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.
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BARCLAYS
PLC
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(Registrant)
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Date:
February 18, 2021
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By: /s/
Karen Rowe
--------------------------------
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Karen
Rowe
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Assistant
Secretary
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Barclays PLC
Results Announcement
31
December 2020
Table of Contents
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Results Announcement
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Page
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Notes
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1
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Performance
Highlights
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2-4
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Group
Chief Executive Officer’s Review
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5
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Group
Finance Director’s Review
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6-7
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Results
by Business
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Barclays
UK
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8-10
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Barclays
International
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11-14
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Head
Office
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15
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Quarterly
Results Summary
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16
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Quarterly
Results by Business
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17-22
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Performance Management
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●
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Margins
and Balances
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23
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Remuneration
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24-25
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Risk Management
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Risk
Management and Principal Risks
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26
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Credit
Risk
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27-40
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Market
Risk
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41
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●
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Treasury and
Capital Risk
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42-52
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Statement
of Directors’ Responsibilities
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53
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Condensed
Consolidated Financial Statements
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54-58
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Financial
Statement Notes
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59-64
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Appendix: Non-IFRS
Performance Measures
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65-74
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Shareholder
Information
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75
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BARCLAYS PLC, 1
CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44
(0) 20 7116 1000. COMPANY NO. 48839
Notes
This announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) No 596/2014 (as it
forms part of Retained EU Law as defined in the European Union
(Withdrawal) Act 2018).
The
terms Barclays or Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the year ended 31 December 2020 to the
corresponding 12 months of 2019 and balance sheet analysis as at 31
December 2020 with comparatives relating to 31 December 2019. 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 that can be
accessed at home.barclays/investor-relations/reports-and-events/latest-financial-results.
The
information in this announcement, which was approved by the Board
of Directors on 17 February 2021, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2020, which
contain an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) will be delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These
results will be furnished on Form 6-K with the US Securities and
Exchange Commission (SEC) as soon as practicable following their
publication. Once furnished with the SEC, a copy of the Form 6-K
will be available from the SEC’s website at www.sec.gov.
Barclays
is a frequent issuer in the debt capital markets and regularly
meets with investors via formal road-shows and other ad hoc
meetings. Consistent with its usual practice, Barclays expects that
from time to time over the coming quarter it will meet with
investors globally to discuss these results and other matters
relating to the Group.
Non-IFRS performance measures
Barclays
management believes that the non-IFRS performance measures included
in this document provide valuable information to the readers of the
financial statements as they enable the reader to identify a more
consistent basis for comparing the businesses’ performance
between financial periods and provide more detail concerning the
elements of performance which the managers of these businesses are
most directly able to influence or are relevant for an assessment
of the Group. They also reflect an important aspect of the way in
which operating targets are defined and performance is monitored by
Barclays management. However, any non-IFRS performance measures in
this document are not a substitute for IFRS measures and readers
should consider the IFRS measures as well. Refer to the appendix on
pages 65 to 74 for further information and calculations of non-IFRS
performance measures included throughout this document, and the
most directly comparable IFRS measures.
Forward-looking statements
This
document contains certain forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as
amended, with respect to the Group. Barclays cautions readers that
no forward-looking statement is a guarantee of future performance
and that actual results or other financial condition or performance
measures could differ materially from those contained in the
forward-looking statements. These forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements sometimes use words
such as ‘may’, ‘will’, ‘seek’,
‘continue’, ‘aim’,
‘anticipate’, ‘target’,
‘projected’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’,
‘goal’, ‘believe’, ‘achieve’ or
other words of similar meaning. Forward-looking statements can be
made in writing but also may be made verbally by members of the
management of the Group (including, without limitation, during
management presentations to financial analysts) in connection with
this document. Examples of forward-looking statements include,
among others, statements or guidance regarding or relating to the
Group’s future financial position, income growth, assets,
impairment charges, provisions, business strategy, capital,
leverage and other regulatory ratios, capital distributions
(including dividend payout ratios and expected payment strategies),
projected levels of growth in the banking and financial markets,
projected costs or savings, any commitments and targets, estimates
of capital expenditures, plans and objectives for future
operations, projected employee numbers, IFRS impacts and other
statements that are not historical fact. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. The forward-looking
statements speak only as at the date on which they are made.
Forward-looking statements may be affected by: changes in
legislation; the development of standards and interpretations under
IFRS, including evolving practices with regard to the
interpretation and application of accounting and regulatory
standards; the outcome of current and future legal proceedings and
regulatory investigations; future levels of conduct provisions; the
policies and actions of governmental and regulatory authorities;
the Group’s ability along with government and other
stakeholders to manage and mitigate the impacts of climate change
effectively; geopolitical risks; and the impact of competition. In
addition, factors including (but not limited to) the following may
have an effect: capital, leverage and other regulatory rules
applicable to past, current and future periods; UK, US, Eurozone
and global macroeconomic and business conditions; the effects of
any volatility in credit markets; market related risks such as
changes in interest rates and foreign exchange rates; effects of
changes in valuation of credit market exposures; changes in
valuation of issued securities; volatility in capital markets;
changes in credit ratings of any entity within the Group or any
securities issued by such entities; direct and indirect impacts of
the coronavirus (COVID-19) pandemic; instability as a result of the
UK’s exit from the European Union (EU), the effects of the
EU-UK Trade and Cooperation Agreement and the disruption that may
subsequently result in the UK and globally; the risk of
cyber-attacks, information or security breaches or technology
failures on the Group’s business or operations; and the
success of future acquisitions, disposals and other strategic
transactions. A number of these influences and factors are beyond
the Group’s control. As a result, the Group’s actual
financial position, future results, capital distributions, capital,
leverage or other regulatory ratios or other financial and
non-financial metrics or performance measures may differ materially
from the statements or guidance set forth in the Group’s
forward-looking statements. Additional risks and factors which may
impact the Group’s future financial condition and performance
are identified in our filings with the SEC (including, without
limitation, our Annual Report on Form 20-F for the fiscal year
ended 31 December 2020), which are available on the SEC’s
website at www.sec.gov.
Subject
to our obligations under the applicable laws and regulations of any
relevant jurisdiction, (including, without limitation, the UK and
the US), in relation to disclosure and ongoing information, we
undertake no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Performance Highlights
Helping support the economy during the COVID-19
pandemic
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COVID-19 support
Continuing to
support our customers, clients, communities and
colleagues
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●
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In
2020, provided over 680k payment holidays to customers,
c.£27bn of COVID-19 support to UK businesses1 and helped
businesses and institutions access global capital
markets
including
underwriting c.£1.5tn of new issuance2. Also waived
c.£100m of interest and fees to customers, and committed
£100m to a COVID-19 Community Aid Package
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Barclays’ diversified business model delivered a resilient
operating performance, allowing capital distributions to
shareholders equivalent to 5.0p per share
Despite the pandemic, Barclays remained profitable every quarter
during 2020 and delivered a full year Group profit before tax of
£3.1bn (2019: £4.4bn, including a
Payment Protection Insurance (PPI) provision of £1.4bn),
attributable profit of £1.5bn (2019: £2.5bn), a return on
tangible equity (RoTE) of 3.2% (2019: 5.3%) and earnings per share
(EPS) of 8.8p (2019: 14.3p)
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Income
Diversified
income streams with strong CIB income offsetting challenges in
Barclays UK and CC&P
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Group
income of £21.8bn up 1% versus prior year
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Barclays
International income of £15.9bn, up 8% versus prior
year
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-
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Corporate and Investment Bank (CIB) income of £12.5bn, up
22% due to strong Markets income reflecting market share
gains3 in
a buoyant trading environment, as well as strong Banking income,
resulting in the best ever year on a comparable basis for both
businesses4
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Consumer, Cards and Payments (CC&P) income of £3.4bn, down
22% driven by lower credit card balances, margin compression
and reduced payments activity
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●
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Barclays UK income of £6.3bn, down 14%
versus prior year reflecting lower unsecured lending
balances and interest rates, and COVID-19 customer support actions,
partially offset by mortgages growth
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Credit impairment charges
Increased
impairment provisioning driving higher coverage ratios across
portfolios
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Group credit impairment charges increased to
£4.8bn (2019: £1.9bn) due to the deterioration in
economic outlook driven by the COVID-19 pandemic
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Current
year charge includes £2.3bn of non-default provision for
expected future customer and client stress
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Total
balance sheet impairment allowance of £9.4bn (2019:
£6.6bn), resulting in higher coverage ratios for unsecured
consumer lending and wholesale portfolios of 12.3% (2019: 8.1%) and
1.5% (2019: 0.8%) respectively
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Costs5
Stable
cost: income ratio including structural cost actions
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Group
operating expenses of £13.7bn up 1% versus prior
year
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●
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2020
operating expenses reflect £0.4bn of structural cost actions
mainly taken in Q420 and additional COVID-19 related costs
resulting in a cost: income ratio of 63% (2019: 63%)
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Capital
Strong
capital position
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Common
equity tier 1 (CET1) ratio of 15.1% up 130bps versus prior
year
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●
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The
increase reflects profits, regulatory measures and cancellation of
the full year 2019 dividend payment, partially offset by the
announced 1.0p full year 2020 dividend and an increase in Risk
Weighted Assets (RWAs)
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Capital distributions
Return
of capital through dividends and share buybacks
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Capital
distributions announced of 5.0p per share in
aggregate:
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●
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1.0p
2020 full year dividend declared
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Intend
to initiate a share buyback of up to £700m, which would have
an effect of 23bps on the CET1 ratio
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Q420 performance
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Remained
profitable in Q420 despite the continuing impact of the
pandemic
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Q420
Group profit before tax of £0.6bn (Q419: £1.1bn) and
attributable profit of £0.2bn (Q419: £0.7bn), resulting
in a RoTE of 1.8% (Q419: 5.9%) and EPS of 1.3p (Q419:
3.9p)
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●
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Q420
Group income of £4.9bn, down 7% versus prior year
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●
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Q420
Barclays International income of £3.5bn, up 1% versus prior
year
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-
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Q420 CIB income of £2.6bn, up 14% versus prior
year driven by a 19%
increase in Markets income and 30% increase in Banking fees,
partially offset by a 12% decrease in Corporate income
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-
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Q420 CC&P income of £0.8bn, down 25% versus prior year and
down 3% versus prior quarter, as the impacts of the pandemic
continued to result in lower balances, margin compression and
reduced payments activity
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●
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Q420 Barclays UK income of £1.6bn, down
17% versus prior year but up 5% versus prior quarter,
reflecting lower unsecured lending balances and interest rates,
partially offset by mortgages growth
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●
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Q420
Group credit impairment charge of £0.5bn, down 6% versus prior
year and down 19% versus prior quarter
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Q420 Group operating
expenses of
£3.8bn5,
up 7% versus prior year and up 11% versus prior quarter,
including the UK bank levy of £0.3bn (Q419: £0.2bn) and
structural cost actions of £0.3bn
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●
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CET1 ratio of 15.1%6,
an increase of 50bps in Q420 mainly due to a
30bps benefit from
regulatory changes to software assets
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1
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Total payment
holidays granted as at 31 December 2020, business lending and
commercial paper issuance data as at 12 and 15 February 2021
respectively.
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2
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Across Equity
and Debt Capital Markets in Q220-Q420.
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3
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Data source:
Coalition Greenwich, Preliminary FY20 Competitor Analysis. Market
share represents Barclays share of the Global Industry Revenue
Pool. Analysis is based on Barclays internal business structure and
internal revenues.
