TIDM96ES
RNS Number : 3949U
Barclays Bank PLC
29 July 2020
Barclays Bank PLC
Interim Results Announcement
30 June 2020
Table of Contents
Results Announcement Page
Notes 1
Financial Review 2
Risk Management
* Risk Management and Principal Risks 4
* Credit Risk 6
* Market Risk 14
* Treasury and Capital Risk 15
Statement of Directors' Responsibilities 17
Independent Review Report to Barclays Bank PLC 18
Condensed Consolidated Financial Statements 19
Financial Statement Notes 25
Other Information 45
BARCLAYS BANK PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED
KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 1026167.
Notes
The term Barclays Bank Group refers to Barclays Bank PLC
together with its subsidiaries. Unless otherwise stated, the income
statement analysis compares the six months ended 30 June 2020 to
the corresponding six months of 2019 and balance sheet analysis as
at 30 June 2020 with comparatives relating to 31 December 2019. The
abbreviations 'GBPm' and 'GBPbn' 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 'EURm' and 'EURbn'
represent millions and thousands of millions of Euros
respectively.
There are a number of key judgement areas, for example
impairment calculations, which are based on models and which are
subject to ongoing adjustment and modifications. Reported numbers
reflect best estimates and judgements at the given point in
time.
Relevant terms that are used in this document but are not
defined under applicable regulatory guidance or International
Financial Reporting Standards (IFRS) are explained in the results
glossary that can be accessed at
home.barclays/investor-relations/reports-and-events/latest-financial-results.
The information in this announcement, which was approved by the
Board of Directors on 28 July 2020, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2019, which
contained an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These results will be furnished as a Form 6-K to the US
Securities and Exchange Commission (SEC) as soon as practicable
following their publication. Once furnished with the SEC, a copy of
the Form 6-K will be available from the SEC's website at
www.sec.gov.
Barclays Bank Group 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 Bank Group expects that from time to time over the coming
half year it will meet with investors globally to discuss these
results and other matters relating to the Barclays Bank Group.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Barclays Bank Group. Barclays Bank
Group cautions readers that no forward-looking statement is a
guarantee of future performance and that actual results or other
financial condition or performance measures could differ materially
from those contained in the forward-looking statements. These
forward-looking statements can be identified by the fact that they
do not relate only to historical or current facts. Forward-looking
statements sometimes use words such as 'may', 'will', 'seek',
'continue', 'aim', 'anticipate', 'target', 'projected', 'expect',
'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other
words of similar meaning. Forward-looking statements can be made in
writing but also may be made verbally by members of the management
of the Barclays Bank Group (including, without limitation, during
management presentations to financial analysts) in connection with
this document. Examples of forward-looking statements include,
among others, statements or guidance regarding or relating to the
Barclays Bank Group's future financial position, income growth,
assets, impairment charges, provisions, business strategy, capital,
leverage and other regulatory ratios, payment of dividends
(including dividend payout ratios and expected payment strategies),
projected levels of growth in the banking and financial markets,
projected costs or savings, any commitments and targets, estimates
of capital expenditures, plans and objectives for future
operations, projected employee numbers, IFRS impacts and other
statements that are not historical fact. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. The forward-looking
statements speak only as at the date on which they are made and
such statements may be affected by changes in legislation, the
development of standards and interpretations under IFRS, including
evolving practices with regard to the interpretation and
application of accounting and regulatory standards, the outcome of
current and future legal proceedings and regulatory investigations,
future levels of conduct provisions, the policies and actions of
governmental and regulatory authorities, geopolitical risks and the
impact of competition. In addition, factors including (but not
limited to) the following may have an effect: capital, leverage and
other regulatory rules applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business
conditions; the effects of any volatility in credit markets; market
related risks such as changes in interest rates and foreign
exchange rates; effects of changes in valuation of credit market
exposures; changes in valuation of issued securities; volatility in
capital markets; changes in credit ratings of any entity within the
Barclays Bank Group or any securities issued by such entities;
direct and indirect impacts of the coronavirus (COVID-19) pandemic;
instability as a result of the exit by the UK from the European
Union and the disruption that may subsequently result in the UK and
globally; and the success of future acquisitions, disposals and
other strategic transactions. A number of these influences and
factors are beyond the Barclays Bank Group's control. As a result,
the Barclays Bank Group's actual financial position, future
results, dividend payments, capital, leverage or other regulatory
ratios or other financial and non-financial metrics or performance
measures may differ materially from the statements or guidance set
forth in the Barclays Bank Group's forward-looking statements.
Additional risks and factors which may impact the Barclays Bank
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
2019 and our 2020 Interim Results Announcement for the six months
ended 30 June 2020 filed on Form 6-K), which are available on the
SEC's website at www.sec.gov.
Subject to our 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.
Financial Review
Barclays Bank Group results
for the half year ended 30.06.20 30.06.19
GBPm GBPm % Change
============================================ ============== ============== ========
Total income 8,637 7,122 21
Credit impairment charges (2,674) (510)
============================================ ============== ============== ========
Net operating income 5,963 6,612 (10)
Operating expenses (4,548) (4,842) 6
Litigation and conduct (19) (68) 72
============================================ ============== ============== ========
Total operating expenses (4,567) (4,910) 7
Other net income 127 23
============================================ ============== ============== ========
Profit before tax 1,523 1,725 (12)
Tax charge (230) (260) 12
============================================ ============== ============== ========
Profit after tax 1,293 1,465 (12)
Other equity instrument holders (333) (294) (13)
============================================ ============== ============== ========
Attributable profit 960 1,171 (18)
As at 30.06.20 As at 31.12.19
Balance sheet information GBPbn GBPbn
============================================ ============== ============== ========
Cash and balances at central banks 155.8 125.9
Cash collateral and settlement assets 130.9 79.5
Loans and advances at amortised cost 150.2 141.6
Trading portfolio assets 109.5 113.3
Financial assets at fair value through
the income statement 155.5 129.5
Derivative financial instrument assets 307.7 229.6
-------------------------------------------- -------------- -------------- --------
Total assets 1,096.0 876.7
Deposits at amortised cost 245.7 213.9
Cash collateral and settlement liabilities 113.3 67.7
Financial liabilities designated at
fair value 222.1 204.4
Derivative financial instrument liabilities 308.0 228.9
As at 30.06.20 As at 31.12.19
Capital and liquidity metrics GBPbn GBPbn
============================================ ============== ============== ========
Common equity tier 1 (CET1) ratio(1,2) 14.3% 13.9%
Barclays Bank PLC DoLSub liquidity
coverage ratio 166% 141%
Barclays Bank Group liquidity pool 234 169
1 Barclays Bank PLC is currently regulated by the Prudential Regulation
Authority (PRA) on a solo-consolidated basis. The disclosure above
provides a capital metric for Barclays Bank PLC solo-consolidated.
For further information, refer to Treasury and Capital Risk on page
15.
2 The CET1 ratio is calculated applying the IFRS 9 transitional arrangement
of the Capital Requirements Regulation (CRR) as amended by the Capital
Requirements Regulation II (CRR II) applicable as at the reporting
date. For further information on the implementation of CRR II see
page 15.
Barclays Bank Group Overview
Barclays Bank PLC is the non-ring-fenced bank which forms part
of the Barclays Group and consists of Corporate and Investment Bank
(CIB), Consumer, Cards and Payments (CC&P) and Head Office.
Group performance
Barclays Bank PLC continued to support its customers and clients
through the COVID-19 pandemic by providing or facilitating lending,
through the range of support programmes which have been introduced,
as well as enabling the raising of debt and equity financing in the
capital markets. Support actions, including over 200k payment
holidays, have also been introduced to help customers and clients
through the difficulties they may be experiencing.
Profit before tax decreased 12% to GBP1,523m driven by a
GBP1,105m decrease in CC&P to a loss before tax of GBP503m.
This was partially offset by a GBP750m increase in CIB to GBP2,203m
and a lower loss in Head Office of GBP177m (H119: GBP330m).
-- Total income increased 21% to GBP8,637m
deg CIB income increased 35% to GBP6,973m driven by a 73% increase in
Markets, reflecting increased client activity, spread widening and
higher levels of volatility, an 8% increase in Banking fees, partially
offset by a 17% decline in Corporate due to the impact of losses
on fair value lending positions and losses on mark-to-market and
carry costs on related hedges in H120
deg CC&P income decreased 21% to GBP1,742m as the impacts of the COVID-19
pandemic resulted in lower balances on co-branded cards, margin
compression and reduced payments activity. Q220 included a c.GBP100m
valuation loss on Barclays' preference shares in Visa Inc. resulting
from the Q220 Supreme Court ruling concerning charges paid by merchants
deg Head Office income expense improved by 65% to GBP78m mainly driven
by lower legacy capital funding costs
-- Credit impairment charges increased to GBP2,674m (H119: GBP510m)
deg CIB credit impairment charges increased to GBP1,320m (H119: GBP96m),
reflecting GBP591m in respect of single name wholesale loan charges
and impacts from the COVID-19 scenarios(1) , partially offset by
the estimated impact of central bank, government and other support
measures
deg CC&P credit impairment charges increased to GBP1,299m (H119: GBP396m)
reflecting the impact from the revised COVID-19 scenarios, partially
offset by the estimated impact of central bank, government and other
support measures
deg Head Office credit impairment charges increased to GBP55m (H119:
GBP18m) due to impacts from the COVID-19 scenarios on the Italian
home loan portfolio
-- Total operating expenses decreased 7% to GBP4,567m
deg CIB total operating expenses decreased 4% to GBP3,462m due to cost
efficiencies and discipline in the current environment
deg CC&P total operating expenses decreased 12% to GBP1,061m reflecting
cost efficiencies and lower marketing spend due to the impacts of
the COVID-19 pandemic
deg Head Office total operating expenses decreased 48% to GBP44m due
to lower litigation and conduct charges
-- Other net income increased GBP104m to GBP127m reflecting gains on
disposals following the sale of a number of subsidiaries within
the Barclays Group
-- The tax charge for H120 was GBP230m (H119: GBP260m), representing
an effective tax rate of 15.1% (H119: 15.1%)
Balance sheet, capital and liquidity
-- Cash and balances at central banks increased GBP29.9bn to GBP155.8bn
within the liquidity pool
-- Cash collateral and settlement assets and liabilities increased
GBP51.4bn to GBP130.9bn and GBP45.6bn to GBP113.3bn respectively
predominantly due to increased activity
-- Loans and advances increased GBP8.6bn to GBP150.2bn due to increased
lending within CIB, partially offset by lower card balances in CC&P
-- Financial assets at fair value through the income statement increased
GBP26.0bn to GBP155.5bn driven by increased secured lending
-- Derivative financial instrument assets and liabilities increased
GBP78.1bn to GBP307.7bn and GBP79.1bn to GBP308.0bn respectively
driven by a decrease in major interest rate curves and increased
trading volumes
-- Deposits at amortised cost increased GBP31.8bn to GBP245.7bn due
to CIB clients increasing liquidity
-- Financial liabilities designated at fair value increased GBP17.7bn
to GBP222.1bn driven by increased secured borrowing
-- The Barclays Bank PLC solo-consolidated CET1 ratio as at 30 June
2020 was 14.3%, which is above regulatory capital minimum requirements
-- The Barclays Bank Group liquidity pool increased to GBP234bn (December
2019: GBP169bn) driven by customer deposit growth and actions to
maintain a prudent funding and liquidity position in the current
environment
1 See Measurement uncertainty, page 10, for a description of the COVID-19 Scenarios .
Risk Management
Risk m anagement and p rincipal risks
The roles and responsibilities of the business groups, Risk and
Compliance, in the management of risk in the firm are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of Barclays Bank
Group, the process by which Barclays Bank Group sets its appetite
for these risks in its business activities, and the consequent
limits which it places on related risk taking.
The framework identifies eight principal risks: credit risk;
market risk; treasury and capital risk; operational risk; model
risk; conduct risk; reputation risk; and legal risk. Further detail
on these risks and how they are managed is available in the
Barclays Bank PLC Annual Report 2019 (pages 44 to 49) or online at
home.barclays/annualreport. There have been no significant changes
to these principal risks or previously identified material existing
and emerging risks in the period, save that details of an
additional material risk identified in H120 which potentially
impacts more than one principal risk are set out below.
The following section also gives an overview of credit risk,
market risk, and treasury and capital risk for the period.
Risks relating to the impact of COVID-19
The COVID-19 pandemic has had, and continues to have, a material
impact on businesses around the world and the economic environments
in which they operate. There are a number of factors associated
with the pandemic and its impact on global economies that could
have a material adverse effect on (among other things) the
profitability, capital and liquidity of financial institutions such
as Barclays Bank Group.
The COVID-19 pandemic has caused disruption to the Barclays Bank
Group's customers, suppliers and staff globally. Most jurisdictions
in which the Barclays Bank Group operates have implemented severe
restrictions on the movement of their respective populations, with
a resultant significant impact on economic activity in those
jurisdictions. These restrictions are being determined by the
governments of individual jurisdictions (including through the
implementation of emergency powers) and impacts (including the
timing of implementation and any subsequent lifting of
restrictions) may vary from jurisdiction to jurisdiction. It
remains unclear how this will evolve through 2020 (including
whether there will be subsequent waves of the COVID-19 pandemic and
whether and in what manner previously lifted restrictions will be
re-imposed) and the Barclays Bank Group continues to monitor the
situation closely. However, despite the COVID-19 contingency plans
established by the Barclays Bank Group, its ability to conduct
business may be adversely affected by disruptions to its
infrastructure, business processes and technology services,
resulting from the unavailability of staff due to illness or the
failure of third parties to supply services. This may cause
significant customer detriment, costs to reimburse losses incurred
by the Barclays Bank Group's customers, potential litigation costs
(including regulatory fines, penalties and other sanctions), and
reputational damage.
In many of the jurisdictions in which the Barclays Bank Group
operates, schemes have been initiated by central banks, national
governments and regulators to provide financial support to parts of
the economy most impacted by the COVID-19 pandemic. These schemes
have been designed and implemented at pace, meaning lenders
(including Barclays) continue to address operational issues which
have arisen in connection with the implementation of the schemes,
including resolving the interaction between the schemes and
existing law and regulation. In addition, the details of how these
schemes will impact the Barclays Bank Group's customers and
therefore the impact on the Barclays Bank Group remains uncertain
at this stage. However, certain actions (such as the introduction
of payment holidays for certain consumer lending products or the
cancellation or waiver of fees associated with certain products)
may negatively impact the effective interest rate earned on certain
of the Barclays Bank Group's portfolios and lower fee income being
earned on certain products. Lower interest rates globally will
negatively impact net interest income earned on certain of the
Barclays Bank Group's portfolios. Both of these factors may in turn
negatively impact the Barclays Bank Group's profitability.
Furthermore, the introduction of, and participation in,
central-bank supported loan and other financing schemes introduced
as a result of the COVID-19 pandemic may negatively impact the
Barclays Bank Group's risk weighted assets (RWAs), level of
impairment and, in turn, capital position (particularly when any
transitional relief applied to the calculation of RWAs and
impairment expires). This may be exacerbated if the Barclays Bank
Group is required by any government or regulator to offer
forbearance or additional financial relief to borrowers.
