REG - Barclays PLCBarclays Bank PLC - 3rd 2017 Quarter Results <Origin Href="QuoteRef">BARC.L</Origin> - Part 4
26/10/2017 07:06
- Part 4: For the preceding part double click ID:nRSZ6455Uc
£99bn (December 2016: £63bn).
The average UK leverage exposure as at 30 September 2017, which excludes qualifying central bank claims, was £1,035bn
(December 2016: £1,137bn), resulting in an average UK leverage ratio of 4.9% (December 2016: 4.5%). The CET1 capital held
against the 0.35% transitional G-SII ALRB was £3.5bn. The impact of the CCLB is currently nil.
The CRR leverage ratio decreased to 4.4% (December 2016: 4.6%) primarily driven by a £0.9bn decrease in fully loaded Tier 1
capital to £51.1bn as well as a £26bn increase in leverage exposure to £1,151bn.
• Loans and advances and other assets increased by £11bn to £718bn. This was driven primarily by a £73bn increase in cash and balances at central banks mainly due to an increase in the cash contribution to the Group liquidity pool, a £71bn decrease in assets held for sale mainly due to the sell down of Barclays' holding in BAGL, a £13bn increase in settlement balances and a £12bn increase in trading portfolio assets due to client activity
• Reverse repurchase agreements increased £38bn to £114bn, primarily due to an increase in matched book trading
• Net derivative leverage exposures, excluding net written credit protection and PFE on derivatives, decreased £15bn to £36bn due to a reduction in IFRS derivatives mainly due to a decrease in interest rate and foreign exchange derivatives, the rundown of Non-Core assets and a decrease in cash collateral
• Regulatory consolidation adjustments increased £19bn to £13bn primarily as a result of the proportional consolidation of BAGL following the sell down of Barclays' holding
• Potential future exposure on derivatives decreased £12bn to £124bn primarily due to the rundown in Non-Core assets and the appreciation of GBP against major currencies
• Weighted off-balance sheet commitments decreased £15bn to £104bn primarily as a result of the proportional consolidation of BAGL following the sell down of Barclays' holding
The difference between the average UK leverage ratio and the CRR leverage ratio was driven by the exemption of qualifying
central bank claims, partially offset by higher positions for July and August within trading portfolio assets and
settlement balances.
Additional Barclays regulatory disclosures prepared in accordance with the EBA Guidelines on disclosure requirements under
Part Eight of Regulation (EU) No 575/2013 will be disclosed on 26 October 2017, available at home.barclays/results.
Appendix: Non-IFRS Performance Measures
Barclays' management believes that the non-IFRS performance measures included in this document provide valuable information
to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the
business' performance between financial periods, and provide more detail concerning the elements of performance which the
managers of these businesses are most directly able to influence or are relevant for an assessment of Barclays PLC and its
subsidiaries (the Group). They also reflect an important aspect of the way in which operating targets are defined and
performance is monitored by Barclays' management.
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
Return on average tangible shareholders' equity Statutory profit after tax attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average shareholders' equity excluding non-controlling interests and other equity instruments adjusted for the deduction of intangible assets and goodwill. The components of the calculation have been included on pages 34-35.
Return on average allocated tangible shareholders' equity Statutory profit after tax attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average allocated tangible shareholders' equity. The components of the calculation have been included on pages 34-35.
Period end allocated tangible equity Allocated tangible equity is calculated as 12.0% (2016: 11.5%) of CRD IV fully loaded RWAs for each business, adjusted for CRD IV fully loaded capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Group's tangible equity and the amounts allocated to businesses.
Average tangible shareholders' equity Calculated as the average of the previous month's period end tangible equity and the current month's period end tangible equity. The average tangible shareholders' equity for the period is the average of the monthly averages within that period.
Average allocated tangible shareholders' equity Calculated as the average of the previous month's period end allocated tangible equity and the current month's period end allocated tangible equity. The average allocated tangible shareholders' equity for the period is the average of the monthly averages within that period.
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total annualised loan impairment divided by gross loans and advances to customers and banks held at amortised cost at the balance sheet date.
Loan: deposit ratio Loans and advances divided by customer accounts calculated for Barclays UK and Barclays International, excluding investment banking balances other than interest earning lending. This excludes particular liabilities issued by the retail businesses that have characteristics comparable to retail deposits (for example structured Certificates of Deposit and retail bonds), which are included within debt securities in issue.
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 21.
