UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
February
20, 2024
Barclays PLC
(Name
of Registrant)
1 Churchill Place
London E14 5HP
England
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover of Form 20-F or Form 40-F.
Form
20-F x Form 40-F
This
Report on Form 6-K is filed by Barclays PLC.
This
Report comprises:
Information
given to The London Stock Exchange and furnished pursuant
to
General
Instruction B to the General Instructions to Form 6-K.
EXHIBIT
INDEX
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
BARCLAYS
PLC
|
|
(Registrant)
|
Date:
February 20, 2024
|
By: /s/
Garth Wright
-------------------------------
|
|
Garth
Wright
|
|
Assistant
Secretary
|
Barclays PLC
2023 Results Announcement
31 December 2023
Results Announcement
|
Page
|
|
|
Notes
|
1
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|
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Performance Highlights
|
2
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|
|
Group
Finance Director’s Review
|
8
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|
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Results by Business
|
|
|
|
●Barclays
UK
|
10
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|
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●Barclays
International
|
13
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|
|
●Head
Office
|
18
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Quarterly Results Summary
|
19
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Quarterly Results by Business
|
20
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Performance Management
|
|
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●Margins
and Balances
|
26
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|
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●Remuneration
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27
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Risk Management
|
|
|
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●Risk
Management and Principle Risks
|
29
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●Credit
Risk
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30
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●Market
Risk
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50
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|
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●Treasury
and Capital Risk
|
51
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|
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Condensed
Consolidated Financial Statements
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60
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Financial
Statement Notes
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65
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Appendix:
Non-IFRS Performance Measures
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69
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Shareholder
Information
|
78
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BARCLAYS PLC, 1
CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44
(0) 20 7116 1000. COMPANY NO. 48839.
This document contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended).
The terms Barclays and Group refer to Barclays PLC together with
its subsidiaries. Unless otherwise stated, the income statement
analysis compares the twelve months ended 31 December 2023 to the
corresponding twelve months of 2022 and balance sheet analysis as
at 31 December 2023 with comparatives relating to 31 December 2022.
The abbreviations ‘£m’ and ‘£bn’
represent millions and thousands of millions of Pounds Sterling
respectively; the abbreviations ‘$m’ and
‘$bn’ represent millions and thousands of millions of
US Dollars respectively; and the abbreviations
‘€m’ and ‘€bn’ represent
millions and thousands of millions of Euros
respectively.
There are a number of key judgement areas, for example impairment
calculations, which are based on models and which are subject to
ongoing adjustment and modifications. Reported numbers reflect best
estimates and judgements at the given point in time.
Relevant terms that are used in this document but are not
defined under applicable regulatory guidance or International
Financial Reporting Standards (IFRS) are explained in the results
glossary, which can be accessed at home.barclays/investor-relations
The information in this announcement, which was approved by the
Board of Directors on 19 February 2024, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2023, which
contain an unmodified audit report under Section 495 of the
Companies Act 2006 (which does not make any statements under
Section 498 of the Companies Act 2006) will be delivered to the
Registrar of Companies in accordance with Section 441 of the
Companies Act 2006.
These results will be furnished on Form 6-K to the US Securities
and Exchange Commission (SEC) as soon as practicable following its
publication. Once furnished to the SEC, a copy of the Form 6-K will
be available from the SEC’s website at www.sec.gov
Barclays is a frequent issuer in the debt capital markets and
regularly meets with investors via formal roadshows and other ad
hoc meetings. Consistent with its usual practice, Barclays expects
that from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group.
Non-IFRS performance measures
Barclays’ management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements as they enable the reader
to identify a more consistent basis for comparing the
businesses’ performance between financial periods and provide
more detail concerning the elements of performance which the
managers of these businesses are most directly able to influence or
are relevant for an assessment of the Group. They also reflect an
important aspect of the way in which operating targets are defined
and performance is monitored by Barclays’ management.
However, any non-IFRS performance measures in this document are not
a substitute for IFRS measures and readers should consider the IFRS
measures as well. Refer to the appendix on pages 69 to 76 for
definitions and calculations of non-IFRS performance measures
included throughout this document, and reconciliations to the most
directly comparable IFRS measures.
Forward-looking statements
This document contains certain forward-looking statements within
the meaning of Section 21E of the US Securities Exchange Act of
1934, as amended, and Section 27A of the US Securities Act of 1933,
as amended, with respect to the Group. Barclays cautions readers
that no forward-looking statement is a guarantee of future
performance and that actual results or other financial condition or
performance measures could differ materially from those contained
in the forward-looking statements. Forward-looking statements can
be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as ‘may’, ‘will’,
‘seek’, ‘continue’, ‘aim’,
‘anticipate’, ‘target’,
‘projected’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’,
‘goal’, ‘believe’, ‘achieve’ or
other words of similar meaning. Forward-looking statements can be
made in writing but also may be made verbally by directors,
officers and employees of the Group (including during management
presentations) in connection with this document. Examples of
forward-looking statements include, among others, statements or
guidance regarding or relating to the Group’s future
financial position, business strategy, income levels, costs, assets
and liabilities, impairment charges, provisions, capital, leverage
and other regulatory ratios, capital distributions (including
policy on dividends and share buybacks), return on tangible equity,
projected levels of growth in banking and financial markets,
industry trends, any commitments and targets (including
environmental, social and governance (ESG) commitments and
targets), plans and objectives for future operations and other
statements that are not historical or current facts. By their
nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances.
Forward-looking statements speak only as at the date on which they
are made. Forward-looking statements may be affected by a number of
factors, including, without limitation: changes in legislation,
regulations, governmental and regulatory policies, expectations and
actions, voluntary codes of practices and the interpretation
thereof, changes in IFRS and other accounting standards, including
practices with regard to the interpretation and application thereof
and emerging and developing ESG reporting standards; the outcome of
current and future legal proceedings and regulatory investigations;
the Group’s ability along with governments and other
stakeholders to measure, manage and mitigate the impacts of climate
change effectively; environmental, social and geopolitical risks
and incidents, pandemics and similar events beyond the
Group’s control; the impact of competition in the banking and
financial services industry; capital, liquidity, leverage and other
regulatory rules and requirements applicable to past, current and
future periods; UK, US, Eurozone and global macroeconomic and
business conditions, including inflation; volatility in credit and
capital markets; market related risks such as changes in interest
rates and foreign exchange rates; reforms to benchmark interest
rates and indices; higher or lower asset valuations; changes in
credit ratings of any entity within the Group or any securities
issued by it; changes in counterparty risk; changes in consumer
behaviour; the direct and indirect consequences of the conflicts in
Ukraine and the Middle East on European and global macroeconomic
conditions, political stability and financial markets; political
elections; developments in the UK’s relationship with the
European Union (EU); the risk of cyberattacks, information or
security breaches, technology failures or other operational
disruptions and any subsequent impacts on the Group’s
reputation, business or operations; the Group’s ability to
access funding; and the success of acquisitions, disposals and
other strategic transactions. A number of these factors are beyond
the Group’s control. As a result, the Group’s actual
financial position, results, financial and non-financial metrics or
performance measures or its ability to meet commitments and targets
may differ materially from the statements or guidance set forth in
the Group’s forward-looking statements. In setting its
targets and outlook for the period 2024-2026, Barclays has made
certain assumptions about the macro-economic environment,
including, without limitation, inflation, interest and unemployment
rates, the different markets and competitive conditions in which
Barclays operates, and its ability to grow certain businesses and
achieve costs savings and other structural actions. Additional
risks and factors which may impact the Group’s future
financial condition and performance are identified in Barclays
PLC’s filings with the SEC (including, without limitation,
Barclays PLC’s Annual Report on Form 20-F for the financial
year ended 31 December 2023), which are available on the
SEC’s website at www.sec.gov
Subject to Barclays PLC’s obligations under the applicable
laws and regulations of any relevant jurisdiction (including,
without limitation, the UK and the US) in relation to disclosure
and ongoing information, we undertake no obligation to update
publicly or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Performance Highlights
In 2023 Barclays
delivered a return on tangible equity (RoTE) of
10.6% excluding Q423 structural cost
actions1,
with total capital
distributions of £3.0bn2,
equivalent to c.19.4p per share
C. S. Venkatakrishnan, Group Chief Executive,
commented
“In 2023 Barclays delivered solid performance against a mixed
macroeconomic backdrop, meeting its financial targets. Our strong
13.8% Common Equity Tier 1 (CET1) ratio enables us to deliver
increased total capital distributions of £3.0bn to
shareholders, up c.37% on 2022, which includes a further share
buyback of £1.0bn. Our new three-year plan, which we will be
announcing at the Investor Update today, is designed to further
improve Barclays' operational and financial performance, driving
higher returns, and predictable, attractive shareholder
distributions”
|
●Group FY23 RoTE of 10.6% and earnings per share (EPS) of
32.4p, excluding £0.9bn of
Q423 structural cost actions
●Total capital distributions of £3.0bn announced in
relation to 2023, up c.37% on 2022, reflecting a total dividend of
8.0p and total share buybacks of £1.75bn for 2023. This
includes our intention to initiate a further share buyback of up to
£1.0bn
●Group net interest income (NII) of £12.7bn, up 20% year-on-year, with
Barclays UK NII of £6.4bn,
up 9% year-on-year, delivering
a Barclays UK net interest margin (NIM) of 3.13%
●Group cost: income ratio of 63% excluding Q423 structural cost
actions
●Group FY23 loan loss rate (LLR) of 46bps
●CET1 ratio of 13.8% and tangible net asset value (TNAV)
per share of 331p
2023 Key financial metrics:
|
Statutory
|
|
Excluding Q423 structural cost actions
|
|
Income
|
Profit before tax
|
Attributable profit/(loss)
|
LLR
|
TNAV per share
|
CET1 ratio
|
Total capital return
|
|
Cost: income ratio
|
RoTE
|
EPS
|
FY23
|
£25.4bn
|
£6.6bn
|
£4.3bn
|
46bps
|
331p
|
13.8%
|
£3.0bn
|
|
63%
|
10.6%
|
32.4p
|
Q423
|
£5.6bn
|
£0.1bn
|
£(0.1)bn
|
54bps
|
|
71%
|
5.1%
|
4.2p
|
2023 Performance highlights:
●Group statutory RoTE
was 9.0% (2022: 10.4%) with profit before tax of £6.6bn (2022: £7.0bn), including £0.9bn of structural cost actions
in Q423, taking total structural cost actions for 2023 to
£1.0bn
–Group income
was £25.4bn, up
2% year-on-year
–Group total
operating expenses were £16.9bn, an increase of 1% year-on-year
●Excluding the impacts of Q423 structural cost actions
and the Over-issuance of Securities in the prior year3:
–Group RoTE of 10.6% (2022:
11.6%) with profit before tax of £7.5bn (2022:
£7.7bn)
–Group income of £25.4bn,
up 3% year-on-year:
–Barclays UK income increased 5% to £7.6bn,
driven by NII growth from higher rates, including higher structural
hedge income
–Corporate and Investment Bank (CIB) income
decreased 4% to £12.6bn, driven by lower client activity in
both Global Markets and Investment Banking, partially offset by a
strong performance in Corporate driven by Transaction
Banking
–Consumer
Cards and Payments (CC&P) income increased 18% to £5.3bn reflecting higher
balances in US cards and favourability from higher rates and client
balance growth in Private Bank
–Group total operating expenses were
£16.0bn, up 2%
year-on-year. Cost: income
ratio of 63% as the Group delivered positive cost: income jaws of
1%
1
|
The impact of the Q423 structural cost actions was £0.9bn. At
Q323 Results the Group highlighted it was evaluating actions to
reduce structural costs to help drive future returns. Given the
materiality of these actions in Q423, certain 2023 performance
measures included in this document exclude the impact of Q423
structural cost actions. Page 6 includes a reconciliation of FY23
financial results excluding the impact of Q423 structural cost
actions. Total 2023 structural cost actions were £1.0bn (Q323
YTD: £0.1bn).
|
2
|
Includes total dividends and share buybacks announced in relation
to 2023. Total dividend for 2023 of 8.0p per share comprises the
2.7p 2023 half-year dividend and the 5.3p full-year dividend for
2023. Total share buybacks announced in relation to 2023 include
the £750m buyback announced at H123 and a further share
buyback of up to £1.0bn
announced today.
|
3
|
Excluding £0.3bn income gain and
£1.0bn litigation and conduct charge in 2022 from the
Over-issuance of Securities under Barclays Bank PLC's US shelf
registration statements on Form F-3 filed with the SEC in 2018 and
2019. Page 6 includes a reconciliation of financial results
excluding the impact of the Over-issuance of Securities in the
prior year
|
2023 Performance highlights (continued):
●Credit impairment charges were
£1.9bn (2022: £1.2bn) with an LLR of 46bps (2022:
30bps):
–Barclays UK credit impairment charges were
£0.3bn (2022: £0.3bn) with an LLR of 14bps (2022: 13bps),
consistent with low delinquencies in UK cards and a high quality
mortgage lending portfolio
–CC&P credit impairment charges increased to
£1.5bn (2022: £0.8bn) with an LLR of 354bps (2022:
175bps), driven by higher delinquencies in US cards, which was
anticipated and led to higher coverage ratios
●CET1
ratio of 13.8% (2022: 13.9%), with risk weighted assets (RWAs) of £342.7bn
(December 2022: £336.5bn) and TNAV per share of 331p (December
2022: 295p)
Q423 Performance highlights:
●Excluding the impacts of Q423 structural cost
actions1:
–Group RoTE was 5.1% (Q422: 8.9%) with profit before tax of
£1.0bn (Q422: £1.3bn)
–Group income was £5.6bn down 3% year-on-year:
–Barclays UK
income was 9% lower, with NII
broadly stable and net fees, commissions and other income down
41% reflecting one-off items
and the transfer of Wealth Management & Investments (WM&I)
to CC&P during Q223
–CC&P was
6% higher, driven by balance
growth in US cards and the transfer of WM&I, partially offset
by lower Payments income
–CIB income
was 7% lower, reflecting
decline in Global Markets against a record Q4222
–Group total operating expenses were
£4.0bn, broadly stable
year-on-year
●Credit impairment
charges were £0.6bn (Q422: £0.5bn), with an LLR of 54bps (Q422: 49bps)
Impact of £0.9bn structural cost actions in Q423
●To help drive future returns, Barclays has taken
£0.9bn of structural cost
actions in Q423 which are expected to result in gross cost savings
of c.£0.5bn in 2024, with an
expected payback period3
of less than 2
years
●Structural cost actions include initiatives across people,
property and infrastructure, with the allocation by business and
type as follows:
–£0.2bn in Barclays UK, £0.2bn in CIB,
£0.1bn in CC&P and £0.5bn in Head
Office
–£0.3bn related to People, £0.2bn related
to Property and £0.4bn related to
Infrastructure
1
|
Q423 structural cost actions of £0.9bn.
|
2
|
Period covering 2014-2023. Pre 2014 data was not restated following
re-segmentation in 2016.
|
3
|
Payback period is the length of time to recoup the cost from the
structural cost actions.
|
New Operating Divisions
●Subsequent to FY23 reporting, Barclays will be
managed and reported via five focused operating
divisions:
–Barclays
UK
–Barclays UK
Corporate Bank
–Barclays
Private Bank and Wealth Management
–Barclays
Investment Bank
–Barclays US
Consumer Bank
●Barclays segmental reporting will reflect these five
operating divisions, in addition to Head Office, from Q124. Further
detail is provided in the 20 February 2024 Investor
Update
●This resegmentation will provide an enhanced and more
granular disclosure of the performance of each of these operating
divisions, alongside more accountability from an operational and
management standpoint
●Barclays 2021, 2022 and 2023 segmental performance,
including Head Office, has been re-presented to reflect these new operating
divisions. A resegmentation document may be accessed via the
Barclays website at: home.barclays/investor-relations
Revised Group Financial Targets and Outlook:
●Returns:
targeting RoTE of greater than 10% in 2024 and c.10.5% excluding
inorganic activity, with a greater than 12% target in
2026
●Capital
returns: plan to return at least £10bn of capital to
shareholders between 2024 and 2026, through dividends and share
buybacks, with a continued preference for buybacks. Plan to keep
total dividend stable at 2023 level in absolute terms, with
progressive dividend per share growth driven through share count
reduction as a result of increased share buybacks. Dividends will
continue to be paid semi-annually. This multiyear plan is subject
to supervisory and Board approval, anticipated financial
performance and our published CET1 ratio target range of
13-14%
●Income:
targeting Barclays Group NII excluding Barclays Investment Bank and
Head Office of c.£10.7bn, of which Barclays UK NII of
c.£6.1bn, in 20241. Targeting Group
total income of c.£30bn in 2026
●Costs:
targeting Group cost: income ratio of c.63% in 2024. Targeting
total Group operating expenses of c.£17.0bn and a Group cost:
income ratio of high 50s in percentage terms in 2026. This includes
c.£1bn of gross efficiency savings in 2024 and total gross
efficiency savings of c.£2bn by 2026
●Impairment:
continue to expect an LLR of 50-60bps through the
cycle
●Capital:
expect to continue to operate within the CET1 ratio target range of
13-14%
–Targeting
Barclays Investment Bank RWAs of c.50% of Group RWAs in
2026
–Impact of
regulatory change on RWAs in line with prior guidance, expected to
be at lower end of 5–10% of Group RWAs. This includes
c.£16bn RWAs expected in H224 due to Barclays US Consumer Bank
moving to Internal Ratings-Based (IRB) models
1
|
This excludes the impact of Tesco Bank acquisition, which is
expected to generate annualised NII of c.£400m in the first
year post-completion. See Other Matters on page 9 for further details of the
acquisition.
|
Barclays Group results
|
Year ended
|
|
Three months ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Barclays UK
|
7,587
|
7,259
|
5
|
|
1,792
|
1,970
|
(9)
|
Corporate and Investment Bank
|
12,610
|
13,368
|
(6)
|
|
2,390
|
2,576
|
(7)
|
Consumer, Cards and Payments
|
5,308
|
4,499
|
18
|
|
1,364
|
1,286
|
6
|
Barclays International
|
17,918
|
17,867
|
—
|
|
3,754
|
3,862
|
(3)
|
Head Office
|
(127)
|
(170)
|
25
|
|
52
|
(31)
|
|
Total income
|
25,378
|
24,956
|
2
|
|
5,598
|
5,801
|
(3)
|
Operating costs
|
(16,714)
|
(14,957)
|
(12)
|
|
(4,735)
|
(3,748)
|
(26)
|
UK bank levy
|
(180)
|
(176)
|
(2)
|
|
(180)
|
(176)
|
(2)
|
Litigation and conduct
|
(37)
|
(1,597)
|
98
|
|
(5)
|
(79)
|
94
|
Total operating expenses
|
(16,931)
|
(16,730)
|
(1)
|
|
(4,920)
|
(4,003)
|
(23)
|
Other net (expenses)/income
|
(9)
|
6
|
|
|
(16)
|
10
|
|
Profit before impairment
|
8,438
|
8,232
|
3
|
|
662
|
1,808
|
(63)
|
Credit impairment charges
|
(1,881)
|
(1,220)
|
(54)
|
|
(552)
|
(498)
|
(11)
|
Profit before tax
|
6,557
|
7,012
|
(6)
|
|
110
|
1,310
|
(92)
|
Tax (charge)/credit
|
(1,234)
|
(1,039)
|
(19)
|
|
23
|
33
|
(30)
|
Profit after tax
|
5,323
|
5,973
|
(11)
|
|
133
|
1,343
|
(90)
|
Non-controlling interests
|
(64)
|
(45)
|
(42)
|
|
(25)
|
(22)
|
(14)
|
Other equity instrument holders
|
(985)
|
(905)
|
(9)
|
|
(219)
|
(285)
|
23
|
Attributable profit/(loss)
|
4,274
|
5,023
|
(15)
|
|
(111)
|
1,036
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
9.0%
|
10.4%
|
|
|
(0.9)%
|
8.9%
|
|
Average tangible shareholders' equity (£bn)
|
47.4
|
48.3
|
|
|
48.9
|
46.7
|
|
Cost: income ratio
|
67%
|
67%
|
|
|
88%
|
69%
|
|
Loan loss rate (bps)
|
46
|
30
|
|
|
54
|
49
|
|
Basic earnings per share
|
27.7p
|
30.8p
|
|
|
(0.7)p
|
6.5p
|
|
Dividend per share
|
8.0p
|
7.25p
|
|
|
|
|
|
Share buyback announced (£m)
|
1,750
|
1,000
|
|
|
|
|
|
Total payout equivalent per share
|
c.19.4p
|
c.13.4p
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
15,445
|
16,333
|
(5)
|
|
15,092
|
15,828
|
(5)
|
Period end number of shares (m)
|
15,155
|
15,871
|
(5)
|
|
15,155
|
15,871
|
(5)
|
|
As at 31.12.23
|
As at 30.09.23
|
As at 31.12.22
|
Balance sheet and capital management1
|
£bn
|
£bn
|
£bn
|
Loans and advances at amortised cost
|
399.5
|
405.4
|
398.8
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.4%
|
1.4%
|
1.4%
|
Total assets
|
1,477.5
|
1,591.7
|
1,513.7
|
Deposits at amortised cost
|
538.8
|
561.3
|
545.8
|
Tangible net asset value per share
|
331p
|
316p
|
295p
|
Common equity tier 1 ratio
|
13.8%
|
14.0%
|
13.9%
|
Common equity tier 1 capital
|
47.3
|
48.0
|
46.9
|
Risk weighted assets
|
342.7
|
341.9
|
336.5
|
UK leverage ratio
|
5.2%
|
5.0%
|
5.3%
|
UK leverage exposure
|
1,168.3
|
1,202.4
|
1,130.0
|
|
|
|
|
Funding and liquidity
|
|
|
|
Group liquidity pool (£bn)
|
298.1
|
335.0
|
318.0
|
Liquidity
coverage ratio2
|
161%
|
159%
|
156%
|
Net
stable funding ratio3
|
138%
|
138%
|
137%
|
Loan: deposit ratio
|
74%
|
72%
|
73%
|
1
|
Refer to pages 55 to
59 for further information on
how capital, RWAs and leverage are calculated.
|
2
|
The liquidity coverage ratio (LCR) is now shown on an average
basis, based on the average of the last 12 spot month end ratios.
Prior period LCR comparatives have been updated for
consistency.
|
3
|
Represents average of the last four spot quarter end
positions.
|
Reconciliation of financial results
excluding adjusting items1
Year ended
|
31.12.23
|
|
|
|
31.12.22
|
|
|
|
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
7,587
|
—
|
7,587
|
|
7,259
|
—
|
7,259
|
|
5
|
Corporate and Investment Bank
|
12,610
|
—
|
12,610
|
|
13,368
|
292
|
13,076
|
|
(4)
|
Consumer, Cards and Payments
|
5,308
|
—
|
5,308
|
|
4,499
|
—
|
4,499
|
|
18
|
Barclays International
|
17,918
|
—
|
17,918
|
|
17,867
|
292
|
17,575
|
|
2
|
Head Office
|
(127)
|
—
|
(127)
|
|
(170)
|
—
|
(170)
|
|
25
|
Total income
|
25,378
|
—
|
25,378
|
|
24,956
|
292
|
24,664
|
|
3
|
Barclays UK
|
(4,393)
|
(168)
|
(4,225)
|
|
(4,260)
|
—
|
(4,260)
|
|
1
|
Corporate and Investment Bank
|
(8,335)
|
(188)
|
(8,147)
|
|
(7,630)
|
—
|
(7,630)
|
|
(7)
|
Consumer, Cards and Payments
|
(3,243)
|
(118)
|
(3,125)
|
|
(2,731)
|
—
|
(2,731)
|
|
(14)
|
Barclays International
|
(11,578)
|
(306)
|
(11,272)
|
|
(10,361)
|
—
|
(10,361)
|
|
(9)
|
Head Office
|
(743)
|
(453)
|
(290)
|
|
(336)
|
—
|
(336)
|
|
14
|
Total operating costs
|
(16,714)
|
(927)
|
(15,787)
|
|
(14,957)
|
—
|
(14,957)
|
|
(6)
|
UK bank levy
|
(180)
|
—
|
(180)
|
|
(176)
|
—
|
(176)
|
|
(2)
|
Litigation and conduct
|
(37)
|
—
|
(37)
|
|
(1,597)
|
(966)
|
(631)
|
|
94
|
Total operating expenses
|
(16,931)
|
(927)
|
(16,004)
|
|
(16,730)
|
(966)
|
(15,764)
|
|
(2)
|
Other net (expenses)/income
|
(9)
|
—
|
(9)
|
|
6
|
—
|
6
|
|
|
Profit before impairment
|
8,438
|
(927)
|
9,365
|
|
8,232
|
(674)
|
8,906
|
|
5
|
Credit impairment charges
|
(1,881)
|
—
|
(1,881)
|
|
(1,220)
|
—
|
(1,220)
|
|
(54)
|
Profit before tax
|
6,557
|
(927)
|
7,484
|
|
7,012
|
(674)
|
7,686
|
|
(3)
|
Attributable profit
|
4,274
|
(739)
|
5,013
|
|
5,023
|
(552)
|
5,575
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Average tangible shareholders' equity (£bn)
|
47.4
|
|
47.4
|
|
48.3
|
|
48.3
|
|
|
Return on average tangible shareholders' equity
|
9.0%
|
|
10.6%
|
|
10.4%
|
|
11.6%
|
|
|
Cost: income ratio
|
67%
|
|
63%
|
|
67%
|
|
64%
|
|
|
1
|
Adjusting items: Q423 structural cost actions in 2023 and impact of
the Over-issuance of Securities in 2022.
|
Reconciliation of financial results
excluding adjusting items1
Three months ended
|
31.12.23
|
|
31.12.22
|
|
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
1,792
|
—
|
1,792
|
|
1,970
|
—
|
1,970
|
|
(9)
|
Corporate and Investment Bank
|
2,390
|
—
|
2,390
|
|
2,576
|
—
|
2,576
|
|
(7)
|
Consumer, Cards and Payments
|
1,364
|
—
|
1,364
|
|
1,286
|
—
|
1,286
|
|
6
|
Barclays International
|
3,754
|
—
|
3,754
|
|
3,862
|
—
|
3,862
|
|
(3)
|
Head Office
|
52
|
—
|
52
|
|
(31)
|
—
|
(31)
|
|
|
Total income
|
5,598
|
—
|
5,598
|
|
5,801
|
—
|
5,801
|
|
(3)
|
Barclays UK
|
(1,153)
|
(168)
|
(985)
|
|
(1,108)
|
—
|
(1,108)
|
|
11
|
Corporate and Investment Bank
|
(2,134)
|
(188)
|
(1,946)
|
|
(1,796)
|
—
|
(1,796)
|
|
(8)
|
Consumer, Cards and Payments
|
(925)
|
(118)
|
(807)
|
|
(747)
|
—
|
(747)
|
|
(8)
|
Barclays International
|
(3,059)
|
(306)
|
(2,753)
|
|
(2,543)
|
—
|
(2,543)
|
|
(8)
|
Head Office
|
(523)
|
(453)
|
(70)
|
|
(97)
|
—
|
(97)
|
|
28
|
Total operating costs
|
(4,735)
|
(927)
|
(3,808)
|
|
(3,748)
|
—
|
(3,748)
|
|
(2)
|
UK bank levy
|
(180)
|
—
|
(180)
|
|
(176)
|
—
|
(176)
|
|
(2)
|
Litigation and conduct
|
(5)
|
—
|
(5)
|
|
(79)
|
—
|
(79)
|
|
94
|
Total operating expenses
|
(4,920)
|
(927)
|
(3,993)
|
|
(4,003)
|
—
|
(4,003)
|
|
—
|
Other net (expenses)/income
|
(16)
|
—
|
(16)
|
|
10
|
—
|
10
|
|
|
Profit before impairment
|
662
|
(927)
|
1,589
|
|
1,808
|
—
|
1,808
|
|
(12)
|
Credit impairment charges
|
(552)
|
—
|
(552)
|
|
(498)
|
—
|
(498)
|
|
(11)
|
Profit before tax
|
110
|
(927)
|
1,037
|
|
1,310
|
—
|
1,310
|
|
(21)
|
Attributable (loss)/profit
|
(111)
|
(739)
|
628
|
|
1,036
|
—
|
1,036
|
|
(39)
|
|
|
|
|
|
|
|
|
|
|
Average tangible shareholders' equity (£bn)
|
48.9
|
|
48.9
|
|
46.7
|
|
46.7
|
|
|
Return on average tangible shareholders' equity
|
(0.9)%
|
|
5.1%
|
|
8.9%
|
|
8.9%
|
|
|
Cost: income ratio
|
88%
|
|
71%
|
|
69%
|
|
69%
|
|
|
1
|
Adjusting items: Q423 structural cost actions in 2023 and impact of
the Over-issuance of Securities in 2022
|
Group Finance Director's Review
2023 Group performance
●Barclays delivered a profit
before tax of £6,557m (2022: £7,012m), RoTE of 9.0%
(2022: 10.4%) and EPS of 27.7p (2022: 30.8p)
●Group
income increased 2% to £25,378m primarily driven by the net benefit from the
higher interest rate environment, including continued structural
hedge income, and higher balances in US cards, partially offset by
the non-repeat of the prior year income from hedging arrangements
related to the Over-issuance of Securities and lower income in
Global Markets and Investment Banking
●Group
total operating expenses increased to £16,931m (2022:
£16,730m)
–Group operating
expenses excluding litigation and conduct charges increased to
£16,894m (2022: £15,133m) driven by:
–£927m of structural cost actions
in Q423 supporting the Group’s
structural transformation and updated strategic priorities,
bringing total structural cost actions for FY23 to £1,046m
(2022: £151m)
–the impact of business growth and the Kensington
Mortgage Company (KMC) acquisition in Barclays UK, as well as
investments in resilience and controls
–the impact of inflation on the Group was more than
offset by efficiency savings
–Litigation and conduct charges decreased to
£37m (2022: £1,597m). Prior year charges included
£966m of costs related to the Over-issuance of Securities,
£282m of customer remediation costs relating to legacy loan
portfolios in CC&P and £165m related to the Devices
Settlements1
●Credit impairment charges were
£1,881m (2022: £1,220m), driven by higher delinquencies in US cards, which
was anticipated and led to higher coverage ratios. Total coverage
ratio remains strong at 1.4% (December 2022:
1.4%)
●The
effective tax rate (ETR) was 18.8% (2022: 14.8%).