As these schemes and other financial support schemes provided by
national governments (such as job retention and furlough schemes)
expire, are withdrawn or are no longer supported, the Barclays Bank
Group may experience a higher volume of defaults and delinquencies
in certain portfolios and may initiate collection and enforcement
actions to recover defaulted debts. Where defaulting borrowers are
harmed by the Barclays Bank Group's conduct, this may give rise to
civil legal proceedings, including class actions, regulatory
censure, potentially significant fines and other sanctions, and
reputational damage. Other legal disputes may also arise between
the Barclays Bank Group and defaulting borrowers relating to
matters such as breaches or enforcement of legal rights or
obligations arising under loan and other credit agreements. Adverse
findings in any such matters may result in the Barclays Bank
Group's rights not being enforced as intended. For further details
on legal risk and legal, competition and regulatory matters, refer
to Note 14 on page 38.
The actions taken by various governments and central banks, in
particular in the United Kingdom and the United States, may
indicate a view on the potential severity of any economic downturn
and post recovery environment, which from a commercial, regulatory
and risk perspective could be significantly different to past
crises and persist for a prolonged period. The COVID-19 pandemic
has led to a weakening in GDP in most jurisdictions in which the
Barclays Bank Group operates and an expectation of higher
unemployment and lower house prices in those same jurisdictions.
These factors all have a significant impact on the modelling of
expected credit losses (ECL) by the Barclays Bank Group. As a
result, the Barclays Bank Group has experienced higher ECLs during
the first half of 2020 compared to prior periods and this trend may
continue in the second half of 2020. The economic environment
remains uncertain and future impairment charges may be subject to
further volatility (including from changes to macroeconomic
variable forecasts) depending on the longevity of the COVID-19
pandemic and related containment measures, as well as the longer
term effectiveness of central bank, government and other support
measures. For further details on macroeconomic variables used in
the calculation of ECLs, refer to page 10. In addition, ECLs may be
adversely impacted by increased levels of default for single name
exposures in certain sectors directly impacted by the COVID-19
pandemic (such as the oil and gas, retail, airline, and hospitality
and leisure sectors).
Furthermore, the Barclays Bank Group relies on models to support
a broad range of business and risk management activities, including
informing business decisions and strategies, measuring and limiting
risk, valuing exposures (including the calculation of impairment),
conducting stress testing and assessing capital adequacy. Models
are, by their nature, imperfect and incomplete representations of
reality because they rely on assumptions and inputs, and so they
may be subject to errors affecting the accuracy of their outputs
and/or misused. This may be exacerbated when dealing with
unprecedented scenarios, such as the COVID-19 pandemic, due to the
lack of reliable historical reference points and data. For further
details on model risk, refer to page 48 of the Barclays Bank PLC
Annual Report 2019.
The disruption to economic activity globally caused by the
COVID-19 pandemic could adversely impact the Barclays Bank Group's
other assets such as goodwill and intangibles, and the value of
Barclays Bank PLC's investments in subsidiaries. It could also
impact the Barclays Bank Group's income due to lower lending and
transaction volumes due to volatility or weakness in the capital
markets. Other potential risks include credit rating migration
which could negatively impact the Barclays Bank Group's RWAs and
capital position, and potential liquidity stress due to (among
other things) increased customer drawdowns, notwithstanding the
significant initiatives that governments and central banks have put
in place to support funding and liquidity. Furthermore, a
significant increase in the utilisation of credit cards by
customers could have a negative impact on the Barclays Bank Group's
RWAs and capital position.
Central bank and government actions and other support measures
taken in response to the COVID-19 pandemic may also create
restrictions in relation to capital. Restrictions imposed by
governments and/or regulators may further limit management's
flexibility in managing the business and taking action in relation
to capital distributions and capital allocation.
Any and all such events mentioned above could have a material
adverse effect on the Barclays Bank Group's business, financial
condition, results of operations, prospects, liquidity, capital
position and credit ratings (including potential credit rating
agency changes of outlooks or ratings), as well as on the Barclays
Bank Group's customers, employees and suppliers.
Credit Risk
Loans and advances at amortised cost by product
The table below presents a breakdown of loans and advances at
amortised cost and the impairment allowance with stage allocation
by asset classification.
Impairment allowance under IFRS 9 considers both the drawn and
the undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to the drawn exposure to the
extent that the allowance does not exceed the exposure, as ECL is
not reported separately. Any excess is reported on the liability
side of the balance sheet as a provision. For wholesale portfolios,
the impairment allowance on the undrawn exposure is reported on the
liability side of the balance sheet as a provision.
Stage 2
=======================================
Stage 1 Not <=30 days >30 days Total Stage 3 Total(1)
As at 30.06.20 past due past due past due
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================================= ======= ========= ========= ========= ====== ======= ========
Home loans 9,670 638 62 179 879 1,142 11,691
Credit cards, unsecured loans and other retail
lending 20,659 6,077 206 348 6,631 2,036 29,326
Wholesale loans 75,699 33,288 2,961 634 36,883 2,161 114,743
================================================= ======= ========= ========= ========= ====== ======= ========
Total 106,028 40,003 3,229 1,161 44,393 5,339 155,760
Impairment allowance
================================================= ======= ========= ========= ========= ====== ======= ========
Home loans 12 28 11 15 54 350 416
Credit cards, unsecured loans and other retail
lending 456 1,096 86 158 1,340 1,511 3,307
Wholesale loans 206 654 92 24 770 858 1,834
================================================= ======= ========= ========= ========= ====== ======= ========
Total 674 1,778 189 197 2,164 2,719 5,557
Net exposure
================================================= ======= ========= ========= ========= ====== ======= ========
Home loans 9,658 610 51 164 825 792 11,275
Credit cards, unsecured loans and other retail
lending 20,203 4,981 120 190 5,291 525 26,019
Wholesale loans 75,493 32,634 2,869 610 36,113 1,303 112,909
================================================= ======= ========= ========= ========= ====== ======= ========
Total 105,354 38,225 3,040 964 42,229 2,620 150,203
Coverage ratio %% %% %% %
================================================= ======= ======== ======== ======== ===== ====== =======
Home loans 0.1 4.4 17.7 8.4 6.1 30.6 3.6
Credit cards, unsecured loans and other retail
lending 2.2 18.0 41.7 45.4 20.2 74.2 11.3
Wholesale loans 0.3 2.0 3.1 3.8 2.1 39.7 1.6
================================================= ======= ========= ========= ========= ====== ======= ========
Total 0.6 4.4 5.9 17.0 4.9 50.9 3.6
As at 31.12.19
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================================= ======= ========= ========= ========= ====== ======= ========
Home loans 9,604 544 48 82 674 1,056 11,334
Credit cards, unsecured loans and other retail
lending 29,541 3,806 304 340 4,450 2,129 36,120
Wholesale loans 89,200 6,489 354 672 7,515 1,163 97,878
================================================= ======= ========= ========= ========= ====== ======= ========
Total 128,345 10,839 706 1,094 12,639 4,348 145,332
Impairment allowance
================================================= ======= ========= ========= ========= ====== ======= ========
Home loans 16 249 7 40 292 348
Credit cards, unsecured loans and other retail
lending 362 523 99 162 784 1,471 2,617
Wholesale loans 114 2198 7 234 383 731
================================================= ======= ========= ======== ======== ====== ======= ========
Total 492 766 116 176 1,058 2,146 3,696
Net exposure
================================================= ======= ========= ========= ========= ====== ======= ========
Home loans 9,588 520 39 75 634 764 10,986
Credit cards, unsecured loans and other retail
lending 29,179 3,283 205 178 3,666 658 33,503
Wholesale loans 89,086 6,270 346 665 7,281 780 97,147
================================================= ======= ========= ========= ========= ====== ======= ========
Total 127,853 10,073 590 918 11,581 2,202 141,636
Coverage ratio %% %% %% %
================================================= ======= ======== ======== ======== ===== ====== =======
Home loans 0.2 4.4 18.8 8.5 5.9 27.7 3.1
Credit cards, unsecured loans and other retail
lending 1.2 13.7 32.6 47.6 17.6 69.1 7.2
Wholesale loans 0.1 3.4 2.3 1.0 3.1 32.9 0.7
================================================= ======= ========= ========= ========= ====== ======= ========
Total 0.4 7.1 16.4 16.1 8.4 49.4 2.5
1 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, accrued
income and sundry debtors. These have a total gross exposure of
GBP187.1bn (December 2019: GBP125.5bn) and impairment allowance
of GBP168m (December 2019: GBP22m). This comprises GBP33m (December
2019: GBP10m) ECL on GBP181.7bn (December 2019: GBP124.7bn) Stage
1 assets, GBP20m (December 2019: GBP2m) on GBP5.3bn (December 2019:
GBP0.8bn) Stage 2 fair value through other comprehensive income
assets and GBP115m (December 2019: GBP10m) on GBP115m (December
2019: GBP10m) Stage 3 other assets. Loan commitments and financial
guarantee contracts have total ECL of GBP593m (December 2019: GBP252m).
Movement in gross exposures and impairment allowance including
provisions for loan commitments and financial guarantees
The following tables present a reconciliation of the opening to
the closing balance of the exposure and impairment allowance.
Explanation of the terms: 12-month ECL, lifetime ECL and
credit-impaired are included in the Barclays Bank PLC Annual Report
2019 on page 149. Barclays Bank Group does not hold any material
purchased or originated credit-impaired assets as at period end.
Transfers between stages in the tables have been reflected as if
they had taken place at the beginning of the year. The movements
are measured over a 6-month period.
Loans and advances at amortised cost
Stage 1 Stage 2 Stage 3 Total
-------------------- --------------------- --------------------- ---------------------
Gross exposure ECL Gross exposure ECL Gross exposure ECL Gross exposure ECL
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=========================== ============== ==== ============== ===== ============== ===== ============== =====
Home loans
=========================== ============== ==== ============== ===== ============== ===== ============== =====
As at 1 January 2020 9,604 16 674 40 1,056 292 11,334 348
-----
Transfers from Stage 1 to
Stage 2 (394) (1) 394 1 - - - -
Transfers from Stage 2 to
Stage 1 114 3 (114) (3) - - - -
Transfers to Stage 3 (64) - (67) (6) 131 6 - -
Transfers from Stage 3 17 - 31 1 (48) (1) - -
Business activity in the
year 410 - - - - - 410 -
Net drawdowns, repayments,
net re-measurement and
movement due to exposure
and risk parameter
changes 334 (6) 28 22 39 61 401 77
Final repayments (351) - (67) (1) (29) (1) (447) (2)
-----
Disposals - - - - - - - -
Write-offs(1) - - - - (7) (7) (7) (7)
=========================== ============== ==== ============== ===== ============== ===== ============== =====
As at 30 June 2020(2) 9,670 12 879 54 1,142 350 11,691 416
Credit cards, unsecured loans and other retail lending
======================================================================================================================
As at 1 January 2020 29,541 362 4,450 784 2,129 1,471 36,120 2,617
-----
Transfers from Stage 1 to
Stage 2 (3,520) (78) 3,520 78 - - - -
Transfers from Stage 2 to
Stage 1 948 134 (948) (134) - - - -
Transfers to Stage 3 (153) (10) (397) (171) 550 181 - -
Transfers from Stage 3 21 4 50 5 (71) (9) - -
Business activity in the
year 2,416 23 66 11 5 1 2,487 35
Net drawdowns, repayments,
net re-measurement and
movement due to exposure
and risk parameter
changes (3,447) 55 259 824 160 513 (3,028) 1,392
Final repayments (1,472) (10) (94) (12) (63) (4) (1,629) (26)
Transfers to Barclays
Group(3) (2,182) (16) (92) (25) (47) (41) (2,321) (82)
-----
Disposals(4) (1,493) (8) (183) (20) (71) (45) (1,747) (73)
Write-offs(1) - - - - (556) (556) (556) (556)
=========================== ============== ==== ============== ===== ============== ===== ============== =====
As at 30 June 2020(2) 20,659 456 6,631 1,340 2,036 1,511 29,326 3,307
1 In H1 2020, gross write-offs amounted to GBP643m (H1 2019: GBP627m)
and post write-off recoveries amounted to GBP1m (H1 2019: GBP47m).
Net write-offs represent gross write-offs less post write-off recoveries
and amounted to GBP642m (H1 2019: GBP580m).
2 Other financial assets subject to impairment excluded in the tables
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 GBP187.1bn (December
2019: GBP125.5bn) and impairment allowance of GBP168m (December
2019: GBP22m). This comprises GBP33m ECL (December 2019: GBP10m)
on GBP181.7bn Stage 1 assets (December 2019: GBP124.7bn), GBP20m
(December 2019: GBP2m) on GBP5.3bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2019: GBP0.8bn) and GBP115m (December 2019: GBP10m) on
GBP115m Stage 3 other assets (December 2019: GBP10m).
3 Transfers to Barclays Group reported within Credit cards, unsecured
loans and other retail lending portfolio includes the transfer of
the Barclays Partner Finance retail portfolio to Barclays Principal
Investments Limited during the period.
4 Disposals reported within Credit cards, unsecured loans and other
retail lending portfolio include sale of the motor financing business
from the Barclays Partner Finance business.
Loans and advances at amortised cost
Stage 1 Stage 2 Stage 3 Total
--------------- --------------- --------------- ----------------
Gross Gross Gross Gross
exposure ECL exposure ECL exposure ECL exposure ECL
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================ ========= ==== ========= ==== ========= ==== ========= =====
Wholesale loans
============================ ========= ==== ========= ==== ========= ==== ========= =====
As at 1 January 2020 89,200 114 7,515 234 1,163 383 97,878 731
-----
Transfers from Stage
1 to Stage 2 (24,051) (55) 24,051 55 - - - -
Transfers from Stage
2 to Stage 1 1,589 12 (1,589) (12) - - - -
Transfers to Stage 3 (688) (2) (507) (39) 1,195 41 - -
Transfers from Stage
3 139 - 109 1 (248) (1) - -
Business activity in
the year 19,309 19 4,128 212 42 12 23,479 243
Net drawdowns, repayments,
net re-measurement and
movement due to exposure
and risk parameter changes 10,474 136 4,791 334 349 539 15,614 1,009
Final repayments (20,273) (18) (1,606) (15) (260) (36) (22,139) (69)
-----
Disposals - - (9) - - - (9) -
Write-offs(1) - - - - (80) (80) (80) (80)
============================ ========= ==== ========= ==== ========= ==== ========= =====
As at 30 June 2020(2) 75,699 206 36,883 770 2,161 858 114,743 1,834
Reconciliation of ECL movement to impairment charge/(release)
for the period GBPm
========================================================================================== -----
Home loans 75
Credit cards, unsecured loans and other retail lending 1,319
Wholesale loans 1,183
-----
ECL movement excluding assets derecognised due to disposals
and write-offs 2,577
Recoveries and reimbursements (3) (280)
Exchange and other adjustments(4) (103)
Impairment charge on loan commitments and other financial
guarantees 331
Impairment charge on other financial assets(2) 149
------------------------------------------------------------------------------- ========= =====
As at 30 June 2020 2,674
1 In H1 2020, gross write-offs amounted to GBP643m (H1 2019: GBP627m)
and post write-off recoveries amounted to GBP1m (H1 2019: GBP47m).
