|
Interim Management Statement
|
Page
|
|
Performance Highlights
|
4
|
|
Group Performance Review
|
7
|
|
Results by Business
|
|
|
- Retail and Business Banking (RBB)
|
|
|
- UK
|
10
|
|
- Europe
|
11
|
|
- Africa
|
12
|
|
- Barclaycard
|
13
|
|
- Investment Bank
|
14
|
|
- Corporate Banking
|
16
|
|
- Wealth and Investment Management
|
18
|
|
- Head Office and Other Operations
|
19
|
|
Appendix I - Quarterly Results Summary
|
20
|
|
Appendix II - Performance Management
|
|
|
- Returns and Equity
|
24
|
|
- Transform Update
|
26
|
|
- Margins and Balances
|
28
|
|
Appendix III - Balance Sheet and Capital
|
31
|
|
Appendix IV - Credit Risk
|
|
|
- Retail and Wholesale Loans and Advances to Customers
|
38
|
|
- Group Exposures to Eurozone Countries
|
41
|
|
Appendix V - Other Legal and Regulatory Matters
|
43
|
|
Appendix VI - Other Information
|
44
|
|
|
§ Adjusted profit before tax was down 20% to £4,976m largely driven by costs to achieve Transform of £741m and a reduction in Investment Bank Fixed Income, Currency and Commodities (FICC) income, particularly in Q3 13,
including a £317m decrease in income from Exit Quadrant Assets, as disposals accelerated throughout 2013 |
|
|
§ Statutory profit before tax improved to £2,851m (2012: £962m), reflecting a reduced own credit charge of £125m (2012: £4,019m)
|
|
|
§ Adjusted income decreased 4% to £21,516m, reflecting a reduction of £657m in the Head Office and £597m in the Investment Bank
|
|
|
§ Investment Bank income was down 7% to £8,584m driven by a decrease in FICC income, which included significantly lower contributions from Exit Quadrant Assets, partially offset by increases in Equities and Prime Services,
and Investment Banking |
|
|
§ Credit impairment charges improved 6% to £2,353m, with an annualised loan loss rate of 64bps (2012: 66bps), principally reflecting improvements in Corporate Banking and Africa RBB, partially offset by increases across the
rest of the Group |
|
|
§ Adjusted operating expenses increased by £271m to £14,144m, reflecting £741m of costs to achieve Transform, principally related to restructuring in Europe RBB and the Investment Bank. Adjusted cost to income ratio was
66% (2012: 62%) with the increase attributable to costs to achieve Transform and lower income. The Investment Bank compensation: income ratio was 41% (2012: 40%) |
|
|
§ Adjusted return on average shareholders' equity decreased to 7.1% (2012: 9.7%) principally reflecting the costs to achieve Transform. Statutory return on average shareholders' equity improved to 3.1% (2012: negative 0.1%)
|
|
|
§ Risk weighted assets (RWAs) reduced £16bn to £371bn from 30 June 2013 to 30 September 2013, driven by reductions in exposures of £8bn, principally relating to Exit Quadrant RWAs, and foreign currency movements of
£8bn. This reduction was primarily in the Investment Bank, where RWAs reduced 7% to £157bn. Estimated CRD IV RWAs reduced £24bn to £448bn from 30 June 2013 to 30 September 2013, including a reduction in Exit Quadrant RWAs of £15bn to £53bn |
|
|
§ Core Tier 1 ratio strengthened to 11.3% (30 June 2013: 11.1%), as a result of the decrease in RWAs. Estimated CRD IV Common Equity Tier 1 (CET1) ratio on a fully loaded basis increased to 8.4% (30 June 2013: 8.1%) or 9.6%
on a post Rights Issue basis |
|
|
§ Estimated fully loaded CRD IV leverage ratio was 2.5% or 2.9% on a post Rights Issue basis, while the estimated PRA leverage ratio was 2.2% or 2.6% on a post Rights Issue basis
|
|
|
§ Liquidity pool decreased to £130bn (30 June 2013: £138bn), in line with our Leverage Plan, and remains in excess of our internal and regulatory requirements. Estimated Liquidity Coverage Ratio (LCR) was 107% (30 June 2013:
111%) |
|
|
§ An estimated £65bn of Funding for Lending (FLS) eligible gross new lending was made to UK households and businesses in 2013 to date
|
|
|
|
|
Barclays Unaudited Results
|
Adjusted
|
Statutory
|
|
for the nine months ended1
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.12
|
|||
|
£m
|
£m
|
% Change
|
£m
|
£m
|
% Change
|
||
|
Total income net of insurance claims
|
21,516
|
22,494
|
(4)
|
21,391
|
18,702
|
14
|
|
|
Credit impairment charges and other provisions
|
(2,353)
|
(2,515)
|
(6)
|
(2,353)
|
(2,515)
|
(6)
|
|
|
Net operating income
|
19,163
|
19,979
|
(4)
|
19,038
|
16,187
|
18
|
|
|
Operating expenses (excluding costs to achieve Transform)
|
(13,403)
|
(13,873)
|
(3)
|
(15,403)
|
(15,323)
|
1
|
|
|
Costs to achieve Transform
|
(741)
|
-
|
(741)
|
-
|
|||
|
Operating expenses
|
(14,144)
|
(13,873)
|
2
|
(16,144)
|
(15,323)
|
5
|
|
|
Other net (expense)/ income
|
(43)
|
98
|
(43)
|
98
|
|||
|
Profit before tax
|
4,976
|
6,204
|
(20)
|
2,851
|
962
|
||
|
Profit after tax
|
3,418
|
4,338
|
(21)
|
1,811
|
545
|
||
|
Attributable profit2
|
2,789
|
3,758
|
(26)
|
1,182
|
(35)
|
||
|
Performance Measures
|
|||||||
|
Return on average shareholders' equity
|
7.1%
|
9.7%
|
3.1%
|
(0.1%)
|
|||
|
Return on average tangible shareholders' equity
|
8.4%
|
11.5%
|
3.6%
|
(0.1%)
|
|||
|
Return on average risk weighted assets
|
1.2%
|
1.5%
|
0.6%
|
0.2%
|
|||
|
Cost: income ratio
|
66%
|
62%
|
75%
|
82%
|
|||
|
Compensation: net operating income ratio
|
39%
|
38%
|
39%
|
47%
|
|||
|
Loan loss rate (bps)
|
64
|
66
|
64
|
66
|
|||
|
Basic earnings/(loss) per share
|
21.9p
|
30.7p
|
9.3p
|
(0.3p)
|
|||
|
Dividend per share
|
3.0p
|
3.0p
|
3.0p
|
3.0p
|
|||
|
|
|||||||
|
Pre-Rights Issue
|
Proforma Post-Rights Issue3
|
||||||
|
Capital and Balance Sheet
|
30.09.13
|
30.06.13
|
30.09.13
|
||||
|
Core tier 1 ratio
|
11.3%
|
11.1%
|
12.9%
|
||||
|
CRD IV fully loaded common equity tier 1 ratio
|
8.4%
|
8.1%
|
9.6%
|
||||
|
Risk weighted assets
|
£371bn
|
£387bn
|
£371bn
|
||||
|
CRD IV fully loaded risk weighted assets
|
£448bn
|
£472bn
|
£448bn
|
||||
|
CRD IV fully loaded leverage ratio
|
2.5%
|
2.5%
|
2.9%
|
||||
|
PRA leverage ratio
|
2.2%
|
2.2%
|
2.6%
|
||||
|
Group liquidity pool
|
£130bn
|
£138bn
|
£130bn
|
||||
|
Net asset value per share
|
384p
|
397p
|
343p
|
||||
|
Net tangible asset value per share
|
323p
|
336p
|
295p
|
||||
|
Loan: deposit ratio
|
100%
|
102%
|
100%
|
||||
|
|
|||||||
|
Adjusted profit reconciliation
|
30.09.13
|
30.09.12
|
|||||
|
Adjusted profit before tax
|
4,976
|
6,204
|
|||||
|
Own credit
|
(125)
|
(4,019)
|
|||||
|
Gain on disposal of BlackRock investment
|
-
|
227
|
|||||
|
Provision for PPI redress
|
(1,350)
|
(1,000)
|
|||||
|
Provision for interest rate hedging products redress
|
(650)
|
(450)
|
|||||
|
Statutory profit before tax
|
2,851
|
962
|
|
|
1 The comparatives in this document have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011), the reallocation of elements
of Head Office results to businesses and portfolio restatements between businesses, as detailed in our announcement on 16 April 2013, accessible at http://group.barclays.com/about-barclays/investor- relations/investor-news. |
|
|
2 Attributable profit includes profit after tax and non-controlling interests.
|
|
|
3 Proforma post-rights issue capital metrics are prepared on the basis that new ordinary shares were issued and the cash received on 4 October 2013. For the purpose of calculating risk weighted assets, the
information presented assumes proceeds of the Rights Issue are held at a 0% risk weight. |
|
Adjusted
|
Statutory
|
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.12
|
||||
|
Profit/(Loss) Before Tax by Business
|
£m
|
£m
|
% Change
|
£m
|
£m
|
% Change
|
|
|
UK RBB
|
983
|
950
|
3
|
323
|
100
|
||
|
Europe RBB
|
(815)
|
(229)
|
(815)
|
(229)
|
|||
|
Africa RBB
|
344
|
217
|
59
|
344
|
217
|
59
|
|
|
Barclaycard
|
1,172
|
1,147
|
2
|
482
|
997
|
(52)
|
|
|
Investment Bank
|
2,852
|
3,230
|
(12)
|
2,852
|
3,230
|
(12)
|
|
|
Corporate Banking
|
678
|
399
|
70
|
28
|
(51)
|
||
|
Wealth and Investment Management
|
54
|
169
|
(68)
|
54
|
169
|
(68)
|
|
|
Head Office and Other Operations
|
(292)
|
321
|
(417)
|
(3,471)
|
(88)
|
||
|
Total profit before tax
|
4,976
|
6,204
|
(20)
|
2,851
|
962
|
||
|
Adjusted performance measures by business excluding costs to achieve Transform
|
Profit before tax
|
Return on average equity
|
Cost: income ratio
|
||||
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.13
|
||||
|
£m
|
£m
|
% Change
|
%
|
%
|
|||
|
UK RBB
|
1,039
|
950
|
9
|
13.3
|
62
|
||
|
Europe RBB
|
(458)
|
(229)
|
(23.6)
|
122
|
|||
|
Africa RBB
|
355
|
217
|
64
|
2.8
|
69
|
||
|
Barclaycard
|
1,183
|
1,147
|
3
|
19.6
|
41
|
||
|
Investment Bank
|
3,027
|
3,230
|
(6)
|
13.2
|
63
|
||
|
Corporate Banking
|
732
|
399
|
83
|
8.3
|
53
|
||
|
Wealth and Investment Management
|
131
|
169
|
(22)
|
4.9
|
85
|
||
|
Head Office and Other Operations
|
(292)
|
321
|
(2.2)
|
||||
|
Total profit before tax
|
5,717
|
6,204
|
(8)
|
8.4
|
62
|
||
|
|
- Adjusted profit before tax was down 20% to £4,976m largely driven by costs to achieve Transform of £741m and a reduction in Investment Bank FICC income, including a £317m decrease in income from Exit Quadrant Assets,
as disposals accelerated throughout 2013 |
|
|
- Statutory profit before tax improved to £2,851m (2012: £962m), reflecting a reduced own credit charge of £125m (2012: £4,019m)
|
|
|
- Adjusted return on average shareholders' equity decreased to 7.1% (2012: 9.7%) as a result of decrease in profits. Statutory return on average shareholders' equity improved to 3.1% (2012: negative 0.1%)
|
|
|
- Adjusted income decreased 4% to £21,516m, reflecting a reduction of £657m in the Head Office and £597m in the Investment Bank
|
|
|
- Investment Bank income was down 7% to £8,584m driven by a decrease in FICC income, which included significantly reduced contributions from Exit Quadrant Assets. This was partially offset by increases in Equities and
Prime Services and Investment Banking. Income decreased 22% on Q3 12 to £2,111m as lower activity in FICC was partially offset by improvements in Equities and Prime Services, and Investment Banking, due to commission gains and increased client deal activity |
|
|
- Total net interest income decreased by £310m to £8,493m, with lower net interest income in Head Office and the Investment Bank offset by increased net interest income in the rest of the Group. Customer net interest income
for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased to £7,766m (2012: £7,326m) driven by growth in customer assets, offset by a decline in the net interest margin of 8bps to 177bps, largely due to the impact of reduced contributions from Group structural hedging activities, which decreased by £89m to £876m |
|
|
- Credit impairment charges were down 6% to £2,353m, principally reflecting improvements in Corporate Banking, mainly due to lower charges in Europe, and Africa RBB, in part due to foreign currency movements. This was
partially offset by increases in the other businesses in part due to the non-recurrence of impairment releases in 2012 in UKRBB and Barclaycard and deterioration in European mortgage recovery performance. The overall improvement in impairment when coupled with a 3% fall in loans and advances balances resulted in a lower annualised loan loss rate of 64 bps (2012: 66bps) |
|
|
- Adjusted operating expenses increased by £271m to £14,144m, driven by costs to achieve Transform of £741m, partially offset by the non-recurrence of a £290m penalty relating to the setting of inter-bank offered rates in H1
12 and reduced performance accruals |
|
|
- Group adjusted cost to income ratio was 66% (2012: 62%) with the increase attributable to costs to achieve Transform. The Investment Bank cost: income ratio increased to 65% (2012: 63%) and the compensation: income ratio
increased to 41% (2012: 40%); excluding costs to achieve Transform, the ratio was in line at 40% |
|
|
- The effective tax rate on statutory profit before tax was 36.5% (2012: 43.3%), which is higher than the UK tax rate of 23.25% (2012: 24.5%) principally due to profits taxed in countries with high local tax rates and non-deductable
expenses. The effective tax rate on adjusted profit before tax was 31.3% (2012: 30.1%) |
|
|
- Total assets decreased by £128bn to £1,405bn from 30 June 2013 to 30 September 2013, primarily reflecting decreases in the mark to market value of derivative financial instruments, settlement balances, reverse repurchase
agreements and other similar secured lending, cash and balances at central banks, as well as reductions in Exit Quadrant Assets. The strengthening of GBP against USD, EUR and ZAR also contributed to the decrease |
|
|
- Total loans and advances decreased to £486bn (30 June 2013: £517bn) primarily due to lower settlement balances in the Investment Bank
|
|
|
- Total liabilities decreased £126bn to £1,347bn from 30 June 2013 to 30 September 2013, primarily reflecting decreases in derivative financial liabilities, repurchase agreements and other similar secured borrowing, and customer
accounts including settlement balances. The strengthening of GBP against USD, EUR and ZAR also contributed to the decrease |
|
|
- Estimated fully loaded CRD IV leverage exposure reduced to £1,481bn (30 June 2013: £1,559bn) driven by a reduction in settlement balances, lower potential future exposures on derivatives and decreases in cash balances at
central banks in line with our efforts to optimise the size of the liquidity pool |
|
|
- Total shareholders' equity including non-controlling interests, was £58.2bn (30 June 2013: £60.1bn). Excluding non-controlling interests, shareholders' equity decreased £1.6bn to £49.4bn. This reflects a decrease of £1.2bn in
currency translation reserve, driven by the strengthening of GBP against USD, EUR and ZAR, a decrease of £0.8bn due to an increase in retirement benefit liabilities partially offset by an increase of £0.5bn due to retained profits during the quarter |
|
|
- Net asset value per share was 384p (30 June 2013: 397p) and the net tangible asset value per share was 323p (30 June 2013: 336p)
|
|
|
- During Q3 13 the Group's net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece reduced by 6% to £53.9bn (30 June 2013: £57.2bn)
|
|
|
- As at 30 September 2013, utilisation of the provisions for PPI redress resulted in a reduction in the provision by £387m to £1,263m, while utilisation of the provision for Interest Rate Hedging Products redress resulted in a
decrease in the provision by £56m to £1,293m. Utilisation of the provisions during Q3 13 was in line with expectations and there has been no significant change to the estimates of future expected costs |
|
|
- Core Tier 1 capital decreased by £1.0bn to £42.0bn from 30 June 2013 to 30 September 2013,principally due to foreign currency movements of £1.5bn, partially offset by capital generated from earnings after the impact of
dividends paid. Estimated CRD IV fully loaded CET1 capital was £37.4bn (30 June 2013: £38.1bn) |
|
|
- RWAs decreased £16bn to £371bn from 30 June 2013 to 30 September 2013, driven by reductions in exposures of £8bn, principally relating to Exit Quadrant RWAs, and foreign currency movements of £8bn. This reduction
was primarily in the Investment Bank, where RWAs reduced 7% to £157bn. On a CRD IV basis, estimated Group RWAs reduced by £24bn to £448bn from 30 June 2013 to 30 September 2013, within which Exit Quadrant RWAs reduced by £15bn to £53bn |
|
|
- As a result, the Core Tier 1 ratio strengthened to 11.3% (30 June 2013: 11.1%)
|
|
|
- Barclays estimated fully loaded CET1 ratio assuming the final rules were applied as at 30 September 2013 is approximately 8.4% (30 June 2013: 8.1%). The estimated transitional CET1 ratio was approximately 10.4% (30 June
2013: 10.0%) |
|
|
- The estimated fully loaded CRD IV leverage ratio assuming the rules were applied as at 30 September 2013 was 2.5% (30 June 2013: 2.5%). The estimated PRA leverage ratio, assuming consistent additional deductions from
CET1 capital as at 30 June 2013 of £4.1bn, would result in a PRA leverage ratio of 2.2% (30 June 2013: 2.2%) |
|
|
- The rights issue will increase capital by £5.8bn, which if applied as at 30 September 2013 would have increased the Core Tier 1 ratio to 12.9%, the estimated fully loaded CRD IV Common Equity Tier 1 ratio to 9.6%, the
estimated fully loaded CRD IV leverage ratio to 2.9% and the estimated PRA leverage ratio to 2.6% |
|
|
- Consistent with our plans to optimise the size of the liquidity pool, within our established liquidity risk appetite framework, the Group liquidity pool reduced £8bn during Q3 13 to £130bn2 as at 30 September 2013. It remains in
excess of our internal and regulatory requirements. During the first nine months of 2013, the month end liquidity pool ranged from £130bn to £157bn (Full Year 2012: £150bn to £173bn) |
|
|
- Cash and deposits with central banks accounted for £61bn of the liquidity pool (30 June 2013: £71bn)3, Government bonds accounted for £49bn (30 June 2013: £47bn)4, and other available liquidity accounted for £20bn (30
June 2013: £20bn) |
|
|
- The Group estimated itsLiquidity Coverage-Ratio (LCR) at 107% at the end of Q3 13 (30 June 2013: 111%) based upon the latest standards published by the Basel Committee. This is equivalent to a surplus of £9bn above the
100% ratio (30 June 2013: £14bn)5. The reduction since 30 June 2013 is consistent with our plans to optimise the size of the liquidity pool |
|
|
- The customer loan to deposit ratio for RBB, Corporate Banking and Wealth and Investment Management was unchanged at 94% (30 June 2013: 94%). The loan to deposit ratio for the Group decreased to 100% as at 30
September 2013 (30 June 2013: 102%)5 |
|
|
- The Investment Bank activities are primarily funded through wholesale markets. The Investment Bank does not rely on customer funding from RBB, Barclaycard, Corporate Banking and Wealth and Investment
Management. Total Group wholesale funding outstanding (excluding repurchase agreements) was £198bn (30 June 2013: £217bn ), of which £85bn matures in less than one year (30 June 2013: £93bn) and £25bn matures within one month (30 June 2013: £30bn). The Group has £3bn of term funding maturing in the remainder of 2013 and £24bn maturing in 2014 |
|
|
- We will pay a third interim dividend for 2013 of 1.0p per share on 13 December 2013 resulting in a 3.0p dividend year to date
|
|
|
- We continue to remain cautious about the environment in which we operate and our focus remains on costs, capital, leverage and returns to drive sustainable performance improvements
|
|
|
1 Liquidity risk is managed separately at Absa Group due to local currency and funding requirements. Unless stated otherwise, all disclosures in this section exclude Absa.