The 2023
ETR includes tax relief on payments made under Additional Tier 1
(AT1) instruments and on holdings of inflation-linked government
bonds
●Attributable profit was
£4,274m (2022: £5,023m)
●Total
assets decreased to £1,477.5bn (December 2022:
£1,513.7bn) reflecting a
decrease in derivatives driven by lower market volatility and a
decrease in the forward interest rates, and a reduction in the
liquidity pool primarily driven by lower customer deposits in
Barclays UK reflecting broader market trends. This was partially
offset by an increase in trading securities and client balances as
we facilitate client demand in Global Markets
●TNAV
per share increased to 331p (December 2022: 295p)
including: EPS of 27.7p, positive cash
flow hedge reserve movements of 22p, and 8p from the reduction in
share count following share buybacks of £1.25bn completed in
2023. This was partially offset by an 8p reduction from dividends
paid during 2023 and net negative other reserve
movements
Group capital and leverage
●The CET1 ratio decreased to 13.8% (December 2022: 13.9%) as
RWAs increased by £6.2bn to £342.7bn partially offset by
an increase in CET1 capital of £0.4bn to
£47.3bn:
–c.125bps increase from 2023 attributable profit,
including the c.25bps negative impact of structural cost actions,
of which c.10bps are offset in other capital
movements
–c.70bps decrease driven by returns to shareholders
including the 8p per share total dividend and £1.25bn of share
buybacks announced with FY22 and H123 results
–c.10bps decrease from other capital movements,
including the impact of regulatory change on 1 January 2023
relating to IFRS 9 transitional relief, the impact of the KMC
acquisition, and movements in other regulatory capital
deductions
–c.50bps decrease as a result of a £13.2bn
increase in RWAs excluding the impact of foreign exchange
movements, primarily driven by higher CIB and CC&P
RWAs
–An £8.2bn decrease in RWAs as a result of
foreign exchange movements was offset by a £1.1bn decrease in
CET1 capital due to a decrease in the currency translation
reserve
●The UK leverage ratio decreased to 5.2% (December 2022:
5.3%) primarily due to a £38.3bn increase in leverage exposure
to £1,168.3bn, largely driven by an increase in trading
portfolio assets within Global Markets
1
|
Refers to the settlements with the SEC and Commodity Futures
Trading Commission (CFTC) in connection with their investigations
of the use of unauthorised devices for business
communications.
|
Group funding and liquidity
●The liquidity metrics remain well above regulatory
requirements, underpinned by well-diversified sources of funding, a
stable global deposit franchise and a highly liquid balance
sheet
●The liquidity pool was £298.1bn (December 2022:
£318.0bn). The decrease in the liquidity pool was driven by a
reduction in wholesale funding, a slight reduction in overall
deposits, with a decrease in Barclays UK deposits being largely
offset by growth in Corporate deposits, and changes in business
funding consumption
●The average1
Liquidity Coverage Ratio (LCR)
increased to 161% (December 2022: 156%), equivalent to a surplus of
£117.7bn (December 2022: £114.4bn)
●Total deposits remained largely stable at £538.8bn
(December 2022: £545.8bn)
●The average2
Net Stable Funding Ratio (NSFR) was
138% (December 2022: 137%), which represents a £167.1bn
(December 2022: £155.6bn) surplus above the 100% regulatory
requirement
●Wholesale funding outstanding, excluding repurchase
agreements, was £176.8bn (December 2022:
£184.0bn)
●The Group issued £14.1bn equivalent of minimum
requirement for own funds and eligible liabilities (MREL)
instruments from Barclays PLC (the Parent company) during 2023. The
Group has a strong MREL position with a ratio of 33.6%, which is in
excess of the regulatory requirement of 30.1% plus a confidential,
institution specific, Prudential Regulation Authority (PRA)
buffer
Other matters
●KMC
acquisition: on 1 March 2023, Barclays completed the
acquisition of UK specialist mortgage lender KMC, including a
portfolio of mortgages totalling £2.2bn with an RWA impact of
£0.8bn
●Combination of the
Private Bank and Barclays UK Wealth business: on 1 May 2023,
WM&I was transferred from Barclays UK to CC&P, creating a
combined Private Bank and Wealth Management business. The
combination seeks to improve customer and client experience and
create business synergies:
–The business
transferred includes
c.£28bn of invested assets, generating annualised income of
c.£0.2bn
●Purchase of Tesco
Bank: Barclays announced on 9 February 2024 that Barclays
Bank UK PLC has entered into an agreement with Tesco Personal
Finance plc (operating using the trading name “Tesco
Bank”) to acquire its retail banking business, which includes
credit cards, unsecured personal loans, deposits and the operating
infrastructure. Additionally, upon completion, Barclays Bank UK PLC
will enter into a long-term, exclusive strategic partnership with
Tesco Stores Limited for an initial period of 10 years to market
and distribute credit cards, unsecured personal loans and deposits
using the Tesco brand, as well as explore other opportunities to
offer financial services to Tesco customers. The transaction
involves the acquisition of approximately £8.3bn of unsecured
lending balances, including approximately £4.2bn of gross
credit card receivables and £4.1bn of gross unsecured personal
loans, together with approximately £6.7bn in customer
deposits. The acquisition is expected to reduce Barclays' CET1
ratio by c.30bps on completion, which is expected to occur in H224,
subject to court sanction and regulatory approvals
●Sale of German
consumer finance business: Barclays is currently engaged in
a process to sell its German consumer finance business (comprising
credit cards, unsecured personal loans and deposits), currently
included within CC&P, as part of our ambition to simplify
Barclays and support our focus on growing our key businesses. Any
sale is expected to complete in 2024 and would be expected to be
accretive to Barclays' CET1 ratio
●Barclays Payments
business: going forward, Barclays will separate its issuing
and merchant acquiring Payments businesses, moving the issuing
business to the UK Corporate Bank and the merchant acquiring
business to Head Office. Barclays has a UK market leading position
in merchant acquiring, and continued investment into our
propositions, particularly for Small and Medium Sized Enterprise
(SME) clients, and leveraging greater scale are important. Barclays
is considering various options to achieve this and has commenced a
review of strategic partnership opportunities for the business. In
connection with this, related goodwill and intangible assets of
c.£0.3bn have been written down as structural cost actions,
predominantly within Head Office
●Disposal of Italian
retail mortgages: Barclays is in discussions with respect to
the disposal of its Italian retail mortgage book currently in Head
Office. Should the disposal occur, it would be expected to generate
a loss on sale but to be broadly neutral to Barclays’ CET1
ratio as a result of a reduction in RWAs
●US credit card model
migration to IRB: Barclays expects to migrate US credit card
models from standardised to IRB in H224. This is a result of the
PRA objective requiring banks using IRB modelling to apply it to at
least 85% of their credit risk RWAs. This is expected to result in
an increase in RWAs of c.£16bn in H224. Outside of US cards,
Barclays is not expecting any further material impact from model
migrations of current portfolios and has a number of planned
mitigating actions
●FCA motor finance
review: in January 2024, the UK Financial Conduct Authority
(FCA) announced that it was appointing a skilled person to
undertake a review of the historical use of discretionary
commission arrangements and sales in the motor finance market
across several firms. The FCA plans to set out next steps on this
matter by the end of September 2024
Anna Cross, Group Finance Director
1
|
Represents average of the last 12 spot month end
ratios.
|
2
|
Represents average of the last four spot quarter end
ratios.
|
Results by Business
Barclays UK
|
Year ended
|
|
Three months ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
6,431
|
5,893
|
9
|
|
1,575
|
1,600
|
(2)
|
Net fee, commission and other income
|
1,156
|
1,366
|
(15)
|
|
217
|
370
|
(41)
|
Total income
|
7,587
|
7,259
|
5
|
|
1,792
|
1,970
|
(9)
|
Operating costs
|
(4,393)
|
(4,260)
|
(3)
|
|
(1,153)
|
(1,108)
|
(4)
|
UK bank levy
|
(30)
|
(26)
|
(15)
|
|
(30)
|
(26)
|
(15)
|
Litigation and conduct
|
8
|
(41)
|
|
|
(4)
|
(13)
|
69
|
Total operating expenses
|
(4,415)
|
(4,327)
|
(2)
|
|
(1,187)
|
(1,147)
|
(3)
|
Other net income
|
—
|
—
|
|
|
—
|
1
|
|
Profit before impairment
|
3,172
|
2,932
|
8
|
|
605
|
824
|
(27)
|
Credit impairment charges
|
(304)
|
(286)
|
(6)
|
|
(37)
|
(157)
|
76
|
Profit before tax
|
2,868
|
2,646
|
8
|
|
568
|
667
|
(15)
|
Attributable profit
|
1,962
|
1,877
|
5
|
|
382
|
474
|
(19)
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
19.2%
|
18.7%
|
|
|
14.9%
|
18.7%
|
|
Average allocated tangible equity (£bn)
|
10.2
|
10.0
|
|
|
10.2
|
10.2
|
|
Cost: income ratio
|
58%
|
60%
|
|
|
66%
|
58%
|
|
Loan loss rate (bps)
|
14
|
13
|
|
|
7
|
27
|
|
Net interest margin
|
3.13%
|
2.86%
|
|
|
3.07%
|
3.10%
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
UK mortgage balances (£bn)
|
160.9
|
162.2
|
|
|
|
|
|
Mortgage gross lending flow (£bn)
|
22.7
|
30.3
|
|
|
|
|
|
Average
loan to value of mortgage portfolio1
|
54%
|
50%
|
|
|
|
|
|
Average
loan to value of new mortgage lending1
|
63%
|
68%
|
|
|
|
|
|
Number of branches
|
306
|
481
|
|
|
|
|
|
Mobile banking active customers (m)
|
11.0
|
10.5
|
|
|
|
|
|
30 day arrears rate - Barclaycard Consumer UK
|
0.9%
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
202.8
|
205.1
|
|
|
|
|
|
Total assets
|
293.1
|
313.2
|
|
|
|
|
|
Customer deposits at amortised cost
|
241.1
|
258.0
|
|
|
|
|
|
Loan: deposit ratio
|
92%
|
87%
|
|
|
|
|
|
Risk weighted assets
|
73.5
|
73.1
|
|
|
|
|
|
Period end allocated tangible equity
|
10.2
|
10.1
|
|
|
|
|
|
1
|
Average loan to value (LTV) of mortgages is balance weighted and
reflects both residential and buy-to-let (BTL) mortgage portfolios
within the Home Loans portfolio.
|
Analysis of Barclays UK
|
Year ended
|
|
Three months ended
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Personal Banking
|
4,729
|
4,540
|
4
|
|
1,067
|
1,229
|
(13)
|
Barclaycard Consumer UK
|
964
|
1,093
|
(12)
|
|
242
|
269
|
(10)
|
Business Banking
|
1,894
|
1,626
|
16
|
|
483
|
472
|
2
|
Total income
|
7,587
|
7,259
|
5
|
|
1,792
|
1,970
|
(9)
|
|
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
|
|
|
Personal Banking
|
(170)
|
(167)
|
(2)
|
|
35
|
(120)
|
|
Barclaycard Consumer UK
|
(162)
|
30
|
|
|
(73)
|
(12)
|
|
Business Banking
|
28
|
(149)
|
|
|
1
|
(25)
|
|
Total credit impairment charges
|
(304)
|
(286)
|
(6)
|
|
(37)
|
(157)
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
|
|
|
|
Personal Banking
|
170.1
|
169.7
|
|
|
|
|
|
Barclaycard Consumer UK
|
9.7
|
9.2
|
|
|
|
|
|
Business Banking
|
23.0
|
26.2
|
|
|
|
|
|
Total loans and advances to customers at amortised
cost
|
202.8
|
205.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
Personal Banking
|
185.4
|
195.6
|
|
|
|
|
|
Barclaycard Consumer UK
|
—
|
—
|
|
|
|
|
|
Business Banking
|
55.7
|
62.4
|
|
|
|
|
|
Total customer deposits at amortised cost
|
241.1
|
258.0
|
|
|
|
|
|
Barclays UK delivered a RoTE of 19.2% (20.4% excluding Q423 structural cost actions)
supported by the higher interest rate
environment and the continued investment in our transformation into
a next-generation, digitised consumer bank.
2023 compared to 2022
Income statement
●Profit before tax increased 8%
to £2,868m with a RoTE of 19.2% (2022:
18.7%)
●Total
income increased 5% to £7,587m. NII increased 9% to £6,431m with a NIM of
3.13% (2022: 2.86%), as higher interest rates and associated
structural hedge benefit outweighed mortgage margin pressure and
adverse deposit dynamics reflecting wider market trends. Net fee,
commission and other income decreased 15% to £1,156m including
the impact of the transfer of WM&I to
CC&P
–Personal Banking income increased 4% to
£4,729m, driven by higher interest rates, partially offset by
mortgage margin compression and movements in deposit volumes and
mix resulting from cost of living pressures and customers searching
for yield
–Barclaycard Consumer UK income decreased 12% to
£964m as higher customer spend volumes were more than offset
by lower interest earning lending balances following repayments and
ongoing prudent risk management
–Business Banking income increased 16% to
£1,894m driven by higher interest rates, partially offset by
lower government scheme lending as repayments continue and lower
deposit volumes
●Total
operating expenses increased 2% to £4,415m,
including £168m impact from Q423 structural cost
actions. Excluding the impact of Q423 structural cost actions,
operating expenses decreased 2%, driven by the transfer of WM&I
to CC&P partially offset by the impact of inflation and the
acquisition of KMC. Ongoing efficiency savings continue to be
reinvested, including in our transformation programme to support
sustainable improvement to the cost: income ratio over the longer
term
●Credit impairment charges
increased to £304m (2022: £286m), consistent with low delinquencies in UK cards
and a high quality mortgage lending portfolio. UK cards 30 and 90
day arrears remained low at 0.9% (Q422: 0.9%) and 0.2% (Q422: 0.2%)
respectively. The UK cards total coverage ratio was 6.8% (December
2022: 7.6%)
Balance sheet
●Loans
and advances to customers at amortised cost decreased by 1% to
£202.8bn (December 2022: £205.1bn), primarily reflecting continued repayment of
government scheme lending in Business Banking, subdued mortgage
lending amid lower market demand, partially offset by the
acquisition of KMC
●Customer deposits at amortised
cost decreased 7% to £241.1bn (December 2022:
£258.0bn). Primarily
driven by reduced current account balances in Personal and Business
Banking, reflecting broader market trends. The loan: deposit ratio
increased to 92% (December 2022: 87%)
●RWAs
increased to £73.5bn (December 2022: £73.1bn),
primarily due to the acquisition of
KMC, broadly offset by reduction across lending
portfolios
Barclays International
|
Year ended
|
|
Three months ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
6,197
|
4,927
|
26
|
|
1,458
|
1,465
|
—
|
Net trading income
|
5,878
|
7,709
|
(24)
|
|
720
|
1,169
|
(38)
|
Net fee, commission and other income
|
5,843
|
5,231
|
12
|
|
1,576
|
1,228
|
28
|
Total income
|
17,918
|
17,867
|
—
|
|
3,754
|
3,862
|
(3)
|
Operating costs
|
(11,578)
|
(10,361)
|
(12)
|
|
(3,059)
|
(2,543)
|
(20)
|
UK bank levy
|
(136)
|
(133)
|
(2)
|
|
(136)
|
(133)
|
(2)
|
Litigation and conduct
|
(47)
|
(1,503)
|
97
|
|
(7)
|
(67)
|
90
|
Total operating expenses
|
(11,761)
|
(11,997)
|
2
|
|
(3,202)
|
(2,743)
|
(17)
|
Other net (expenses)/income
|
(2)
|
28
|
|
|
(14)
|
5
|
|
Profit before impairment
|
6,155
|
5,898
|
4
|
|
538
|
1,124
|
(52)
|
Credit impairment charges
|
(1,548)
|
(933)
|
(66)
|
|
(511)
|
(328)
|
(56)
|
Profit before tax
|
4,607
|
4,965
|
(7)
|
|
27
|
796
|
(97)
|
Attributable profit/(loss)
|
3,025
|
3,844
|
(21)
|
|
(124)
|
625
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
8.2%
|
10.2%
|
|
|
(1.3)%
|
6.4%
|
|
Average allocated tangible equity (£bn)
|
37.0
|
37.6
|
|
|
37.1
|
38.9
|
|
Cost: income ratio
|
66%
|
67%
|
|
|
85%
|
71%
|
|
Loan loss rate (bps)
|
87
|
54
|
|
|
114
|
75
|
|
Net interest margin
|
5.78%
|
5.02%
|
|
|
5.43%
|
5.71%
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
126.8
|
133.7
|
|
|
|
|
|
Loans and advances to banks at amortised cost
|
8.4
|
8.7
|
|
|
|
|
|
Debt securities at amortised cost
|
39.0
|
27.2
|
|
|
|
|
|
Loans and advances at amortised cost
|
174.2
|
169.6
|
|
|
|
|
|
Trading portfolio assets
|
174.6
|
133.8
|
|
|
|
|
|
Derivative financial instrument assets
|
255.2
|
301.7
|
|
|
|
|
|
Financial assets at fair value through the income
statement
|
203.7
|
210.5
|
|
|
|
|
|
Cash collateral and settlement balances
|
103.6
|
107.7
|
|
|
|
|
|
Other assets
|
254.8
|
258.0
|
|
|
|
|
|
Total assets
|
1,166.1
|
1,181.3
|
|
|
|
|
|
Deposits at amortised cost
|
297.7
|
287.6
|
|
|
|
|
|
Derivative financial instrument liabilities
|
249.8
|
288.9
|
|
|
|
|
|
Loan: deposit ratio
|
58%
|
59%
|
|
|
|
|
|
Risk weighted assets
|
259.1
|
254.8
|
|
|
|
|
|
Period end allocated tangible equity
|
37.6
|
36.8
|
|
|
|
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
|
Three months ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
2,551
|
1,949
|
31
|
|
530
|
548
|
(3)
|
Net trading income
|
6,056
|
7,733
|
(22)
|
|
763
|
1,201
|
(36)
|
Net fee, commission and other income
|
4,003
|
3,686
|
9
|
|
1,097
|
827
|
33
|
Total income
|
12,610
|
13,368
|
(6)
|
|
2,390
|
2,576
|
(7)
|
Operating costs
|
(8,335)
|
(7,630)
|
(9)
|
|
(2,134)
|
(1,796)
|
(19)
|
UK bank levy
|
(129)
|
(126)
|
(2)
|
|
(129)
|
(126)
|
(2)
|
Litigation and conduct
|
6
|
(1,189)
|
|
|
(3)
|
(55)
|
95
|
Total operating expenses
|
(8,458)
|
(8,945)
|
5
|
|
(2,266)
|
(1,977)
|
(15)
|
Other net (expenses)/income
|
(3)
|
2
|
|
|
(6)
|
2
|
|
Profit before impairment
|
4,149
|
4,425
|
(6)
|
|
118
|
601
|
(80)
|
Credit impairment charges
|
(23)
|
(119)
|
81
|
|
(23)
|
(41)
|
44
|
Profit before tax
|
4,126
|
4,306
|
(4)
|
|
95
|
560
|
(83)
|
Attributable profit/(loss)
|
2,667
|
3,364
|
(21)
|
|
(61)
|
454
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
8.4%
|
10.2%
|
|
|
(0.8)%
|
5.4%
|
|
Average allocated tangible equity (£bn)
|
31.7
|
32.8
|
|
|
31.6
|
33.7
|
|
Cost: income ratio
|
67%
|
67%
|
|
|
95%
|
77%
|
|
Loan loss rate (bps)
|
2
|
9
|
|
|
7
|
13
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
87.8
|
90.5
|
|
|
|
|
|
Loans and advances to banks at amortised cost
|
7.4
|
8.1
|
|
|
|
|
|
Debt securities at amortised cost
|
38.9
|
27.2
|
|
|
|
|
|
Loans and advances at amortised cost
|
134.1
|
125.8
|
|
|
|
|
|
Trading portfolio assets
|
174.5
|
133.7
|
|
|
|
|
|
Derivative financial instrument assets
|
255.1
|
301.6
|
|
|
|
|
|
Financial assets at fair value through the income
statement
|
203.6
|
210.5
|
|
|
|
|
|
Cash collateral and settlement balances
|
102.9
|
106.9
|
|
|
|
|
|
Other assets
|
205.4
|
222.6
|
|
|
|
|
|
Total assets
|
1,075.6
|
1,101.1
|
|
|
|
|
|
Deposits at amortised cost
|
217.7
|
205.8
|
|
|
|
|
|
Derivative financial instrument liabilities
|
249.7
|
288.9
|
|
|
|
|
|
Risk weighted assets
|
216.8
|
215.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
FICC
|
4,845
|
5,695
|
(15)
|
|
724
|
976
|
(26)
|
Equities
|
2,373
|
3,149
|
(25)
|
|
431
|
440
|
(2)
|
Global Markets
|
7,218
|
8,844
|
(18)
|
|
1,155
|
1,416
|
(18)
|
Advisory
|
593
|
768
|
(23)
|
|
171
|
197
|
(13)
|
Equity capital markets
|
219
|
166
|
32
|
|
38
|
40
|
(5)
|
Debt capital markets
|
1,148
|
1,281
|
(10)
|
|
301
|
243
|
24
|
Investment Banking fees
|
1,960
|
2,215
|
(12)
|
|
510
|
480
|
6
|
Corporate lending
|
475
|
(231)
|
|
|
40
|
(128)
|
|
Transaction banking
|
2,957
|
2,540
|
16
|
|
685
|
808
|
(15)
|
Corporate
|
3,432
|
2,309
|
49
|
|
725
|
680
|
7
|
Total income
|
12,610
|
13,368
|
(6)
|
|
2,390
|
2,576
|
(7)
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Year ended
|
|
Three months ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
3,646
|
2,979
|
22
|
|
928
|
918
|
1
|
Net fee, commission, trading and other income
|
1,662
|
1,520
|
9
|
|
436
|
368
|
18
|
Total income
|
5,308
|
4,499
|
18
|
|
1,364
|
1,286
|
6
|
Operating costs
|
(3,243)
|
(2,731)
|
(19)
|
|
(925)
|
(747)
|
(24)
|
UK bank levy
|
(7)
|
(7)
|
—
|
|
(7)
|
(7)
|
—
|
Litigation and conduct
|
(53)
|
(314)
|
83
|
|
(4)
|
(12)
|
67
|
Total operating expenses
|
(3,303)
|
(3,052)
|
(8)
|
|
(936)
|
(766)
|
(22)
|
Other net income/(expenses)
|
1
|
26
|
(96)
|
|
(8)
|
3
|
|
Profit before impairment
|
2,006
|
1,473
|
36
|
|
420
|
523
|
(20)
|
Credit impairment charges
|
(1,525)
|
(814)
|
(87)
|
|
(488)
|
(287)
|
(70)
|
Profit before tax
|
481
|
659
|
(27)
|
|
(68)
|
236
|
|
Attributable profit/(loss)
|
358
|
480
|
(25)
|
|
(63)
|
171
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
6.7%
|
10.0%
|
|
|
(4.5)%
|
13.0%
|
|
Average allocated tangible equity (£bn)
|
5.3
|
4.8
|
|
|
5.5
|
5.2
|
|
Cost: income ratio
|
62%
|
68%
|
|
|
69%
|
60%
|
|
Loan loss rate (bps)
|
354
|
175
|
|
|
449
|
245
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
US cards 30 day arrears rate
|
2.9%
|
2.2%
|
|
|
|
|
|
US cards customer FICO score distribution
|
|
|
|
|
|
|
|
<660
|
12%
|
11%
|
|
|
|
|
|
>660
|
88%
|
89%
|
|
|
|
|
|
Total number of payments clients
|
402k
|
395k
|
|
|
|
|
|
Value
of payments processed (£bn)1
|
324
|
307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
39.0
|
43.2
|
|
|
|
|
|
Total assets
|
90.5
|
80.2
|
|
|
|
|
|
Deposits at amortised cost
|
80.0
|
81.8
|
|
|
|
|
|
Risk weighted assets
|
42.3
|
38.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
International Cards and Consumer Bank
|
3,569
|
2,913
|
23
|
|
944
|
860
|
10
|
Private Bank
|
1,190
|
1,014
|
17
|
|
306
|
285
|
7
|
Payments
|
549
|
572
|
(4)
|
|
114
|
141
|
(19)
|
Total income
|
5,308
|
4,499
|
18
|
|
1,364
|
1,286
|
6
|
1
|
Includes £311bn (2022: £296bn) of merchant acquiring
payments.
|
Barclays International delivered a RoTE of 8.2% (8.8% excluding Q423 structural cost actions
of £306m) despite the
reduced banking industry fee pool and lower client activity in
Global Markets. Excluding Q423 structural cost actions, CIB
delivered a RoTE of 8.9%,
reflecting the benefits of income diversification and investment in
sustainable growth, and CC&P delivered a RoTE of 8.6%, reflecting the impact of higher
impairment charges, partially offset by balance growth and
increased income from the continued investment in the business.
Barclays International has a diverse income profile across
businesses and geographies including a significant presence in the
US.
2023 compared to 2022
Income statement
●Barclays International RoTE was
8.2% (2022: 10.2%) with a profit before tax of £4,607m (2022:
£4,965m) including £306m (CIB: £188m, CC&P:
£118m) of Q423 structural cost actions. CIB delivered a RoTE
of 8.4% (2022: 10.2%) and CC&P 6.7% (2022:
10.0%)
–Total income was broadly flat at £17,918m,
prior year included a £292m income impact from hedging
arrangements related to the Over-issuance of
securities
–Total operating expenses decreased 2% to
£11,761m including £306m of structural cost actions in
Q423. Prior year included £966m of litigation and conduct
charges relating to the Over-issuance of
securities
●Excluding the impact of Q423
structural cost actions and the Over-issuance of Securities in the
prior year1:
–Total income increased to £17,918m (2022:
17,575m)
–CIB income decreased 4% to £12,610m (2022:
£13,076m)
–Global Markets income decreased 16% to
£7,218m against a record prior year
comparative2.
FICC income decreased 15% to £4,845m, reflecting lower market
volatility and client activity. Equities income decreased 17%
to £2,373m, driven by a
decline in derivatives income reflecting less volatile equity
market conditions.
–Investment Banking fees decreased 12% to
£1,960m due to the reduced fee pool across the
industry3.
Advisory decreased 23% and Debt capital markets decreased 10%,
while Equity capital markets increased 32%
–Within Corporate, Transaction banking income
increased 16% to £2,957m driven by improved deposit margins in
the higher interest rate environment with stable deposit balances.
Corporate lending income increased to £475m (2022: £231m
loss) mainly driven by lower costs of hedging and lower fair value
losses on leverage finance lending net of mark to market gains on
related hedges
–CC&P income increased 18% to
£5,308m
–International Cards and Consumer Bank income
increased 23% to £3,569m reflecting higher cards balances and
improved margins, including the Gap Inc. portfolio acquisition in
Q222
–Private Bank income increased 17% to £1,190m,
due to the transfer of WM&I from Barclays UK, client balance
growth and improved deposits margin in the higher rate
environment
–Payments income decreased 4% to £549m driven
by margin compression
–Total operating expenses increased 4% to
£11,455m
–CIB total operating expenses increased
4% to £8,270m, reflecting
investment in talent and technology, and the impact of inflation,
partially offset by the non-repeat of prior year litigation and
conduct charges mainly relating to Device
Settlements4 and
efficiency savings
–CC&P total operating expenses increased
4% to £3,185m,
driven by higher investment spend to
support growth, mainly in marketing and partnership costs, the
transfer of WM&I from Barclays UK, and the impact of inflation,
partially offset by the non-repeat of prior year litigation and
conduct charges mainly relating to customer remediation costs and
efficiency savings
●Credit impairment charges were £1,548m (2022:
£933m)
–CIB credit impairment charges were £23m
(2022: £119m), driven by single name charges, partially offset
by the benefit of credit protection
–CC&P credit impairment charges increased to
£1,525m (2022: £814m), driven by higher delinquencies in
US cards, which was anticipated and led to higher coverage ratios.
