and disposals (856) - - - (856)
Book quality (1,054) (245) - - (1,299)
Model updates 196 680 - - 876
Methodology and policy 4,155 398 - - 4,553
Foreign exchange movements(1) (4,595) (2,180) (738) - (7,513)
Total RWA movements (2,223) 2,768 (2,861) - (2,316)
Closing RWAs (as at 30.09.24) 209,401 47,542 37,900 45,558 340,401
1 Foreign exchange movements does not include the impact of foreign exchange for
modelled market risk or operational risk.
Overall RWAs decreased £2.3bn to £340.4bn (December 2023: £342.7bn).
Credit risk RWAs decreased £2.2bn:
• A £0.9bn decrease in acquisitions and disposals due to the sale of
the performing Italian mortgage portfolio
• A £1.1bn decrease in book quality RWAs mainly driven by changes in
risk parameters primarily within IB
• A £4.2bn increase in methodology and policy including regulatory
model changes in Barclays UK
• A £4.6bn decrease as a result of foreign exchange movements primarily
due to the strengthening of GBP against USD
Counterparty Credit risk RWAs increased £2.8bn:
• A £4.1bn increase in book size including the seasonal increase
relative to FY23
• A £2.2bn decrease as a result of foreign exchange movements primarily
due to the strengthening of GBP against USD
Market risk RWAs decreased £2.9bn:
• A £2.1bn decrease in book size due to trading activity
Leverage ratios(1,2) As at 30.09.24 As at 30.06.24 As at 31.12.23
£m £m £m
UK leverage ratio(3) 4.9% 5.0% 5.2%
T1 capital 58,769 60,654 60,507
UK leverage exposure 1,197,445 1,222,722 1,168,275
Average UK leverage ratio 4.6% 4.7% 4.8%
Average T1 capital 59,328 60,617 60,343
Average UK leverage exposure 1,277,714 1,300,424 1,266,880
1 Capital and leverage measures are calculated applying the transitional
arrangements in accordance with UK CRR.
2 Fully loaded UK leverage ratio was 4.9%, with £58.7bn of T1 capital and
£1,197.4bn of leverage exposure. Fully loaded average UK leverage ratio was
4.6% with £59.2bn of T1 capital and £1,277.6bn of leverage exposure. Fully
loaded UK leverage ratios are calculated without applying the transitional
arrangements in accordance with UK CRR.
3 Although the leverage ratio is expressed in terms of T1 capital, the leverage
ratio buffers and 75% of the minimum requirement must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.3bn
and against the 0.3% CCLB was £3.6bn.
The UK leverage ratio decreased to 4.9% (December 2023: 5.2%) due to a
reduction in Tier 1 Capital of £1.7bn and increase in exposure of £29.2bn to
£1,197.4bn (December 2023: £1,168.3bn). The decrease in capital was driven
by the redemption of an AT1 instrument during the period. The increase in
exposure was largely driven by an increase in trading securities and secured
lending in IB, partially offset by the strengthening of GBP against USD.
Condensed Consolidated Financial Statements
Condensed consolidated income statement (unaudited)
Nine months ended 30.09.24 Nine months ended 30.09.23
£m £m
Total income 19,824 19,780
Operating expenses excluding UK regulatory levies & litigation and conduct (11,951) (11,979)
UK regulatory levies(1) (93) -
Litigation and conduct (99) (32)
Operating expenses (12,143) (12,011)
Other net income 37 7
Profit before impairment 7,718 7,776
Credit impairment charges (1,271) (1,329)
Profit before tax 6,447 6,447
Tax charge (1,304) (1,257)
Profit after tax 5,143 5,190
Attributable to:
Shareholders of the parent 4,351 4,385
Other equity holders 763 766
Equity holders of the parent 5,114 5,151
Non-controlling interests 29 39
Profit after tax 5,143 5,190
Earnings per share
Basic earnings per ordinary share 29.3p 28.2p
1 Comprises the impact of the BoE levy scheme. Please refer to Group Finance
Director's Review, Other matters for details.