Tangible net asset value per share Calculated by dividing shareholders' equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 35.
Returns
Return on average allocated tangible equity is calculated as profit for the period attributable to ordinary equity holders
of the parent (adjusted for the tax credit recorded in reserves in respect of interest payments on other equity
instruments) divided by average allocated tangible equity for the period, excluding non-controlling and other equity
interests for businesses. Allocated tangible equity has been calculated as 12.0% (2016: 11.5%) of CRD IV fully loaded RWAs
for each business, adjusted for CRD IV fully loaded capital deductions, excluding goodwill and intangible assets,
reflecting the assumptions the Group uses for capital planning purposes. Head Office average allocated tangible equity
represents the difference between the Group's average tangible equity and the amounts allocated to businesses.
Nine months ended Nine months ended
30.09.17 30.09.16
Attributable profit/(loss) £m £m
Barclays UK 608 445
Corporate and Investment Bank 1,423 1,356
Consumer, Cards and Payments 592 1,013
Barclays International 2,015 2,369
Head Office (497) (113)
Barclays Non-Core (419) (1,418)
Africa Banking discontinued operation (2,335) 240
Barclays Group (628) 1,524
Tax credit in respect of interest payments on other equity instruments
Barclays UK 27 21
Corporate and Investment Bank 73 52
Consumer, Cards and Payments 13 8
Barclays International 86 60
Head Office 2 (4)
Barclays Non-Core 10 13
Africa Banking discontinued operation - -
Barclays Group 125 89
Profit/(loss) attributable to ordinary equity holders of the parent
Barclays UK 635 466
Corporate and Investment Bank 1,496 1,408
Consumer, Cards and Payments 605 1,021
Barclays International 2,101 2,429
Head Office (495) (117)
Barclays Non-Core (409) (1,405)
Africa Banking discontinued operation (2,335) 240
Barclays Group (503) 1,613
Average allocated tangible equity £bn £bn
Barclays UK 9.0 9.0
Corporate and Investment Bank 23.8 21.6
Consumer, Cards and Payments 4.2 3.6
Barclays International 28.0 25.2
Head Office1 9.0 6.3
Barclays Non-Core 3.2 8.2
Barclays Group 49.2 48.7
Return on average allocated tangible equity
Barclays UK 9.4% 6.9%
Corporate and Investment Bank 8.4% 8.7%
Consumer, Cards and Payments 19.3% 38.3%
Barclays International 10.0% 12.9%
Barclays Group (1.4%) 4.4%
1 Includes Africa Banking.
Returns excluding charges for PPI, impairment of Barclays' holding in BAGL and loss on the sale of BAGL
Nine months ended
Profit attributable to ordinary equity holders of the parent excluding charges for PPI, impairment of Barclays' 30.09.17
holding in BAGL and loss on the sale of BAGL1 £m
Barclays Group profit attributable to ordinary equity holders (503)
Impact of charges for PPI2 692
Impact of impairment of Barclays' holding in BAGL 1,008
Impact of loss on the sale of BAGL 1,435
Barclays Group profit attributable to ordinary equity holders of the parent excluding charges for PPI, impairment of Barclays' holding in BAGL and loss on the sale of BAGL 2,632
Average allocated tangible equity £bn
Barclays Group 49.2
Return on average allocated tangible equity excluding charges for PPI, impairment of Barclays' holding in BAGL and loss on the sale of BAGL
Barclays Group 7.1%
Earnings per share excluding charges for PPI, impairment of Barclays' holding in BAGL and loss on the sale of BAGL
Nine months ended
Profit attributable to ordinary equity holders of the parent excluding charges for PPI, impairment of Barclays' 30.09.17
holding in BAGL and loss on the sale of BAGL1 £m
Barclays Group profit attributable to ordinary equity holders (503)
Impact of charges for PPI2 692
Impact of impairment of Barclays' holding in BAGL 1,008
Impact of loss on the sale of BAGL 1,435
Barclays Group profit attributable to ordinary equity holders of the parent excluding charges for PPI, impairment of Barclays' holding in BAGL and loss on the sale of BAGL 2,632
m
Basic weighted average number of shares 16,994
Basic earnings per ordinary share excluding charges for PPI, impairment of Barclays' holding in BAGL and loss on the sale of BAGL p
Barclays Group 15.5
1 The profit after tax attributable to other equity holders of £458m (Q316 YTD: £318m) is offset by a tax credit recorded in reserves of £125m (Q316 YTD: £89m). The net amount of £333m (Q316 YTD: £229m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity.