30 and 90 day arrears at 2.9% (Q422: 2.2%) and 1.5% (Q422: 1.2%)
respectively. The US cards total coverage ratio was 10.2% (December
2022: 8.1%)
1
|
The Over-issuance of Securities in the prior year impacted Equities
within Global markets, CIB and Barclays International
only.
|
2
|
Period covering 2014-2023. Pre 2014 data was not restated following
re-segmentation in 2016.
|
3
|
Data source: Dealogic for the period covering 1 January to 31
December 2023.
|
4
|
Refers to the settlements with the SEC and CFTC in connection with
their investigations of the use of unauthorised devices for
business communications.
|
Balance sheet
●Loans and advances at
amortised cost increased £4.6bn to
£174.2bn driven by
increased investment in debt securities in Treasury. In addition,
there has been balance growth in CC&P which was offset by net
loan repayments in CIB and transfer to held for sale of the German
consumer finance business
●Trading portfolio assets
increased £40.8bn to £174.6bn driven by an increase in debt and equity
securities as we facilitate client demand in Global
Markets
●Derivative assets and
liabilities decreased £46.5bn and £39.1bn to
£255.2bn and £249.8bn respectively reflecting lower market volatility and a decrease
in the forward interest rates
●Financial assets at fair value
through the income statement decreased £6.8bn to
£203.7bn driven by
increased secured lending which was more than offset by trade
optimisations
●Deposits at amortised cost
increased £10.1bn to £297.7bn driven by increased deposits in
CIB
●RWAs
increased to £259.1bn (December 2022:
£254.8bn) driven by higher
CC&P RWAs
Head Office
|
Year ended
|
|
Three months ended
|
|
31.12.23
|
31.12.22
|
|
|
31.12.23
|
31.12.22
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
81
|
(248)
|
|
|
106
|
(324)
|
|
Net fee, commission and other income
|
(208)
|
78
|
|
|
(54)
|
293
|
|
Total income
|
(127)
|
(170)
|
25
|
|
52
|
(31)
|
|
Operating costs
|
(743)
|
(336)
|
|
|
(523)
|
(97)
|
|
UK bank levy
|
(14)
|
(17)
|
18
|
|
(14)
|
(17)
|
18
|
Litigation and conduct
|
2
|
(53)
|
|
|
6
|
1
|
|
Total operating expenses
|
(755)
|
(406)
|
(86)
|
|
(531)
|
(113)
|
|
Other net (expenses)/income
|
(7)
|
(22)
|
68
|
|
(2)
|
4
|
|
Loss before impairment
|
(889)
|
(598)
|
(49)
|
|
(481)
|
(140)
|
|
Credit impairment charges
|
(29)
|
(1)
|
|
|
(4)
|
(13)
|
69
|
Loss before tax
|
(918)
|
(599)
|
(53)
|
|
(485)
|
(153)
|
|
Attributable loss
|
(713)
|
(698)
|
(2)
|
|
(369)
|
(63)
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
0.2
|
0.7
|
|
|
1.6
|
(2.4)
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Total assets
|
18.3
|
19.2
|
|
|
|
|
|
Risk weighted assets
|
10.2
|
8.6
|
|
|
|
|
|
Period end allocated tangible equity
|
2.3
|
(0.2)
|
|
|
|
|
|
2023 compared to 2022
Income statement
●Loss
before tax was £918m (2022: £599m) including £453m Q423 structural cost
actions
●Total
income was an expense of £127m (2022: £170m)
primarily reflecting hedge accounting
and treasury items
●Total
operating expenses increased to £755m (2022:
£406m) primarily driven by £453m of Q423 structural
cost actions partially offset by lower litigation and conduct
charges
–Head Office structural cost actions principally
include the software intangibles impairment related to the merchant
acquiring business (c.£260m), and the Canary Wharf office
lease exit (c.£140m)
Balance sheet
●RWAs
were £10.2bn (December 2022: £8.6bn) primarily driven by methodology and policy
updates, and increases in non-customer assets
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
3,139
|
3,247
|
3,270
|
3,053
|
|
2,741
|
3,068
|
2,422
|
2,341
|
Net fee, commission and other income
|
2,459
|
3,011
|
3,015
|
4,184
|
|
3,060
|
2,883
|
4,286
|
4,155
|
Total income
|
5,598
|
6,258
|
6,285
|
7,237
|
|
5,801
|
5,951
|
6,708
|
6,496
|
Operating costs
|
(4,735)
|
(3,949)
|
(3,919)
|
(4,111)
|
|
(3,748)
|
(3,939)
|
(3,682)
|
(3,588)
|
UK bank levy
|
(180)
|
—
|
—
|
—
|
|
(176)
|
—
|
—
|
—
|
Litigation and conduct
|
(5)
|
—
|
(33)
|
1
|
|
(79)
|
339
|
(1,334)
|
(523)
|
Total operating expenses
|
(4,920)
|
(3,949)
|
(3,952)
|
(4,110)
|
|
(4,003)
|
(3,600)
|
(5,016)
|
(4,111)
|
Other net (expenses)/income
|
(16)
|
9
|
3
|
(5)
|
|
10
|
(1)
|
7
|
(10)
|
Profit before impairment
|
662
|
2,318
|
2,336
|
3,122
|
|
1,808
|
2,350
|
1,699
|
2,375
|
Credit impairment charges
|
(552)
|
(433)
|
(372)
|
(524)
|
|
(498)
|
(381)
|
(200)
|
(141)
|
Profit before tax
|
110
|
1,885
|
1,964
|
2,598
|
|
1,310
|
1,969
|
1,499
|
2,234
|
Tax credit/(charges)
|
23
|
(343)
|
(353)
|
(561)
|
|
33
|
(249)
|
(209)
|
(614)
|
Profit after tax
|
133
|
1,542
|
1,611
|
2,037
|
|
1,343
|
1,720
|
1,290
|
1,620
|
Non-controlling interests
|
(25)
|
(9)
|
(22)
|
(8)
|
|
(22)
|
(2)
|
(20)
|
(1)
|
Other equity instrument holders
|
(219)
|
(259)
|
(261)
|
(246)
|
|
(285)
|
(206)
|
(199)
|
(215)
|
Attributable (loss)/profit
|
(111)
|
1,274
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
(0.9)%
|
11.0%
|
11.4%
|
15.0%
|
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
Average tangible shareholders' equity (£bn)
|
48.9
|
46.5
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
Cost: income ratio
|
88%
|
63%
|
63%
|
57%
|
|
69%
|
60%
|
75%
|
63%
|
Loan loss rate (bps)
|
54
|
42
|
37
|
52
|
|
49
|
36
|
20
|
15
|
Basic earnings per share
|
(0.7)p
|
8.3p
|
8.6p
|
11.3p
|
|
6.5p
|
9.4p
|
6.4p
|
8.4p
|
Basic weighted average number of shares (m)
|
15,092
|
15,405
|
15,523
|
15,770
|
|
15,828
|
16,148
|
16,684
|
16,682
|
Period end number of shares (m)
|
15,155
|
15,239
|
15,556
|
15,701
|
|
15,871
|
15,888
|
16,531
|
16,762
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital management1
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
333.3
|
339.6
|
337.4
|
343.6
|
|
343.3
|
346.3
|
337.2
|
325.8
|
Loans and advances to banks at amortised cost
|
9.5
|
11.5
|
10.9
|
11.0
|
|
10.0
|
12.5
|
12.5
|
11.4
|
Debt securities at amortised cost
|
56.7
|
54.3
|
53.1
|
48.9
|
|
45.5
|
54.8
|
46.1
|
34.5
|
Loans and advances at amortised cost
|
399.5
|
405.4
|
401.4
|
403.5
|
|
398.8
|
413.7
|
395.8
|
371.7
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.4%
|
1.4%
|
1.4%
|
1.4%
|
|
1.4%
|
1.4%
|
1.4%
|
1.5%
|
Total assets
|
1,477.5
|
1,591.7
|
1,549.7
|
1,539.1
|
|
1,513.7
|
1,726.9
|
1,589.2
|
1,496.1
|
Deposits at amortised cost
|
538.8
|
561.3
|
554.7
|
555.7
|
|
545.8
|
574.4
|
568.7
|
546.5
|
Tangible net asset value per share
|
331p
|
316p
|
291p
|
301p
|
|
295p
|
286p
|
297p
|
294p
|
Common equity tier 1 ratio
|
13.8%
|
14.0%
|
13.8%
|
13.6%
|
|
13.9%
|
13.8%
|
13.6%
|
13.8%
|
Common equity tier 1 capital
|
47.3
|
48.0
|
46.6
|
46.0
|
|
46.9
|
48.6
|
46.7
|
45.3
|
Risk weighted assets
|
342.7
|
341.9
|
336.9
|
338.4
|
|
336.5
|
350.8
|
344.5
|
328.8
|
UK leverage ratio
|
5.2%
|
5.0%
|
5.1%
|
5.1%
|
|
5.3%
|
5.0%
|
5.1%
|
5.0%
|
UK leverage exposure
|
1,168.3
|
1,202.4
|
1,183.7
|
1,168.9
|
|
1,130.0
|
1,232.1
|
1,151.2
|
1,123.5
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
298.1
|
335.0
|
330.7
|
333.0
|
|
318.0
|
325.8
|
342.5
|
319.8
|
Liquidity
coverage ratio2
|
161%
|
159%
|
157%
|
157%
|
|
156%
|
156%
|
157%
|
159%
|
Net
stable funding ratio3
|
138%
|
138%
|
139%
|
139%
|
|
137%
|
|
|
|
Loan: deposit ratio
|
74%
|
72%
|
72%
|
73%
|
|
73%
|
72%
|
70%
|
68%
|
1
|
Refer to pages 55 to
59 for further information on
how capital, RWAs and leverage are calculated.
|
2
|
The Liquidity Coverage Ratio is based on the average of the last 12
spot month end ratios. Prior period LCR comparatives have been
updated for consistency.
|
3
|
Represents average of the last four spot quarter end
positions.
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,575
|
1,578
|
1,660
|
1,618
|
|
1,600
|
1,561
|
1,393
|
1,339
|
Net fee, commission and other income
|
217
|
295
|
301
|
343
|
|
370
|
355
|
331
|
310
|
Total income
|
1,792
|
1,873
|
1,961
|
1,961
|
|
1,970
|
1,916
|
1,724
|
1,649
|
Operating costs
|
(1,153)
|
(1,058)
|
(1,090)
|
(1,092)
|
|
(1,108)
|
(1,069)
|
(1,085)
|
(998)
|
UK bank levy
|
(30)
|
—
|
—
|
—
|
|
(26)
|
—
|
—
|
—
|
Litigation and conduct
|
(4)
|
9
|
5
|
(2)
|
|
(13)
|
(3)
|
(16)
|
(9)
|
Total operating expenses
|
(1,187)
|
(1,049)
|
(1,085)
|
(1,094)
|
|
(1,147)
|
(1,072)
|
(1,101)
|
(1,007)
|
Other net income/(expenses)
|
—
|
—
|
—
|
—
|
|
1
|
(1)
|
—
|
—
|
Profit before impairment
|
605
|
824
|
876
|
867
|
|
824
|
843
|
623
|
642
|
Credit impairment charges
|
(37)
|
(59)
|
(95)
|
(113)
|
|
(157)
|
(81)
|
—
|
(48)
|
Profit before tax
|
568
|
765
|
781
|
754
|
|
667
|
762
|
623
|
594
|
Attributable profit
|
382
|
531
|
534
|
515
|
|
474
|
549
|
458
|
396
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
202.8
|
204.9
|
206.8
|
208.2
|
|
205.1
|
205.1
|
205.9
|
207.3
|
Total assets
|
293.1
|
299.9
|
304.8
|
308.6
|
|
313.2
|
316.8
|
318.8
|
317.2
|
Customer deposits at amortised cost
|
241.1
|
243.2
|
249.8
|
254.3
|
|
258.0
|
261.0
|
261.5
|
260.3
|
Loan: deposit ratio
|
92%
|
92%
|
90%
|
90%
|
|
87%
|
86%
|
85%
|
85%
|
Risk weighted assets
|
73.5
|
73.2
|
73.0
|
74.6
|
|
73.1
|
73.2
|
72.2
|
72.7
|
Period end allocated tangible equity
|
10.2
|
10.1
|
10.1
|
10.3
|
|
10.1
|
10.1
|
9.9
|
10.1
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.9%
|
21.0%
|
20.9%
|
20.0%
|
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
Average allocated tangible equity (£bn)
|
10.2
|
10.1
|
10.2
|
10.3
|
|
10.2
|
9.9
|
10.0
|
10.1
|
Cost: income ratio
|
66%
|
56%
|
55%
|
56%
|
|
58%
|
56%
|
64%
|
61%
|
Loan loss rate (bps)
|
7
|
10
|
17
|
20
|
|
27
|
14
|
—
|
9
|
Net interest margin
|
3.07%
|
3.04%
|
3.22%
|
3.18%
|
|
3.10%
|
3.01%
|
2.71%
|
2.62%
|
Analysis of Barclays UK
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Personal Banking
|
1,067
|
1,165
|
1,244
|
1,253
|
|
1,229
|
1,212
|
1,077
|
1,022
|
Barclaycard Consumer UK
|
242
|
238
|
237
|
247
|
|
269
|
283
|
265
|
276
|
Business Banking
|
483
|
470
|
480
|
461
|
|
472
|
421
|
382
|
351
|
Total income
|
1,792
|
1,873
|
1,961
|
1,961
|
|
1,970
|
1,916
|
1,724
|
1,649
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
35
|
(85)
|
(92)
|
(28)
|
|
(120)
|
(26)
|
(42)
|
21
|
Barclaycard Consumer UK
|
(73)
|
29
|
(35)
|
(83)
|
|
(12)
|
2
|
84
|
(44)
|
Business Banking
|
1
|
(3)
|
32
|
(2)
|
|
(25)
|
(57)
|
(42)
|
(25)
|
Total credit impairment charges
|
(37)
|
(59)
|
(95)
|
(113)
|
|
(157)
|
(81)
|
—
|
(48)
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
170.1
|
172.3
|
173.3
|
173.6
|
|
169.7
|
168.7
|
167.1
|
166.5
|
Barclaycard Consumer UK
|
9.7
|
9.6
|
9.3
|
9.0
|
|
9.2
|
9.0
|
8.8
|
8.4
|
Business Banking
|
23.0
|
23.0
|
24.2
|
25.6
|
|
26.2
|
27.4
|
30.0
|
32.4
|
Total loans and advances to customers at amortised
cost
|
202.8
|
204.9
|
206.8
|
208.2
|
|
205.1
|
205.1
|
205.9
|
207.3
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
185.4
|
186.1
|
191.1
|
194.3
|
|
195.6
|
197.3
|
197.0
|
196.6
|
Barclaycard Consumer UK
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
Business Banking
|
55.7
|
57.1
|
58.7
|
60.0
|
|
62.4
|
63.7
|
64.5
|
63.7
|
Total customer deposits at amortised cost
|
241.1
|
243.2
|
249.8
|
254.3
|
|
258.0
|
261.0
|
261.5
|
260.3
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,458
|
1,655
|
1,730
|
1,354
|
|
1,465
|
1,497
|
1,029
|
936
|
Net trading income
|
720
|
1,461
|
1,278
|
2,419
|
|
1,169
|
1,328
|
2,766
|
2,446
|
Net fee, commission and other income
|
1,576
|
1,326
|
1,432
|
1,509
|
|
1,228
|
1,240
|
1,321
|
1,442
|
Total income
|
3,754
|
4,442
|
4,440
|
5,282
|
|
3,862
|
4,065
|
5,116
|
4,824
|
Operating costs
|
(3,059)
|
(2,816)
|
(2,747)
|
(2,956)
|
|
(2,543)
|
(2,776)
|
(2,537)
|
(2,505)
|
UK bank levy
|
(136)
|
—
|
—
|
—
|
|
(133)
|
—
|
—
|
—
|
Litigation and conduct
|
(7)
|
(10)
|
(33)
|
3
|
|
(67)
|
396
|
(1,319)
|
(513)
|
Total operating expenses
|
(3,202)
|
(2,826)
|
(2,780)
|
(2,953)
|
|
(2,743)
|
(2,380)
|
(3,856)
|
(3,018)
|
Other net (expenses)/income
|
(14)
|
3
|
6
|
3
|
|
5
|
10
|
5
|
8
|
Profit before impairment
|
538
|
1,619
|
1,666
|
2,332
|
|
1,124
|
1,695
|
1,265
|
1,814
|
Credit impairment charges
|
(511)
|
(358)
|
(275)
|
(404)
|
|
(328)
|
(295)
|
(209)
|
(101)
|
Profit before tax
|
27
|
1,261
|
1,391
|
1,928
|
|
796
|
1,400
|
1,056
|
1,713
|
Attributable (loss)/profit
|
(124)
|
848
|
953
|
1,348
|
|
625
|
1,136
|
783
|
1,300
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
126.8
|
130.8
|
126.6
|
131.0
|
|
133.7
|
137.0
|
126.7
|
113.9
|
Loans and advances to banks at amortised cost
|
8.4
|
10.3
|
9.7
|
9.8
|
|
8.7
|
11.0
|
11.3
|
10.2
|
Debt securities at amortised cost
|
39.0
|
36.4
|
35.2
|
30.8
|
|
27.2
|
36.2
|
29.3
|
20.7
|
Loans and advances at amortised cost
|
174.2
|
177.5
|
171.5
|
171.6
|
|
169.6
|
184.2
|
167.3
|
144.8
|
Trading portfolio assets
|
174.6
|
155.4
|
165.1
|
137.7
|
|
133.8
|
126.3
|
126.9
|
134.1
|
Derivative financial instrument assets
|
255.2
|
280.4
|
264.9
|
256.6
|
|
301.7
|
415.7
|
343.5
|
288.8
|
Financial assets at fair value through the income
statement
|
203.7
|
238.3
|
232.2
|
245.0
|
|
210.5
|
244.7
|
209.3
|
203.8
|
Cash collateral and settlement balances
|
103.6
|
136.0
|
123.9
|
125.5
|
|
107.7
|
163.3
|
128.5
|
132.0
|
Other assets
|
254.8
|
285.5
|
268.8
|
275.0
|
|
258.0
|
257.2
|
275.1
|
255.5
|
Total assets
|
1,166.1
|
1,273.1
|
1,226.4
|
1,211.4
|
|
1,181.3
|
1,391.4
|
1,250.6
|
1,159.0
|
Deposits at amortised cost
|
297.7
|
318.2
|
305.0
|
301.6
|
|
287.6
|
313.2
|
307.4
|
286.1
|
Derivative financial instrument liabilities
|
249.8
|
268.3
|
254.5
|
246.7
|
|
288.9
|
394.2
|
321.2
|
277.2
|
Loan: deposit ratio
|
58%
|
56%
|
56%
|
57%
|
|
59%
|
59%
|
54%
|
51%
|
Risk weighted assets
|
259.1
|
259.2
|
254.6
|
255.1
|
|
254.8
|
269.3
|
263.8
|
245.1
|
Period end allocated tangible equity
|
37.6
|
37.1
|
36.7
|
36.8
|
|
36.8
|
38.8
|
38.0
|
35.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(1.3)%
|
9.2%
|
10.3%
|
14.5%
|
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
Average allocated tangible equity (£bn)
|
37.1
|
36.8
|
37.1
|
37.1
|
|
38.9
|
39.1
|
37.3
|
35.1
|
Cost: income ratio
|
85%
|
64%
|
63%
|
56%
|
|
71%
|
59%
|
75%
|
63%
|
Loan loss rate (bps)
|
114
|
78
|
63
|
94
|
|
75
|
62
|
49
|
28
|
Net interest margin
|
5.43%
|
5.98%
|
5.85%
|
5.87%
|
|
5.71%
|
5.58%
|
4.41%
|
4.15%
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
530
|
700
|
856
|
465
|
|
548
|
606
|
410
|
385
|
Net trading income
|
763
|
1,503
|
1,353
|
2,437
|
|
1,201
|
1,344
|
2,738
|
2,450
|
Net fee, commission and other income
|
1,097
|
879
|
953
|
1,074
|
|
827
|
871
|
885
|
1,103
|
Total income
|
2,390
|
3,082
|
3,162
|
3,976
|
|
2,576
|
2,821
|
4,033
|
3,938
|
Operating costs
|
(2,134)
|
(2,015)
|
(1,984)
|
(2,202)
|
|
(1,796)
|
(2,043)
|
(1,870)
|
(1,921)
|
UK bank levy
|
(129)
|
—
|
—
|
—
|
|
(126)
|
—
|
—
|
—
|
Litigation and conduct
|
(3)
|
7
|
(1)
|
3
|
|
(55)
|
498
|
(1,314)
|
(318)
|
Total operating expenses
|
(2,266)
|
(2,008)
|
(1,985)
|
(2,199)
|
|
(1,977)
|
(1,545)
|
(3,184)
|
(2,239)
|
Other net (expenses)/income
|
(6)
|
2
|
1
|
—
|
|
2
|
—
|
—
|
—
|
Profit before impairment
|
118
|
1,076
|
1,178
|
1,777
|
|
601
|
1,276
|
849
|
1,699
|
Credit impairment (charges)/releases
|
(23)
|
20
|
13
|
(33)
|
|
(41)
|
(46)
|
(65)
|
33
|
Profit before tax
|
95
|
1,096
|
1,191
|
1,744
|
|
560
|
1,230
|
784
|
1,732
|
Attributable (loss)/profit
|
(61)
|
721
|
798
|
1,209
|
|
454
|
1,015
|
579
|
1,316
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
87.8
|
87.9
|
84.8
|
89.2
|
|
90.5
|
93.6
|
86.5
|
79.5
|
Loans and advances to banks at amortised cost
|
7.4
|
9.6
|
9.0
|
9.2
|
|
8.1
|
10.2
|
10.0
|
9.4
|
Debt securities at amortised cost
|
38.9
|
36.3
|
35.1
|
30.7
|
|
27.2
|
36.2
|
29.3
|
20.7
|
Loans and advances at amortised cost
|
134.1
|
133.8
|
128.9
|
129.1
|
|
125.8
|
140.0
|
125.8
|
109.6
|
Trading portfolio assets
|
174.5
|
155.3
|
165.0
|
137.6
|
|
133.7
|
126.1
|
126.7
|
134.0
|
Derivative financial instruments assets
|
255.1
|
280.4
|
264.8
|
256.5
|
|
301.6
|
415.5
|
343.4
|
288.7
|
Financial assets at fair value through the income
statement
|
203.6
|
238.2
|
232.1
|
244.9
|
|
210.5
|
244.6
|
209.2
|
203.8
|
Cash collateral and settlement balances
|
102.9
|
135.2
|
122.5
|
124.7
|
|
106.9
|
162.6
|
127.7
|
131.2
|
Other assets
|
205.4
|
237.2
|
224.6
|
230.3
|
|
222.6
|
220.6
|
237.2
|
222.5
|
Total assets
|
1,075.6
|
1,180.1
|
1,137.9
|
1,123.1
|
|
1,101.1
|
1,309.4
|
1,170.0
|
1,089.8
|
Deposits at amortised cost
|
217.7
|
236.9
|
225.5
|
221.0
|
|
205.8
|
229.5
|
229.5
|
214.7
|
Derivative financial instrument liabilities
|
249.7
|
268.3
|
254.5
|
246.7
|
|
288.9
|
394.2
|
321.2
|
277.1
|
Risk weighted assets
|
216.8
|
219.2
|
216.5
|
216.8
|
|
215.9
|
230.6
|
227.6
|
213.5
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(0.8)%
|
9.2%
|
10.0%
|
15.2%
|
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
Average allocated tangible equity (£bn)
|
31.6
|
31.5
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
Cost: income ratio
|
95%
|
65%
|
63%
|
55%
|
|
77%
|
55%
|
79%
|
57%
|
Loan loss rate (bps)
|
7
|
(6)
|
(4)
|
10
|
|
13
|
13
|
20
|
(12)
|
Net interest margin
|
3.00%
|
3.65%
|
3.98%
|
3.95%
|
|
3.73%
|
3.56%
|
2.88%
|
2.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
FICC
|
724
|
1,147
|
1,186
|
1,788
|
|
976
|
1,546
|
1,529
|
1,644
|
Equities
|
431
|
675
|
563
|
704
|
|
440
|
246
|
1,411
|
1,052
|
Global Markets
|
1,155
|
1,822
|
1,749
|
2,492
|
|
1,416
|
1,792
|
2,940
|
2,696
|
Advisory
|
171
|
80
|
130
|
212
|
|
197
|
150
|
236
|
185
|
Equity capital markets
|
38
|
62
|
69
|
50
|
|
40
|
42
|
37
|
47
|
Debt capital markets
|
301
|
233
|
273
|
341
|
|
243
|
341
|
281
|
416
|
Investment Banking fees
|
510
|
375
|
472
|
603
|
|
480
|
533
|
554
|
648
|
Corporate lending
|
40
|
172
|
168
|
95
|
|
(128)
|
(181)
|
(47)
|
125
|
Transaction banking
|
685
|
713
|
773
|
786
|
|
808
|
677
|
586
|
469
|
Corporate
|
725
|
885
|
941
|
881
|
|
680
|
496
|
539
|
594
|
Total income
|
2,390
|
3,082
|
3,162
|
3,976
|
|
2,576
|
2,821
|
4,033
|
3,938
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
928
|
955
|
874
|
889
|
|
918
|
891
|
619
|
551
|
Net fee, commission, trading and other income
|
436
|
405
|
404
|
417
|
|
368
|
353
|
464
|
335
|
Total income
|
1,364
|
1,360
|
1,278
|
1,306
|
|
1,286
|
1,244
|
1,083
|
886
|
Operating costs
|
(925)
|
(801)
|
(763)
|
(754)
|
|
(747)
|
(733)
|
(667)
|
(584)
|
UK bank levy
|
(7)
|
—
|
—
|
—
|
|
(7)
|
—
|
—
|
—
|
Litigation and conduct
|
(4)
|
(17)
|
(32)
|
—
|
|
(12)
|
(102)
|
(5)
|
(195)
|
Total operating expenses
|
(936)
|
(818)
|
(795)
|
(754)
|
|
(766)
|
(835)
|
(672)
|
(779)
|
Other net (expenses)/income
|
(8)
|
1
|
5
|
3
|
|
3
|
10
|
5
|
8
|
Profit before impairment
|
420
|
543
|
488
|
555
|
|
523
|
419
|
416
|
115
|
Credit impairment charges
|
(488)
|
(378)
|
(288)
|
(371)
|
|
(287)
|
(249)
|
(144)
|
(134)
|
(Loss)/profit before tax
|
(68)
|
165
|
200
|
184
|
|
236
|
170
|
272
|
(19)
|
Attributable (loss)/profit
|
(63)
|
127
|
155
|
139
|
|
171
|
121
|
204
|
(16)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
39.0
|
42.9
|
41.7
|
41.8
|
|
43.2
|
43.4
|
40.2
|
34.4
|
Total assets
|
90.5
|
93.0
|
88.5
|
88.3
|
|
80.2
|
82.0
|
80.6
|
69.2
|
Deposits at amortised cost
|
80.0
|
81.3
|
79.5
|
80.6
|
|
81.8
|
83.7
|
77.9
|
71.4
|
Risk weighted assets
|
42.3
|
39.9
|
38.1
|
38.2
|
|
38.9
|
38.7
|
36.2
|
31.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(4.5)%
|
9.6%
|
11.8%
|
10.5%
|
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
Average allocated tangible equity (£bn)
|
5.5
|
5.3
|
5.3
|
5.3
|
|
5.2
|
5.1
|
4.6
|
4.3
|
Cost: income ratio
|
69%
|
60%
|
62%
|
58%
|
|
60%
|
67%
|
62%
|
88%
|
Loan loss rate (bps)
|
449
|
321
|
255
|
332
|
|
245
|
211
|
132
|
145
|
Net interest margin
|
8.44%
|
8.88%
|
8.25%
|
8.42%
|
|
8.40%
|
8.41%
|
6.68%
|
6.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
International Cards and Consumer Bank
|
944
|
890
|
835
|
900
|
|
860
|
824
|
691
|
538
|
Private Bank
|
306
|
331
|
295
|
258
|
|
285
|
270
|
245
|
214
|
Payments
|
114
|
139
|
148
|
148
|
|
141
|
150
|
147
|
134
|
Total income
|
1,364
|
1,360
|
1,278
|
1,306
|
|
1,286
|
1,244
|
1,083
|
886
|
|
|
|
|
|
|
|
|
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
106
|
14
|
(120)
|
81
|
|
(324)
|
10
|
—
|
66
|
Net fee, commission and other income
|
(54)
|
(71)
|
4
|
(87)
|
|
293
|
(40)
|
(132)
|
(43)
|
Total income
|
52
|
(57)
|
(116)
|
(6)
|
|
(31)
|
(30)
|
(132)
|
23
|
Operating costs
|
(523)
|
(75)
|
(82)
|
(63)
|
|
(97)
|
(94)
|
(60)
|
(85)
|
UK bank levy
|
(14)
|
—
|
—
|
—
|
|
(17)
|
—
|
—
|
—
|
Litigation and conduct
|
6
|
1
|
(5)
|
—
|
|
1
|
(54)
|
1
|
(1)
|
Total operating expenses
|
(531)
|
(74)
|
(87)
|
(63)
|
|
(113)
|
(148)
|
(59)
|
(86)
|
Other net (expenses)/income
|
(2)
|
6
|
(3)
|
(8)
|
|
4
|
(10)
|
2
|
(18)
|
Loss before impairment
|
(481)
|
(125)
|
(206)
|
(77)
|
|
(140)
|
(188)
|
(189)
|
(81)
|
Credit impairment (charges)/releases
|
(4)
|
(16)
|
(2)
|
(7)
|
|
(13)
|
(5)
|
9
|
8
|
Loss before tax
|
(485)
|
(141)
|
(208)
|
(84)
|
|
(153)
|
(193)
|
(180)
|
(73)
|
Attributable loss
|
(369)
|
(105)
|
(159)
|
(80)
|
|
(63)
|
(173)
|
(170)
|
(292)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
18.3
|
18.7
|
18.5
|
19.1
|
|
19.2
|
18.7
|
19.8
|
19.9
|
Risk weighted assets
|
10.2
|
9.5
|
9.3
|
8.8
|
|
8.6
|
8.2
|
8.6
|
11.0
|
Period end allocated tangible equity
|
2.3
|
1.0
|
(1.5)
|
0.2
|
|
(0.2)
|
(3.5)
|
1.1
|
3.6
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
1.6
|
(0.4)
|
(0.6)
|
0.2
|
|
(2.4)
|
(0.4)
|
1.7
|
3.6
|
Performance Management
Margins and balances
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
6,431
|
205,667
|
3.13
|
5,893
|
205,972
|
2.86
|
Corporate and Investment Bank
|
1,991
|
54,600
|
3.65
|
1,796
|
56,008
|
3.21
|
Consumer, Cards and Payments
|
3,646
|
42,910
|
8.50
|
2,979
|
39,193
|
7.60
|
Barclays International
|
5,637
|
97,510
|
5.78
|
4,775
|
95,201
|
5.02
|
Barclays Group
|
12,068
|
303,177
|
3.98
|
10,668
|
301,173
|
3.54
|
Other1
|
641
|
|
|
(96)
|
|
|
Total Barclays Group net interest income
|
12,709
|
|
|
10,572
|
|
|
1
|
Other comprises net interest income from Global Markets within Barclays
International and Head Office including hedge
accounting.
|
The
Barclays Group NIM has increased 44bps from 3.54% in 2022 to 3.98% in 2023, driven by the higher
interest rate environment and continued structural hedge income momentum across the
Group as well as higher balances in CC&P including the Gap Inc.
portfolio acquisition, partially offset by product dynamics in
deposits and mortgages.
The
Group’s combined product and equity structural hedge notional
amount at 31 December 2023 was
£246bn (Dec 2022:
£263bn), with an average
duration of close to 2.5 years.
Gross structural hedge contributions of £3,623m (Q422: £2,196m) and net structural hedge
contributions of £(8,209)m
(Q422: £(1,544)m) are included in Group net
interest income. Gross structural hedge contributions represent the
absolute level of interest earned from the fixed receipts on swaps
in the structural hedge, while the net structural hedge
contributions represent the net interest earned on the difference
between the structural hedge rate and prevailing floating
rates.
Quarterly analysis
|
|
|
|
Q423
|
Q323
|
Q223
|
Q123
|
Q422
|
Net interest income
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
1,575
|
1,578
|
1,660
|
1,618
|
1,600
|
Corporate and Investment Bank
|
409
|
491
|
540
|
551
|
556
|
Consumer, Cards and Payments
|
928
|
955
|
874
|
889
|
918
|
Barclays International
|
1,337
|
1,446
|
1,414
|
1,440
|
1,474
|
Barclays Group
|
2,912
|
3,024
|
3,074
|
3,058
|
3,074
|
|
|
|
|
|
|
Average customer assets
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
203,646
|
205,693
|
207,073
|
206,241
|
204,941
|
Corporate and Investment Bank
|
54,089
|
53,290
|
54,417
|
56,612
|
59,146
|
Consumer, Cards and Payments
|
43,623
|
42,678
|
42,503
|
42,840
|
43,319
|
Barclays International
|
97,712
|
95,968
|
96,920
|
99,452
|
102,465
|
Barclays Group
|
301,358
|
301,661
|
303,993
|
305,693
|
307,406
|
|
|
|
|
|
|
Net interest margin
|
%
|
%
|
%
|
%
|
%
|
Barclays UK
|
3.07
|
3.04
|
3.22
|
3.18
|
3.10
|
Corporate and Investment Bank
|
3.00
|
3.65
|
3.98
|
3.95
|
3.73
|
Consumer, Cards and Payments
|
8.44
|
8.88
|
8.25
|
8.42
|
8.40
|
Barclays International
|
5.43
|
5.98
|
5.85
|
5.87
|
5.71
|
Barclays Group
|
3.83
|
3.98
|
4.06
|
4.06
|
3.97
|
Remuneration
Deferred bonuses are payable only once an employee meets certain
conditions, including a specified period of future service. This
creates a timing difference between the communication of the bonus
pool and the charges that are recognised in the income statement
which are reconciled in the table below to show the charge for
performance costs. Refer to the Remuneration Report on pages 191 to
229 of the Barclays PLC Annual Report 2023 for further detail on
remuneration. The table below includes the other elements of
compensation and staff costs.