|
|
|
2 £123bn (30 June 2013: £132bn) of which is eligible to count towards the LCR as per the Basel standards.
|
|
|
3 Of which over 95% (30 June 2013: over 95%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.
|
|
|
4 Of which over 85% (30 June 2013: over 80%) are comprised of UK, US, Japanese, French, German, Danish, Swiss and Dutch securities.
|
|
|
5 The LCR and customer loan to deposit ratio are calculated on a consolidated basis including Absa.
|
|
UK Retail and Business Banking
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
Adjusted basis
|
|||
|
Total income net of insurance claims
|
3,374
|
3,307
|
2
|
|
Credit impairment charges and other provisions
|
(259)
|
(198)
|
31
|
|
Net operating income
|
3,115
|
3,109
|
-
|
|
Operating expenses (excluding costs to achieve Transform)
|
(2,103)
|
(2,159)
|
(3)
|
|
Costs to achieve Transform
|
(56)
|
-
|
|
|
Operating expenses
|
(2,159)
|
(2,159)
|
-
|
|
Other net income
|
27
|
-
|
|
|
Adjusted profit before tax
|
983
|
950
|
3
|
|
Adjusted attributable profit1
|
751
|
686
|
9
|
|
Adjusting items
|
|||
|
Provision for PPI redress
|
(660)
|
(850)
|
|
|
Statutory profit before tax
|
323
|
100
|
|
|
Performance Measures
|
|||
|
Adjusted return on average equity
|
12.6%
|
13.0%
|
|
|
Adjusted return on average risk weighted assets
|
2.4%
|
2.7%
|
|
|
Adjusted cost: income ratio
|
64%
|
65%
|
|
|
Return on average equity
|
4.0%
|
0.8%
|
|
|
Return on average risk weighted assets
|
0.8%
|
0.3%
|
|
|
Cost: income ratio
|
84%
|
91%
|
|
|
Loan loss rate (bps)
|
25
|
21
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
135.5
|
135.4
|
|
|
Customer deposits
|
133.3
|
133.2
|
|
|
Total assets
|
156.9
|
159.5
|
|
|
Risk weighted assets
|
43.2
|
43.6
|
|
|
|
|
|
2013 compared to 2012
|
|
|
- Income increased 2% to £3,374m driven by strong mortgage growth and contribution from Barclays Direct (previously ING Direct UK, acquired during Q1 13). The net interest margin was down 9bps to 128bps primarily
reflecting reduced contribution from structural hedges. The customer asset margin increased 11bps to 120bps driven by higher customer margin on newly written mortgages |
|
|
- Credit impairment charges increased £61m to £259m due to provision releases in 2012 relating to unsecured lending and mortgages. 90 day arrears rates on UK personal loans improved to 1.2% (2012: 1.4%) with arrears rates on
home loans flat at 0.3% |
|
|
- Adjusted operating expenses were flat at £2,159m after absorbing costs to achieve Transform of £56m
|
|
|
- Adjusted profit before tax improved 3% to £983m. Statutory profit before tax improved by £223m to £323m principally due to the lower provision for PPI redress
|
|
|
Q3 13 compared to Q2 13
|
|
|
- Adjusted profit before tax improved 5% to £351m. Statutory profit before tax improved by £678m to £351m reflecting the provision for PPI redress taken in Q2 13
|
|
|
- Loans and advances to customers were broadly in line at £135.5bn (30 June 2013: £135.4bn) including Barclays Direct assets of £4.9bn (30 June 2013: £5.3bn). Customer deposits were broadly in line at £133.3bn (30 June 2013:
£133.2bn) reflecting a continued reduction in the portfolio acquired as part of the ING Direct UK acquisition to £7.4bn (30 June 2013: £9.8bn), offset by an increase in non-ING Direct UK customer deposits of 2% |
|
|
- Total assets decreased 2% to £156.9bn primarily reflecting a reduction of liquidity pool assets
|
|
|
- RWAs have remained broadly flat at £43.2bn
|
|
|
|
|
|
|
|
Europe Retail and Business Banking
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
Adjusted and statutory basis
|
|||
|
Total income net of insurance claims
|
512
|
547
|
(6)
|
|
Credit impairment charges and other provisions
|
(209)
|
(183)
|
14
|
|
Net operating income
|
303
|
364
|
(17)
|
|
Operating expenses (excluding costs to achieve Transform)
|
(625)
|
(602)
|
4
|
|
Costs to achieve Transform
|
(357)
|
-
|
|
|
Operating expenses
|
(982)
|
(602)
|
63
|
|
Other net (expense)/ income
|
(136)
|
9
|
|
|
Loss before tax
|
(815)
|
(229)
|
|
|
Attributable loss1
|
(629)
|
(198)
|
|
|
Performance Measures
|
|||
|
Return on average equity
|
(39.2%)
|
(12.2%)
|
|
|
Return on average risk weighted assets
|
(4.9%)
|
(1.6%)
|
|
|
Cost: income ratio
|
192%
|
110%
|
|
|
Loan loss rate (bps)
|
71
|
61
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
38.2
|
39.8
|
|
|
Customer deposits
|
16.7
|
17.5
|
|
|
Total assets
|
45.8
|
48.7
|
|
|
Risk weighted assets
|
16.8
|
16.7
|
|
|
2013 compared to 2012
|
|
|
- Income declined by 6% to £512m reflecting actions taken to reduce the volume of new assets written, particularly in Spain and Italy, to address the continuing economic challenges across Europe, partially offset by an increase
due to foreign currency movements. The net interest margin was broadly in line at 79bps (2012: 78bps) |
|
|
- Credit impairment charges increased by £26m to £209m principally due to foreign currency movements, and higher impairment balances against forbearance and higher risk mortgage customers, reflecting the current economic
conditions across Europe. The overall 90 day arrears rate reduced slightly to 91bps (2012: 93bps) |
|
|
- Operating expenses increased £380m to £982m primarily reflecting costs to achieve Transform of £357m, relating to restructuring costs to significantly downsize the distribution network, with the remaining increase driven by
foreign currency movements |
|
|
- Other net expense increased £145m to £136m due to a valuation adjustment recognised in respect of contractual obligations to trading partners, based in locations affected by our restructuring plans
|
|
|
- Loss before tax increased to £815m (2012: £229m) principally due to costs to achieve Transform and an increase in other net expense
|
|
|
Q3 13 compared to Q2 13
|
|
|
- Loss before tax decreased to £106m (Q2 13: £247m) largely as a result of the decrease in other net expense
|
|
|
- Income reduced 9% to £160m with seasonality driving reduced sales of mortgages and investment products
|
|
|
- Loans and advances reduced 4% to £38.2bn due to actions taken to reduce the volume of new assets written. Customer deposits reduced 5% to £16.7bn due to customer attrition driven by continued competitive pressure
|
|
|
- Total assets reduced 6% to £45.8bn principally due to a reduction in loans and advances and foreign currency movements
|
|
|
- RWAs remained broadly flat at £16.8bn, driven by a reduction in exposures and depreciation of EUR against GBP, offset by a change in risk profile driven by market conditions
|
|
|
1 Attributable loss includes loss after tax and non-controlling interests.
|
|
Africa Retail and Business Banking
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
Adjusted and statutory basis
|
|||
|
Total income net of insurance claims
|
1,995
|
2,207
|
(10)
|
|
Credit impairment charges and other provisions
|
(265)
|
(490)
|
(46)
|
|
Net operating income
|
1,730
|
1,717
|
1
|
|
Operating expenses (excluding costs to achieve Transform)
|
(1,380)
|
(1,505)
|
(8)
|
|
Costs to achieve Transform
|
(11)
|
-
|
|
|
Operating expenses
|
(1,391)
|
(1,505)
|
(8)
|
|
Other net income
|
5
|
5
|
-
|
|
Profit before tax
|
344
|
217
|
59
|
|
Attributable profit/(loss)1
|
42
|
(1)
|
|
|
Performance Measures
|
|||
|
Return on average equity
|
2.4%
|
(0.0%)
|
|
|
Return on average risk weighted assets
|
1.1%
|
0.6%
|
|
|
Cost: income ratio
|
70%
|
68%
|
|
|
Loan loss rate (bps)
|
134
|
203
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
25.8
|
27.6
|
|
|
Customer deposits
|
17.4
|
18.2
|
|
|
Total assets
|
35.6
|
37.5
|
|
|
Risk weighted assets
|
24.1
|
25.5
|
|
|
2013 compared to 2012
|
|
·
|
Based on average rates the ZAR depreciated against GBP by 15% on 2012. The deterioration was a significant contributor to the movement in the reported results. Other currency movements are considered insignificant
|
|
·
|
Income declined 10% to £1,995m driven by foreign currency movements, partially offset by fair value adjustments on the commercial property finance portfolio in the prior year. Excluding these items income remained broadly steady despite pressure on transaction volumes in a subdued economic environment. The net interest margin was down 7bps to 314bps through a decrease in the customer asset margin and reduced contribution from structural hedges
|
|
·
|
Credit impairment charges decreased by 46% to £265m driven by foreign currency movements, in addition to lower charges in the South African home loans recovery book and business banking portfolio. The 90 day arrears rates on home loans improved to 0.7% (2012: 2.2%). These lower charges were partly offset by a slight deterioration in the South African unsecured lending portfolio, which was reflective of the challenging economic environment. 90 day arrears rates on unsecured lending remained broadly in line at 3.3% (2012: 3.4%)
|
|
·
|
Operating expenses decreased 8% to £1,391m. On a constant currency basis, costs remained well contained given inflation in South Africa of approximately 6%
|
|
·
|
Profit before tax increased 59% to £344m, despite currency depreciation, primarily due to higher 2012 provisions on the South African home loans recovery book and fair value adjustments on the commercial property finance portfolio in the prior year
|
|
|
Q3 13 compared to Q213
|
|
·
|
The closing ZAR rate depreciated against GBP by 7% from 30 June 2013. The deterioration was a significant contributor to the movement in the reported results. Other currency movements are considered insignificant
|
|
·
|
Profit before tax increased to £132m (Q2 13: £131m), despite continued depreciation of the ZAR, driven by lower credit impairment charges in the South African home loans recovery book
|
|
·
|
Loans and advances to customers decreased 7% to £25.8bn and customer deposits decreased 4% to £17.4bn mainly due to foreign currency movements. On a constant currency basis loans and advances were broadly in line, while customer deposits grew following new products launched
|
|
·
|
Total assets decreased 5% to £35.6bn. On a constant currency basis total assets were broadly in line
|
|
·
|
RWAs decreased 5% to £24.1bn, primarily driven by the depreciation of ZAR against GBP
