TIDMBARC
RNS Number : 1404X
Barclays PLC
30 April 2021
Barclays PLC
Q1 2021 Results Announcement
31 March 2021
Performance Highlights
Barclays continues to benefit from its diversified business
model, whilst supporting the economy through the COVID-19
pandemic
Barclays delivered a record quarterly Group profit before tax in
Q121 of GBP2.4bn(1) (Q120: GBP0.9bn), attributable profit of
GBP1.7bn (Q120: GBP0.6bn), a return on tangible equity (RoTE) of
14.7% (Q120: 5.1%) and earnings per share (EPS) of 9.9p (Q120:
3.5p)
Income Group income of GBP5.9bn down 6% versus prior year
Diversified income streams with strong CIB income
partially offsetting challenges in Barclays
UK and CC&P
-- Barclays International income of GBP4.4bn, down 5% versus
prior year
- Corporate and Investment Bank (CIB) income of
GBP3.6bn, down 1% with Equities and Banking
up 65% and 35% respectively, whilst FICC was down
35% versus a very strong Q120 comparative
- Consumer, Cards and Payments (CC&P) income of
GBP0.8bn, down 22% due to lower cards balances
and reduced payments activity
-- Barclays UK income of GBP1.6bn, down 8% versus prior year
reflecting deposit margin compression
from lower interest rates and lower interest earning
lending (IEL) balances, partially offset
by strong mortgages performance with record quarterly
organic net asset growth of GBP3.6bn
to GBP151.9bn
--- ----------------------------------------------------------
Credit impairment charges Group credit impairment charges decreased significantly to
GBP0.1bn (Q120: GBP2.1bn)
Reduced impairment as underlying asset quality
metrics remained benign
-- The low credit impairment charge was driven by reduced
unsecured lending balances, no material
single name wholesale loan charges and limited portfolio
deterioration
-- Total balance sheet impairment allowance of GBP8.8bn
(FY20: GBP9.4bn), resulting in broadly
stable coverage ratios for unsecured consumer lending and
wholesale portfolios of 12.2% (FY20:
12.3%) and 1.4% (FY20: 1.5%) respectively
--- ----------------------------------------------------------
Costs Group total operating expenses of GBP3.6bn up 10% versus prior
year
Cost: income ratio of 61%
-- Total operating expenses include higher variable
compensation accruals reflective of improved
returns and continued investment in businesses, partially
offset by foreign exchange movements
and efficiency savings, resulting in a cost: income ratio
of 61% (Q120: 52%). COVID-19 related
expenses continued in Q121
--- ----------------------------------------------------------
Capital / capital distributions Common equity tier 1 (CET1) ratio of 14.6% down 50bps versus
FY20
Strong capital position and completed share buyback
-- The decrease reflects profit before tax more than offset
by reversal of certain regulatory
forbearance measures applied through 2020, the impact of
the share buyback announced with
FY20 results, a dividend accrual, and an increase in Risk
Weighted Assets (RWAs), principally
in the CIB
-- In April, completed GBP0.7bn share buyback announced with
FY20 results
--- ----------------------------------------------------------
1 Since Q308 which included material adjusting items.
Group outlook and targets
Returns
-- Barclays expects to deliver meaningful year-on-year
RoTE improvement in 2021
Income
-- Headwinds to income in Barclays UK are expected to
persist in 2021, driven by the subdued
demand for unsecured lending and the low interest rate
environment, partially offset by the
recent steepening of the yield curve
-- Within Barclays International, the CIB franchise
remains well positioned for the future; CC&P
income outlook remains uncertain, despite early signs
of an anticipated spending recovery
in the US and UK, with US cards balances expected to
start to recover later in the year
Impairment
-- Barclays expects that the full year 2021 impairment
charge will be materially below that of
2020 reflecting delinquency experience and an improved
economic outlook during the latter
part of Q121. If these conditions persist, Barclays
would expect to reduce the impairment
provision level
Costs
-- Barclays expects full year 2021 costs to be above
2020, reflecting investment in the Group's
franchises for future returns including higher
variable compensation and further structural
cost actions, with a real estate review expected to be
concluded in the coming months. COVID-19
related expenses are also expected to remain in 2021
Capital
-- Barclays remains in a strong capital position,
Outlook although certain headwinds are likely in 2021,
Remains uncertain and subject to change depending on including the expected reversal of software
the evolution and persistence of the amortisation benefit applied in 2020 and scheduled
COVID-19 pandemic pension deficit reduction contributions
--- -------------------------------------------------------
Barclays continues to target the following over the medium
term:
-- Returns: RoTE of greater than 10% over time
-- Cost efficiency: Cost: income ratio below 60% over
time
Targets -- Capital adequacy: CET1 ratio in the range of 13-14%
--- -------------------------------------------------------
Barclays Group results
for the three months ended 31.03.21 31.03.20
GBPm GBPm % Change
=============================================================== ============== ============== ==============
Net interest income 1,851 2,331 (21)
Net fee, commission and other income 4,049 3,952 2
=============================================================== ============== ============== ==============
Total income 5,900 6,283 (6)
Credit impairment charges (55) (2,115) 97
=============================================================== ============== ============== ==============
Net operating income 5,845 4,168 40
Operating expenses (3,545) (3,253) (9)
Litigation and conduct (33) (10)
=============================================================== ============== ============== ==============
Total operating expenses (3,578) (3,263) (10)
Other net income 132 8
=============================================================== ============== ============== ==============
Profit before tax 2,399 913
Tax charge (496) (71)
=============================================================== ============== ============== ==============
Profit after tax 1,903 842
Non-controlling interests (4) (16) 75
Other equity instrument holders (195) (221) 12
=============================================================== ============== ============== ==============
Attributable profit 1,704 605
Performance measures
=============================================================== ============== ============== ==============
Return on average tangible shareholders' equity 14.7% 5.1%
Average tangible shareholders' equity (GBPbn) 46.5 47.0
Cost: income ratio 61% 52%
Loan loss rate (bps) 6 223
Basic earnings per share 9.9p 3.5p
As at 31.03.21 As at 31.12.20 As at 31.03.20
Balance sheet and capital management(1) GBPbn GBPbn GBPbn
=============================================================== ============== ============== ==============
Loans and advances at amortised cost 345.8 342.6 374.1
Loans and advances at amortised cost impairment coverage ratio 2.2% 2.4% 2.1%
Deposits at amortised cost 498.8 481.0 470.7
Tangible net asset value per share 267p 269p 284p
Common equity tier 1 ratio 14.6% 15.1% 13.1%
Common equity tier 1 capital 45.9 46.3 42.5
Risk weighted assets 313.4 306.2 325.6
Average UK leverage ratio 4.9% 5.0% 4.5%
UK leverage ratio 5.0% 5.3% 4.5%
Funding and liquidity
=============================================================== ============== ============== ==============
Group liquidity pool (GBPbn) 290 266 237
Liquidity coverage ratio 161% 162% 155%
Loan: deposit ratio 69% 71% 79%
1 Refer to pages 21 to 26 for further information on how capital,
RWAs and leverage are calculated.
Group Chief Executive Officer's Review
"Since the early days of the pandemic last year, our diversified
business has demonstrated the resilience critical to ensuring
Barclays' financial integrity. It gives us the capacity to step up
for our customers, clients, colleagues and communities when they
need our support the most, and deliver for our shareholders by
staying profitable in every quarter.
Our diversification continued to drive a strong performance,
delivering a Group RoTE of 14.7% in the first quarter of 2021.
Group profit before tax increased to GBP2.4bn, contributing towards
EPS of 9.9 pence.
As was the case throughout 2020, within Barclays International,
performance in the CIB was strong this quarter, achieving a RoTE of
17.9% on income of GBP3.6bn, just 1% down from our Q1 income
performance last year, which was a very strong comparative.
It also partially offset challenges in our consumer businesses
that have been impacted by lower spend and activity levels as a
result of the pandemic. Barclays UK generated income of GBP1.6bn in
the quarter with lower impairment charges resulting in a RoTE of
12.0%. Strong demand in mortgages and record completions drove
organic net asset growth of GBP3.6bn which was our best ever single
quarter. Our CC&P business generated an income of GBP805m and
delivered a RoTE of 16.5%.
As we enter the next phase of this pandemic, we remain resolute
in our commitment to support the economic recovery. From our spend
data, which captures UK economic activity across our cards and
acquiring businesses, we are already seeing encouraging early signs
of recovery in some sectors, including those hit hardest by the
crisis.
While momentum in the consumer businesses, particularly card
balances, will take time to build, Barclays secured significant new
growth opportunities in Q1.
We negotiated a new, long-term agreement to issue Gap's
co-branded and private label credit card programme in the US from
May 2022.
Following the launch of our point-of-sale finance partnership
with Amazon in Germany last year, we have agreed to extend our
Amazon partnership to the UK, a significant expansion of our
franchise in Europe's two largest consumer markets. Alongside
existing partnerships including with Apple in the UK, it
demonstrates the strength and potential of our consumer
platform.
More broadly across payments, we expect to realise around
GBP900m of income growth opportunity over the coming three
years.
While evidence of recovery is encouraging, we have continued to
take a cautious view of the impact of the pandemic on the business.
We remain disciplined on costs, with a cost to income ratio of 61%
this quarter. Our capital position remains well above target with a
CET1 ratio of 14.6% and we completed our GBP700m buyback this
month. We will give further guidance on distributions when
appropriate.
With a strong balance sheet and diversified business, Barclays
remains well-positioned to support the economy and deliver for our
shareholders."
James E Staley, Group Chief Executive Officer
Group Finance Director's Review
Q121 performance continued to be impacted by the COVID-19
pandemic. For comparability purposes below, Q120 income in the
consumer businesses was largely unaffected by the onset of the
pandemic, while our Markets business in the CIB benefitted from
increased client activity and volatility towards the end of Q120,
resulting in a very strong comparative. Impairment charges were
elevated in Q120, reflecting the outlook for the macroeconomic
environment at the time.
Group performance
-- RoTE was 14.7% (Q120: 5.1%) and EPS was 9.9p (Q120: 3.5p)
-- Profit before tax was GBP2,399m (Q120: GBP913m) and attributable
profit was GBP1,704m (Q120: GBP605m). The 8% depreciation of average
USD against GBP adversely impacted income and profits and positively
impacted credit impairment charges and total operating expenses
-- Pre-provision profits of GBP2,454m (Q120: GBP3,028m) was driven
by headwinds in Barclays UK and CC&P, but the Group continues to
benefit from its diversified business model, which included a strong
performance in CIB
-- Total income decreased to GBP5,900m (Q120: GBP6,283m). Barclays
UK income decreased 8%. Barclays International income decreased
5%, with CIB income down 1% and CC&P income down 22%
-- Credit impairment charges were GBP55m (Q120: GBP2,115m). The low
credit impairment charge was driven by reduced unsecured lending
balances, no material single name wholesale loan charges and limited
portfolio deterioration. The reduction in unsecured lending balances
and growth in secured balances resulted in a slight decrease in
the Group's loans and advances at amortised cost impairment coverage
ratio to 2.2% (December 2020: 2.4%) with underlying portfolio ratios
broadly stable. Management adjustments to models for impairment
have been maintained at GBP1.2bn (December 2020: GBP1.4bn), including
the economic uncertainty provisions relating to the COVID-19 pandemic
that were recognised over the course of 2020
-- Total operating expenses increased 10% to GBP3,578m, due to higher
variable compensation accruals that reflect improvement in returns
and continued investment in businesses, partially offset by efficiency
savings, resulting in a cost: income ratio of 61% (Q120: 52%).