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
|
£m
|
£m
|
% Change
|
Incentive awards granted:
|
|
|
|
Current year bonus
|
1,202
|
1,241
|
3
|
Deferred bonus
|
543
|
549
|
1
|
Total incentive awards granted
|
1,745
|
1,790
|
3
|
|
|
|
|
Reconciliation of incentive awards granted to income statement
charge:
|
|
|
|
Less: deferred bonuses granted but not charged in current
year
|
(384)
|
(388)
|
1
|
Add: current year charges for deferred bonuses from previous
years
|
390
|
399
|
2
|
Other differences between incentive awards granted and income
statement charge
|
(1)
|
35
|
|
Income statement charge for performance costs
|
1,750
|
1,836
|
5
|
|
|
|
|
Other income statement charges:
|
|
|
|
Salaries
|
5,120
|
4,732
|
(8)
|
Social security costs
|
755
|
714
|
(6)
|
Post-retirement
benefits1
|
539
|
563
|
4
|
Other compensation costs
|
555
|
504
|
(10)
|
Total compensation costs2
|
8,719
|
8,349
|
(4)
|
|
|
|
|
Other resourcing costs
|
|
|
|
Outsourcing
|
601
|
607
|
1
|
Redundancy
and restructuring3
|
452
|
(7)
|
|
Temporary staff costs
|
91
|
113
|
19
|
Other
|
154
|
190
|
19
|
Total other resourcing costs
|
1,298
|
903
|
(44)
|
|
|
|
|
Total staff costs
|
10,017
|
9,252
|
(8)
|
|
|
|
|
Group compensation costs as a % of total income
|
34.4
|
33.5
|
|
Group staff costs as a % of total income
|
39.5
|
37.1
|
|
One of
the primary considerations for performance costs are Group and
business level returns, alongside other financial and non-financial
measures, including strategic delivery, risk and conduct, aligning
colleague, shareholder and wider stakeholder
interests.
1
|
Post-retirement benefits charge includes £371m (2022: £313m) in respect of defined contribution
schemes and £168m (2022:
£250m) in respect of
defined benefit schemes.
|
2
|
£860m (2022:
£604m) of Group
compensation cost was capitalised as internally generated software
and excluded from the Staff cost disclosed above.
|
3
|
Redundancy and restructuring cost included £340m relating to
structural cost actions taken in Q4 2023.
|
Deferred bonuses have been awarded and are expected to be
charged to the income statement in the years outlined in the table
that follows:
Year in which income statement charge
is expected to be taken for deferred bonuses awarded to
date1
|
Actual
|
|
Expected1,
2
|
|
Year ended
|
Year ended
|
|
Year ended
|
2025 and
|
|
31.12.22
|
31.12.23
|
|
31.12.24
|
beyond
|
|
£m
|
£m
|
|
£m
|
£m
|
Deferred bonuses from 2020 and earlier bonus pools
|
185
|
53
|
|
—
|
—
|
Deferred bonuses from 2021 bonus pool
|
214
|
150
|
|
77
|
14
|
Deferred bonuses from 2022 bonus pool
|
161
|
187
|
|
132
|
82
|
Deferred bonuses from 2023 bonus pool
|
—
|
159
|
|
152
|
174
|
Income statement charge for deferred bonuses
|
560
|
549
|
|
361
|
270
|
1
|
The actual amount charged depends upon whether conditions have been
met and may vary compared with the above expectation.
|
2
|
Does not include the impact of grants which will be made in 2024
and beyond.
|
Charging of deferred bonus
profile1
Grant date
|
Expected payment
date(s)2
and percentage of the deferred bonus
paid
|
Year
|
Income statement charge % profile of
2023 onwards3,4
|
March 2024
|
|
2023
|
33%
|
|
|
2024
|
31%
|
|
March 2025 (33.3%)
|
2025
|
21%
|
|
March 2026 (33.3%)
|
2026
|
13%
|
|
March 2027 (33.3%)
|
2027
|
2%
|
1
|
Represents a typical vesting schedule for deferred awards. Certain
awards may be subject to a 3, 4, 5 or 7 year deferral in line with
regulatory requirements.
|
2
|
Share awards may be subject to an additional holding
period.
|
3
|
The income statement charge is based on the period over which
conditions are met.
|
4
|
Income statement charge profile % disclosed as a percentage of the
award excluding lapse.
|
Risk Management
Risk management and principal risks
The
roles and responsibilities of the business groups, Risk and
Compliance in the management of risk in the Group are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of the Group, the
process by which the Group sets its appetite for these risks in its
business activities, and the consequent limits which it places on
related risk taking.
The
framework identifies nine principal risks: credit risk, market
risk, treasury and capital risk, climate risk, operational risk,
model risk, compliance risk, reputation risk and legal risk.
Further detail on the Group’s principal risks and material
existing and emerging risks and how such risks are managed is
available in the Barclays PLC Annual Report 2023, which can be accessed at
home.barclays/annualreport.
The
following section gives an overview of credit risk, market risk,
and treasury and capital risk for the period.
Credit Risk
Loans and advances at amortised cost by geography
Total loans and advances at amortised cost in the credit risk
performance section includes loans and advances at amortised cost
to banks and loans and advances at amortised cost to
customers.
The table below presents a product and geographical breakdown by
stages of loans and advances at amortised cost. Also included are
stage allocation of debt securities and off-balance sheet loan
commitments and financial guarantee contracts by gross exposure,
impairment allowance and coverage ratio as at 31 December
2023.
Impairment allowance under IFRS 9 considers both the drawn and the
undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to gross loans and advances to
the extent allowance does not exceed the drawn exposure and any
excess is reported on the liabilities side of the balance sheet as
a provision. For corporate portfolios, impairment allowance on
undrawn exposure is reported on the liability side of the balance
sheet as a provision.
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.23
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
146,001
|
19,123
|
1,812
|
166,936
|
|
43
|
77
|
112
|
232
|
Retail credit cards
|
8,094
|
2,128
|
198
|
10,420
|
|
111
|
492
|
107
|
710
|
Retail other
|
6,832
|
1,252
|
264
|
8,348
|
|
56
|
117
|
144
|
317
|
Corporate
loans1
|
54,257
|
8,673
|
1,692
|
64,622
|
|
191
|
214
|
346
|
751
|
Total UK
|
215,184
|
31,176
|
3,966
|
250,326
|
|
401
|
900
|
709
|
2,010
|
Retail mortgages
|
4,201
|
346
|
612
|
5,159
|
|
7
|
28
|
316
|
351
|
Retail credit cards
|
22,315
|
3,450
|
1,522
|
27,287
|
|
412
|
1,138
|
1,226
|
2,776
|
Retail other
|
1,637
|
91
|
229
|
1,957
|
|
3
|
1
|
32
|
36
|
Corporate loans
|
58,248
|
4,629
|
862
|
63,739
|
|
96
|
200
|
252
|
548
|
Total Rest of the World
|
86,401
|
8,516
|
3,225
|
98,142
|
|
518
|
1,367
|
1,826
|
3,711
|
Total loans and advances at amortised cost
|
301,585
|
39,692
|
7,191
|
348,468
|
|
919
|
2,267
|
2,535
|
5,721
|
Debt securities at amortised cost
|
52,869
|
3,907
|
—
|
56,776
|
|
11
|
16
|
—
|
27
|
Total loans and advances at amortised cost including debt
securities
|
354,454
|
43,599
|
7,191
|
405,244
|
|
930
|
2,283
|
2,535
|
5,748
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
374,063
|
24,208
|
1,037
|
399,308
|
|
173
|
287
|
44
|
504
|
Total3,4
|
728,517
|
67,807
|
8,228
|
804,552
|
|
1,103
|
2,570
|
2,579
|
6,252
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.23
|
£m
|
£m
|
£m
|
£m
|
|
%
|
%
|
%
|
%
|
Retail mortgages
|
145,958
|
19,046
|
1,700
|
166,704
|
|
—
|
0.4
|
6.2
|
0.1
|
Retail credit cards
|
7,983
|
1,636
|
91
|
9,710
|
|
1.4
|
23.1
|
54.0
|
6.8
|
Retail other
|
6,776
|
1,135
|
120
|
8,031
|
|
0.8
|
9.3
|
54.5
|
3.8
|
Corporate
loans1
|
54,066
|
8,459
|
1,346
|
63,871
|
|
0.4
|
2.5
|
20.4
|
1.2
|
Total UK
|
214,783
|
30,276
|
3,257
|
248,316
|
|
0.2
|
2.9
|
17.9
|
0.8
|
Retail mortgages
|
4,194
|
318
|
296
|
4,808
|
|
0.2
|
8.1
|
51.6
|
6.8
|
Retail credit cards
|
21,903
|
2,312
|
296
|
24,511
|
|
1.8
|
33.0
|
80.6
|
10.2
|
Retail other
|
1,634
|
90
|
197
|
1,921
|
|
0.2
|
1.1
|
14.0
|
1.8
|
Corporate loans
|
58,152
|
4,429
|
610
|
63,191
|
|
0.2
|
4.3
|
29.2
|
0.9
|
Total Rest of the World
|
85,883
|
7,149
|
1,399
|
94,431
|
|
0.6
|
16.1
|
56.6
|
3.8
|
Total loans and advances at amortised cost
|
300,666
|
37,425
|
4,656
|
342,747
|
|
0.3
|
5.7
|
35.3
|
1.6
|
Debt securities at amortised cost
|
52,858
|
3,891
|
—
|
56,749
|
|
—
|
0.4
|
—
|
—
|
Total loans and advances at amortised cost including debt
securities
|
353,524
|
41,316
|
4,656
|
399,496
|
|
0.3
|
5.2
|
35.3
|
1.4
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
373,890
|
23,921
|
993
|
398,804
|
|
—
|
1.2
|
4.2
|
0.1
|
Total3,4
|
727,414
|
65,237
|
5,649
|
798,300
|
|
0.2
|
3.8
|
31.3
|
0.8
|
1
|
Includes Business Banking, which has a gross exposure of
£15.2bn and an impairment allowance of £431m. This
comprises £99m impairment allowance on £9.8bn Stage 1
exposure, £81m on £4.1bn Stage 2 exposure and £251m
on £1.3bn Stage 3 exposure. Excluding this, total coverage for
corporate loans in UK is 0.6%.
|
2
|
Excludes loan commitments and financial guarantees of £16.5bn
carried at fair value and includes exposures relating to financial
assets classified as assets held for sale.
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£183.6bn and impairment allowance of £151m. This
comprises £16m impairment allowance on £182.8bn Stage 1
exposure, £2m on £0.6bn Stage 2 exposure and £133m
on £140m Stage 3 exposure.
|
4
|
The annualised loan loss rate is 46bps after applying the total
impairment charge of £1,881m.
|
Assets held for sale
During 2023, gross loans and advances and related impairment
allowances for the German consumer finance business portfolio were
reclassified from loans and advances to customers to assets held
for sale in the balance sheet. Disclosures relating to assets held
for sale are provided in the credit risk tables, primarily where
the disclosure is relevant to the measurement of these financial
assets.
For further details on assets held for sale, see Note 40 to the
financial statements in Barclays PLC Annual Report
2023.
Loans and advances to customers classified as assets held for
sale
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
|
Gross
|
ECL
|
Coverage
|
|
Gross
|
ECL
|
Coverage
|
|
Gross
|
ECL
|
Coverage
|
|
Gross
|
ECL
|
Coverage
|
As at 31.12.231
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
|
£m
|
£m
|
%
|
Retail credit cards
|
1,621
|
15
|
0.9
|
|
445
|
41
|
9.2
|
|
92
|
68
|
73.9
|
|
2,158
|
124
|
5.7
|
Retail other
|
1,561
|
20
|
1.3
|
|
288
|
32
|
11.1
|
|
84
|
60
|
71.4
|
|
1,933
|
112
|
5.8
|
Total Rest of the World
|
3,182
|
35
|
1.1
|
|
733
|
73
|
10.0
|
|
176
|
128
|
72.7
|
|
4,091
|
236
|
5.8
|
1
|
In 2022, total gross exposure of £4.3bn and impairment
allowance of £296m was included in loans and advances at
amortised cost which has now been classified as assets held for
sale. This comprises £37m ECL on £3.1bn Stage 1 exposure,
£141m on £1.0bn Stage 2 exposure and £118m on
£153m Stage 3 exposure
|
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
145,821
|
17,735
|
1,481
|
165,037
|
|
21
|
49
|
58
|
128
|
Retail credit cards
|
7,119
|
2,569
|
251
|
9,939
|
|
127
|
493
|
137
|
757
|
Retail other
|
8,202
|
1,197
|
293
|
9,692
|
|
72
|
138
|
145
|
355
|
Corporate
loans1
|
55,187
|
12,528
|
2,008
|
69,723
|
|
317
|
264
|
360
|
941
|
Total UK
|
216,329
|
34,029
|
4,033
|
254,391
|
|
537
|
944
|
700
|
2,181
|
Retail mortgages
|
7,851
|
465
|
933
|
9,249
|
|
8
|
24
|
356
|
388
|
Retail credit cards
|
22,669
|
3,880
|
1,129
|
27,678
|
|
331
|
1,127
|
818
|
2,276
|
Retail other
|
5,268
|
271
|
427
|
5,966
|
|
28
|
28
|
163
|
219
|
Corporate loans
|
56,704
|
4,290
|
564
|
61,558
|
|
144
|
160
|
182
|
486
|
Total Rest of the World
|
92,492
|
8,906
|
3,053
|
104,451
|
|
511
|
1,339
|
1,519
|
3,369
|
Total loans and advances at amortised cost
|
308,821
|
42,935
|
7,086
|
358,842
|
|
1,048
|
2,283
|
2,219
|
5,550
|
Debt securities
|
41,724
|
3,805
|
—
|
45,529
|
|
9
|
33
|
—
|
42
|
Total loans and advances at amortised cost including debt
securities
|
350,545
|
46,740
|
7,086
|
404,371
|
|
1,057
|
2,316
|
2,219
|
5,592
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
372,945
|
30,694
|
1,180
|
404,819
|
|
245
|
315
|
23
|
583
|
Total3,4
|
723,490
|
77,434
|
8,266
|
809,190
|
|
1,302
|
2,631
|
2,242
|
6,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
%
|
%
|
%
|
%
|
Retail mortgages
|
145,800
|
17,686
|
1,423
|
164,909
|
|
—
|
0.3
|
3.9
|
0.1
|
Retail credit cards
|
6,992
|
2,076
|
114
|
9,182
|
|
1.8
|
19.2
|
54.6
|
7.6
|
Retail other
|
8,130
|
1,059
|
148
|
9,337
|
|
0.9
|
11.5
|
49.5
|
3.7
|
Corporate
loans1
|
54,870
|
12,264
|
1,648
|
68,782
|
|
0.6
|
2.1
|
17.9
|
1.3
|
Total UK
|
215,792
|
33,085
|
3,333
|
252,210
|
|
0.2
|
2.8
|
17.4
|
0.9
|
Retail mortgages
|
7,843
|
441
|
577
|
8,861
|
|
0.1
|
5.2
|
38.2
|
4.2
|
Retail credit cards
|
22,338
|
2,753
|
311
|
25,402
|
|
1.5
|
29.0
|
72.5
|
8.2
|
Retail other
|
5,240
|
243
|
264
|
5,747
|
|
0.5
|
10.3
|
38.2
|
3.7
|
Corporate loans
|
56,560
|
4,130
|
382
|
61,072
|
|
0.3
|
3.7
|
32.3
|
0.8
|
Total Rest of the World
|
91,981
|
7,567
|
1,534
|
101,082
|
|
0.6
|
15.0
|
49.8
|
3.2
|
Total loans and advances at amortised cost
|
307,773
|
40,652
|
4,867
|
353,292
|
|
0.3
|
5.3
|
31.3
|
1.5
|
Debt securities
|
41,715
|
3,772
|
—
|
45,487
|
|
—
|
0.9
|
—
|
0.1
|
Total loans and advances at amortised cost including debt
securities
|
349,488
|
44,424
|
4,867
|
398,779
|
|
0.3
|
5.0
|
31.3
|
1.4
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
372,700
|
30,379
|
1,157
|
404,236
|
|
0.1
|
1.0
|
1.9
|
0.1
|
Total3,4
|
722,188
|
74,803
|
6,024
|
803,015
|
|
0.2
|
3.4
|
27.1
|
0.8
|
1
|
Includes Business Banking, which has a gross exposure of
£18.1bn and an impairment allowance of £519m. This
comprises £149m impairment allowance on £10.5bn Stage 1
exposure, £121m on £6.0bn Stage 2 exposure and £249m
on £1.6bn Stage 3 exposure. Excluding this, total coverage for
corporate loans in UK is 0.8%.
|
2
|
Excludes loan commitments and financial guarantees of £14.9bn
carried at fair value.
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.1bn and impairment allowance of £163m. This
comprises £10m impairment allowance on £178.4bn Stage 1
exposure, £9m on £1.5bn Stage 2 exposure and £144m
on £149m Stage 3 exposure.
|
4
|
The annualised loan loss rate is 30bps after applying the total
impairment charge of £1,220m.
|
Loans and advances at amortised cost by product
The table below presents a product breakdown by stages of loans and
advances at amortised cost. Also included is a breakdown of Stage 2
past due balances.
|
|
Stage 2
|
|
|
As at 31.12.23
|
Stage 1
|
Not past due
|
<=30 days past due
|
>30 days past due
|
Total
|
Stage 3
|
Total
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
150,202
|
16,834
|
1,971
|
664
|
19,469
|
2,424
|
172,095
|
Retail credit cards
|
30,409
|
4,858
|
392
|
328
|
5,578
|
1,720
|
37,707
|
Retail other
|
8,469
|
1,094
|
126
|
123
|
1,343
|
493
|
10,305
|
Corporate loans
|
112,505
|
12,960
|
179
|
163
|
13,302
|
2,554
|
128,361
|
Total
|
301,585
|
35,746
|
2,668
|
1,278
|
39,692
|
7,191
|
348,468
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Retail mortgages
|
50
|
73
|
20
|
12
|
105
|
428
|
583
|
Retail credit cards
|
523
|
1,257
|
166
|
207
|
1,630
|
1,333
|
3,486
|
Retail other
|
59
|
82
|
18
|
18
|
118
|
176
|
353
|
Corporate loans
|
287
|
399
|
8
|
7
|
414
|
598
|
1,299
|
Total
|
919
|
1,811
|
212
|
244
|
2,267
|
2,535
|
5,721
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Retail mortgages
|
150,152
|
16,761
|
1,951
|
652
|
19,364
|
1,996
|
171,512
|
Retail credit cards
|
29,886
|
3,601
|
226
|
121
|
3,948
|
387
|
34,221
|
Retail other
|
8,410
|
1,012
|
108
|
105
|
1,225
|
317
|
9,952
|
Corporate loans
|
112,218
|
12,561
|
171
|
156
|
12,888
|
1,956
|
127,062
|
Total
|
300,666
|
33,935
|
2,456
|
1,034
|
37,425
|
4,656
|
342,747
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Retail mortgages
|
—
|
0.4
|
1.0
|
1.8
|
0.5
|
17.7
|
0.3
|
Retail credit cards
|
1.7
|
25.9
|
42.3
|
63.1
|
29.2
|
77.5
|
9.2
|
Retail other
|
0.7
|
7.5
|
14.3
|
14.6
|
8.8
|
35.7
|
3.4
|
Corporate loans
|
0.3
|
3.1
|
4.5
|
4.3
|
3.1
|
23.4
|
1.0
|
Total
|
0.3
|
5.1
|
7.9
|
19.1
|
5.7
|
35.3
|
1.6
|
As at 31.12.22
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
153,672
|
15,990
|
1,684
|
526
|
18,200
|
2,414
|
174,286
|
Retail credit cards
|
29,788
|
5,731
|
284
|
434
|
6,449
|
1,380
|
37,617
|
Retail other
|
13,470
|
1,232
|
104
|
132
|
1,468
|
720
|
15,658
|
Corporate loans
|
111,891
|
16,552
|
159
|
107
|
16,818
|
2,572
|
131,281
|
Total
|
308,821
|
39,505
|
2,231
|
1,199
|
42,935
|
7,086
|
358,842
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Retail mortgages
|
29
|
53
|
11
|
9
|
73
|
414
|
516
|
Retail credit cards
|
458
|
1,334
|
100
|
186
|
1,620
|
955
|
3,033
|
Retail other
|
100
|
118
|
22
|
26
|
166
|
308
|
574
|
Corporate loans
|
461
|
401
|
13
|
10
|
424
|
542
|
1,427
|
Total
|
1,048
|
1,906
|
146
|
231
|
2,283
|
2,219
|
5,550
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Retail mortgages
|
153,643
|
15,937
|
1,673
|
517
|
18,127
|
2,000
|
173,770
|
Retail credit cards
|
29,330
|
4,397
|
184
|
248
|
4,829
|
425
|
34,584
|
Retail other
|
13,370
|
1,114
|
82
|
106
|
1,302
|
412
|
15,084
|
Corporate loans
|
111,430
|
16,151
|
146
|
97
|
16,394
|
2,030
|
129,854
|
Total
|
307,773
|
37,599
|
2,085
|
968
|
40,652
|
4,867
|
353,292
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Retail mortgages
|
—
|
0.3
|
0.7
|
1.7
|
0.4
|
17.1
|
0.3
|
Retail credit cards
|
1.5
|
23.3
|
35.2
|
42.9
|
25.1
|
69.2
|
8.1
|
Retail other
|
0.7
|
9.6
|
21.2
|
19.7
|
11.3
|
42.8
|
3.7
|
Corporate loans
|
0.4
|
2.4
|
8.2
|
9.3
|
2.5
|
21.1
|
1.1
|
Total
|
0.3
|
4.8
|
6.5
|
19.3
|
5.3
|
31.3
|
1.5
|
Movement in gross exposures and impairment allowance including
provisions for loan commitments and financial
guarantees
The following tables present a reconciliation of the opening to the
closing balance of the exposure and impairment
allowance.
Transfers between stages in the tables have been reflected as if
they had taken place at the beginning of the year. 'Net drawdowns,
repayments, net re-measurement and movements due to exposure and
risk parameter changes' includes additional drawdowns and partial
repayments from existing facilities. Additionally, the below tables
do not include other financial assets subject to impairment such as
debt securities at amortised cost, cash collateral and settlement
balances, financial assets at fair value through other
comprehensive income and other assets.
The movements are measured over a 12-month period.
Loans and advances at amortised cost
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Retail mortgages
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
153,672
|
29
|
18,200
|
73
|
2,414
|
414
|
174,286
|
516
|
Transfers from Stage 1 to Stage 2
|
(9,557)
|
(2)
|
9,557
|
2
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
6,052
|
22
|
(6,052)
|
(22)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(453)
|
—
|
(530)
|
(13)
|
983
|
13
|
—
|
—
|
Transfers from Stage 3
|
26
|
1
|
122
|
2
|
(148)
|
(3)
|
—
|
—
|
Business
activity in the period1
|
23,329
|
13
|
978
|
7
|
26
|
11
|
24,333
|
31
|
Refinements to models used for calculation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(11,505)
|
(8)
|
(1,136)
|
65
|
(502)
|
27
|
(13,143)
|
84
|
Final repayments
|
(10,837)
|
(3)
|
(1,666)
|
(9)
|
(328)
|
(15)
|
(12,831)
|
(27)
|
Disposals2
|
(525)
|
(2)
|
(4)
|
—
|
(2)
|
—
|
(531)
|
(2)
|
Write-offs
|
—
|
—
|
—
|
—
|
(19)
|
(19)
|
(19)
|
(19)
|
As at 31 December 2023
|
150,202
|
50
|
19,469
|
105
|
2,424
|
428
|
172,095
|
583
|
|
|
|
|
|
|
|
|
|
Retail credit cards
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
29,788
|
458
|
6,449
|
1,620
|
1,380
|
955
|
37,617
|
3,033
|
Transfers from Stage 1 to Stage 2
|
(2,406)
|
(68)
|
2,406
|
68
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
2,900
|
590
|
(2,900)
|
(590)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(678)
|
(27)
|
(874)
|
(374)
|
1,552
|
401
|
—
|
—
|
Transfers from Stage 3
|
54
|
32
|
31
|
18
|
(85)
|
(50)
|
—
|
—
|
Business activity in the period
|
2,775
|
60
|
332
|
116
|
29
|
25
|
3,136
|
201
|
Refinements
to models used for calculation3
|
—
|
(28)
|
—
|
37
|
—
|
11
|
—
|
20
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(162)
|
(465)
|
649
|
797
|
(47)
|
998
|
440
|
1,330
|
Final repayments
|
(241)
|
(14)
|
(70)
|
(21)
|
(26)
|
(19)
|
(337)
|
(54)
|
Transfers
to assets held for sale4
|
(1,621)
|
(15)
|
(445)
|
(41)
|
(92)
|
(68)
|
(2,158)
|
(124)
|
Disposals2
|
—
|
—
|
—
|
—
|
(186)
|
(115)
|
(186)
|
(115)
|
Write-offs
|
—
|
—
|
—
|
—
|
(805)
|
(805)
|
(805)
|
(805)
|
As at 31 December 2023
|
30,409
|
523
|
5,578
|
1,630
|
1,720
|
1,333
|
37,707
|
3,486
|
1
|
Business activity in the year reported within Retail mortgages
includes an acquisition of Kensington Mortgage Company in UK
Mortgages of £2.4bn.
|
2
|
The £531m of disposals reported within Retail mortgages relate
to transfer of facilities to a non-consolidated special purpose
vehicle for the purpose of securitisation. The £186m of
disposals reported within Retail credit cards include debt sales
undertaken during the year.
|
3
|
Refinements to models used for calculation reported within Retail
credit cards include a £88m movement in UK Cards, £43m
movement in US Cards and £(111)m movement in German consumer
finance business. These reflect model enhancements made during the
year. Barclays continually reviews the output of models to
determine accuracy of the ECL calculation including review of model
monitoring, external benchmarking and experience of model operation
over an extended period of time. This helps to ensure that the
models used continue to reflect the risks inherent across the
businesses.
|
4
|
Transfers to assets held for sale reported within Retail credit
cards relate to the German consumer finance business
portfolio.
|
Loans and advances at amortised cost
|
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Retail other
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
13,470
|
100
|
1,468
|
166
|
720
|
308
|
15,658
|
574
|
Transfers from Stage 1 to Stage 2
|
(1,179)
|
(13)
|
1,179
|
13
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
463
|
36
|
(463)
|
(36)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(549)
|
(4)
|
(154)
|
(44)
|
703
|
48
|
—
|
—
|
Transfers from Stage 3
|
33
|
3
|
9
|
4
|
(42)
|
(7)
|
—
|
—
|
Business activity in the period
|
7,302
|
27
|
197
|
23
|
28
|
21
|
7,527
|
71
|
Refinements to models used for calculation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(4,163)
|
(57)
|
(247)
|
31
|
(146)
|
115
|
(4,556)
|
89
|
Final repayments
|
(5,347)
|
(13)
|
(358)
|
(7)
|
(421)
|
(44)
|
(6,126)
|
(64)
|
Transfers
to assets held for sale1
|
(1,561)
|
(20)
|
(288)
|
(32)
|
(84)
|
(60)
|
(1,933)
|
(112)
|
Disposals2
|
—
|
—
|
—
|
—
|
(134)
|
(74)
|
(134)
|
(74)
|
Write-offs
|
—
|
—
|
—
|
—
|
(131)
|
(131)
|
(131)
|
(131)
|
As at 31 December 2023
|
8,469
|
59
|
1,343
|
118
|
493
|
176
|
10,305
|
353
|
|
|
|
|
|
|
|
|
|
Corporate loans
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
111,891
|
461
|
16,818
|
424
|
2,572
|
542
|
131,281
|
1,427
|
Transfers from Stage 1 to Stage 2
|
(6,172)
|
(45)
|
6,172
|
45
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
5,592
|
108
|
(5,592)
|
(108)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(758)
|
(10)
|
(1,011)
|
(27)
|
1,769
|
37
|
—
|
—
|
Transfers from Stage 3
|
195
|
16
|
403
|
22
|
(598)
|
(38)
|
—
|
—
|
Business activity in the period
|
23,213
|
43
|
933
|
29
|
205
|
29
|
24,351
|
101
|
Refinements
to models used for calculation3
|
—
|
(61)
|
—
|
174
|
—
|
—
|
—
|
113
|
Net
drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes4
|
2,079
|
(179)
|
(1,618)
|
(73)
|
(667)
|
405
|
(206)
|
153
|
Final repayments
|
(23,149)
|
(43)
|
(2,689)
|
(46)
|
(406)
|
(65)
|
(26,244)
|
(154)
|
Disposals2
|
(386)
|
(3)
|
(114)
|
(26)
|
(108)
|
(99)
|
(608)
|
(128)
|
Write-offs
|
—
|
—
|
—
|
—
|
(213)
|
(213)
|
(213)
|
(213)
|
As at 31 December 2023
|
112,505
|
287
|
13,302
|
414
|
2,554
|
598
|
128,361
|
1,299
|
1
|
Transfers to assets held for sale reported within Retail other
relate to the German consumer finance business
portfolio.
|
2
|
The £134m of disposals reported within Retail other include
£64m part sale of Wealth portfolio in Italy and £70m of
debt sales undertaken during the year. The £608m of disposals
reported within Corporate loans relate to debt sales undertaken
during the year.
|
3
|
Refinements to models used for calculation reported within
Corporate loans include a £93m movement in Corporate and
Investment Bank and £20m movement in Barclaycard Payments.