Condensed consolidated balance sheet (unaudited)
As at 30.09.24 As at 31.12.23
Assets £m £m
Cash and balances at central banks 215,061 224,634
Cash collateral and settlement balances 141,703 108,889
Debt securities at amortised cost 64,637 56,749
Loans and advances at amortised cost to banks 8,120 9,459
Loans and advances at amortised cost to customers 326,427 333,288
Reverse repurchase agreements and other similar secured lending at amortised 3,579 2,594
cost
Trading portfolio assets 187,400 174,605
Financial assets at fair value through the income statement 214,257 206,651
Derivative financial instruments 258,622 256,836
Financial assets at fair value through other comprehensive income 80,778 71,836
Investments in associates and joint ventures 894 879
Goodwill and intangible assets 8,123 7,794
Current tax assets 144 121
Deferred tax assets 5,569 5,960
Other assets 15,821 17,192
Total assets 1,531,135 1,477,487
Liabilities
Deposits at amortised cost from banks 18,037 14,472
Deposits at amortised cost from customers 524,717 524,317
Cash collateral and settlement balances 135,060 94,084
Repurchase agreements and other similar secured borrowings at amortised cost 45,250 41,601
Debt securities in issue 89,424 96,825
Subordinated liabilities 11,322 10,494
Trading portfolio liabilities 64,284 58,669
Financial liabilities designated at fair value 305,328 297,539
Derivative financial instruments 249,861 250,044
Current tax liabilities 625 529
Deferred tax liabilities 22 22
Other liabilities 15,573 17,027
Total liabilities 1,459,503 1,405,623
Equity
Called up share capital and share premium 4,205 4,288
Other reserves (476) (77)
Retained earnings 55,504 53,734
Shareholders' equity attributable to ordinary shareholders of the parent 59,233 57,945
Other equity instruments 11,739 13,259
Total equity excluding non-controlling interests 70,972 71,204
Non-controlling interests 660 660
Total equity 71,632 71,864
Total liabilities and equity 1,531,135 1,477,487
Condensed consolidated statement of changes in equity (unaudited)
Called up share capital and share premium Other equity instruments Other reserves Non-controlling interests
Total equity
Retained earnings Total
Nine months ended 30.09.2024 £m £m £m £m £m £m £m
Balance as at 1 January 2024 4,288 13,259 (77) 53,734 71,204 660 71,864
Profit after tax - 763 - 4,351 5,114 29 5,143
Currency translation movements - - (1,328) - (1,328) - (1,328)
Fair value through other comprehensive income reserve - - (150) - (150) - (150)
Cash flow hedges - - 1,409 - 1,409 - 1,409
Retirement benefit remeasurements - - - (127) (127) - (127)
Own credit - - (491) - (491) - (491)
Total comprehensive income for the period - 763 (560) 4,224 4,427 29 4,456
Employee share schemes and hedging thereof 80 - - 740 820 - 820
Issue and redemption of other equity instruments - (1,508) - (97) (1,605) - (1,605)
Other equity instruments coupon paid - (763) - - (763) - (763)
Vesting of employee share schemes - - (4) (495) (499) - (499)
Dividends paid - - - (1,221) (1,221) (29) (1,250)
Repurchase of shares (163) - 163 (1,373) (1,373) - (1,373)
Other movements - (12) 2 (8) (18) - (18)
Balance as at 30 September 2024 4,205 11,739 (476) 55,504 70,972 660 71,632
Three months ended 30.09.2024 £m £m £m £m £m £m £m
Balance as at 1 July 2024 4,256 12,959 (882) 54,840 71,173 660 71,833
Profit after tax - 253 - 1,564 1,817 3 1,820
Currency translation movements - - (1,244) - (1,244) - (1,244)
Fair value through other comprehensive income reserve - - 119 - 119 - 119
Cash flow hedges - - 1,499 - 1,499 - 1,499
Retirement benefit remeasurements - - - (30) (30) - (30)
Own credit - - (29) - (29) - (29)
Total comprehensive income for the period - 253 345 1,534 2,132 3 2,135
Employee share schemes and hedging thereof 15 - - 158 173 - 173
Issue and redemption of other equity instruments - (1,245) - (5) (1,250) - (1,250)
Other equity instruments coupon paid - (253) - - (253) - (253)
Vesting of employee share schemes - - (7) (7) (14) - (14)
Dividends paid - - - (425) (425) (3) (428)
Repurchase of shares (66) - 66 (591) (591) - (591)
Other movements - 25 2 - 27 - 27
Balance as at 30 September 2024 4,205 11,739 (476) 55,504 70,972 660 71,632
As at 30.09.24 As at 31.12.23
Other Reserves £m £m
Currency translation reserve 2,343 3,671
Fair value through other comprehensive income reserve (1,516) (1,366)
Cash flow hedging reserve (2,298) (3,707)
Own credit reserve (729) (240)
Other reserves and treasury shares 1,724 1,565
Total (476) (77)
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance measures
included in this document provide valuable information to the readers of the
financial statements, as they enable the reader to identify a more consistent
basis for comparing the businesses' performance between financial periods, and
provide more detail concerning the elements of performance which the managers
of these businesses are most directly able to influence or are relevant for an
assessment of the Group. They also reflect an important aspect of the way in
which operating targets are defined and performance is monitored by
management.