COVID-19 related expenses continued in Q121
-- The effective tax rate was 20.7% (Q120: 7.8%). The effective tax
rate for Q121 was higher than Q120 which reflected the tax benefit
recognised for the re-measurement of UK deferred tax assets as
a result of the UK corporation tax rate being maintained at 19%
-- Total assets increased to GBP1,380bn (December 2020: GBP1,350bn)
primarily due to a GBP26bn increase in financial assets at fair
value due to an increase in secured lending, a GBP30bn increase
in cash deposits and settlement balances, partially offset by a
GBP32bn decrease in derivative assets driven by an increase in
major interest rate curves
-- Tangible net asset value (TNAV) per share decreased to 267p (December
2020: 269p) primarily reflecting negative reserve movements, partially
offset by 9.9p of EPS
Barclays UK
-- Profit before tax increased 136% to GBP460m. RoTE was 12.0% (Q120:
6.9%) reflecting materially lower credit impairment charges, partially
offset by lower income
-- Total income decreased 8% to GBP1,576m. Net interest income reduced
9% to GBP1,281m with a net interest margin (NIM) of 2.54% (Q120:
2.91%). Net fee, commission and other income increased 1% to GBP295m
- Personal Banking income decreased 5% to GBP923m, reflecting deposit
margin compression from lower interest rates and lower unsecured
lending balances, partially offset by balance growth in deposits
and mortgages
- Barclaycard Consumer UK income decreased 28% to GBP315m as reduced
borrowing and spend levels by customers resulted in a lower level
of IEL balances
- Business Banking income increased 13% to GBP338m due to lending
and deposit balance growth from continued support for small and
medium-sized enterprises (SMEs) through GBP11.8bn of government
scheme lending to date, partially offset by deposit margin compression
from lower interest rates and lower transactional fee volumes
-- Credit impairment charges decreased to GBP77m (Q120: GBP481m) from
reduced unsecured portfolio exposures in part driven by lockdown
measures. As at 31 March 2021, 30 and 90 day arrears rates in UK
cards were 1.6% (Q120: 1.8%) and 0.8% (Q120: 0.8%) respectively
-- Total operating expenses increased 1% to GBP1,039m reflecting higher
servicing and financial assistance costs, offset by efficiency
savings
-- Loans and advances to customers at amortised cost remained stable
at GBP205.7bn (December 2020: GBP205.4bn) predominantly from GBP3.6bn
of mortgage growth following continued strong demand, offset by
a GBP2.1bn decrease in the Education, Social Housing and Local
Authority (ESHLA) portfolio and GBP1.6bn lower unsecured lending
balances
-- Customer deposits at amortised cost increased 3% to GBP247.5bn
reflecting an increase of GBP6.3bn in Personal Banking, further
strengthening the liquidity position and contributing to a loan:
deposit ratio of 88% (December 2020: 89%)
-- RWAs decreased to GBP72.7bn (December 2020: GBP73.7bn) driven by
a reduction in unsecured lending and ESHLA, partially offset by
growth in mortgages
Barclays International
-- Profit before tax increased 140% to GBP1,971m with a RoTE of 17.7%
(Q120: 6.8%), reflecting a RoTE of 17.9% (Q120: 12.5%) in CIB and
16.5% (Q120: (23.5)%) in CC&P
-- The 8% depreciation of average USD against GBP adversely impacted
income and profits and positively impacted credit impairment charges
and total operating expenses
-- Total income decreased to GBP4,399m (Q120: GBP4,644m)
- CIB income decreased 1% to GBP3,594m
- Markets income decreased 12% to GBP2,136m as Equities reported
the best ever quarter on a comparable basis(1) , offset by
FICC. Equities income increased 65% to GBP932m driven by derivatives,
reflecting strong client activity, and financing through increased
client balances. Within FICC, income decreased 35% to GBP1,204m
as a strong performance in credit was more than offset by
a decline in macro due to tighter spreads and the non-recurrence
of Q120 client activity levels
- Banking had the best ever quarter on a comparable basis(1)
, with income up 35% to GBP859m driven by a strong performance
in equity capital markets reflecting an increase in the fee
pool(2)
- Within Corporate, Transaction banking income decreased 12%
to GBP393m as deposit balance growth was more than offset
by margin compression. Corporate lending income increased
by 86% to GBP206m driven by the non- recurrence of losses
on the mark-to-market of lending and related hedge positions
- CC&P income decreased 22% to GBP805m reflecting lower cards balances
and reduced payments activity
-- Credit impairment charges decreased to a GBP22m release (Q120:
GBP1,609m charge)
- CIB credit impairment charge was a GBP43m release (Q120: GBP724m
charge) due to no material single name wholesale loan charges
and lower exposures
- CC&P credit impairment charges were GBP21m (Q120: GBP885m) reflecting
lower unsecured lending balances, particularly in US cards. As
at 31 March 2021, 30 and 90 day arrears in US cards were 2.1%
(Q120: 2.7%) and 1.2% (Q120: 1.5%) respectively
-- Total operating expenses increased 11% to GBP2,459m
- CIB total operating expenses increased 12% to GBP1,887m due to
higher variable compensation accruals that reflect improvement
in returns, partly offset by cost efficiencies and discipline
in the current environment
- CC&P total operating expenses increased 8% to GBP572m driven
by the impact of higher investment spend and customer remediation
costs
-- RWAs increased to GBP230.0bn (December 2020: GBP222.3bn) primarily
due to increased client and trading activity within CIB, partially
offset by lower CC&P balances
Head Office
-- Loss before tax was GBP32m (Q120: GBP104m)
-- Total income was an expense of GBP75m (Q120: GBP65m), which primarily
reflected hedge accounting, treasury items and funding costs on
legacy capital instruments
-- Total operating expenses increased to GBP80m (Q120: GBP16m) primarily
due to the non-recurrence of a provision release in Q120, related
to the previous sale of a Non-Core portfolio
-- Other net income was GBP123m (Q120: GBP2m) driven by a fair value
gain in Barclays' associate investment holding in the Business
Growth Fund (BGF)
1 Period covering Q114 - Q121. Pre 2014 financials were not restated
following re-segmentation in Q116.
2 Data source: Dealogic for the period covering 1 January to 31 March
2021.
Group capital and leverage
-- The CET1 ratio decreased to 14.6% (December 2020: 15.1%)
- CET1 capital decreased by GBP0.4bn to GBP45.9bn as profit before
tax of GBP2.4bn was more than offset by the removal of temporary
regulatory supporting measures introduced in 2020, the GBP0.7bn
share buyback announced with FY20 results and decreases in other
qualifying reserves. The additional value adjustments (PVA) deduction
increased by GBP0.4bn reflecting the removal of increased diversification
factors and IFRS 9 transitional relief decreased by GBP0.3bn
primarily due to the relief on the pre-2020 impairment charge
reducing from 70% to 50% in 2021. The deduction for dividends
paid and foreseen increased by GBP1.0bn including the GBP0.7bn
share buyback and a GBP0.1bn accrual towards FY21 dividends
- RWAs increased by GBP7.2bn to GBP313.4bn primarily due to increased
client and trading activity within CIB, partially offset by lower
consumer lending
-- The average UK leverage ratio decreased to 4.9% (December 2020:
5.0%). The average leverage exposure increased by GBP28bn to GBP1,175bn
(December 2020: GBP1,147bn) largely driven by an increase in securities
financing transactions (SFTs)
Group funding and liquidity
-- The liquidity pool was GBP290bn (December 2020: GBP266bn) and the
liquidity coverage ratio remained significantly above the 100%
regulatory requirement at 161% (December 2020: 162%), equivalent
to a surplus of GBP107bn (December 2020: GBP99bn). The increase
in the pool is driven by continued deposit growth, Term Funding
Scheme with additional incentives for SMEs drawings and a seasonal
increase in short-term wholesale funding, which were partly offset
by a seasonal increase in business funding consumption
-- Wholesale funding outstanding, excluding repurchase agreements,
was GBP157.8.bn (December 2020: GBP145.0bn). The Group issued GBP2.7bn
equivalent of minimum requirement for own funds and eligible liabilities
(MREL) instruments from Barclays PLC (the Parent company) during
the year. The Group is well advanced in its MREL issuance plans
relative to the estimated 1 January 2022 requirement
Other matters
-- In its Budget held in March 2021, the UK Government announced that
the UK rate of corporation tax will increase from 19% to 25% from
1 April 2023 and that it will undertake a review of the additional
8% banking surcharge during 2021. The Budget Report issued on 3
March 2021 outlines that "the government will set out how it intends
to ensure that the combined rate of tax on banks' profits does
not increase substantially from its current level". The Group's
effective tax rate for FY21 may include a tax benefit for the re-measurement
of UK deferred tax assets upon substantive enactment of the increase
in the rate of UK corporation tax which is expected later in 2021.
Any subsequent reduction in the banking surcharge arising from
the Government's review may result in a tax charge upon enactment
as UK deferred tax assets are again re-measured, the timing of
which is uncertain but is expected to occur in 2022
Capital distributions
-- Barclays understands the importance of delivering attractive total
cash returns to shareholders. Barclays is therefore committed to
maintaining an appropriate balance between total cash returns to
shareholders, investment in the business and maintaining a strong
capital position. Going forward, Barclays intends to pay a progressive
ordinary dividend, taking into account these objectives and the
earnings outlook of the Group. It is also the Board's intention
to continue to supplement the ordinary dividends with additional
cash returns, including share buybacks, to shareholders as and
when appropriate
-- For regulatory capital purposes, Barclays has accrued an ordinary
dividend in Q121 of 0.75p based on a 3p dividend for the full year.
This regulatory accrual should not be used as a forecast of future
capital distributions. The Board will assess the appropriate level
and form of capital distributions as the year progresses
Tushar Morzaria, Group Finance Director
Quarterly Results Summary
Barclays Group
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================ ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 1,851 1,845 2,055 1,892 2,331 2,344 2,445 2,360
Net fee, commission and
other income 4,049 3,096 3,149 3,446 3,952 2,957 3,096 3,178
================================ ======= ======= ======= ======= ======= ======= ======= =======
Total income 5,900 4,941 5,204 5,338 6,283 5,301 5,541 5,538
Credit impairment charges (55) (492) (608) (1,623) (2,115) (523) (461) (480)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 5,845 4,449 4,596 3,715 4,168 4,778 5,080 5,058
Operating costs (3,545) (3,480) (3,391) (3,310) (3,253) (3,308) (3,293) (3,501)
UK bank levy - (299) - - - (226) - -
Litigation and conduct (33) (47) (76) (20) (10) (167) (1,568) (53)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (3,578) (3,826) (3,467) (3,330) (3,263) (3,701) (4,861) (3,554)
Other net income/(expenses) 132 23 18 (26) 8 20 27 27
================================ ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 2,399 646 1,147 359 913 1,097 246 1,531
Tax charge (496) (163) (328) (42) (71) (189) (269) (297)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) after tax 1,903 483 819 317 842 908 (23) 1,234
Non-controlling interests (4) (37) (4) (21) (16) (42) (4) (17)
Other equity instrument
holders (195) (226) (204) (206) (221) (185) (265) (183)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Attributable profit/(loss) 1,704 220 611 90 605 681 (292) 1,034
Performance measures
================================ ======= ======= ======= ======= ======= ======= ======= =======
Return on average tangible
shareholders' equity 14.7% 1.8% 5.1% 0.7% 5.1% 5.9% (2.4%) 9.0%
Average tangible shareholders'
equity (GBPbn) 46.5 47.6 48.3 50.2 47.0 46.4 48.4 46.2
Cost: income ratio 61% 77% 67% 62% 52% 70% 88% 64%
Loan loss rate (bps) 6 56 69 179 223 60 52 56
Basic earnings/(loss) per
share 9.9p 1.3p 3.5p 0.5p 3.5p 3.9p (1.7p) 6.0p
Balance sheet and capital
management(1) GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
================================ ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised
cost 345.8 342.6 344.4 354.9 374.1 339.1 345.1 339.3
Loans and advances at amortised
cost impairment coverage
ratio 2.2% 2.4% 2.5% 2.5% 2.1% 1.8% 1.9% 1.9%
Total assets 1,379.7 1,349.5 1,421.7 1,385.1 1,444.3 1,140.2 1,290.4 1,232.8
Deposits at amortised cost 498.8 481.0 494.6 466.9 470.7 415.8 420.6 413.6
Tangible net asset value
per share 267p 269p 275p 284p 284p 262p 274p 275p
Common equity tier 1 ratio 14.6% 15.1% 14.6% 14.2% 13.1% 13.8% 13.4% 13.4%
Common equity tier 1 capital 45.9 46.3 45.5 45.4 42.5 40.8 41.9 42.9
Risk weighted assets 313.4 306.2 310.7 319.0 325.6 295.1 313.3 319.1
Average UK leverage ratio 4.9% 5.0% 5.1% 4.7% 4.5% 4.5% 4.6% 4.7%
Average UK leverage exposure 1,174.9 1,146.9 1,111.1 1,148.7 1,176.2 1,142.8 1,171.2 1,134.6
UK leverage ratio 5.0% 5.3% 5.2% 5.2% 4.5% 5.1% 4.8% 5.1%
UK leverage exposure 1,145.4 1,090.9 1,095.1 1,071.1 1,178.7 1,007.7 1,099.8 1,079.4
Funding and liquidity
================================ ======= ======= ======= ======= ======= ======= ======= =======
Group liquidity pool (GBPbn) 290 266 327 298 237 211 226 238
Liquidity coverage ratio 161% 162% 181% 186% 155% 160% 151% 156%
Loan: deposit ratio 69% 71% 70% 76% 79% 82% 82% 82%
1 Refer to pages 21 to 26 for further information on how capital,
RWAs and leverage are calculated.