These reflect model enhancements made during the year. Barclays
continually reviews the output of models to determine accuracy of
the ECL calculation including review of model monitoring, external
benchmarking and experience of model operation over an extended
period of time. This helps to ensure that the models used continue
to reflect the risks inherent across the businesses.
|
4
|
'Net drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes' reported within Corporate
loans also include assets of £0.8bn derecognised due to
payment received on defaulted loans from government guarantees
issued under government’s Bounce Back Loans
Scheme.
|
Reconciliation of ECL movement to impairment charge/(release) for
the period
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
23
|
32
|
33
|
88
|
Retail credit cards
|
80
|
51
|
1,366
|
1,497
|
Retail other
|
(21)
|
(16)
|
133
|
96
|
Corporate loans
|
(171)
|
16
|
368
|
213
|
ECL movements excluding assets held for sale, disposals and
write-offs1
|
(89)
|
83
|
1,900
|
1,894
|
ECL
movement on loan
commitments and other financial guarantees
|
(72)
|
(28)
|
21
|
(79)
|
ECL
movement on other financial assets
|
6
|
(7)
|
(11)
|
(12)
|
ECL movement on debt securities
|
2
|
(17)
|
—
|
(15)
|
Recoveries
and reimbursements2
|
4
|
(4)
|
(73)
|
(73)
|
Total
exchange and other adjustments
|
|
|
|
166
|
Total income statement charge for the period
|
|
|
|
1,881
|
1
|
In 2023, gross write-offs amounted to £1,168m (2022: £1,620m) and post write-off recoveries
amounted to £44m (2022:
£64m). Net write-offs
represent gross write-offs less post write-off recoveries and
amounted to £1,124m (2022:
£1,556m).
|
2
|
Recoveries and reimbursements include £29m for reimbursements expected to be
received under the arrangement where Group has entered into
financial guarantee contracts which provide credit protection over
certain assets with third parties and cash recoveries of previously
written off amounts of £44m.
|
Loan commitments and financial guarantees
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Gross
exposure
|
ECL
|
Retail mortgages
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2023
|
11,714
|
—
|
450
|
—
|
6
|
—
|
12,170
|
—
|
Net transfers between stages
|
(62)
|
—
|
53
|
—
|
9
|
—
|
—
|
—
|
Business activity in the period
|
4,184
|
—
|
—
|
—
|
—
|
—
|
4,184
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(7,669)
|
—
|
(11)
|
—
|
(11)
|
—
|
(7,691)
|
—
|
Limit management and final repayments
|
(391)
|
—
|
(44)
|
—
|
—
|
—
|
(435)
|
—
|
As at 31 December 2023
|
7,776
|
—
|
448
|
—
|
4
|
—
|
8,228
|
—
|
|
|
|
|
|
|
|
|
|
Retail credit cards1
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
144,957
|
50
|
5,435
|
83
|
228
|
—
|
150,620
|
133
|
Net transfers between stages
|
448
|
61
|
(538)
|
(61)
|
90
|
—
|
—
|
—
|
Business activity in the period
|
19,098
|
16
|
224
|
13
|
1
|
—
|
19,323
|
29
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(5,863)
|
(59)
|
(1,769)
|
53
|
(101)
|
—
|
(7,733)
|
(6)
|
Limit management and final repayments
|
(13,849)
|
(9)
|
(545)
|
(34)
|
(76)
|
—
|
(14,470)
|
(43)
|
As at 31 December 2023
|
144,791
|
59
|
2,807
|
54
|
142
|
—
|
147,740
|
113
|
|
|
|
|
|
|
|
|
|
Retail other1
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
10,427
|
5
|
520
|
—
|
80
|
—
|
11027
|
5
|
Net transfers between stages
|
(171)
|
—
|
140
|
—
|
31
|
—
|
—
|
—
|
Business activity in the period
|
1,639
|
—
|
1
|
—
|
4
|
—
|
1,644
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(1,690)
|
1
|
(93)
|
2
|
(59)
|
—
|
(1,842)
|
3
|
Limit management and final repayments
|
(1,598)
|
—
|
(33)
|
—
|
(12)
|
—
|
(1,643)
|
—
|
As at 31 December 2023
|
8,607
|
6
|
535
|
2
|
44
|
—
|
9,186
|
8
|
|
|
|
|
|
|
|
|
|
Corporate loans
|
|
|
|
|
|
|
|
|
As at 1 January 2023
|
205,847
|
190
|
24,289
|
232
|
866
|
23
|
231,002
|
445
|
Net transfers between stages
|
2,416
|
23
|
(2,423)
|
(23)
|
7
|
—
|
—
|
—
|
Business activity in the period
|
54,807
|
27
|
2,271
|
43
|
39
|
2
|
57,117
|
72
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
3,556
|
(106)
|
97
|
25
|
206
|
24
|
3,859
|
(57)
|
Limit management and final repayments
|
(53,737)
|
(26)
|
(3,816)
|
(46)
|
(271)
|
(5)
|
(57,824)
|
(77)
|
As at 31 December 2023
|
212,889
|
108
|
20,418
|
231
|
847
|
44
|
234,154
|
383
|
1.
|
Loan commitments reported within Retail credit cards and Retail
other also include financial assets classified as held for
sale
|
Management adjustments to models for impairment
Management adjustments to impairment models are applied in order to
factor in certain conditions or changes in policy that are not
fully incorporated into the impairment models, or to reflect
additional facts and circumstances at the period end. Management
adjustments are reviewed and incorporated into future model
development where applicable.
Management adjustments are captured through “Economic
uncertainty” and “Other” adjustments, and are
presented by product and geography below:
Management adjustments to models for impairment
allowance presented by product and
geography1
|
Impairment allowance pre management
adjustments2
|
Economic uncertainty adjustments
|
Other adjustments
|
Management adjustments
|
Total impairment
allowance3
|
Proportion of Management adjustments to total impairment
allowance
|
|
|
(a)
|
(b)
|
(a+b)
|
|
|
As at 31 December 2023
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Retail mortgages
|
54
|
57
|
121
|
178
|
232
|
76.7
|
Retail credit cards
|
700
|
45
|
(9)
|
36
|
736
|
4.9
|
Retail other
|
251
|
9
|
62
|
71
|
322
|
22.0
|
Corporate loans
|
761
|
71
|
10
|
81
|
842
|
9.6
|
Total UK
|
1,766
|
182
|
184
|
366
|
2,132
|
17.2
|
Retail mortgages
|
354
|
—
|
(3)
|
(3)
|
351
|
(0.9)
|
Retail credit cards
|
2,855
|
—
|
8
|
8
|
2,863
|
0.3
|
Retail other
|
45
|
—
|
(6)
|
(6)
|
39
|
(15.4)
|
Corporate loans
|
828
|
16
|
(4)
|
12
|
840
|
1.4
|
Total Rest of the World
|
4,082
|
16
|
(5)
|
11
|
4,093
|
0.3
|
Total
|
5,848
|
198
|
179
|
377
|
6,225
|
6.1
|
Debt securities at amortised cost
|
27
|
—
|
—
|
—
|
27
|
—
|
Total including debt securities at amortised cost
|
5,875
|
198
|
179
|
377
|
6,252
|
6.0
|
|
|
|
|
|
|
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Retail mortgages
|
39
|
4
|
85
|
89
|
128
|
69.5
|
Retail credit cards
|
679
|
93
|
32
|
125
|
804
|
15.5
|
Retail other
|
257
|
23
|
80
|
103
|
360
|
28.6
|
Corporate loans
|
682
|
249
|
166
|
415
|
1,097
|
37.8
|
Total UK
|
1,657
|
369
|
363
|
732
|
2,389
|
30.6
|
Retail mortgages
|
388
|
—
|
—
|
—
|
388
|
—
|
Retail credit cards
|
2,307
|
—
|
55
|
55
|
2,362
|
2.3
|
Retail other
|
198
|
2
|
19
|
21
|
219
|
9.6
|
Corporate loans
|
1,058
|
(54)
|
(229)
|
(283)
|
775
|
(36.5)
|
Total Rest of the World
|
3,951
|
(52)
|
(155)
|
(207)
|
3,744
|
(5.5)
|
Total
|
5,608
|
317
|
208
|
525
|
6,133
|
8.6
|
Debt securities at amortised cost
|
42
|
—
|
—
|
—
|
42
|
—
|
Total including debt securities at amortised cost
|
5,650
|
317
|
208
|
525
|
6,175
|
8.5
|
1
|
Positive values reflect an increase in impairment allowance and
negative values reflect a reduction in the impairment
allowance.
|
2
|
Includes £5.2bn (2022: £4.8bn) of modelled ECL,
£0.4bn (2022: £0.4bn) of individually assessed
impairments and £0.3bn (2022: £0.5bn) ECL from
non-modelled exposures and debt securities.
|
3
|
Total impairment allowance consists of ECL stock on drawn and
undrawn exposure.
|
Economic uncertainty adjustments presented by stage
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31 December 2023
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
12
|
32
|
13
|
57
|
Retail credit cards
|
8
|
37
|
—
|
45
|
Retail other
|
3
|
6
|
—
|
9
|
Corporate loans
|
48
|
12
|
11
|
71
|
Total UK
|
71
|
87
|
24
|
182
|
Retail mortgages
|
—
|
—
|
—
|
—
|
Retail credit cards
|
—
|
—
|
—
|
—
|
Retail other
|
—
|
—
|
—
|
—
|
Corporate loans
|
4
|
12
|
—
|
16
|
Total Rest of the World
|
4
|
12
|
—
|
16
|
Total
|
75
|
99
|
24
|
198
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
Retail mortgages
|
1
|
3
|
—
|
4
|
Retail credit cards
|
17
|
76
|
—
|
93
|
Retail other
|
7
|
15
|
1
|
23
|
Corporate loans
|
189
|
60
|
—
|
249
|
Total UK
|
214
|
154
|
1
|
369
|
Retail mortgages
|
—
|
—
|
—
|
—
|
Retail credit cards
|
—
|
—
|
—
|
—
|
Retail other
|
—
|
2
|
—
|
2
|
Corporate loans
|
(8)
|
(46)
|
—
|
(54)
|
Total Rest of the World
|
(8)
|
(44)
|
—
|
(52)
|
Total
|
206
|
110
|
1
|
317
|
Economic uncertainty adjustments
Models have been developed with data from non-inflationary periods
establishing a relationship between input variables and customer
delinquency based on past behaviour. As such there is a risk that
the modelled output fails to capture the appropriate response to
changes in macroeconomic variables including higher interest rates
and continuing inflationary stress with modelled impairment
provisions impacted by uncertainty.
This uncertainty continues to be captured in two ways. Firstly,
customer uncertainty: the identification of customers and clients
who may be more vulnerable to economic instability; and secondly,
model uncertainty: to capture the impact from model limitations and
sensitivities to specific macroeconomic parameters which are
applied at a portfolio level.
Economic uncertainty adjustments have decreased from last year
following the re-build of UK cards and certain CIB impairment
models which better capture the macroeconomic outlook. Furthermore,
adjustments have been reassessed to capture affordability headwinds
in UK retail lending.
The balance as at 31 December 2023 is £198m (2022: £317m)
and includes:
Customer and client uncertainty provisions of £166m (2022:
£423m):
●UK
retail lending includes
adjustments applied to customers considered most vulnerable to
affordability pressures.
●Retail mortgages (UK) £25m
(2022: £4m): The increase
primarily reflects the risk of borrowers refinancing onto higher
rates in the medium term.
●Retail credit cards
(UK) £45m (2022:
£93m): The reduction
reflects the re-build of UK cards impairment models which better
capture sensitivity to movements in interest rates and
inflation.
●Retail other
(UK) £9m (2022:
£23m): The reduction
reflects customer resilience to affordability
headwinds.
●Corporate loans £87m
(2022: £301m): This
includes an adjustment of £71m in UK to reflect possible cross default risk on
Barclays’ lending in respect of clients who have taken bounce
back loans and £16m in Rest of the World (ROW) to provide for
downside uncertainties on European Corporates reflecting recent
changes in the macroeconomic outlook.
The reduction of £(214)m in UK and ROW is informed by
retirement of an adjustment for high risk sectors following a
granular credit risk assessment, and re-build of certain CIB
impairment models which more appropriately capture downside
risk.
Model uncertainty provisions of £32m (2022:
£(106)m):
●Retail mortgages
(UK) £32m (2022: nil):
This includes an adjustment to correct
for higher recovery expectations impacted by model oversensitivity
to certain macroeconomic variables.
●Corporate loans £nil
(2022: £(106)m): The
adjustment held in the previous year to correct for model
oversensitivity has been retired following the re-build of certain
CIB impairment models which more appropriately capture the
macroeconomic outlook.
Other adjustments
Other adjustments are operational in nature and are expected to
remain in place until they can be reflected in the underlying
models. These adjustments result from data limitations and model
performance related issues identified through model monitoring and
other established governance processes.
Other adjustments of £179m (2022: £208m)
includes:
Adjustments for definition of default (DOD) under the Capital
Requirements Regulation and model monitoring in Retail mortgages,
Retail other and Corporate loans.
●Retail mortgages
(UK) £121m (2022:
£85m): The increase
reflects re-sizing of an adjustment for DOD and an ECL provision
for Kensington Mortgages which was acquired during the
year.
●Retail credit
cards:
–UK £(9)m (2022:
£32m): The reduction is
informed by retirement of operational adjustments following the
re-build of UK cards impairment models.
–ROW £8m (2022:
£55m): The reduction is
informed by retirement of an adjustment in US cards for high-risk
account management (HRAM) accounts following model remediation
during the year.
●Retail
other:
–UK £62m (2022:
£80m): The underlying
adjustments were re-sized and remain broadly in line with the
previous year.
–ROW, £(6)m (2022:
£19m): The reduction is
informed by the German consumer finance business portfolio
classified as assets held for sale.
●Corporate
loans:
–UK £10m (2022:
£166m): The reduction is
informed by retirement of model monitoring adjustments in CIB
following the re-build of certain impairment models. Further,
operational adjustments have been introduced during the year to
remediate conservative modelled recovery expectations in the ESHLA
portfolio.
–ROW £(4)m (2022:
£(229)m): The previously
held adjustments linked to model monitoring and ECL
sensitivity to the macroeconomic variable for Federal Tax Receipts
have been retired following the re-build of certain CIB impairment
models.
Measurement uncertainty
Scenarios used to calculate the Group’s ECL charge were
refreshed in Q423 with the Baseline scenario reflecting the latest
consensus macroeconomic forecasts available at the time of the
scenario refresh. In the Baseline scenario, whilst UK and US
economies avoid a recession, GDP growth remains weak in the coming
quarters and beyond as restrictive monetary policies, which impact
economies with a lag, continue to restrain growth. Having peaked in
2022, consumer price inflation in key regions continues to ease
over 2023 and 2024. The UK and US unemployment rates rise to 4.8%
and 4.4% respectively over 2024 and then stabilise. With the
significant decline in inflationary pressures, major central banks
refrain from further interest rate increases. UK house prices
continue to decline in 2024 before stabilising and resuming the
upward trend from 2025. The housing market in the US remains more
resilient, with house prices continuing to grow.
In the Downside 2 scenario, inflationary pressures are assumed to
intensify again, mainly driven by strong wage growth. Central banks
raise rates further, with the UK bank rate and the US federal fund
rate each reaching 8.5% in Q324. High interest rates suddenly bring
stress into the financial and non-financial system, causing
joblessness to spike and triggering a housing markets crisis and
central banks are forced cut interest rates aggressively. Falling
demand reduces UK and US GDP and headline inflation drops to close
to zero. In the Upside 2 scenario, tighter and more productive
labour markets help to accelerate economic growth whilst keeping
inflationary pressures under control. With inflation quickly
returning to target, central banks lower interest rates, further
stimulating aggregate demand and GDP growth.
The methodology for estimating scenario probability weights
involves simulating a range of future paths for UK and US GDP using
historical data with the five scenarios mapped against the
distribution of these future paths. The median is centred around
the Baseline with scenarios further from the Baseline attracting a
lower weighting before the five weights are normalised to total
100%. The increases in the Downside scenario weightings reflected a
reduction in GDP stress severity in the Downside scenarios which
brought the GDP of these scenarios closer to the Baseline. The
increases in the Upside scenario weightings were driven by the
improvement in actual GDP and the Baseline scenario, bringing the
Baseline scenario closer to the Upside scenarios. For further
details see page 42.
The economic uncertainty adjustments of £0.2bn (2022:
£0.3bn) have been applied as overlays to the modelled ECL
output. These adjustments consist of a customer and client
uncertainty provision of £0.2bn (2022: £0.4bn) which has
been applied to customers and clients considered most vulnerable to
affordability pressures, and a model uncertainty adjustment of
£0.0bn (2022: £(0.1)bn).
The following tables show the key macroeconomic variables used in
the five scenarios (5 year annual paths) and the probability
weights applied to each scenario.
Macroeconomic variables used in the calculation of ECL
|
As at 31.12.23
|
2023
|
2024
|
2025
|
2026
|
2027
|
Baseline
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
0.5
|
0.3
|
1.2
|
1.6
|
1.6
|
UK
unemployment2
|
4.2
|
4.7
|
4.7
|
4.8
|
5.0
|
UK
HPI3
|
(3.3)
|
(5.1)
|
0.7
|
3.1
|
5.3
|
UK bank rate
|
4.7
|
4.9
|
4.1
|
3.8
|
3.5
|
US
GDP1
|
2.4
|
1.3
|
1.7
|
1.9
|
1.9
|
US
unemployment4
|
3.7
|
4.3
|
4.3
|
4.3
|
4.3
|
US
HPI5
|
5.4
|
3.4
|
3.0
|
3.3
|
3.3
|
US federal funds rate
|
5.1
|
5.0
|
3.9
|
3.8
|
3.8
|
|
|
|
|
|
|
Downside 2
|
|
|
|
|
|
UK
GDP1
|
0.5
|
(1.5)
|
(2.6)
|
2.4
|
1.6
|
UK
unemployment2
|
4.2
|
5.2
|
7.9
|
6.3
|
5.5
|
UK
HPI3
|
(3.3)
|
(19.3)
|
(16.8)
|
14.5
|
12.4
|
UK bank rate
|
4.7
|
6.6
|
1.3
|
1.0
|
1.0
|
US
GDP1
|
2.4
|
(0.6)
|
(2.0)
|
3.1
|
2.0
|
US
unemployment4
|
3.7
|
5.2
|
7.2
|
5.9
|
5.2
|
US
HPI5
|
5.4
|
(6.5)
|
(5.7)
|
7.2
|
6.4
|
US federal funds rate
|
5.1
|
6.3
|
1.8
|
1.5
|
1.5
|
|
|
|
|
|
|
Downside 1
|
|
|
|
|
|
UK
GDP1
|
0.5
|
(0.6)
|
(0.7)
|
2.0
|
1.6
|
UK
unemployment2
|
4.2
|
4.9
|
6.3
|
5.6
|
5.2
|
UK
HPI3
|
(3.3)
|
(12.4)
|
(8.3)
|
8.7
|
8.8
|
UK bank rate
|
4.7
|
5.8
|
2.7
|
2.5
|
2.3
|
US
GDP1
|
2.4
|
0.3
|
(0.2)
|
2.5
|
1.9
|
US
unemployment4
|
3.7
|
4.7
|
5.8
|
5.1
|
4.8
|
US
HPI5
|
5.4
|
(1.7)
|
(1.4)
|
5.2
|
4.8
|
US federal funds rate
|
5.1
|
5.7
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 2
|
|
|
|
|
|
UK
GDP1
|
0.5
|
2.4
|
3.7
|
2.9
|
2.4
|
UK
unemployment2
|
4.2
|
3.9
|
3.5
|
3.6
|
3.6
|
UK
HPI3
|
(3.3)
|
7.8
|
7.6
|
4.5
|
5.6
|
UK bank rate
|
4.7
|
4.3
|
2.7
|
2.5
|
2.5
|
US
GDP1
|
2.4
|
2.8
|
3.1
|
2.8
|
2.8
|
US
unemployment4
|
3.7
|
3.5
|
3.6
|
3.6
|
3.6
|
US
HPI5
|
5.4
|
6.1
|
4.3
|
4.5
|
4.6
|
US federal funds rate
|
5.1
|
4.3
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 1
|
|
|
|
|
|
UK
GDP1
|
0.5
|
1.4
|
2.5
|
2.3
|
2.0
|
UK
unemployment2
|
4.2
|
4.3
|
4.1
|
4.2
|
4.3
|
UK
HPI3
|
(3.3)
|
1.2
|
4.1
|
3.8
|
5.4
|
UK bank rate
|
4.7
|
4.6
|
3.4
|
3.3
|
3.0
|
US
GDP1
|
2.4
|
2.0
|
2.4
|
2.4
|
2.4
|
US
unemployment4
|
3.7
|
3.9
|
3.9
|
4.0
|
4.0
|
US
HPI5
|
5.4
|
4.7
|
3.7
|
3.9
|
3.9
|
US federal funds rate
|
5.1
|
4.7
|
3.5
|
3.3
|
3.3
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
As at 31.12.22
|
2022
|
2023
|
2024
|
2025
|
2026
|
Baseline
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
(0.8)
|
0.9
|
1.8
|
1.9
|
UK
unemployment2
|
3.7
|
4.5
|
4.4
|
4.1
|
4.2
|
UK
HPI3
|
8.4
|
(4.7)
|
(1.7)
|
2.2
|
2.2
|
UK bank rate
|
1.8
|
4.4
|
4.1
|
3.8
|
3.4
|
US
GDP1
|
1.8
|
0.5
|
1.2
|
1.5
|
1.5
|
US
unemployment4
|
3.7
|
4.3
|
4.7
|
4.7
|
4.7
|
US
HPI5
|
11.2
|
1.8
|
1.5
|
2.3
|
2.4
|
US federal funds rate
|
2.1
|
4.8
|
3.6
|
3.1
|
3.0
|
|
|
|
|
|
|
Downside 2
|
|
|
|
|
|
UK
GDP1
|
3.3
|
(3.4)
|
(3.8)
|
2.0
|
2.3
|
UK
unemployment2
|
3.7
|
6.0
|
8.4
|
8.0
|
7.4
|
UK
HPI3
|
8.4
|
(18.3)
|
(18.8)
|
(7.7)
|
8.2
|
UK bank rate
|
1.8
|
7.3
|
7.9
|
6.6
|
5.5
|
US
GDP1
|
1.8
|
(2.7)
|
(3.4)
|
2.0
|
2.6
|
US
unemployment4
|
3.7
|
6.0
|
8.5
|
8.1
|
7.1
|
US
HPI5
|
11.2
|
(3.1)
|
(4.0)
|
(1.9)
|
4.8
|
US federal funds rate
|
2.1
|
6.6
|
6.9
|
5.8
|
4.6
|
|
|
|
|
|
|
Downside 1
|
|
|
|
|
|
UK
GDP1
|
3.3
|
(2.1)
|
(1.5)
|
1.9
|
2.1
|
UK
unemployment2
|
3.7
|
5.2
|
6.4
|
6.0
|
5.8
|
UK
HPI3
|
8.4
|
(11.7)
|
(10.6)
|
(2.8)
|
5.2
|
UK bank rate
|
1.8
|
5.9
|
6.1
|
5.3
|
4.6
|
US
GDP1
|
1.8
|
(1.1)
|
(1.1)
|
1.7
|
2.1
|
US
unemployment4
|
3.7
|
5.1
|
6.6
|
6.4
|
5.9
|
US
HPI5
|
11.2
|
(0.7)
|
(1.3)
|
0.2
|
3.6
|
US federal funds rate
|
2.1
|
5.8
|
5.4
|
4.4
|
3.9
|
|
|
|
|
|
|
Upside 2
|
|
|
|
|
|
UK
GDP1
|
3.3
|
2.8
|
3.7
|
2.9
|
2.4
|
UK
unemployment2
|
3.7
|
3.5
|
3.4
|
3.4
|
3.4
|
UK
HPI3
|
8.4
|
8.7
|
7.5
|
4.4
|
4.2
|
UK bank rate
|
1.8
|
3.1
|
2.6
|
2.5
|
2.5
|
US
GDP1
|
1.8
|
3.3
|
3.5
|
2.8
|
2.8
|
US
unemployment4
|
3.7
|
3.3
|
3.3
|
3.3
|
3.3
|
US
HPI5
|
11.2
|
5.8
|
5.1
|
4.5
|
4.5
|
US federal funds rate
|
2.1
|
3.6
|
2.9
|
2.8
|
2.8
|
|
|
|
|
|
|
Upside 1
|
|
|
|
|
|
UK
GDP1
|
3.3
|
1.0
|
2.3
|
2.4
|
2.1
|
UK
unemployment2
|
3.7
|
4.0
|
3.9
|
3.8
|
3.8
|
UK
HPI3
|
8.4
|
1.8
|
2.9
|
3.3
|
3.2
|
UK bank rate
|
1.8
|
3.5
|
3.3
|
3.0
|
2.8
|
US
GDP1
|
1.8
|
1.9
|
2.3
|
2.2
|
2.2
|
US
unemployment4
|
3.7
|
3.8
|
4.0
|
4.0
|
4.0
|
US
HPI5
|
11.2
|
3.8
|
3.3
|
3.4
|
3.4
|
US federal funds rate
|
2.1
|
3.9
|
3.4
|
3.0
|
3.0
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
Scenario probability weighting
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
%
|
%
|
%
|
%
|
%
|
As at 31.12.23
|
|
|
|
|
|
Scenario probability weighting
|
13.8
|
24.7
|
32.7
|
18.3
|
10.8
|
As at 31.12.22
|
|
|
|
|
|
Scenario probability weighting
|
10.9
|
23.1
|
39.4
|
17.6
|
9.0
|
Specific bases show the most extreme position of each variable in
the context of the downside/upside scenarios, for example, the
highest unemployment for downside scenarios, average unemployment
for baseline scenarios and lowest unemployment for upside
scenarios. GDP and HPI downside and upside scenario data represents
the lowest and highest cumulative position relative to the start
point, in the 20 quarter period.
Macroeconomic variables (specific
bases)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.23
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
13.4
|
9.6
|
1.1
|
(1.3)
|
(4.1)
|
UK
unemployment3
|
3.5
|
3.9
|
4.7
|
6.5
|
8.3
|
UK
HPI4
|
23.8
|
11.5
|
0.1
|
(22.5)
|
(35.0)
|
UK bank rate
|
2.5
|
3.0
|
4.2
|
6.8
|
8.5
|
US
GDP2
|
15.1
|
12.3
|
1.8
|
0.6
|
(1.7)
|
US
unemployment3
|
3.4
|
3.5
|
4.2
|
5.9
|
7.5
|
US
HPI4
|
27.4
|
23.5
|
3.7
|
0.4
|
(7.6)
|
US federal funds rate
|
2.8
|
3.3
|
4.3
|
6.8
|
8.5
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
13.9
|
9.4
|
1.4
|
(3.2)
|
(6.8)
|
UK
unemployment3
|
3.4
|
3.6
|
4.2
|
6.6
|
8.5
|
UK
HPI4
|
37.8
|
21.0
|
1.2
|
(17.9)
|
(35.0)
|
UK bank rate
|
0.5
|
0.5
|
3.5
|
6.3
|
8.0
|
US
GDP2
|
14.1
|
9.6
|
1.3
|
(2.5)
|
(6.3)
|
US
unemployment3
|
3.3
|
3.6
|
4.4
|
6.7
|
8.6
|
US
HPI4
|
35.0
|
27.5
|
3.8
|
3.7
|
0.2
|
US federal funds rate
|
0.1
|
0.1
|
3.3
|
6.0
|
7.0
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index. 20 quarter period starts from Q123 (2022:
Q122).
|
2
|
Maximum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Upside scenarios; 5-year yearly average CAGR in Baseline;
minimum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Downside scenarios.
|
3
|
Lowest quarter in 20 quarter period in Upside scenarios; 5-year
average in Baseline; highest quarter 20 quarter period in Downside
scenarios.
|
4
|
Maximum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Upside scenarios; 5-year quarter end CAGR in Baseline;
minimum growth relative to Q422 (2022: Q421), based on 20 quarter
period in Downside scenarios.
|
Average basis represents the average quarterly value of variables
in the 20 quarter period with GDP and HPI based on yearly average
and quarterly CAGRs respectively.
Macroeconomic variables (5-year
averages)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.23
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
2.4
|
1.7
|
1.1
|
0.6
|
0.1
|
UK
unemployment3
|
3.7
|
4.2
|
4.7
|
5.2
|
5.8
|
UK
HPI4
|
4.4
|
2.2
|
0.1
|
(1.7)
|
(3.5)
|
UK bank rate
|
3.3
|
3.8
|
4.2
|
3.6
|
2.9
|
US
GDP2
|
2.8
|
2.3
|
1.8
|
1.4
|
0.9
|
US
unemployment3
|
3.6
|
3.9
|
4.2
|
4.8
|
5.4
|
US
HPI4
|
5.0
|
4.3
|
3.7
|
2.4
|
1.2
|
US federal funds rate
|
3.6
|
4.0
|
4.3
|
3.9
|
3.2
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
3.0
|
2.2
|
1.4
|
0.7
|
—
|
UK
unemployment3
|
3.5
|
3.8
|
4.2
|
5.4
|
6.7
|
UK
HPI4
|
6.6
|
3.9
|
1.2
|
(2.6)
|
(6.4)
|
UK bank rate
|
2.5
|
2.9
|
3.5
|
4.7
|
5.8
|
US
GDP2
|
2.9
|
2.1
|
1.3
|
0.7
|
—
|
US
unemployment3
|
3.4
|
3.9
|
4.4
|
5.5
|
6.7
|
US
HPI4
|
6.2
|
5.0
|
3.8
|
2.5
|
1.2
|
US federal funds rate
|
2.8
|
3.1
|
3.3
|
4.3
|
5.2
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index.
|
2
|
5-year yearly average CAGR, starting 2022 (2022:
2021).
|
3
|
5-year average. Period based on 20 quarters from Q123 (2022:
Q122).
|
4
|
5-year quarter end CAGR, starting Q422 (2022: Q421).
|
ECL under 100% weighted scenarios for modelled
portfolios
The table below shows the modelled ECL assuming each of the five
modelled scenarios are 100% weighted with the dispersion of results
around the Baseline, highlighting the impact on exposure and ECL
across the scenarios. Model exposure uses exposure at default (EAD)
values and is not directly comparable to gross exposure used in
prior disclosures.
|
Scenarios
|
As at 31 December 2023
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
145,226
|
147,415
|
146,653
|
145,405
|
142,543
|
138,925
|
Retail
credit cards2
|
66,512
|
66,459
|
66,482
|
66,497
|
66,580
|
66,580
|
Retail
other2
|
8,749
|
8,915
|
8,841
|
8,758
|
8,631
|
8,479
|
Corporate loans
|
175,282
|
179,567
|
177,923
|
175,903
|
172,328
|
167,541
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
9
|
4
|
5
|
7
|
11
|
22
|
Retail
credit cards2
|
562
|
529
|
545
|
561
|
584
|
605
|
Retail
other2
|
32
|
31
|
32
|
32
|
32
|
31
|
Corporate loans
|
275
|
243
|
257
|
270
|
298
|
318
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
—
|
—
|
—
|
—
|
—
|
—
|
Retail credit cards
|
0.8
|
0.8
|
0.8
|
0.8
|
0.9
|
0.9
|
Retail other
|
0.4
|
0.3
|
0.4
|
0.4
|
0.4
|
0.4
|
Corporate loans
|
0.2
|
0.1
|
0.1
|
0.2
|
0.2
|
0.2
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
20,615
|
17,769
|
18,702
|
20,149
|
23,836
|
28,822
|
Retail
credit cards2
|
7,076
|
6,897
|
6,976
|
7,064
|
7,183
|
7,387
|
Retail
other2
|
1,382
|
1,216
|
1,290
|
1,373
|
1,500
|
1,653
|
Corporate loans
|
24,374
|
19,919
|
21,621
|
23,763
|
27,445
|
32,375
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
41
|
23
|
27
|
34
|
59
|
123
|
Retail
credit cards2
|
1,684
|
1,554
|
1,609
|
1,668
|
1,775
|
1,922
|
Retail
other2
|
85
|
72
|
78
|
84
|
95
|
105
|
Corporate loans
|
663
|
509
|
565
|
633
|
782
|
1,031
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
0.2
|
0.1
|
0.1
|
0.2
|
0.2
|
0.4
|
Retail credit cards
|
23.8
|
22.5
|
23.1
|
23.6
|
24.7
|
26.0
|
Retail other
|
6.2
|
5.9
|
6.0
|
6.1
|
6.3
|
6.4
|
Corporate loans
|
2.7
|
2.6
|
2.6
|
2.7
|
2.8
|
3.2
|
Stage 3 Model Exposure (£m)3
|
|
|
|
|
|
|
Retail mortgages
|
1,672
|
1,672
|
1,672
|
1,672
|
1,672
|
1,672
|
Retail
credit cards2
|
1,827
|
1,827
|
1,827
|
1,827
|
1,827
|
1,827
|
Retail
other2
|
164
|
164
|
164
|
164
|
164
|
164
|
Corporate loans
|
3,436
|
3,436
|
3,436
|
3,436
|
3,436
|
3,436
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
333
|
308
|
316
|
325
|
351
|
393
|
Retail
credit cards2
|
1,315
|
1,279
|
1,296
|
1,313
|
1,341
|
1,366
|
Retail
other2
|
95
|
94
|
94
|
95
|
96
|
97
|
Corporate
loans4
|
77
|
71
|
73
|
75
|
82
|
89
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
19.9
|
18.4
|
18.9
|
19.4
|
21.0
|
23.5
|
Retail credit cards
|
72.0
|
70.0
|
70.9
|
71.9
|
73.4
|
74.8
|
Retail other
|
57.9
|
57.3
|
57.3
|
57.9
|
58.5
|
59.1
|
Corporate
loans4
|
2.2
|
2.1
|
2.1
|
2.2
|
2.4
|
2.6
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
383
|
335
|
348
|
366
|
421
|
538
|
Retail
credit cards2
|
3,561
|
3,362
|
3,450
|
3,542
|
3,700
|
3,893
|
Retail
other2
|
212
|
197
|
204
|
211
|
223
|
233
|
Corporate
loans4
|
1,015
|
823
|
895
|
978
|
1,162
|
1,438
|
Total Model ECL
|
5,171
|
4,717
|
4,897
|
5,097
|
5,506
|
6,102
|
Reconciliation to total ECL
|
£m
|
Total weighted model ECL
|
5,171
|
ECL
from individually assessed exposures4
|
401
|
ECL from non-modelled exposures and others
|
276
|
ECL from debt securities at amortised cost
|
27
|
ECL from post model management adjustments
|
377
|
Of which: ECL from economic uncertainty adjustments
|
198
|
Total ECL
|
6,252
|
1
|
Model exposures are allocated to a stage based on an individual
scenario rather than a probability-weighted approach as required
for Barclays reported impairment allowances. As a result, it is not
possible to back solve the final reported weighted ECL from
individual scenarios given balances may be assigned to a different
stage dependent on the scenario.
|
2
|
Model exposures and ECL reported within Retail credit cards and
Retail other exclude the German consumer finance business portfolio
which has now been classified as assets held for sale.
|
3
|
Model exposures allocated to Stage 3 does not change in any of the
scenarios as the transition criteria relies only on an observable
evidence of default as at 31 December 2023 and not on macroeconomic
scenario.
|
4
|
Material corporate loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £401m is
reported as an individually assessed impairment in the
reconciliation table.
|
The use of five scenarios with associated weightings results in a
total weighted ECL uplift from the Baseline ECL of
1.5%.