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4
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Period covering
Q114-Q420. Pre 2014 financials were not restated following
re-segmentation in Q116.
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5
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Excluding
litigation and conduct.
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6
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On 12 February
2021 the Prudential Regulation Authority (PRA) launched a
consultation on certain items within the Basel standards that
remain to be implemented in the UK as well as setting out proposed
new PRA CRR rules. The proposals include reverting to the
previous treatment of 100% CET1 capital deduction for qualifying
software assets by the end of 2021, meaning the benefit in the CET1
ratio is likely to be reversed in future
periods.
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Group outlook and targets
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Outlook
Remains
uncertain and subject to change depending on the evolution and
persistence of the COVID-19 pandemic
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Returns
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●
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Barclays expects to
deliver meaningful year-on-year RoTE improvement in
2021
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Income
|
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●
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Headwinds to income
in Barclays UK are expected to persist in 2021 and the medium-term,
including the subdued demand for unsecured lending and the low
interest rate environment
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●
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Within
Barclays International, CC&P income outlook remains uncertain
and contingent on the evolution of US and UK spending and cards
balances; after a strong 2020 CIB performance, driven by Markets
and Banking income, the franchise is well positioned for the
future
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Impairment
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●
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Provided
macroeconomic assumptions remain consistent with expectations, the
Group expects that the full year 2021 impairment charge will be
materially below that of 2020
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Costs
|
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●
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COVID-19 related
expenses are likely to remain elevated in 2021. However, the Group
will continue to drive efficiencies while investing in its
franchise where appropriate
|
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Capital
|
|
●
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Barclays remains in
a strong capital position with a year end CET1 ratio of
15.1%
|
|
●
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Certain
headwinds to capital are likely in 2021, including procyclical
effects on RWAs, reversal of regulatory forbearance applied through
2020 and increased pension contributions
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Capital
distributions
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●
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Barclays
understands the importance of delivering attractive total cash
returns to shareholders
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●
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Announced a total
payout equivalent to 5.0p per share, consistent with the temporary
guardrails announced by the PRA in December 2020,
comprising:
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-
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1.0p
2020 full year dividend; and the
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-
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Intention to
initiate a share buyback of up to £700m, which is expected to
commence in Q121
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Targets
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Barclays remains
committed to its medium term targets:
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●
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Returns: RoTE of
greater than 10% over time
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●
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Cost
efficiency: Cost: income ratio below 60% over time
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●
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Capital
adequacy: CET1 ratio in the range of 13-14%
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Barclays Group results
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for the year ended
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31.12.20
|
31.12.19
|
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|
£m
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£m
|
% Change
|
|
Net interest income
|
8,122
|
9,407
|
(14)
|
|
Net fee, commission and other income
|
13,644
|
12,225
|
12
|
|
Total income
|
21,766
|
21,632
|
1
|
|
Credit impairment charges
|
(4,838)
|
(1,912)
|
|
|
Net operating income
|
16,928
|
19,720
|
(14)
|
|
Operating costs
|
(13,434)
|
(13,359)
|
(1)
|
|
UK bank levy
|
(299)
|
(226)
|
(32)
|
|
Operating expenses
|
(13,733)
|
(13,585)
|
(1)
|
|
Litigation and conduct
|
(153)
|
(1,849)
|
92
|
|
Total operating expenses
|
(13,886)
|
(15,434)
|
10
|
|
Other net income
|
23
|
71
|
(68)
|
|
Profit before tax
|
3,065
|
4,357
|
(30)
|
|
Tax charge
|
(604)
|
(1,003)
|
40
|
|
Profit after tax
|
2,461
|
3,354
|
(27)
|
|
Non-controlling interests
|
(78)
|
(80)
|
3
|
|
Other equity instrument holders
|
(857)
|
(813)
|
(5)
|
|
Attributable profit
|
1,526
|
2,461
|
(38)
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average tangible shareholders' equity
|
3.2%
|
5.3%
|
|
|
Average tangible shareholders' equity (£bn)
|
48.3
|
46.6
|
|
|
Cost: income ratio
|
64%
|
71%
|
|
|
Loan loss rate (bps)
|
138
|
55
|
|
|
Basic earnings per share
|
8.8p
|
14.3p
|
(38)
|
|
Dividend per share1
|
1.0p
|
3.0p
|
|
|
Share buyback announced2
|
700
|
-
|
|
|
Total
payout equivalent per share
|
5.0p
|
3.0p
|
67
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct3
|
|
|
|
|
Profit before tax
|
3,218
|
6,206
|
(48)
|
|
Attributable profit
|
1,638
|
4,194
|
(61)
|
|
Return on average tangible shareholders' equity
|
3.4%
|
9.0%
|
|
|
Cost: income ratio
|
63%
|
63%
|
|
|
Basic earnings per share
|
9.5p
|
24.4p
|
(61)
|
|
|
|
|
|
|
Balance sheet and capital
management4
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
342.6
|
339.1
|
1
|
|
Deposits at amortised cost
|
481.0
|
415.8
|
16
|
|
Tangible net asset value per share
|
269p
|
262p
|
3
|
|
Common equity tier 1 ratio
|
15.1%
|
13.8%
|
|
|
Common equity tier 1 capital
|
46.3
|
40.8
|
|
|
Risk weighted assets
|
306.2
|
295.1
|
|
|
Average UK leverage ratio
|
5.0%
|
4.5%
|
|
|
UK leverage ratio
|
5.3%
|
5.1%
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
Group liquidity pool (£bn)
|
266
|
211
|
26
|
|
Liquidity coverage ratio
|
162%
|
160%
|
|
|
Loan: deposit ratio
|
71%
|
82%
|
|
|
1
|
In response to
a request from the PRA, and to preserve additional capital for use
in serving Barclays customers and clients through the extraordinary
challenges presented by the COVID-19 pandemic, the Board agreed to
cancel the 6.0p per ordinary share full year 2019
dividend.
|
|
2
|
Barclays
intends to initiate a share buyback of up to £700m, which is
expected to commence in Q121.
|
|
3
|
Refer to pages
65 to 74 for further information and calculations of performance
measures excluding litigation and conduct.
|
|
4
|
Refer to pages
45 to 51 for further information on how capital, RWAs and leverage
are calculated.
|
Group Chief Executive Officer’s Review
“In a year in which the COVID-19 pandemic affected people
across the globe, 2020 demonstrated our strengths, our values, and
our resilience.
Throughout the pandemic we have focussed on preserving the
financial and operational integrity of the firm so that we can
maximise our support for clients and customers, for colleagues, and
for the communities in which we live and work.
In
the past year, we have helped companies to raise around £1.5tn
through the global capital markets1, extended around
£27bn to businesses through UK government lending schemes,
provided over 680k payment holidays to customers2, waived around
£100m of interest and fees, and committed £100m to
charities through our COVID-19 Community Aid Package.
2020
demonstrated the value of our diversified banking model, delivering
resilient Group results even in a difficult macroeconomic period,
driven by the performance of our CIB.
Total
income increased to £21.8bn. Within Barclays International,
CIB income was up 22%, while CC&P income was down 22%. In
Barclays UK, income was down 14%.
Pre-provision
profits3
were broadly stable at £8.1bn. However, impairment charges,
maintaining our cautious view of the impact of the pandemic,
totalled £4.8bn. The fourth quarter impairment charge of
c.£500m was however down 19% from the previous
quarter.
Group
profit before tax was £3.1bn for the year, and we remained
profitable in every quarter, including generating profit before tax
of £646m in the fourth quarter.
CIB
income was £12.5bn, with both Markets and Banking achieving
their best ever income performance4, up 45% and 8%
respectively. Corporate income was down 13%, including the impact
of lower interest rates. Overall, profit before tax in the CIB
increased 35% to £4bn.
Our
CC&P business made a loss before tax of £388m for the full
year due to impairment charges, despite returning to profit in the
third and fourth quarters.
Barclays
UK profit before tax, excluding litigation and conduct, decreased
78% to £578m, including £278m in the fourth quarter,
reflecting the impact of the COVID-19 pandemic driving higher
impairment.
Group
costs, excluding litigation and conduct, rose 1% to £13.7bn
which included structural cost actions, leading to a cost to income
ratio of 63%.
Group
RoTE was 3.2%, including 9.5% for the CIB, (7.5%) for CC&P, and
3.2% for Barclays UK. Earnings per share were 8.8p.
Our
CET1 capital ratio increased 50bps in the quarter, and 130bps in
the year to 15.1%, significantly ahead of our minimum
requirement.
Given
the strength of our business, we have decided the time is right to
resume capital distributions. We have today announced a total
payout equivalent to 5p per share, comprising a 1p 2020 full year
dividend and the intention to initiate a share buyback of up to
£700m. We expect to comment further on capital distributions
when appropriate.
Barclays
remains well capitalised, well provisioned for impairments, highly
liquid, with a strong balance sheet, and competitive market
positions across the Group. We expect that our resilient and
diversified business model will deliver a meaningful improvement in
returns in 2021.”
James E Staley, Group Chief Executive Officer
|
1
|
Across Equity
and Debt Capital Markets in Q220-Q420.
|
|
2
|
Total payment
holidays granted as at 31 December 2020, business lending and
commercial paper issuance data as at 12 and 15 February 2021
respectively.
|
|
3
|
Excluding
litigation and conduct.
|
|
4
|
Period covering
Q114 – Q420. Pre 2014 financials were not restated following
re-segmentation in Q116.
|
Group Finance Director’s Review
Group performance
|
●
|
Statutory
RoTE was 3.2% (2019: 5.3%) and statutory EPS was 8.8p (2019:
14.3p)
|
|
●
|
Profit
before tax was £3,065m (2019: £4,357m). Excluding
litigation and conduct, profit before tax was £3,218m (2019:
£6,206m)
|
|
●
|
Pre-provision
profits1
were broadly stable at £8,056m despite the pandemic,
benefitting from the Group’s diversified business model,
which included a strong performance in CIB offset by headwinds in
Barclays UK and CC&P
|
|
●
|
Total
income increased to £21,766m (2019: £21,632m). Barclays
UK income decreased 14%. Barclays International income increased
8%, with CIB income up 22% and CC&P income down
22%
|
|
●
|
Credit
impairment charges increased to £4,838m (2019: £1,912m)
due to the deterioration in economic outlook driven by the COVID-19
pandemic. The current year charge is broadly driven by £2,323m
of non-default provision for expected future customer and client
stress and £800m of single name wholesale loan charges. The
expected credit loss (ECL) provision remains highly uncertain as
the economic impact of the global pandemic continues to
evolve
|
|
●
|
Operating
expenses increased 1% to £13,733m, including structural cost
actions and additional COVID-19 related costs, resulting in a cost:
income ratio, excluding litigation and conduct, of 63% (2019: 63%).