Net write-offs represent gross write-offs less post write-off recoveries
and amounted to GBP642m (H1 2019: GBP580m).
2 Other financial assets subject to impairment excluded from the tables
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 GBP187.1bn (December
2019: GBP125.5bn) and impairment allowance of GBP168m (December
2019: GBP22m). This comprises GBP33m ECL (December 2019: GBP10m)
on GBP181.7bn Stage 1 assets (December 2019: GBP124.7bn), GBP20m
(December 2019: GBP2m) on GBP5.3bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2019: GBP0.8bn) and GBP115m (December 2019: GBP10m) on
GBP115m Stage 3 other assets (December 2019: GBP10m).
Recoveries and reimbursements includes a net gain in relation to
3 reimbursements from guarantee contracts held with third parties
of GBP279m and post write off recoveries of GBP1m.
4 Includes foreign exchange and interest and fees in suspense.
Loan commitments and financial guarantees
Stage 1 Stage 2 Stage 3 Total
--------------- --------------- --------------- ---------------
Gross Gross Gross Gross
exposure ECL exposure ECL exposure ECL exposure ECL
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================ ========= ==== ========= ==== ========= ==== ========= ====
Home loans
============================ ========= ==== ========= ==== ========= ==== ========= ====
As at 1 January 2020 34 - - - - - 34 -
Net transfers between - - - - - - - -
stages
Business activity in
the year 136 - - - - - 136 -
Net drawdowns, repayments,
net re-measurement and
movement due to exposure
and risk parameter changes 10 - - - - - 10 -
Limit management (19) - - - - - (19) -
---------------------------- --------- ---- --------- ---- --------- ---- --------- ----
As at 30 June 2020 161 - - - - - 161 -
Credit cards, unsecured loans and other retail lending
================================================================================================
As at 1 January 2020 78,257 22 2,053 15 67 14 80,377 51
Net transfers between
stages (2,633) 2 2,394 (1) 239 (1) - -
Business activity in
the year 3,641 1 57 - 1 1 3,699 2
Net drawdowns, repayments,
net re-measurement and
movement due to exposure
and risk parameter changes 5,735 16 (74) 27 (273) 7 5,388 50
Limit management (5,165) - (261) - (4) (3) (5,430) (3)
---------------------------- --------- ---- --------- ---- --------- ---- --------- ----
As at 30 June 2020 79,835 41 4,169 41 30 18 84,034 100
Wholesale loans
============================ ========= ==== ========= ==== ========= ==== ========= ====
As at 1 January 2020 183,001 63 12,053 97 636 41 195,690 201
Net transfers between
stages (38,412) (22) 37,380 15 1,032 7 - -
Business activity in
the year 24,878 7 3,389 30 107 - 28,374 37
Net drawdowns, repayments,
net re-measurement and
movement due to exposure
and risk parameter changes 10,996 13 794 285 (232) (18) 11,558 280
Limit management (36,233) (7) (2,764) (18) (239) - (39,236) (25)
---------------------------- --------- ---- --------- ---- --------- ---- --------- ----
As at 30 June 2020 144,230 54 50,852 409 1,304 30 196,386 493
Measurement uncertainty
The Barclays Bank Group uses a five-scenario model to calculate
ECL. Absent the conditions surrounding the COVID-19 pandemic, a
Baseline scenario is typically generated based on an external
consensus forecast assembled from key sources, including HM
Treasury (short and medium-term forecasts), Bloomberg (based on
median of economic forecasts) and the Urban Land Institute (for US
House Prices). In addition, two adverse scenarios (Downside 1 and
Downside 2) and two favourable scenarios (Upside 1 and Upside 2)
are derived, with associated probability weightings. The adverse
scenarios are typically calibrated to a similar severity to
internal stress tests, whilst also considering IFRS 9 specific
sensitivities and non-linearity. Downside 2 is typically
benchmarked to the Bank of England's annual cyclical scenarios and
to the most severe scenario from Moody's inventory, but is not
designed to be the same. The favourable scenarios are generally
calibrated to be symmetric to the adverse scenarios, subject to a
ceiling calibrated to relevant recent favourable benchmark
scenarios. The scenarios include eight economic variables (GDP,
unemployment, House Price Index (HPI) and base rates in both the UK
and US markets), and expanded variables using statistical models
based on historical correlations. The upside and downside shocks
are designed to evolve over a five-year stress horizon, with all
five scenarios converging to a steady state after approximately
eight years. To calculate ECL a probability weight is assigned to
each scenario.
Following the onset of the COVID-19 pandemic, the Barclays Bank
Group generated a Baseline scenario in March 2020 that reflected
the most recent economic forecasts available in the market
(combined with internal assumptions) and estimated impacts from
significant support measures taken by Barclays, central banks and
governments across the Barclays Bank Group's key markets. This
scenario assumed a strong contraction in GDP and a sharp rise in
unemployment in 2020 across both the UK and US, and required a
recalibration of probability weights. This scenario was superseded
by a further revised Baseline scenario generated in June 2020,
based broadly on the latest economic forecasts which recognise some
the impacts from the various support measures still in place across
the Barclays Bank Group's key markets. Upside and downside
scenarios were also regenerated in June 2020 (together with the
revised Baseline scenario, the "COVID-19 Scenarios"). The downside
scenarios reflect slower economic growth than the Baseline with
social distancing measures continuing to drag GDP. Economic growth
begins to recover later in 2020 in Downside 1 but only in 2021 in
the Downside 2 scenario. The upside scenarios reflect a faster
rebound in economic growth than the Baseline with a sharp decrease
in infection rates and an almost fully reopened economy. Scenario
weights were also revised in June 2020 with greater weight being
applied to the tail scenarios (Upside 2 and Downside 2). This
reflects the significant range of uncertainty in the economic
environment compared to previous quarters given the conditions
surrounding the COVID-19 pandemic.
The economic environment remains uncertain and future impairment
charges may be subject to further volatility (including from
changes to macroeconomic variable forecasts) depending on the
longevity of the COVID-19 pandemic and related containment
measures, as well as the longer term effectiveness of central bank,
government and other support measures.
The tables on next page show the key macroeconomic variables
used in the COVID-19 Baseline scenario and the probability weights
applied to each respective scenario.
Baseline average macroeconomic variables used in the calculation of
ECL
Expected
2020 2021 2022 Worst Point
As at 30.06.20 % % % %
=============================== ======== ===== ======= =================
UK GDP(1) (8.7) 6.1 2.9 (51.4)
UK unemployment(2) 6.6 6.5 4.4 8.0
UK HPI(3) 0.6 2.0 - (1.5)
UK bank rate 0.2 0.1 0.1 0.1
US GDP(1) (4.2) 4.4 (0.3) (30.4)
US unemployment(4) 9.3 7.6 5.5 13.4
US HPI(5) 1.1 1.8 (0.8) (1.9)
US federal funds rate 0.5 0.3 0.3 0.3
1 Average Real GDP seansonally adjusted change in year; expected
worst point using Seasonally Adjusted Annual Rate, SAAR.
2 Average UK unemployment rate 16-year+.
3 Change in average yearly UK HPI = Halifax All Houses, All Buyers
index, relative to prior year end; worst point is based on cumulative
drawdown in year relative to prior year end.
4 Average US civilian unemployment rate 16-year+.
5 Change in average yearly US HPI = FHFA house price index, relative
to prior year end; worst point is based on cumulative drawdown
in year relative to prior year end.
Scenario probability weighting
Upside Upside Downside Downside
2 1 Baseline 1 2
% % % % %
=============================== ====== ====== ======== ======== ========
As at 30.06.20
Scenario probability weighting 20.3 22.4 25.4 17.5 14.4
=============================== ====== ====== ======== ======== ========
As at 31.12.19
Scenario probability weighting 10.1 23.1 40.8 22.7 3.3
Macroeconomic variables (specific
bases)(1)
Upside Upside Baseline Downside Downside
2 1 1 2
As at 30.06.20 % % % % %
================================== ====== ====== ======== ======== ========
UK GDP(2) 32.7 26.4 5.4 1.6 1.2
UK unemployment(3) 3.5 3.6 4.9 9.6 10.9
UK HPI(4) 45.3 27.2 2.3 (15.0) (33.4)
UK bank rate(3) 0.1 0.1 0.2 0.3 0.2
US GDP(2) 19.1 13.5 3.3 2.0 (3.1)
US unemployment(3) 4.1 4.4 6.3 15.4 18.7
US HPI(4) 32.3 20.9 2.3 (8.8) (19.7)
US federal funds rate(3) 0.3 0.3 0.3 0.4 0.4
As at 31.12.19
---------------------------------- ------ ------ -------- -------- --------
UK GDP(2) 4.2 2.9 1.6 0.2 (4.7)
UK unemployment(3) 3.4 3.8 4.2 5.7 8.7
UK HPI(4) 46.0 32.0 3.1 (8.2) (32.4)
UK bank rate(3) 0.5 0.5 0.7 2.8 4.0
US GDP(2) 4.2 3.3 1.9 0.4 (3.4)
US unemployment(3) 3.0 3.5 3.9 5.3 8.5
US HPI(4) 37.1 23.3 3.0 0.5 (19.8)
US federal funds rate(3) 1.5 1.5 1.7 3.0 3.5
As at 30.06.19
---------------------------------- ------ ------ -------- -------- --------
UK GDP(2) 4.5 3.1 1.7 0.3 (4.1)
UK unemployment(3) 3.4 3.9 4.3 5.7 8.8
UK HPI(4) 46.4 32.6 3.2 (0.5) (32.1)
UK bank rate(3) 0.8 0.8 1.0 2.5 4.0
US GDP(2) 4.8 3.7 2.1 0.4 (3.3)
US unemployment(3) 3.0 3.4 3.7 5.2 8.4
US HPI(4) 36.9 30.2 4.1 - (17.4)
US federal funds rate(3) 2.3 2.3 2.7 3.0 3.5
1 UK GDP = Real GDP growth seasonally adjusted; UK unemployment =
UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All
Buyers Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA house price index. Forecast period based on 20 quarters from
Q3 2020.
2 Upside scenario is the highest annual average growth rate based
on seasonally adjusted quarterly annualised rate; 5-year average
in Baseline; downside is the lowest annual average growth rate
based on seasonally adjusted quarterly annualised rate.
3 Lowest yearly average in Upside scenarios; 5-year average in Baseline;
highest yearly average in Downside scenarios.
4 Cumulative growth (trough to peak) in Upside scenarios; 5-year
average in Baseline; cumulative fall (peak-to-trough) in Downside
scenarios.
Macroeconomic variables (5-year
averages)(1)
Upside Upside Baseline Downside Downside
2 1 1 2
As at 30.06.20 % % % % %
-------------------------------- ------ ------ -------- -------- --------
UK GDP 8.9 7.2 5.4 5.2 2.8
UK unemployment 4.0 4.3 4.9 6.2 7.2
UK HPI 7.8 5.0 2.3 (1.4) (5.5)
UK bank rate 0.4 0.3 0.2 0.1 0.1
US GDP 5.9 4.4 3.3 2.7 1.8
US unemployment 4.4 5.1 6.3 8.4 10.9
US HPI 5.8 3.9 2.3 (0.5) (3.1)
US federal funds rate 0.6 0.5 0.3 0.3 0.3
As at 31.12.19
-------------------------------- ------ ------ -------- -------- --------
UK GDP 3.2 2.4 1.6 0.8 (0.7)
UK unemployment 3.5 3.9 4.2 5.4 7.7
UK HPI 7.9 5.7 3.1 (1.1) (6.5)
UK bank rate 0.5 0.5 0.7 2.5 3.7
US GDP 3.5 2.8 1.9 1.0 (0.5)
US unemployment 3.1 3.6 3.9 5.0 7.5
US HPI 6.5 4.3 3.0 1.3 (3.7)
US federal funds rate 1.6 1.7 1.7 2.9 3.4
As at 30.06.19
-------------------------------- ------ ------ -------- -------- --------
UK GDP 3.4 2.6 1.7 0.9 (0.6)
UK unemployment 3.7 4.0 4.3 5.1 7.9
UK HPI 7.9 5.8 3.2 0.9 (6.4)
UK bank rate 0.8 0.8 1.0 2.3 3.7
US GDP 3.7 3.0 2.1 1.1 (0.5)
US unemployment 3.1 3.5 3.7 4.7 7.4
US HPI 6.5 5.4 4.1 2.4 (2.6)
US federal funds rate 2.3 2.3 2.7 3.0 3.4
1 UK GDP = Real GDP growth seasonally adjusted; UK unemployment =
UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All
Buyers Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA house price index. For GDP and HPI, numbers represent average
of seasonally adjusted quarterly annualised rates. Forecast period
based on 20 quarters from Q3 2020".
Market Risk
Analysis of m anagement value at risk ( VaR )
The table below shows the total management VaR on a diversified
basis by risk factor. Total management VaR includes all trading
positions in CIB and Treasury within Barclays Bank Group and it is
calculated with a one-day holding period.
Limits are applied against each risk factor VaR as well as total
management VaR, which are then cascaded further by risk managers to
each business.
Management VaR (95%) by asset
class
Half year ended Half year ended Half year ended
30.06.20 31.12.19 30.06.19
======================== ======================== ========================
Average High(1) Low(1) Average High(1) Low(1) Average High(1) Low(1)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================= ======= ======= ====== ======= ======= ====== ======= ======= ======
Credit risk 22 38 10 13 17 11 11 14 8
Interest rate
risk 9 17 6 7 11 5 5 9 3
Equity risk 15 35 6 11 22 5 9 16 5
Basis risk 9 14 7 9 11 7 7 9 6
Spread risk 5 9 3 4 5 3 4 5 3
Foreign exchange
risk 4 7 2 3 5 2 3 5 2
Commodity risk 1 1 - 1 2 - 1 1 -
Inflation risk 1 2 1 1 2 1 2 3 2
Diversification
effect(1) (31) n/a n/a (25) n/a n/a (21) n/a n/a
================= ======= ======= ====== ======= ======= ====== ======= ======= ======
Total management
VaR 35 57 17 24 29 18 21 26 16
1 Diversification effects recognise that forecast losses from different
assets or businesses are unlikely to occur concurrently, hence
the expected aggregate loss is lower than the sum of the expected
losses from each area. Historical correlations between losses are
taken into account in making these assessments. The high and low
VaR figures reported for each category did not necessarily occur
on the same day as the high and low VaR reported as a whole. Consequently,
a diversification effect balance for the high and low VaR figures
would not be meaningful and is therefore omitted from the above
table.
Average management VaR increased 46% to GBP35m in H120 (H219:
GBP24m) as elevated market volatility resulted in an increase in
credit and equity risk.