Quarterly Results by Business
Barclays UK
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================ ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 1,281 1,317 1,280 1,225 1,412 1,478 1,503 1,438
Net fee, commission and
other income 295 309 270 242 292 481 343 333
================================ ======= ======= ======= ======= ======= ======= ======= =======
Total income 1,576 1,626 1,550 1,467 1,704 1,959 1,846 1,771
Credit impairment charges (77) (170) (233) (583) (481) (190) (101) (230)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 1,499 1,456 1,317 884 1,223 1,769 1,745 1,541
Operating costs (1,036) (1,134) (1,095) (1,018) (1,023) (1,023) (952) (1,022)
UK bank levy - (50) - - - (41) - -
Litigation and conduct (3) 4 (25) (6) (5) (58) (1,480) (41)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (1,039) (1,180) (1,120) (1,024) (1,028) (1,122) (2,432) (1,063)
Other net income/(expenses) - 6 (1) 13 - - - (1)
================================ ======= ======= ======= ======= ======= ======= ======= =======
Profit/(loss) before tax 460 282 196 (127) 195 647 (687) 477
Attributable profit/(loss) 298 160 113 (123) 175 438 (907) 328
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
================================ ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances to customers
at amortised cost 205.7 205.4 203.9 202.0 195.7 193.7 193.2 189.1
Total assets 309.1 289.1 294.5 287.6 267.5 257.8 257.9 259.0
Customer deposits at amortised
cost 247.5 240.5 232.0 225.7 207.5 205.5 203.3 200.9
Loan: deposit ratio 88% 89% 91% 92% 96% 96% 97% 97%
Risk weighted assets 72.7 73.7 76.2 77.9 77.7 74.9 76.8 76.2
Period end allocated tangible
equity 10.0 9.7 10.0 10.3 10.3 10.3 10.4 10.3
Performance measures
================================ ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated
tangible equity 12.0% 6.5% 4.5% (4.8%) 6.9% 17.0% (34.9%) 12.7%
Average allocated tangible
equity (GBPbn) 9.9 9.8 10.1 10.3 10.1 10.3 10.4 10.3
Cost: income ratio 66% 73% 72% 70% 60% 57% 132% 60%
Loan loss rate (bps) 14 31 43 111 96 38 20 47
Net interest margin 2.54% 2.56% 2.51% 2.48% 2.91% 3.03% 3.10% 3.05%
Analysis of Barclays UK Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Analysis of total income GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 923 895 833 826 968 1,064 1,035 946
Barclaycard Consumer UK 315 354 362 367 436 533 472 497
Business Banking 338 377 355 274 300 362 339 328
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Total income 1,576 1,626 1,550 1,467 1,704 1,959 1,846 1,771
Analysis of credit impairment
charges
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking (22) (68) (48) (130) (134) (71) (36) (36)
Barclaycard Consumer UK (36) (78) (106) (396) (301) (108) (49) (175)
Business Banking (19) (24) (79) (57) (46) (11) (16) (19)
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Total credit impairment
charges (77) (170) (233) (583) (481) (190) (101) (230)
Analysis of loans and advances
to customers at amortised
cost GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 160.4 157.3 155.7 154.9 153.4 151.9 150.1 147.3
Barclaycard Consumer UK 8.7 9.9 10.7 11.5 13.6 14.7 14.9 15.1
Business Banking 36.6 38.2 37.5 35.6 28.7 27.1 28.2 26.7
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Total loans and advances
to customers at amortised
cost 205.7 205.4 203.9 202.0 195.7 193.7 193.2 189.1
Analysis of customer deposits
at amortised cost
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Personal Banking 186.0 179.7 173.2 169.6 161.4 159.2 157.9 156.3
Barclaycard Consumer UK 0.1 0.1 0.1 0.1 - - - -
Business Banking 61.4 60.7 58.7 56.0 46.1 46.3 45.4 44.6
=============================== ===== ===== ===== ===== ===== ===== ===== =====
Total customer deposits
at amortised cost 247.5 240.5 232.0 225.7 207.5 205.5 203.3 200.9
Barclays International
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net interest income 748 614 823 847 998 965 1,059 1,017
Net trading income 1,934 1,372 1,528 1,660 2,360 929 1,110 1,016
Net fee, commission and
other income 1,717 1,500 1,430 1,503 1,286 1,558 1,581 1,870
------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total income 4,399 3,486 3,781 4,010 4,644 3,452 3,750 3,903
Credit impairment releases/(charges) 22 (291) (370) (1,010) (1,609) (329) (352) (247)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 4,421 3,195 3,411 3,000 3,035 3,123 3,398 3,656
Operating costs (2,438) (2,133) (2,227) (2,186) (2,219) (2,240) (2,282) (2,435)
UK bank levy - (240) - - - (174) - -
Litigation and conduct (21) (9) (28) (11) - (86) - (11)
------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total operating expenses (2,459) (2,382) (2,255) (2,197) (2,219) (2,500) (2,282) (2,446)
Other net income 9 9 9 4 6 17 21 13
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,971 822 1,165 807 822 640 1,137 1,223
Attributable profit 1,431 441 782 468 529 397 799 832
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised
cost 123.5 122.7 128.0 138.1 167.0 132.8 138.1 134.8
Trading portfolio assets 131.1 127.7 122.3 109.5 101.6 113.3 119.4 120.0
Derivative financial instrument
assets 269.4 301.8 295.9 306.8 341.5 228.9 286.0 243.8
Financial assets at fair
value through the income
statement 197.5 170.7 178.2 154.3 188.4 128.4 158.0 154.7
Cash collateral and settlement
balances 109.7 97.5 121.8 130.8 153.2 79.4 112.5 101.3
Other assets 221.7 221.4 261.7 236.3 201.5 178.6 195.6 196.8
------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total assets 1,052.9 1,041.8 1,107.9 1,075.8 1,153.2 861.4 1,009.6 951.4
Deposits at amortised cost 251.2 240.5 262.4 241.2 263.3 210.0 217.6 212.0
Derivative financial instrument
liabilities 260.2 300.4 293.3 307.6 338.8 228.9 283.3 243.0
Loan: deposit ratio 49% 51% 49% 57% 63% 63% 63% 64%
Risk weighted assets 230.0 222.3 224.7 231.2 237.9 209.2 223.1 214.8
Period end allocated tangible
equity 32.7 30.2 30.5 31.6 33.1 29.6 31.4 30.2
Performance measures
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated
tangible equity 17.7% 5.8% 10.2% 5.6% 6.8% 5.1% 9.9% 10.7%
Average allocated tangible
equity (GBPbn) 32.3 30.5 30.6 33.5 31.2 30.9 32.2 31.1
Cost: income ratio 56% 68% 60% 55% 48% 72% 61% 63%
Loan loss rate (bps) (7) 90 112 284 377 96 99 72
Net interest margin 3.92% 3.41% 3.79% 3.43% 3.93% 4.29% 4.10% 3.91%
Analysis of Barclays International
Corporate and Investment
Bank Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ======= ======= ======= ======= ======= ======= ======= =======
FICC 1,204 812 1,000 1,468 1,858 726 816 920
Equities 932 542 691 674 564 409 494 517
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Markets 2,136 1,354 1,691 2,142 2,422 1,135 1,310 1,437
Advisory 163 232 90 84 155 202 221 221
Equity capital markets 243 104 122 185 62 56 86 104
Debt capital markets 453 418 398 463 418 322 381 373
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Banking fees 859 754 610 732 635 580 688 698
Corporate lending 206 186 232 61 111 202 195 216
Transaction banking 393 344 372 381 449 397 424 444
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Corporate 599 530 604 442 560 599 619 660
Total income(1) 3,594 2,638 2,905 3,316 3,617 2,314 2,617 2,795
Credit impairment releases/(charges) 43 (52) (187) (596) (724) (30) (31) (44)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Net operating income 3,637 2,586 2,718 2,720 2,893 2,284 2,586 2,751
Operating costs (1,886) (1,603) (1,716) (1,680) (1,690) (1,691) (1,712) (1,860)
UK bank levy - (226) - - - (156) - -
Litigation and conduct (1) 2 (3) (3) - (79) (4) (7)
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Total operating expenses (1,887) (1,827) (1,719) (1,683) (1,690) (1,926) (1,716) (1,867)
Other net income 1 2 1 3 - 1 12 3
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Profit before tax 1,751 761 1,000 1,040 1,203 359 882 887
Attributable profit 1,263 413 627 694 820 193 609 596
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Loans and advances at amortised
cost 94.3 92.4 96.8 104.9 128.2 92.0 95.8 92.1
Trading portfolio assets 130.9 127.5 122.2 109.3 101.5 113.3 119.3 119.9
Derivative financial instruments
assets 269.4 301.7 295.9 306.7 341.4 228.8 286.0 243.7
Financial assets at fair
value through the income
statement 197.3 170.4 177.9 153.7 187.8 127.7 157.3 154.1
Cash collateral and settlement
balances 108.8 96.7 121.0 129.7 152.2 78.5 111.6 100.4
Other assets 190.8 194.9 228.9 205.5 171.4 155.3 171.5 168.1
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Total assets 991.5 983.6 1,042.7 1,009.8 1,082.5 795.6 941.5 878.3
Deposits at amortised cost 185.2 175.2 195.6 173.9 198.4 146.2 152.1 145.4
Derivative financial instrument
liabilities 260.2 300.3 293.2 307.6 338.7 228.9 283.2 242.9
Risk weighted assets 201.3 192.2 193.3 198.3 201.7 171.5 184.9 175.9
Performance measures
===================================== ======= ======= ======= ======= ======= ======= ======= =======
Return on average allocated
tangible equity 17.9% 6.3% 9.5% 9.6% 12.5% 3.0% 9.1% 9.2%
Average allocated tangible
equity (GBPbn) 28.2 26.3 26.4 29.0 26.2 25.8 26.9 25.8
Cost: income ratio 53% 69% 59% 51% 47% 83% 66% 67%
1 From Q121, a change in the allocation of the net impact of treasury
operations to businesses has been made to reflect changes in the
business balance sheets.