Retail mortgages: Total
weighted ECL of £383m represents a 4.6% increase over the
Baseline ECL (£366m) with coverage ratios remaining steady
across the Upside scenarios, Baseline and Downside 1 scenario.
Under the Downside 2 scenario, total ECL increases to £538m
driven by a significant fall in UK HPI.
Retail credit cards: Total
weighted ECL of £3,561m is broadly aligned to the Baseline ECL
(£3,542m). Total ECL increases to £3,893m under the
Downside 2 scenario, driven by an increase in UK and US
unemployment rate.
Retail other: Total weighted
ECL of £212m is aligned to the Baseline ECL (£211m).
Total ECL increases to £233m under the Downside 2 scenario,
largely driven by an increase in UK unemployment
rate.
Corporate loans: Total weighted
ECL of £1,015m represents a 3.8% increase over the Baseline
ECL (£978m). Total ECL increases to £1,438m under the
Downside 2 scenario, driven by a decrease in UK and US
GDP.
|
Scenarios
|
As at 31 December 2022
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
144,701
|
147,754
|
146,873
|
145,322
|
142,599
|
138,619
|
Retail credit cards
|
67,204
|
67,622
|
67,352
|
67,080
|
66,908
|
66,636
|
Retail other
|
12,282
|
12,428
|
12,341
|
12,235
|
12,111
|
11,986
|
Corporate loans
|
155,794
|
163,699
|
161,070
|
157,710
|
150,435
|
138,226
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
7
|
3
|
3
|
4
|
9
|
30
|
Retail credit cards
|
509
|
493
|
503
|
512
|
517
|
521
|
Retail other
|
52
|
45
|
49
|
52
|
54
|
55
|
Corporate loans
|
341
|
259
|
290
|
325
|
397
|
443
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
—
|
—
|
—
|
—
|
—
|
—
|
Retail credit cards
|
0.8
|
0.7
|
0.7
|
0.8
|
0.8
|
0.8
|
Retail other
|
0.4
|
0.4
|
0.4
|
0.4
|
0.4
|
0.5
|
Corporate loans
|
0.2
|
0.2
|
0.2
|
0.2
|
0.3
|
0.3
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Retail mortgages
|
18,723
|
15,670
|
16,551
|
18,102
|
20,825
|
24,805
|
Retail credit cards
|
7,611
|
6,551
|
7,118
|
7,691
|
8,313
|
9,062
|
Retail other
|
1,559
|
1,386
|
1,485
|
1,601
|
1,741
|
1,881
|
Corporate loans
|
24,935
|
16,858
|
19,550
|
23,031
|
30,432
|
42,837
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
33
|
15
|
18
|
23
|
45
|
151
|
Retail credit cards
|
1,624
|
1,361
|
1,487
|
1,624
|
1,811
|
2,032
|
Retail other
|
124
|
96
|
109
|
124
|
144
|
160
|
Corporate loans
|
610
|
399
|
470
|
569
|
816
|
1,303
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
0.2
|
0.1
|
0.1
|
0.1
|
0.2
|
0.6
|
Retail credit cards
|
21.3
|
20.8
|
20.9
|
21.1
|
21.8
|
22.4
|
Retail other
|
8.0
|
6.9
|
7.3
|
7.7
|
8.3
|
8.5
|
Corporate loans
|
2.4
|
2.4
|
2.4
|
2.5
|
2.7
|
3.0
|
Stage 3 Model Exposure (£m)2
|
|
|
|
|
|
|
Retail mortgages
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
Retail credit cards
|
1,354
|
1,354
|
1,354
|
1,354
|
1,354
|
1,354
|
Retail other
|
216
|
216
|
216
|
216
|
216
|
216
|
Corporate loans
|
2,891
|
2,891
|
2,891
|
2,891
|
2,891
|
2,891
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
332
|
311
|
317
|
323
|
347
|
405
|
Retail credit cards
|
880
|
861
|
871
|
881
|
893
|
902
|
Retail other
|
132
|
129
|
131
|
132
|
134
|
136
|
Corporate
loans3
|
70
|
66
|
68
|
70
|
78
|
85
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Retail mortgages
|
21.4
|
20.0
|
20.4
|
20.8
|
22.3
|
26.1
|
Retail credit cards
|
65.0
|
63.6
|
64.3
|
65.1
|
66.0
|
66.6
|
Retail other
|
61.1
|
59.7
|
60.6
|
61.1
|
62.0
|
63.0
|
Corporate
loans3
|
2.4
|
2.3
|
2.4
|
2.4
|
2.7
|
2.9
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Retail mortgages
|
372
|
329
|
338
|
350
|
401
|
586
|
Retail credit cards
|
3,013
|
2,715
|
2,861
|
3,017
|
3,221
|
3,455
|
Retail other
|
308
|
270
|
289
|
308
|
332
|
351
|
Corporate
loans3
|
1,021
|
724
|
828
|
964
|
1,291
|
1,831
|
Total Model ECL
|
4,714
|
4,038
|
4,316
|
4,639
|
5,245
|
6,223
|
Reconciliation to total ECL
|
£m
|
Total weighted model ECL
|
4,714
|
ECL
from individually assessed exposures3
|
434
|
ECL from non-modelled exposures and others
|
460
|
ECL from debt securities at amortised cost
|
42
|
ECL from post model management adjustments
|
525
|
Of which: ECL from economic uncertainty adjustments
|
317
|
Total ECL
|
6,175
|
1
|
Model exposures are allocated to a stage based on an individual
scenario rather than a probability-weighted approach, as required
for Barclays reported impairment allowances. As a result, it is not
possible to back solve the final reported weighted ECL from
individual scenarios given balances may be assigned to a different
stage dependent on the scenario.
|
2
|
Model exposures allocated to Stage 3 does not change in any of the
scenarios as the transition criteria relies only on an observable
evidence of default as at 31 December 2022 and not on macroeconomic
scenario.
|
3
|
Material corporate loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £434m is
reported as an individually assessed impairment in the
reconciliation table.
|
Analysis of specific portfolios and asset types
Secured home loans
The UK
home loan portfolio primarily comprises first lien mortgages and
accounts for 95% (December
2022: 93%) of the Group’s
total home loans balance.
|
Barclays UK
|
Home loans principal portfolios
|
As at 31.12.23
|
As at 31.12.22
|
Gross loans and advances (£m)
|
163,639
|
162,380
|
90 day arrears rate, excluding recovery book (%)
|
0.2
|
0.1
|
Annualised gross charge-off rates - 180 days past due
(%)
|
0.5
|
0.5
|
Recovery book proportion of outstanding balances (%)
|
0.6
|
0.5
|
Recovery
book impairment coverage ratio (%)1
|
7.2
|
5.2
|
|
|
|
Average marked to market LTV
|
|
|
Balance weighted %
|
53.6
|
50.4
|
Valuation weighted %
|
40.0
|
37.3
|
|
|
|
New lending
|
Year ended 31.12.23
|
Year ended 31.12.22
|
New home loan bookings (£m)
|
22,669
|
30,307
|
New home loan proportion > 90% LTV (%)
|
0.6
|
2.8
|
Average LTV on new home loans: balance weighted (%)
|
62.6
|
68.1
|
Average LTV on new home loans: valuation weighted (%)
|
53.8
|
59.6
|
1
|
Recovery Book Impairment Coverage Ratio excludes KMC.
|
Home loans principal portfolios
– distribution of balances by LTV1
|
Distribution of balances
|
Distribution of impairment allowance
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Barclays UK
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
As at 31.12.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
73.5
|
10.4
|
0.9
|
84.8
|
8.5
|
16.2
|
26.7
|
51.4
|
—
|
0.2
|
3.8
|
0.1
|
|
>75% and <=90%
|
12.3
|
1.2
|
0.1
|
13.6
|
7.4
|
16.7
|
12.8
|
36.9
|
0.1
|
1.9
|
27.9
|
0.4
|
|
>90% and <=100%
|
1.5
|
0.1
|
—
|
1.6
|
1.2
|
2.5
|
3.6
|
7.3
|
0.1
|
2.6
|
63.3
|
0.6
|
|
>100%
|
—
|
—
|
—
|
—
|
0.3
|
0.7
|
3.4
|
4.4
|
1.0
|
12.1
|
100.0
|
12.4
|
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
78.8
|
10.5
|
0.8
|
90.1
|
10.2
|
30.8
|
33.2
|
74.2
|
—
|
0.2
|
2.9
|
0.1
|
|
>75% and <=90%
|
8.8
|
0.5
|
—
|
9.3
|
3.9
|
9.7
|
5.2
|
18.8
|
—
|
1.4
|
30.8
|
0.1
|
|
>90% and <=100%
|
0.6
|
—
|
—
|
0.6
|
0.3
|
0.3
|
2.4
|
3.0
|
—
|
1.5
|
85.0
|
0.4
|
|
>100%
|
—
|
—
|
—
|
—
|
0.1
|
0.6
|
3.3
|
4.0
|
0.4
|
21.4
|
64.9
|
13.1
|
1
|
Portfolio marked to market based on the most updated valuation
including recovery book balances. Updated valuations reflect the
application of the latest HPI available as at 31 December
2023.
|
New
home loans bookings in 2023 decreased 25% to £22.7bn (2022:
30.3bn) and the 90 day arrears rate increased to 0.2% (2022: 0.1%),
mainly driven by economic conditions that resulted in general
mortgage market suppression, including higher mortgage payments as
rates continued to rise and increased cost of living factors in
line with inflation in 2023.
Head Office: Italian home loans and advances at amortised
cost reduced to £3.6bn
(2022: £4.5bn) and
continue to run-off since new bookings ceased in 2016. The
portfolio is secured on residential property with an average
balance weighted mark to market LTV of 55.6% (2022: 58.8%). 90-day arrears increased to
2.4% (2022: 1.2%) due to deterioration caused by
affordability stress related to rising inflation and interest
rates. The gross charge-off rate was broadly stable at 0.7% (2022: 0.6%).
Retail credit cards and Retail other
The
principal portfolios listed below accounted for 91% (December 2022: 87%) of the Group’s total retail
credit cards and retail other.
Principal portfolios
|
Gross exposure
|
30 day arrears rate, excluding recovery book
|
90 day arrears rate, excluding recovery book
|
Annualised gross write-off rate
|
Annualised net write-off rate
|
As at 31.12.23
|
£m
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
UK cards
|
10,420
|
0.9
|
0.2
|
1.4
|
1.3
|
UK personal loans
|
3,641
|
1.5
|
0.6
|
1.3
|
1.0
|
Barclays Partner Finance
|
2,344
|
0.6
|
0.3
|
0.7
|
0.7
|
Barclays International
|
|
|
|
|
|
US cards
|
27,286
|
2.9
|
1.5
|
2.3
|
2.3
|
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
UK cards
|
9,939
|
0.9
|
0.2
|
3.7
|
3.6
|
UK personal loans
|
4,023
|
1.4
|
0.6
|
4.1
|
3.8
|
Barclays Partner Finance
|
2,612
|
0.5
|
0.2
|
0.7
|
0.7
|
Barclays International
|
|
|
|
|
|
US cards
|
25,554
|
2.2
|
1.2
|
2.4
|
2.3
|
German
consumer finance business
|
4,269
|
1.7
|
0.7
|
0.7
|
0.6
|
Retail Credit Cards and Retail Other held for sale
|
Gross exposure
|
30 day arrears rate, excluding recovery book
|
90 day arrears rate, excluding recovery book
|
Annualised gross write-off rate
|
Annualised net write-off rate
|
As at 31.12.23
|
£m
|
%
|
%
|
%
|
%
|
Barclays International
|
|
|
|
|
|
German
consumer finance business
|
4,094
|
1.7
|
0.8
|
1.0
|
1.0
|
UK cards: 30 day and 90 day arrears rates remained stable at
0.9% (2022: 0.9%) and
0.2% (2022: 0.2%) respectively.
Total exposure increased from £9.9bn to £10.4bn due to
growth in spend and promotional balances. Both the gross and net
write off rates decreased by 2.3% driven by the impact of a
strategy change in 2022 to align the point of charge off and write
off in that year and lower charge off rates in 2023.
UK personal loans: 30 and 90 day arrears rates have remained
broadly stable at 1.5% (2022: 1.4%) and 0.6% (2022: 0.6%)
respectively. Both the gross and net write off rates decreased by
2.8%, driven by the impact of a strategy change in 2022 to align
the point of charge off and write off in that year and by the
impact of large bulk sales in 2022 which reduced the flow to write
off in 2023.
Barclays Partner Finance: 30 and 90 day arrears rates
increased marginally to 0.6% (2022: 0.5%) and 0.3% (2022: 0.2%)
respectively as the weighting of lower risk customers with larger
balances reduced. Total exposure fell to £2.3bn (2022:
£2.6bn) due to a strategic decision to reduce the number of
active partner businesses. Annualised gross and net write off rates
remained stable.
US cards: 30 and 90 day arrears rates increased to 2.9%
(2022: 2.2%) and 1.5% (2022: 1.2%) respectively due to an
anticipated higher flow into and through delinquency, as rates
returned to pre-pandemic levels. Write off rates remained broadly
stable at 2.3%.
German consumer finance business: Gross exposure decreased
4% following business reprioritisation and discontinuation of Open
Market loans originations. 30 and 90 day arrears rates remained
stable and write-off rates increased due to the impact of accepting
higher loan amount applications during 2022, which has since been
discontinued.
Market Risk
Analysis of management value at risk (VaR)
The
table below shows the total management VaR on a diversified basis
by asset class. Total management VaR includes all trading positions
in Barclays Bank Group and it is calculated with a one-day holding
period. VaR limits are applied to total management VaR and by asset
class. Additionally, the market risk management function applies
VaR sub-limits to material businesses and trading
desks.
Management VaR (95%) by asset class
|
Year ended 31.12.23
|
|
Year ended 31.12.22
|
|
Average
|
High
|
Low
|
|
Average
|
High
|
Low
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Credit risk
|
40
|
57
|
22
|
|
25
|
71
|
8
|
Interest rate risk
|
15
|
25
|
9
|
|
13
|
23
|
4
|
Equity risk
|
6
|
10
|
3
|
|
10
|
29
|
4
|
Basis risk
|
13
|
25
|
8
|
|
12
|
24
|
4
|
Spread risk
|
9
|
14
|
5
|
|
7
|
11
|
3
|
Foreign exchange risk
|
4
|
9
|
1
|
|
8
|
25
|
2
|
Commodity risk
|
—
|
1
|
—
|
|
—
|
1
|
—
|
Inflation risk
|
6
|
11
|
2
|
|
6
|
17
|
3
|
Diversification
effect1
|
(51)
|
|
|
|
(45)
|
|
|
Total management VaR
|
42
|
60
|
24
|
|
36
|
73
|
13
|
1
|
Diversification effects recognise that forecast losses from
different assets or businesses are unlikely to occur concurrently,
hence the expected aggregate loss is lower than the sum of the
expected losses from each area. Historical correlations between
losses are taken into account in making these assessments. The high
and low VaR figures reported for each category did not necessarily
occur on the same day as the high and low VaR reported as a whole.
Consequently, a diversification effect balance for the high and low
VaR figures would not be meaningful and is therefore omitted from
the above table.
|
Average Management VaR increased 17% to £42m (2022:
£36m) and the range narrowed. The increase was driven
by the impact of funded, fair value leverage loan exposure in
Investment Banking since Q4 2022, partially offset by lower market
volatility and credit spread levels in 2023 as geopolitical
tensions eased, relative to 2022, inflation declined and the pace
of interest rate rises moderated. Management VaR declined in 2023
from a high of £73m in
November 2022, driven by a
reduction in the size of the funded, fair value leverage loan
exposure in Investment Banking.
Treasury and Capital Risk
The Group has established a comprehensive set of policies,
standards and controls for managing its liquidity risk; together
these set out the requirements for Barclays’ liquidity risk
framework. The liquidity risk framework meets the PRA standards and
enables Barclays to maintain liquidity resources that are
sufficient in amount and quality, and a funding profile that is
appropriate to meet the Group’s Liquidity Risk Appetite. The
liquidity risk framework is delivered via a combination of policy
formation, review and challenge, governance, analysis, stress
testing, limit setting and monitoring.
Liquidity risk stress testing
The
Internal Liquidity Stress Tests (ILST) measure the potential
contractual and contingent stress outflows under a range of
scenarios, which are then used to determine the size of the
liquidity pool that is immediately available to meet anticipated
outflows if a stress occurs. The short-term scenarios include a 30
day Barclays-specific stress event, a 90 day market-wide stress
event and a 30 day combined scenario consisting of both a Barclays
specific and market-wide stress event. The Group also runs a
liquidity stress test which measures the anticipated outflows over
a 12 month market-wide scenario.
The LCR
requirement takes into account the relative stability of different
sources of funding and potential incremental funding requirements
in a stress. The LCR is designed to promote short-term resilience
of a bank’s liquidity risk profile by holding sufficient high
quality liquid assets to survive an acute stress scenario lasting
for 30 days.
As at
31 December 2023 the average LCR was 161% (December 2022: 156%).
The Group held eligible liquid assets in excess of 100% of net
stress outflows as measured according to both its internal ILST and
external regulatory requirements.
Liquidity coverage
ratio1
|
As at 31.12.23
|
As at 31.12.22
|
|
£bn
|
£bn
|
LCR Eligible High Quality Liquid Assets (HQLA)
|
310
|
320
|
Net stress outflows
|
192
|
206
|
Surplus
|
118
|
114
|
|
|
|
Liquidity coverage ratio
|
161%
|
156%
|
1
|
Liquidity Coverage Ratio is now shown on an average basis, based on
the average of the last 12 spot month end ratios. The HQLA, Net
Stress outflow, and Surplus balances in the table above are average
month end balances for the past 12 months. Prior period HQLA, Net
Stress Outflows, Surplus & LCR comparatives have been updated
for consistency.
|
Net Stable Funding Ratio
The
external NSFR metric requires banks to maintain a stable funding
profile taking into account both on and certain off balance sheet
exposures over a medium to long term period. The ratio is defined
as the Available Stable Funding (capital and certain liabilities
which are treated as stable sources of funding) relative to the
Required Stable Funding (a measure of assets on the balance sheet
and certain off balance sheet exposures which may require longer
term funding). The NSFR (average of last four quarter ends) as at
31 December 2023 was 138%, which was a surplus above requirements
of £167bn.
Net Stable Funding
Ratio1
|
As at 31.12.23
|
As at 31.12.22
|
|
£bn
|
£bn
|
Total Available Stable Funding
|
607
|
576
|
Total Required Stable Funding
|
440
|
421
|
Surplus
|
167
|
155
|
|
|
|
Net Stable Funding Ratio
|
138%
|
137%
|
1
|
Represents average of the last four spot quarter end
ratios.
|
As part
of the liquidity risk appetite, Barclays establishes minimum LCR,
NSFR and internal liquidity stress test limits. The Group plans to
maintain its surplus to the internal and regulatory requirements at
an efficient level. Risks to market funding conditions, the
Group’s liquidity position and funding profile are assessed
continuously, and actions are taken to manage the size of the
liquidity pool and the funding profile as appropriate.
Composition of the Group liquidity pool
|
|
|
|
|
|
|
|
|
LCR eligible1
High Quality Liquid Assets
(HQLA)
|
|
Liquidity pool
|
|
Cash
|
Level 1
|
Level 2A
|
Level 2B
|
Total
|
|
2023
|
2022
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Cash and deposits with central banks2
|
211
|
—
|
—
|
—
|
211
|
|
232
|
263
|
|
|
|
|
|
|
|
|
|
Government bonds3
|
|
|
|
|
|
|
|
|
AAA to AA-
|
—
|
40
|
5
|
—
|
45
|
|
48
|
39
|
A+ to A-
|
—
|
1
|
1
|
—
|
2
|
|
1
|
3
|
BBB+ to BBB-
|
—
|
1
|
—
|
—
|
1
|
|
1
|
—
|
Total government bonds
|
—
|
42
|
6
|
—
|
48
|
|
50
|
42
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
Government Guaranteed Issuers, PSEs and GSEs
|
—
|
4
|
—
|
—
|
4
|
|
5
|
6
|
International Organisations and MDBs
|
—
|
3
|
—
|
—
|
3
|
|
3
|
2
|
Covered bonds
|
—
|
3
|
3
|
—
|
6
|
|
7
|
5
|
Other
|
—
|
—
|
—
|
2
|
2
|
|
1
|
—
|
Total other
|
—
|
10
|
3
|
2
|
15
|
|
16
|
13
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2023
|
211
|
52
|
9
|
2
|
274
|
|
298
|
|
Total as at 31 December 2022
|
248
|
31
|
15
|
1
|
295
|
|
|
318
|
1
|
The LCR eligible HQLA is adjusted for operational restrictions upon
consolidation under Article 8 of the Liquidity Coverage Ratio
section of the PRA rulebook (CRR) such as trapped liquidity within
Barclays subsidiaries. It also reflects differences in eligibility
of assets between the LCR and Barclays’ Liquidity
Pool.
|
2
|
Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 99% (December 2022: over
99%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
3
|
Of which over 80% (December 2022: over 79%) comprised UK, US,
French, German, Japanese, Swiss and Dutch securities.
|
The
Group liquidity pool decreased
to £298bn as at December
2023 (December 2022: £318bn) driven by a reduction in
wholesale funding, a slight reduction in overall deposits, with a
decrease in Barclays UK deposits being largely offset by growth in
Corporate Bank deposits, and changes in business funding
consumption.
In 2023, the month-end liquidity pool ranged from
£298bn to £342bn (2022: £309bn to £359bn), and
the month-end average balance was £328bn (2022: £331bn).
The liquidity pool is held unencumbered and represents readily
accessible funds to meet potential cash outflows during stress
periods.
As at
31 December 2023, 59% (December 2022: 60%) of the liquidity pool
was located in Barclays Bank PLC, 22% (December 2022: 25%) in
Barclays Bank UK PLC and 11% (December 2022: 9%) in Barclays Bank
Ireland PLC. The residual portion of the liquidity pool is held
outside of these entities, predominantly in US subsidiaries, to
meet entity-specific stress outflows and local regulatory
requirements. To the extent the use of this residual portion of the
liquidity pool is restricted due to local regulatory requirements,
it is assumed to be unavailable to the rest of the Group in
calculating the LCR.
The
composition of the pool is subject to limits set by the Board and
the independent liquidity risk, credit risk and market risk
functions. In addition, the investment of the liquidity pool is
monitored for concentration by issuer, currency and asset type.
Given returns generated by these highly liquid assets, the risk and
reward profile is continuously managed.
Deposit funding
|
As at 31.12.23
|
|
As at 31.12.22
|
|
Loans and advances, debt securities at amortised cost
|
Deposits at amortised cost
|
Loan: deposit ratio1
|
|
Loan: deposit ratio1
|
Funding of loans and advances
|
£bn
|
£bn
|
%
|
|
%
|
Barclays UK
|
221
|
241
|
92
|
|
87
|
Barclays International
|
174
|
298
|
58
|
|
59
|
Head Office
|
4
|
|
|
|
|
Barclays Group
|
399
|
539
|
74
|
|
73
|
1
|
The loan: deposit ratio is calculated as loans and advances at
amortised cost and debt securities at amortised cost divided by
deposits at amortised cost.
|
Funding structure and funding relationships
The
basis for liquidity risk management is a funding structure that
reduces the probability of a liquidity stress leading to an
inability to meet funding obligations as they fall due. The
Group’s overall funding strategy is to develop a diversified
funding base (geographically, by type and by counterparty) and
maintain access to a variety of alternative funding sources, to
provide protection against unexpected fluctuations, while
minimising the cost of funding.
Within
this, the Group aims to align the sources and uses of funding. As
such, retail and corporate loans and advances are largely funded by
deposits in the relevant entities, with the surplus primarily
funding the liquidity pool. The majority of reverse repurchase
agreements are matched by repurchase agreements. Derivative
liabilities and assets are largely matched. A substantial
proportion of balance sheet derivative positions qualify for
counterparty netting and the remaining portions are largely offset
when netted against cash collateral received and paid. Wholesale
debt and equity is used to fund residual assets.
These
funding relationships as at 31 December 2023 are summarised
below:
|
As at 31.12.23
|
As at 31.12.22
|
|
|
As at 31.12.23
|
As at 31.12.22
|
Assets
|
£bn
|
£bn
|
|
Liabilities and equity
|
£bn
|
£bn
|
Loans
and advances at amortised cost1
|
386
|
385
|
|
Deposits at amortised cost
|
539
|
546
|
Group liquidity pool
|
298
|
318
|
|
<1 Year wholesale funding
|
59
|
73
|
|
|
|
|
>1 Year wholesale funding
|
118
|
111
|
Reverse repurchase agreements, trading portfolio assets, cash
collateral and settlement balances
|
435
|
412
|
|
Repurchase agreements, trading portfolio liabilities, cash
collateral and settlement balances
|
380
|
370
|
Derivative financial instruments
|
257
|
302
|
|
Derivative financial instruments
|
250
|
290
|
Other
assets2
|
101
|
97
|
|
Other liabilities
|
59
|
55
|
|
|
|
|
Equity
|
72
|
69
|
Total assets
|
1,477
|
1,514
|
|
Total liabilities and equity
|
1,477
|
1,514
|
1
|
Adjusted for liquidity pool debt securities reported at amortised
cost of £18bn (December 2022: £14bn).
|
2
|
Other assets include fair value assets that are not part of reverse
repurchase agreements or trading portfolio assets, and other asset
categories.
|
Composition of wholesale funding
Wholesale
funding outstanding (excluding repurchase agreements) was
£176.8bn (December 2022:
£184.0bn). In 2023, the
Group issued £14.1bn of MREL eligible instruments from
Barclays PLC (the Parent company) in a range of tenors and
currencies.
Our
operating companies also access wholesale funding markets to
maintain their stable and diversified funding bases. Barclays Bank
PLC continued to issue in the shorter-term and medium-term notes
markets. In addition, Barclays Bank UK PLC continued to issue in
the shorter-term markets and maintains active secured funding
programmes.
Wholesale
funding of £58.6bn
(December 2022: £72.5bn)
matures in less than one year, representing 33% (December 2022:
39%) of total wholesale funding outstanding. This includes
£18.7bn (December 2022: £15.0bn) related to term
funding1.