Excluding structural cost actions of £368m (2019: £150m)
and £95m spend to date of Barclays’ COVID-19 Community
Aid Package, operating expenses would have been £13,270m
(2019: £13,435m), reflecting disciplined cost management and
efficiencies, resulting in a cost: income ratio of 61% (2019:
62%)
|
|
●
|
Attributable
profit was £1,526m (2019: £2,461m). Excluding litigation
and conduct, attributable profit was £1,638m (2019:
£4,194m), generating a RoTE of 3.4% (2019: 9.0%) and EPS of
9.5p (2019: 24.4p)
|
|
●
|
Total
assets increased to £1,350bn (December 2019: £1,140bn)
primarily due to a £73bn increase in derivative assets driven
by a decrease in major interest rate curves and increased client
activity, a £42bn increase in financial assets at fair value
due to an increase in reverse repurchase agreements and similar
secured lending and £41bn increase in cash and balances at
central banks
|
|
●
|
Loans
and advances at amortised cost increased by £4bn to
£343bn, which reflected £12bn of lending under the
government backed loan schemes and £5bn of mortgage growth,
partially offset by lower unsecured lending balances
|
|
●
|
Deposits
at amortised cost increased by £65bn to £481bn primarily
due to CIB clients increasing liquidity, and lower consumer
spending levels
|
|
●
|
Tangible
net asset value (TNAV) per share increased to 269p (December 2019:
262p) primarily reflecting 8.8p of statutory EPS
|
Group capital and leverage
|
●
|
The
CET1 ratio increased to 15.1% (December 2019: 13.8%), reflecting
headroom of 3.9% above the Maximum Distributable Amount (MDA)
hurdle of 11.2%
|
|
|
-
|
CET1
capital increased by £5.5bn to £46.3bn reflecting
resilient capital generation through £7.9bn of profit before
tax, excluding credit impairment charges of £4.8bn, and a
£1.0bn increase due to the cancellation of the full year 2019
dividend. These increases were partially offset by £0.9bn of
AT1 coupons paid and the announced 1.0p full year 2020 dividend.
The CET1 capital increase also reflects regulatory measures for
IFRS 9 transitional relief, prudent valuation and qualifying
software assets
|
|
|
-
|
RWAs
increased by £11.1bn to £306.2bn primarily due to higher
market volatility, increased client activity and a reduction in
credit quality within CIB, partially offset by lower consumer
lending
|
|
●
|
The
average UK leverage ratio increased to 5.0% (December 2019: 4.5%)
primarily driven by the increase in Tier 1 (T1) capital. The
average leverage exposure increased to £1,147bn (December
2019: £1,143bn) primarily driven by an increase in securities
financing transactions (SFTs) and trading portfolio assets (TPAs)
largely driven by an increase in secured lending and client
activity within CIB, partially offset by the PRA’s early
adoption of CRR II settlement netting
|
|
1
|
Excluding litigation and
conduct.
|
Group funding and liquidity
|
●
|
The
liquidity pool was £266bn (December 2019: £211bn) and the
liquidity coverage ratio (LCR) remained significantly above the
100% regulatory requirement at 162% (December 2019: 160%),
equivalent to a surplus of £99bn (December 2019: £78bn).
The increase in the liquidity pool, LCR and surplus over the year
was driven by a 16% growth in deposits, which was largely a
consequence of government and central bank policy response to the
COVID-19 pandemic. The reduction in Q420 reflects actions taken to
manage down surplus liquidity proactively as the prevailing
uncertainty from earlier in the year abated
|
|
●
|
Wholesale
funding outstanding, excluding repurchase agreements, was
£145.0bn (December 2019: £147.1bn). The Group issued
£7.9bn equivalent of minimum requirement for own funds and
eligible liabilities (MREL) instruments from Barclays PLC (the
Parent company) during the year. The Group is well advanced in its
MREL issuance plans relative to the estimated 1 January 2022
requirement
|
Other matters
|
●
|
As at
31 December 2020, the Group held a residual provision of £129m
relating to PPI, following a provision release of £55m in Q420
on resolution of the items received up to and including Q319.
Observations from resolved complaints support the residual
provision level, which is expected to be utilised in
2021
|
|
●
|
Following
the UK’s exit from the EU on 31 December 2020, Barclays
remains well positioned to continue providing services in the EU
through Barclays Europe (operating through Barclays Bank Ireland
PLC) which was expanded post the EU referendum vote to ensure
continuity of services to Barclays International clients in
Europe
|
|
●
|
The
High Court has indicated that judgment in relation to the civil
action brought against Barclays Bank PLC by PCP Capital Partners
LLP and PCP International Finance Limited, under which PCP is
seeking damages of up to approximately £819m, is imminent. The
outcome of the judgement, and any financial impact on the Group, is
unknown. Barclays is defending the claim. See Note 26 to the
audited financial statements for the year ended 31 December 2020
contained in the Barclays PLC Annual Report 2020 for further
details
|
Capital distributions
|
●
|
Barclays
understands the importance of delivering attractive total cash
returns to shareholders. Barclays is therefore committed to
maintaining an appropriate balance between total cash returns to
shareholders, investment in the business and maintaining a strong
capital position. Going forward, Barclays intends to pay a
progressive ordinary dividend, taking into account these objectives
and the earnings outlook of the Group. It is also the Board’s
intention to continue to supplement the ordinary dividends with
additional cash returns, including share buybacks, to shareholders
as and when appropriate
|
|
●
|
Announced
a total payout equivalent to 5.0p per share, consistent with the
temporary guardrails announced by the PRA in December 2020,
comprising:
|
|
|
-
|
1.0p
2020 full year dividend; and the
|
|
|
-
|
Intention
to initiate a share buyback of up to £700m which is expected
to commence in Q121
|
Tushar Morzaria, Group Finance Director
Results by Business
|
Barclays UK
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
5,234
|
5,888
|
(11)
|
|
Net fee, commission and other income
|
1,113
|
1,465
|
(24)
|
|
Total income
|
6,347
|
7,353
|
(14)
|
|
Credit impairment charges
|
(1,467)
|
(712)
|
|
|
Net operating income
|
4,880
|
6,641
|
(27)
|
|
Operating costs
|
(4,270)
|
(3,996)
|
(7)
|
|
UK bank levy
|
(50)
|
(41)
|
(22)
|
|
Operating expenses
|
(4,320)
|
(4,037)
|
(7)
|
|
Litigation and conduct
|
(32)
|
(1,582)
|
98
|
|
Total operating expenses
|
(4,352)
|
(5,619)
|
23
|
|
Other net income
|
18
|
-
|
|
|
Profit before tax
|
546
|
1,022
|
(47)
|
|
Attributable profit
|
325
|
281
|
16
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
205.4
|
193.7
|
|
|
Total assets
|
289.1
|
257.8
|
|
|
Customer deposits at amortised cost
|
240.5
|
205.5
|
|
|
Loan: deposit ratio
|
89%
|
96%
|
|
|
Risk weighted assets
|
73.7
|
74.9
|
|
|
Period end allocated tangible equity
|
9.7
|
10.3
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
Average loan to value of mortgage portfolio1
|
51%
|
51%
|
|
|
Average loan to value of new mortgage lending1
|
68%
|
68%
|
|
|
Number of branches
|
859
|
963
|
|
|
Mobile banking active customers
|
9.2m
|
8.4m
|
|
|
30 day arrears rate - Barclaycard Consumer UK
|
1.7%
|
1.7%
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
3.2%
|
2.7%
|
|
|
Average allocated tangible equity (£bn)
|
10.1
|
10.3
|
|
|
Cost: income ratio
|
69%
|
76%
|
|
|
Loan loss rate (bps)
|
68
|
36
|
|
|
Net interest margin
|
2.61%
|
3.09%
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
|
Profit before tax
|
578
|
2,604
|
(78)
|
|
Attributable profit
|
343
|
1,813
|
(81)
|
|
Return on average allocated tangible equity
|
3.4%
|
17.5%
|
|
|
Cost: income ratio
|
68%
|
55%
|
|
|
1
|
Average loan to
value of mortgages is balance weighted and reflects both
residential and buy-to-let (BTL) mortgage portfolios within the
Home Loans portfolio.
|
|
2
|
Refer to pages
65 to 74 for further information and calculations of performance
measures excluding litigation and conduct.
|
|
Analysis of Barclays UK
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
Personal Banking
|
3,522
|
4,009
|
(12)
|
|
Barclaycard Consumer UK
|
1,519
|
1,992
|
(24)
|
|
Business Banking
|
1,306
|
1,352
|
(3)
|
|
Total income
|
6,347
|
7,353
|
(14)
|
|
|
|
|
|
|
Analysis of credit impairment charges
|
|
|
|
|
Personal Banking
|
(380)
|
(195)
|
(95)
|
|
Barclaycard Consumer UK
|
(881)
|
(472)
|
(87)
|
|
Business Banking
|
(206)
|
(45)
|
|
|
Total credit impairment charges
|
(1,467)
|
(712)
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
|
Personal Banking
|
157.3
|
151.9
|
|
|
Barclaycard Consumer UK
|
9.9
|
14.7
|
|
|
Business Banking
|
38.2
|
27.1
|
|
|
Total loans and advances to customers at amortised
cost
|
205.4
|
193.7
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
Personal Banking
|
179.7
|
159.2
|
|
|
Barclaycard Consumer UK
|
0.1
|
-
|
|
|
Business Banking
|
60.7
|
46.3
|
|
|
Total customer deposits at amortised cost
|
240.5
|
205.5
|
|
Barclays
UK continued to support customers throughout the challenging
operating environment, increasing lending by £11.7bn
predominantly through Bounce Back Loan Scheme (BBLS) and
Coronavirus Business Interruption Loan Scheme (CBILS) loans to
small and medium-sized enterprises (SMEs), as well as delivering
strong mortgage growth. Customer deposit growth of £35bn added
to a strong liquidity position reflected in the full year loan:
deposit ratio of 89%, 7% lower than prior year. Full year RoTE of
3.4%, excluding litigation and conduct, was materially below
historical performance, reflecting the impact of the COVID-19
pandemic as well as ongoing investment spend, including structural
cost actions to continue to transform the business over
time.