Analysis of Barclays International
Consumer, Cards and Payments Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================================ ===== ===== ===== ======= ======= ===== ===== =====
Net interest income 478 504 518 513 663 717 720 720
Net fee, commission, trading
and other income 327 344 358 181 364 421 413 388
================================ ===== ===== ===== ======= ======= ===== ===== =====
Total income 805 848 876 694 1,027 1,138 1,133 1,108
Credit impairment charges (21) (239) (183) (414) (885) (299) (321) (203)
================================ ===== ===== ===== ======= ======= ===== ===== =====
Net operating income 784 609 693 280 142 839 812 905
Operating costs (552) (530) (511) (506) (529) (549) (570) (575)
UK bank levy - (14) - - - (18) - -
Litigation and conduct (20) (11) (25) (8) - (7) 4 (4)
================================ ===== ===== ===== ======= ======= ===== ===== =====
Total operating expenses (572) (555) (536) (514) (529) (574) (566) (579)
Other net income 8 7 8 1 6 16 9 10
================================ ===== ===== ===== ======= ======= ===== ===== =====
Profit/(loss) before tax 220 61 165 (233) (381) 281 255 336
Attributable profit/(loss) 168 28 155 (226) (291) 204 190 236
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
================================ ===== ===== ===== ======= ======= ===== ===== =====
Loans and advances at amortised
cost 29.2 30.3 31.2 33.2 38.8 40.8 42.3 42.7
Total assets 61.4 58.2 65.2 66.0 70.7 65.8 68.1 73.1
Deposits at amortised cost 66.0 65.3 66.8 67.3 64.9 63.8 65.5 66.6
Risk weighted assets 28.8 30.1 31.4 32.9 36.2 37.7 38.2 38.9
Performance measures
================================ ===== ===== ===== ======= ======= ===== ===== =====
Return on average allocated
tangible equity 16.5% 2.7% 14.7% (20.2%) (23.5%) 15.9% 14.2% 17.8%
Average allocated tangible
equity (GBPbn) 4.1 4.2 4.2 4.5 5.0 5.1 5.3 5.3
Cost: income ratio 71% 65% 61% 74% 52% 50% 50% 52%
Loan loss rate (bps) 27 286 211 455 846 273 283 180
Head Office
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Income statement information GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ===== ===== ===== ===== ===== ===== ===== =====
Net interest income (178) (86) (48) (180) (79) (99) (117) (95)
Net fee, commission and
other income 103 (85) (79) 41 14 (11) 62 (41)
============================== ===== ===== ===== ===== ===== ===== ===== =====
Total income (75) (171) (127) (139) (65) (110) (55) (136)
Credit impairment charges - (31) (5) (30) (25) (4) (8) (3)
============================== ===== ===== ===== ===== ===== ===== ===== =====
Net operating expenses (75) (202) (132) (169) (90) (114) (63) (139)
Operating costs (71) (213) (69) (106) (11) (45) (59) (44)
UK bank levy - (9) - - - (11) - -
Litigation and conduct (9) (42) (23) (3) (5) (23) (88) (1)
============================== ===== ===== ===== ===== ===== ===== ===== =====
Total operating expenses (80) (264) (92) (109) (16) (79) (147) (45)
Other net income/(expenses) 123 8 10 (43) 2 3 6 15
============================== ===== ===== ===== ===== ===== ===== ===== =====
Loss before tax (32) (458) (214) (321) (104) (190) (204) (169)
Attributable loss (25) (381) (284) (255) (99) (154) (184) (126)
Balance sheet information GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
============================== ===== ===== ===== ===== ===== ===== ===== =====
Total assets 17.7 18.6 19.3 21.7 23.6 21.0 22.9 22.4
Risk weighted assets 10.7 10.2 9.8 9.9 10.0 11.0 13.4 28.1
Period end allocated tangible
equity 3.3 6.8 7.1 7.4 6.0 5.6 5.5 7.0
Performance measures
============================== ===== ===== ===== ===== ===== ===== ===== =====
Average allocated tangible
equity (GBPbn) 4.3 7.3 7.6 6.4 5.6 5.2 5.8 4.8
Performance Management
Margins and
balances
Three months ended 31.03.21 Three months ended 31.03.20
=============================================== ================================================
Average Average
Net interest customer Net interest Net interest customer Net interest
income assets margin income assets margin
GBPm GBPm % GBPm GBPm %
=================== ============== ============== =============== =============== ============== ===============
Barclays UK 1,281 204,663 2.54 1,412 195,204 2.91
Barclays
International(1,2) 755 78,230 3.92 980 100,171 3.93
=================== ============== ============== =============== =============== ============== ===============
Total Barclays UK
and Barclays
International 2,036 282,893 2.92 2,392 295,375 3.26
Other(3) (185) (61)
=================== ============== ============== =============== =============== ============== ===============
Total Barclays
Group 1,851 2,331
1 Barclays International margins include IEL balances within the
investment banking business.
2 Barclays amended the presentation of the premium paid for purchased
financial guarantees which are embedded in notes it issues directly
to the market in Q420 from net investment income to interest expense
within net interest income. Had the equivalent Q120 interest expense
been recognised in net interest income, the Barclays International
and Total Barclays UK and Barclays International NIMs would have
been 3.84% and 3.22% respectively.
3 Other includes Head Office and non-lending related investment banking
businesses not included in Barclays International margins.
The Group's combined product and equity structural hedge
notional as at 31 March 2021 was GBP192bn, with an average duration
of 2.5 to 3 years. Group net interest income includes gross
structural hedge contributions of GBP0.3bn (Q120: GBP0.4bn) and net
structural hedge contributions of GBP0.3bn (Q120: GBP0.2bn). Gross
structural hedge contributions represent the absolute level of
interest earned from the fixed receipts on the basket of swaps in
the structural hedge, while the net structural hedge contributions
represent the net interest earned on the difference between the
structural hedge rate and prevailing floating rates .
Quarterly analysis for Barclays UK and Barclays
International Net interest income Average customer assets Net interest margin
Three months ended 31.12.20 GBPm GBPm %
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,317 204,315 2.56
Barclays International(1,2) 696 81,312 3.41
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,013 285,627 2.80
Three months ended 30.09.20
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,280 203,089 2.51
Barclays International(1,2) 838 88,032 3.79
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,118 291,121 2.89
Three months ended 30.06.20
--------------------------------------------------- ------------------- ----------------------- -------------------
Barclays UK 1,225 199,039 2.48
Barclays International(1,2) 868 101,706 3.43
--------------------------------------------------- ------------------- ----------------------- -------------------
Total Barclays UK and Barclays International 2,093 300,745 2.80
1 Barclays International margins include IEL balances within the
investment banking business.
2 The reclassification of expense of the premium paid for purchased
financial guarantees from net investment income to net interest
income was recognised in full in Q420 and resulted in a 0.48% reduction
on the Q420 Barclays International NIM and 0.14% reduction on the
Q420 Total Barclays UK and Barclays International NIM. Had the
equivalent impact been reflected in the respective quarters, the
Barclays International NIM would have been 3.33% in Q220, 3.68%
in Q320 and 3.77% in Q420. Total Barclays UK and Barclays International
NIMs would have been 2.77% in Q220, 2.86% in Q320 and 2.91% in
Q420 respectively.
Credit Risk
Loans and advances at amortised cost by stage
The table below p resents an analysis of loans and advances at
amortised cost by gross exposure, impairment allowance, impairment
charge and coverage ratio by stage allocation and business segment
as at 31 March 2021. Also included are off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio by stage allocation as at
31 March 2021.
Impairment allowance under IFRS 9 considers both the drawn and
the undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to the drawn exposure to the
extent that the allowance does not exceed the exposure, as expected
credit loss (ECL) is not reported separately. Any excess is
reported on the liability side of the balance sheet as a provision.
For wholesale portfolios, the impairment allowance on the undrawn
exposure is reported on the liability side of the balance sheet as
a provision.
Gross exposure Impairment allowance
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure
As at 31.03.21 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 155,477 24,114 2,833 182,424 308 1,422 1,089 2,819 179,605
Barclays
International 19,955 5,219 1,858 27,032 364 1,198 1,101 2,663 24,369
Head Office 4,011 565 778 5,354 4 45 358 407 4,947
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group retail 179,443 29,898 5,469 214,810 676 2,665 2,548 5,889 208,921
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Barclays UK 32,208 4,092 1,088 37,388 11 135 102 248 37,140
Barclays
International 84,199 14,855 1,779 100,833 316 508 835 1,659 99,174
Head Office 542 - 32 574 - - 31 31 543
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total Barclays
Group
wholesale(1) 116,949 18,947 2,899 138,795 327 643 968 1,938 136,857
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total loans and
advances at
amortised cost 296,392 48,845 8,368 353,605 1,003 3,308 3,516 7,827 345,778
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(2) 298,695 50,618 787 350,100 228 731 43 1,002 349,098
=============== ======= ======= ======= ======= ============== ============== ========= ====== ============
Total(3) 595,087 99,463 9,155 703,705 1,231 4,039 3,559 8,829 694,876
As at 31.03.21 Three months ended 31.03.21
================================== =================================================
Coverage ratio Loan impairment charge and loan loss rate(4)
================================== =================================================
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
%% %% GBPm bps
=============== ======= ====== ======= ====== ============================== =================
Barclays UK 0.2 5.9 38.4 1.5 28 6
Barclays
International 1.8 23.0 59.3 9.9 20 30
Head Office 0.1 8.0 46.0 7.6 (1) -
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total Barclays
Group retail 0.4 8.9 46.6 2.7 47 9
=============== ======= ======= ======= ======= ============== ============== ========= ======
Barclays UK - 3.3 9.4 0.7 14 15
Barclays
International 0.4 3.4 46.9 1.6 55 22
Head Office -- 96.9 5.4 1 71
=============== ======= ====== ======= ======= ============== ============== ========= ======
Total Barclays
Group
wholesale(1) 0.3 3.4 33.4 1.4 70 20
=============== ======= ======= ======= ======= ============== ============== ========= ======
Total loans and
advances at
amortised cost 0.3 6.8 42.0 2.2 117 13
=============== ======= ======= ======= ======= ============== ============== ========= ======
Off-balance
sheet loan
commitments
and financial
guarantee
contracts(2) 0.1 1.4 5.5 0.3 (57)
Other financial
assets subject
to
impairment(3) (5)
=============== ======= ======= ======= ======= ==============
Total(4) 0.2 4.1 38.9 1.3 55
1 Includes Wealth and Private Banking exposures measured on an individual
customer exposure basis, and excludes Business Banking exposures
that are managed on a collective basis. The net impact is a difference
in total exposure of GBP8,133m of balances reported as wholesale
loans on page 18 in the Loans and advances at amortised cost by
product disclosure.
2 Excludes loan commitments and financial guarantees of GBP18.9bn
carried at fair value.
3 Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances, financial
assets at fair value through other comprehensive income and other
assets. These have a total gross exposure of GBP188.1bn and impairment
allowance of GBP130m. This comprises GBP19m ECL on GBP186.3bn stage
1 assets, GBP3m on GBP1.7bn stage 2 fair value through other comprehensive
income assets, other assets, cash collateral and settlement balances
and GBP108m on GBP113m stage 3 other assets.
4 Q121 loan impairment charge represents three months of impairment
charge, annualised to calculate the loan loss rate. The loan loss
rate is 6bps after applying the total impairment charge of GBP55m.