Maturity profile of wholesale
funding1,2
|
<1
|
1-3
|
3-6
|
6-12
|
<1
|
1-2
|
2-3
|
3-4
|
4-5
|
>5
|
|
|
month
|
months
|
months
|
months
|
year
|
years
|
years
|
years
|
years
|
years
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Barclays PLC (the Parent company)
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured (public benchmark)
|
1.2
|
—
|
0.3
|
—
|
1.5
|
5.5
|
9.7
|
5.9
|
4.7
|
20.0
|
47.3
|
Senior unsecured (privately placed)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1.0
|
1.0
|
Subordinated liabilities
|
—
|
—
|
—
|
0.4
|
0.4
|
—
|
1.5
|
—
|
1.5
|
5.8
|
9.2
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
0.6
|
9.7
|
8.6
|
7.5
|
26.4
|
1.3
|
—
|
—
|
—
|
—
|
27.7
|
Asset backed commercial paper
|
2.4
|
8.2
|
1.0
|
—
|
11.6
|
—
|
—
|
—
|
—
|
—
|
11.6
|
Senior unsecured (public benchmark)
|
—
|
—
|
1.0
|
—
|
1.0
|
—
|
—
|
—
|
—
|
—
|
1.0
|
Senior
unsecured (privately placed)3
|
1.4
|
1.6
|
2.9
|
8.5
|
14.4
|
12.1
|
8.4
|
5.2
|
7.0
|
21.1
|
68.2
|
Asset backed securities
|
—
|
—
|
0.1
|
1.0
|
1.1
|
1.2
|
0.5
|
—
|
0.1
|
3.1
|
6.0
|
Subordinated liabilities
|
—
|
0.1
|
—
|
0.2
|
0.3
|
0.2
|
0.3
|
0.1
|
—
|
0.4
|
1.3
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
1.9
|
—
|
—
|
—
|
1.9
|
—
|
—
|
—
|
—
|
—
|
1.9
|
Senior unsecured (public benchmark)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.2
|
0.2
|
Covered bonds
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.5
|
0.2
|
0.7
|
1.4
|
Total as at 31 December 2023
|
7.5
|
19.6
|
13.9
|
17.6
|
58.6
|
20.3
|
20.4
|
11.7
|
13.5
|
52.3
|
176.8
|
Of which secured
|
2.4
|
8.2
|
1.1
|
1.0
|
12.7
|
1.2
|
0.5
|
0.5
|
0.3
|
3.8
|
19.0
|
Of which unsecured
|
5.1
|
11.4
|
12.8
|
16.6
|
45.9
|
19.1
|
19.9
|
11.2
|
13.2
|
48.5
|
157.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2022
|
11.1
|
26.5
|
16.4
|
18.5
|
72.5
|
22.4
|
16.9
|
14.5
|
9.7
|
48.0
|
184.0
|
Of which secured
|
4.9
|
6.7
|
1.3
|
0.2
|
13.1
|
1.8
|
0.7
|
0.5
|
1.0
|
2.1
|
19.2
|
Of which unsecured
|
6.2
|
19.8
|
15.1
|
18.3
|
59.4
|
20.6
|
16.2
|
14.0
|
8.7
|
45.9
|
164.8
|
1
|
The composition of wholesale funds comprises the balance sheet
reported financial liabilities at fair value, debt securities in
issue and subordinated liabilities. It does not include
participation in the central bank facilities reported within
repurchase agreements and other similar secured
borrowing.
|
2
|
Term funding comprises public benchmark and privately placed senior
unsecured notes, covered bonds, asset-backed securities and
subordinated debt where the original maturity of the instrument is
more than 1 year.
|
3
|
Includes structured notes of £54.7bn, of which £11.5bn
matures within one year.
|
Regulatory minimum requirements
Capital
The Group’s Overall Capital Requirement for CET1 increased to
12.0%, following the latest PRA Individual Capital Requirement
(ICR) notice and comprises a 4.5% Pillar 1 minimum, a 2.5% Capital
Conservation Buffer (CCB), a 1.5% Global Systemically Important
Institution (G-SII) buffer, a 2.6% Pillar 2A requirement and a 0.9%
Countercyclical Capital Buffer (CCyB).
The Group’s CCyB is based on the buffer rate applicable for
each jurisdiction in which the Group has exposures. Following the
Financial Policy Committee (FPC) announcement on 5 July 2022, the
UK CCyB increased from 1% to 2% with effect from 5 July 2023. The
buffer rates set by other national authorities for non-UK exposures
are not currently material.
The Group’s updated Pillar 2A requirement increased by 25bps
to 4.6% of which at least 56.25% needs to be met with CET1 capital,
equating to 2.6% of RWAs. The Pillar 2A requirement, based on a
point in time assessment, has been set as a proportion of RWAs and
is subject to at least annual review.
The Group’s CET1 target ratio of 13-14% takes into account
headroom above requirements which includes a confidential
institution-specific PRA buffer. The Group remains above its
minimum capital regulatory requirements including the PRA
buffer.
Leverage
The Group is subject to a UK leverage ratio requirement of
4.1%. This comprises the 3.25% minimum requirement, a G-SII
additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio
buffer (CCLB) of 0.3%. The
Group is also required to disclose an average UK leverage ratio
which is based on capital on the last day of each month in the
quarter and an exposure measure for each day in the
quarter.
MREL
The Group is required to meet the higher of: (i) two times the sum
of 8% Pillar 1 and 4.6% Pillar 2A equating to 25.2% of RWAs; and
(ii) 6.75% of leverage exposures. In addition, the higher of
regulatory capital and leverage buffers apply. CET1 capital cannot
be counted towards both MREL and the buffers, meaning that the
buffers, including the above mentioned confidential
institution-specific PRA buffer, will effectively be applied above
MREL requirements.
In the disclosures that follow, references to CRR, as amended by
CRR II, mean the capital regulatory requirements, as they form part
of domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended.
Capital ratios1,2
|
As at 31.12.23
|
As at 30.09.23
|
As at 31.12.22
|
CET1
|
13.8%
|
14.0%
|
13.9%
|
T1
|
17.7%
|
17.5%
|
17.9%
|
Total regulatory capital
|
20.1%
|
20.0%
|
20.8%
|
MREL ratio as a percentage of total RWAs
|
33.6%
|
33.4%
|
33.5%
|
|
|
|
|
Own funds and eligible liabilities
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests per the balance
sheet
|
71,204
|
68,315
|
68,292
|
Less: other equity instruments (recognised as AT1
capital)
|
(13,259)
|
(11,857)
|
(13,284)
|
Adjustment to retained earnings for foreseeable ordinary share
dividends
|
(795)
|
(497)
|
(787)
|
Adjustment to retained earnings for foreseeable repurchase of
shares
|
—
|
(223)
|
—
|
Adjustment to retained earnings for foreseeable other equity
coupons
|
(43)
|
(45)
|
(37)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,901)
|
(1,630)
|
(1,726)
|
Goodwill and intangible assets
|
(7,790)
|
(8,243)
|
(8,224)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(1,630)
|
(1,480)
|
(1,500)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
3,707
|
6,421
|
7,237
|
Excess of expected losses over impairment
|
(296)
|
(292)
|
(119)
|
Gains or losses on liabilities at fair value resulting from own
credit
|
136
|
(142)
|
(620)
|
Defined benefit pension fund assets
|
(2,654)
|
(2,960)
|
(3,430)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(20)
|
(20)
|
(20)
|
Adjustment under IFRS 9 transitional arrangements
|
288
|
290
|
700
|
Other regulatory adjustments
|
357
|
321
|
396
|
CET1 capital
|
47,304
|
47,958
|
46,878
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
13,263
|
11,857
|
13,284
|
Other regulatory adjustments and deductions
|
(60)
|
(60)
|
(60)
|
AT1 capital
|
13,203
|
11,797
|
13,224
|
|
|
|
|
T1 capital
|
60,507
|
59,755
|
60,102
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
7,966
|
8,126
|
9,000
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
569
|
757
|
1,095
|
Credit risk adjustments (excess of impairment over expected
losses)
|
—
|
58
|
35
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(160)
|
Total regulatory capital
|
68,882
|
68,536
|
70,072
|
|
|
|
|
Less : Ineligible T2 capital (including minority interests) issued
by subsidiaries
|
(569)
|
(757)
|
(1,095)
|
Eligible liabilities
|
46,995
|
46,477
|
43,851
|
|
|
|
|
Total own funds and eligible liabilities3
|
115,308
|
114,256
|
112,828
|
|
|
|
|
Total RWAs
|
342,717
|
341,868
|
336,518
|
1
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR II non-compliant capital instruments.
|
2
|
The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 13.7%,
with £47.0bn of CET1 capital and £342.7bn of RWAs
calculated without applying the transitional arrangements of the
CRR as amended by CRR II.
|
3
|
As at 31 December 2023, the Group's MREL requirement, excluding the
PRA buffer, was to hold £103.0bn of own funds and eligible
liabilities equating to 30.1% of RWAs. The Group remains above its
MREL regulatory requirement including the PRA buffer.
|
|
Movement in CET1 capital
|
Three months ended 31.12.23
|
Twelve months ended 31.12.23
|
|
£m
|
£m
|
|
Opening CET1 capital
|
47,958
|
46,878
|
|
|
|
|
Profit for the period attributable to equity holders
|
108
|
5,259
|
|
Own credit relating to derivative liabilities
|
41
|
49
|
|
Ordinary share dividends paid and foreseen
|
(298)
|
(1,218)
|
|
Purchased and foreseeable share repurchase
|
—
|
(1,250)
|
|
Other equity coupons paid and foreseen
|
(217)
|
(991)
|
|
(Decrease)/increase in retained regulatory capital generated from
earnings
|
(366)
|
1,849
|
|
|
|
|
Net impact of share schemes
|
140
|
104
|
|
Fair value through other comprehensive income reserve
|
276
|
194
|
|
Currency translation reserve
|
(738)
|
(1,101)
|
|
Other reserves
|
(6)
|
(42)
|
|
Decrease in other qualifying reserves
|
(328)
|
(845)
|
|
|
|
|
Pension remeasurements within reserves
|
(328)
|
(855)
|
|
Defined benefit pension fund asset deduction
|
306
|
776
|
|
Net impact of pensions
|
(22)
|
(79)
|
|
|
|
|
Additional value adjustments (PVA)
|
(271)
|
(175)
|
|
Goodwill and intangible assets
|
453
|
434
|
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(150)
|
(130)
|
|
Excess of expected loss over impairment
|
(4)
|
(177)
|
|
Adjustment under IFRS 9 transitional arrangements
|
(2)
|
(412)
|
|
Other regulatory adjustments
|
36
|
(39)
|
|
Increase/(decrease) in regulatory capital due to adjustments and
deductions
|
62
|
(499)
|
|
|
|
|
Closing CET1 capital
|
47,304
|
47,304
|
CET1 capital increased £0.4bn to £47.3bn (December 2022:
£46.9bn).
£5.3bn of capital generated from profit, including the impacts
of structural cost actions, was partially offset by distributions
of £3.5bn comprising:
●£1.25bn of share buybacks announced with FY22 and H123
results
●£1.2bn of ordinary share dividend paid and foreseen
reflecting £0.4bn interim dividend paid and a £0.8bn
accrual towards the FY23 dividend
●£1.0bn of equity coupons paid and foreseen
Other significant movements in the period were:
●£1.1bn decrease in the currency translation reserve
driven by the strengthening of GBP against USD
●£0.4bn decrease in IFRS 9 transitional relief primarily
due to the relief applied to the pre-2020 impairment charge
reducing to 0% in 2023 from 25% in 2022 and the relief applied to
the post-2020 impairment charge reducing to 50% in 2023 from 75% in
2022
●£0.2bn increase in PVA, which includes an increase for
price uncertainty within corporate loans, including the leveraged
finance loan portfolio
●£0.4bn increase primarily driven by intangible
impairment structural cost actions. The impact of this was capital
neutral with the offsetting decrease within attributable
profit.
RWAs by risk type and business
|
|
Credit risk1
|
|
Counterparty credit risk
|
|
Market Risk
|
|
Operational risk
|
Total RWAs
|
|
STD
|
IRB
|
|
STD
|
IRB
|
Settlement Risk
|
CVA
|
|
STD
|
IMA
|
|
|
|
As at 31.12.23
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays UK
|
10,472
|
50,761
|
|
178
|
—
|
—
|
94
|
|
274
|
—
|
|
11,715
|
73,494
|
Corporate and Investment Bank
|
40,315
|
65,499
|
|
18,775
|
22,033
|
159
|
3,260
|
|
14,625
|
25,222
|
|
26,887
|
216,775
|
Consumer, Cards and Payments
|
28,218
|
5,515
|
|
182
|
55
|
—
|
38
|
|
2
|
638
|
|
7,631
|
42,279
|
Barclays International
|
68,533
|
71,014
|
|
18,957
|
22,088
|
159
|
3,298
|
|
14,627
|
25,860
|
|
34,518
|
259,054
|
Head Office
|
3,881
|
6,963
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(675)
|
10,169
|
Barclays Group
|
82,886
|
128,738
|
|
19,135
|
22,088
|
159
|
3,392
|
|
14,901
|
25,860
|
|
45,558
|
342,717
|
As at 30.09.231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
11,731
|
49,928
|
|
160
|
—
|
—
|
90
|
|
215
|
—
|
|
11,054
|
73,178
|
Corporate and Investment Bank
|
38,869
|
69,467
|
|
17,983
|
21,784
|
123
|
3,108
|
|
17,542
|
23,253
|
|
27,093
|
219,222
|
Consumer, Cards and Payments
|
28,613
|
3,987
|
|
191
|
51
|
—
|
42
|
|
2
|
535
|
|
6,527
|
39,948
|
Barclays International
|
67,482
|
73,454
|
|
18,174
|
21,835
|
123
|
3,150
|
|
17,544
|
23,788
|
|
33,620
|
259,170
|
Head Office
|
4,116
|
6,213
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(809)
|
9,520
|
Barclays Group
|
83,329
|
129,595
|
|
18,334
|
21,835
|
123
|
3,240
|
|
17,759
|
23,788
|
|
43,865
|
341,868
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
6,836
|
54,752
|
|
167
|
—
|
—
|
72
|
|
233
|
—
|
|
11,023
|
73,083
|
Corporate and Investment Bank
|
35,738
|
75,413
|
|
16,814
|
21,449
|
80
|
3,093
|
|
13,716
|
22,497
|
|
27,064
|
215,864
|
Consumer, Cards and Payments
|
27,882
|
3,773
|
|
214
|
46
|
—
|
61
|
|
—
|
388
|
|
6,559
|
38,923
|
Barclays International
|
63,620
|
79,186
|
|
17,028
|
21,495
|
80
|
3,154
|
|
13,716
|
22,885
|
|
33,623
|
254,787
|
Head Office
|
2,636
|
6,843
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(831)
|
8,648
|
Barclays Group
|
73,092
|
140,781
|
|
17,195
|
21,495
|
80
|
3,226
|
|
13,949
|
22,885
|
|
43,815
|
336,518
|
1
|
From Q323 credit risk RWAs of £9.8bn relating to deferred tax
assets, have been reclassified from IRB to STD with no impact to
total RWAs.
|
Movement analysis of RWAs
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Opening RWAs (as at 31.12.22)
|
213,873
|
41,996
|
36,834
|
43,815
|
336,518
|
Book size
|
(1,338)
|
2,122
|
3,325
|
1,743
|
5,852
|
Acquisitions and disposals
|
688
|
—
|
—
|
—
|
688
|
Book quality
|
1,512
|
(136)
|
—
|
—
|
1,376
|
Model updates
|
(2,600)
|
—
|
1,200
|
—
|
(1,400)
|
Methodology and policy
|
5,175
|
2,700
|
—
|
—
|
7,875
|
Foreign
exchange movements1
|
(5,686)
|
(1,908)
|
(598)
|
—
|
(8,192)
|
Total RWA movements
|
(2,249)
|
2,778
|
3,927
|
1,743
|
6,199
|
Closing RWAs (as at 31.12.23)
|
211,624
|
44,774
|
40,761
|
45,558
|
342,717
|
1
|
Foreign exchange movements does not include the impact of foreign
exchange for modelled market risk or operational risk
|
Overall RWAs increased £6.2bn to £342.7bn (December 2022:
£336.5bn).
Credit risk RWAs decreased £2.2bn:
●A £1.3bn decrease in book size within CIB and mortgages
within Barclays UK, partially offset by higher credit card balances
within CC&P
●A £1.5bn increase in book quality RWAs primarily driven
by changes in risk parameters and HPI refresh within Barclays
UK
●A £2.6bn decrease in model updates primarily driven by
capital LGD model update for the mortgage portfolio to reflect the
significant decrease in repossession volume during and post the
COVID pandemic
●A £5.2bn increase in methodology and policy primarily
driven by the recalibration of the post model adjustment (PMA)
introduced to address the IRB roadmap changes and a change in
treatment of non-credit obligation exposures
●A £5.7bn decrease as a result of foreign exchange
movements primarily due to the strengthening of GBP against
USD
Counterparty Credit risk RWAs increased £2.8bn:
●A £2.1bn increase in book size primarily due to
increased trading activity within CIB
●A £2.7bn increase in methodology and policy due to a
recalibration of the PMA introduced to address the IRB roadmap
changes and a change in treatment of certain securities financing
transactions collateral
●A £1.9bn decrease as a result of foreign exchange
movements primarily due to the strengthening of GBP against
USD
Market risk RWAs increased £3.9bn:
●A £3.3bn increase in book size primarily due to
increased trading activity within CIB
●A £1.2bn increase in model updates to capture
incremental risk arising from Stressed Value at Risk (SVaR),
measured on a 10-day basis
Operational risk RWAs increase £1.7bn:
●A £1.7bn increase in book size primarily driven by the
inclusion of higher 2023 CC&P and Barclays UK income compared
to 2020
Leverage ratios1,2
|
As at 31.12.23
|
As at 30.09.23
|
As at 31.12.22
|
£m
|
£m
|
£m
|
UK
leverage ratio3
|
5.2%
|
5.0%
|
5.3%
|
T1 capital
|
60,507
|
59,755
|
60,102
|
UK leverage exposure
|
1,168,275
|
1,202,417
|
1,129,973
|
Average UK leverage ratio
|
4.8%
|
4.6%
|
4.8%
|
Average T1 capital
|
60,343
|
58,661
|
60,865
|
Average UK leverage exposure
|
1,266,880
|
1,262,290
|
1,280,972
|
1
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR
II.
|
2
|
Fully loaded UK leverage ratio was 5.2%, with £60.2bn of T1 capital and £1,168.0bn of leverage exposure. Fully
loaded average UK leverage ratio was 4.7% with £60.0bn of T1 capital and £1,266.6bn of leverage exposure. Fully
loaded UK leverage ratios are calculated without applying the
transitional arrangements of the CRR as amended by CRR
II.
|
3
|
Although the leverage ratio is expressed in terms of T1 capital,
the leverage ratio buffers and 75% of the minimum requirement must
be covered solely with CET1 capital. The CET1 capital held against
the 0.53% G-SII ALRB was
£6.1bn and against the
0.3% CCLB was
£3.5bn.
|
The UK leverage ratio decreased to 5.2% (December 2022: 5.3%)
primarily due to a £38.3bn increase in leverage exposure to
£1,168.3bn, largely driven by an increase in trading portfolio
assets within Global Markets.
Condensed Consolidated Financial Statements
Condensed consolidated income statement
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Interest and similar income
|
35,075
|
19,096
|
Interest and similar expense
|
(22,366)
|
(8,524)
|
Net interest income
|
12,709
|
10,572
|
Fee and commission income
|
10,121
|
9,637
|
Fee and commission expense
|
(3,592)
|
(3,038)
|
Net fee and commission income
|
6,529
|
6,599
|
Net trading income
|
5,945
|
8,049
|
Net investment income
|
61
|
(434)
|
Other income
|
134
|
170
|
Total income
|
25,378
|
24,956
|
|
|
|
Staff costs
|
(10,017)
|
(9,252)
|
Infrastructure, administration and general expenses
|
(6,877)
|
(5,881)
|
Litigation and conduct
|
(37)
|
(1,597)
|
Operating expenses
|
(16,931)
|
(16,730)
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
(9)
|
6
|
Profit before impairment
|
8,438
|
8,232
|
Credit impairment charges
|
(1,881)
|
(1,220)
|
Profit before tax
|
6,557
|
7,012
|
Tax charge
|
(1,234)
|
(1,039)
|
Profit after tax
|
5,323
|
5,973
|
|
|
|
Attributable to:
|
|
|
Equity holders of the parent
|
4,274
|
5,023
|
Other equity instrument holders
|
985
|
905
|
Total equity holders of the parent
|
5,259
|
5,928
|
Non-controlling interests
|
64
|
45
|
Profit after tax
|
5,323
|
5,973
|
|
|
|
Earnings per share
|
|
|
Basic earnings per ordinary share
|
27.7p
|
30.8p
|
Diluted earnings per ordinary share
|
26.9p
|
29.8p
|
Condensed consolidated statement of comprehensive
income
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Profit after tax
|
5,323
|
5,973
|
|
|
|
Other comprehensive income/(loss) that may be recycled to profit or
loss:1
|
|
|
Currency translation reserve
|
(1,101)
|
2,032
|
Fair value through other comprehensive income reserve
|
197
|
(1,421)
|
Cash flow hedging reserve
|
3,528
|
(6,382)
|
Other comprehensive income/(loss) that may be recycled to
profit
|
2,624
|
(5,771)
|
|
|
|
Other comprehensive (loss)/income not recycled to profit or
loss:1
|
|
|
Retirement benefit remeasurements
|
(855)
|
(281)
|
Fair value through other comprehensive income reserve
|
(3)
|
228
|
Own credit
|
(710)
|
1,463
|
Other comprehensive (loss)/income not recycled to
profit
|
(1,568)
|
1,410
|
|
|
|
Other comprehensive income/(loss) for the period
|
1,056
|
(4,361)
|
|
|
|
Total comprehensive income for the period
|
6,379
|
1,612
|
|
|
|
Attributable to:
|
|
|
Equity holders of the parent
|
6,315
|
1,567
|
Non-controlling interests
|
64
|
45
|
Total comprehensive income for the period
|
6,379
|
1,612
|
Condensed consolidated balance sheet
|
|
As at 31.12.23
|
As at 31.12.22
|
Assets
|
£m
|
£m
|
Cash and balances at central banks
|
224,634
|
256,351
|
Cash collateral and settlement balances
|
108,889
|
112,597
|
Debt securities at amortised cost
|
56,749
|
45,487
|
Loans and advances at amortised cost to banks
|
9,459
|
10,015
|
Loans and advances at amortised cost to customers
|
333,288
|
343,277
|
Reverse repurchase agreements and other similar secured lending at
amortised cost
|
2,594
|
776
|
Trading portfolio assets
|
174,605
|
133,813
|
Financial assets at fair value through the income
statement
|
206,651
|
213,568
|
Derivative financial instruments
|
256,836
|
302,380
|
Financial assets at fair value through other comprehensive
income
|
71,836
|
65,062
|
Investments in associates and joint ventures
|
879
|
922
|
Goodwill and intangible assets
|
7,794
|
8,239
|
Property, plant and equipment
|
3,417
|
3,616
|
Current tax assets
|
121
|
385
|
Deferred tax assets
|
5,960
|
6,991
|
Retirement benefit assets
|
3,667
|
4,743
|
Assets included in a disposal group classified as held for
sale
|
3,916
|
—
|
Other assets
|
6,192
|
5,477
|
Total assets
|
1,477,487
|
1,513,699
|
|
|
|
Liabilities
|
|
|
Deposits at amortised cost from banks
|
14,472
|
19,979
|
Deposits at amortised cost from customers
|
524,317
|
525,803
|
Cash collateral and settlement balances
|
94,084
|
96,927
|
Repurchase agreements and other similar secured borrowings at
amortised cost
|
41,601
|
27,052
|
Debt securities in issue
|
96,825
|
112,881
|
Subordinated liabilities
|
10,494
|
11,423
|
Trading portfolio liabilities
|
58,669
|
72,924
|
Financial liabilities designated at fair value
|
297,539
|
271,637
|
Derivative financial instruments
|
250,044
|
289,620
|
Current tax liabilities
|
529
|
580
|
Deferred tax liabilities
|
22
|
16
|
Retirement benefit liabilities
|
266
|
264
|
Provisions
|
1,584
|
1,544
|
Liabilities included in a disposal group classified as held for
sale
|
3,164
|
—
|
Other liabilities
|
12,013
|
13,789
|
Total liabilities
|
1,405,623
|
1,444,439
|
|
|
|
Equity
|
|
|
Called up share capital and share premium
|
4,288
|
4,373
|
Other reserves
|
(77)
|
(2,192)
|
Retained earnings
|
53,734
|
52,827
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
57,945
|
55,008
|
Other equity instruments
|
13,259
|
13,284
|
Total equity excluding non-controlling interests
|
71,204
|
68,292
|
Non-controlling interests
|
660
|
968
|
Total equity
|
71,864
|
69,260
|
|
|
|
Total liabilities and equity
|
1,477,487
|
1,513,699
|
Condensed consolidated statement of changes in equity
|
|
Called up share capital and share
premium1,2
|
Other equity
instruments3
|
Other reserves4
|
Retained earnings
|
Total
|
Non-controlling interests
|
Total equity
|
Year ended 31.12.23
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2023
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
Profit after tax
|
—
|
985
|
—
|
4,274
|
5,259
|
64
|
5,323
|
Currency translation movements
|
—
|
—
|
(1,101)
|
—
|
(1,101)
|
—
|
(1,101)
|
Fair value through other comprehensive income reserve
|
—
|
—
|
194
|
—
|
194
|
—
|
194
|
Cash flow hedges
|
—
|
—
|
3,528
|
—
|
3,528
|
—
|
3,528
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
(855)
|
(855)
|
—
|
(855)
|
Own credit
|
—
|
—
|
(710)
|
—
|
(710)
|
—
|
(710)
|
Total comprehensive income for the period
|
—
|
985
|
1,911
|
3,419
|
6,315
|
64
|
6,379
|
Employee share schemes and hedging thereof
|
124
|
—
|
—
|
497
|
621
|
—
|
621
|
Issue and redemption of other equity instruments
|
—
|
(30)
|
—
|
(38)
|
(68)
|
(312)
|
(380)
|
Other equity instruments coupons paid
|
—
|
(985)
|
—
|
—
|
(985)
|
—
|
(985)
|
Vesting of employee share schemes
|
—
|
—
|
(8)
|
(506)
|
(514)
|
—
|
(514)
|
Dividends paid
|
—
|
—
|
—
|
(1,210)
|
(1,210)
|
(64)
|
(1,274)
|
Repurchase of shares
|
(209)
|
—
|
209
|
(1,257)
|
(1,257)
|
—
|
(1,257)
|
Other movements
|
—
|
5
|
3
|
2
|
10
|
4
|
14
|
Balance as at 31 December 2023
|
4,288
|
13,259
|
(77)
|
53,734
|
71,204
|
660
|
71,864
|
Year ended 31.12.22
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2022
|
4,536
|
12,259
|
1,770
|
50,487
|
69,052
|
989
|
70,041
|
Profit after tax
|
—
|
905
|
—
|
5,023
|
5,928
|
45
|
5,973
|
Currency translation movements
|
—
|
—
|
2,032
|
—
|
2,032
|
—
|
2,032
|
Fair value through other comprehensive income reserve
|
—
|
—
|
(1,193)
|
—
|
(1,193)
|
—
|
(1,193)
|
Cash flow hedges
|
—
|
—
|
(6,382)
|
—
|
(6,382)
|
—
|
(6,382)
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
(281)
|
(281)
|
—
|
(281)
|
Own credit
|
—
|
—
|
1,463
|
—
|
1,463
|
—
|
1,463
|
Total comprehensive income for the period
|
—
|
905
|
(4,080)
|
4,742
|
1,567
|
45
|
1,612
|
Employee share schemes and hedging thereof
|
70
|
—
|
—
|
476
|
546
|
—
|
546
|
Issue and redemption of other equity instruments
|
—
|
1,032
|
—
|
28
|
1,060
|
(20)
|
1,040
|
Other
equity instruments coupons paid
|
—
|
(905)
|
—
|
—
|
(905)
|
—
|
(905)
|
Disposal of Absa holding
|
—
|
—
|
(84)
|
84
|
—
|
—
|
—
|
Vesting of employee share schemes
|
—
|
—
|
5
|
(485)
|
(480)
|
—
|
(480)
|
Dividends paid
|
—
|
—
|
—
|
(1,028)
|
(1,028)
|
(45)
|
(1,073)
|
Repurchase of shares
|
(233)
|
—
|
233
|
(1,508)
|
(1,508)
|
—
|
(1,508)
|
Own credit realisation
|
—
|
—
|
(36)
|
36
|
—
|
—
|
—
|
Other movements
|
—
|
(7)
|
—
|
(5)
|
(12)
|
(1)
|
(13)
|
Balance as at 31 December 2022
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
1
|
As at 31 December 2023, Called up share capital comprises
15,155m (December 2022:
15,871m) ordinary shares of
25p each.
|
2
|
For the period ended 31 December 2023, Barclays PLC executed two
share buy-backs totalling £1250m. Accordingly, it repurchased and
cancelled 837m shares. The
nominal value of £209m has
been transferred from Share capital to Capital redemption reserve
within Other reserves. For the year ended 31 December 2022, two
share buybacks were executed, totalling £1,500m. Accordingly, Barclays PLC
repurchased and cancelled 931m
shares. The nominal value of £233m was transferred from Share capital to
Capital redemption reserve within Other reserves.
|
3
|
Other equity instruments of £13,259m (December 2022: £13,284m) comprise AT1 securities issued by
Barclays PLC. There were three
issuances in the form of Fixed Rate Resetting Perpetual
Subordinated Contingent Convertible Securities for
£3,140m (net of
£10m issuance costs) and
two redemption of
£3,170m (net of £11m
issuance costs, transferred to retained earnings on redemption) for
the period ended 31 December 2023. During the period ended 31
December 2022, there were three
issuances in the form of Fixed Rate Resetting Perpetual
Subordinated Contingent Convertible Securities, for
£3,158m, which includes
issuance costs of £9m and
two redemptions totalling
£2,126m.
|
4
|
See Note 10 Other reserves.
|
Condensed consolidated cash flow statement
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Profit before tax
|
6,557
|
7,012
|
Adjustment for non-cash items
|
15,250
|
(8,514)
|
Net decrease/(increase) in loans and advances at amortised
cost
|
10,947
|
(24,949)
|
Net (decrease)/increase in deposits at amortised cost
|
(6,958)
|
26,349
|
Net (decrease)/increase in debt securities in issue
|
(19,640)
|
9,210
|
Changes in other operating assets and liabilities
|
(6,247)
|
21,811
|
Corporate income tax paid
|
(836)
|
(688)
|
Net cash from operating activities
|
(927)
|
30,231
|
Net cash from investing activities
|
(23,414)
|
(21,673)
|
Net cash from financing activities1
|
(1,389)
|
696
|
Effect of exchange rates on cash and cash equivalents
|
(5,053)
|
10,330
|
Net (decrease)/increase in cash and cash equivalents
|
(30,783)
|
19,584
|
Cash and cash equivalents at beginning of the period
|
278,790
|
259,206
|
Cash and cash equivalents at end of the period
|
248,007
|
278,790
|
1
|
Issuance and redemption of debt securities included in financing
activities relate to instruments that qualify as eligible
liabilities and satisfy regulatory requirements for MREL
instruments which came into effect during 2019.
|
Financial Statement Notes
1.Tax
The tax charge for 2023 was £1,234m (2022: £1,039m),
representing an effective tax rate (ETR) of 18.8% (2022: 14.8%).
Included in the 2023 tax charge is a credit in respect of payments
made on AT1 instruments that are classified as equity for
accounting purposes and tax relief on holdings of inflation-linked
government bonds.
|
As at 31.12.23
|
As at 31.12.22
|
Deferred tax assets and liabilities
|
£m
|
£m
|
UK
|
4,081
|
4,925
|
USA
|
1,359
|
1,576
|
Other territories
|
520
|
490
|
Deferred tax assets
|
5,960
|
6,991
|
Deferred tax liabilities
|
(22)
|
(16)
|
|
|
|
Analysis of deferred tax assets
|
|
|
Temporary differences
|
4,212
|
5,345
|
Tax losses
|
1,748
|
1,646
|
Deferred tax assets
|
5,960
|
6,991
|
2.Earnings per share
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Profit attributable to ordinary equity holders of the
parent
|
4,274
|
5,023
|
|
|
|
|
m
|
m
|
Basic weighted average number of shares in issue
|
15,445
|
16,333
|
Number of potential ordinary shares
|
450
|
534
|
Diluted weighted average number of shares
|
15,895
|
16,867
|
|
|
|
|
p
|
p
|
Basic earnings per ordinary share
|
27.7
|
30.8
|
Diluted earnings per ordinary share
|
26.9
|
29.8
|
3.Dividends on ordinary shares
It is Barclays' policy to declare and pay dividends on a
semi-annual basis. The 2023 full year dividend of 5.3p per ordinary
share will be paid on 3 April 2024 to the shareholders on the Share
Register on 1 March 2024. A half year dividend for 2023 of 2.7p
(H122: 2.25p) per ordinary share was paid on 15 September
2023.