Treasury and Capital Risk
Funding and liquidity
Overview
The liquidity pool increased to GBP234bn (December 2019:
GBP169bn) driven by customer deposit growth and actions to maintain
a prudent funding and liquidity position in the current
environment.
For the purpose of liquidity management, Barclays Bank PLC and
its subsidiary Barclays Capital Securities Limited, a UK broker
dealer entity, are monitored on a combined basis by the PRA under
Barclays Bank PLC DoLSub arrangement.
Liquidity risk stress testing
The liquidity risk stress assessment measures the potential
contractual and contingent stress outflows under a range of
scenarios, which are then used to determine the size of the
liquidity pool that is immediately available to meet anticipated
outflows if a stress occurs. The scenarios include a 30 day
Barclays-specific stress event, a 90 day market-wide stress event
and a 30 day combined scenario consisting of both a Barclays
specific and market-wide stress event.
The CRR (as amended by CRR II) Liquidity Coverage ratio (LCR)
requirement takes into account the relative stability of different
sources of funding and potential incremental funding requirements
in a stress. The LCR is designed to promote short-term resilience
of a bank's liquidity risk profile by holding sufficient high
quality liquid assets to survive an acute stress scenario lasting
for 30 days.
As at 30 June 2020, Barclays Bank PLC DoLSub held eligible
liquid assets well above 100% of the net stress outflows to its
internal and regulatory requirements. The proportion of the
liquidity pool between cash and deposits with central banks,
government bonds and other eligible securities is broadly similar
to the Barclays Group.
A significant portion of the liquidity pool is located in
Barclays Bank PLC and Barclays Bank Ireland PLC. The residual
portion of the liquidity pool, which is predominantly in the US
subsidiaries, is held against entity-specific stress outflows and
local regulatory requirements.
As at As at
30.06.20 31.12.19
GBPbn GBPbn
================================================== ======== ========
Barclays Bank Group liquidity pool 234 169
%%
================================================== ======== =======
Barclays Bank PLC DoLSub liquidity coverage ratio 166 141
Capital and leverage
Barclays Bank PLC is currently regulated by the PRA on a
solo-consolidated basis. Barclays Bank PLC solo-consolidated
comprises Barclays Bank PLC plus certain additional subsidiaries,
subject to PRA approval. The disclosures below provide key capital
metrics for Barclays Bank PLC solo-consolidated with further
information on its risk profile to be included in the Barclays PLC
Pillar 3 Report H1 2020, expected to be published on 14 August
2020, and which will be available at
home.barclays/investor-relations/reports-and-events/latest-financial-results.
On 27 June 2019, CRR II came into force amending CRR. As an
amending regulation, the existing provisions of CRR apply unless
they are amended by CRR II. Certain aspects of CRR II are dependent
on final technical standards to be issued by the European Banking
Authority (EBA) and adopted by the European Commission as well as
UK implementation of the rules.
On 27 June 2020, CRR was further amended to accelerate specific
CRR II measures and implement a new IFRS 9 transitional relief
calculation. Previously due to be implemented in June 2021, the
accelerated measures primarily relate to the CRR leverage
calculation to include additional settlement netting and limited
changes to the calculation of RWAs.
The IFRS 9 transitional arrangements have been extended by two
years and a new modified calculation has been introduced. 100%
relief will be applied to increases in stage 1 and stage 2
provisions from 1 January 2020 throughout 2020 and 2021; 75% in
2022; 50% in 2023; 25% in 2024 with no relief applied from 2025.
The phasing out of transitional relief on the "day 1" impact of
IFRS 9 as well as increases in stage 1 and stage 2 provisions
between 1 January 2018 and 31 December 2019 under the modified
calculation remain unchanged and continue to be subject to 70%
transitional relief throughout 2020; 50% for 2021; 25% for 2022 and
with no relief applied from 2023.
Also impacting own funds from 30 June 2020 until 31 December
2020 inclusive are amendments to the regulatory technical standards
on prudential valuation which include an increase to
diversification factors applied to certain additional valuation
adjustments.
The disclosures in the following section reflect Barclays'
interpretation of the current rules and guidance.
As at As at
Capital ratios(1,2,3) 30.06.20 31.12.19
========================= ========= =========
CET1 14.3% 13.9%
Tier 1 (T1) 17.8% 18.1%
Total regulatory capital 21.0% 22.1%
Capital resources GBPm GBPm
============================ ======= =======
CET1 capital 27,197 22,080
T1 capital 33,781 28,600
Total regulatory capital 39,965 34,955
Risk weighted assets (RWAs) 190,049 158,393
Leverage ratio(1,4) GBPm GBPm
====================== ======= =======
CRR leverage ratio 4.1% 3.9%
T1 capital 33,781 28,600
CRR leverage exposure 817,372 731,715
1 Capital, RWAs and leverage are calculated applying the transitional
arrangements of the CRR as amended by CRR II applicable as at the
reporting date. This includes IFRS 9 transitional arrangements
and the grandfathering of CRR and CRR II non-compliant capital
instruments.
2 The fully loaded CET1 ratio was 13.8%, with GBP26,116m of CET1
capital and GBP189,150m of RWAs calculated without applying the
transitional arrangements of the CRR as amended by CRR II applicable
as at the reporting date.
3 The Barclays PLC CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays Bank PLC Tier 2 Contingent Capital
Notes, was 14.2%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR,
including the IFRS 9 transitional arrangements. The benefit of
the Financial Services Authority (FSA) October 2012 interpretation
of the transitional provisions, relating to the implementation
of CRD IV, expired in December 2017.
4 Barclays Bank PLC solo-consolidated discloses the CRR Leverage
Ratio and has no binding requirement as at 30 June 2020. Had the
UK leverage rules been applied, which provides a similar exclusion
for qualifying claims on central banks as under CRR II, the 30
June leverage exposure would have reduced to GBP713.2bn and the
ratio would have increased to 4.6%. The exclusion for qualifying
claims on central banks under CRR II is subject to PRA approval
for all UK banks and as at 30 June 2020 this approval had not been
given.
Statement of D irectors ' R esponsibilities
The Directors (the names of whom are set out below) are required
to prepare the financial statements on a going concern basis unless
it is not appropriate to do so. In making this assessment, the
directors have considered information relating to present and
future conditions. Each of the Directors confirm that to the best
of their knowledge, the condensed consolidated interim financial
statements set out on pages 19 to 24 have been prepared in
accordance with International Accounting Standard 34, Interim
Financial Reporting, as adopted by the European Union (EU), and
that the interim management report herein includes a fair review of
the information required by Disclosure Guidance and Transparency
Rules 4.2.7R and 4.2.8R namely:
-- an indication of important events that have occurred during the six
months ended 30 June 2020 and their impact on the condensed consolidated
interim financial statements, and a description of the principal risks
and uncertainties for the remaining six months of the financial year
-- any related party transactions in the six months ended 30 June
2020 that have materially affected the financial position or performance
of Barclays Bank Group during that period and any changes in the
related party transactions described in the last Annual Report that
could have a material effect on the financial position or performance
of Barclays Bank Group in the six months ended 30 June 2020.
Signed on 28 July 2020 on behalf of the Board by
James E Staley Steven Ewart
Barclays Bank Group Chief Executive Barclays Bank Group Chief Financial
Officer Officer
Barclays Bank PLC Board of Directors:
Chairman Executive Directors Non-executive Directors
Nigel Higgins James E Staley Mike Ashley
Tushar Morzaria Tim Breedon CBE
Mary Anne Citrino
Mohamed A. El-Erian
Dawn Fitzpatrick
Mary Francis CBE
Diane Schueneman
Independent Review Report to Barclays Bank PLC
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the Interim Results Announcement for the
six months ended 30 June 2020 which comprises:
-- the condensed consolidated income statement and condensed consolidated
statement of comprehensive income for the period then ended;
-- the condensed consolidated balance sheet as at 30 June 2020;
-- the condensed consolidated statement of changes in equity for the
period then ended;
-- the condensed consolidated cash flow statement for the period then
ended; and
-- the related explanatory notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the Interim Results Announcement for the six months ended 30
June 2020 is not prepared, in all material respects, in accordance
with IAS 34 Interim Financial Reporting as adopted by the EU and
the Disclosure Guidance and Transparency Rules ("the DTR") of the
UK's Financial Conduct Authority ("the UK FCA").
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the Interim
Results Announcement and consider whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Directors' responsibilities
The Interim Results Announcement is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the Interim Results Announcement in accordance with
the DTR of the UK FCA.
As disclosed in Note 1, Basis of preparation, the annual
financial statements of the Barclays Bank Group are prepared in
accordance with International Financial Reporting Standards as
adopted by the EU. The directors are responsible for preparing the
condensed set of financial statements included in the Interim
Results Announcement in accordance with IAS 34 as adopted by the
EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the Interim Results
Announcement based on our review.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Michelle Hinchliffe
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London, E14 5GL
28 July 2020
Condensed Consolidated Financial Statements
Condensed consolidated income statement (unaudited)
Half year ended Half year ended
30.06.20 30.06.19
Notes(1) GBPm GBPm
================================================================== ======== =============== ===============
Interest and similar income 3,173 3,938
Interest and similar expense (1,502) (2,117)
================================================================== ======== =============== ===============
Net interest income 1,671 1,821
Fee and commission income 3,818 3,790
Fee and commission expense (939) (961)
================================================================== ======== =============== ===============
Net fee and commission income 3 2,879 2,829
Net trading income 4,225 2,093
Net investment income (146) 337
Other income 8 42
================================================================== ======== =============== ===============
Total income 8,637 7,122
Credit impairment charges (2,674) (510)
================================================================== ======== =============== ===============
Net operating income 5,963 6,612
Staff costs (2,191) (2,354)
Infrastructure, administration and general expenses (2,357) (2,488)
Litigation and conduct (19) (68)
Operating expenses (4,567) (4,910)
Share of post-tax results of associates and joint ventures 1 13
Profit on disposal of subsidiaries, associates and joint ventures 126 10
================================================================== ======== =============== ===============
Profit before tax 1,523 1,725
Tax charge 4 (230) (260)
================================================================== ======== =============== ===============
Profit after tax 1,293 1,465
Attributable to:
================================================================== ======== --------------- ---------------
Equity holders of the parent 960 1,171
Other equity instrument holders 333 294
Profit after tax 1,293 1,465
1 For notes to the Financial Statements see pages 25 to 44.
Condensed consolidated statement of comprehensive income (unaudited)
Half year ended Half year ended
30.06.20 30.06.19
Notes(1) GBPm GBPm
================================================================= ======== =============== ===============
Profit after tax 1,293 1,465
Other comprehensive income/(loss) that may be recycled to profit or loss(2)
============================================================================================ ===============
Currency translation reserve 12 1,386 232
Fair value through other comprehensive income reserve 12 137 359
Cash flow hedging reserve 12 1,065 612
Other (6) -
================================================================= ======== =============== ===============
Other comprehensive income that may be recycled to profit 2,582 1,203
Other comprehensive income/(loss) not recycled to profit or loss
============================================================================================ ===============
Retirement benefit remeasurements 9 645 (140)
Own credit 12 496 44
================================================================= ======== =============== ===============
Other comprehensive income/(loss) not recycled to profit or loss 1,141 (96)
Other comprehensive income for the period 3,723 1,107
Total comprehensive income for the period 5,016 2,572
1 For notes to the Financial Statements see pages 25 to 44.
2 Reported net of tax.
Condensed consolidated balance sheet (unaudited)
As at As at
30.06.20 31.12.19
Assets Notes(1) GBPm GBPm
================================================================== ======== ========= ========
Cash and balances at central banks 155,792 125,940
Cash collateral and settlement balances 130,873 79,486
Loans and advances at amortised cost 150,203 141,636
Reverse repurchase agreements and other similar secured lending 19,811 1,731
Trading portfolio assets 109,461 113,337
Financial assets at fair value through the income statement 155,540 129,470
Derivative financial instruments 307,650 229,641
Financial assets at fair value through other comprehensive income 55,161 45,406
Investments in associates and joint ventures 30 295
Goodwill and intangible assets 1,250 1,212
Property, plant and equipment 1,654 1,631
Current tax assets 984 898
Deferred tax assets 4 2,639 2,460
Retirement benefit assets 9 2,848 2,108
Other assets 2,062 1,421
================================================================== ======== ========= ========
Total assets 1,095,958 876,672
Liabilities
================================================================== ======== ========= ========
Deposits at amortised cost 245,737 213,881
Cash collateral and settlement balances 113,341 67,682
Repurchase agreements and other similar secured borrowing 4,033 2,032
Debt securities in issue 50,496 33,536
Subordinated liabilities 7 36,965 33,425
Trading portfolio liabilities 50,378 35,212
Financial liabilities designated at fair value 222,142 204,446
Derivative financial instruments 307,989 228,940
Current tax liabilities 310 320
Deferred tax liabilities 4 1,084 80
Retirement benefit liabilities 9 319 313
Other liabilities 5,385 5,239
Provisions 8 1,085 951
================================================================== ======== ========= ========
Total liabilities 1,039,264 826,057
Equity
================================================================== ======== ========= ========
Called up share capital and share premium 10 2,348 2,348
Other equity instruments 11 8,323 8,323
Other reserves 12 6,319 3,235
Retained earnings 39,704 36,709
Total equity 56,694 50,615
Total liabilities and equity 1,095,958 876,672
1 For notes to the Financial Statements see pages 25 to 44.
Condensed consolidated statement of changes in equity (unaudited)
Called up share
capital and share Other equity
premium(1) instruments(1) Other reserves(1) Retained earnings Total
Half year ended
30.06.20 GBPm GBPm GBPm GBPm GBPm
======================= ====================== ====================== ================= ================= =======
Balance as at 1 January
2020 2,348 8,323 3,235 36,709 50,615
Profit after tax - 333 - 960 1,293
Currency translation
movements - - 1,386 - 1,386
Fair value through
other comprehensive
income reserve - - 137 - 137
Cash flow hedges - - 1,065 - 1,065
Retirement benefit
remeasurements - - - 645 645
Own credit - - 496 - 496
Other - - - (6) (6)
======================= ====================== ====================== ================= ================= =======
Total comprehensive
income for the period - 333 3,084 1,599 5,016
Other equity
instruments coupons
paid - (333) - - (333)
Equity settled share
schemes - - - 475 475
Vesting of Barclays PLC
shares under equity
settled share schemes - - - (289) (289)
Dividends paid - - - (263) (263)
Dividends paid -
preference shares - - - (28) (28)
Capital contribution
from Barclays PLC - 1,500 1,500
Other movements - - - 1 1
======================= ====================== ====================== ================= ================= =======
Balance as at 30 June
2020 2,348 8,323 6,319 39,704 56,694
Half year ended
31.12.19
======================= ====================== ====================== ================= ================= =======
Balance as at 1 July
2019 2,348 9,402 4,608 36,252 52,610
Profit after tax - 366 - 949 1,315
Currency translation
movements - - (776) - (776)
Fair value through
other comprehensive
income reserve - - (200) - (200)
Cash flow hedges - - (101) - (101)
Retirement benefit
remeasurements - - - (54) (54)
Own credit - - (296) - (296)
Other - - - 16 16
======================= ====================== ====================== ================= ================= =======
Total comprehensive
income for the period - 366 (1,373) 911 (96)
Issue and exchange of
other equity
instruments - (1,079) - (395) (1,474)
Other equity
instruments coupons
paid - (366) - - (366)
Equity settled share
schemes - - - 194 194
Vesting of Barclays PLC
shares under equity
settled share schemes - - - (9) (9)
Dividends paid - - - (233) (233)
Dividends paid -
preference shares (14) (14)
Other movements - - - 3 3
======================= ====================== ====================== ================= ================= =======
Balance as at 31
December 2019 2,348 8,323 3,235 36,709 50,615
1 Details of share capital, other equity instruments and other reserves
are shown on pages 25 to 44.