|
|
|
1 Attributable profit/(loss) includes profit after tax and non-controlling interests.
|
|
Barclaycard
|
Nine Months Ended
|
Nine Months Ended
|
||
|
30.09.13
|
30.09.12
|
|||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
|
Adjusted basis
|
||||
|
Total income net of insurance claims
|
3,566
|
3,204
|
11
|
|
|
Credit impairment charges and other provisions
|
(950)
|
(763)
|
25
|
|
|
Net operating income
|
2,616
|
2,441
|
7
|
|
|
Operating expenses (excluding costs to achieve Transform)
|
(1,461)
|
(1,318)
|
11
|
|
|
Costs to achieve Transform
|
(11)
|
-
|
||
|
Operating expenses
|
(1,472)
|
(1,318)
|
12
|
|
|
Other net income
|
28
|
24
|
||
|
Adjusted profit before tax
|
1,172
|
1,147
|
2
|
|
|
Adjusted attributable profit1
|
791
|
763
|
4
|
|
|
Adjusting items
|
||||
|
Provision for PPI redress
|
(690)
|
(150)
|
||
|
Statutory profit before tax
|
482
|
997
|
||
|
Performance Measures
|
||||
|
Adjusted return on average equity
|
19.4%
|
20.8%
|
||
|
Adjusted return on average risk weighted assets
|
3.0%
|
3.2%
|
||
|
Adjusted cost: income ratio
|
41%
|
41%
|
||
|
Return on average equity
|
6.7%
|
17.7%
|
||
|
Return on average risk weighted assets
|
1.2%
|
2.8%
|
||
|
Cost: income ratio
|
61%
|
46%
|
||
|
Loan loss rate (bps)
|
347
|
302
|
||
|
As at 30.09.13
|
As at 30.06.13
|
|||
|
Balance Sheet Information
|
£bn
|
£bn
|
||
|
Loans and advances to customers at amortised cost
|
34.6
|
34.7
|
||
|
Customer deposits
|
4.8
|
4.5
|
||
|
Total assets
|
38.1
|
39.2
|
||
|
Risk weighted assets
|
38.7
|
38.8
|
|
|
2013 compared to 2012
|
|
·
|
Income increased 11% to £3,566m reflecting continued net lending growth across the business, lower impact from structural hedges and contributions from 2012 acquisitions. The customer asset margin remained broadly stable at 9.45% (2012: 9.52%)
|
|
·
|
Credit impairment charges increased 25% to £950m driven by higher assets, including the impact of portfolio acquisitions, and non-recurrence of provision releases in 2012. While the loan loss rate increased in South Africa to 545 bps (2012: 194 bps) reflecting a change in product mix following recent acquisitions and the challenging economic environment, the loan loss rates in UK and US consumer credit cards remained stable at 374bps (2012: 361 bps) and 291 bps (2012: 293 bps), respectively. 30 day arrears rates for consumer cards in UK were down 10bps to 2.4%, in the US were down 40bps to 2.1% and in South Africa were up 380bps to 8.7%
|
|
·
|
Adjusted operating expenses increased 12% to £1,472m reflecting business growth including 2012 portfolio acquisitions and higher operating losses
|
|
·
|
Adjusted profit before tax increased 2% to £1,172m, while statutory profit before tax decreased to £482m (2012: £997m) due to the provision for PPI redress
|
|
|
Q3 13 compared to Q2 13
|
|
·
|
Adjusted profit before tax decreased 4% to £397m driven by higher operating expenses. Statutory profit before tax improved by £675m to £397m reflecting the provision for PPI redress taken in Q2 13
|
|
·
|
Loans and advances to customers remained stable at £34.6bn (30 June 2013: £34.7bn) reflecting business growth, offset by the impact of depreciation of USD against GBP. Customer deposits increased to £4.8bn (30 June 2013: £4.5bn) due to funding initiatives in the US and Germany
|
|
·
|
Total Assets decreased by £1.1bn to £38.1bn driven by a reduction in non-customer assets
|
|
·
|
RWAs remained broadly flat at £38.7bn
|
|
|
1 Adjusted attributable profit includes profit after tax and non-controlling interests.
|
|
|
|
|
Investment Bank
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
Adjusted and statutory basis
|
|||
|
Macro Products1
|
2,485
|
3,224
|
(23)
|
|
Credit Products1
|
1,951
|
2,142
|
(9)
|
|
Exit Quadrant Assets1
|
72
|
389
|
(81)
|
|
Fixed Income, Currency and Commodities
|
4,508
|
5,755
|
(22)
|
|
Equities and Prime Services
|
2,176
|
1,729
|
26
|
|
Investment Banking
|
1,611
|
1,517
|
6
|
|
Principal Investments and Other Income
|
289
|
180
|
61
|
|
Total income
|
8,584
|
9,181
|
(7)
|
|
Credit impairment charges and other provisions
|
(206)
|
(205)
|
|
|
Net operating income
|
8,378
|
8,976
|
(7)
|
|
Operating expenses (excluding costs to achieve Transform)
|
(5,373)
|
(5,781)
|
(7)
|
|
Costs to achieve Transform
|
(175)
|
-
|
|
|
Operating expenses
|
(5,548)
|
(5,781)
|
(4)
|
|
Other net income
|
22
|
35
|
(37)
|
|
Profit before tax
|
2,852
|
3,230
|
(12)
|
|
Attributable profit2
|
1,810
|
2,090
|
(13)
|
|
Performance Measures
|
|||
|
Return on average equity
|
12.3%
|
13.0%
|
|
|
Return on average risk weighted assets
|
1.5%
|
1.6%
|
|
|
Cost: income ratio
|
65%
|
63%
|
|
|
Compensation: income ratio
|
41%
|
40%
|
|
|
Loan loss rate (bps)
|
17
|
15
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Loans and advances to banks and customers at amortised cost3
|
160.4
|
186.6
|
|
|
Customer deposits3
|
101.8
|
117.4
|
|
|
Total assets
|
935.2
|
1,043.8
|
|
|
Risk weighted assets
|
157.2
|
168.8
|
|
|
2013 compared to 2012
|
|
|
- Total income decreased 7% to £8,584m, including a reduction of £317m relating to Exit Quadrant Assets
|
|
|
1 Macro Products represent Rates, Currency and Commodities income. Credit Products represent Credit and Securitised Product income. Exit Quadrant Assets consist of the Investment Bank Exit Quadrant business units as detailed on page 27.
|
|
|
2 Attributable profit includes profit after tax and non-controlling interests.
|
|
|
3 As at 30 September 2013 loans and advances included £124.2bn of loans and advances to customers (including settlement balances of £50.4bn and cash collateral of £34.7bn) and loans and advances to banks of £36.2bn (including settlement balances of £9.5bn and cash collateral of £14.3bn). Customer deposits included £50.2bn relating to settlement balances and £26.6bn relating to cash collateral
|
|
|
|
|
|
|
|
|
- Net credit impairment charges of £206m (2012: £205m) driven by a charge against a single name exposure in Q2 13
|
|
|
- Operating expenses reduced 4% to £5,548m, including £175m of costs to achieve Transform related to restructuring. The reduction in operating expenses was driven by the ongoing cost savings partially offset by £257m of
costs relating to infrastructure improvement, including investments to meet the requirements of the Dodd-Frank Act, CRD IV and other regulatory reporting change projects. 2012 included a £193m penalty relating to the setting of inter-bank offered rates |
|
|
- Including costs to achieve Transform, cost: income ratio increased 2% to 65%. Compensation: income ratio increased to 41% (2012: 40%)
|
|
|
- Profit before tax decreased 12% to £2,852m
|
|
|
- Income decreased 22% to £2,111m, including a reduction of £242m relating to Exit Quadrant Assets
|
|
|
- Operating expenses decreased 6% to £1,628m as lower performance costs were partially offset by expenditure of £94m on infrastructure improvement including investments to meet regulatory requirements, including the Dodd-
Frank Act and CRD IV |
|
|
- Profit before tax decreased 53% to £463m
|
|
|
|
|
|
Q3 13 compared to Q2 13
|
|
|
- Income decreased 30% to £2,111m
|
|
|
- FICC income decreased 32% to £940m primarily reflecting lower activity in Macro Products driven by a decrease in client flow across the Rates, Commodities and Currency businesses, due to the impact of market uncertainty
around central banks' tapering of quantitative easing programmes |
|
|
- Equities and Prime Services income decreased 22% to £645m as performance was impacted by the seasonal slowdown
|
|
|
- Investment Banking income decreased 1% to £525m, reflecting lower debt and equity underwriting partially offset by increased financial advisory activity
|
|
|
- Principal Investments and Other income declined significantly due to a one-off gain in the second quarter of £259m relating to a fair value adjustment as a result of greater certainty regarding the recoverability of certain
assets not yet received from the 2008 US Lehman acquisition |
|
|
- Net credit impairment charges improved to £25m (Q213: £195m) as the prior quarter reflected a charge against a single name exposure
|
|
|
- Operating expenses decreased 7% to £1,628m (Q2 13: £1,750m) including a £47m reduction in costs to achieve Transform to £6m
|
|
|
- Profit before tax decreased 57% to £463m
|
|
|
- Total Assets decreased by £108.6bn to £935.2bn, primarily reflecting decreases in reverse repurchase agreements, settlement balances and derivative financial instruments, in addition to the strengthening of GBP against USD
and EUR |
|
|
- RWAs decreased 7% to £157.2bn, driven by Exit Quadrant RWAs, the strengthening of GBP against USD and EUR, and a reduction in sovereign exposures. CRD IV RWAs reduced 8% to £234bn, including a reduction in Exit
Quadrant RWAs of £15bn |
|
Corporate Banking
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
Adjusted basis
|
|||
|
Total income net of insurance claims
|
2,351
|
2,300
|
2
|
|
Credit impairment charges and other provisions
|
(376)
|
(645)
|
(42)
|
|
Net operating income
|
1,975
|
1,655
|
19
|
|
Operating expenses (excluding costs to achieve Transform)
|
(1,245)
|
(1,260)
|
(1)
|
|
Costs to achieve Transform
|
(54)
|
-
|
|
|
Operating expenses
|
(1,299)
|
(1,260)
|
3
|
|
Other net income
|
2
|
4
|
|
|
Adjusted profit before tax
|
678
|
399
|
70
|
|
Adjusted attributable profit1
|
454
|
208
|
118
|
|
Adjusting items
|
|||
|
Provision for interest rate hedging products redress
|
(650)
|
(450)
|
|
|
Statutory profit/(loss) before tax
|
28
|
(51)
|
|
|
Adjusted profit/(loss) before tax by geographic segment
|
|||
|
UK
|
799
|
633
|
26
|
|
Europe
|
(217)
|
(297)
|
(27)
|
|
Rest of the World
|
96
|
63
|
52
|
|
Total
|
678
|
399
|
70
|
|
Performance Measures
|
|||
|
Adjusted return on average equity
|
7.7%
|
3.5%
|
|
|
Adjusted return on average risk weighted assets
|
1.0%
|
0.5%
|
|
|
Adjusted cost: income ratio
|
55%
|
55%
|
|
|
Return on average equity
|
(0.7%)
|
(2.2%)
|
|
|
Return on average risk weighted assets
|
0.1%
|
(0.1%)
|
|
|
Cost: income ratio
|
83%
|
74%
|
|
|
Loan loss rate (bps)
|
74
|
126
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
61.3
|
62.7
|
|
|
Loans and advances to customers at fair value
|
16.2
|
16.3
|
|
|
Customer deposits
|
105.4
|
106.7
|
|
|
Total assets
|
112.6
|
120.4
|
|
|
Risk weighted assets
|
70.5
|
73.1
|
|
|
2013 compared to 2012
|
|
|
- Total income increased 2% to £2,351m reflecting an increase in UK income, partially offset by a reduction in gains on fair value items to £45m (2012: £61m), principally related to the Education, Social Housing and Local
Authority portfolio, and non-recurring income from a reduction in Exit Quadrant assets in Europe and previously exited businesses. The net interest margin was broadly in line at 124bps (2012: 126bps), as reduced customer liability margin was largely offset by an increase in customer asset margin |
|
|
- Credit impairment charges reduced 42% to £376m largely driven by UK and Europe. Loan loss rates improved to 74bps (2012: 126bps)
|
|
-
|
UK impairment reduced by £91m to £126m, reflecting reduced impairment against large corporate clients
|
|
-
|
Europe impairment charges reduced by £168m to £248m, following ongoing action to reduce exposure to the property and construction sector in Spain
|
|
|
- Adjusted operating expenses increased 3% to £1,299m, driven by costs to achieve Transform of £54m related to restructuring costs in Europe and Rest of the World. Statutory operating expenses increased 14% to £1,949m
after charging an additional £650m provision for interest rate hedging products redress (2012: £450m) |
|
|
|
|
|
1 Adjusted attributable profit includes profit after tax and non-controlling interests.
|
|
|
|
|
|
- Adjusted profit before tax increased 70% to £678m; driven by
|
|
-
|
UK adjusted profit before tax increased 26% to £799m driven by increased income and lower credit impairment charges
|
|
-
|
Europe loss before tax reduced by 27% to £217m principally due to improved credit impairment charges, partially offset by costs to achieve Transform and lower income reflecting the impact of exited business lines
|
|
-
|
Rest of the World profit before tax increased by 52% to £96m, reflecting reduced operating expenses
|
|
|
- Statutory profit before tax increased to £28m (2012: loss of £51m) after the provision for interest rate hedging products redress
|
|
|
Q3 13 compared to Q2 13
|
|
|
- Adjusted profit before tax increased 26% to £276m, reflecting reduced operating expenses, an increase in UK income and reduced credit impairment charges in the UK and Europe, partially offset by a reduction in gains on fair
value items to £1m (Q2 13 £12m). Statutory profit before tax increased to £276m (Q2 13: loss of £431m) after charging the additional provision for interest rate hedging products redress in Q2 13 |
|
|
- Loans and advances to customers declined 2% to £61.3bn driven by a reduction in client financing requirements in the UK and the rundown of Exit Quadrant assets in Europe. Customer deposits were broadly in line at
£105.4bn (30 June 2013: £106.7bn) |
|
|
- Total assets decreased £7.8bn to £112.6bn reflecting a reduction of liquidity pool assets
|
|
|
- RWAs decreased 4% to £70.5bn driven primarily by the depreciation of the EUR against GBP and a reduction in Exit Quadrant RWAs
|
|
Wealth and Investment Management
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
% Change
|
|
Adjusted and statutory basis
|
|||
|
Total income net of insurance claims
|
1,380
|
1,337
|
3
|
|
Credit impairment charges and other provisions
|
(88)
|
(25)
|
|
|
Net operating income
|
1,292
|
1,312
|
(2)
|
|
Operating expenses (excluding costs to achieve Transform)
|
(1,171)
|
(1,144)
|
2
|
|
Costs to achieve Transform
|
(77)
|
-
|
|
|
Operating expenses
|
(1,248)
|
(1,144)
|
9
|
|
Other net income
|
10
|
1
|
|
|
Adjusted and statutory profit before tax
|
54
|
169
|
(68)
|
|
Adjusted and statutory attributable profit1
|
31
|
126
|
(75)
|
|
Performance Measures
|
|||
|
Return on average equity
|
1.8%
|
8.6%
|
|
|
Return on average risk weighted assets
|
0.3%
|
1.4%
|
|
|
Cost: income ratio
|
90%
|
86%
|
|
|
Loan loss rate (bps)
|
51
|
16
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
22.2
|
22.6
|
|
|
Customer deposits
|
62.1
|
62.8
|
|
|
Total assets
|
36.0
|
36.5
|
|
|
Risk weighted assets
|
17.0
|
17.0
|
|
|
Total client assets
|
202.0
|
202.8
|
|
|
- Income increased 3% to £1,380m, driven by the Americas and Asia regions. The net interest margin was down 20bps to 104bps primarily reflecting reduced contributions from structural hedges and reduced customer liability
margin. Customer asset margin increased 19bps to 83bps |
|
|
- Credit impairment charges increased £63m to £88m, largely reflecting the impact of deterioration of exposures on historical cases primarily in Europe. Q2 13 included a charge of £15m relating to secured lending on Spanish
property |
|
|
- Operating expenses increased 9% to £1,248m largely reflecting costs to achieve Transform of £77m and the customer remediation provision in Q2 13 of £22m
|
|
|
- Profit before tax decreased 68% to £54m primarily driven by costs to achieve Transform, customer remediation provision and increased impairment charges
|
|
|
Q3 13 compared to Q2 13
|
|
|
- Profit before tax increased £20m to £7m (Q2 13: loss of £13m) primarily due to the non-recurrence of the customer remediation provision, partially offset by an increase in costs to achieve Transform of £11m to £44m
|
|
|
- Loans and advances to customers of £22.2bn and customer deposits of £62.1bn were broadly in line, as growth driven by the High Net Worth businesses was offset by foreign currency movements
|
|
|
- Total Assets were broadly in line at £36.0bn (2013: £36.5) and RWAs remained flat at £17.0bn
|
|
|
- Client Assets were broadly in line at £202.0bn (2013: £202.8bn)