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
Per share
|
Total
|
Per share
|
Total
|
Dividends paid during the period
|
p
|
£m
|
p
|
£m
|
Full year dividend paid during period
|
5.00
|
793
|
4.00
|
664
|
Interim dividend paid during the period
|
2.70
|
417
|
2.25
|
364
|
Total dividend
|
7.70
|
1,210
|
6.25
|
1,028
|
The Directors have confirmed their intention to initiate a share
buyback of up to £1.0bn after the balance sheet date. The
proposed share buyback is expected to commence in the first quarter
of 2024. The financial statements for the year ended 31 December
2023 do not reflect the impact of the proposed share buyback, which
will be accounted for as and when shares are repurchased by the
Company. Dividends and share buybacks are funded out of
distributable reserves.
4.Fair value of financial instruments
This section should be read in conjunction with Note 17, Fair value
of financial instruments of the Barclays PLC Annual Report 2023
which provides more detail about accounting policies adopted,
valuation methodologies used in calculating fair value and the
valuation control framework which governs oversight of valuations.
There have been no changes in the accounting policies adopted or
the valuation methodologies used.
Valuation
The following table shows the Group’s assets and liabilities
that are held at fair value disaggregated by valuation technique
(fair value hierarchy) and balance sheet
classification:
|
Valuation technique using
|
|
|
Quoted market prices
|
Observable inputs
|
Significant unobservable inputs
|
|
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
As at 31.12.23
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
94,658
|
73,438
|
6,509
|
174,605
|
Financial assets at fair value through the income
statement
|
5,831
|
192,571
|
8,249
|
206,651
|
Derivative financial instruments
|
107
|
253,189
|
3,540
|
256,836
|
Financial assets at fair value through other comprehensive
income
|
30,247
|
40,511
|
1,078
|
71,836
|
Investment property
|
—
|
—
|
2
|
2
|
Total assets
|
130,843
|
559,709
|
19,378
|
709,930
|
|
|
|
|
|
Trading portfolio liabilities
|
(29,274)
|
(29,027)
|
(368)
|
(58,669)
|
Financial liabilities designated at fair value
|
(117)
|
(296,200)
|
(1,222)
|
(297,539)
|
Derivative financial instruments
|
(81)
|
(245,310)
|
(4,653)
|
(250,044)
|
Total liabilities
|
(29,472)
|
(570,537)
|
(6,243)
|
(606,252)
|
|
|
|
|
|
As at 31.12.22
|
|
|
|
|
Trading portfolio assets
|
62,478
|
64,855
|
6,480
|
133,813
|
Financial assets at fair value through the income
statement
|
5,720
|
198,723
|
9,125
|
213,568
|
Derivative financial instruments
|
10,054
|
287,152
|
5,174
|
302,380
|
Financial assets at fair value through other comprehensive
income
|
20,704
|
44,347
|
11
|
65,062
|
Investment property
|
—
|
—
|
5
|
5
|
Total assets
|
98,956
|
595,077
|
20,795
|
714,828
|
|
|
|
|
|
Trading portfolio liabilities
|
(44,128)
|
(28,740)
|
(56)
|
(72,924)
|
Financial liabilities designated at fair value
|
(133)
|
(270,454)
|
(1,050)
|
(271,637)
|
Derivative financial instruments
|
(10,823)
|
(272,434)
|
(6,363)
|
(289,620)
|
Total liabilities
|
(55,084)
|
(571,628)
|
(7,469)
|
(634,181)
|
5.Subordinated liabilities
|
Year ended 31.12.23
|
Year ended 31.12.22
|
|
£m
|
£m
|
Opening balance as at 1 January
|
11,423
|
12,759
|
Issuances
|
1,523
|
1,477
|
Redemptions
|
(2,239)
|
(2,679)
|
Other
|
(213)
|
(134)
|
Closing balance
|
10,494
|
11,423
|
Issuances of £1,523m comprise £1,180m USD 7.119%
Fixed-to-Floating Rate Subordinated Callable Notes issued
externally by Barclays PLC, £315m USD Floating Rate Notes and
£28m JPY Floating Rate Notes issued externally by Barclays
subsidiaries.
Redemptions of £2,239m comprise £1,345m EUR 2% Fixed Rate
Subordinated Notes, £599m partial repurchase of USD 4.375%
Fixed Rate Subordinated Notes issued externally by Barclays PLC,
£194m USD Floating Rate Notes and £28m JPY Floating Rate
notes issued externally by Barclays subsidiaries, £43m EUR
Subordinated Floating Rate Notes and £30m USD Junior Undated
Floating Rate Notes issued externally by Barclays Bank
PLC.
Other movements predominantly comprise foreign exchange movements
and fair value hedge adjustments.
6.Provisions
|
As at 31.12.23
|
As at 31.12.22
|
|
£m
|
£m
|
Customer
redress
|
295
|
378
|
Legal,
competition and regulatory matters
|
99
|
159
|
Redundancy
and restructuring
|
397
|
136
|
Undrawn
contractually committed facilities and guarantees
|
504
|
583
|
Sundry
provisions
|
289
|
288
|
Total
|
1,584
|
1,544
|
7.Retirement benefits
As at 31 December 2023, the Group’s IAS 19 net pension
surplus across all schemes was £3.4bn (December 2022:
£4.5bn). The UK Retirement Fund (UKRF), which is the
Group’s main scheme, had an IAS 19 net pension surplus of
£3.6bn (December 2022: £4.7bn). The decrease in the
UKRF surplus during the year was driven by lower corporate bond
yields and the assets underperforming the discount
rate.
The UKRF annual funding update as at 30 September 2023 showed a
surplus of £2.03bn compared to £1.97bn at the 30
September 2022 triennial actuarial valuation. The improvement was
mainly due to asset returns outperforming the change in
liabilities.
8.Other reserves
|
As at 31.12.23
|
As at 31.12.22
|
|
£m
|
£m
|
Currency translation reserve
|
3,671
|
4,772
|
Fair value through other comprehensive income reserve
|
(1,366)
|
(1,560)
|
Cash flow hedging reserve
|
(3,707)
|
(7,235)
|
Own credit reserve
|
(240)
|
467
|
Other reserves and treasury shares
|
1,565
|
1,364
|
Total
|
(77)
|
(2,192)
|
Currency translation reserve
The currency translation reserve represents the cumulative gains
and losses on the retranslation of the Group’s net investment
in foreign operations, net of the effects of hedging.
As at 31 December 2023, there was a cumulative gain of £3,671m
(December 2022: £4,772m gain) in the currency translation
reserve, a loss during the period of £1,110m (2022: gain of
£2,032m) partially offset by a tax credit of £9m (2022:
nil). This principally reflects the strengthening of GBP against
USD and EUR during 2023, in contrast to the weakening of GBP
against USD and EUR during 2022.
Fair value through other comprehensive income reserve
The fair value through other comprehensive income reserve
represents the total of unrealised gains and losses on fair value
through other comprehensive income investments since initial
recognition.
As at 31 December 2023, there was a cumulative loss of £1,366m
(December 2022: £1,560m loss) in the reserve, a gain during
the period of £194m (2022: loss of £1,277m). This is
principally driven by a gain of £299m (2022: loss of
£1,836m) from the increase in fair value of bonds (net of
hedges) due to decreasing bond yields (as against increase in the
yields in 2022) across currencies. It is partially offset by a net
gain of £26m transferred to the income statement (2022: loss
of £111m transferred to the income statement and gain of
£84m transferred to retained earnings on the sale of a 14.90%
equity stake in Absa Group Limited), a tax charge of £78m
(2022: tax credit of £523m) and impairment of
£1m.
Cash flow hedging reserve
The cash flow hedging reserve represents the cumulative gains and
losses on effective cash flow hedging instruments that will be
recycled to the income statement when the hedged transactions
affect profit or loss.
As at 31 December 2023, there was a cumulative loss of £3,707m
(December 2022: £7,235m loss) in the cash flow hedging
reserve, a gain during the period of £3,528m, which partially
reversed the loss during 2022 of £6,382m. This principally
reflects a £4,447m gain driven by the fair value movement of
interest rate swaps held for hedging purposes as major interest
rate forward curves decreased (in contrast to the increase in
interest rate forward curves in 2022), as well as fair value gains
on currency swaps. This was offset by £423m of losses (2022:
£339m) transferred to the income statement, driven by
accumulated losses on interest rate swaps offset by gains on cross
currency swaps, and a tax charge of £1,342m (2022: credit of
£2,331m).
Own credit reserve
The own credit reserve reflects the cumulative own credit gains and
losses on financial liabilities at fair value. Amounts in the own
credit reserve are not recycled to profit or loss in future
periods.
As at 31 December 2023, there was a cumulative loss of £240m
(December 2022: £467m gain) in the own credit reserve, a loss
of £707m during the period 2022: gain of £1,427m). This
principally reflects a £983m loss (2022: gain of £2,091m)
from the tightening of credit spreads (in contrast to the widening
of spreads in 2022) partially offset by tax credit of £273m
(2022: tax charge of £616m) and own credit realisation of
£3m.
Other reserves and treasury shares
Other reserves relate to redeemed ordinary and preference shares
issued by the Group. Treasury shares relate to Barclays PLC shares
held principally in relation to the Group’s various share
schemes.
As at 31 December 2023, there was a balance of £1,565m
(December 2022: £1,364m gain). This principally reflects an
increase of £209m (December 2022: increase of £233m) due
to the repurchase of 837m shares (December 2022: 931m) as part of
the share buybacks conducted in 2023 offset by a £8m movement
(December 2022: £5m movement) in the treasury shares balance
held in relation to employee share schemes.
Appendix: Non-IFRS Performance Measures
The
Group’s management believes that the non-IFRS performance
measures included in this document provide valuable information to
the readers of the financial statements, as they enable the reader
to identify a more consistent basis for comparing the
businesses’ performance between financial periods, and
provide more detail concerning the elements of performance which
the managers of these businesses are most directly able to
influence or are relevant for an assessment of the Group. They also
reflect an important aspect of the way in which operating targets
are defined and performance is monitored by
management.
However,
any non-IFRS performance measures in this document are not a
substitute for IFRS measures and readers should consider the IFRS
measures as well.
Non-IFRS performance measures glossary
Measure
|
Definition
|
Loan: deposit ratio
|
Total
loans and advances at amortised cost divided by total deposits at
amortised cost. The components of the calculation have been
included on page 53.
|
Attributable profit
|
Profit after tax attributable to ordinary shareholders of the
parent.
|
Period end tangible equity refers to:
|
Period end tangible shareholders' equity (for Barclays
Group)
|
Shareholders' equity attributable to ordinary shareholders of the
parent, adjusted for the deduction of intangible assets and
goodwill.
|
Period end allocated tangible equity (for businesses)
|
Allocated
tangible equity is calculated as 13.5% (2022: 13.5%) of RWAs for each business, adjusted
for capital deductions, excluding goodwill and intangible assets,
reflecting the assumptions the Barclays Group uses for capital
planning purposes. Head Office allocated tangible equity represents
the difference between the Barclays Group’s tangible
shareholders’ equity and the amounts allocated to
businesses.
|
Average tangible equity refers to:
|
Average tangible shareholders’ equity (for Barclays
Group)
|
Calculated as the average of the previous month’s period end
tangible shareholders' equity and the current month’s period
end tangible shareholders' equity. The average tangible
shareholders’ equity for the period is the average of the
monthly averages within that period.
|
Average allocated tangible equity (for businesses)
|
Calculated as the average of the previous month’s period end
allocated tangible equity and the current month’s period end
allocated tangible equity. The average allocated tangible equity
for the period is the average of the monthly averages within that
period.
|
Return on tangible equity (RoTE) refers to:
|
Return on average tangible shareholders’ equity (for Barclays
Group)
|
Group
attributable profit, as a proportion of average tangible
shareholders’ equity. The components of the calculation have
been included on pages 70 to
71.
|
Return on average allocated tangible equity (for
businesses)
|
Business
attributable profit, as a proportion of that business's average
allocated tangible equity. The components of the calculation have
been included on pages 70 to
72.
|
Operating expenses excluding litigation and conduct
|
A measure of total operating expenses excluding litigation and
conduct charges.
|
Operating costs
|
A measure of total operating expenses excluding litigation and
conduct charges and UK bank levy.
|
Cost: income ratio
|
Total operating expenses divided by total income.
|
Loan loss rate
|
Quoted in basis points and represents total impairment charges
divided by total gross loans and advances held at amortised cost at
the balance sheet date.
|
Net interest margin
|
Net
interest income divided by the sum of average customer assets. The
components of the calculation have been included on page
26.
|
Tangible net asset value per share
|
Calculated
by dividing shareholders’ equity, excluding non-controlling
interests and other equity instruments, less goodwill and
intangible assets, by the number of issued ordinary shares. The
components of the calculation have been included on page
77.
|
Profit before impairment
|
Calculated by excluding credit impairment charges or releases from
profit before tax.
|
Structural cost actions
|
Cost actions taken to improve future financial
performance.
|
Performance measures excluding the impact of Q423 structural cost
actions
|
Calculated
by excluding the impact of Q423 structural cost actions from
performance measures. The components of the calculations for
Barclays Group and businesses have been included on pages
6 to 7 and pages 73 to 74
respectively.
|
Performance measures excluding the impact of the Over-issuance of
Securities
|
Calculated
by excluding the impact of the Over-issuance of Securities from
performance measures. The components of the calculations for
Barclays Group and businesses have been included on pages
6 to 7 and page 75 respectively.
|
Returns
|
Year ended 31.12.23
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
Return on average tangible equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable profit/(loss)
|
1,962
|
2,667
|
358
|
3,025
|
(713)
|
4,274
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average equity
|
14.0
|
31.7
|
6.1
|
37.8
|
4.0
|
55.8
|
Average goodwill and intangibles
|
(3.8)
|
—
|
(0.8)
|
(0.8)
|
(3.8)
|
(8.4)
|
Average tangible equity
|
10.2
|
31.7
|
5.3
|
37.0
|
0.2
|
47.4
|
|
|
|
|
|
|
|
Return on average tangible equity
|
19.2%
|
8.4%
|
6.7%
|
8.2%
|
n/m
|
9.0%
|
|
Year ended 31.12.22
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
Return on average tangible equity
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Attributable profit/(loss)
|
1,877
|
3,364
|
480
|
3,844
|
(698)
|
5,023
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average equity
|
13.6
|
32.8
|
5.7
|
38.5
|
4.3
|
56.4
|
Average goodwill and intangibles
|
(3.6)
|
—
|
(0.9)
|
(0.9)
|
(3.6)
|
(8.1)
|
Average tangible equity
|
10.0
|
32.8
|
4.8
|
37.6
|
0.7
|
48.3
|
|
|
|
|
|
|
|
Return on average tangible equity
|
18.7%
|
10.2%
|
10.0%
|
10.2%
|
n/m
|
10.4%
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable (loss)/profit
|
(111)
|
1,274
|
1,328
|
1,783
|
|
1,036
|
1,512
|
1,071
|
1,404
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average shareholders' equity
|
57.1
|
55.1
|
55.4
|
55.9
|
|
54.9
|
56.8
|
57.1
|
56.9
|
Average goodwill and intangibles
|
(8.2)
|
(8.6)
|
(8.7)
|
(8.3)
|
|
(8.2)
|
(8.2)
|
(8.1)
|
(8.1)
|
Average tangible shareholders' equity
|
48.9
|
46.5
|
46.7
|
47.6
|
|
46.7
|
48.6
|
49.0
|
48.8
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
(0.9)%
|
11.0%
|
11.4%
|
15.0%
|
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable profit
|
382
|
531
|
534
|
515
|
|
474
|
549
|
458
|
396
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated equity
|
14.1
|
14.0
|
14.2
|
13.9
|
|
13.7
|
13.5
|
13.6
|
13.7
|
Average goodwill and intangibles
|
(3.9)
|
(3.9)
|
(4.0)
|
(3.6)
|
|
(3.5)
|
(3.6)
|
(3.6)
|
(3.6)
|
Average allocated tangible equity
|
10.2
|
10.1
|
10.2
|
10.3
|
|
10.2
|
9.9
|
10.0
|
10.1
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
14.9%
|
21.0%
|
20.9%
|
20.0%
|
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
Barclays International
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable (loss)/profit
|
(124)
|
848
|
953
|
1,348
|
|
625
|
1,136
|
783
|
1,300
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated equity
|
37.6
|
37.6
|
38.0
|
38.1
|
|
39.9
|
40.1
|
38.2
|
36.0
|
Average goodwill and intangibles
|
(0.5)
|
(0.8)
|
(0.9)
|
(1.0)
|
|
(1.0)
|
(1.0)
|
(0.9)
|
(0.9)
|
Average allocated tangible equity
|
37.1
|
36.8
|
37.1
|
37.1
|
|
38.9
|
39.1
|
37.3
|
35.1
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(1.3)%
|
9.2%
|
10.3%
|
14.5%
|
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable (loss)/profit
|
(61)
|
721
|
798
|
1,209
|
|
454
|
1,015
|
579
|
1,316
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated equity
|
31.6
|
31.5
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
Average goodwill and intangibles
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
Average allocated tangible equity
|
31.6
|
31.5
|
31.8
|
31.8
|
|
33.7
|
34.0
|
32.7
|
30.8
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(0.8)%
|
9.2%
|
10.0%
|
15.2%
|
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
Consumer, Cards and Payments
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
Q423
|
Q323
|
Q223
|
Q123
|
|
Q422
|
Q322
|
Q222
|
Q122
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Attributable (loss)/profit
|
(63)
|
127
|
155
|
139
|
|
171
|
121
|
204
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Average allocated equity
|
6.0
|
6.1
|
6.2
|
6.3
|
|
6.2
|
6.1
|
5.5
|
5.2
|
Average goodwill and intangibles
|
(0.5)
|
(0.8)
|
(0.9)
|
(1.0)
|
|
(1.0)
|
(1.0)
|
(0.9)
|
(0.9)
|
Average allocated tangible equity
|
5.5
|
5.3
|
5.3
|
5.3
|
|
5.2
|
5.1
|
4.6
|
4.3
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
(4.5)%
|
9.6%
|
11.8%
|
10.5%
|
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding the impact of Q423 structural cost
actions
|
Year ended 31.12.23
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Total operating expenses
|
(4,415)
|
(8,458)
|
(3,303)
|
(11,761)
|
(755)
|
(16,931)
|
Q423 structural cost actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Total operating expenses excluding Q423 structural cost
actions
|
(4,247)
|
(8,270)
|
(3,185)
|
(11,455)
|
(302)
|
(16,004)
|
|
|
|
|
|
|
|
Total income
|
7,587
|
12,610
|
5,308
|
17,918
|
(127)
|
25,378
|
|
|
|
|
|
|
|
Cost: income ratio excluding Q423 structural cost
actions
|
56%
|
66%
|
60%
|
64%
|
n/m
|
63%
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
2,868
|
4,126
|
481
|
4,607
|
(918)
|
6,557
|
Pre-tax impact of Q423 structural cost actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Profit/(loss) before tax excluding Q423 structural cost
actions
|
3,036
|
4,314
|
599
|
4,913
|
(465)
|
7,484
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
1,962
|
2,667
|
358
|
3,025
|
(713)
|
4,274
|
Post-tax impact of Q423 structural cost actions
|
(122)
|
(140)
|
(100)
|
(240)
|
(376)
|
(739)
|
Attributable profit/(loss) excluding the impact of Q423 structural
cost actions
|
2,084
|
2,807
|
458
|
3,265
|
(337)
|
5,013
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average tangible equity
|
10.2
|
31.7
|
5.3
|
37.0
|
0.2
|
47.4
|
|
|
|
|
|
|
|
Return on average tangible equity excluding Q423 structural cost
actions
|
20.4%
|
8.9%
|
8.6%
|
8.8%
|
n/m
|
10.6%
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
15,445
|
Basic earnings per share
|
|
|
|
|
|
32.4p
|
Performance measures excluding the impact of Q423 structural cost
actions (continued)
|
Three months ended 31.12.23
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Total operating expenses
|
(1,187)
|
(2,266)
|
(936)
|
(3,202)
|
(531)
|
(4,920)
|
Q423 structural cost actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Total operating expenses excluding Q423 structural cost
actions
|
(1,019)
|
(2,078)
|
(818)
|
(2,896)
|
(78)
|
(3,993)
|
|
|
|
|
|
|
|
Total income
|
1,792
|
2,390
|
1,364
|
3,754
|
52
|
5,598
|
|
|
|
|
|
|
|
Cost: income ratio excluding Q423 structural cost
actions
|
57%
|
87%
|
60%
|
77%
|
n/m
|
71%
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
568
|
95
|
(68)
|
27
|
(485)
|
110
|
Pre-tax impact of Q423 structural cost actions
|
(168)
|
(188)
|
(118)
|
(306)
|
(453)
|
(927)
|
Profit/(loss) before tax excluding Q423 structural cost
actions
|
736
|
283
|
50
|
333
|
(32)
|
1,037
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
382
|
(61)
|
(63)
|
(124)
|
(369)
|
(111)
|
Post-tax impact of Q423 structural cost actions
|
(122)
|
(140)
|
(100)
|
(240)
|
(376)
|
(739)
|
Attributable profit excluding the impact of Q423 structural cost
actions
|
504
|
79
|
37
|
116
|
7
|
628
|
|
|
|
|
|
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
Average tangible equity
|
10.2
|
31.6
|
5.5
|
37.1
|
1.6
|
48.9
|
|
|
|
|
|
|
|
Return on average tangible equity excluding Q423 structural cost
actions
|
19.7%
|
1.0%
|
2.6%
|
1.3%
|
n/m
|
5.1%
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
15,092
|
Basic earnings per share
|
|
|
|
|
|
4.2p
|
Reconciliation of financial results
excluding adjusting items1
Year ended
|
31.12.23
|
|
31.12.22
|
|
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% change
|
Income
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
12,610
|
—
|
12,610
|
|
13,368
|
292
|
13,076
|
|
(4)
|
of which:
|
|
|
|
|
|
|
|
|
|
FICC
|
4,845
|
—
|
4,845
|
|
5,695
|
—
|
5,695
|
|
(15)
|
Equities
|
2,373
|
—
|
2,373
|
|
3,149
|
292
|
2,857
|
|
(17)
|
Global Markets
|
7,218
|
—
|
7,218
|
|
8,844
|
292
|
8,552
|
|
(16)
|
Consumer, Cards and Payments
|
5,308
|
—
|
5,308
|
|
4,499
|
—
|
4,499
|
|
18
|
Barclays International
|
17,918
|
—
|
17,918
|
|
17,867
|
292
|
17,575
|
|
2
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
(8,458)
|
(188)
|
(8,270)
|
|
(8,945)
|
(966)
|
(7,979)
|
|
(4)
|
Consumer, Cards and Payments
|
(3,303)
|
(118)
|
(3,185)
|
|
(3,052)
|
—
|
(3,052)
|
|
(4)
|
Barclays International
|
(11,761)
|
(306)
|
(11,455)
|
|
(11,997)
|
(966)
|
(11,031)
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
31.12.23
|
|
31.12.22
|
|
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
Statutory
|
Adjusting items1
|
Excluding adjusting items
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% change
|
Income
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
2,390
|
—
|
2,390
|
|
2,576
|
—
|
2,576
|
|
(7)
|
of which:
|
|
|
—
|
|
|
|
|
|
|
FICC
|
724
|
—
|
724
|
|
976
|
—
|
976
|
|
(26)
|
Equities
|
431
|
—
|
431
|
|
440
|
—
|
440
|
|
(2)
|
Global Markets
|
1,155
|
—
|
1,155
|
|
1,416
|
—
|
1,416
|
|
(18)
|
Consumer, Cards and Payments
|
2,390
|
—
|
2,390
|
|
2,576
|
—
|
2,576
|
|
(7)
|
Barclays International
|
3,754
|
—
|
3,754
|
|
3,862
|
—
|
3,862
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
(2,266)
|
(188)
|
(2,078)
|
|
(1,977)
|
—
|
(1,977)
|
|
(15)
|
Consumer, Cards and Payments
|
(936)
|
(118)
|
(818)
|
|
(766)
|
—
|
(766)
|
|
(22)
|
Barclays International
|
(3,202)
|
(306)
|
(2,896)
|
|
(2,743)
|
—
|
(2,743)
|
|
(17)
|
1
|
Adjusting items: Q423 structural cost actions in 2023 and impact of
the Over-issuance of Securities in 2022.
|
Notable Items
|
|
|
|
|
Year ended 31.12.23
|
Year ended 31.12.22
|
£m
|
Profit before tax
|
Attributable profit
|
Profit before tax
|
Attributable profit
|
Statutory
|
6,557
|
4,274
|
7,012
|
5,023
|
Net impact from the Over-issuance of Securities
|
—
|
—
|
(674)
|
(552)
|
Customer remediation costs on legacy loan portfolios
|
—
|
—
|
(282)
|
(228)
|
Settlements in principle in respect of industry-wide
devices investigations by SEC and CFTC
|
—
|
—
|
(165)
|
(165)
|
Other litigation and conduct
|
(37)
|
(17)
|
(184)
|
(167)
|
Structural cost actions
|
(1,046)
|
(826)
|
(151)
|
(123)
|
Re-measurement of UK DTAs
|
—
|
—
|
—
|
(346)
|
Excluding the impact of notable items
|
7,640
|
5,117
|
8,468
|
6,604
|
|
|
|
|
|
|
Three months ended 31.12.23
|
Three months ended 31.12.22
|
£m
|
Profit before tax
|
Attributable loss
|
Profit before tax
|
Attributable profit
|
Statutory
|
110
|
(111)
|
1,310
|
1,036
|
Net impact from the Over-issuance of Securities
|
—
|
—
|
—
|
—
|
Other litigation and conduct
|
(5)
|
(4)
|
(79)
|
(70)
|
Structural cost actions
|
(927)
|
(739)
|
(74)
|
(63)
|
Excluding the impact of notable items
|
1,042
|
632
|
1,463
|
1,169
|
The Group’s management believes that the non-IFRS
performance measures excluding notable items, included in the table
above, provide valuable information to enable users of the
financial statements to assess the performance of the Group. The
notable items are separately identified within the Group’s
results disclosures which, when excluded from Barclays’
statutory financials, provide an underlying profit and loss
performance of the Group and enables consistent comparison of
performance from one period to another.
These
non-IFRS performance measures excluding notable items are included
as a reference point only and are not incorporated within any of
the key financial metrics used in our Group Targets, which are measured on a
statutory basis.
Tangible net asset value per share
|
As at 31.12.23
|
As at 31.12.22
|
|
£m
|
£m
|
Total equity excluding non-controlling interests
|
71,204
|
68,292
|
Other equity instruments
|
(13,259)
|
(13,284)
|
Goodwill and intangibles
|
(7,794)
|
(8,239)
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
50,151
|
46,769
|
|
|
|
|
m
|
m
|
Shares in issue
|
15,155
|
15,871
|
|
|
|
|
p
|
p
|
Tangible net asset value per share
|
331
|
295
|
Shareholder Information
Results timetable1
|
|
|
Date
|
|
|
Ex-dividend date
|
|
|
29 February 2024
|
|
Dividend record date
|
|
|
1 March 2024
|
|
Cut off time of 5:00pm (UK time) for the receipt of Dividend
Reinvestment Programme (DRIP) Application Form Mandate
|
|
11 March 2024
|
|
Dividend payment date
|
|
|
3 April 2024
|
|
Q1 2024 Results Announcement
|
|
|
25 April 2024
|
|
|
|
|
|
|
|
For qualifying US and Canadian resident ADR holders, the 2023 full
year dividend of 5.3p per ordinary share becomes 21.2p per
ADS
(representing four shares). The ex-dividend, dividend record and
dividend payment dates for ADR holders are as shown
above
|
|
A DRIP is provided by Equiniti Financial Services Limited. The DRIP
enables the Company’s shareholders to elect to have their
cash dividend payments used to purchase the Company’s shares.
More information can be found
at www.shareview.co.uk/info/drip
|
|
DRIP participants will usually receive their additional ordinary
shares (in lieu of a cash dividend) three to four days after the
dividend payment date
|
|
Barclays PLC ordinary shares ISIN code: GB0031348658
|
|
Barclays PLC ordinary shares TIDM Code: BARC
|
|
|
|
|
Year ended
|
Year ended
|
|
|
|
Exchange rates2
|
31.12.23
|
31.12.22
|
% Change3
|
|
|
Period end - USD/GBP
|
1.28
|
1.21
|
6%
|
|
|
YTD average - USD/GBP
|
1.24
|
1.24
|
—
|
|
|
3 month average - USD/GBP
|
1.24
|
1.17
|
6%
|
|
|
Period end - EUR/GBP
|
1.15
|
1.13
|
2%
|
|
|
YTD average - EUR/GBP
|
1.15
|
1.17
|
(2)%
|
|
|
3 month average - EUR/GBP
|
1.15
|
1.15
|
—
|
|
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
|
Barclays PLC (p)
|
153.78
|
158.52
|
|
|
|
Barclays PLC number of shares (m)
|
15,155
|
15,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information please contact
|
|
|
|
|
|
|
|
|
|
|
|
Investor relations
|
Media relations
|
|
Marina Shchukina +44 (0) 20 7116 2526
|
Tom Hoskin +44 (0) 20 7116 4755
|
|
|
|
|
More information on Barclays can be found on our
website: home.barclays
|
|
|
|
|
|
|
|
Registered office
|
|
|
|
|
|
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20
7116 1000. Company number: 48839.
|
|
|
|
|
|
|
|
Registrar
|
|
|
|
|
|
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99
6DA, United Kingdom.
|
|
Tel:
+44 (0)371 384 2055 (UK and International telephone
number)4.
|
|
|
|
|
|
|
|
American Depositary Receipts (ADRs)
|
|
|
|
|
|
EQ Shareowner Services
|
|
P.O. Box 64504
|
|
St. Paul, MN 55164-0504
|
|
United States of America
|
|
shareowneronline.com
|
|
|
|
|
Toll Free Number: +1 800-990-1135
|
|
|
|
|
|
Outside the US +1 651-453-2128
|
|
|
|
|
|
|
|
|
|
|
|
Delivery of ADR certificates and overnight mail
|
|
|
|
|
|
EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101,
Mendota Heights, MN 55120-4100, USA.
|
|
1
|
Note that these dates are provisional and subject to
change.
|
2
|
The average rates shown above are derived from daily spot rates
during the year.
|
3
|
The change is the impact to GBP reported information.
|
4
|
Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding
UK public holidays in England and Wales.
|
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