2020 compared to 2019
Income statement
|
●
|
Profit
before tax, excluding litigation and conduct, decreased 78% to
£578m. RoTE was 3.4% (2019: 17.5%) reflecting a challenging
operating environment and materially higher credit impairment
charges
|
|
●
|
Total
income decreased 14% to £6,347m. Net interest income reduced
11% to £5,234m with a net interest margin (NIM) of 2.61%
(2019: 3.09%). Net fee, commission and other income decreased 24%
to £1,113m
|
|
|
-
|
Personal
Banking income decreased 12% to £3,522m, reflecting deposit
margin compression from lower interest rates, lower unsecured
lending balances, and COVID-19 customer support actions, partially
offset by balance growth in deposits and mortgages, as well as the
transfer of Barclays Partner Finance (BPF) from Barclays
International in Q220
|
|
|
-
|
Barclaycard
Consumer UK income decreased 24% to £1,519m as reduced
borrowing and spend levels by customers resulted in a lower level
of interest earning lending (IEL) balances, as well as lower debt
sales
|
|
|
-
|
Business
Banking income decreased 3% to £1,306m due to deposit margin
compression from lower interest rates, lower transactional fee
volumes as a result of COVID-19 and related customer support
actions, partially offset by lending and deposit balance growth
from continued support for SMEs through £11.0bn of BBLS and
CBILS loans
|
|
●
|
Credit
impairment charges increased to £1,467m (2019: £712m) due
to the deterioration in economic outlook driven by the COVID-19
pandemic. The current year charge is broadly driven by £847m
of non-default provision for expected future customer and client
stress. As at 31 December 2020, 30 and 90 day arrears rates in UK
cards were 1.7% (Q419: 1.7%) and 0.8% (Q419: 0.8%)
respectively
|
|
●
|
Operating
expenses increased 7% to £4,320m reflecting investment spend
including structural cost actions, higher servicing and financial
assistance costs, and the transfer of BPF, partially offset by
efficiency savings
|
Balance sheet
|
●
|
Loans
and advances to customers at amortised cost increased 6% to
£205.4bn predominantly from continued support for SMEs through
£11.0bn of BBLS and CBILS lending, £5.1bn of mortgage
growth following a strong flow of new applications as well as
strong customer retention and the £2.4bn transfer of BPF,
partially offset by £6.6bn lower unsecured lending
balances
|
|
●
|
Customer
deposits at amortised cost increased 17% to £240.5bn
reflecting an increase of £20.5bn and £14.4bn in Personal
Banking and Business Banking respectively, further strengthening
the liquidity position and contributing to a loan: deposit ratio of
89% (2019: 96%)
|
|
●
|
RWAs
decreased to £73.7bn (December 2019: £74.9bn) driven by
lower unsecured lending balances, partially offset by growth in
mortgages and the transfer of BPF
|
|
Barclays International
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
3,282
|
3,941
|
(17)
|
|
Net trading income
|
6,920
|
4,199
|
65
|
|
Net fee, commission and other income
|
5,719
|
6,535
|
(12)
|
|
Total income
|
15,921
|
14,675
|
8
|
|
Credit impairment charges
|
(3,280)
|
(1,173)
|
|
|
Net operating income
|
12,641
|
13,502
|
(6)
|
|
Operating costs
|
(8,765)
|
(9,163)
|
4
|
|
UK bank levy
|
(240)
|
(174)
|
(38)
|
|
Operating expenses
|
(9,005)
|
(9,337)
|
4
|
|
Litigation and conduct
|
(48)
|
(116)
|
59
|
|
Total operating expenses
|
(9,053)
|
(9,453)
|
4
|
|
Other net income
|
28
|
69
|
(59)
|
|
Profit before tax
|
3,616
|
4,118
|
(12)
|
|
Attributable profit
|
2,220
|
2,816
|
(21)
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
122.7
|
132.8
|
|
|
Trading portfolio assets
|
127.7
|
113.3
|
|
|
Derivative financial instrument assets
|
301.8
|
228.9
|
|
|
Financial assets at fair value through the income
statement
|
170.7
|
128.4
|
|
|
Cash collateral and settlement balances
|
97.5
|
79.4
|
|
|
Other assets
|
221.4
|
178.6
|
|
|
Total assets
|
1,041.8
|
861.4
|
|
|
Deposits at amortised cost
|
240.5
|
210.0
|
|
|
Derivative financial instrument liabilities
|
300.4
|
228.9
|
|
|
Loan: deposit ratio
|
51%
|
63%
|
|
|
Risk weighted assets
|
222.3
|
209.2
|
|
|
Period end allocated tangible equity
|
30.2
|
29.6
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
7.1%
|
9.0%
|
|
|
Average allocated tangible equity (£bn)
|
31.5
|
31.2
|
|
|
Cost: income ratio
|
57%
|
64%
|
|
|
Loan loss rate (bps)
|
257
|
86
|
|
|
Net interest margin
|
3.64%
|
4.07%
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
|
|
Profit before tax
|
3,664
|
4,234
|
(13)
|
|
Attributable profit
|
2,258
|
2,906
|
(22)
|
|
Return on average allocated tangible equity
|
7.2%
|
9.3%
|
|
|
Cost: income ratio
|
57%
|
64%
|
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
FICC
|
5,138
|
3,364
|
53
|
|
Equities
|
2,471
|
1,887
|
31
|
|
Markets
|
7,609
|
5,251
|
45
|
|
Advisory
|
561
|
776
|
(28)
|
|
Equity capital markets
|
473
|
329
|
44
|
|
Debt capital markets
|
1,697
|
1,430
|
19
|
|
Banking fees
|
2,731
|
2,535
|
8
|
|
Corporate lending
|
590
|
765
|
(23)
|
|
Transaction banking
|
1,546
|
1,680
|
(8)
|
|
Corporate
|
2,136
|
2,445
|
(13)
|
|
Total income
|
12,476
|
10,231
|
22
|
|
Credit impairment charges
|
(1,559)
|
(157)
|
|
|
Net operating income
|
10,917
|
10,074
|
8
|
|
Operating costs
|
(6,689)
|
(6,882)
|
3
|
|
UK bank levy
|
(226)
|
(156)
|
(45)
|
|
Operating expenses
|
(6,915)
|
(7,038)
|
2
|
|
Litigation and conduct
|
(4)
|
(109)
|
96
|
|
Total operating expenses
|
(6,919)
|
(7,147)
|
3
|
|
Other net income
|
6
|
28
|
(79)
|
|
Profit before tax
|
4,004
|
2,955
|
35
|
|
Attributable profit
|
2,554
|
1,980
|
29
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
92.4
|
92.0
|
|
|
Trading portfolio assets
|
127.5
|
113.3
|
|
|
Derivative financial instrument assets
|
301.7
|
228.8
|
|
|
Financial assets at fair value through the income
statement
|
170.4
|
127.7
|
|
|
Cash collateral and settlement balances
|
96.7
|
78.5
|
|
|
Other assets
|
194.9
|
155.3
|
|
|
Total assets
|
983.6
|
795.6
|
|
|
Deposits at amortised cost
|
175.2
|
146.2
|
|
|
Derivative financial instrument liabilities
|
300.3
|
228.9
|
|
|
Risk weighted assets
|
192.2
|
171.5
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
9.5%
|
7.6%
|
|
|
Average allocated tangible equity (£bn)
|
27.0
|
25.9
|
|
|
Cost: income ratio
|
55%
|
70%
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
|
|
Profit before tax
|
4,008
|
3,064
|
31
|
|
Attributable profit
|
2,556
|
2,064
|
24
|
|
Return on average allocated tangible equity
|
9.5%
|
8.0%
|
|
|
Cost: income ratio
|
55%
|
69%
|
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
Consumer, Cards and Payments
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
2,198
|
2,822
|
(22)
|
|
Net fee, commission, trading and other income
|
1,247
|
1,622
|
(23)
|
|
Total income
|
3,445
|
4,444
|
(22)
|
|
Credit impairment charges
|
(1,721)
|
(1,016)
|
(69)
|
|
Net operating income
|
1,724
|
3,428
|
(50)
|
|
Operating costs
|
(2,076)
|
(2,281)
|
9
|
|
UK bank levy
|
(14)
|
(18)
|
22
|
|
Operating expenses
|
(2,090)
|
(2,299)
|
9
|
|
Litigation and conduct
|
(44)
|
(7)
|
|
|
Total operating expenses
|
(2,134)
|
(2,306)
|
7
|
|
Other net income
|
22
|
41
|
(46)
|
|
(Loss)/profit before tax
|
(388)
|
1,163
|
|
|
Attributable (loss)/profit
|
(334)
|
836
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
30.3
|
40.8
|
|
|
Total assets
|
58.2
|
65.8
|
|
|
Deposits at amortised cost
|
65.3
|
63.8
|
|
|
Risk weighted assets
|
30.1
|
37.7
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
30 day arrears rate – Barclaycard US
|
2.5%
|
2.7%
|
|
|
US cards customer FICO score distribution
|
|
|
|
|
<660
|
13%
|
14%
|
|
|
>660
|
87%
|
86%
|
|
|
Total number of Barclaycard payments clients
|
c.365,000
|
c.376,000
|
|
|
Value of payments processed (£bn)1
|
274
|
354
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Return on average allocated tangible equity
|
(7.5%)
|
15.8%
|
|
|
Average allocated tangible equity (£bn)
|
4.5
|
5.3
|
|
|
Cost: income ratio
|
62%
|
52%
|
|
|
Loan loss rate (bps)
|
517
|
234
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct2
|
£m
|
£m
|
|
|
(Loss)/profit before tax
|
(344)
|
1,170
|
|
|
Attributable (loss)/profit
|
(298)
|
842
|
|
|
Return on average allocated tangible equity
|
(6.7%)
|
15.9%
|
|
|
Cost: income ratio
|
61%
|
52%
|
|
|
1
|
Includes £268bn (2019:
£272bn) of merchant acquiring payments.
|
|
2
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
Barclays
International continued to support its customers and clients
through the COVID-19 pandemic by providing or facilitating lending,
through the range of support programmes which have been introduced,
as well as enabling the raising of debt and equity financing in the
capital markets. Support actions, including payment holidays, were
introduced to help customers and clients. Despite the challenging
operating environment, Barclays International delivered a RoTE,
excluding litigation and conduct, of 7.2%, reflecting the benefits
of a diversified business model.
2020 compared to 2019
Income statement
|
●
|
Profit
before tax, excluding litigation and conduct, decreased 13% to
£3,664m with a RoTE of 7.2% (2019: 9.3%), reflecting a RoTE of
9.5% (2019: 8.0%) in CIB and (6.7)% (2019: 15.9%) in
CC&P
|
|
●
|
Total
income increased to £15,921m (2019:
£14,675m)
|
|
|
-
|
CIB
income increased 22% to £12,476m driven by Markets and Banking
which both had their best ever year on a comparable
basis1
|
|
|
-
|
Markets
income increased 45% to £7,609m reflecting gains in market share as
well as an increase in market size2. FICC income increased 53% to
£5,138m driven by strong performances in macro and credit,
mainly reflecting wider spreads. Equities income increased 31% to
£2,471m driven by derivatives and cash due to higher levels of
client activity and volatility
|
|
|
-
|
Banking
fees income increased 8% to £2,731m as a strong performance in
equity and debt capital markets, driven by market size, was offset
by lower fee income in advisory, which was impacted by a reduced
fee pool3
|
|
|
-
|
Within
Corporate, Transaction banking income decreased 8% to £1,546m
as deposit balance growth was more than offset by margin
compression. Corporate lending income decreased by 23% to
£590m reflecting c.£210m of losses on the mark to market
of lending and related hedge positions, and the carry costs of
those hedges
|
|
|
-
|
CC&P
income decreased 22% to £3,445m reflecting lower cards
balances, margin compression and reduced payments activity, which
were impacted by the COVID-19 pandemic, and the transfer of BPF to
Barclays UK in Q220. Q220 included a c.£100m valuation loss on
Barclays’ preference shares in Visa Inc. resulting from the
impact of the Supreme Court ruling concerning charges paid by
merchants
|
|
●
|
Credit
impairment charges increased to £3,280m (2019:
£1,173m)
|
|
|
-
|
CIB
credit impairment charges increased to £1,559m (2019:
£157m) due to the deterioration in economic outlook driven by
the COVID-19 pandemic. The current year charge is broadly driven by
£711m of non-default provision for future expected customer
and client stress and c.£800m of single name wholesale loan
charges
|
|
|
-
|
CC&P
credit impairment charges increased to £1,721m (2019:
£1,016m) due to the deterioration in economic outlook driven
by the COVID-19 pandemic. The current year charge is broadly driven
by £752m of non-default provisions for future expected
customer and client stress. As at 31 December 2020, 30 and 90 day
arrears in US cards were 2.5% (Q419: 2.7%) and 1.4% (Q419: 1.4%)
respectively
|
|
●
|
Operating
expenses decreased 4% to £9,005m
|
|
|
-
|
CIB
operating expenses decreased 2% to £6,915m due to cost
efficiencies and discipline in the current environment partially
offset by a higher bank levy charge mainly due to the
non-recurrence of prior year adjustments
|
|
|
-
|
CC&P
operating expenses decreased 9% to £2,090m reflecting cost
efficiencies, lower marketing spend due to the impacts of the
COVID-19 pandemic and transfer of BPF
|
Balance sheet
|
●
|
Loans
and advances at amortised cost decreased £10.1bn to
£122.7bn due to lower unsecured lending balances in
CC&P
|
|
●
|
Trading
portfolio assets increased £14.4bn to £127.7bn due to
increased client activity
|
|
●
|
Derivative
financial instruments assets increased £72.9bn and liabilities
increased £71.5bn to £301.8bn and £300.4bn
respectively driven by a decrease in major interest rate curves and
increased client activity
|
|
●
|
Financial
assets at fair value through the income statement increased
£42.3bn to £170.7bn driven by reverse repurchase
agreements and similar secured lending
|
|
●
|
Cash
collateral and settlements increased £18.1bn to £97.5bn
predominantly due to increased activity
|
|
●
|
Other
assets increased £42.8bn to £221.4bn due to an increase
in cash at central banks and securities within the liquidity
pool
|
|
●
|
Deposits
at amortised cost increased £30.5bn to £240.5bn due to
CIB clients increasing liquidity
|
|
●
|
RWAs
increased to £222.3bn (December 2019: £209.2bn) primarily
due to increased market volatility, client activity and a reduction
in credit quality within CIB, partially offset by lower CC&P
balances
|
|
1
|
Period covering Q114 – Q420. Pre
2014 financials were not restated following re-segmentation in
Q116.