Gross exposure Impairment allowance
================================== ===============================================
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure
As at 31.12.20 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Barclays UK 153,250 23,896 2,732 179,878 332 1,509 1,147 2,988 176,890
Barclays
International(1) 21,048 5,500 1,992 28,540 396 1,329 1,205 2,930 25,610
Head Office 4,267 720 844 5,831 4 51 380 435 5,396
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Total Barclays
Group retail 178,565 30,116 5,568 214,249 732 2,889 2,732 6,353 207,896
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Barclays UK 31,918 4,325 1,126 37,369 13 129 116 258 37,111
Barclays
International(1) 79,911 16,565 2,270 98,746 288 546 859 1,693 97,053
Head Office 570 - 33 603 - - 31 31 572
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Total Barclays
Group
wholesale(2) 112,399 20,890 3,429 136,718 301 675 1,006 1,982 134,736
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Total loans and
advances at
amortised cost 290,964 51,006 8,997 350,967 1,033 3,564 3,738 8,335 342,632
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Off-balance sheet
loan commitments
and financial
guarantee
contracts(3) 289,939 52,891 2,330 345,160 256 758 50 1,064 344,096
================= ======= ======= ======= ======= ============= ============= ========= ====== ============
Total(4) 580,903 103,897 11,327 696,127 1,289 4,322 3,788 9,399 686,728
As at 31.12.20 Year ended 31.12.20
================================== ===============================================
Coverage ratio Loan impairment charge and loan loss rate(4)
================================== ===============================================
Stage 1 Stage 2 Stage 3 Total Loan impairment charge Loan loss rate
%% %% GBPm bps
================= ======= ====== ======= ====== ============================ ========= ======
Barclays UK 0.2 6.3 42.0 1.7 1,070 59
Barclays
International(1) 1.9 24.2 60.5 10.3 1,680 589
Head Office 0.1 7.1 45.0 7.5 91 156
================= ======= ======= ======= ======= ============= ============= ========= ======
Total Barclays
Group retail 0.4 9.6 49.1 3.0 2,841 133
================= ======= ======= ======= ======= ============= ============= ========= ======
Barclays UK - 3.0 10.3 0.7 154 41
Barclays
International(1) 0.4 3.3 37.8 1.7 914 93
Head Office -- 93.9 5.1 - -
================= ======= ====== ======= ======= ============= ============= ========= ======
Total Barclays
Group
wholesale(2) 0.3 3.2 29.3 1.4 1,068 78
================= ======= ======= ======= ======= ============= ============= ========= ======
Total loans and
advances at
amortised cost 0.4 7.0 41.5 2.4 3,909 111
================= ======= ======= ======= ======= ============= ============= ========= ======
Off-balance sheet
loan commitments
and financial
guarantee
contracts(3) 0.1 1.4 2.1 0.3 776
Other financial
assets subject
to impairment(4) 153
================= ======= ======= ======= ======= =============
Total(5) 0.2 4.2 33.4 1.4 4,838
1 Private Banking have refined the methodology to classify GBP5bn
of their exposure between Wholesale and Retail during the year.
2 Includes Wealth and Private Banking exposures measured on an individual
customer exposure basis, and excludes Business Banking exposures
that are managed on a collective basis. The net impact is a difference
in total exposure of GBP7,551m of balances reported as wholesale
loans on page 18 in the Loans and advances at amortised cost by
product disclosure.
3 Excludes loan commitments and financial guarantees of GBP9.5bn
carried at fair value.
4 Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances, financial
assets at fair value through other comprehensive income and other
assets. These have a total gross exposure of GBP180.3bn and impairment
allowance of GBP165m. This comprises GBP11m ECL on GBP175.7bn stage
1 assets, GBP9m on GBP4.4bn stage 2 fair value through other comprehensive
income assets, other assets, cash collateral and settlement balances
and GBP145m on GBP154m stage 3 other assets.
5 The loan loss rate is 138bps after applying the total impairment
charge of GBP4,838m.
Loans and advances at amortised cost by product
The table below p resents a breakdown of loans and advances at
amortised cost and the impairment allowance with stage allocation
by asset classification.
Stage 2
===========================================================
As at 31.03.21 Stage 1 Not past due <=30 days past due >30 days past due Total Stage 3 Total
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 141,273 16,919 1,960 1,059 19,938 2,229 163,440
Credit cards, unsecured loans
and other retail lending 30,797 8,785 344 289 9,418 3,022 43,237
Wholesale loans 124,322 18,959 329 201 19,489 3,117 146,928
============================== ======= ============ ================== ================= ====== ======= =======
Total 296,392 44,663 2,633 1,549 48,845 8,368 353,605
Impairment allowance
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 34 55 13 11 79 397 510
Credit cards, unsecured loans
and other retail lending 624 2,228 144 177 2,549 2,091 5,264
Wholesale loans 345 6725 3 680 1,028 2,053
============================== ======= ============ ================= ================ ====== ======= =======
Total 1,003 2,955 162 191 3,308 3,516 7,827
Net exposure
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 141,239 16,864 1,947 1,048 19,859 1,832 162,930
Credit cards, unsecured loans
and other retail lending 30,173 6,557 200 112 6,869 931 37,973
Wholesale loans 123,977 18,287 324 198 18,809 2,089 144,875
============================== ======= ============ ================== ================= ====== ======= =======
Total 295,389 41,708 2,471 1,358 45,537 4,852 345,778
Coverage ratio %% %% %% %
============================== ======= =========== ================= ================ ===== ====== ======
Home loans - 0.3 0.7 1.0 0.4 17.8 0.3
Credit cards, unsecured loans
and other retail lending 2.0 25.4 41.9 61.2 27.1 69.2 12.2
Wholesale loans 0.3 3.5 1.5 1.5 3.5 33.0 1.4
============================== ======= ============ ================== ================= ====== ======= =======
Total 0.3 6.6 6.2 12.3 6.8 42.0 2.2
As at 31.12.20
Gross exposure GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 138,639 16,651 1,785 876 19,312 2,234 160,185
Credit cards, unsecured loans
and other retail lending 33,021 9,470 544 306 10,320 3,172 46,513
Wholesale loans 119,304 19,501 1,097 776 21,374 3,591 144,269
============================== ======= ============ ================== ================= ====== ======= =======
Total 290,964 45,622 3,426 1,958 51,006 8,997 350,967
Impairment allowance
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 33 57 13 14 84 421 538
Credit cards, unsecured loans
and other retail lending 680 2,382 180 207 2,769 2,251 5,700
Wholesale loans 320 650 50 11 711 1,066 2,097
============================== ======= ============ ================== ================= ====== ======= =======
Total 1,033 3,089 243 232 3,564 3,738 8,335
Net exposure
============================== ======= ============ ================== ================= ====== ======= =======
Home loans 138,606 16,594 1,772 862 19,228 1,813 159,647
Credit cards, unsecured loans
and other retail lending 32,341 7,088 364 99 7,551 921 40,813
Wholesale loans 118,984 18,851 1,047 765 20,663 2,525 142,172
============================== ======= ============ ================== ================= ====== ======= =======
Total 289,931 42,533 3,183 1,726 47,442 5,259 342,632
Coverage ratio %% %% %% %
============================== ======= =========== ================= ================ ===== ====== ======
Home loans - 0.3 0.7 1.6 0.4 18.8 0.3
Credit cards, unsecured loans
and other retail lending 2.1 25.2 33.1 67.6 26.8 71.0 12.3
Wholesale loans 0.3 3.3 4.6 1.4 3.3 29.7 1.5
============================== ======= ============ ================== ================= ====== ======= =======
Total 0.4 6.8 7.1 11.8 7.0 41.5 2.4
Measurement uncertainty
During the latter part of Q121, macroeconomic indicators became
more positive than at Q420, particularly in the UK with improved
economic growth and lower unemployment consensus forecasts in
response to the UK Budget announcement on 3 March 2021 and the
progress of the COVID-19 vaccine roll out programme. In the US, new
government stimulus was announced in March 2021, including a
$1.9trn Rescue Plan, and a COVID-19 vaccine programme well
underway. However, global economic uncertainty remains high as the
COVID-19 pandemic continues to evolve and practical challenges
remain in inoculation programmes.
In response to the changing economic environment, key baseline
macroeconomic indicators were refreshed at Q121. However, because
the macroeconomic outlook remains uncertain and has only recently
shown improvement, the impact from these consensus updates has not
been reflected in the Q121 ECL provision level. This has been based
on the more conservative macroeconomic indicators of the Q420 ECL
scenarios, rolled forward by one quarter, and updated to reflect
changes in balances and individually assessed impaired names during
the quarter. If these favourable macroeconomic indicators persist,
an adjustment will be made to the provision level.
Sensitivity analysis has been completed to estimate the impact
of applying the refreshed Q121 baseline to material portfolios.
This high-level analysis indicated that, all other things being
equal, this change in key macroeconomic variables would result in a
reduction to the modelled ECL stock of cGBP0.5bn from the material
portfolios, should positive macroeconomic indicators persist. The
macroeconomic variables used in the sensitivity analysis are
disclosed on the following page.
Management adjustments to models for impairment
The real economic impact of the COVID-19 pandemic may only
become clear once support measures put in place by governments
begin to fall away. Government support schemes are currently
scheduled to run until cQ321 in the major jurisdictions in which
Barclays operates. In addition to the above ECL model sensitivity
for which no adjustment has been made, management adjustments to
models for impairment were retained and amounted to GBP1,223m
(Q420: GBP1,388m). These included economic uncertainty adjustments
recognised at year end 2020 which addressed the temporary nature of
ongoing government support, the uncertainty in relation to the
timing of stress and the range of economic uncertainty.
The tables below show the primary consensus macroeconomic
variables in the Q121 Baseline scenario and the probability weights
applied to each rolled forward scenario.
Baseline average macroeconomic variables used in the calculation of ECL
The calculation of ECL was based on the Q420 macroeconomic variables rolled forward by one
quarter.
2021 2022 2023
As at 31.03.21 % % %
========================================================= ============== ============= ==========
UK GDP(1) 3.3 3.4 2.9
UK unemployment(2) 6.0 6.6 6.0
UK HPI(3) 2.4 2.3 4.2
UK bank rate 0.1 (0.1) -
US GDP(1) 1.9 3.2 2.9
US unemployment(4) 7.3 5.8 5.6
US HPI(5) 2.4 4.2 4.7
US federal funds rate 0.3 0.3 0.3
2021 2022 2023
As at 31.12.20 % % %
========================================================= ============== ============= ==========
UK GDP(1) 6.3 3.3 2.6
UK unemployment(2) 6.7 6.4 5.8
UK HPI(3) 2.4 2.3 5.0
UK bank rate - (0.1) -
US GDP(1) 3.9 3.1 2.9
US unemployment(4) 6.9 5.7 5.6
US HPI(5) 2.8 4.7 4.7
US federal funds rate 0.3 0.3 0.3
Baseline average macroeconomic variables refreshed for sensitivity analysis
Sensitivity analysis was performed by considering a refreshed Q121 baseline scenario relative
to the rolled forward baseline scenario against material portfolios, using the macroeconomic
variables in the table below.
2021 2022 2023
As at 31.03.21 % % %
========================================================= ============== ============= ==========
UK GDP(1) 5.0 5.7 2.3
UK unemployment(2) 5.8 5.6 5.1
UK HPI(3) (0.5) 0.3 3.6
UK bank rate 0.1 0.3 0.4
US GDP(1) 5.5 3.8 1.6
US unemployment(4) 5.7 4.5 4.5
US HPI(5) 3.9 3.5 3.5
US federal funds rate 0.3 0.3 0.7
1 Average Real GDP seasonally adjusted change in year.
2 Average UK unemployment rate 16-year+.
3 Change in year-end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
4 Average US civilian unemployment rate 16-year+.
5 Change in year-end US HPI = FHFA house price index, relative to
prior year end.