Condensed consolidated statement of changes in equity (unaudited)
Called up
share capital
and share Other equity Other Retained Non-controlling
premium(1) instruments(1) reserves(1) earnings Total interests Total equity
Half year ended
30.06.19 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ============== ============== ============== ============== ====== =============== ============
Balance as at 1
January 2019 2,348 7,595 3,361 34,405 47,709 2 47,711
Profit after
tax - 294 - 1,171 1,465 - 1,465
Currency
translation
movements - - 232 - 232 - 232
Fair value
through other
comprehensive
income reserve - - 359 - 359 - 359
Cash flow
hedges - - 612 - 612 - 612
Retirement
benefit
remeasurements - - - (140) (140) - (140)
Own credit - - 44 - 44 - 44
=============== ============== ============== ============== ============== ====== =============== ============
Total
comprehensive
income for the
period - 294 1,247 1,031 2,572 - 2,572
Issue or
exchange of
other equity
instruments - 1,807 - (11) 1,796 - 1,796
Other equity
instruments
coupon paid (294) - (294) - (294)
Equity settled
share schemes - - - 198 198 - 198
Vesting of
Barclays PLC
shares under
equity settled
share schemes - - - (340) (340) - (340)
Dividends paid
- preference
shares - - - (27) (27) - (27)
Capital
contribution
from Barclays
PLC - - - 995 995 - 995
Other movements - - - 1 1 (2) (1)
=============== ============== ============== ============== ============== ====== =============== ============
Balance as at
30 June 2019 2,348 9,402 4,608 36,252 52,610 - 52,610
1 Details of share capital, other equity instruments and other reserves
are shown on pages 25 to 44.
Condensed consolidated cash flow statement (unaudited)
Half year ended Half year ended
30.06.20 30.06.19
GBPm GBPm
======================================================= =============== ===============
Profit before tax 1,523 1,725
Adjustment for non-cash items 301 314
Net increase in loans and advances at amortised cost (11,096) (6,368)
Net increase in deposits at amortised cost 32,357 15,553
Net increase in debt securities in issue 16,960 3,188
Changes in other operating assets and liabilities 4,825 (16,727)
Corporate income tax paid (270) (260)
======================================================= =============== ===============
Net cash from operating activities 44,600 (2,575)
Net cash from investing activities (7,022) (9,094)
Net cash from financing activities 653 2,552
Effect of exchange rates on cash and cash equivalents 7,813 652
======================================================= =============== ===============
Net increase/(decrease) in cash and cash equivalents 46,044 (8,465)
Cash and cash equivalents at beginning of the period 156,016 167,357
======================================================= =============== ===============
Cash and cash equivalents at end of the period 202,060 158,892
Financial Statement Notes
1. Basis of preparation
These condensed consolidated interim financial statements for
the six months ended 30 June 2020 have been prepared in accordance
with the Disclosure and Transparency Rules (DTR) of the Financial
Conduct Authority UK (FCA) and with IAS 34, Interim Financial
Reporting, as published by the International Accounting Standards
Board (IASB) and adopted by the EU. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2019,
which have been prepared in accordance with IFRSs as published by
the IASB and as adopted by the EU.
The accounting policies and methods of computation used in these
condensed consolidated interim financial
statements are the same as those used in the Barclays Bank PLC Annual Report 2019.
1. Going concern
The financial statements are prepared on a going concern basis,
as the Directors are satisfied that the Barclays Bank Group and
parent company have the resources to continue in business for the
foreseeable future. In making this assessment, the Directors have
considered a wide range of information relating to present and
future conditions, including future projections of profitability,
capital requirements and capital resources.
2. Other disclosures
The Credit risk disclosures on pages 6 to 13 form part of these
interim financial statements.
2. Segmental reporting
Analysis of results by business
Corporate Consumer,
and Investment Cards and Barclays
Bank Payments Head Office Bank Group
Half year ended 30.06.20 GBPm GBPm GBPm GBPm
================================ =============== ========== =========== ===========
Total income 6,973 1,742 (78) 8,637
Credit impairment charges (1,320) (1,299) (55) (2,674)
================================ =============== ========== =========== ===========
Net operating income/(expenses) 5,653 443 (133) 5,963
Operating expenses (3,458) (1,053) (37) (4,548)
Litigation and conduct (4) (8) (7) (19)
================================ =============== ========== =========== ===========
Total operating expenses (3,462) (1,061) (44) (4,567)
Other net income/(expenses)(1) 12 115 - 127
================================ =============== ========== =========== ===========
Profit/(loss) before tax 2,203 (503) (177) 1,523
As at 30.06.20 GBPbn GBPbn GBPbn GBPbn
================================ =============== ========== =========== ===========
Total assets 1,017.1 66.0 12.9 1,096.0
Corporate Consumer,
and Investment Cards and Barclays
Bank Payments Head Office Bank Group
Half year ended 30.06.19 GBPm GBPm GBPm GBPm
================================ =============== ========== =========== ===========
Total income 5,149 2,193 (220) 7,122
Credit impairment charges (96) (396) (18) (510)
================================ =============== ========== =========== ===========
Net operating income/(expenses) 5,053 1,797 (238) 6,612
Operating expenses (3,589) (1,207) (45) (4,841)
Litigation and conduct (26) (4) (39) (69)
================================ =============== ========== =========== ===========
Total operating expenses (3,615) (1,211) (84) (4,910)
Other net income/(expenses)(1) 15 16 (8) 23
================================ =============== ========== =========== ===========
Profit/(loss) before tax 1,453 602 (330) 1,725
As at 31.12.19 GBPbn GBPbn GBPbn GBPbn
================================ =============== ========== =========== ===========
Total assets 799.6 65.7 11.4 876.7
1 Other net income/(expenses) represents the share of post-tax results
of associates and joint ventures, profit (or loss) on disposal
of subsidiaries, associates and joint ventures and gains on acquisitions.
Split of income by geographic region(1)
Half year Half year
ended ended
30.06.20 30.06.19
GBPm GBPm
======================================== ========= =========
UK 2,835 2,089
Europe 1,240 783
Americas 3,872 3,680
Africa and Middle East 23 41
Asia 667 529
======================================== ========= =========
Total 8,637 7,122
1 The geographical analysis is now based on the location of office
where the transactions are recorded, whereas in the prior year
it was based on counterparty location. The approach was changed
at year-end 2019 and is better aligned to the geographical view
of the business following the implementation of structural reform.
Prior year comparatives have been restated.
3. Net fee and commission income
Fee and commission income is disaggregated below and includes a
total for fees in scope of IFRS 15, Revenue from Contracts with
Customers:
Corporate Consumer,
and Investment Cards and
Bank Payments Head Office Total
Half year ended 30.06.20 GBPm GBPm GBPm GBPm
============================== =============== ========== =========== =====
Fee type
Transactional 177 968 - 1,145
Advisory 260 46 - 306
Brokerage and execution 654 31 - 685
Underwriting and syndication 1,468 - - 1,468
Other 35 100 19 154
============================== =============== ========== =========== =====
Total revenue from contracts
with customers 2,594 1,145 19 3,758
Other non-contract fee income 57 3 - 60
============================== =============== ========== =========== =====
Fee and commission income 2,651 1,148 19 3,818
Fee and commission expense (441) (497) (1) (939)
============================== =============== ========== =========== =====
Net fee and commission income 2,210 651 18 2,879
Corporate Consumer,
and Investment Cards and
Bank Payments Head Office Total
Half year ended 30.06.19 GBPm GBPm GBPm GBPm
============================== =============== ========== =========== =====
Fee type
Transactional 185 1,168 - 1,353
Advisory 364 41 - 405
Brokerage and execution 512 24 - 536
Underwriting and syndication 1,240 - - 1,240
Other 62 124 16 202
============================== =============== ========== =========== =====
Total revenue from contracts
with customers 2,363 1,357 16 3,736
Other non-contract fee income 54 - - 54
============================== =============== ========== =========== =====
Fee and commission income 2,417 1,357 16 3,790
Fee and commission expense (350) (611) - (961)
============================== =============== ========== =========== =====
Net fee and commission income 2,067 746 16 2,829
Transactional fees are service charges on deposit accounts, cash
management services and transactional processing fees. This
includes interchange and merchant fee income generated from credit
and bank card usage.
Advisory fees are generated from asset management services and
advisory services related to mergers, acquisitions and financial
restructuring.
Brokerage and execution fees are earned for executing client
transactions with exchanges and over-the-counter markets and
assisting clients in clearing transactions.
Underwriting and syndication fees are earned for the
distribution of client equity or debt securities, and the
arrangement and administration of a loan syndication. This includes
commitment fees to provide loan financing.
4. Tax
The tax charge for H120 was GBP230m (H119: GBP260m),
representing an effective tax rate of 15.1% (H119: 15.1%).
As at As at
30.06.20 31.12.19
Deferred tax assets and liabilities GBPm GBPm
==================================== ======== ========
USA 2,168 2,052
Other territories 471 408
==================================== ======== ========
Deferred tax assets 2,639 2,460
Deferred tax liabilities - UK (1,084) (80)
Analysis of deferred tax assets
==================================== ======== ========
Temporary differences 2,184 1,937
Tax losses 455 523
==================================== ======== ========
Deferred tax assets 2,639 2,460
5 Dividends on o rdinary s hares
.
Half year Half year
ended ended
30.06.20 30.06.19
Dividends paid during the period GBPm GBPm
================================= ========= =========
Ordinary shares 263 -
Preference shares 28 27
================================= ========= =========
Total 291 27
A dividend of GBP263m was paid on 25 March 2020 by Barclays Bank
PLC to its parent Barclays PLC. This was prior to the announcement
made by the PRA on 31 March 2020 that capital be preserved for use
in serving Barclays customers and clients through the extraordinary
challenges presented by the COVID-19 pandemic. As part of a
response to this announcement, Barclays PLC took steps to provide
additional capital to Barclays Bank PLC as part of the GBP1.5bn of
capital contributions made during H120.
6. Fair value of financial instruments
This section should be read in conjunction with Note 16, Fair
value of financial instruments of the Barclays Bank PLC Annual
Report 2019 and Note 1, Basis of preparation on page 25, which
provides more detail about accounting policies adopted, valuation
methodologies used in calculating fair value and the valuation
control framework which governs oversight of valuations. There have
been no changes in the accounting policies adopted or the valuation
methodologies used.
Valuation
The following table shows Barclays Bank Group's assets and
liabilities that are held at fair value disaggregated by valuation
technique (fair value hierarchy) and balance sheet
classification:
Valuation technique using
===================================
Quoted Significant
market Observable unobservable
prices inputs inputs
(Level (Level (Level
1) 2) 3) Total
As at 30.06.20 GBPm GBPm GBPm GBPm
======================================= ======== ========== ============= =========
Trading portfolio assets 49,106 57,277 3,078 109,461
Financial assets at fair value through
the income statement 1,824 148,894 4,822 155,540
Derivative financial instruments 8,761 291,142 7,747 307,650
Financial assets at fair value through
other comprehensive income 13,172 41,642 347 55,161
Investment property - - 10 10
======================================= ======== ========== ============= =========
Total assets 72,863 538,955 16,004 627,822
Trading portfolio liabilities (31,333) (19,045) - (50,378)
Financial liabilities designated at
fair value (123) (221,664) (355) (222,142)
Derivative financial instruments (8,445) (290,612) (8,932) (307,989)
======================================= ======== ========== ============= =========
Total liabilities (39,901) (531,321) (9,287) (580,509)
As at 31.12.19
======================================= ======== ========== ============= =========
Trading portfolio assets 59,968 51,105 2,264 113,337
Financial assets at fair value through
the income statement 10,300 115,008 4,162 129,470
Derivative financial instruments 5,439 221,048 3,154 229,641
Financial assets at fair value through
other comprehensive income 11,577 33,400 429 45,406
Investment property - - 13 13
======================================= ======== ========== ============= =========
Total assets 87,284 420,561 10,022 517,867
Trading portfolio liabilities (19,645) (15,567) - (35,212)
Financial liabilities designated at
fair value (82) (204,021) (343) (204,446)
Derivative financial instruments (5,305) (219,646) (3,989) (228,940)
======================================= ======== ========== ============= =========
Total liabilities (25,032) (439,234) (4,332) (468,598)
The following table shows Barclays Bank Group's Level 3 assets
and liabilities that are held at fair value disaggregated by
product type:
As at 30.06.20 As at 31.12.19
---------------------------------- ------------------- -------------------
Assets Liabilities Assets Liabilities
GBPm GBPm GBPm GBPm
================================== ====== =========== ====== ===========
Interest rate derivatives 4,152 (3,772) 605 (812)
Foreign exchange derivatives 655 (588) 291 (298)
Credit derivatives 193 (456) 539 (342)
Equity derivatives 2,730 (4,099) 1,710 (2,528)
Commodity derivatives 17 (17) 9 (9)
Corporate debt 516 - 521 -
Reverse repurchase and repurchase
agreements - (176) - (167)
Non-asset backed loans 4,827 - 3,280 -
Asset backed securities 740 - 756 -
Equity cash products 1,145 - 1,228 -
Private equity investments 126 - 112 -
Other(1) 903 (179) 971 (176)
================================== ====== =========== ====== ===========
Total 16,004 (9,287) 10,022 (4,332)
1 Other includes commercial real estate loans, fund and fund-linked
products, asset backed loans, issued debt, commercial paper, government
sponsored debt and investment property.
Assets and liabilities reclassified between Level 1 and Level
2
During the period, there were no material transfers between
Level 1 and Level 2 (period ended December 2019: no material
transfers between Level 1 and Level 2).
Level 3 movement analysis
The following table summarises the movements in the balances of
Level 3 assets and liabilities during the period. The table shows
gains and losses and includes amounts for all financial assets and
liabilities that are held at fair value transferred to and from
Level 3 during the period. Transfers have been reflected as if they
had taken place at the beginning of the year.
Asset and liability moves between Level 2 and Level 3 are
primarily due to i) an increase or decrease in observable market
activity related to an input or ii) a change in the significance of
the unobservable input, with assets and liabilities classified as
Level 3 if an unobservable input is deemed significant.