|
|
2
|
Data source: Coalition Greenwich,
Preliminary FY20 Competitor Analysis. Market share represents
Barclays share of the Global Industry Revenue Pool. Analysis is
based on Barclays internal business structure and internal
revenues.
|
|
3
|
Data source: Dealogic for the period
covering 1 January to 31 December 2020.
|
|
Head Office
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
(393)
|
(422)
|
7
|
|
Net fee, commission and other income
|
(109)
|
26
|
|
|
Total income
|
(502)
|
(396)
|
(27)
|
|
Credit impairment charges
|
(91)
|
(27)
|
|
|
Net operating income
|
(593)
|
(423)
|
(40)
|
|
Operating costs
|
(399)
|
(200)
|
(100)
|
|
UK bank levy
|
(9)
|
(11)
|
18
|
|
Operating expenses
|
(408)
|
(211)
|
(93)
|
|
Litigation and conduct
|
(73)
|
(151)
|
52
|
|
Total operating expenses
|
(481)
|
(362)
|
(33)
|
|
Other net (expenses)/income
|
(23)
|
2
|
|
|
Loss before tax
|
(1,097)
|
(783)
|
(40)
|
|
Attributable loss
|
(1,019)
|
(636)
|
(60)
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Total assets
|
18.6
|
21.0
|
|
|
Risk weighted assets
|
10.2
|
11.0
|
|
|
Period end allocated tangible equity
|
6.8
|
5.6
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
Average allocated tangible equity (£bn)
|
6.7
|
5.1
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
|
|
Loss before tax
|
(1,024)
|
(632)
|
(62)
|
|
Attributable loss
|
(963)
|
(525)
|
(83)
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
2020 compared to 2019
Income statement
|
●
|
Loss
before tax, excluding litigation and conduct, was £1,024m
(2019: £632m)
|
|
●
|
Total income was an
expense of £502m (2019: £396m), which reflected treasury
items and hedge accounting, mark-to-market losses on legacy
investments and funding costs on legacy capital instruments,
including £85m from repurchases of some of the Barclays Bank
PLC 7.625% Contingent Capital Notes. This was partially offset by
the recognition of dividends on Barclays’ stake in Absa Group
Limited
|
|
●
|
Credit
impairment increased to £91m (2019: £27m) due to the
deterioration in economic outlook driven by the COVID-19 pandemic.
The current year charge is broadly driven by provision for future
expected customer stress in the Italian home loan
portfolio
|
|
●
|
Operating expenses
were £408m (2019: £211m), which included c.£150m of
cost actions, principally related to the discontinued use of
certain software assets and £95m of charitable donations from
Barclays’ COVID-19 Community Aid Package
|
|
●
|
Other
net expenses were £23m (2019: income of £2m), which
included a fair value loss on an investment in an
associate
|
Balance sheet
|
●
|
RWAs
decreased to £10.2bn (December 2019: £11.0bn) driven by
the reduction in value of Barclays’ stake in Absa Group
Limited
|
Quarterly Results Summary
|
Barclays Group
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
|
Net interest income
|
1,845
|
2,055
|
1,892
|
2,331
|
|
2,344
|
2,445
|
2,360
|
2,258
|
|
|
Net fee, commission and other income
|
3,096
|
3,149
|
3,446
|
3,952
|
|
2,957
|
3,096
|
3,178
|
2,994
|
|
|
Total income
|
4,941
|
5,204
|
5,338
|
6,283
|
|
5,301
|
5,541
|
5,538
|
5,252
|
|
|
Credit impairment charges
|
(492)
|
(608)
|
(1,623)
|
(2,115)
|
|
(523)
|
(461)
|
(480)
|
(448)
|
|
|
Net operating income
|
4,449
|
4,596
|
3,715
|
4,168
|
|
4,778
|
5,080
|
5,058
|
4,804
|
|
|
Operating costs
|
(3,480)
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,308)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
|
UK bank levy
|
(299)
|
-
|
-
|
-
|
|
(226)
|
-
|
-
|
-
|
|
|
Operating expenses
|
(3,779)
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
|
Litigation and conduct
|
(47)
|
(76)
|
(20)
|
(10)
|
|
(167)
|
(1,568)
|
(53)
|
(61)
|
|
|
Total operating expenses
|
(3,826)
|
(3,467)
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
|
Other net income/(expenses)
|
23
|
18
|
(26)
|
8
|
|
20
|
27
|
27
|
(3)
|
|
|
Profit before tax
|
646
|
1,147
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
|
Tax charge
|
(163)
|
(328)
|
(42)
|
(71)
|
|
(189)
|
(269)
|
(297)
|
(248)
|
|
|
Profit/(loss) after tax
|
483
|
819
|
317
|
842
|
|
908
|
(23)
|
1,234
|
1,235
|
|
|
Non-controlling interests
|
(37)
|
(4)
|
(21)
|
(16)
|
|
(42)
|
(4)
|
(17)
|
(17)
|
|
|
Other equity instrument holders
|
(226)
|
(204)
|
(206)
|
(221)
|
|
(185)
|
(265)
|
(183)
|
(180)
|
|
|
Attributable profit/(loss)
|
220
|
611
|
90
|
605
|
|
681
|
(292)
|
1,034
|
1,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
1.8%
|
5.1%
|
0.7%
|
5.1%
|
|
5.9%
|
(2.4%)
|
9.0%
|
9.2%
|
|
|
Average tangible shareholders' equity (£bn)
|
47.6
|
48.3
|
50.2
|
47.0
|
|
46.4
|
48.4
|
46.2
|
45.2
|
|
|
Cost: income ratio
|
77%
|
67%
|
62%
|
52%
|
|
70%
|
88%
|
64%
|
63%
|
|
|
Loan loss rate (bps)
|
56
|
69
|
179
|
223
|
|
60
|
52
|
56
|
54
|
|
|
Basic earnings/(loss) per share
|
1.3p
|
3.5p
|
0.5p
|
3.5p
|
|
3.9p
|
(1.7p)
|
6.0p
|
6.1p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
|
Profit before tax
|
693
|
1,223
|
379
|
923
|
|
1,264
|
1,814
|
1,584
|
1,544
|
|
|
Attributable profit
|
260
|
668
|
106
|
604
|
|
803
|
1,233
|
1,074
|
1,084
|
|
|
Return on average tangible shareholders' equity
|
2.2%
|
5.5%
|
0.8%
|
5.1%
|
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
|
Cost: income ratio
|
76%
|
65%
|
62%
|
52%
|
|
67%
|
59%
|
63%
|
62%
|
|
|
Basic earnings per share
|
1.5p
|
3.9p
|
0.6p
|
3.5p
|
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital
management2
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
Loans and advances at amortised cost
|
342.6
|
344.4
|
354.9
|
374.1
|
|
339.1
|
345.1
|
339.3
|
330.7
|
|
|
Total assets
|
1,349.5
|
1,421.7
|
1,385.1
|
1,444.3
|
|
1,140.2
|
1,290.4
|
1,232.8
|
1,193.5
|
|
|
Deposits at amortised cost
|
481.0
|
494.6
|
466.9
|
470.7
|
|
415.8
|
420.6
|
413.6
|
412.7
|
|
|
Tangible net asset value per share
|
269p
|
275p
|
284p
|
284p
|
|
262p
|
274p
|
275p
|
266p
|
|
|
Common equity tier 1 ratio
|
15.1%
|
14.6%
|
14.2%
|
13.1%
|
|
13.8%
|
13.4%
|
13.4%
|
13.0%
|
|
|
Common equity tier 1 capital
|
46.3
|
45.5
|
45.4
|
42.5
|
|
40.8
|
41.9
|
42.9
|
41.4
|
|
|
Risk weighted assets
|
306.2
|
310.7
|
319.0
|
325.6
|
|
295.1
|
313.3
|
319.1
|
319.7
|
|
|
Average UK leverage ratio
|
5.0%
|
5.1%
|
4.7%
|
4.5%
|
|
4.5%
|
4.6%
|
4.7%
|
4.6%
|
|
|
Average UK leverage exposure
|
1,146.9
|
1,111.1
|
1,148.7
|
1,176.2
|
|
1,142.8
|
1,171.2
|
1,134.6
|
1,105.5
|
|
|
UK leverage ratio
|
5.3%
|
5.2%
|
5.2%
|
4.5%
|
|
5.1%
|
4.8%
|
5.1%
|
4.9%
|
|
|
UK leverage exposure
|
1,090.9
|
1,095.1
|
1,071.1
|
1,178.7
|
|
1,007.7
|
1,099.8
|
1,079.4
|
1,065.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
266
|
327
|
298
|
237
|
|
211
|
226
|
238
|
232
|
|
|
Liquidity coverage ratio
|
162%
|
181%
|
186%
|
155%
|
|
160%
|
151%
|
156%
|
160%
|
|
|
Loan: deposit ratio
|
71%
|
70%
|
76%
|
79%
|
|
82%
|
82%
|
82%
|
80%
|
|
|
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
2
|
Refer to pages 45 to 51 for further
information on how capital, RWAs and leverage are
calculated.