Scenario probability weighting
Upside 2 Upside 1 Baseline Downside 1 Downside 2
% % % % %
=============================== ======== ======== ======== ========== ==========
As at 31.03.21
Scenario probability weighting 20.2 24.2 24.7 15.5 15.4
=============================== ======== ======== ======== ========== ==========
As at 31.12.20
Scenario probability weighting 20.2 24.2 24.7 15.5 15.4
Treasury and Capital Risk
C apital
The Group's Overall Capital Requirement for CET1 is 11.1%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 2.6% Pillar 2A requirement and a 0.0%
Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. On 11 March 2020,
the Financial Policy Committee (FPC) set the CCyB rate for UK
exposures at 0% with immediate effect. The buffer rates set by
other national authorities for non-UK exposures are not currently
material. Overall, this results in a 0.0% CCyB for the Group.
The Group's Pillar 2A requirement as per the Prudential
Regulation Authority's (PRA) Individual Capital Requirement is 4.7%
of which at least 56.25% needs to be met with CET1 capital,
equating to approximately 2.6% of RWAs. The Pillar 2A requirement
is subject to at least annual review and has been set as a nominal
capital amount. This is based on a point in time assessment and the
requirement (when expressed as a proportion of RWAs) will change
depending on the total RWAs at each reporting period.
Following the withdrawal of the UK from the EU, any references
to CRR as amended by CRR II mean, unless otherwise specified, CRR
as amended by CRR II, as it forms part of UK law pursuant to the
European Union (Withdrawal) Act 2018 and subject to the temporary
transitional powers (TTP) available to UK regulators to delay or
phase-in on-shoring changes to UK regulatory requirements arising
at the end of the transition period until 31 March 2022, as at the
applicable reporting date. Throughout the TTP period, the Bank of
England (BoE) and PRA are expected to review the UK legislation
framework and any disclosures made by the Group will be subject to
any resulting guidance.
On 12 February 2021, the PRA launched a consultation on certain
items within the Basel standards that remain to be implemented in
the UK as well as setting out proposed new PRA CRR rules. The
proposals include reverting to the previous treatment of 100% CET1
capital deduction for qualifying software assets by the end of
2021, meaning the c.40bps benefit in the CET1 ratio is likely to be
reversed in future periods.
As at As at
======================================================================================
Capital ratios (1,2,3) 31.03.21 31.12.20
====================================================================================== ======== ========
CET1 14.6% 15.1%
Tier 1 (T1) 18.4% 19.0%
Total regulatory capital 21.8% 22.1%
Capital resources GBPm GBPm
====================================================================================== ======== ========
Total equity excluding non-controlling interests per the balance sheet 65,105 65,797
Less: other equity instruments (recognised as AT1 capital) (11,179) (11,172)
Adjustment to retained earnings for foreseeable ordinary share dividends (303) (174)
Adjustment to retained earnings for foreseeable repurchase of shares (439) -
Adjustment to retained earnings for foreseeable other equity coupons (42) (30)
Other regulatory adjustments and deductions
Additional value adjustments (PVA) (1,496) (1,146)
Goodwill and intangible assets (6,504) (6,914)
Deferred tax assets that rely on future profitability excluding temporary differences (629) (595)
Fair value reserves related to gains or losses on cash flow hedges (850) (1,575)
Gains or losses on liabilities at fair value resulting from own credit 1,202 870
Defined benefit pension fund assets (1,192) (1,326)
Direct and indirect holdings by an institution of own CET1 instruments (50) (50)
Adjustment under IFRS 9 transitional arrangements 2,285 2,556
Other regulatory adjustments (4) 55
====================================================================================== ======== ========
CET1 capital 45,904 46,296
AT1 capital
Capital instruments and related share premium accounts 11,179 11,172
Qualifying AT1 capital (including minority interests) issued by subsidiaries 655 646
Other regulatory adjustments and deductions (80) (80)
====================================================================================== ======== ========
AT1 capital 11,754 11,738
T1 capital 57,658 58,034
T2 capital
Capital instruments and related share premium accounts 8,951 7,836
Qualifying T2 capital (including minority interests) issued by subsidiaries 1,641 1,893
Credit risk adjustments (excess of impairment over expected losses) 95 57
Other regulatory adjustments and deductions (160) (160)
====================================================================================== ======== ========
Total regulatory capital 68,185 67,660
Total RWAs 313,356 306,203
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II. This includes IFRS
9 transitional arrangements and the grandfathering of CRR and CRR
II non-compliant capital instruments.
2 The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 14.0%,
with GBP43.6bn of CET1 capital and GBP312.6bn of RWAs calculated
without applying the transitional arrangements of the CRR as amended
by CRR II.
3 The Group's CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays Bank PLC 7.625% Contingent Capital
Notes, was 14.6%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR
as amended by CRR II, including the IFRS 9 transitional arrangements.
The benefit of the Financial Services Authority (FSA) October 2012
interpretation of the transitional provisions, relating to the
implementation of CRD IV, expired in December 2017.
Movement in CET1 capital Three months
=============================================================================================
ended
=============================================================================================
31.03.21
GBPm
============================================================================================= ============
Opening CET1 capital 46,296
Profit for the period attributable to equity holders 1,899
Own credit relating to derivative liabilities 14
Ordinary share dividends paid and foreseen (129)
Purchased and foreseeable share repurchase (700)
Other equity coupons paid and foreseen (207)
============================================================================================= ============
Increase in retained regulatory capital generated from earnings 877
Net impact of share schemes (167)
Fair value through other comprehensive income reserve (320)
Currency translation reserve (478)
Other reserves (6)
============================================================================================= ============
Decrease in other qualifying reserves (971)
Pension remeasurements within reserves (186)
Defined benefit pension fund asset deduction 134
============================================================================================= ============
Net impact of pensions (52)
Additional value adjustments (PVA) (350)
Goodwill and intangible assets 410
Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (34)
Adjustment under IFRS 9 transitional arrangements (271)
Other regulatory adjustments (1)
============================================================================================= ============
Decrease in regulatory capital due to adjustments and deductions (246)
Closing CET1 capital 45,904
CET1 capital decreased GBP0.4bn to GBP45.9bn (December 2020:
GBP46.3bn).
GBP1.9bn of capital generated from profits were partially offset
by GBP1.0bn dividends paid and foreseen including GBP0.7bn for the
share buyback announced with FY20 results , GBP0.2bn of equity
coupons paid and a GBP0.1bn accrual towards a FY21 dividend . Other
significant movements in the period were:
-- A GBP0.3bn reduction in the fair value through other comprehensive
income reserve driven by movements in the valuation of the liquidity
pool
-- A GBP0.5bn decrease in the currency translation reserves due to
the depreciation of period end EUR and USD against GBP
-- A GBP0.4bn increase in the PVA deduction due to the removal of
temporary regulatory supporting measures applied to certain additional
valuation adjustments
-- A GBP0.4bn decrease in the goodwill and intangible deduction reflecting
new qualifying software intangibles that are subject to risk weighting
rather than deduction
-- A GBP0.3bn decrease in IFRS 9 transitional relief, after tax, primarily
due to the amount of relief applied to the pre-2020 impairment
charge reducing to 50% in 2021 from 70% in 2020
RWAs by risk type and business
Operational
Credit risk Counterparty credit risk Market risk risk Total RWAs
=============== ==================================== ============== ============= ==========
Settlement
Std IRB Std IRB risk CVA Std IMA
As at 31.03.21 GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays UK 7,066 53,512 431 - - 217 64 - 11,381 72,671
Corporate
and
Investment
Bank 25,832 75,854 13,781 19,218 102 2,452 16,479 24,083 23,452 201,253
Consumer,
Cards and
Payments 18,621 2,875 178 41 - 28 - 59 6,949 28,751
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays
International 44,453 78,729 13,959 19,259 102 2,480 16,479 24,142 30,401 230,004
Head Office 4,424 7,065 - - - - - - (808) 10,681
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays Group 55,943 139,306 14,390 19,259 102 2,697 16,543 24,142 40,974 313,356
As at 31.12.20
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays UK 7,360 54,340 394 - - 136 72 - 11,359 73,661
Corporate
and
Investment
Bank 24,660 73,792 12,047 20,280 246 2,351 13,123 22,363 23,343 192,205
Consumer,
Cards and
Payments 19,754 3,041 177 45 - 31 - 71 6,996 30,115
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays
International 44,414 76,833 12,224 20,325 246 2,382 13,123 22,434 30,339 222,320
Head Office 4,153 6,869 - - - - - - (800) 10,222
============== ====== ======= ====== ====== ============= ===== ====== ====== ============= ==========
Barclays Group 55,927 138,042 12,618 20,325 246 2,518 13,195 22,434 40,898 306,203
Movement analysis of RWAs
Credit risk Counterparty credit risk Market risk Operational risk Total RWAs
GBPm GBPm GBPm GBPm GBPm
============================== =========== ======================== =========== ================ ==========
Opening RWAs (as at 31.12.20) 193,969 35,707 35,629 40,898 306,203
Book size 2,971 691 5,056 76 8,794
Acquisitions and disposals (59) - - - (59)
Book quality 628 213 - - 841
Model updates (438) (163) - - (601)
Methodology and policy (115) - - - (115)
Foreign exchange movements(1) (1,707) - - - (1,707)
============================== =========== ======================== =========== ================ ==========
Total RWA movements 1,280 741 5,056 76 7,153
============================== =========== ======================== =========== ================ ==========
Closing RWAs (as at 31.03.21) 195,249 36,448 40,685 40,974 313,356
1 Foreign exchange movements do not include foreign exchange for
counterparty credit risk or market risk.
Overall RWAs increased GBP7.2bn to GBP313.4bn (December 2020:
GBP306.2bn). Significant movements in the period were:
Credit risk RWAs increased GBP1.3bn:
-- A GBP3.0bn increase in book size primarily due to increased CIB
lending, growth in mortgages within Barclays UK partially offset
by lower consumer lending and ESHLA
-- A GBP1.7bn decrease due to the depreciation of period end EUR and
USD against GBP
Market risk RWAs increased GBP5.1bn:
-- A GBP5.1bn increase in book size primarily due to increased client
and trading activity
Leverage ratio and exposures
The Group is subject to a leverage ratio requirement of 3.8% as
at 31 March 2021. This comprises the 3.25% minimum requirement, a
G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a
countercyclical leverage ratio buffer of 0.0%. Although the
leverage ratio is expressed in terms of T1 capital, 75% of the
minimum requirement, equating to 2.4375%, needs to be met with CET1
capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB
was GBP6.2bn.
The Group is required to disclose an average UK leverage ratio
which is based on capital on the last day of each month in the
quarter and an exposure measure for each day in the quarter. The
Group is also required to disclose a UK leverage ratio based on
capital and exposure on the last day of the quarter. Both
approaches exclude qualifying claims on central banks from the
leverage exposures and include the PRA's early adoption of CRR II
settlement netting. The FPC intends to review the UK leverage
framework in 2021.