However, any non-IFRS performance measures in this document are not a
substitute for IFRS measures and readers should consider the IFRS measures as
well.
Non-IFRS performance measures glossary
Measure Definition
Loan: deposit ratio Total loans and advances at amortised cost divided by total deposits at
amortised cost.
Attributable profit Profit after tax attributable to ordinary shareholders of the parent.
Period end tangible equity refers to:
Period end tangible shareholders' equity (for Barclays Group) Shareholders' equity attributable to ordinary shareholders of the parent,
adjusted for the deduction of goodwill and intangible assets.
Period end allocated tangible equity (for businesses) Allocated tangible equity is calculated as 13.5% (2023: 13.5%) 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 equity refers to:
Average tangible shareholders' equity (for Barclays Group) Calculated as the average of the previous month's period end tangible
shareholders' equity and the current month's period end tangible shareholders'
equity. The average tangible shareholders' equity for the period is the
average of the monthly averages within that period.
Average allocated tangible equity (for businesses) 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 tangible equity (RoTE) refers to:
Return on average tangible shareholders' equity (for Barclays Group) Annualised Group attributable profit, as a proportion of average tangible
shareholders' equity. The components of the calculation have been included on
pages 43 to 44.
Return on average allocated tangible equity (for businesses) Annualised business attributable profit, as a proportion of that business's
average allocated tangible equity. The components of the calculation have been
included on pages 43 to 45.
Operating expenses excluding litigation and conduct A measure of total operating expenses excluding litigation and conduct
charges.
Operating costs A measure of total operating expenses excluding litigation and conduct charges
and UK regulatory levies.
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total impairment charges divided by
total gross loans and advances held at amortised cost at the balance sheet
date.
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 24.
Tangible net asset value per share Calculated by dividing shareholders' equity, excluding non-controlling
interests and other equity instruments, less goodwill and intangible assets,
by the number of issued ordinary shares. The components of the calculation
have been included on page 47.
Profit before impairment Calculated by excluding credit impairment charges or releases from profit
before tax.
Structural cost actions Cost actions taken to improve future financial performance.
Group net interest income excluding Barclays Investment Bank and Head Office A measure of Barclays Group net interest income, excluding the net interest
income reported in Barclays Investment Bank and Head Office.
Inorganic activity Inorganic activity refers to certain inorganic transactions announced as part
of the FY23 Investor Update designed to improve Group RoTE beyond 2024. In
Q324 YTD this included the £220m loss on sale of the performing Italian
retail mortgage portfolio and the £20m loss on disposal from the German
consumer finance business, both incurred in H124. There were no inorganic
transactions in Q324. For FY24 this is expected to also include the loss on
sale of the non-performing Italian mortgage portfolio and the impact of the
Tesco Bank acquisition.
Performance measures excluding the impact of inorganic activity Calculated by excluding the impact of inorganic activity from performance
measures. The components of the calculations for Barclays Group and businesses
have been included on page 5 and on page 46.