Level 3 movement analysis
Total gains
and losses Total
in the period gains
recognised or losses
Settle- in the income recognised As at
Purchases Sales Issues ments statement in OCI Transfers 30.06.20
===========
As at Trading Other
01.01.20 income income In Out
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ========= ========= ======= ====== ======= ======== ======= ========== ==== ===== =========
Corporate debt 120 25 - - - (26) - - 4 (17) 106
Non-asset
backed
loans 974 1,927 (740) - (4) (111) - - 97 (320) 1,823
Asset backed
securities 656 249 (224) - (76) (12) - - 41 (11) 623
Equity cash
products 392 2 (4) - - (67) - - 28 (4) 347
Other 122 47 - - - 2 - - 8 - 179
=============== ========= ========= ======= ====== ======= ======== ======= ========== ==== ===== =========
Trading
portfolio
assets 2,264 2,250 (968) - (80) (214) - - 178 (352) 3,078
Non-asset
backed
loans 1,964 1,050 (270) - (112) 110 - - - - 2,742
Equity cash
products 835 14 - - - (22) (29) - - - 798
Private equity
investments 113 1 (2) - - 2 4 - 20 (12) 126
Other 1,250 1,865 (2,017) - (13) (8) 55 - 24 - 1,156
=============== ========= ========= ======= ====== ======= ======== ======= ========== ==== ===== =========
Financial
assets
at fair value
through the
income
statement 4,162 2,930 (2,289) - (125) 82 30 - 44 (12) 4,822
Non-asset
backed
loans 343 79 - - (157) - - (3) - - 262
Asset backed
securities 86 - (1) - - 1 - (1) - - 85
=============== ========= ========= ======= ====== ======= ======== ======= ========== ==== ===== =========
Financial
assets
at fair value
through other
comprehensive
income 429 79 (1) - (157) 1 - (4) - - 347
Investment
property 13 - (1) - - - (2) - 2 (2) 10
Trading - - - - - - - - - - -
portfolio
liabilities
Issued debt (146) - - (3) - - - - (22) 14 (157)
Other (197) - - - - (12) (1) - - 12 (198)
=============== ========= ========= ======= ====== ======= ======== ======= ========== ==== ===== =========
Financial
liabilities
designated at
fair value (343) - - (3) - (12) (1) - (22) 26 (355)
Interest rate
derivatives (206) 17 - - 10 268 1 - 300 (10) 380
Foreign
exchange
derivatives (7) - - - (12) 89 - - 5 (8) 67
Credit
derivatives 198 (258) 11 - (376) 151 1 - 2 8 (263)
Equity
derivatives (820) (447) (1) - 17 (90) - - (5) (23) (1,369)
Commodity - - - - - - - - - - -
derivatives
=============== ========= ========= ======= ====== ======= ======== ======= ========== ==== ===== =========
Net derivative
financial
instruments(1) (835) (688) 10 - (361) 418 2 - 302 (33) (1,185)
Total 5,690 4,571 (3,249) (3) (723) 275 29 (4) 504 (373) 6,717
1 Derivative financial instruments are represented on a net basis.
On a gross basis, derivative financial assets were GBP7,747m and
derivative financial liabilities were GBP8,932m.
Level 3 movement analysis
Total gains
and losses
in the period
recognised
in the income
statement Transfers
================ ============
As at Settle- Trading Other As at
01.01.19 Purchases Sales Issues ments income income In Out 30.06.19
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
========================== ========= ========= ======= ====== ======= ======= ======= ===== ===== =========
Government and
government sponsored
debt 14 2 - - - - - - (14) 2
Corporate debt 388 70 (24) - (31) 14 - 32 (74) 375
Non-asset backed
loans 2,263 1,235 (1,260) - (19) 12 - 19 (90) 2,160
Asset backed securities 664 81 (127) - - 5 - 16 (29) 610
Equity cash products 136 48 (13) - - (2) - 116 (20) 265
Other 148 - - - (1) (10) - - (1) 136
Trading portfolio
assets 3,613 1,436 (1,424) - (51) 19 - 183 (228) 3,548
Non-asset backed
loans 1,836 2 - - (132) 70 - - (1) 1,775
Equity cash products 559 9 - - (10) 4 178 - - 740
Private equity
investments 191 4 (3) - (1) - (6) - - 185
Other 2,064 2,334 (2,619) - (2) 17 9 24 (840) 987
Financial assets
at fair value through
the income statement 4,650 2,349 (2,622) - (145) 91 181 24 (841) 3,687
Non-asset backed
loans 353 48 - - (55) - - - (218) 128
Asset backed securities - 40 - - - - - - - 40
Equity cash products 2 - - - - - - - - 2
Financial assets
at fair value through
other comprehensive
income 355 88 - - (55) - - - (218) 170
Investment property 9 - - - - - (1) - - 8
Trading portfolio
liabilities (3) - - - - 2 - (5) - (6)
-
Certificates of
deposit, commercial
paper and other
money market instruments (10) - - - 1 - (1) (11) - (21)
Issued debt (251) - - (16) 1 5 - (3) 1 (263)
Financial liabilities
designated at fair
value (261) - - (16) 2 5 (1) (14) 1 (284)
Interest rate derivatives 22 (3) - - 76 116 - (107) 145 249
Foreign exchange
derivatives 7 - - - (12) (41) - (51) 17 (80)
Credit derivatives 1,050 (63) 4 - (3) 86 - 2 3 1,079
Equity derivatives (607) (122) (5) - 23 89 - (16) 292 (346)
Commodity derivatives - - - - - - - - - -
Net derivative
financial instruments(1) 472 (188) (1) - 84 250 - (172) 457 902
Total 8,835 3,685 (4,047) (16) (165) 367 179 16 (829) 8,025
1 Derivative financial instruments are presented on a net basis.
On a gross basis, derivative financial assets were GBP5,701m and
derivative financial liabilities were GBP4,799m.
Unrealised g ains and losses on Level 3 financial assets and
liabilities
The following table discloses the unrealised gains and losses
recognised in the period arising on Level 3 financial assets and
liabilities held at the period end.
Half year ended 30.06.20 Half year ended 30.06.19
Income statement Income statement
Other Other
Trading Other compre-hensive Trading Other compre-hensive
income income income Total income income income Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Trading portfolio assets (177) - - (177) 21 - - 21
Financial assets at fair
value through the income
statement 126 (24) - 102 75 178 - 253
Financial assets at fair
value through other
comprehensive
income - - (2) (2) - - - -
Investment properties - (2) - (2) - (1) - (1)
Trading portfolio liabilities - - - - 2 - - 2
Financial liabilities
designated
at fair value (16) (1) - (17) 6 - - 6
Net derivative financial
instruments 248 - - 248 212 - - 212
Total 181 (27) (2) 152 316 177 - 493
Valuation techniques and sensitivity analysis
Sensitivity analysis is performed on products with significant
unobservable inputs (Level 3) to generate a range of reasonably
possible alternative valuations. The sensitivity methodologies
applied take account of the nature of valuation techniques used, as
well as the availability and reliability of observable proxy and
historical data and the impact of using alternative models.
Sensitivity analysis of valuations using unobservable inputs
As at 30.06.20 As at 31.12.19
Unfavourable Favourable Unfavourable
Favourable changes changes changes changes
Income Income Income Income
statement Equity Statement Equity statement Equity Statement Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Interest rate derivatives 138 - (256) - 44 - (127) -
Foreign exchange
derivatives 7 - (11) - 5 - (7) -
Credit derivatives 127 - (109) - 73 - (47) -
Equity derivatives 151 - (158) - 114 - (119) -
Commodity derivatives - - - - - - - -
Corporate debt 23 - (23) 11 - (16) -
Non-asset backed
loans 159 4 (322) (4) 125 8 (228) (8)
Equity cash products 164 - (206) - 123 - (175) -
Private equity investments 18 - (19) - 16 - (25) -
Other(1) 2 - (2) - 1 - (1) -
Total 789 4 (1,106) (4) 512 8 (745) (8)
1 Other includes commercial real estate loans, fund and fund-linked
products, asset backed loans, issued debt, commercial paper, government
sponsored debt and investment property.
The effect of stressing unobservable inputs to a range of
reasonably possible alternatives, alongside considering the impact
of using alternative models, would be to increase fair values by up
to GBP793m (December 2019: GBP520m) or to decrease fair values by
up to GBP1,110m (December 2019: GBP753m) with substantially all the
potential effect impacting profit and loss rather than
reserves.
Significant unobservable inputs
The valuation techniques and significant unobservable inputs for
assets and liabilities recognised at fair value and classified as
Level 3 are consistent with Note 16, Fair value of financial
instruments in the Barclays Bank PLC Annual Report 2019. The
description of the significant unobservable inputs and the
sensitivity of fair value measurement of the instruments
categorised as Level 3 assets or liabilities to increases in
significant unobservable inputs is also found in Note 16, Fair
value of financial instruments of the Barclays Bank PLC Annual
Report 2019.
Fair value adjustments
Key balance sheet valuation adjustments are quantified
below:
As at As at
30.06.20 31.12.19
GBPm GBPm
Exit price adjustments derived from market bid-offer
spreads (564) (420)
Uncollateralised derivative funding (181) (57)
Derivative credit valuation adjustments (378) (135)
Derivative debit valuation adjustments 148 155
-- Exit price adjustments derived from market bid-offer spreads increased
by GBP144m to GBP564m as a result of movements in market bid offer
spreads.
-- Uncollateralised derivative funding increased by GBP124m to GBP181m
as a result of widening input funding spreads and an update to
methodology.
-- Derivative credit valuation adjustments increased by GBP243m to
GBP378m as a result of widening input counterparty credit spreads.
-- Derivative debit valuation adjustments decreased by GBP7m to GBP148m
as a result of widening input Barclays Bank PLC credit spreads
and an update to methodology.
Portfolio exemption
Barclays Bank Group uses the portfolio exemption in IFRS 13,
Fair Value Measurement to measure the fair value of groups of
financial assets and liabilities. Instruments are measured using
the price that would be received to sell a net long position (i.e.
an asset) for a particular risk exposure or to transfer a net short
position (i.e. a liability) for a particular risk exposure in an
orderly transaction between market participants at the balance
sheet date under current market conditions. Accordingly, the
Barclays Bank Group measures the fair value of the group of
financial assets and liabilities consistently with how market
participants would price the net risk exposure at the measurement
date.
Unrecognised gains as a result of the use of valuation models
using unobservable inputs
The amount that has yet to be recognised in income that relates
to the difference between the transaction price (the fair value at
initial recognition) and the amount that would have arisen had
valuation models using unobservable inputs been used on initial
recognition, less amounts subsequently recognised, is GBP101m
(December 2019: GBP100m) for financial instruments measured at fair
value and GBP31m (December 2019: GBP31m) for financial instruments
carried at amortised cost. There are additions of GBP11m (December
2019: GBP40m) and amortisation and releases of GBP10m (December
2019: GBP67m) for financial instruments measured at fair value and
additions of GBP1m (December 2019: GBP2m) and amortisation and
releases of GBP1m (December 2019: GBP2m) for financial instruments
carried at amortised cost.
Third party credit enhancements
Structured and brokered certificates of deposit issued by
Barclays Bank Group are insured up to $250,000 per depositor by the
Federal Deposit Insurance Corporation (FDIC) in the United States.
The FDIC is funded by premiums that the Barclays Bank Group and
other banks pay for deposit insurance coverage. The carrying value
of these issued certificates of deposit that are designated under
the IFRS 9 fair value option includes this third party credit
enhancement. The on-balance sheet value of these brokered
certificates of deposit amounted to GBP3,162m (December 2019:
GBP3,218m).
Comparison of carrying amounts and fair values for assets and
liabilities not held at fair value
Valuation methodologies employed in calculating the fair value
of financial assets and liabilities measured at amortised cost are
consistent with the Barclays Bank PLC Annual Report 2019
disclosure.
The following table summarises the fair value of financial
assets and liabilities measured at amortised cost on the Barclays
Bank Group's balance sheet:
As at 30.06.20 As at 31.12.19
Carrying Carrying
amount Fair value amount Fair value
Financial assets GBPm GBPm GBPm GBPm
Loans and advances at amortised cost 150,203 149,511 141,636 141,251
Reverse repurchase agreements and
other similar secured lending 19,811 19,811 1,731 1,731
Financial liabilities
Deposits at amortised cost (245,737) (245,758) (213,881) (213,897)
Repurchase agreements and other similar
secured borrowing (4,033) (4,033) (2,032) (2,032)
Debt securities in issue (50,496) (50,568) (33,536) (33,529)
Subordinated liabilities (36,965) (37,675) (33,425) (34,861)
7. Subordinated liabilities
Half year
ended Year ended
30.06.20 31.12.19
GBPm GBPm
Opening balance as at 1 January 33,425 35,327
Issuances 3,162 6,785
Redemptions (2,814) (7,804)
Other 3,192 (883)
Closing balance 36,965 33,425
Issuances of GBP3,162m comprises GBP3,082m intra-group loans
from Barclays PLC as well as GBP80m USD Floating Rate Notes issued
externally by a Barclays Bank PLC subsidiary.
Redemptions of GBP2,814m comprises GBP2,518m intra-group loans
from Barclays PLC as well as GBP266m USD Floating Rate Notes and
GBP30m USD Fixed Rate Notes issued externally by Barclays Bank PLC
subsidiaries.
Other movements predominantly include foreign exchange and fair
value hedge adjustments.
8. Provisions
As at As at
30.06.20 31.12.19
GBPm GBPm
Customer redress 27 71
Legal, competition and regulatory matters 250 374
Redundancy and restructuring 34 63
Undrawn contractually committed facilities and guarantees 593 252
Onerous contracts 9 20
Sundry provisions 172 171
Total 1,085 951
9. Retirement b enefit s
As at 30 June 2020, Barclays Bank Group's IAS 19 pension surplus
across all schemes was GBP2.5bn (December 2019: GBP1.8bn). The UK
Retirement Fund (UKRF), which is the Group's main scheme, had an
IAS 19 pension surplus of GBP2.8bn (December 2019: GBP2.1bn). The
movement for the UKRF was driven by higher than assumed asset
returns and lower than expected long-term price inflation,
partially offset by a decrease in the discount rate.
UKRF funding valuations
The last triennial actuarial valuation of the UKRF had an
effective date of 30 September 2019 and was completed in February
2020. This valuation showed a funding deficit of GBP2.3bn and a
funding level of 94.0%. A revised deficit recovery plan was agreed
with deficit reduction contributions required from Barclays Bank
PLC of GBP500m in 2019, GBP500m in 2020, GBP700m in 2021, GBP294m
in 2022 and GBP286m in 2023. The deficit reduction contributions
are in addition to the regular contributions to meet the Group's
share of the cost of benefits accruing over each year.