|
|
|
|
|
|
1 Adjusted and statutory attributable profit includes profit after tax and non-controlling interests.
|
|
Head Office and Other Operations
|
Nine Months Ended
|
Nine Months Ended
|
|
|
30.09.13
|
30.09.12
|
||
|
Income Statement Information
|
£m
|
£m
|
|
|
Adjusted basis
|
|||
|
Total (expense)/income net of insurance claims
|
(246)
|
411
|
|
|
Credit impairment charges and other provisions
|
-
|
(6)
|
|
|
Net operating (expense)/income
|
(246)
|
405
|
|
|
Operating expenses
|
(45)
|
(104)
|
|
|
Other net income
|
(1)
|
20
|
|
|
Adjusted (loss)/profit before tax
|
(292)
|
321
|
|
|
Adjusted attributable (loss)/profit1
|
(461)
|
84
|
|
|
Adjusting items
|
|||
|
Own credit
|
(125)
|
(4,019)
|
|
|
Gain on disposal of BlackRock investment
|
-
|
227
|
|
|
Statutory loss before tax
|
(417)
|
(3,471)
|
|
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Balance Sheet Information
|
£bn
|
£bn
|
|
|
Total assets
|
44.7
|
47.2
|
|
|
Risk weighted assets
|
3.4
|
3.7
|
|
|
2013 compared to 2012
|
|
|
- Adjusted income declined to a net expense of £246m (2012: income of £411m), predominately due to the non-recurrence of gains related to hedges of employee share awards in Q1 12 of £235m and the residual net expense from
treasury operations |
|
|
- Operating expenses decreased to £45m (2012: £104m), driven by the non-recurrence of the £97m penalty arising from the industry wide investigation into the setting of inter-bank offered rates recognised in H1 12, offset by an
increase in legal costs relating to regulatory investigations, in addition to costs from the Transform programme and Salz review |
|
|
- Adjusted loss before tax increased to £292m (2012: profit of £321m). Statutory loss before tax improved to £417m (2012: £3,471m) including an own credit charge of £125m (2012: £4,019m) and the non-recurrence of the £227m
gain on disposal of BlackRock investment in 2012 |
|
|
Q3 13 compared to Q2 13
|
|
|
- Adjusted loss before tax increased to £135m (Q2 13: £104m) driven by the ongoing impact of the raising of customer deposits across the Group, partially offset by a gain on debt buy back
|
|
|
- Statutory loss before tax increased to £346m (Q2 13: profit of £233m) including an own credit charge of £211m (Q2 13: gain of £337m)
|
|
|
- Total assets decreased 5% to £44.7bn and RWAs decreased 8% to £3.4bn, primarily reflecting a reduction of group liquidity pool assets
|
|
|
1 Adjusted attributable (loss)/profit includes loss after tax and non-controlling interests.
|
|
Barclays Results by Quarter
|
Q313
|
Q213
|
Q113
|
Q412
|
Q312
|
Q212
|
Q112
|
Q411
|
||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Adjusted basis
|
||||||||||
|
Total income net of insurance claims
|
6,445
|
7,337
|
7,734
|
6,867
|
7,002
|
7,384
|
8,108
|
6,213
|
||
|
Credit impairment charges and other provisions
|
(722)
|
(925)
|
(706)
|
(825)
|
(805)
|
(926)
|
(784)
|
(951)
|
||
|
Net operating income
|
5,723
|
6,412
|
7,028
|
6,042
|
6,197
|
6,458
|
7,324
|
5,262
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(4,262)
|
(4,359)
|
(4,782)
|
(4,345)
|
(4,353)
|
(4,555)
|
(4,965)
|
(4,441)
|
||
|
Costs to achieve Transform
|
(101)
|
(126)
|
(514)
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(345)
|
-
|
-
|
-
|
(325)
|
||
|
Operating expenses
|
(4,363)
|
(4,485)
|
(5,296)
|
(4,690)
|
(4,353)
|
(4,555)
|
(4,965)
|
(4,766)
|
||
|
Other net income
|
25
|
(122)
|
54
|
43
|
21
|
41
|
36
|
5
|
||
|
Adjusted profit before tax
|
1,385
|
1,805
|
1,786
|
1,395
|
1,865
|
1,944
|
2,395
|
501
|
||
|
|
||||||||||
|
Adjusting items
|
||||||||||
|
Own credit
|
(211)
|
337
|
(251)
|
(560)
|
(1,074)
|
(325)
|
(2,620)
|
(263)
|
||
|
Gains on debt buy-backs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,130
|
||
|
Gain on disposal of BlackRock investment
|
-
|
-
|
-
|
-
|
-
|
227
|
-
|
-
|
||
|
Provision for PPI redress
|
-
|
(1,350)
|
-
|
(600)
|
(700)
|
-
|
(300)
|
-
|
||
|
Provision for interest rate hedging products redress
|
-
|
(650)
|
-
|
(400)
|
-
|
(450)
|
-
|
-
|
||
|
Goodwill impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(550)
|
||
|
Losses on acquisitions and disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(32)
|
||
|
Statutory profit/(loss) before tax
|
1,174
|
142
|
1,535
|
(165)
|
91
|
1,396
|
(525)
|
786
|
||
|
Statutory profit/(loss) after tax
|
728
|
39
|
1,044
|
(364)
|
(13)
|
943
|
(385)
|
581
|
||
|
Attributable to:
|
||||||||||
|
Equity holders of the parent
|
511
|
(168)
|
839
|
(589)
|
(183)
|
746
|
(598)
|
335
|
||
|
Non-controlling interests
|
217
|
207
|
205
|
225
|
170
|
197
|
213
|
246
|
||
|
Adjusted basic earnings per share
|
5.7p
|
8.1p
|
8.1p
|
7.2p
|
8.3p
|
9.2p
|
13.2p
|
1.0p
|
||
|
Adjusted cost: income ratio
|
68%
|
61%
|
68%
|
68%
|
62%
|
62%
|
61%
|
77%
|
||
|
Basic earnings/(loss) per share
|
4.0p
|
(1.4p)
|
6.7p
|
(4.8p)
|
(1.5p)
|
6.1p
|
(4.9p)
|
2.8p
|
||
|
Cost: income ratio
|
70%
|
85%
|
71%
|
90%
|
85%
|
69%
|
96%
|
75%
|
||
|
Adjusted Profit/(Loss) Before Tax by Business
|
Q313
|
Q213
|
Q113
|
Q412
|
Q312
|
Q212
|
Q112
|
Q411
|
||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
UK RBB
|
351
|
333
|
299
|
275
|
358
|
360
|
232
|
162
|
||
|
Europe RBB
|
(106)
|
(247)
|
(462)
|
(114)
|
(81)
|
(76)
|
(72)
|
(176)
|
||
|
Africa RBB
|
132
|
131
|
81
|
105
|
34
|
51
|
132
|
231
|
||
|
Barclaycard
|
397
|
412
|
363
|
335
|
396
|
404
|
347
|
261
|
||
|
Investment Bank
|
463
|
1,074
|
1,315
|
760
|
988
|
1,060
|
1,182
|
(32)
|
||
|
Corporate Banking
|
276
|
219
|
183
|
61
|
88
|
108
|
203
|
(10)
|
||
|
Wealth and Investment Management
|
7
|
(13)
|
60
|
105
|
70
|
49
|
50
|
43
|
||
|
Head Office and Other Operations
|
(135)
|
(104)
|
(53)
|
(132)
|
12
|
(12)
|
321
|
22
|
||
|
Total profit before tax
|
1,385
|
1,805
|
1,786
|
1,395
|
1,865
|
1,944
|
2,395
|
501
|
|
Q313
|
Q213
|
Q113
|
Q412
|
Q312
|
Q212
|
Q112
|
Q411
|
|||
|
UK Retail and Business Banking
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Adjusted basis
|
||||||||||
|
Total income net of insurance claims
|
1,172
|
1,135
|
1,067
|
1,077
|
1,123
|
1,118
|
1,066
|
1,129
|
||
|
Credit impairment charges and other provisions
|
(81)
|
(89)
|
(89)
|
(71)
|
(76)
|
(46)
|
(76)
|
(156)
|
||
|
Net operating income
|
1,091
|
1,046
|
978
|
1,006
|
1,047
|
1,072
|
990
|
973
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(710)
|
(689)
|
(704)
|
(718)
|
(689)
|
(713)
|
(757)
|
(790)
|
||
|
Costs to achieve Transform
|
(29)
|
(27)
|
-
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(17)
|
-
|
-
|
-
|
(22)
|
||
|
Operating expenses
|
(739)
|
(716)
|
(704)
|
(735)
|
(689)
|
(713)
|
(757)
|
(812)
|
||
|
Other net income/(expense)
|
(1)
|
3
|
25
|
4
|
-
|
1
|
(1)
|
1
|
||
|
Adjusted profit before tax
|
351
|
333
|
299
|
275
|
358
|
360
|
232
|
162
|
||
|
|
||||||||||
|
Adjusting items
|
||||||||||
|
Provision for PPI redress
|
-
|
(660)
|
-
|
(330)
|
(550)
|
-
|
(300)
|
-
|
||
|
Statutory profit/(loss) before tax
|
351
|
(327)
|
299
|
(55)
|
(192)
|
360
|
(68)
|
162
|
||
|
Europe Retail and Business Banking
|
||||||||||
|
Adjusted basis
|
||||||||||
|
Total income net of insurance claims
|
160
|
176
|
176
|
161
|
168
|
191
|
188
|
198
|
||
|
Credit impairment charges and other provisions
|
(67)
|
(72)
|
(70)
|
(74)
|
(58)
|
(71)
|
(54)
|
(65)
|
||
|
Net operating income
|
93
|
104
|
106
|
87
|
110
|
120
|
134
|
133
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(203)
|
(207)
|
(215)
|
(185)
|
(193)
|
(200)
|
(209)
|
(290)
|
||
|
Costs to achieve Transform
|
(1)
|
-
|
(356)
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(20)
|
-
|
-
|
-
|
(21)
|
||
|
Operating expenses
|
(204)
|
(207)
|
(571)
|
(205)
|
(193)
|
(200)
|
(209)
|
(311)
|
||
|
Other net income
|
5
|
(144)
|
3
|
4
|
2
|
4
|
3
|
2
|
||
|
Adjusted (loss)/profit before tax
|
(106)
|
(247)
|
(462)
|
(114)
|
(81)
|
(76)
|
(72)
|
(176)
|
||
|
Adjusting items
|
||||||||||
|
Goodwill impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(427)
|
||
|
Statutory (loss)/profit before tax
|
(106)
|
(247)
|
(462)
|
(114)
|
(81)
|
(76)
|
(72)
|
(603)
|
||
|
Africa Retail and Business Banking
|
||||||||||
|
Adjusted and statutory basis
|
||||||||||
|
Total income net of insurance claims
|
643
|
684
|
668
|
721
|
714
|
729
|
764
|
806
|
||
|
Credit impairment charges and other provisions
|
(57)
|
(94)
|
(114)
|
(142)
|
(176)
|
(208)
|
(106)
|
(86)
|
||
|
Net operating income
|
586
|
590
|
554
|
579
|
538
|
521
|
658
|
720
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(454)
|
(452)
|
(474)
|
(455)
|
(506)
|
(471)
|
(528)
|
(468)
|
||
|
Costs to achieve Transform
|
(2)
|
(9)
|
-
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(24)
|
-
|
-
|
-
|
(23)
|
||
|
Operating expenses
|
(456)
|
(461)
|
(474)
|
(479)
|
(506)
|
(471)
|
(528)
|
(491)
|
||
|
Other net income
|
2
|
2
|
1
|
5
|
2
|
1
|
2
|
2
|
||
|
Profit before tax
|
132
|
131
|
81
|
105
|
34
|
51
|
132
|
231
|
|
Q313
|
Q213
|
Q113
|
Q412
|
Q312
|
Q212
|
Q112
|
Q411
|
|||
|
Barclaycard
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Adjusted basis
|
||||||||||
|
Total income net of insurance claims
|
1,223
|
1,190
|
1,153
|
1,140
|
1,092
|
1,079
|
1,033
|
1,037
|
||
|
Credit impairment charges and other provisions
|
(334)
|
(313)
|
(303)
|
(286)
|
(271)
|
(242)
|
(250)
|
(287)
|
||
|
Net operating income
|
889
|
877
|
850
|
854
|
821
|
837
|
783
|
750
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(498)
|
(467)
|
(496)
|
(508)
|
(432)
|
(441)
|
(445)
|
(478)
|
||
|
Costs to achieve Transform
|
(6)
|
(5)
|
-
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(16)
|
-
|
-
|
-
|
(16)
|
||
|
Operating expenses
|
(504)
|
(472)
|
(496)
|
(524)
|
(432)
|
(441)
|
(445)
|
(494)
|
||
|
Other net income
|
12
|
7
|
9
|
5
|
7
|
8
|
9
|
5
|
||
|
Adjusted profit before tax
|
397
|
412
|
363
|
335
|
396
|
404
|
347
|
261
|
||
|
|
||||||||||
|
Adjusting items
|
||||||||||
|
Provision for PPI redress
|
-
|
(690)
|
-
|
(270)
|
(150)
|
-
|
-
|
-
|
||
|
Statutory profit/(loss) before tax
|
397
|
(278)
|
363
|
65
|
246
|
404
|
347
|
261
|
||
|
Investment Bank
|
||||||||||
|
Adjusted and statutory basis
|
||||||||||
|
Macro Products
|
472
|
900
|
1,113
|
800
|
748
|
1,040
|
1,436
|
563
|
||
|
Credit Products
|
484
|
508
|
959
|
505
|
701
|
665
|
776
|
490
|
||
|
Exit Quadrant Assets
|
(16)
|
(30)
|
118
|
189
|
226
|
56
|
107
|
(120)
|
||
|
Fixed Income, Currency and Commodities
|
940
|
1,378
|
2,190
|
1,494
|
1,675
|
1,761
|
2,319
|
933
|
||
|
Equities and Prime Services
|
645
|
825
|
706
|
454
|
523
|
615
|
591
|
300
|
||
|
Investment Banking
|
525
|
528
|
558
|
620
|
493
|
509
|
515
|
518
|
||
|
Principal Investments and Other Income
|
1
|
279
|
9
|
26
|
30
|
139
|
11
|
36
|
||
|
Total income
|
2,111
|
3,010
|
3,463
|
2,594
|
2,721
|
3,024
|
3,436
|
1,787
|
||
|
Credit impairment (charges)/ releases and other provisions
|
(25)
|
(195)
|
14
|
1
|
(3)
|
(121)
|
(81)
|
(89)
|
||
|
Net operating income
|
2,086
|
2,815
|
3,477
|
2,595
|
2,718
|
2,903
|
3,355
|
1,698
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(1,622)
|
(1,697)
|
(2,054)
|
(1,644)
|
(1,737)
|
(1,849)
|
(2,195)
|
(1,527)
|
||
|
Costs to achieve Transform
|
(6)
|
(53)
|
(116)
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(206)
|
-
|
-
|
-
|
(199)
|
||
|
Operating expenses
|
(1,628)
|
(1,750)
|
(2,170)
|
(1,850)
|
(1,737)
|
(1,849)
|
(2,195)
|
(1,726)
|
||
|
Other net income/(expense)
|
5
|
9
|
8
|
15
|
7
|
6
|
22
|
(4)
|
||
|
Profit/(loss) before tax
|
463
|
1,074
|
1,315
|
760
|
988
|
1,060
|
1,182
|
(32)
|
||
|
Corporate Banking
|
||||||||||
|
Adjusted basis
|
||||||||||
|
Total income net of insurance claims
|
799
|
780
|
772
|
746
|
717
|
734
|
849
|
753
|
||
|
Credit impairment charges and other provisions
|
(118)
|
(128)
|
(130)
|
(240)
|
(214)
|
(223)
|
(208)
|
(252)
|
||
|
Net operating income
|
681
|
652
|
642
|
506
|
503
|
511
|
641
|
501
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(393)
|
(430)
|
(422)
|
(412)
|
(421)
|
(402)
|
(437)
|
(469)
|
||
|
Costs to achieve Transform
|
(13)
|
(4)
|
(37)
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(39)
|
-
|
-
|
-
|
(43)
|
||
|
Operating expenses
|
(406)
|
(434)
|
(459)
|
(451)
|
(421)
|
(402)
|
(437)
|
(512)
|
||
|
Other net income/(expense)
|
1
|
1
|
-
|
6
|
6
|
(1)
|
(1)
|
1
|
||
|
Adjusted profit/(loss) before tax
|
276
|
219
|
183
|
61
|
88
|
108
|
203
|
(10)
|
||
|
|
||||||||||
|
Adjusting items
|
||||||||||
|
Goodwill impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(123)
|
||
|
Provision for interest rate hedging products redress
|
-
|
(650)
|
-
|
(400)
|
-
|
(450)
|
-
|
-
|
||
|
Losses on disposal
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9)
|
||
|
Statutory profit/(loss) before tax
|
276
|
(431)
|
183
|
(339)
|
88
|
(342)
|
203
|
(142)
|
|
Q313
|
Q213
|
Q113
|
Q412
|
Q312
|
Q212
|
Q112
|
Q411
|
|||
|
Wealth and Investment Management
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Adjusted and statutory basis
|
||||||||||
|
Total income net of insurance claims
|
449
|
462
|
469
|
483
|
443
|
442
|
452
|
453
|
||
|
Credit impairment charges and other provisions
|
(39)
|
(35)
|
(14)
|
(13)
|
(6)
|
(12)
|
(7)
|
(10)
|
||
|
Net operating income
|
410
|
427
|
455
|
470
|
437
|
430
|
445
|
443