As at As at
31.03.21 31.12.20
===============================================
Leverage ratios (1,2) GBPm GBPm
=============================================== ========= =========
Average UK leverage ratio 4.9% 5.0%
Average T1 capital(3) 57,040 57,069
Average UK leverage exposure 1,174,887 1,146,919
UK leverage ratio 5.0% 5.3%
CET1 capital 45,904 46,296
AT1 capital 11,099 11,092
=============================================== ========= =========
T1 capital(3) 57,003 57,388
UK leverage exposure 1,145,413 1,090,907
UK leverage exposure
=============================================== ========= =========
Accounting assets
Derivative financial instruments 270,717 302,446
Derivative cash collateral 51,797 64,798
Securities financing transactions (SFTs) 189,496 164,034
Loans and advances and other assets 867,646 818,236
=============================================== ========= =========
Total IFRS assets 1,379,656 1,349,514
Regulatory consolidation adjustments (1,926) (1,144)
Derivatives adjustments
Derivatives netting (242,857) (272,275)
Adjustments to cash collateral (45,464) (57,414)
Net written credit protection 16,814 14,986
Potential future exposure (PFE) on derivatives 128,454 117,010
=============================================== ========= =========
Total derivatives adjustments (143,053) (197,693)
SFTs adjustments 22,294 21,114
Regulatory deductions and other adjustments (18,111) (17,469)
Weighted off-balance sheet commitments 118,134 113,704
Qualifying central bank claims (167,054) (155,890)
Settlement netting (44,527) (21,229)
UK leverage exposure 1,145,413 1,090,907
1 Fully loaded average UK leverage ratio was 4.7%, with GBP54.8bn
of T1 capital and GBP1,173bn of leverage exposure. Fully loaded
UK leverage ratio was 4.8%, with GBP54.7bn of T1 capital and GBP1,143bn
of leverage exposure. Fully loaded UK leverage ratios are calculated
without applying the transitional arrangements of the CRR as amended
by CRR II.
2 Capital and leverage measures are calculated applying the transitional
arrangements of the CRR as amended by CRR II.
3 T1 capital is calculated in line with the PRA Handbook.
The average UK leverage ratio decreased to 4.9% (December 2020:
5.0%). The average leverage exposure increased by GBP28bn to
GBP1,175bn (December 2020: GBP1,147bn) largely driven by an
increase in securities financing transactions (SFTs).
The UK leverage ratio decreased to 5.0% (December 2020: 5.3%).
The UK leverage exposure increased by GBP54.5bn to GBP1,145bn
(December 2020: GBP1,091bn) primarily driven by:
-- A GBP25.5bn increase in SFTs; and
-- A GBP11.4bn increase in PFE on derivatives driven by increased
trading activity
The Group also discloses a CRR leverage ratio(1) within its
additional regulatory disclosures prepared in accordance with EBA
guidelines on disclosure under Part Eight of the CRR (see Barclays
PLC Pillar 3 Report Q1 2021, due to be published on 30 April 2021
and which will be available at
home.barclays/investor-relations/reports-and-events/latest-financial-results
).
1 CRR leverage ratio as amended by CRR II.
MREL
The Group is required to meet the higher of: (i) the
requirements set by the BoE based on RWAs and the higher of average
and UK leverage exposures; and (ii) the requirements in CRR as
amended by CRR II based on RWAs and CRR leverage exposures. The
MREL requirements are subject to phased implementation and will be
fully implemented by 1 January 2022.
As at 31 March 2021, the Group's MREL requirement was to meet
7.0% of CRR leverage exposures. On 19 January 2021 the BoE
published indicative MREL requirements that show the Group's
highest requirement in 2022 will be 7.7% of CRR leverage exposure,
based on 30 September 2020 exposures. The BoE is currently
reviewing the MREL calibration and intends to make any policy
changes by the end of 2021. Separately, the FPC intends to review
the UK leverage framework in 2021 and this, along with any MREL
policy changes, may result in a different MREL requirement from 1
January 2022 than that which is currently proposed. CET1 capital
cannot be counted towards both MREL and the capital buffers,
meaning that the buffers will effectively be applied above MREL
requirements.
Own funds and eligible liabilities ratios
(1,2) As a percentage of RWAs As a percentage of CRR leverage exposure
============================================= ========================= ==========================================
As at As at As at As at
31.03.21 31.12.20 31.03.21 31.12.20
============================================= ============ =========== ==================== ====================
Total Barclays PLC (the Parent company) own
funds and eligible liabilities 32.1% 32.7% 7.6% 8.0%
Total own funds and eligible liabilities,
including eligible Barclays Bank PLC
instruments
(3) 32.8% 33.6% 7.8% 8.2%
Own funds and eligible liabilities (1,2) As at As at
31.03.21 31.12.20
GBPm GBPm
============================================= ============ =========== ==================== ====================
CET1 capital 45,904 46,296
AT1 capital instruments and related share premium accounts(4) 11,099 11,092
T2 capital instruments and related share premium accounts(4) 8,886 7,733
Eligible liabilities 34,571 35,086
======================================================================== ==================== ====================
Total Barclays PLC (the Parent company) own funds and eligible
liabilities 100,460 100,207
Qualifying AT1 capital (including minority interests) issued by
subsidiaries 655 646
Qualifying T2 capital (including minority interests) issued by
subsidiaries 1,641 1,893
======================================================================== ==================== ====================
Total own funds and eligible liabilities, including eligible Barclays
Bank PLC instruments
(3) 102,756 102,746
Total RWAs 313,356 306,203
Total CRR leverage exposure(5) 1,320,628 1,254,157
1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II. This includes IFRS
9 transitional arrangements and the grandfathering of CRR and CRR
II non-compliant capital instruments.
2 The BoE has set external MREL based on the higher of RWAs and CRR
or UK leverage exposures which could result in the binding measure
changing in future periods. The 31 March 2021 Barclays PLC (the
Parent company) own funds and eligible liabilities ratio as a percentage
of the UK leverage exposure was 8.8% and as a percentage of the
average UK leverage exposure was 8.6%.
3 Own funds instruments issued by subsidiaries will not be counted
towards MREL from 1 January 2022.
4 Includes other AT1 capital regulatory adjustments and deductions
of GBP80m (December 2020: GBP80m), and other T2 credit risk adjustments
and deductions of GBP65m (December 2020: GBP103m).
5 Fully loaded CRR leverage exposure is calculated without applying
the transitional arrangements of the CRR as amended by CRR II.
Condensed Consolidated Financial Statements
Condensed consolidated income statement
Three months ended Three months ended
31.03.21 31.03.20
GBPm GBPm
---------------------------------------------------- ------------------ ------------------
Total income 5,900 6,283
Credit impairment charges (55) (2,115)
===================================================== ================== ==================
Net operating income 5,845 4,168
Operating expenses excluding litigation and conduct (3,545) (3,253)
Litigation and conduct (33) (10)
===================================================== ================== ==================
Operating expenses (3,578) (3,263)
Other net income 132 8
===================================================== ================== ==================
Profit before tax 2,399 913
Tax charge (496) (71)
===================================================== ================== ==================
Profit after tax 1,903 842
Attributable to:
==================================================== ------------------ ------------------
Equity holders of the parent 1,704 605
Other equity instrument holders 195 221
===================================================== ================== ==================
Total equity holders of the parent 1,899 826
Non-controlling interests 4 16
===================================================== ================== ==================
Profit after tax 1,903 842
Earnings per share p p
==================================================== ------------------ ------------------
Basic earnings per ordinary share 9.9 3.5
Condensed consolidated balance sheet
As at As at
31.03.21 31.12.20
Assets GBPm GBPm
========================================================================= ========= =========
Cash and balances at central banks 209,521 191,127
Cash collateral and settlement balances 112,662 101,367
Loans and advances at amortised cost 345,778 342,632
Reverse repurchase agreements and other similar secured lending 10,276 9,031
Trading portfolio assets 131,226 127,950
Financial assets at fair value through the income statement 201,610 175,151
Derivative financial instruments 270,717 302,446
Financial assets at fair value through other comprehensive income 74,680 78,688
Investments in associates and joint ventures 917 781
Goodwill and intangible assets 7,867 7,948
Current tax assets 170 477
Deferred tax assets 4,053 3,444
Other assets 10,179 8,472
========================================================================== ========= =========
Total assets 1,379,656 1,349,514
Liabilities
========================================================================= ========= =========
Deposits at amortised cost 498,752 481,036
Cash collateral and settlement balances 107,130 85,423
Repurchase agreements and other similar secured borrowing 20,949 14,174
Debt securities in issue 87,291 75,796
Subordinated liabilities 15,944 16,341
Trading portfolio liabilities 60,735 47,405
Financial liabilities designated at fair value 249,852 249,765
Derivative financial instruments 260,407 300,775
Current tax liabilities 768 645
Deferred tax liabilities 15 15
Other liabilities 11,644 11,257
========================================================================== ========= =========
Total liabilities 1,313,487 1,282,632
Equity
========================================================================= ========= =========
Called up share capital and share premium 4,619 4,637
Other reserves 2,648 4,461
Retained earnings 46,659 45,527
========================================================================== ========= =========
Shareholders' equity attributable to ordinary shareholders of the parent 53,926 54,625
Other equity instruments 11,179 11,172
========================================================================== ========= =========
Total equity excluding non-controlling interests 65,105 65,797
Non-controlling interests 1,064 1,085
========================================================================== ========= =========
Total equity 66,169 66,882
Total liabilities and equity 1,379,656 1,349,514
Condensed consolidated statement of changes in equity
Called up
share capital
and share Other equity Retained Non-controlling
premium instruments Other reserves earnings Total interests Total equity
Three months
ended 31.03.21 GBPm GBPm GBPm GBPm GBPm GBPm GBPm
=============== ============= ============== ============== ============== ======= =============== ============
Balance as at 1
January 2021 4,637 11,172 4,461 45,527 65,797 1,085 66,882
Profit after
tax - 195 - 1,704 1,899 4 1,903
Retirement
benefit
remeasurements - - - (186) (186) - (186)
Other - - (1,842) - (1,842) - (1,842)
=============== ============= ============== ============== ============== ======= =============== ============
Total
comprehensive
income for the
period - 195 (1,842) 1,518 (129) 4 (125)
Equity settled
share schemes
and hedges
thereof 9 - - 266 275 - 275
Other equity
instruments
coupons paid - (195) - - (195) - (195)
Vesting of
shares under
employee share
schemes - - 2 (386) (384) - (384)
Repurchase of
shares (27) - 27 (261) (261) - (261)
Dividends paid - - - - - (1) (1)
Other movements - 7 - (5) 2 (24) (22)
=============== ============= ============== ============== ============== ======= =============== ============
Balance as at
31 March 2021 4,619 11,179 2,648 46,659 65,105 1,064 66,169
As at As at
31.03.21 31.12.20
Other reserves GBPm GBPm
====================================================== ======== ========
Currency translation reserve 2,393 2,871
Fair value through other comprehensive income reserve (315) 5
Cash flow hedging reserve 849 1,575
Own credit reserve (1,272) (954)
Other reserves and treasury shares 993 964
====================================================== ======== ========
Total 2,648 4,461
Basis of preparation
The condensed consolidated financial statements are prepared in
accordance with the recognition and measurement requirements of
UK-adopted international accounting standards (UK-adopted
International Financial Reporting Standards). Following the UK's
departure from the European Union (EU) at the end of the Brexit
transition period on 31 December 2020, all EU endorsed IFRS became
UK-adopted IFRS. On 6 January 2021, the UK endorsed the phase 2
amendments to IFRS 9 and IAS 39 in respect of interest rate
benchmark reform, which was also endorsed by the EU on 13 January
2021 and were early adopted in the Barclays PLC 2020 Annual Report.
UK adopted IFRS and EU endorsed IFRS are currently the same.
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods, and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by management.
However, any non-IFRS performance measures in this document are
not a substitute for IFRS measures and readers should consider the
IFRS measures as well.
Non-IFRS performance measures glossary
Measure Definition
=============================================== =====================================================================
Loan: deposit ratio Loans and advances at amortised cost divided by deposits at
amortised cost.
Period end allocated tangible equity Allocated tangible equity is calculated as 13.5% (2020: 13.0%) of
RWAs for each business,
adjusted for capital deductions, excluding goodwill and intangible
assets, reflecting the
assumptions the Group uses for capital planning purposes. Head
Office allocated tangible equity
represents the difference between the Group's tangible shareholders'
equity and the amounts
allocated to businesses.