Returns
Nine months ended 30.09.24
Barclays UK Barclays UK Corporate Bank Barclays Private Bank and Wealth Management Barclays Investment Bank Barclays US Consumer Bank Head Office Barclays Group
Return on average tangible equity £m £m £m £m £m £m £m
Attributable profit/(loss) 1,684 392 225 2,266 208 (424) 4,351
£bn £bn £bn £bn £bn £bn £bn
Average equity 14.4 3.0 1.1 29.8 3.7 6.3 58.3
Average goodwill and intangibles (3.9) - (0.1) - (0.4) (3.5) (7.9)
Average tangible equity 10.5 3.0 1.0 29.8 3.3 2.8 50.4
Return on average tangible equity 21.4% 17.3% 29.5% 10.1% 8.4% n/m 11.5%
Nine months ended 30.09.23
Barclays UK Barclays UK Corporate Bank Barclays Private Bank and Wealth Management Barclays Investment Bank Barclays US Consumer Bank Head Office Barclays Group
Return on average tangible equity £m £m £m £m £m £m £m
Attributable profit/(loss) 1,580 525 283 2,190 134 (327) 4,385
£bn £bn £bn £bn £bn £bn £bn
Average equity 14.0 2.9 1.1 29.0 3.9 4.6 55.5
Average goodwill and intangibles (3.8) - (0.1) - (0.7) (3.9) (8.5)
Average tangible equity 10.2 2.9 1.0 29.0 3.2 0.7 47.0
Return on average tangible equity 20.6% 24.4% 37.1% 10.1% 5.7% n/m 12.5%
Barclays Group
Return on average tangible shareholders' equity Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
£m £m £m £m £m £m £m £m
Attributable profit/(loss) 1,564 1,237 1,550 (111) 1,274 1,328 1,783 1,036
£bn £bn £bn £bn £bn £bn £bn £bn
Average shareholders' equity 59.1 57.7 58.3 57.1 55.1 55.4 55.9 54.9
Average goodwill and intangibles (8.1) (7.9) (7.8) (8.2) (8.6) (8.7) (8.3) (8.2)
Average tangible shareholders' equity 51.0 49.8 50.5 48.9 46.5 46.7 47.6 46.7
Return on average tangible shareholders' equity 12.3% 9.9% 12.3% (0.9)% 11.0% 11.4% 15.0% 8.9%
Barclays UK
Return on average allocated tangible equity Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
£m £m £m £m £m £m £m £m
Attributable profit 621 584 479 382 531 534 515 474
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 14.5 14.4 14.3 14.1 14.0 14.2 13.9 13.7
Average goodwill and intangibles (3.9) (3.9) (3.9) (3.9) (3.9) (4.0) (3.6) (3.5)
Average allocated tangible equity 10.6 10.5 10.4 10.2 10.1 10.2 10.3 10.2
Return on average allocated tangible equity 23.4% 22.3% 18.5% 14.9% 21.0% 20.9% 20.0% 18.7%
Barclays UK Corporate Bank
Return on average allocated tangible equity Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
£m £m £m £m £m £m £m £m
Attributable profit 144 135 113 59 129 239 157 131
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 3.1 3.0 3.0 2.8 2.8 2.9 2.9 2.9
Average goodwill and intangibles - - - - - - - -
Average allocated tangible equity 3.1 3.0 3.0 2.8 2.8 2.9 2.9 2.9
Return on average allocated tangible equity 18.8% 18.0% 15.2% 8.4% 18.3% 32.9% 21.7% 17.8%
Barclays Private Bank and Wealth Management
Return on average allocated tangible equity Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
£m £m £m £m £m £m £m £m
Attributable profit 74 77 74 47 102 91 90 92
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.2
Average goodwill and intangibles (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)
Average allocated tangible equity 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1
Return on average allocated tangible equity 29.0% 30.8% 28.7% 19.1% 41.2% 35.9% 34.5% 34.9%
Barclays Investment Bank
Return on average allocated tangible equity Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
£m £m £m £m £m £m £m £m
Attributable profit/(loss) 652 715 899 (149) 580 562 1,048 313
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 29.5 29.9 30.0 28.9 28.8 29.0 29.1 30.9
Average goodwill and intangibles - - - - - - - -
Average allocated tangible equity 29.5 29.9 30.0 28.9 28.8 29.0 29.1 30.9
Return on average allocated tangible equity 8.8% 9.6% 12.0% (2.1)% 8.0% 7.7% 14.4% 4.0%
Barclays US Consumer Bank
Return on average allocated tangible equity Q324 Q224 Q124 Q423 Q323 Q223 Q123 Q422
£m £m £m £m £m £m £m £m
Attributable profit/(loss) 89 75 44 (3) 3 72 59 101
£bn £bn £bn £bn £bn £bn £bn £bn
Average allocated equity 3.8 3.6 3.6 3.6 3.8 3.9 3.9 4.1
Average goodwill and intangibles (0.5) (0.3) (0.3) (0.3) (0.7) (0.8) (0.8) (0.9)
Average allocated tangible equity 3.3 3.3 3.3 3.3 3.1 3.1 3.1 3.2
Return on average allocated tangible equity 10.9% 9.2% 5.3% (0.3)% 0.4% 9.3% 7.5% 12.6%