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(361)
|
(410)
|
(400)
|
(361)
|
(369)
|
(380)
|
(395)
|
(398)
|
||
|
Costs to achieve Transform
|
(44)
|
(33)
|
-
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(4)
|
-
|
-
|
-
|
(1)
|
||
|
Operating expenses
|
(405)
|
(443)
|
(400)
|
(365)
|
(369)
|
(380)
|
(395)
|
(399)
|
||
|
Other net income/(expense)
|
2
|
3
|
5
|
-
|
2
|
(1)
|
-
|
(1)
|
||
|
Profit/(loss) before tax
|
7
|
(13)
|
60
|
105
|
70
|
49
|
50
|
43
|
||
|
Head Office and Other Operations
|
||||||||||
|
Adjusted basis
|
||||||||||
|
Total (expense)/income net of insurance claims
|
(112)
|
(100)
|
(34)
|
(55)
|
24
|
68
|
319
|
49
|
||
|
Credit impairment (charges)/releases and other provisions
|
(1)
|
1
|
-
|
-
|
(1)
|
(3)
|
(2)
|
(6)
|
||
|
Net operating (expense)/income
|
(113)
|
(99)
|
(34)
|
(55)
|
23
|
65
|
317
|
43
|
||
|
Operating expenses (excluding costs to achieve Transform and UK bank levy)
|
(21)
|
(7)
|
(17)
|
(61)
|
(6)
|
(99)
|
1
|
(22)
|
||
|
Costs to achieve Transform
|
-
|
5
|
(5)
|
-
|
-
|
-
|
-
|
-
|
||
|
UK bank levy
|
-
|
-
|
-
|
(19)
|
-
|
-
|
-
|
-
|
||
|
Operating expenses
|
(21)
|
(2)
|
(22)
|
(80)
|
(6)
|
(99)
|
1
|
(22)
|
||
|
Other net (expense)/income
|
(1)
|
(3)
|
3
|
3
|
(5)
|
23
|
2
|
-
|
||
|
Adjusted (loss)/profit before tax
|
(135)
|
(104)
|
(53)
|
(132)
|
12
|
(11)
|
320
|
21
|
||
|
|
||||||||||
|
Adjusting items
|
||||||||||
|
Own Credit
|
(211)
|
337
|
(251)
|
(560)
|
(1,074)
|
(325)
|
(2,620)
|
(263)
|
||
|
Gain on disposal of BlackRock investment
|
-
|
-
|
-
|
-
|
-
|
227
|
-
|
-
|
||
|
Gains on debt buy-backs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,130
|
||
|
Losses on acquisitions and disposals
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(23)
|
||
|
Statutory (loss)/profit before tax
|
(346)
|
233
|
(304)
|
(692)
|
(1,062)
|
(109)
|
(2,300)
|
865
|
|
Adjusted
|
Statutory
|
|
Nine Months Ended
|
Nine Months Ended
|
Nine Months Ended
|
Nine Months Ended
|
||
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.12
|
||
|
Return on Average Equity
|
%
|
%
|
%
|
%
|
|
|
UK RBB
|
12.6
|
13.0
|
4.0
|
0.8
|
|
|
Europe RBB
|
(39.2)
|
(12.2)
|
(39.2)
|
(12.2)
|
|
|
Africa RBB
|
2.4
|
(0.0)
|
2.4
|
(0.0)
|
|
|
Barclaycard
|
19.4
|
20.8
|
6.7
|
17.7
|
|
|
Investment Bank
|
12.3
|
13.0
|
12.3
|
13.0
|
|
|
Corporate Banking
|
7.7
|
3.5
|
(0.7)
|
(2.2)
|
|
|
Wealth and Investment Management
|
1.8
|
8.6
|
1.8
|
8.6
|
|
|
Group excluding Head Office and Other Operations
|
9.1
|
10.2
|
4.8
|
7.2
|
|
|
Head Office and Other Operations impact
|
(2.0)
|
(0.5)
|
(1.7)
|
(7.3)
|
|
|
Total
|
7.1
|
9.7
|
3.1
|
(0.1)
|
|
|
Adjusted
|
Statutory
|
||||
|
Nine Months Ended
|
Nine Months Ended
|
Nine Months Ended
|
Nine Months Ended
|
||
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.12
|
||
|
Return on Average Tangible Equity
|
%
|
%
|
%
|
%
|
|
|
UK RBB
|
22.0
|
24.4
|
7.0
|
1.6
|
|
|
Europe RBB
|
(43.0)
|
(13.3)
|
(43.0)
|
(13.3)
|
|
|
Africa RBB1
|
8.7
|
4.4
|
8.7
|
4.4
|
|
|
Barclaycard
|
25.9
|
28.3
|
8.9
|
24.1
|
|
|
Investment Bank
|
12.8
|
13.5
|
12.8
|
13.5
|
|
|
Corporate Banking
|
8.1
|
3.7
|
(0.7)
|
(2.3)
|
|
|
Wealth and Investment Management
|
2.4
|
12.0
|
2.4
|
12.0
|
|
|
Group excluding Head Office and Other Operations
|
10.9
|
12.0
|
6.0
|
8.5
|
|
|
Head Office and Other Operations impact
|
(2.5)
|
(0.5)
|
(2.4)
|
(8.6)
|
|
|
Total
|
8.4
|
11.5
|
3.6
|
(0.1)
|
|
|
|
|
|
|
|
|
1 The return on average tangible equity for Africa RBB has been calculated including amounts relating to Absa Group's non-controlling interests.
|
|
|
|
|
|
|
|
Adjusted
|
Statutory
|
|
Nine months ended
|
Nine months ended
|
Nine months ended
|
Nine months ended
|
||
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.12
|
||
|
Profit attributable to equity holders of the parent
|
£m
|
£m
|
£m
|
£m
|
|
|
UK RBB
|
751
|
686
|
238
|
44
|
|
|
Europe RBB
|
(629)
|
(198)
|
(629)
|
(198)
|
|
|
Africa RBB
|
42
|
(1)
|
42
|
(1)
|
|
|
Barclaycard
|
791
|
763
|
272
|
650
|
|
|
Investment Bank
|
1,810
|
2,090
|
1,810
|
2,090
|
|
|
Corporate Banking
|
454
|
208
|
(40)
|
(132)
|
|
|
Wealth and Investment Management
|
31
|
126
|
31
|
126
|
|
|
Head Office and Other Operations 1
|
(461)
|
84
|
(542)
|
(2,614)
|
|
|
Total
|
2,789
|
3,758
|
1,182
|
(35)
|
|
|
Average Equity2
|
Average Tangible Equity2
|
||||
|
Nine months ended
|
Nine months ended
|
Nine months ended
|
Nine months ended
|
||
|
30.09.13
|
30.09.12
|
30.09.13
|
30.09.12
|
||
|
£m
|
£m
|
£m
|
£m
|
||
|
UK RBB
|
7,932
|
7,034
|
4,545
|
3,740
|
|
|
Europe RBB
|
2,142
|
2,170
|
1,952
|
1,986
|
|
|
Africa RBB
|
2,347
|
2,764
|
1,073
|
1,311
|
|
|
Barclaycard
|
5,447
|
4,883
|
4,072
|
3,596
|
|
|
Investment Bank
|
19,551
|
21,363
|
18,856
|
20,652
|
|
|
Corporate Banking
|
7,881
|
7,889
|
7,513
|
7,515
|
|
|
Wealth and Investment Management
|
2,303
|
1,943
|
1,740
|
1,404
|
|
|
Head Office and Other Operations 1
|
3,926
|
4,345
|
3,910
|
4,344
|
|
|
Total2
|
51,529
|
52,391
|
43,661
|
44,548
|
|
|
|
|
|
|
|
|
1 Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average shareholders' equity and tangible equity.
|
|
|
2 Group average shareholders' equity and average shareholders' tangible equity excludes the cumulative impact of own credit on retained earnings for the calculation of adjusted performance measures.
|
|
|
|
|
|
|
|
·
|
On 12 February 2013 the Group announced the commencement of a strategic cost management programme targeted at reducing net operating expenditure by £1.7bn by 2015. The programme is being executed and managed through the delivery of rightsizing, industrialisation and innovation initiatives. Rightsizing focuses on restructuring the current cost base to match profitable sources of growth; whilst industrialisation and innovation initiatives seek to invest in technology and new ways of working to reduce future operating costs and enhance customer and client propositions
|
|
·
|
Total costs to achieve Transform for the nine months to 30 September 2013 were £741m, with 87% relating to major restructuring initiatives. The material costs within major restructuring initiatives consist of redundancy, reflecting our priorities to rightsize our Europe RBB operations and the Investment Bank's operations in Asia and Europe
|
|
Nine months ended 30.09.13
|
|||
|
Major restructuring initiatives
|
Other Transform costs
|
Total Costs to Achieve Transform
|
|
|
Costs to Achieve Transform by Business
|
£m
|
£m
|
£m
|
|
UK RBB
|
(16)
|
(40)
|
(56)
|
|
Europe RBB
|
(357)
|
-
|
(357)
|
|
Africa RBB
|
-
|
(11)
|
(11)
|
|
Barclaycard
|
-
|
(11)
|
(11)
|
|
Investment Bank
|
(170)
|
(5)
|
(175)
|
|
Corporate Banking
|
(48)
|
(6)
|
(54)
|
|
Wealth and Investment Management
|
(52)
|
(25)
|
(77)
|
|
Total Costs to Achieve Transform
|
(643)
|
(98)
|
(741)
|
|
·
|
On 12 February 2013, the Group announced as part of its Strategic Review that, following a rigorous bottom-up analysis of each of its businesses based on the attractiveness of the market they operate in and their ability to generate sustainable returns on equity above cost of equity, it would be exiting certain businesses
|
|
·
|
The table below presents selected financial data for these Exit Quadrant businesses
|
|
CRD IV RWAs1
|
Balance Sheet
|
Nine Months Ended 30.09.13
|
|
As at 30.09.13
|
As at 30.06.13
|
As at 31.12.12
|
As at 30.09.13
|
As at 30.06.13
|
As at 31.12.12
|
Income/ (Expense)
|
Impairment (charge)/ release
|
Net operating (expense)/ income
|
|
|
Corporate Banking
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£m
|
£m
|
£m
|
|
European legacy assets
|
3.5
|
4.1
|
5.0
|
2.9
|
3.4
|
3.9
|
52
|
(249)
|
(197)
|
|
Europe RBB
|
|||||||||
|
Legacy assets
|
9.6
|
9.5
|
9.7
|
22.0
|
23.0
|
22.9
|
72
|
(154)
|
(82)
|
|
Investment Bank
|
|||||||||
|
US Residential Mortgages
|
1.1
|
0.7
|
5.3
|
0.9
|
1.1
|
2.2
|
428
|
-
|
428
|
|
Commercial Mortgages and Real Estate
|
1.9
|
3.0
|
3.1
|
2.7
|
3.9
|
4.0
|
118
|
-
|
118
|
|
Leveraged and Other Loans
|
6.5
|
8.4
|
10.1
|
7.0
|
9.6
|
11.5
|
(83)
|
6
|
(77)
|
|
CLOs and Other Insured Assets
|
4.9
|
6.5
|
5.9
|
12.2
|
14.1
|
16.3
|
(377)
|
-
|
(377)
|
|
Structured Credit and other
|
5.6
|
5.3
|
9.4
|
7.1
|
8.1
|
8.6
|
(76)
|
1
|
(75)
|
|
Monoline Derivatives
|
0.7
|
1.8
|
3.1
|
0.3
|
0.3
|
0.6
|
62
|
-
|
62
|
|
Corporate Derivatives
|
3.2
|
3.6
|
8.3
|
2.4
|
2.5
|
3.6
|
-
|
-
|
-
|
|
Portfolio Assets
|
23.9
|
29.3
|
45.2
|
32.6
|
39.6
|
46.8
|
72
|
7
|
79
|
|
Pre-CRD IV Rates Derivatives Portfolio
|
16.0
|
25.5
|
33.9
|
||||||
|
Total Investment Bank
|
39.9
|
54.8
|
79.1
|
||||||
|
Total
|
53.0
|
68.4
|
93.8
|
|
|
30 September 2013 compared to 31 December 2012
|
|
·
|
The estimated CRD IV RWAs of the Exit Quadrant businesses decreased £40.8bn to £53.0bn including reductions of £39.2bn in the Investment Bank. This reflects reductions in Investment Bank portfolio assets of £21.3bn to £23.9bn, relating to US Residential, Leveraged and Other Loans and Structured Credit Portfolios and optimisation initiatives within the derivatives portfolio. Pre CRD IV Rates derivatives RWAs decreased £17.9bn to £16.0bn. RWAs in Corporate Banking and Europe RBB Exit Quadrant portfolios decreased due to continued asset run down
|
|
·
|
The Portfolio Assets balance sheet decreased £14.2bn to £32.6bn driven by net sales and paydowns across asset classes. Income of £72m was primarily driven by gains relating to US Residential Mortgage exposures, partially offset by funding charges on CLOs and Other Insured assets and the acceleration of disposals. Portfolio Assets income reduced to £72m (2012: £389m), largely driven by a reduction in fair value gains on US Residential Mortgages and sale of Commercial Real Estate loans
|
|
·
|
Pre CRD IV Rates portfolio balance sheet assets reduced by £102.4bn to £251.4bn primarily due to interest rate and foreign exchange mark to market adjustments. The exposure would be £231.6bn (2012: £317.3bn) lower than reported under IFRS if netting were permitted for assets and liabilities with the same counterparty or for which the Group holds cash collateral. Therefore, the net exposure post counterparty netting and cash collateral would be £19.8bn (2012: £36.5bn)
|
|
·
|
Corporate Banking Exit Quadrant balance sheet assets in Europe decreased £1.0bn to £2.9bn largely driven by reductions in Spain and Portugal
|
|
·
|
The estimated CRD IV RWAs of the Exit Quadrant businesses decreased £15.4bn to £53.0bn. This reflects reductions in Investment Bank portfolio assets of £5.4bn to £23.9bn driven by refinancing of Leveraged Loans and the sale of a US Commercial Real Estate portfolio. Pre CRD IV Rates derivatives RWAs decreased £9.5bn to £16.0bn. Corporate Banking RWAs decreased due to continued asset run down, while Europe RBB RWAs were broadly flat
|
|
·
|
Portfolio Assets balance sheet decreased £7.0bn to £32.6bn due to refinancing of Leveraged Loans, sales of CLOs and principal paydowns. Income decreased by £16m, driven by carry charges on CLOs and Other Insured assets, partially offset by fair value gains on ABS CDO Super Senior and Commercial Real Estate loans
|
|
|
1 The table above provides an indication of the potential CRD IV RWAs that are currently allocated to the Exit Quadrant business
|
|
Margins and Balances
|
||
|
Nine months
|
Nine months
|
|
|
Ended
|
Ended
|
|
|
Analysis of Net Interest Income
|
30.09.13
|
30.09.12
|
|
£m
|
£m
|
|
|
RBB, Barclaycard, Corporate Banking and Wealth and Investment Management Customer Income:
|
||
|
- Customer assets
|
5,360
|
4,974
|
|
- Customer liabilities
|
2,406
|
2,352
|
|
Total
|
7,766
|
7,326
|
|
RBB, Barclaycard, Corporate Banking and Wealth and Investment Management Non-customer Income:
|
||
|
- Product structural hedge1
|
644
|
731
|
|
- Equity structural hedge2
|
232
|
234
|
|
- Other
|
(90)
|
(49)
|
|
Total RBB, Barclaycard, Corporate Banking and Wealth and Investment Management Net Interest Income
|
8,552
|
8,242
|
|
Investment Bank
|
176
|
361
|
|
Head Office and Other Operations
|
(235)
|
200
|
|
Group net interest income
|
8,493
|
8,803
|
|
|
- Group net interest income including contributions for the Investment Bank and Head Office and Other Operations decreased 4% to £8,493m (2012: £8,803m), predominantly due to a £148m reduction in contribution from structural hedging activities to £1,150m, including a reduction of £89m related to RBB, Barclaycard, Corporate Banking and Wealth and Investment Management, lower net interest income in the Investment Bank, and the residual net expense from treasury operations
|
|
|
- Net interest income for the RBB, Barclaycard, Corporate Banking and Wealth and Investment Management businesses increased 4% to £8,552m (2012: £8,242m), reflecting business growth in Barclaycard, UK RBB, and Corporate Banking. This was partially offset by foreign exchange movements in Africa RBB, the withdrawal from certain business lines in Europe RBB and reduced contribution from Group product and equity structural hedges
|
|
|
1 Product structural hedges convert short term interest margin volatility on product balances (such as non-interest bearing current accounts and managed rate deposits) into a more stable medium term rate and are built on a monthly basis to achieve a targeted maturity profile.