|
Quarterly Results by Business
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
1,317
|
1,280
|
1,225
|
1,412
|
|
1,478
|
1,503
|
1,438
|
1,469
|
|
Net fee, commission and other income
|
309
|
270
|
242
|
292
|
|
481
|
343
|
333
|
308
|
|
Total income
|
1,626
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
Credit impairment charges
|
(170)
|
(233)
|
(583)
|
(481)
|
|
(190)
|
(101)
|
(230)
|
(191)
|
|
Net operating income
|
1,456
|
1,317
|
884
|
1,223
|
|
1,769
|
1,745
|
1,541
|
1,586
|
|
Operating costs
|
(1,134)
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,023)
|
(952)
|
(1,022)
|
(999)
|
|
UK bank levy
|
(50)
|
-
|
-
|
-
|
|
(41)
|
-
|
-
|
-
|
|
Operating expenses
|
(1,184)
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
Litigation and conduct
|
4
|
(25)
|
(6)
|
(5)
|
|
(58)
|
(1,480)
|
(41)
|
(3)
|
|
Total operating expenses
|
(1,180)
|
(1,120)
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
Other net income/(expenses)
|
6
|
(1)
|
13
|
-
|
|
-
|
-
|
(1)
|
1
|
|
Profit/(loss) before tax
|
282
|
196
|
(127)
|
195
|
|
647
|
(687)
|
477
|
585
|
|
Attributable profit/(loss)
|
160
|
113
|
(123)
|
175
|
|
438
|
(907)
|
328
|
422
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances to customers at amortised cost
|
205.4
|
203.9
|
202.0
|
195.7
|
|
193.7
|
193.2
|
189.1
|
187.5
|
|
Total assets
|
289.1
|
294.5
|
287.6
|
267.5
|
|
257.8
|
257.9
|
259.0
|
253.1
|
|
Customer deposits at amortised cost
|
240.5
|
232.0
|
225.7
|
207.5
|
|
205.5
|
203.3
|
200.9
|
197.3
|
|
Loan: deposit ratio
|
89%
|
91%
|
92%
|
96%
|
|
96%
|
97%
|
97%
|
96%
|
|
Risk weighted assets
|
73.7
|
76.2
|
77.9
|
77.7
|
|
74.9
|
76.8
|
76.2
|
76.6
|
|
Period end allocated tangible equity
|
9.7
|
10.0
|
10.3
|
10.3
|
|
10.3
|
10.4
|
10.3
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
6.5%
|
4.5%
|
(4.8%)
|
6.9%
|
|
17.0%
|
(34.9%)
|
12.7%
|
16.3%
|
|
Average allocated tangible equity (£bn)
|
9.8
|
10.1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
10.3
|
10.4
|
|
Cost: income ratio
|
73%
|
72%
|
70%
|
60%
|
|
57%
|
132%
|
60%
|
56%
|
|
Loan loss rate (bps)
|
31
|
43
|
111
|
96
|
|
38
|
20
|
47
|
40
|
|
Net interest margin
|
2.56%
|
2.51%
|
2.48%
|
2.91%
|
|
3.03%
|
3.10%
|
3.05%
|
3.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Profit/(loss) before tax
|
278
|
221
|
(121)
|
200
|
|
705
|
793
|
518
|
588
|
|
Attributable profit/(loss)
|
153
|
130
|
(118)
|
178
|
|
481
|
550
|
358
|
424
|
|
Return on average allocated tangible equity
|
6.2%
|
5.2%
|
(4.6%)
|
7.0%
|
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
Cost: income ratio
|
73%
|
71%
|
69%
|
60%
|
|
54%
|
52%
|
58%
|
56%
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
Analysis of Barclays UK
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Personal Banking
|
895
|
833
|
826
|
968
|
|
1,064
|
1,035
|
946
|
964
|
|
Barclaycard Consumer UK
|
354
|
362
|
367
|
436
|
|
533
|
472
|
497
|
490
|
|
Business Banking
|
377
|
355
|
274
|
300
|
|
362
|
339
|
328
|
323
|
|
Total income
|
1,626
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(68)
|
(48)
|
(130)
|
(134)
|
|
(71)
|
(36)
|
(36)
|
(52)
|
|
Barclaycard Consumer UK
|
(78)
|
(106)
|
(396)
|
(301)
|
|
(108)
|
(49)
|
(175)
|
(140)
|
|
Business Banking
|
(24)
|
(79)
|
(57)
|
(46)
|
|
(11)
|
(16)
|
(19)
|
1
|
|
Total credit impairment charges
|
(170)
|
(233)
|
(583)
|
(481)
|
|
(190)
|
(101)
|
(230)
|
(191)
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Personal Banking
|
157.3
|
155.7
|
154.9
|
153.4
|
|
151.9
|
150.1
|
147.3
|
145.9
|
|
Barclaycard Consumer UK
|
9.9
|
10.7
|
11.5
|
13.6
|
|
14.7
|
14.9
|
15.1
|
15.0
|
|
Business Banking
|
38.2
|
37.5
|
35.6
|
28.7
|
|
27.1
|
28.2
|
26.7
|
26.6
|
|
Total loans and advances to customers at amortised
cost
|
205.4
|
203.9
|
202.0
|
195.7
|
|
193.7
|
193.2
|
189.1
|
187.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
179.7
|
173.2
|
169.6
|
161.4
|
|
159.2
|
157.9
|
156.3
|
154.1
|
|
Barclaycard Consumer UK
|
0.1
|
0.1
|
0.1
|
-
|
|
-
|
-
|
-
|
-
|
|
Business Banking
|
60.7
|
58.7
|
56.0
|
46.1
|
|
46.3
|
45.4
|
44.6
|
43.2
|
|
Total customer deposits at amortised cost
|
240.5
|
232.0
|
225.7
|
207.5
|
|
205.5
|
203.3
|
200.9
|
197.3
|
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
614
|
823
|
847
|
998
|
|
965
|
1,059
|
1,017
|
900
|
|
Net trading income
|
1,372
|
1,528
|
1,660
|
2,360
|
|
929
|
1,110
|
1,016
|
1,144
|
|
Net fee, commission and other income
|
1,500
|
1,430
|
1,503
|
1,286
|
|
1,558
|
1,581
|
1,870
|
1,526
|
|
Total income
|
3,486
|
3,781
|
4,010
|
4,644
|
|
3,452
|
3,750
|
3,903
|
3,570
|
|
Credit impairment charges
|
(291)
|
(370)
|
(1,010)
|
(1,609)
|
|
(329)
|
(352)
|
(247)
|
(245)
|
|
Net operating income
|
3,195
|
3,411
|
3,000
|
3,035
|
|
3,123
|
3,398
|
3,656
|
3,325
|
|
Operating costs
|
(2,133)
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,240)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
UK bank levy
|
(240)
|
-
|
-
|
-
|
|
(174)
|
-
|
-
|
-
|
|
Operating expenses
|
(2,373)
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
Litigation and conduct
|
(9)
|
(28)
|
(11)
|
-
|
|
(86)
|
-
|
(11)
|
(19)
|
|
Total operating expenses
|
(2,382)
|
(2,255)
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
Other net income
|
9
|
9
|
4
|
6
|
|
17
|
21
|
13
|
18
|
|
Profit before tax
|
822
|
1,165
|
807
|
822
|
|
640
|
1,137
|
1,223
|
1,118
|
|
Attributable profit
|
441
|
782
|
468
|
529
|
|
397
|
799
|
832
|
788
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
122.7
|
128.0
|
138.1
|
167.0
|
|
132.8
|
138.1
|
134.8
|
130.9
|
|
Trading portfolio assets
|
127.7
|
122.3
|
109.5
|
101.6
|
|
113.3
|
119.4
|
120.0
|
117.2
|
|
Derivative financial instrument assets
|
301.8
|
295.9
|
306.8
|
341.5
|
|
228.9
|
286.0
|
243.8
|
217.3
|
|
Financial assets at fair value through the income
statement
|
170.7
|
178.2
|
154.3
|
188.4
|
|
128.4
|
158.0
|
154.7
|
153.5
|
|
Cash collateral and settlement balances
|
97.5
|
121.8
|
130.8
|
153.2
|
|
79.4
|
112.5
|
101.3
|
97.8
|
|
Other assets
|
221.4
|
261.7
|
236.3
|
201.5
|
|
178.6
|
195.6
|
196.8
|
202.3
|
|
Total assets
|
1,041.8
|
1,107.9
|
1,075.8
|
1,153.2
|
|
861.4
|
1,009.6
|
951.4
|
919.0
|
|
Deposits at amortised cost
|
240.5
|
262.4
|
241.2
|
263.3
|
|
210.0
|
217.6
|
212.0
|
215.5
|
|
Derivative financial instrument liabilities
|
300.4
|
293.3
|
307.6
|
338.8
|
|
228.9
|
283.3
|
243.0
|
213.5
|
|
Loan: deposit ratio
|
51%
|
49%
|
57%
|
63%
|
|
63%
|
63%
|
64%
|
61%
|
|
Risk weighted assets
|
222.3
|
224.7
|
231.2
|
237.9
|
|
209.2
|
223.1
|
214.8
|
216.1
|
|
Period end allocated tangible equity
|
30.2
|
30.5
|
31.6
|
33.1
|
|
29.6
|
31.4
|
30.2
|
30.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
5.8%
|
10.2%
|
5.6%
|
6.8%
|
|
5.1%
|
9.9%
|
10.7%
|
10.4%
|
|
Average allocated tangible equity (£bn)
|
30.5
|
30.6
|
33.5
|
31.2
|
|
30.9
|
32.2
|
31.1
|
30.5
|
|
Cost: income ratio
|
68%
|
60%
|
55%
|
48%
|
|
72%
|
61%
|
63%
|
62%
|
|
Loan loss rate (bps)
|
90
|
112
|
284
|
377
|
|
96
|
99
|
72
|
73
|
|
Net interest margin
|
3.41%
|
3.79%
|
3.43%
|
3.93%
|
|
4.29%
|
4.10%
|
3.91%
|
3.99%
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Profit before tax
|
831
|
1,193
|
818
|
822
|
|
726
|
1,137
|
1,234
|
1,137
|
|
Attributable profit
|
450
|
803
|
476
|
529
|
|
461
|
801
|
840
|
804
|
|
Return on average allocated tangible equity
|
5.9%
|
10.5%
|
5.7%
|
6.8%
|
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
Cost: income ratio
|
68%
|
59%
|
55%
|
48%
|
|
70%
|
61%
|
62%
|
62%
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
FICC
|
812
|
1,000
|
1,468
|
1,858
|
|
726
|
816
|
920
|
902
|
|
Equities
|
542
|
691
|
674
|
564
|
|
409
|
494
|
517
|
467
|
|
Markets
|
1,354
|
1,691
|
2,142
|
2,422
|
|
1,135
|
1,310
|
1,437
|
1,369
|
|
Advisory
|
232
|
90
|
84
|
155
|
|
202
|
221
|
221
|
132
|
|
Equity capital markets
|
104
|
122
|
185
|
62
|
|
56
|
86
|
104
|
83
|
|
Debt capital markets
|
418
|
398
|
463
|
418
|
|
322
|
381
|
373
|
354
|
|
Banking fees
|
754
|
610
|
732
|
635
|
|
580
|
688
|
698
|
569
|
|
Corporate lending
|
186
|
232
|
61
|
111
|
|
202
|
195
|
216
|
152
|
|
Transaction banking
|
344
|
372
|
381
|
449
|
|
397
|
424
|
444
|
415
|
|
Corporate
|
530
|
604
|
442
|
560
|
|
599
|
619
|
660
|
567
|
|
Total income
|
2,638
|
2,905
|
3,316
|
3,617
|
|
2,314
|
2,617
|
2,795
|
2,505
|
|
Credit impairment charges
|
(52)
|
(187)
|
(596)
|
(724)
|
|
(30)
|
(31)
|
(44)
|
(52)
|
|
Net operating income
|
2,586
|
2,718
|
2,720
|
2,893
|
|
2,284
|
2,586
|
2,751
|
2,453
|
|
Operating costs
|
(1,603)
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,691)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