2 Represents the post-tax impact.
Tangible net asset value As at As at As at
30.09.17 30.06.17 31.12.16
£m £m £m
Total equity excluding non-controlling interests 64,649 63,866 64,873
Other equity instruments (8,940) (7,694) (6,449)
Goodwill and intangibles1 (7,759) (7,724) (9,245)
Tangible shareholders' equity attributable to ordinary shareholders of the parent 47,950 48,448 49,179
m m m
Shares in issue 17,043 17,034 16,963
p p p
Tangible net asset value per share 281 284 290
1 Comparative figures for 2016 include goodwill and intangibles in relation to Africa Banking.
Shareholder Information
Results timetable1 Date
2017 Full Year Results and Audited Annual Report 22 February 2018
% Change3
Exchange rates2 30.09.17 30.06.17 30.09.16 30.06.17 30.09.16
Period end - US$/£ 1.34 1.30 1.30 3% 3%
YTD average - US$/£ 1.28 1.26 1.39 2% (8%)
3 month average - US$/£ 1.31 1.28 1.31 2% -
Period end - E/£ 1.14 1.14 1.16 - (2%)
YTD average - E/£ 1.15 1.16 1.25 (1%) (8%)
3 Month average - E/£ 1.11 1.16 1.18 (4%) (6%)
Share price data 30.09.17 30.06.17 30.09.16
Barclays PLC (p) 193.35 202.75 167.80
Barclays PLC number of shares (m) 17,043 17,034 16,943
For further information please contact
Investor relations Media relations
Kathryn McLeland +44 (0) 20 7116 4943 Thomas Hoskin +44 (0) 20 7116 4755
More information on Barclays can be found on our website: home.barclays
Registered office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839
Registrar
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.
Tel: 0371 384 20554 from the UK or +44 (0) 121 415 7004 from overseas.
1 Note that this announcement date is provisional and subject to change.
2 The average rates shown above are derived from daily spot rates during the year.
3 The change is the impact to GBP reported information.
4 Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding UK public holidays in England and Wales
.
Notes
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income
statement analysis compares the nine months ended 30 September 2017 to the corresponding nine months of 2016 and balance
sheet analysis as at 30 September 2017 with comparatives relating to 30 June 2017 and 31 December 2016. The abbreviations
'£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and
'$bn' represent millions and thousands of millions of US Dollars respectively; the abbreviations 'Em' and 'Ebn' represent
millions and thousands of millions of Euros respectively.
There are a number of key judgement areas, for example impairment calculations, which are based on models and which are
subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point
in time.
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International
Financial Reporting Standards (IFRS) are explained in the results glossary that can be accessed at home.barclays/results.
The information in this announcement, which was approved by the Board of Directors on 25 October 2017, does not comprise
statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31
December 2016, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and
Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under
Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have
been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished
with the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website
home.barclays/results and from the SEC's website at www.sec.gov.
Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and
other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter
it will meet with investors globally to discuss these results and other matters relating to the Group.
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance measures included in this document provide valuable information
to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the
business' performance between financial periods, and provide more detail concerning the elements of performance which the
managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also
reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays'
management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers
should consider the IFRS measures as well. Refer to the appendix on pages 33-35 for further information and calculations of
non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange
Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays
cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other
financial condition or performance measures could differ materially from those contained in the forward-looking statements.
These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts.
Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target',
'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning.
Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's
future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy,
structural reform, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios
and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or
savings, any commitments and targets and the impact of any regulatory deconsolidation resulting from the sell down of the
Group's interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for future
operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking
statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by
changes in legislation, the development of standards and interpretations under International Financial Reporting Standards,
evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of
current and future legal proceedings and regulatory investigations, future levels of conduct provisions, future levels of
notable items, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of
competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and
other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future
periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in
credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in
valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in
credit ratings of any entities within the Group or any securities issued by such entities; the potential for one or more
countries exiting the Eurozone; the implications of the exercise by the United Kingdom of Article 50 of the Treaty of
Lisbon and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the
European Union and the success of future acquisitions, disposals and other strategic transactions. A number of these
influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments,
and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set forth in the
Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition
and performance are identified in our filings with the SEC (including, without limitation, our annual report on form 20-F
for the fiscal year ended 31 December 2016), which are available on the SEC's website at www.sec.gov.
Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in
relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This information is provided by RNS
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