Average tangible shareholders' equity Calculated as the average of the previous month's period end
tangible equity and the current
month's period end tangible equity. The average tangible
shareholders' equity for the period
is the average of the monthly averages within that period.
Average allocated tangible equity Calculated as the average of the previous month's period end
allocated tangible equity and
the current month's period end allocated tangible equity. The
average allocated tangible equity
for the period is the average of the monthly averages within that
period.
Return on average tangible shareholders' equity Annualised profit after tax attributable to ordinary equity holders
of the parent, as a proportion
of average shareholders' equity excluding non-controlling interests
and other equity instruments
adjusted for the deduction of intangible assets and goodwill. The
components of the calculation
have been included on page 32 to 33.
Return on average allocated tangible equity Annualised p rofit after tax attributable to ordinary equity holders
of the parent, as a proportion
of average allocated tangible equity. The components of the
calculation have been included
on page 32 to 34 .
Cost: income ratio Total operating expenses divided by total income.
Loan loss rate Quoted in basis points and represents total annualised impairment
charges divided by gross
loans and advances held at amortised cost at the balance sheet date.
The components of the
calculation have been included on page 16.
Net interest margin Annualised net interest income divided by the sum of average
customer assets. The components
of the calculation have been included on page 15.
Tangible net asset value per share Calculated by dividing shareholders' equity, excluding
non-controlling interests and other
equity instruments, less goodwill and intangible assets, by the
number of issued ordinary
shares. The components of the calculation have been included on page
34.
Pre-provision profits Calculated by excluding credit impairment charges from profit before
tax. The components of
the calculation have been included on page 33.
Returns
Return on average tangible equity is calculated as profit after
tax attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.5% (2020: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office average allocated tangible
equity represents the difference between the Group's average
tangible shareholders' equity and the amounts allocated to
businesses.
Profit/(loss) attributable
to ordinary equity holders Return on average tangible
of the parent Average tangible equity equity
Three months ended 31.03.21 GBPm GBPbn %
============================= ============================ ======================= ============================
Barclays UK 298 9.9 12.0
Corporate and Investment
Bank 1,263 28.2 17.9
Consumer, Cards and
Payments 168 4.1 16.5
Barclays International 1,431 32.3 17.7
Head Office (25) 4.3 n/m
Barclays Group 1,704 46.5 14.7
Three months ended 31.03.20
=============================
Barclays UK 175 10.1 6.9
Corporate and Investment
Bank 820 26.2 12.5
Consumer, Cards and
Payments (291) 5.0 (23.5)
Barclays International 529 31.2 6.8
Head Office (99) 5.6 n/m
Barclays Group 605 47.0 5.1
Barclays Group
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Return on average tangible shareholders' equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit/(loss) 1,704 220 611 90 605 681 (292) 1,034
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average shareholders' equity 54.4 55.7 56.4 58.4 55.2 54.5 56.4 54.0
Average goodwill and intangibles (7.9) (8.1) (8.1) (8.2) (8.2) (8.1) (8.0) (7.8)
Average tangible shareholders' equity 46.5 47.6 48.3 50.2 47.0 46.4 48.4 46.2
Return on average tangible shareholders' equity 14.7% 1.8% 5.1% 0.7% 5.1% 5.9% (2.4%) 9.0%
Pre-provision profits
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Profit before tax excluding credit impairment charges GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Profit before tax 2,399 646 1,147 359 913 1,097 246 1,531
Impact of credit impairment charges 55 492 608 1,623 2,115 523 461 480
Profit before tax excluding credit impairment charges 2,454 1,138 1,755 1,982 3,028 1,620 707 2,011
Barclays UK
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Return on average allocated tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit/(loss) 298 160 113 (123) 175 438 (907) 328
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 13.5 13.4 13.7 13.9 13.7 13.8 13.9 13.8
Average goodwill and intangibles (3.6) (3.6) (3.6) (3.6) (3.6) (3.5) (3.5) (3.5)
Average allocated tangible equity 9.9 9.8 10.1 10.3 10.1 10.3 10.4 10.3
Return on average allocated tangible equity 12.0% 6.5% 4.5% (4.8%) 6.9% 17.0% (34.9%) 12.7%
Barclays International
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Return on average allocated tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit 1,431 441 782 468 529 397 799 832
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 32.8 31.1 31.2 34.2 31.9 31.9 33.3 32.1
Average goodwill and intangibles (0.5) (0.6) (0.6) (0.7) (0.7) (1.0) (1.1) (1.0)
Average allocated tangible equity 32.3 30.5 30.6 33.5 31.2 30.9 32.2 31.1
Return on average allocated tangible equity 17.7% 5.8% 10.2% 5.6% 6.8% 5.1% 9.9% 10.7%
Corporate and Investment Bank
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Return on average allocated tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit 1,263 413 627 694 820 193 609 596
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 28.2 26.3 26.4 29.1 26.2 25.9 26.9 25.8
Average goodwill and intangibles - - - (0.1) - (0.1) - -
Average allocated tangible equity 28.2 26.3 26.4 29.0 26.2 25.8 26.9 25.8
Return on average allocated tangible equity 17.9% 6.3% 9.5% 9.6% 12.5% 3.0% 9.1% 9.2%
Consumer, Cards and Payments
Q121 Q420 Q320 Q220 Q120 Q419 Q319 Q219
Return on average allocated tangible equity GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Attributable profit/(loss) 168 28 155 (226) (291) 204 190 236
GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
Average allocated equity 4.6 4.8 4.8 5.1 5.7 6.0 6.4 6.3
Average goodwill and intangibles (0.5) (0.6) (0.6) (0.6) (0.7) (0.9) (1.1) (1.0)
Average allocated tangible equity 4.1 4.2 4.2 4.5 5.0 5.1 5.3 5.3
Return on average allocated tangible equity 16.5% 2.7% 14.7% (20.2%) (23.5%) 15.9% 14.2% 17.8%
Tangible net asset value per share As at As at As at
31.03.21 31.12.20 31.03.20
GBPm GBPm GBPm
Total equity excluding non-controlling interests 65,105 65,797 68,369
Other equity instruments (11,179) (11,172) (10,871)
Goodwill and intangibles (7,867) (7,948) (8,209)
Tangible shareholders' equity attributable to ordinary shareholders of the parent 46,059 46,677 49,289
m m m
Shares in issue 17,257 17,359 17,322
p p p
Tangible net asset value per share 267 269 284
Shareholder Information
Results timetable(1) Date
2021 Interim Results Announcement 28 July 2021
% Change(3)
Exchange rates(2) 31.03.21 31.12.20 31.03.20 31.12.20 31.03.20
Period end - USD/GBP 1.38 1.37 1.24 1% 11%
3 month average - USD/GBP 1.38 1.32 1.28 5% 8%
Period end - EUR/GBP 1.18 1.12 1.13 5% 4%
3 month average - EUR/GBP 1.14 1.11 1.16 3% (2%)
Share price data
Barclays PLC (p) 185.92 146.68 94.11
Barclays PLC number of shares (m) 17,223 17,359 17,332
For further information please contact
Investor relations Media relations
Chris Manners +44 (0) 20 7773 2136 Tom Hoskin +44 (0) 20 7116 4755
More information on Barclays can be found on our website:
home.barclays .
Registered office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number:
48839.
Registrar
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.
Tel: 0371 384 2055(4) from the UK or +44 121 415 7004 from overseas.
American Depositary Receipts (ADRs)
Shareowner Services
StockTransfer@equiniti.com
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128 (outside the US and Canada)
Shareowner Services, PO Box 64504, St Paul, MN 55164-0504, USA.
Delivery of ADR certificates and overnight mail
Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120, USA.
1 Note that these dates are provisional and subject to change.
2 The average rates shown above are derived from daily spot rates
during the year.
3 The change is the impact to GBP reported information.
4 Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding
UK public holidays in England and Wales.
Notes
The terms Barclays or Group refer to Barclays PLC together with
its subsidiaries. Unless otherwise stated, the income statement
analysis compares the three months ended 31 March 2021 to the
corresponding three months of 2020 and balance sheet analysis as at
31 March 2021 with comparatives relating to 31 December 2020 and 31
March 2020. The abbreviations 'GBPm' and 'GBPbn' represent millions
and thousands of millions of Pounds Sterling respectively; the
abbreviations '$m', '$bn' and '$trn' represent millions, thousands
of millions and thousands of billions 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 29 April 2021, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2020, which
contain 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) will be delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These results will be furnished on Form 6-K with 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 is a frequent issuer in the debt capital markets and
regularly meets with investors via formal road-shows and other ad
hoc meetings. Consistent with its usual practice, Barclays expects
that from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group.
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the businesses'
performance between financial periods and provide more detail
concerning the elements of performance which the managers of these
businesses are most directly able to influence or are relevant for
an assessment of the Group. They also reflect an important aspect
of the way in which operating targets are defined and performance
is monitored by Barclays' management. However, any non-IFRS
performance measures in this document are not a substitute for IFRS
measures and readers should consider the IFRS measures as well.
Refer to the appendix on pages 31 to 34 for further information and
calculations of non-IFRS performance measures included throughout
this document, and the most directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. These forward-looking statements
can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as 'may', 'will', 'seek', 'continue', 'aim',
'anticipate', 'target', 'projected', 'expect', 'estimate',
'intend', 'plan', 'goal', 'believe', 'achieve' or other words of
similar meaning. Forward-looking statements can be made in writing
but also may be made verbally by members of the management of the
Group (including, without limitation, during management
presentations to financial analysts) in connection with this
document. Examples of forward-looking statements include, among
others, statements or guidance regarding or relating to the Group's
future financial position, income growth, assets, impairment
charges, provisions, business strategy, capital, leverage and other
regulatory ratios, capital distributions (including dividend
pay-out ratios and expected payment strategies), projected levels
of growth in the banking and financial markets, projected costs or
savings, any commitments and targets, estimates of capital
expenditures, plans and objectives for future operations, projected
employee numbers, IFRS impacts and other statements that are not
historical fact. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances. The forward-looking statements speak only as at
the date on which they are made. Forward-looking statements may be
affected by: 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; the Group's ability along with government and other
stakeholders to manage and mitigate the impacts of climate change
effectively; geopolitical risks; and the impact of competition. In
addition, factors including (but not limited to) the following may
have an effect: capital, leverage and other regulatory rules
applicable to past, current and future periods; UK, US, Eurozone
and global macroeconomic and business conditions; the effects of
any volatility in credit markets; market related risks such as
changes in interest rates and foreign exchange rates; effects of
changes in valuation of credit market exposures; changes in
valuation of issued securities; volatility in capital markets;
changes in credit ratings of any entity within the Group or any
securities issued by such entities; direct and indirect impacts of
the coronavirus (COVID-19) pandemic; instability as a result of the
UK's exit from the European Union (EU), the effects of the EU-UK
Trade and Cooperation Agreement and the disruption that may
subsequently result in the UK and globally; the risk of
cyber-attacks, information or security breaches or technology
failures on the Group's business or operations; and the success of
future acquisitions, disposals and other strategic transactions. A
number of these influences and factors are beyond the Group's
control. As a result, the Group's actual financial position, future
results, capital distributions, capital, leverage or other
regulatory ratios or other financial and non-financial metrics or
performance measures may differ materially from the statements or
guidance set forth in the Group's forward-looking statements.
Additional risks and factors which may impact the Group's future
financial condition and performance are identified in our filings
with the SEC (including, without limitation, our Annual Report on
Form 20-F for the fiscal year ended 31 December 2020), 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.
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.
RNS may use your IP address to confirm compliance with the terms
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For further information about how RNS and the London Stock Exchange
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END
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