UK bank levy
|
(226)
|
-
|
-
|
-
|
|
(156)
|
-
|
-
|
-
|
|
Operating expenses
|
(1,829)
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
Litigation and conduct
|
2
|
(3)
|
(3)
|
-
|
|
(79)
|
(4)
|
(7)
|
(19)
|
|
Total operating expenses
|
(1,827)
|
(1,719)
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
Other net income
|
2
|
1
|
3
|
-
|
|
1
|
12
|
3
|
12
|
|
Profit before tax
|
761
|
1,000
|
1,040
|
1,203
|
|
359
|
882
|
887
|
827
|
|
Attributable profit
|
413
|
627
|
694
|
820
|
|
193
|
609
|
596
|
582
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
92.4
|
96.8
|
104.9
|
128.2
|
|
92.0
|
95.8
|
92.1
|
90.6
|
|
Trading portfolio assets
|
127.5
|
122.2
|
109.3
|
101.5
|
|
113.3
|
119.3
|
119.9
|
117.2
|
|
Derivative financial instruments assets
|
301.7
|
295.9
|
306.7
|
341.4
|
|
228.8
|
286.0
|
243.7
|
217.3
|
|
Financial assets at fair value through the income
statement
|
170.4
|
177.9
|
153.7
|
187.8
|
|
127.7
|
157.3
|
154.1
|
152.9
|
|
Cash collateral and settlement balances
|
96.7
|
121.0
|
129.7
|
152.2
|
|
78.5
|
111.6
|
100.4
|
96.9
|
|
Other assets
|
194.9
|
228.9
|
205.5
|
171.4
|
|
155.3
|
171.5
|
168.1
|
163.2
|
|
Total assets
|
983.6
|
1,042.7
|
1,009.8
|
1,082.5
|
|
795.6
|
941.5
|
878.3
|
838.1
|
|
Deposits at amortised cost
|
175.2
|
195.6
|
173.9
|
198.4
|
|
146.2
|
152.1
|
145.4
|
151.4
|
|
Derivative financial instrument liabilities
|
300.3
|
293.2
|
307.6
|
338.7
|
|
228.9
|
283.2
|
242.9
|
213.5
|
|
Risk weighted assets
|
192.2
|
193.3
|
198.3
|
201.7
|
|
171.5
|
184.9
|
175.9
|
176.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
6.3%
|
9.5%
|
9.6%
|
12.5%
|
|
3.0%
|
9.1%
|
9.2%
|
9.3%
|
|
Average allocated tangible equity (£bn)
|
26.3
|
26.4
|
29.0
|
26.2
|
|
25.8
|
26.9
|
25.8
|
25.1
|
|
Cost: income ratio
|
69%
|
59%
|
51%
|
47%
|
|
83%
|
66%
|
67%
|
65%
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Profit before tax
|
759
|
1,003
|
1,043
|
1,203
|
|
438
|
886
|
894
|
846
|
|
Attributable profit
|
411
|
629
|
696
|
820
|
|
251
|
614
|
601
|
598
|
|
Return on average allocated tangible equity
|
6.2%
|
9.5%
|
9.6%
|
12.5%
|
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
Cost: income ratio
|
69%
|
59%
|
51%
|
47%
|
|
80%
|
65%
|
67%
|
65%
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
504
|
518
|
513
|
663
|
|
717
|
720
|
720
|
665
|
|
Net fee, commission, trading and other income
|
344
|
358
|
181
|
364
|
|
421
|
413
|
388
|
400
|
|
Total income
|
848
|
876
|
694
|
1,027
|
|
1,138
|
1,133
|
1,108
|
1,065
|
|
Credit impairment charges
|
(239)
|
(183)
|
(414)
|
(885)
|
|
(299)
|
(321)
|
(203)
|
(193)
|
|
Net operating income
|
609
|
693
|
280
|
142
|
|
839
|
812
|
905
|
872
|
|
Operating costs
|
(530)
|
(511)
|
(506)
|
(529)
|
|
(549)
|
(570)
|
(575)
|
(587)
|
|
UK bank levy
|
(14)
|
-
|
-
|
-
|
|
(18)
|
-
|
-
|
-
|
|
Operating expenses
|
(544)
|
(511)
|
(506)
|
(529)
|
|
(567)
|
(570)
|
(575)
|
(587)
|
|
Litigation and conduct
|
(11)
|
(25)
|
(8)
|
-
|
|
(7)
|
4
|
(4)
|
-
|
|
Total operating expenses
|
(555)
|
(536)
|
(514)
|
(529)
|
|
(574)
|
(566)
|
(579)
|
(587)
|
|
Other net income
|
7
|
8
|
1
|
6
|
|
16
|
9
|
10
|
6
|
|
Profit/(loss) before tax
|
61
|
165
|
(233)
|
(381)
|
|
281
|
255
|
336
|
291
|
|
Attributable profit/(loss)
|
28
|
155
|
(226)
|
(291)
|
|
204
|
190
|
236
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Loans and advances at amortised cost
|
30.3
|
31.2
|
33.2
|
38.8
|
|
40.8
|
42.3
|
42.7
|
40.3
|
|
Total assets
|
58.2
|
65.2
|
66.0
|
70.7
|
|
65.8
|
68.1
|
73.1
|
80.9
|
|
Deposits at amortised cost
|
65.3
|
66.8
|
67.3
|
64.9
|
|
63.8
|
65.5
|
66.6
|
64.1
|
|
Risk weighted assets
|
30.1
|
31.4
|
32.9
|
36.2
|
|
37.7
|
38.2
|
38.9
|
39.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
2.7%
|
14.7%
|
(20.2%)
|
(23.5%)
|
|
15.9%
|
14.2%
|
17.8%
|
15.4%
|
|
Average allocated tangible equity (£bn)
|
4.2
|
4.2
|
4.5
|
5.0
|
|
5.1
|
5.3
|
5.3
|
5.4
|
|
Cost: income ratio
|
65%
|
61%
|
74%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
Loan loss rate (bps)
|
286
|
211
|
455
|
846
|
|
273
|
283
|
180
|
182
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Profit/(loss) before tax
|
72
|
190
|
(225)
|
(381)
|
|
288
|
251
|
340
|
291
|
|
Attributable profit/(loss)
|
39
|
174
|
(220)
|
(291)
|
|
210
|
187
|
239
|
206
|
|
Return on average allocated tangible equity
|
3.8%
|
16.5%
|
(19.6%)
|
(23.5%)
|
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
Cost: income ratio
|
64%
|
58%
|
73%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Net interest income
|
(86)
|
(48)
|
(180)
|
(79)
|
|
(99)
|
(117)
|
(95)
|
(111)
|
|
Net fee, commission and other income
|
(85)
|
(79)
|
41
|
14
|
|
(11)
|
62
|
(41)
|
16
|
|
Total income
|
(171)
|
(127)
|
(139)
|
(65)
|
|
(110)
|
(55)
|
(136)
|
(95)
|
|
Credit impairment charges
|
(31)
|
(5)
|
(30)
|
(25)
|
|
(4)
|
(8)
|
(3)
|
(12)
|
|
Net operating expenses
|
(202)
|
(132)
|
(169)
|
(90)
|
|
(114)
|
(63)
|
(139)
|
(107)
|
|
Operating costs
|
(213)
|
(69)
|
(106)
|
(11)
|
|
(45)
|
(59)
|
(44)
|
(52)
|
|
UK bank levy
|
(9)
|
-
|
-
|
-
|
|
(11)
|
-
|
-
|
-
|
|
Operating expenses
|
(222)
|
(69)
|
(106)
|
(11)
|
|
(56)
|
(59)
|
(44)
|
(52)
|
|
Litigation and conduct
|
(42)
|
(23)
|
(3)
|
(5)
|
|
(23)
|
(88)
|
(1)
|
(39)
|
|
Total operating expenses
|
(264)
|
(92)
|
(109)
|
(16)
|
|
(79)
|
(147)
|
(45)
|
(91)
|
|
Other net income/(expenses)
|
8
|
10
|
(43)
|
2
|
|
3
|
6
|
15
|
(22)
|
|
Loss before tax
|
(458)
|
(214)
|
(321)
|
(104)
|
|
(190)
|
(204)
|
(169)
|
(220)
|
|
Attributable loss
|
(381)
|
(284)
|
(255)
|
(99)
|
|
(154)
|
(184)
|
(126)
|
(172)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Total assets
|
18.6
|
19.3
|
21.7
|
23.6
|
|
21.0
|
22.9
|
22.4
|
21.4
|
|
Risk weighted assets
|
10.2
|
9.8
|
9.9
|
10.0
|
|
11.0
|
13.4
|
28.1
|
27.0
|
|
Period end allocated tangible equity
|
6.8
|
7.1
|
7.4
|
6.0
|
|
5.6
|
5.5
|
7.0
|
4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
7.3
|
7.6
|
6.4
|
5.6
|
|
5.2
|
5.8
|
4.8
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance measures excluding
litigation and conduct1
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Loss before tax
|
(416)
|
(191)
|
(318)
|
(99)
|
|
(167)
|
(116)
|
(168)
|
(181)
|
|
Attributable loss
|
(343)
|
(265)
|
(252)
|
(103)
|
|
(139)
|
(118)
|
(124)
|
(144)
|
|
1
|
Refer to pages 65 to 74 for further
information and calculations of performance measures excluding
litigation and conduct.
|
Performance Management
|
Margins and balances
|
|
|
|
|
|
|
|
|
Year ended 31.12.20
|
Year ended 31.12.19
|
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
|
Barclays UK
|
5,234
|
200,317
|
2.61
|
5,888
|
190,849
|
3.09
|
|
Barclays International1,2
|
3,382
|
92,909
|
3.64
|
4,021
|
98,824
|
4.07
|
|
Total Barclays UK and Barclays International
|
8,616
|
293,226
|
2.94
|
9,909
|
289,673
|
3.42
|
|
Other3
|
(494)
|
|
|
(502)
|
|
|
|
Total Barclays Group
|
8,122
|
|
|
9,407
|
|
|
|
1
|
Barclays International margins include
IEL balances within the investment banking
business.
|
|
2
|
Barclays has
amended the presentation of the premium paid for purchased
financial guarantees which are embedded in notes it issues directly
to the market. From Q420 onwards, the full note coupon is presented
as interest expense within net interest income. The financial
guarantee element of the coupon, for these notes, had previously
been
recognised in
net investment income. The reclassification of £99m in Q4
included £74m related to Q320 YTD. This has caused a reduction
in the 2020 Barclays International and Total Barclays UK and
Barclays International NIMs of 0.11% and 0.03% respectively. Had
the equivalent 2019 interest expense been recognised in net
interest income,
the Barclays
International and
Total Barclays UK and Barclays
International NIMs would have been 4.04% and 3.41%
respectively.
|
|
3
|
Other includes Head Office and
non-lending related investment banking businesses not included in
Barclays International margins.
|
The
Group NIM decreased 48bps to 2.94%. Barclays UK NIM decreased 48bps
to 2.61% reflecting the impact of lower UK interest rates, COVID-19
customer support actions, as well as the mix impact of strong
mortgage growth and lower unsecured lending balances. Barclays
International NIM decreased 43bps to 3.64% mainly reflecting lower
cards balances.
The
Group’s combined product and equity structural hedge notional
as at 31 December 2020 was £188bn, with an average duration of
2.5 to 3 years. Group net interest income includes gross structural
hedge contributions of £1.7bn (2019: £1.8bn) and net
structural hedge contributions of £1.2bn (2019: £0.5bn).