|
|
|
2 Equity structural hedges are in place to manage the volatility in net earnings generated by businesses on the Group's equity, with the impact allocated to businesses in line with their economic capital usage.
|
|
|
|
|
|
|
|
UK RBB margin
|
Europe RBB margin
|
Africa RBB margin
|
Barclaycard margin
|
Corporate Banking margin
|
Wealth and Investment Management margin
|
Total RBB, Barclaycard, Corporate and Wealth margin
|
|
|
Nine Months Ended 30.09.13
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Customer asset margin
|
1.20
|
0.43
|
3.08
|
9.45
|
1.34
|
0.83
|
2.20
|
|
Customer liability margin
|
0.88
|
0.41
|
2.76
|
(0.29)
|
1.00
|
0.97
|
1.01
|
|
Customer generated margin
|
1.05
|
0.43
|
2.95
|
8.59
|
1.14
|
0.93
|
1.61
|
|
Non-customer generated margin
|
0.23
|
0.36
|
0.19
|
(0.23)
|
0.10
|
0.11
|
0.16
|
|
Net interest margin
|
1.28
|
0.79
|
3.14
|
8.36
|
1.24
|
1.04
|
1.77
|
|
Average customer assets (£m)
|
133,690
|
39,894
|
28,162
|
36,153
|
66,251
|
22,259
|
326,409
|
|
Average customer liabilities (£m)
|
126,723
|
14,029
|
18,455
|
3,512
|
96,918
|
59,740
|
319,377
|
|
Nine Months Ended 30.09.12
|
|||||||
|
Customer asset margin
|
1.09
|
0.46
|
3.13
|
9.52
|
1.23
|
0.64
|
2.10
|
|
Customer liability margin
|
0.96
|
0.44
|
2.77
|
(0.91)
|
1.10
|
1.12
|
1.12
|
|
Customer generated margin
|
1.03
|
0.46
|
2.99
|
9.21
|
1.16
|
0.98
|
1.64
|
|
Non-customer generated margin
|
0.34
|
0.32
|
0.22
|
(0.59)
|
0.10
|
0.26
|
0.21
|
|
Net interest margin
|
1.37
|
0.78
|
3.21
|
8.62
|
1.26
|
1.24
|
1.85
|
|
Average customer assets (£m)
|
123,217
|
40,433
|
31,941
|
33,068
|
68,893
|
19,325
|
316,877
|
|
Average customer liabilities (£m)
|
111,044
|
15,034
|
19,740
|
1,015
|
83,283
|
49,182
|
279,298
|
|
|
- The RBB, Barclaycard, Corporate Banking and Wealth and Investment Management net interest margin reduced 8bps to 177bps, principally due to the impact of reduced contributions from Group structural hedging activities on non-customer generated margin which reduced 5bps to 16bps. Customer generated margin remained stable at 161bps (2012: 164bps)
|
|
Analysis of Net Interest Margin-Quarterly
|
|||||||
|
UK RBB
|
Europe RBB
|
Africa RBB
|
Barclaycard
|
Corporate Banking
|
Wealth and Investment Management
|
Total RBB, Barclaycard, Corporate and Wealth
|
|
|
Quarter Ended 30.09.13
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Customer asset margin
|
1.26
|
0.37
|
3.07
|
9.56
|
1.41
|
0.87
|
2.25
|
|
Customer liability margin
|
0.89
|
0.42
|
2.85
|
(0.24)
|
0.94
|
0.99
|
0.99
|
|
Customer generated margin
|
1.08
|
0.39
|
2.98
|
8.57
|
1.13
|
0.96
|
1.62
|
|
Non-customer generated margin
|
0.23
|
0.36
|
0.25
|
(0.18)
|
0.12
|
0.04
|
0.16
|
|
Net interest margin
|
1.31
|
0.75
|
3.23
|
8.39
|
1.25
|
1.00
|
1.78
|
|
Average customer assets (£m)
|
135,483
|
39,432
|
26,658
|
36,380
|
66,251
|
22,259
|
326,463
|
|
Average customer liabilities (£m)
|
131,465
|
13,842
|
17,892
|
4,084
|
96,918
|
59,740
|
323,941
|
|
Quarter Ended 30.06.13
|
|||||||
|
Customer asset margin
|
1.25
|
0.47
|
3.19
|
9.34
|
1.34
|
0.75
|
2.19
|
|
Customer liability margin
|
0.80
|
0.40
|
2.71
|
(0.30)
|
1.10
|
0.97
|
1.00
|
|
Customer generated margin
|
1.03
|
0.45
|
3.00
|
8.46
|
1.20
|
0.91
|
1.60
|
|
Non-customer generated margin
|
0.23
|
0.36
|
0.15
|
(0.22)
|
0.07
|
0.15
|
0.15
|
|
Net interest margin
|
1.26
|
0.81
|
3.15
|
8.24
|
1.27
|
1.06
|
1.75
|
|
Average customer assets (£m)
|
134,986
|
39,767
|
27,925
|
36,069
|
66,869
|
22,351
|
327,967
|
|
Average customer liabilities (£m)
|
129,843
|
13,943
|
18,405
|
3,629
|
95,178
|
60,670
|
321,668
|
|
Quarter Ended 30.09.12
|
|||||||
|
Customer asset margin
|
1.12
|
0.44
|
3.09
|
9.16
|
1.27
|
0.61
|
2.08
|
|
Customer liability margin
|
0.96
|
0.36
|
2.82
|
(0.68)
|
1.02
|
1.13
|
1.10
|
|
Customer generated margin
|
1.04
|
0.42
|
2.98
|
8.68
|
1.13
|
0.99
|
1.61
|
|
Non-customer generated margin
|
0.34
|
0.31
|
0.20
|
(0.42)
|
0.07
|
0.22
|
0.20
|
|
Net interest margin
|
1.38
|
0.73
|
3.18
|
8.26
|
1.20
|
1.21
|
1.81
|
|
Average customer assets (£m)
|
123,217
|
40,489
|
30,939
|
33,536
|
69,362
|
19,755
|
317,298
|
|
Average customer liabilities (£m)
|
111,044
|
15,034
|
19,447
|
1,717
|
86,478
|
51,016
|
284,736
|
|
Consolidated Summary Balance Sheet
|
|||
|
As at
|
As at
|
As at
|
|
|
30.09.131
|
30.06.13
|
31.12.122
|
|
|
Assets
|
£m
|
£m
|
£m
|
|
Cash, balances at central banks and items in the course of collection
|
64,276
|
75,298
|
87,664
|
|
Trading portfolio assets
|
145,835
|
151,981
|
146,352
|
|
Financial assets designated at fair value
|
40,538
|
46,847
|
46,629
|
|
Derivative financial instruments
|
356,033
|
403,072
|
469,156
|
|
Available for sale financial investments
|
86,996
|
91,707
|
75,109
|
|
Loans and advances to banks
|
42,586
|
46,451
|
40,462
|
|
Loans and advances to customers
|
442,940
|
470,062
|
423,906
|
|
Reverse repurchase agreements and other similar secured lending
|
202,513
|
222,881
|
176,522
|
|
Other assets
|
23,118
|
24,434
|
22,535
|
|
Total assets
|
1,404,835
|
1,532,733
|
1,488,335
|
|
Liabilities
|
|||
|
Deposits and items in the course of collection due to banks
|
70,936
|
79,872
|
78,599
|
|
Customer accounts
|
442,404
|
460,264
|
385,411
|
|
Repurchase agreements and other similar secured borrowing
|
224,588
|
259,539
|
217,178
|
|
Trading portfolio liabilities
|
55,409
|
59,360
|
44,794
|
|
Financial liabilities designated at fair value
|
67,351
|
71,274
|
78,561
|
|
Derivative financial instruments
|
351,194
|
396,125
|
462,721
|
|
Debt securities in issue
|
92,072
|
102,946
|
119,525
|
|
Subordinated liabilities
|
22,210
|
22,641
|
24,018
|
|
Other liabilities
|
20,457
|
20,575
|
17,542
|
|
Total liabilities
|
1,346,621
|
1,472,596
|
1,428,349
|
|
Shareholders' Equity
|
|||
|
Called up share capital and share premium
|
14,015
|
13,988
|
12,477
|
|
Other reserves
|
1,866
|
3,233
|
3,674
|
|
Retained earnings
|
33,555
|
33,862
|
34,464
|
|
Shareholders' equity excluding non-controlling interests
|
49,436
|
51,083
|
50,615
|
|
Non-controlling interests
|
8,778
|
9,054
|
9,371
|
|
Total shareholders' equity
|
58,214
|
60,137
|
59,986
|
|
Total liabilities and shareholders' equity
|
1,404,835
|
1,532,733
|
1,488,335
|
|
|
1 The balance sheet positions as at 30 September 2013 do not include new ordinary shares issued as part of the Rights Issue and associated cash proceeds received after 30 September 2013. The new ordinary shares commenced trading, fully paid, on the London Stock Exchange PLC's main market for listed securities on 4 October 2013.
|
|
|
2 The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011).
|
|
Key Capital Ratios
|
As at
|
As at
|
As at
|
|
|
30.09.13
|
30.06.13
|
31.12.12
|
|
Core Tier 1
|
11.3%
|
11.1%
|
10.8%
|
|
Tier 1
|
13.8%
|
13.5%
|
13.2%
|
|
Total capital
|
17.8%
|
17.4%
|
17.0%
|
|
|
|||
|
Capital Resources
|
£m
|
£m
|
£m
|
|
Shareholders' equity (excluding non-controlling interests) per balance sheet
|
49,436
|
51,083
|
50,615
|
|
Own credit cumulative loss1
|
741
|
593
|
804
|
|
Unrealised gains on available for sale debt securities1
|
(343)
|
(293)
|
(417)
|
|
Unrealised gains on available for sale equity (recognised as tier 2 capital)1
|
(145)
|
(137)
|
(110)
|
|
Cash flow hedging reserve1
|
(860)
|
(1,019)
|
(2,099)
|
|
|
|||
|
Non-controlling interests per balance sheet
|
8,778
|
9,054
|
9,371
|
|
- Less: Other Tier 1 capital - preference shares
|
(6,151)
|
(6,171)
|
(6,203)
|
|
- Less: Non-controlling Tier 2 capital
|
(486)
|
(486)
|
(547)
|
|
Other regulatory adjustments to non-controlling interests
|
(160)
|
(116)
|
(171)
|
|
|
|||
|
Other regulatory adjustments and deductions:
|
|||
|
Defined benefit pension adjustment1
|
584
|
12
|
49
|
|
Goodwill and intangible assets1
|
(7,556)
|
(7,583)
|
(7,622)
|
|
50% excess of expected losses over impairment1
|
(787)
|
(812)
|
(648)
|
|
50% of securitisation positions
|
(728)
|
(759)
|
(997)
|
|
Other regulatory adjustments
|
(347)
|
(423)
|
(303)
|
|
Core Tier 1 capital
|
41,976
|
42,943
|
41,722
|
|
|
|||
|
Other Tier 1 capital:
|
|||
|
Preference shares
|
6,151
|
6,171
|
6,203
|
|
Tier 1 notes2
|
512
|
538
|
509
|
|
Reserve Capital Instruments 2
|
2,878
|
2,902
|
2,866
|
|
|
|||
|
Regulatory adjustments and deductions:
|
|||
|
50% of material holdings
|
(474)
|
(475)
|
(241)
|
|
50% of the tax on excess of expected losses over impairment
|
18
|
27
|
176
|
|
Total Tier 1 capital
|
51,061
|
52,106
|
51,235
|
|
|
|||
|
Tier 2 capital:
|
|||
|
Undated subordinated liabilities
|
1,544
|
1,558
|
1,625
|
|
Dated subordinated liabilities
|
13,996
|
14,500
|
14,066
|
|
Non-controlling Tier 2 capital
|
486
|
486
|
547
|
|
Reserves arising on revaluation of property1
|
15
|
19
|
39
|
|
Unrealised gains on available for sale equity1
|
146
|
139
|
110
|
|
Collectively assessed impairment allowances
|
1,970
|
2,024
|
2,002
|
|
|
|||
|
Tier 2 deductions:
|
|||
|
50% of material holdings
|
(474)
|
(475)
|
(241)
|
|
50% excess of expected losses over impairment (gross of tax)
|
(805)
|
(839)
|
(824)
|
|
50% of securitisation positions
|
(728)
|
(759)
|
(997)
|
|
|
|||
|
Total capital regulatory adjustments and deductions:
|
|||
|
Investments that are not material holdings or qualifying holdings
|
(958)
|
(1,084)
|
(1,139)
|
|
Other deductions from total capital
|
(306)
|
(326)
|
(550)
|
|
Total regulatory capital
|
65,947
|
67,349
|
65,873
|
|
|
1 The capital impacts of these items are net of tax.
|
|
|
2 Tier 1 notes and reserve capital instruments are included in subordinated liabilities in the consolidated balance sheet.