On 12 June 2020, Barclays Bank PLC paid the GBP500m deficit
reduction contribution agreed for 2020 and at the same time the
UKRF subscribed for non-transferrable listed senior fixed rate
notes for GBP750m, backed by UK gilts (the Senior Notes). These
Senior Notes entitle the UKRF to semi-annual coupon payments for
five years, and full repayment in cash in three equal tranches in
2023, 2024, and at final maturity in 2025. The Senior Notes were
issued by Heron Issuer Number 2 Limited (Heron 2), an entity that
is consolidated within the Barclays Bank Group under IFRS 10. As a
result of the investment in Senior Notes, the regulatory capital
impact of the GBP500m deficit reduction contribution paid on 12
June 2020 takes effect in 2023, 2024 and 2025 on maturity of the
notes. The GBP250m additional investment by the UKRF in the Senior
Notes has a positive capital impact in 2020 which is reduced
equally in 2023, 2024 and 2025 on the maturity of the notes. Heron
2 acquired a total of GBP750m of gilts from Barclays Bank PLC for
cash to support payments on the Senior Notes.
The next triennial actuarial valuation of the UKRF is due to be
completed in 2023 with an effective date of 30 September 2022.
10. Called up share capital
Ordinary shares
As at 30 June 2020 the issued ordinary share capital of Barclays
Bank PLC comprised 2,342m (December 2019: 2,342m) ordinary shares
of GBP1 each.
Preference share s
As at 30 June 2020 the issued preference share capital of
Barclays Bank PLC of GBP6m (December 2019: GBP6m) comprised 1,000
Sterling Preference Shares of GBP1 each (December 2019: 1,000);
31,856 Euro Preference Shares of EUR100 each (December 2019:
31,856); and 58,133 US Dollar Preference shares of $100 each
(December 2019: 58,133).
There were no issuances or redemptions of ordinary or preference
shares in the six months to 30 June 2020.
11. Other equity instruments
Other equity instruments of GBP8,323m (December 2019: GBP8,323m)
are AT1 securities issued to Barclays PLC. Barclays PLC uses funds
from the market issuance to purchase AT1 securities from Barclays
Bank PLC. There have been no issuances or redemptions in the
period.
The AT1 securities are perpetual securities with no fixed
maturity and are structured to qualify as AT1 instruments under
prevailing capital rules applicable as at the relevant issue date.
AT1 securities are undated and are redeemable, at the option of
Barclays Bank PLC, in whole at the initial call date, or on any
fifth anniversary after the initial call date. In addition, the AT1
securities are redeemable, at the option of Barclays Bank PLC, in
whole in the event of certain changes in the tax or regulatory
treatment of the securities. Any redemptions require the prior
consent of the PRA.
12. Other reserves
As at As at
30.06.20 31.12.19
GBPm GBPm
Currency translation reserve 4,769 3,383
Fair value through other comprehensive income reserve (2) (139)
Cash flow hedging reserve 1,453 388
Own credit reserve 123 (373)
Other reserves (24) (24)
Total 6,319 3,235
Currency t ranslation r eserve
The currency translation reserve represents the cumulative gains
and losses on the retranslation of Barclays Bank Group's net
investment in foreign operations, net of the effects of
hedging.
As at 30 June 2020, there was a credit balance of GBP4,769m
(December 2019: GBP3,383m credit) in the currency translation
reserve. The GBP1,386m credit movement principally reflected the
strengthening of period end USD exchange rate against GBP.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve
represents the unrealised change in the fair value through other
comprehensive income investments since initial recognition.
As at 30 June 2020, there was a debit balance of GBP2m (December
2019: GBP139m debit) in the fair value through other comprehensive
income reserve. The gain of GBP137m is principally driven by a
GBP277m gain from the increase in fair value of bonds due to
decreasing bond yields. This is partially offset by GBP114m of net
gains transferred to the income statement and a tax charge of
GBP42m.
Cash f low h edg ing r eserve
The cash flow hedging reserve represents the cumulative gains
and losses on effective cash flow hedging instruments that will be
recycled to the income statement when the hedged transactions
affect profit or loss.
As at 30 June 2020, there was a credit balance of GBP1,453m
(December 2019: GBP388m credit) in the cash flow hedging reserve.
The increase of GBP1,065m principally reflects a GBP1,587m increase
in the fair value of interest rate swaps held for hedging purpose
as major interest rate forward curves decreased. This is partially
offset by GBP117m of gains transferred to the income statement and
a tax charge of GBP408m.
Own credit r eserve
The own credit reserve reflects the cumulative own credit gains
and losses on financial liabilities at fair value. Amounts in the
own credit reserve are not recycled to profit or loss in future
periods.
As at 30 June 2020, there was a credit balance of GBP123m
(December 2019: GBP373m debit) in the own credit reserve. The
movement of GBP496m principally reflects a GBP845m gain from the
widening of Barclays funding spreads. This is partially offset by
other activity of GBP209m and a tax charge of GBP144m .
Other reserves
As at 30 June 2020, there was a debit balance of GBP24m
(December 2019: GBP24m debit) in other reserves relating to
redeemed ordinary and preference shares issued by Barclays Bank
Group.
13. Contingent liabilities and commitments
As at As at
30.06.20 31.12.19
Contingent liabilities GBPm GBPm
Guarantees and letters of credit pledged as collateral
security 15,825 17,006
Performance guarantees, acceptances and endorsements 6,589 6,771
Total 22,414 23,777
Commitments
Documentary credits and other short-term trade related
transactions 1,162 1,291
Standby facilities, credit lines and other commitments 264,376 268,736
Total 265,538 270,027
In addition to the above, Note 14, Legal, competition and
regulatory matters details out further contingent liabilities where
it is not practicable to disclose an estimate of the potential
financial effect on Barclays Bank Group.
14. Legal, competition and regulatory matters
Barclays Bank Group face legal, competition and regulatory
challenges, many of which are beyond our control. The extent of the
impact of these matters cannot always be predicted but may
materially impact our operations, financial results, condition and
prospects. Matters arising from a set of similar circumstances can
give rise to either a contingent liability or a provision, or both,
depending on the relevant facts and circumstances.
The recognition of provisions in relation to such matters
involves critical accounting estimates and judgments in accordance
with the relevant accounting policies as described in Note 8,
Provisions. We have not disclosed an estimate of the potential
financial impact or effect on the Barclays Bank Group of contingent
liabilities where it is not currently practicable to do so. Various
matters detailed in this note seek damages of an unspecified
amount. While certain matters specify the damages claimed, such
claimed amounts do not necessarily reflect the Barclays Bank
Group's potential financial exposure in respect of those
matters.
Investigations into c ertain advisory services a greements and
other matters and civil action
FCA proceedings
In 2008, Barclays Bank PLC and Qatar Holdings LLC entered into
two advisory service agreements (the Agreements). The Financial
Conduct Authority (FCA) conducted an investigation into whether the
Agreements may have related to Barclays PLC's capital raisings in
June and November 2008 (the Capital Raisings) and therefore should
have been disclosed in the announcements or public documents
relating to the Capital Raisings. In 2013, the FCA issued warning
notices (the Notices) finding that Barclays PLC and Barclays Bank
PLC acted recklessly and in breach of certain disclosure-related
listing rules, and that Barclays PLC was also in breach of Listing
Principle 3. The financial penalty provided in the Notices is
GBP50m. Barclays PLC and Barclays Bank PLC continue to contest the
findings. Following the conclusion of the Serious Fraud Office
(SFO) proceedings against certain former Barclays executives
resulting in their acquittals, the FCA proceedings, which were
stayed, have resumed. All charges brought by the SFO against
Barclays PLC and Barclays Bank PLC in relation to the Agreements
were dismissed in 2018.
Civil action
PCP Capital Partners LLP and PCP International Finance Limited
(PCP) are seeking damages of approximately GBP1.6bn from Barclays
Bank PLC for fraudulent misrepresentation and deceit, arising from
alleged statements made by Barclays Bank PLC to PCP in relation to
the terms on which securities were to be issued to potential
investors, allegedly including PCP, in the November 2008 capital
raising. Barclays Bank PLC is defending the claim and trial
commenced in June 2020.
Investigations into LIBOR and other b enchmarks and related
civil actions
Regulators and law enforcement agencies, including certain
competition authorities, from a number of governments have
conducted investigations relating to Barclays Bank PLC's
involvement in allegedly manipulating certain financial benchmarks,
such as LIBOR. The SFO has closed its investigation with no action
to be taken against the Barclays Group. Various individuals and
corporates in a range of jurisdictions have threatened or brought
civil actions against the Barclays Group and other banks in
relation to the alleged manipulation of LIBOR and/or other
benchmarks. Certain actions remain pending.
USD LIBOR civil actions
The majority of the USD LIBOR cases, which have been filed in
various US jurisdictions, have been consolidated for pre-trial
purposes in the US District Court in the Southern District of New
York (SDNY). The complaints are substantially similar and allege,
among other things, that Barclays PLC, Barclays Bank PLC, Barclays
Capital Inc. (BCI) and other financial institutions individually
and collectively violated provisions of the US Sherman Antitrust
Act (Antitrust Act), the US Commodity Exchange Act (CEA), the US
Racketeer Influenced and Corrupt Organizations Act (RICO), the
Securities Exchange Act of 1934 and various state laws by
manipulating USD LIBOR rates.
Putative class actions and individual actions seek unspecified
damages with the exception of three lawsuits, in which the
plaintiffs are seeking a combined total of approximately $900m in
actual damages and additional punitive damages against all
defendants, including Barclays Bank PLC. Some of the lawsuits also
seek trebling of damages under the Antitrust Act and RICO. Barclays
has previously settled certain claims. Two of the class action
settlements where Barclays has paid $20m and $7.1m, respectively,
remain subject to final court approval
and/or the right of class members to opt out of the settlement to file their own claims.
Sterling LIBOR civil actions
In 2016, two putative class actions filed in the SDNY against
Barclays Bank PLC, BCI and other Sterling LIBOR panel banks
alleging, among other things, that the defendants manipulated the
Sterling LIBOR rate in violation of the Antitrust Act, CEA and
RICO, were consolidated. The defendants' motion to dismiss the
claims was granted in December 2018. The plaintiffs have appealed
the dismissal.
Japanese Yen LIBOR civil actions
In 2012, a putative class action was filed in the SDNY against
Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a
lead plaintiff involved in exchange-traded derivatives and members
of the Japanese Bankers Association's Euroyen Tokyo Interbank
Offered Rate (Euroyen TIBOR) panel. The complaint alleges, among
other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates
and breaches of the CEA and the Antitrust Act. In 2014, the court
dismissed the plaintiff's antitrust claims in full, but the
plaintiff's CEA claims remain pending.
In 2015, a second putative class action, making similar
allegations to the above class action, was filed in the SDNY
against Barclays PLC, Barclays Bank PLC and BCI. In 2017, this
action was dismissed in full and the plaintiffs appealed the
dismissal. The appellate court reversed the dismissal and the
matter has been remanded to the lower court.
SIBOR/SOR civil action
In 2016, a putative class action was filed in the SDNY against
Barclays PLC, Barclays Bank PLC, BCI and other defendants, alleging
manipulation of the Singapore Interbank Offered Rate (SIBOR) and
Singapore Swap Offer Rate (SOR). In October 2018, the court
dismissed all claims against Barclays PLC, Barclays Bank PLC and
BCI. The plaintiffs have appealed the dismissal.
ICE LIBOR civil actions
In 2019, several putative class actions have been filed in the
SDNY against Barclays PLC, Barclays Bank PLC, BCI, other financial
institution defendants and Intercontinental Exchange Inc. and
certain of its affiliates (ICE), asserting antitrust claims that
defendants manipulated USD LIBOR through defendants' submissions to
ICE. These actions have been consolidated. The defendants' motion
to dismiss was granted in March 2020. The plaintiffs have appealed
the dismissal.
Non-US benchmarks civil actions
Legal proceedings (which include the claims referred to below in
'Local authority civil actions concerning LIBOR') have been brought
or threatened against Barclays Bank PLC (and, in certain cases,
Barclays Bank UK PLC) in the UK in connection with alleged
manipulation of LIBOR, EURIBOR and other benchmarks. Proceedings
have also been brought in a number of other jurisdictions in Europe
and Israel. Additional proceedings in other jurisdictions may be
brought in the future.
F oreign E xchange i nvestigations and related civil actions
In 2015, the Barclays Group reached settlements totalling
approximately $2.38bn with various US federal and state authorities
and the FCA in relation to investigations into certain sales and
trading practices in the Foreign Exchange market. Under the related
plea agreement with the US Department of Justice (DoJ), which
received final court approval in January 2017, the Barclays Group
agreed to a term of probation of three years, which expired in
January 2020. The Barclays Group also continues to provide relevant
information to certain authorities.
The European Commission is one of a number of authorities still
conducting an investigation into certain trading practices in
Foreign Exchange markets. The European Commission announced two
settlements in May 2019 and the Barclays Group paid penalties
totalling approximately EUR210m. In June 2019, the Swiss
Competition Commission announced two settlements and the Barclays
Group paid penalties totalling approximately CHF 27m. The financial
impact of the ongoing matters is not expected to be material to the
Barclays Bank Group's operating results, cash flows or financial
position.
A number of individuals and corporates in a range of
jurisdictions have also threatened or brought civil actions against
the Barclays Group and other banks in relation to alleged
manipulation of Foreign Exchange markets, and may do so in the
future. Certain actions remain pending.
FX opt out civil action
In 2018, Barclays Bank PLC and BCI settled a consolidated action
filed in the SDNY, alleging manipulation of Foreign Exchange
markets (Consolidated FX Action), for a total amount of $384m. Also
in 2018, a group of plaintiffs who opted out of the Consolidated FX
Action filed a complaint in the SDNY against Barclays PLC, Barclays
Bank PLC, BCI and other defendants. Some of the plaintiff's claims
were dismissed in May 2020.
Retail basis civil action
In 2015, a putative class action was filed against several
international banks, including Barclays PLC and BCI, on behalf of a
proposed class of individuals who exchanged currencies on a retail
basis at bank branches (Retail Basis Claims). The SDNY has ruled
that the Retail Basis Claims are not covered by the settlement
agreement in the Consolidated FX Action. The Court subsequently
dismissed all Retail Basis Claims against the Barclays Group and
all other defendants. The plaintiffs have filed an amended
complaint.
State law FX civil action
In 2017, the SDNY dismissed consolidated putative class actions
brought under federal and various state laws on behalf of proposed
classes of (i) stockholders of Exchange Traded Funds and others who
purportedly were indirect investors in FX instruments, and (ii)
investors who traded FX instruments through FX dealers or brokers
not alleged to have manipulated Foreign Exchange Rates. Barclays
Bank PLC and BCI have settled the claim, which is subject to court
approval.
Non-US FX civil actions
In addition to the actions described above, legal proceedings
have been brought or are threatened against Barclays PLC, Barclays
Bank PLC, BCI and Barclays Execution Services Limited (BX) in
connection with alleged manipulation of Foreign Exchange in the UK,
a number of other jurisdictions in Europe, Israel and Australia and
additional proceedings may be brought in the future.
Metals investigations and related civil actions
Barclays Bank PLC previously provided information to the DoJ,
the US Commodity Futures Trading Commission and other authorities
in connection with investigations into metals and metals-based
financial instruments.