Performance measures excluding the impact of inorganic activity
Nine months ended 30.09.24
Barclays UK Barclays UK Corporate Bank Barclays Private Bank and Wealth Management Barclays Investment Bank Barclays US Consumer Bank Head Office Barclays Group
£m £m £m £m £m £m £m
Total income 5,659 1,322 958 9,198 2,469 218 19,824
Inorganic activity - - - - - (240) (240)
Total income excluding inorganic activity 5,659 1,322 958 9,198 2,469 458 20,064
Total operating expenses (3,114) (708) (657) (5,818) (1,193) (653) (12,143)
Cost: income ratio excluding inorganic activity 55% 54% 69% 63% 48% n/a 61%
Attributable profit/(loss) 1,684 392 225 2,266 208 (424) 4,351
Post-tax impact of inorganic activity - - - - - (233) (233)
Attributable profit/(loss) excluding inorganic activity 1,684 392 225 2,266 208 (191) 4,584
Average tangible equity (£bn) 10.5 3.0 1.0 29.8 3.3 2.8 50.4
Return on average tangible equity excluding inorganic activity 21.4% 17.3% 29.5% 10.1% 8.4% n/a 12.1%
Three months ended 30.09.24
Barclays UK Barclays UK Corporate Bank Barclays Private Bank and Wealth Management Barclays Investment Bank Barclays US Consumer Bank Head Office Barclays Group
£m £m £m £m £m £m £m
Total income 1,946 445 326 2,851 791 188 6,547
Inorganic activity - - - - - - -
Total income excluding inorganic activity 1,946 445 326 2,851 791 188 6,547
Total operating expenses (1,006) (222) (221) (1,916) (393) (204) (3,962)
Cost: income ratio excluding inorganic activity 52% 50% 68% 67% 50% n/a 61%
Attributable profit/(loss) 621 144 74 652 89 (16) 1,564
Post-tax impact of inorganic activity - - - - - - -
Attributable profit/(loss) excluding inorganic activity 621 144 74 652 89 (16) 1,564
Average tangible equity (£bn) 10.6 3.1 1.0 29.5 3.3 3.5 51.0
Return on average tangible equity excluding inorganic activity 23.4% 18.8% 29.0% 8.8% 10.9% n/a 12.3%
Tangible net asset value per share As at 30.09.24 As at 31.12.23 As at 30.09.23
£m £m £m
Total equity excluding non-controlling interests 70,972 71,204 68,315
Other equity instruments (11,739) (13,259) (11,857)
Goodwill and intangibles (8,123) (7,794) (8,265)
Tangible shareholders' equity attributable to ordinary shareholders of the 51,110 50,151 48,193
parent
m m m
Shares in issue 14,571 15,155 15,239
p p p
Tangible net asset value per share 351 331 316
Shareholder Information
Results timetable(1) Date
2024 Full Year Results and Annual Report 13 February 2025
% Change(3)
Exchange rates(2) 30.09.24 30.06.24 31.12.23 30.09.23 30.06.24 31.12.23 30.09.23
Period end - USD/GBP 1.34 1.26 1.28 1.22 6% 5% 10%
YTD average - USD/GBP 1.28 1.30 1.24 1.24 (2)% 3% 3%
3 month average - USD/GBP 1.30 1.26 1.24 1.27 3% 5% 2%
Period end - EUR/GBP 1.20 1.18 1.15 1.15 2% 4% 4%
YTD average - EUR/GBP 1.17 1.19 1.15 1.15 (2)% 2% 2%
3 month average - EUR/GBP 1.18 1.18 1.15 1.16 -% 3% 2%
Share price data
Barclays PLC (p) 224.55 208.90 153.78 158.94
Barclays PLC number of shares (m)(4) 14,571 14,826 15,155 15,239
For further information please contact
Investor relations Media relations
Marina Shchukina +44 (0) 20 7116 2526 Tom Hoskin +44 (0) 20 7116 4755
More information on Barclays can be found on our website: home.barclays
(https://home.barclays)
Registered office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000.
Company number: 48839.
Registrar
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United
Kingdom.
Tel: +44 (0)371 384 2055 (UK and International telephone number)(5)(.)
American Depositary Receipts (ADRs)
EQ Shareowner Services
P.O. Box 64504
St. Paul, MN 55164-0504
United States of America
shareowneronline.com
Toll Free Number: +1 800-990-1135
Outside the US: +1 651-453-2128
Delivery of ADR certificates and overnight mail
EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights,
MN 55120-4100, USA.
1 Note that this date is 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 The number of shares of 14,571m as at 30 September 2024 is different from the
14,561m quoted in the 1 October 2024 announcement entitled "Total Voting
Rights" because the share buyback transactions executed on 27 and 30 September
2024 did not settle until 1 and 2 October 2024 respectively.
5 Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public
holidays in England and Wales.
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