|
|
Movement in Core Tier 1 Capital
|
Three months
|
Six months
|
|
ended
|
ended
|
|
|
30.09.13
|
30.06.13
|
|
|
£m
|
£m
|
|
|
Opening Core Tier 1 capital
|
42,943
|
41,722
|
|
Profit for the period
|
727
|
1,083
|
|
Removal of own credit1
|
148
|
(211)
|
|
Dividends paid
|
(476)
|
(893)
|
|
Retained capital generated from earnings
|
399
|
(21)
|
|
Movement in reserves - impact of ordinary shares and share schemes
|
175
|
799
|
|
Movement in currency translation reserves
|
(1,469)
|
511
|
|
Movement in pension reserves
|
(763)
|
(37)
|
|
Other reserves movements
|
(40)
|
12
|
|
Movement in other qualifying reserves
|
(2,097)
|
1,285
|
|
Movement in regulatory adjustments and deductions:
|
||
|
Defined benefit pension adjustment1
|
572
|
(37)
|
|
Goodwill and intangible asset balances1
|
27
|
39
|
|
50% excess of expected losses over impairment1
|
25
|
(164)
|
|
50% of securitisation positions
|
31
|
238
|
|
Other regulatory adjustments
|
76
|
(119)
|
|
Closing Core Tier 1 capital
|
41,976
|
42,943
|
|
·
|
The Core Tier 1 ratio increased to 11.3% (June 2013: 11.1%) mainly as a result of a decrease in risk weighted assets to £371bn (June 2013: £387bn). Core Tier 1 capital decreased to £42.0bn (June 2013: £42.9bn)
|
|
|
- Barclays generated £0.4bn Core Tier 1 capital from earnings excluding movements in own credit, after absorbing the impact of dividends paid. This increase was more than offset by a £1.5bn decrease in capital due to foreign currency movements (including non-controlling interests), primarily due to the strengthening of GBP against EUR, USD and ZAR
|
|
|
1 The capital impacts of these items are net of tax.
|
|
|
|
|
|
|
|
Risk Weighted Assets by Risk Type and Business
|
|||||
|
Credit Risk
|
Counterparty
|
Market Risk
|
Operational
|
Total
|
|
|
Credit Risk
|
Risk
|
RWAs
|
|||
|
Charges
|
||||||||||
|
Add-on
|
||||||||||
|
Non
|
and Non-
|
|||||||||
|
Model
|
Modelled
|
VaR
|
||||||||
|
As at 30.09.2013
|
STD
|
F-IRB
|
A-IRB
|
IMM
|
Method
|
STD
|
- VaR
|
Modelled
|
||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
UK RBB
|
2,890
|
-
|
33,639
|
-
|
-
|
-
|
-
|
-
|
6,680
|
43,209
|
|
Europe RBB
|
4,598
|
-
|
10,107
|
-
|
3
|
-
|
-
|
-
|
2,128
|
16,836
|
|
Africa RBB
|
6,081
|
5,092
|
9,007
|
-
|
3
|
-
|
-
|
-
|
3,965
|
24,148
|
|
Barclaycard
|
17,535
|
-
|
14,610
|
-
|
-
|
-
|
-
|
-
|
6,594
|
38,739
|
|
Investment Bank
|
8,187
|
3,320
|
42,407
|
22,280
|
6,167
|
23,195
|
16,659
|
10,163
|
24,807
|
157,185
|
|
Corporate Banking
|
23,732
|
2,850
|
36,553
|
689
|
3
|
-
|
-
|
-
|
6,717
|
70,544
|
|
Wealth and Investment Management
|
11,627
|
259
|
1,531
|
-
|
317
|
-
|
-
|
-
|
3,261
|
16,995
|
|
Head Office Functions and Other Operations
|
253
|
-
|
3,012
|
-
|
-
|
-
|
-
|
-
|
159
|
3,424
|
|
Total RWAs
|
74,903
|
11,521
|
150,866
|
22,969
|
6,493
|
23,195
|
16,659
|
10,163
|
54,311
|
371,080
|
|
As at 30.06.2013
|
||||||||||
|
UK RBB
|
3,057
|
-
|
33,872
|
-
|
-
|
-
|
-
|
-
|
6,680
|
43,609
|
|
Europe RBB
|
4,944
|
-
|
9,656
|
-
|
5
|
-
|
-
|
-
|
2,128
|
16,733
|
|
Africa RBB
|
6,196
|
5,538
|
9,790
|
-
|
3
|
-
|
-
|
-
|
3,965
|
25,492
|
|
Barclaycard
|
17,761
|
-
|
14,446
|
-
|
-
|
-
|
-
|
-
|
6,594
|
38,801
|
|
Investment Bank
|
8,862
|
3,687
|
48,002
|
24,871
|
6,378
|
22,764
|
18,935
|
10,536
|
24,807
|
168,842
|
|
Corporate Banking
|
25,990
|
2,555
|
37,174
|
684
|
-
|
-
|
-
|
-
|
6,717
|
73,120
|
|
Wealth and Investment Management
|
11,668
|
228
|
1,440
|
-
|
382
|
-
|
-
|
-
|
3,261
|
16,979
|
|
Head Office Functions and Other Operations
|
117
|
411
|
2,965
|
-
|
-
|
-
|
-
|
-
|
161
|
3,654
|
|
Total RWAs
|
78,595
|
12,419
|
157,345
|
25,555
|
6,768
|
22,764
|
18,935
|
10,536
|
54,313
|
387,230
|
|
Movement in RWAs
|
Three months
|
Six months
|
|
ended
|
ended
|
|
|
30.09.13
|
30.06.13
|
|
|
Opening RWAs
|
387.2
|
387.4
|
|
Business activity
|
(8.1)
|
(11.0)
|
|
Foreign Exchange
|
(8.1)
|
7.1
|
|
Change in risk parameters
|
0.5
|
(0.5)
|
|
Methodology and model changes
|
(0.4)
|
4.2
|
|
Closing RWAs
|
371.1
|
387.2
|
|
·
|
During the quarter ended September 2013, RWAs decreased by £16.1bn reflecting:
|
|
-
|
Business activity risk reductions decreased RWAs by £8.1bn, primarily driven by reductions in Exit Quadrant RWAs and sovereign exposures
|
|
-
|
Foreign exchange reduced RWAs by £8.1bn, primarily due to the depreciation of USD, ZAR and EUR against GBP
|
|
-
|
Change in risk parameters increased RWAs by £0.5bn, due to changes in risk profile driven by market conditions
|
|
-
|
Methodology and model changes decreased RWAs by £0.4bn primarily driven by a change in calculation methodology for trading exposures
|
|
Estimated impact of CRD IV - Capital
|
CET1
|
CET1
|
|
Transitional
|
Fully-loaded
|
|
|
30.09.13
|
30.09.13
|
|
|
£bn
|
£bn
|
|
|
Core Tier 1 capital (FSA 2009 definition)
|
42.0
|
42.0
|
|
Risk Weighted Assets (RWA) (current CRD III rules)
|
371.1
|
371.1
|
|
Core Tier 1 ratio (CRD III)
|
11.3%
|
11.3%
|
|
CRD IV impact on Core Tier 1 capital:
|
||
|
Adjustments not impacted by transitional provisions
|
||
|
Conversion from securitisation deductions to RWAs
|
0.7
|
0.7
|
|
Prudential Valuation Adjustment (PVA)
|
(2.0)
|
(2.0)
|
|
Other
|
(0.2)
|
(0.2)
|
|
Adjustments impacted by transitional provisions
|
||
|
Goodwill and intangibles
|
6.0
|
-
|
|
Expected losses over impairment
|
0.4
|
(0.9)
|
|
Deferred tax assets deduction
|
(0.3)
|
(1.4)
|
|
Excess minority interest
|
(0.1)
|
(0.4)
|
|
Debit Valuation Adjustment (DVA)
|
(0.1)
|
(0.3)
|
|
Pensions
|
(0.1)
|
(0.6)
|
|
Gains on available for sale equity and debt
|
-
|
0.6
|
|
Non-significant holdings in Financial Institutions1
|
(0.5)
|
(2.3)
|
|
Mitigation of non-significant holdings in Financial Institutions1
|
0.5
|
2.3
|
|
CET1 capital
|
46.5
|
37.4
|
|
CRD III RWAs
|
371.1
|
371.1
|
|
CRD IV impact to RWAs:
|
||
|
Credit Valuation Adjustment (CVA)
|
27.3
|
27.3
|
|
Securitisation
|
20.9
|
20.9
|
|
Counterparty Credit Risk (including Central Counterparty Clearing)
|
17.1
|
17.1
|
|
Other
|
11.7
|
11.7
|
|
RWA Impact
|
77.0
|
77.0
|
|
CRD IV RWAs
|
448.1
|
448.1
|
|
CET1 ratio
|
10.4%
|
8.4%
|
|
|
1 As at 30 September 2013, net long non-significant holdings in financial entities were £7.3bn (30 June 2013: £9.3bn), which would result in a deduction from CET1 of £2.3bn (30 June 2013: £2.5bn) in the absence of identified management actions to eliminate this deduction. The EBA consultation paper on Own Funds identifies potential changes in the calculation, including the scope of application and the treatment of tranche positions, which are not reflected in these estimates.
|
|
|
|
|
|
|
|
Estimated impact of CRD IV - Leverage
|
||||
|
IFRS
|
Final CRD IV
|
Final CRD IV
|
||
|
Balance sheet
|
text basis
|
text basis
|
||
|
As at 30.09.13
|
As at 30.09.13
|
As at 30.06.13
|
||
|
Leverage exposure
|
£bn
|
£bn
|
£bn
|
|
|
|
||||
|
Derivatives
|
|
|||
|
IFRS derivative financial instruments
|
356
|
356
|
403
|
|
|
Additional netting adjustments for derivatives
|
(287)
|
(324)
|
||
|
Potential Future Exposure on derivatives
|
295
|
308
|
||
|
364
|
387
|
|||
|
Securities Financing Transactions (SFTs)
|
||||
|
IFRS reverse repurchase agreements and other similar secured lending
|
203
|
203
|
223
|
|
|
Remove IFRS reverse repurchase agreements and other similar secured lending
|
(203)
|
(223)
|
||
|
Add leverage exposure measure for SFTs
|
98
|
93
|
||
|
98
|
93
|
|||
|
Other assets and adjustments
|
||||
|
Loans and advances and other assets
|
846
|
846
|
907
|
|
|
Undrawn commitments
|
190
|
190
|
||
|
Regulatory deductions and other adjustments
|
(17)
|
(18)
|
||
|
1,019
|
1,079
|
|||
|
Total assets per IFRS balance sheet
|
1,405
|
|||
|
Fully loaded CRD IV leverage exposure measure
|
1,481
|
1,559
|
||
|
Transitional CRD IV leverage exposure measure
|
1,482
|
1,561
|
||
|
Leverage ratio
|
Leverage ratio
|
|||
|
Final CRD IV
|
Final CRD IV
|
|||
|
Tier 1 Capital
|
text basis
|
text basis
|
||
|
Leverage Ratio
|
As at 30.09.13
|
As at 30.09.13
|
As at 30.06.13
|
|
|
£bn
|
||||
|
Transitional measure1
|
47.4
|
3.2%
|
3.1%
|
|
|
Adjusted fully loaded measure2
|
47.1
|
3.2%
|
3.1%
|
|
|
Fully loaded measure3
|
37.6
|
2.5%
|
2.5%
|
|
|
|
- Estimated fully loaded CRD IV leverage exposure reduced to £1,481bn (30 June 2013: £1,559bn) driven by a reduction in settlement balances in the Investment Bank, decreases in cash and balances at central banks in line with
our plans to optimise the size of the liquidity pool, and a reduction in Potential Future Exposure on derivatives |
|
|
- Barclays estimated fully loaded CRD IV leverage ratio as at 30 September 2013 was approximately 2.5%, or 2.9% after taking into account the rights issue, which completed in October 2013
|
|
|
- The PRA has communicated its expectation for Barclays to meet an adjusted 7% fully loaded CET1 ratio by December 2013 and a 3% leverage ratio by June 2014. The PRA leverage ratio is calculated using CRD IV leverage
exposure and a PRA-adjusted CET1 capital base, which as at 30 June reflected additional deductions from CET1 capital of £4.1bn. Applying this deduction as at 30 September would result in a PRA leverage ratio of 2.2%, or 2.6% after taking into account the rights issue |
|
|
- Applying the Basel 3 2010 text for the calculation of leverage would result in an estimated leverage exposure of £1,555bn, reflecting an increase of £74bn in the SFT exposure calculation. The estimated fully loaded leverage
ratio would be 2.4% on this basis and 2.8% after taking into account the rights issue |
|
|
1 Tier 1 capital is calculated as the transitional CRD IV measure assuming 2013 is the first year of implementation at the request of the PRA. Regulatory deductions are adjusted to reflect the transitional impact on Tier 1
capital. |
|
|
2 Tier 1 capital is calculated as the fully loaded CRD IV measure with all ineligible Tier 1 instruments added back. Regulatory deductions reflect the full end point impact on Tier 1 capital.
|
|
|
3 Tier 1 capital is calculated as the fully loaded CRD IV measure. Regulatory deductions reflect the full end point impact on Tier 1 capital.
|
|
Balance Sheet Leverage
|
||
|
As at
|
As at
|
|
|
30.09.13
|
30.06.13
|
|
|
£m
|
£m
|
|
|
Total assets1
|
1,404,835
|
1,532,733
|
|
Counterparty netting
|
(287,624)
|
(324,303)
|
|
Collateral on derivatives
|
(36,730)
|
(41,044)
|
|
Settlement balances and cash collateral
|
(88,179)
|
(109,196)
|
|
Goodwill and intangible assets
|
(7,790)
|
(7,849)
|
|
Customer assets held under investment contracts2
|
(1,777)
|
(1,838)
|
|
Adjusted total tangible assets
|
982,735
|
1,048,503
|
|
Total qualifying Tier 1 capital
|
51,061
|
52,106
|
|
Adjusted gross leverage
|
19
|
20
|
|
Adjusted gross leverage (excluding liquidity pool)
|
17
|
17
|
|
Ratio of total assets to shareholders' equity
|
24
|
25
|
|
Ratio of total assets to shareholders' equity (excluding liquidity pool)
|
22
|
23
|
|
|
- Adjusted gross leverage was 19x at 30 September 2013 (30 June 2013: 20x) reflecting a 2% decrease in qualifying Tier 1 capital to £51bn and a 6% decrease in adjusted total tangible assets to £983bn
|
|
|
- At month ends during Q3 2013 the ratio moved in a range from 19x to 20x (2013 year to date: 19x to 21x, full year 2012: 19x to 23x) primarily due to fluctuations in collateralised reverse repurchase lending
|
|
|
- Adjusted total tangible assets include cash and balances at central banks of £62bn (30 June 2013: £73bn). Excluding these balances, the balance sheet leverage would be 18x (30 June 2013: 19x). Excluding
the liquidity pool, leverage would be 17x (30 June 2013: 17x) |
|
|
- The ratio of total assets to total shareholders' equity was 24x (30 June 2013: 25x) and during Q3 13 moved within a month end range of 24x to 25x (2013 year to date: 24x to 27x, full year 2012: 25x to 28x) primarily
due tofluctuations in derivative assets and collateralised reverse repurchase lending |