A number of US civil complaints, each on behalf of a proposed
class of plaintiffs, have been consolidated and transferred to the
SDNY. The complaints allege that Barclays Bank PLC and other
members of The London Gold Market Fixing Ltd. manipulated the
prices of gold and gold derivative contracts in violation of US
antitrust and other federal laws. This consolidated putative class
action remains pending. A separate US civil complaint by a proposed
class of plaintiffs against a number of banks, including Barclays
Bank PLC, BCI and BX, alleging manipulation of the price of silver
in violation of the CEA, the Antitrust Act and state antitrust and
consumer protection laws, has been dismissed as against the
Barclays entities. The plaintiffs have the option to seek the
court's permission to appeal.
Civil actions have also been filed in Canadian courts against
Barclays PLC, Barclays Bank PLC, Barclays Capital Canada Inc. and
BCI on behalf of proposed classes of plaintiffs alleging
manipulation of gold and silver prices.
US residential mortgage related civil actions
There are various pending civil actions relating to US
Residential Mortgage-Backed Securities (RMBS), including four
actions arising from unresolved repurchase requests submitted by
Trustees for certain RMBS, alleging breaches of various loan-level
representations and warranties (R&Ws) made by Barclays Bank PLC
and/or a subsidiary acquired in 2007 (the Acquired Subsidiary). The
unresolved repurchase requests received as at 31 December 2019 had
an original unpaid principal balance of approximately $2.1bn. The
Trustees have also alleged that the relevant R&Ws may have been
breached with respect to a greater (but unspecified) amount of
loans than previously stated in the unresolved repurchase
requests.
These repurchase actions are ongoing. In one repurchase action,
the New York Court of Appeals held that claims related to certain
R&Ws are time-barred. Barclays Bank PLC has reached a
settlement to resolve two of the repurchase actions, which is
subject to final court approval. The financial impact of the
settlement is not expected to be material to the Barclays Bank
Group's operating results, cash flows or financial position. The
remaining two repurchase actions are pending.
Government and agency securities civil actions and related
matters
Certain governmental authorities are conducting investigations
into activities relating to the trading of certain government and
agency securities in various markets. The Barclays Group provided
information in cooperation with such investigations. Civil actions
have also been filed on the basis of similar allegations, as
described below.
Treasury auction securities civil actions
Consolidated putative class action complaints filed in US
federal court against Barclays Bank PLC, BCI and other financial
institutions under the Antitrust Act and state common law allege
that the defendants (i) conspired to manipulate the US Treasury
securities market and/or (ii) conspired to prevent the creation of
certain platforms by boycotting or threatening to boycott such
trading platforms. The defendants have filed a motion to
dismiss.
In addition, certain plaintiffs have filed a related, direct
action against BCI and certain other financial institutions,
alleging that defendants conspired to fix and manipulate the US
Treasury securities market in violation of the Antitrust Act, the
CEA and state common law.
Supranational, Sovereign and Agency bonds civil actions
Civil antitrust actions have been filed in the SDNY and Federal
Court of Canada in Toronto against Barclays Bank PLC, BCI, BX,
Barclays Capital Securities Limited and, with respect to the civil
action filed in Canada only, Barclays Capital Canada, Inc. and
other financial institutions alleging that the defendants conspired
to fix prices and restrain competition in the market for US
dollar-denominated Supranational, Sovereign and Agency bonds.
In one of the actions filed in the SDNY, the court granted the
defendants' motion to dismiss the plaintiffs' complaint, which the
plaintiffs have appealed. The plaintiffs have voluntarily dismissed
the other SDNY action.
Variable Rate Demand Obligations civil actions
Civil actions have been filed against Barclays Bank PLC and BCI
and other financial institutions alleging the defendants conspired
or colluded to artificially inflate interest rates set for Variable
Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with
interest rates that reset on a periodic basis, most commonly
weekly. Two actions in state court have been filed by private
plaintiffs on behalf of the states of Illinois and California. Two
putative class action complaints, which have been consolidated,
have been filed in the SDNY.
Government bond civil actions
In a putative class action filed in the SDNY in 2019, plaintiffs
alleged that BCI and certain other bond dealers conspired to fix
the prices of US government sponsored entity bonds in violation of
US antitrust law. BCI agreed to a settlement of $87m, which
received final court approval in June 2020. Separately, various
entities in Louisiana, including the Louisiana Attorney General and
the City of Baton Rouge, have filed complaints against Barclays
Bank PLC and other financial institutions making similar
allegations as the class action plaintiffs .
In 2018, a separate putative class action against various
financial institutions including Barclays PLC, Barclays Bank PLC,
BCI, Barclays Bank Mexico, S.A., and certain other subsidiaries of
the Barclays Bank Group was consolidated in the SDNY. The
plaintiffs asserted antitrust and state law claims arising out of
an alleged conspiracy to fix the prices of Mexican Government
bonds. Barclays PLC has settled the claim for $5.7m, which is
subject to court approval.
BDC Finance L.L.C.
In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the NY
Supreme Court, demanding damages of $298m, alleging that Barclays
Bank PLC had breached a contract in connection with a portfolio of
total return swaps governed by an ISDA Master Agreement
(collectively, the Agreement). Following a trial on certain
liability issues, the court ruled in December 2018 that Barclays
Bank PLC was not a defaulting party, which was affirmed on appeal.
Barclays Bank PLC's counterclaim against BDC remains pending.
In 2011, BDC's investment advisor, BDCM Fund Adviser, L.L.C. and
its parent company, Black Diamond Capital Holdings, L.L.C. also
sued Barclays Bank PLC and BCI in Connecticut State Court for
unspecified damages allegedly resulting from Barclays Bank PLC's
conduct relating to the Agreement, asserting claims for violation
of the Connecticut Unfair Trade Practices Act and tortious
interference with business and prospective business relations. This
case is currently stayed.
Civil a ctions in r espect of the US Anti-Terrorism Act
There are a number of civil actions, on behalf of more than
4,000 plaintiffs, filed in US federal courts in the US District
Court in the Eastern District of New York (EDNY) and SDNY against
Barclays Bank PLC and a number of other banks. The complaints
generally allege that Barclays Bank PLC and those banks engaged in
a conspiracy to facilitate US dollar-denominated transactions for
the Government of Iran and various Iranian banks, which in turn
funded acts of terrorism that injured or killed plaintiffs or
plaintiffs' family members. The plaintiffs seek to recover damages
for pain, suffering and mental anguish under the provisions of the
US Anti-Terrorism Act, which allow for the trebling of any proven
damages.
The court granted the defendants' motion to dismiss three
actions in the EDNY. Plaintiffs have appealed in one action. The
court also granted the defendants' motion to dismiss another action
in the SDNY. The remaining actions are stayed pending decisions in
these cases.
Interest rate swap and credit default swap US civil actions
Barclays PLC, Barclays Bank PLC and BCI, together with other
financial institutions that act as market makers for interest rate
swaps (IRS) are named as defendants in several antitrust class
actions which were consolidated in the SDNY in 2016. The complaints
allege the defendants conspired to prevent the development of
exchanges for IRS and demand unspecified money damages.
In 2018, trueEX LLC filed an antitrust class action in the SDNY
against a number of financial institutions including Barclays PLC,
Barclays Bank PLC and BCI based on similar allegations with respect
to trueEX LLC's development of an IRS platform. In 2017, Tera Group
Inc. filed a separate civil antitrust action in the SDNY claiming
that certain conduct alleged in the IRS cases also caused the
plaintiff to suffer harm with respect to the Credit Default Swaps
market. In November 2018 and July 2019, respectively, the court
dismissed certain claims in both cases for unjust enrichment and
tortious interference but denied motions to dismiss the federal and
state antitrust claims, which remain pending.
Odd-lot corporate bonds antitrust class action
In 2020, BCI, together with other financial institutions, were
named as defendants in a putative class action. The complaint
alleges a conspiracy to boycott developing electronic trading
platforms for odd-lots and price fixing. Plaintiffs demand
unspecified money damages.
Investigation into collections and recoveries relating to
unsecured lending
Since February 2018, the FCA has been investigating whether the
Barclays Group implemented effective systems and controls with
respect to collections and recoveries and whether it paid due
consideration to the interests of customers in default and arrears.
The FCA investigation is at an advanced stage.
HM Revenue & Customs (HMRC) assessments concerning UK Value
Added Tax
In 2018, HMRC issued notices that have the effect of removing
certain overseas subsidiaries that have operations in the UK from
Barclays' UK VAT group, in which group supplies between members are
generally free from VAT. The notices have retrospective effect and
correspond to assessments of GBP181m (inclusive of interest), of
which Barclays would expect to attribute an amount of approximately
GBP128m to Barclays Bank UK PLC and GBP53m to Barclays Bank PLC.
HMRC's decision has been appealed to the First Tier Tribunal (Tax
Chamber).
Local authority civil actions concerning LIBOR
Following settlement by Barclays Bank PLC of various
governmental investigations concerning certain benchmark interest
rate submissions referred to above in 'Investigations into LIBOR
and other benchmarks and related civil actions', in the UK, certain
local authorities have brought claims against Barclays Bank PLC
(and, in certain cases, Barclays Bank UK PLC) asserting that they
entered into loans in reliance on misrepresentations made by
Barclays Bank PLC in respect of its conduct in relation to LIBOR.
Barclays has applied to strike out the claims.
General
The Barclays Bank Group is engaged in various other legal,
competition and regulatory matters in the UK, the US and a number
of other overseas jurisdictions. It is subject to legal proceedings
brought by and against the Barclays Bank Group which arise in the
ordinary course of business from time to time, including (but not
limited to) disputes in relation to contracts, securities, debt
collection, consumer credit, fraud, trusts, client assets,
competition, data management and protection, money laundering,
financial crime, employment, environmental and other statutory and
common law issues.
The Barclays Bank Group is also subject to enquiries and
examinations, requests for information, audits, investigations and
legal and other proceedings by regulators, governmental and other
public bodies in connection with (but not limited to) consumer
protection measures, compliance with legislation and regulation,
wholesale trading activity and other areas of banking and business
activities in which the Barclays Bank Group is or has been engaged.
The Barclays Bank Group is cooperating with the relevant
authorities and keeping all relevant agencies briefed as
appropriate in relation to these matters and others described in
this note on an ongoing basis.
At the present time, Barclays Bank PLC does not expect the
ultimate resolution of any of these other matters to have a
material adverse effect on its financial position. However, in
light of the uncertainties involved in such matters and the matters
specifically described in this note, there can be no assurance that
the outcome of a particular matter or matters (including formerly
active matters or those matters arising after the date of this
note) will not be material to Barclays Bank PLC's results,
operations or cash flow for a particular period, depending on,
among other things, the amount of the loss resulting from the
matter(s) and the amount of profit otherwise reported for the
reporting period.
15. Related party transactions
Related party transactions in the half year ended 30 June 2020
were similar in nature to those disclosed in the Barclays Bank PLC
Annual Report 2019.
Amounts included in the Barclays Bank Group's financial
statements with other Barclays Group companies are as follows:
Half year ended Half year ended
30.06.20 30.06.19
Fellow Fellow
Parent subsidiaries Parent subsidiaries
GBPm GBPm GBPm GBPm
Total income (346) 31 (275) 32
Operating expenses (34) (1,443) (46) (1,546)
As at 30.06.20 As at 31.12.19
Fellow Fellow
Parent subsidiaries Parent subsidiaries
GBPm GBPm GBPm GBPm
Total assets 5,793 1,952 2,097 2,165
Total liabilities 27,262 2,531 24,876 1,600
Except for the above, no related party transactions that have
taken place in the half year ended 30 June 2020 have materially
affected the financial position or performance of the Barclays Bank
Group during this period.
16. Barclays Bank PLC parent condensed balance sheet
As at As at
30.06.20 31.12.19
Assets GBPm GBPm
Cash and balances at central banks 128,461 112,287
Cash collateral and settlement balances 115,391 75,822
Loans and advances at amortised cost 186,606 161,663
Reverse repurchase agreements and other similar secured
lending 22,926 4,939
Trading portfolio assets 73,646 79,079
Financial assets at fair value through the income statement 187,575 162,500
Derivative financial instruments 304,807 229,338
Financial assets at fair value through other comprehensive
income 53,475 43,760
Investment in associates and joint ventures 16 119
Investment in subsidiaries 16,653 16,105
Goodwill and intangible assets 114 115
Property, plant and equipment 419 426
Current tax assets 1,045 946
Deferred tax assets 1,203 1,115
Retirement benefit Assets 2,797 2,062
Other assets 1,234 845
Total assets 1,096,368 891,121
Liabilities
Deposits at amortised cost 268,286 240,631
Cash collateral and settlement balances 94,744 59,448
Repurchase agreements and other similar secured borrowing 9,778 9,185
Debt securities in issue 34,926 19,883
Subordinated liabilities 36,937 33,205
Trading portfolio liabilities 53,953 45,130
Financial liabilities designated at fair value 234,510 207,765
Derivative financial instruments 306,288 225,607
Current tax liabilities 287 221
Deferred tax liabilities 1,083 80
Retirement benefit liabilities 105 104
Other liabilities 3,297 2,807
Provisions 885 630
Total liabilities 1,045,079 844,696
Equity
Called up share capital and share premium 2,348 2,348
Other equity instruments 11,089 11,089
Other reserves 2,763 678
Retained earnings 35,089 32,310
Total equity 51,289 46,425
Total liabilities and equity 1,096,368 891,121
In H120, Barclays Bank PLC sold its investments in Barclaycard
International Payments Limited, Entercard Group AB, Carnegie
Holdings Limited and Barclays Mercantile Business Finance Limited
to Barclays Principal Investments Limited, a fellow group company,
at their fair values of GBP102m, GBP292m, GBP188m and GBP154m
respectively.
Barclays Bank PLC recorded profit on disposal of GBP56m,
GBP192m, GBP133m and GBP23m in respect of these transactions. The
Barclays Bank Group recorded profit on disposal of GBP45m, GBP13m,
GBP57m and GBP11m.
Barclays Bank PLC considers the carrying value of its investment
in subsidiaries to be fully recoverable.
Other Information
Results timetable (1) Date
2020 Annual Report 11 February 2021
% Change(3)
Exchange rates (2) 30.06.20 31.12.19 30.06.19 31.12.19 30.06.19
Period end - USD/GBP 1.24 1.33 1.27 (7%) (2%)
6 month average - USD/GBP 1.26 1.26 1.29 - (2%)
3 month average - USD/GBP 1.24 1.29 1.29 (4%) (4%)
Period end - EUR/GBP 1.10 1.18 1.12 (7%) (2%)
6 month average - EUR/GBP 1.14 1.14 1.15 - (1%)
3 month average - EUR/GBP 1.13 1.16 1.14 (3%) (1%)
For further information please contact
Investor relations Media relations
Chris Manners +44 (0) 20 7773 2136 Thomas Hoskin +44 (0) 20 7116
4755
More information on Barclays Bank PLC 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: 1026167.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SEAFAAESSEIW
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