|
|
1 Includes Liquidity Pool £130bn (30 June 2013: £138bn).
|
|
|
2 Comprising financial assets designated at fair value and associated cash balances.
|
|
Retail and Wholesale Loans and Advances to Customers and Banks
|
|||||||
|
As at 30.09.13
|
Gross
L&A
|
Impairment Allowance
|
L&A Net of Impairment
|
Credit
Risk Loans
|
CRLs % of Gross L&A
|
Loan Impairment Charges1
|
Loan Loss Rates
|
|
£m
|
£m
|
£m
|
£m
|
%
|
£m
|
bps
|
|
|
Total retail
|
238,127
|
4,577
|
233,550
|
8,089
|
3.4
|
1,645
|
92
|
|
Wholesale - customers
|
213,009
|
3,068
|
209,941
|
5,959
|
2.8
|
717
|
45
|
|
Wholesale - banks
|
42,045
|
10
|
42,035
|
19
|
-
|
(12)
|
(4)
|
|
Total wholesale
|
255,054
|
3,078
|
251,976
|
5,978
|
2.3
|
705
|
37
|
|
Loans and advances at
|
493,181
|
7,655
|
485,526
|
14,067
|
2.9
|
2,350
|
64
|
|
amortised cost
|
|||||||
|
Traded Loans
|
1,928
|
n/a
|
1,928
|
||||
|
Loans and advances designated at fair value
|
19,818
|
n/a
|
19,818
|
||||
|
Loans and advances held at fair value
|
21,746
|
n/a
|
21,746
|
||||
|
Total loans and advances
|
514,927
|
7,655
|
507,272
|
||||
|
As at 30.06.13
|
|||||||
|
Total retail
|
240,079
|
4,699
|
235,380
|
8,439
|
3.5
|
1,112
|
93
|
|
Wholesale - customers
|
238,457
|
3,170
|
235,287
|
6,192
|
2.6
|
534
|
45
|
|
Wholesale - banks
|
45,881
|
35
|
45,846
|
54
|
0.1
|
(12)
|
(5)
|
|
Total wholesale
|
284,338
|
3,205
|
281,133
|
6,246
|
2.2
|
522
|
37
|
|
Loans and advances at
|
524,417
|
7,904
|
516,513
|
14,685
|
2.8
|
1,634
|
63
|
|
amortised cost
|
|||||||
|
Traded Loans
|
2,340
|
n/a
|
2,340
|
||||
|
Loans and advances designated at fair value
|
20,144
|
n/a
|
20,144
|
||||
|
Loans and advances held at fair value
|
22,484
|
n/a
|
22,484
|
||||
|
Total loans and advances
|
546,901
|
7,904
|
538,997
|
|
|
1 Excluding impairment charges on available for sale investments and reverse repurchase agreements.
|
|
|
|
|
|
|
|
Retail Loans and Advances to Customers and Banks at Amortised Cost
|
|
As at 30.09.13
|
Gross L&A
|
Impairment Allowance
|
L&A Net of Impairment
|
Credit Risk Loans
|
CRLs % of Gross L&A
|
Loan Impairment Charges
|
Loan Loss Rates
|
|
£m
|
£m
|
£m
|
£m
|
%
|
£m
|
bps
|
|
|
UK RBB
|
137,100
|
1,323
|
135,777
|
2,737
|
2.0
|
259
|
25
|
|
Europe RBB
|
39,174
|
661
|
38,513
|
1,800
|
4.6
|
209
|
71
|
|
Africa RBB
|
21,939
|
586
|
21,353
|
1,234
|
5.6
|
226
|
138
|
|
Barclaycard
|
36,588
|
1,951
|
34,637
|
2,232
|
6.1
|
950
|
347
|
|
Corporate Banking1
|
549
|
41
|
508
|
48
|
8.7
|
(6)
|
(146)
|
|
Wealth and Investment Management
|
2,777
|
15
|
2,762
|
38
|
1.4
|
7
|
34
|
|
Total
|
238,127
|
4,577
|
233,550
|
8,089
|
3.4
|
1,645
|
92
|
|
As at 30.06.13
|
|||||||
|
UK RBB
|
137,135
|
1,337
|
135,798
|
2,770
|
2.0
|
178
|
26
|
|
Europe RBB
|
40,661
|
638
|
40,023
|
1,807
|
4.4
|
142
|
70
|
|
Africa RBB
|
22,297
|
656
|
21,641
|
1,469
|
6.6
|
176
|
159
|
|
Barclaycard
|
36,666
|
2,004
|
34,662
|
2,296
|
6.3
|
616
|
339
|
|
Corporate Banking1
|
607
|
48
|
559
|
54
|
8.9
|
(5)
|
(166)
|
|
Wealth and Investment Management
|
2,713
|
16
|
2,697
|
43
|
1.6
|
5
|
37
|
|
Total
|
240,079
|
4,699
|
235,380
|
8,439
|
3.5
|
1,112
|
93
|
|
|
1 Primarily comprises retail portfolios in India and UAE.
|
|
Wholesale Loans and Advances to Customers and Banks at Amortised Cost
|
|||||||
|
As at 30.09.13
|
Gross
L&A
|
Impairment Allowance
|
L&A Net of Impairment
|
Credit
Risk Loans
|
CRLs % of Gross L&A
|
Loan Impairment Charges
|
Loan Loss Rates
|
|
£m
|
£m
|
£m
|
£m
|
%
|
£m
|
bps
|
|
|
Investment Bank1
|
161,033
|
595
|
160,438
|
843
|
0.5
|
202
|
17
|
|
Corporate Banking
|
66,957
|
2,125
|
64,832
|
3,862
|
5.8
|
379
|
76
|
|
- UK
|
51,594
|
398
|
51,196
|
1,260
|
2.4
|
126
|
33
|
|
- Europe
|
6,964
|
1,529
|
5,435
|
2,386
|
34.3
|
246
|
472
|
|
- Rest of the World
|
8,399
|
198
|
8,201
|
216
|
2.6
|
7
|
11
|
|
Wealth and Investment Management
|
20,073
|
189
|
19,884
|
683
|
3.4
|
81
|
54
|
|
Africa RBB
|
4,982
|
157
|
4,825
|
575
|
11.5
|
43
|
115
|
|
Head Office and Other Operations
|
2,009
|
12
|
1,997
|
15
|
0.7
|
-
|
-
|
|
Total
|
255,054
|
3,078
|
251,976
|
5,978
|
2.3
|
705
|
37
|
|
As at 30.06.13
|
|||||||
|
Investment Bank1
|
187,256
|
640
|
186,616
|
835
|
0.4
|
179
|
19
|
|
Corporate Banking
|
68,295
|
2,180
|
66,115
|
3,966
|
5.8
|
265
|
78
|
|
- UK
|
52,007
|
450
|
51,557
|
1,377
|
2.6
|
83
|
32
|
|
- Europe
|
7,636
|
1,543
|
6,093
|
2,416
|
31.6
|
180
|
475
|
|
- Rest of the World
|
8,652
|
187
|
8,465
|
173
|
2.0
|
2
|
5
|
|
Wealth and Investment Management
|
20,386
|
167
|
20,219
|
706
|
3.5
|
44
|
44
|
|
Africa RBB
|
6,767
|
198
|
6,569
|
719
|
10.6
|
35
|
104
|
|
Head Office and Other Operations
|
1,634
|
20
|
1,614
|
20
|
1.2
|
(1)
|
(12)
|
|
Total
|
284,338
|
3,205
|
281,133
|
6,246
|
2.2
|
522
|
37
|
|
|
1 Investment Bank gross loans and advances include cash collateral and settlement balances of £108,769m as at 30 September 2013 and £129,667m as at 30 June 2013. Excluding these balances CRLs as a proportion of gross loans and advances were 0.9% and 1.5% respectively.
|
|
|
- The Group recognises the credit and market risk resulting from the ongoing volatility in the Eurozone and continues to monitor events closely while taking coordinated steps to mitigate the risks associated with the challenging
economic environment |
|
|
- During Q3 13 the Group's net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece reduced by 6% to £53.9bn principally due to a decrease in exposure to retail customers and corporate clients,
which declined by 6% to £45.7bn reflecting reduced lending in Spain, Italy and Portugal |
|
|
- As at 30 September 2013, the local balance sheet funding deficit in Italy was €13.6bn (30 June 2013: €13.6bn) and the deficit in Portugal was €3.9bn (30 June 2013: €4.4bn). The net funding surplus in Spain was €2.3bn (30 June
2013: €1.8bn). Barclays continues to monitor the potential impact of the Eurozone volatility on local balance sheet funding and will consider actions as appropriate to manage the risk |
|
|
Summary of Group Exposures
|
|
|
- The following table shows Barclays exposure to Eurozone countries monitored internally as being higher risk and thus being the subject of particular management focus. The basis of preparation is consistent with that
described in the 2012 Annual Report |
|
|
- The net exposure provides the most appropriate measure of the credit risk to which the Group is exposed. The gross exposure is also presented below, alongside off-balance sheet contingent liabilities and commitments
|
|
Other
|
Net on-
|
Gross on-
|
Contingent
|
||||||
|
Financial
|
Residential
|
retail
|
balance sheet
|
balance sheet
|
liabilities and
|
||||
|
Sovereign
|
institutions
|
Corporate
|
mortgages
|
lending
|
exposure
|
exposure
|
commitments
|
||
|
As at 30.09.13
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
Spain
|
316
|
859
|
3,474
|
13,030
|
2,415
|
20,094
|
28,026
|
3,419
|
|
|
Italy
|
2,495
|
434
|
1,472
|
15,550
|
1,963
|
21,914
|
29,136
|
3,166
|
|
|
Portugal
|
357
|
37
|
1,087
|
3,481
|
1,649
|
6,611
|
6,959
|
2,486
|
|
|
Ireland
|
49
|
3,648
|
1,165
|
105
|
99
|
5,066
|
9,012
|
2,272
|
|
|
Cyprus
|
-
|
-
|
120
|
19
|
32
|
171
|
248
|
43
|
|
|
Greece
|
2
|
3
|
35
|
6
|
13
|
59
|
936
|
3
|
|
|
As at 30.06.13
|
|||||||||
|
Spain
|
292
|
1,028
|
4,976
|
13,546
|
2,436
|
22,278
|
30,345
|
3,245
|
|
|
Italy
|
1,967
|
390
|
1,489
|
16,034
|
2,072
|
21,952
|
30,260
|
3,464
|
|
|
Portugal
|
388
|
30
|
1,357
|
3,595
|
1,720
|
7,090
|
7,680
|
2,536
|
|
|
Ireland
|
26
|
4,194
|
1,144
|
108
|
114
|
5,586
|
9,752
|
1,363
|
|
|
Cyprus
|
-
|
-
|
133
|
45
|
29
|
207
|
301
|
48
|
|
|
Greece
|
2
|
7
|
40
|
6
|
14
|
69
|
1,185
|
3
|
|
·
|
Barclays has exposures to other Eurozone countries as set out below. Total net on-balance sheet exposures to individual countries that are less than £1bn are reported in aggregate under Other
|
|
Other
|
Net on-
|
Gross on-
|
Contingent
|
||||||
|
Financial
|
Residential
|
retail
|
balance sheet
|
balance sheet
|
liabilities and
|
||||
|
Sovereign
|
institutions
|
Corporate
|
mortgages
|
lending
|
exposure
|
exposure
|
commitments
|
||
|
As at 30.09.13
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
France
|
7,200
|
6,235
|
5,124
|
2,415
|
214
|
21,188
|
57,165
|
9,001
|
|
|
Germany
|
1,797
|
4,201
|
7,329
|
25
|
2,063
|
15,415
|
54,743
|
7,284
|
|
|
Netherlands
|
2,259
|
4,346
|
1,758
|
15
|
69
|
8,447
|
24,116
|
2,404
|
|
|
Belgium
|
2,279
|
25
|
201
|
13
|
4
|
2,522
|
8,649
|
910
|
|
|
Luxembourg
|
11
|
636
|
658
|
204
|
67
|
1,576
|
4,649
|
855
|
|
|
Austria
|
1,239
|
259
|
149
|
1
|
4
|
1,652
|
3,257
|
203
|
|
|
Finland
|
904
|
216
|
64
|
3
|
-
|
1,187
|
6,051
|
453
|
|
|
Other
|
132
|
53
|
23
|
6
|
58
|
272
|
504
|
16
|
|
|
As at 30.06.13
|
|||||||||
|
France
|
3,448
|
5,422
|
5,328
|
2,584
|
182
|
16,964
|
56,365
|
8,647
|
|
|
Germany
|
1,985
|
4,760
|
6,621
|
26
|
2,013
|
15,405
|
58,055
|
7,160
|
|
|
Netherlands
|
3,336
|
4,480
|
1,958
|
16
|
70
|
9,860
|
26,092
|
2,286
|
|
|
Belgium
|
2,866
|
17
|
390
|
13
|
4
|
3,290
|
9,480
|
778
|
|
|
Luxembourg
|
39
|
823
|
706
|
208
|
22
|
1,798
|
5,027
|
931
|
|
|
Austria
|
1,092
|
340
|
151
|
1
|
6
|
1,590
|
3,528
|
210
|
|
|
Finland
|
1,079
|
120
|
38
|
3
|
-
|
1,240
|
6,454
|
463
|
|
|
Other
|
130
|
4
|
11
|
5
|
64
|
214
|
466
|
-
|
|
|
|
|
|
|
|
|
Investigations into certain agreements
|
|
Other Information
|
|
|
Results Timetable1
|
Date
|
|
Ex-dividend date
|
6 November 2013
|
|
Dividend Record date
|
8 November 2013
|
|
Scrip reference share price set and made available to shareholders
|
13 November 2013
|
|
Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or Revocation Forms (as applicable)
|
22 November 2013
|
|
Dividend Payment date /first day of dealing in New Shares
|
13 December 2013
|
|
2013 Results Announcement
|
11 February 2014
|
|
For qualifying US and Canadian resident ADR holders, the third interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the third interim dividend on 13 December 2013 to ADR holders on the record at close of business on 8 November 2013.
|
|
|
Nine Months Ended
|
Half Year Ended
|
Nine Months Ended
|
Change3
|
Change3
|
|
|
Exchange Rates2
|
30.09.13
|
30.06.13
|
30.09.12
|
30.06.13
|
30.09.12
|
|
Period end - US$/£
|
1.62
|
1.52
|
1.61
|
7%
|
1%
|
|
Average - US$/£
|
1.54
|
1.54
|
1.58
|
0%
|
(3%)
|
|
3 Month Average - US$/£
|
1.55
|
1.54
|
1.58
|
1%
|
(2%)
|
|
Period end - €/£
|
1.19
|
1.17
|
1.25
|
2%
|
(5%)
|
|
Average - €/£
|
1.17
|
1.18
|
1.23
|
(1%)
|
(5%)
|
|
3 Month Average - €/£
|
1.17
|
1.18
|
1.26
|
(1%)
|
(7%)
|
|
Period end - ZAR/£
|
16.21
|
15.11
|
13.33
|
7%
|
22%
|
|
Average - ZAR/£
|
14.62
|
14.20
|
12.69
|
3%
|
15%
|
|
3 Month Average - ZAR/£
|
15.48
|
14.57
|
13.05
|
6%
|
19%
|
|
Share Price Data
|
30.09.13
|
30.09.12
|
|||
|
Barclays PLC (p)
|
265.50
|
214.85
|
|||
|
Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)
|
147.40
|
138.50
|
|||
|
For Further Information Please Contact
|
|||||
|
Investor Relations
|
Media Relations
|
||||
|
Charlie Rozes +44 (0) 20 7116 5752
|
Giles Croot +44 (0) 20 7116 6132
|
||||
|
More information on Barclays can be found on our website: www.barclays.com
|
|||||
|
|
1 Note that these announcement dates are provisional and subject to change. Any changes to the Scrip Dividend Programme dates will be made available at Barclays.com/dividends
|
|
|
2 The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into Sterling for accounting purposes.
|
|
|
3 The change represents the percentage change in the sterling value of the relevant foreign currency on the basis of the exchange rates disclosed. The change inexchange rates affects the amounts of foreign currency
balances and transactions reported in the interim management statement. |