Gross structural hedge contributions represent the absolute level
of interest earned from the fixed receipts on the basket of swaps
in the structural hedge, while the net structural hedge
contributions represent the net interest earned on the difference
between the structural hedge rate and prevailing floating
rates.
|
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
Three months ended 31.12.20
|
£m
|
£m
|
%
|
|
Barclays UK
|
1,317
|
204,315
|
2.56
|
|
Barclays International1,2
|
696
|
81,312
|
3.41
|
|
Total Barclays UK and Barclays International
|
2,013
|
285,627
|
2.80
|
|
|
|
|
|
|
Three months ended 30.09.20
|
|
|
|
|
Barclays UK
|
1,280
|
203,089
|
2.51
|
|
Barclays International1
|
838
|
88,032
|
3.79
|
|
Total Barclays UK and Barclays International
|
2,118
|
291,121
|
2.89
|
|
|
|
|
|
|
Three months ended 30.06.20
|
|
|
|
|
Barclays UK
|
1,225
|
199,039
|
2.48
|
|
Barclays International1
|
868
|
101,706
|
3.43
|
|
Total Barclays UK and Barclays International
|
2,093
|
300,745
|
2.80
|
|
|
|
|
|
|
Three months ended 31.03.20
|
|
|
|
|
Barclays UK
|
1,412
|
195,204
|
2.91
|
|
Barclays International1
|
980
|
100,171
|
3.93
|
|
Total Barclays UK and Barclays International
|
2,392
|
295,375
|
3.26
|
|
|
|
|
|
|
Three months ended 31.12.19
|
|
|
|
|
Barclays UK
|
1,478
|
193,610
|
3.03
|
|
Barclays International1
|
1,036
|
95,819
|
4.29
|
|
Total Barclays UK and Barclays International
|
2,514
|
289,429
|
3.45
|
|
1
|
Barclays International margins include
interest earning lending balances within the investment banking
business.
|
|
2
|
The
aforementioned reclassification of expense from net investment
income to net interest income has resulted in 0.48% reduction on
the Q420 Barclays International NIM and 0.14% reduction on the Q420
Total Barclays UK and Barclays
International
NIM.
|
Remuneration
Deferred
bonuses are payable only once an employee meets certain conditions,
including a specified period of 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 108-142 of the
Barclays PLC Annual Report 2020 for further detail on remuneration.
The table below includes the other elements of compensation and
staff costs.
|
|
Year ended
|
Year ended
|
|
|
|
31.12.20
|
31.12.19
|
|
|
|
£m
|
£m
|
% Change
|
|
Incentive awards granted:
|
|
|
|
|
Current year bonus
|
1,090
|
1,058
|
(3)
|
|
Deferred bonus
|
490
|
432
|
(13)
|
|
Total incentive awards granted
|
1,580
|
1,490
|
(6)
|
|
|
|
|
|
|
Reconciliation of incentive awards granted to income statement
charge:
|
|
|
|
|
Less: deferred bonuses granted but not charged in current
year
|
(335)
|
(293)
|
(14)
|
|
Add: current year charges for deferred bonuses from previous
years
|
293
|
308
|
5
|
|
Other differences between incentive awards granted and income
statement charge
|
(34)
|
(48)
|
29
|
|
Income statement charge for performance costs
|
1,504
|
1,457
|
(3)
|
|
|
|
|
|
|
Other income statement charges:
|
|
|
|
|
Salaries
|
4,322
|
4,332
|
-
|
|
Social security costs
|
613
|
573
|
(7)
|
|
Post-retirement benefits1
|
519
|
501
|
(4)
|
|
Other compensation costs
|
479
|
480
|
-
|
|
Total compensation
costs2
|
7,437
|
7,343
|
(1)
|
|
|
|
|
|
|
Other resourcing costs:
|
|
|
|
|
Outsourcing
|
342
|
433
|
21
|
|
Redundancy and restructuring
|
102
|
132
|
23
|
|
Temporary staff costs
|
102
|
256
|
60
|
|
Other
|
114
|
151
|
25
|
|
Total other resourcing costs
|
660
|
972
|
32
|
|
|
|
|
|
|
Total staff costs
|
8,097
|
8,315
|
3
|
|
|
|
|
|
|
Group compensation costs as a % of total income
|
34.2
|
33.9
|
|
|
Group staff costs as a % of total income
|
37.2
|
38.4
|
|
|
1
|
Post-retirement benefits charge
includes £279m (2019: £270m) in respect of defined
contribution schemes and £240m (2019: £231m) in respect
of defined benefit schemes.
|
|
2
|
£451m (2019: £439m) of Group
compensation was
capitalised as internally generated
software.
|
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
|
2022 and
|
|
|
31.12.19
|
31.12.20
|
|
31.12.21
|
beyond
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Deferred bonuses from 2017 and earlier bonus pools
|
141
|
49
|
|
6
|
1
|
|
Deferred bonuses from 2018 bonus pool
|
169
|
109
|
|
48
|
9
|
|
Deferred bonuses from 2019 bonus pool
|
137
|
135
|
|
82
|
51
|
|
Deferred bonuses from 2020 bonus pool
|
-
|
155
|
|
148
|
136
|
|
Income statement charge for deferred bonuses
|
447
|
448
|
|
284
|
197
|
|
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 2021 and
beyond.
|
|
Charging of deferred bonus
profile1
|
|
Grant date
|
Expected payment
date(s)2
|
Year
|
Income statement charge profile of
2020 awards3,4
|
|
March 2021
|
|
2020
|
35%
|
|
|
|
2021
|
34%
|
|
|
March 2022 (33.3%)
|
2022
|
21%
|
|
|
March 2023 (33.3%)
|
2023
|
9%
|
|
|
March 2024 (33.3%)
|
2024
|
1%
|
|
1
|
Represents a typical vesting schedule
for deferred awards. Certain awards may be subject to 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 identified
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 eight principal
risks: credit risk; market risk; treasury and capital risk;
operational risk; conduct risk; reputation risk; model risk; and
legal risk. Further detail on these risks and how they are managed
is available in the Barclays PLC Annual Report 2020 or online 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 overview
The impact of the
COVID-19 pandemic has increased the level of judgement that
management has been required to exercise over the course of 2020.
Customer and client default rates have remained relatively stable
despite the impact of the pandemic and volatile macroeconomic
environment. In retail cards, credit profiles improved or were
stable versus pre-pandemic levels as a result of government support
measures and customer deleveraging. In wholesale, furlough and
liquidity funding schemes are supporting businesses through the
pandemic, with limited credit deterioration. This lack of
deterioration, combined in some cases with improving economics, is
leading to large scale credit loss stock releases on a modelled
basis in pockets of the portfolio. Given this backdrop,
management has applied COVID-19 specific adjustments to modelled
outputs to ensure the full potential impacts of stress are provided
for. These adjustments address the temporary nature of ongoing
government support, the uncertainty in relation to the timing of
stress and the degree to which economic consensus has yet captured
the range of economic uncertainty, particularly in the
UK.
Credit Risk
Loans and advances at amortised cost by stage
The
table below presents an analysis of loans and advances at amortised
cost by gross exposure, impairment allowance, impairment charge and
coverage ratio by stage allocation and business segment as at 31
December 2020. Also included are off-balance sheet loan commitments
and financial guarantee contracts by gross exposure, impairment
allowance and coverage ratio by stage allocation as at 31 December
2020.
Impairment
allowance under IFRS 9 considers both the drawn and the undrawn
counterparty exposure. For retail portfolios, the total impairment
allowance is allocated to the drawn exposure to the extent that the
allowance does not exceed the exposure, as ECL is not reported
separately. Any excess is reported on the liability side of the
balance sheet as a provision. For wholesale portfolios, the
impairment allowance on the undrawn exposure is reported on the
liability side of the balance sheet as a provision.
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
153,250
|
23,896
|
2,732
|
179,878
|
|
332
|
1,509
|
1,147
|
2,988
|
176,890
|
|
Barclays International1
|
21,048
|
5,500
|
1,992
|
28,540
|
|
396
|
1,329
|
1,205
|
2,930
|
25,610
|
|
Head Office
|
4,267
|
720
|
844
|
5,831
|
|
4
|
51
|
380
|
435
|
5,396
|
|
Total Barclays Group retail
|
178,565
|
30,116
|
5,568
|
214,249
|
|
732
|
2,889
|
2,732
|
6,353
|
207,896
|
|
Barclays UK
|
31,918
|
4,325
|
1,126
|
37,369
|
|
13
|
129
|
116
|
258
|
37,111
|
|
Barclays International1
|
79,911
|
16,565
|
2,270
|
98,746
|
|
288
|
546
|
859
|
1,693
|
97,053
|
|
Head Office
|
570
|
-
|
33
|
603
|
|
-
|
-
|
31
|
31
|
572
|
|
Total Barclays Group
wholesale2
|
112,399
|
20,890
|
3,429
|
136,718
|
|
301
|
675
|
1,006
|
1,982
|
134,736
|
|
Total loans and advances at amortised cost
|
290,964
|
51,006
|
8,997
|
350,967
|
|
1,033
|
3,564
|
3,738
|
8,335
|
342,632
|
|
Off-balance sheet loan commitments and financial guarantee
contracts3
|
289,939
|
52,891
|
2,330
|
345,160
|
|
256
|
758
|
50
|
1,064
|
344,096
|
|
Total4
|
580,903
|
103,897
|
11,327
|
696,127
|
|
1,289
|
4,322
|
3,788
|
9,399
|
686,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.20
|
|
Year ended 31.12.20
|
|
|
|
Coverage ratio
|
|
Loan impairment charge and loan loss
rate4
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
|
Barclays UK
|
0.2
|
6.3
|
42.0
|
1.7
|
|
|
1,070
|
|
59
|
|
|
Barclays International1
|
1.9
|
24.2
|
60.5
|
10.3
|
|
|
1,680
|
|
589
|
|
|
Head Office
|
0.1
|
7.1
|
45.0
|
7.5
|
|
|
91
|
|
156
|
|
|
Total Barclays Group retail
|
0.4
|
9.6
|
49.1
|
3.0
|
|
|
2,841
|
|
133
|
|
|
Barclays UK
|
-
|
3.0
|
10.3
|
0.7
|
|
|
154
|
|
41
|
|
|
Barclays International1
|
0.4
|
3.3
|
37.8
|
1.7
|
|
|
914
|
|
93
|
|
|
Head Office
|
-
|
-
|
93.9
|
5.1
|
|
|
-
|
|
-
|
|
|
Total Barclays Group
wholesale2
|
0.3
|
3.2
|
29.3
|
1.4
|
|
|
1,068
|
|
78
|
|
|
Total loans and advances at amortised cost
|
0.4
|
7.0
|
41.5
|
2.4
|
|
|
3,909
|
|
111
|
|
|
Off-balance sheet loan commitments and financial guarantee
contracts3
|
0.1
|
1.4
|
2.1
|
0.3
|
|
|
776
|
|
|
|
|
Other financial assets subject to impairment4
|
|
|
|
|
|
|
153
|
|
|
|
|
Total5
|
0.2
|
4.2
|
33.4
|
1.4
|
|
|
4,838
|
|
|
|
|
1
|
Private Banking have refined the methodology
to classify £5bn of their exposure between Wholesale and Retail
during the year.
|
|
2
|
Includes Wealth and Private Banking
exposures measured on an individual customer exposure basis, and
excludes Business Banking exposures that are managed on a
collective basis. The net impact is a difference in total exposure
of £7,551m of balances reported as wholesale loans on page 29
in the Loans and advances at amortised cost by product
disclosure.
|
|
3
|
Excludes loan commitments and
financial guarantees of £9.5bn carried at fair
value.
|
|
4
|
Other financial assets subject to
impairment not included in the table above include cash collateral
and settlement balances, financial assets at fair value through
other comprehensive income and other assets. These have a total
gross exposure of £180.3bn and impairment allowance of
£165m. This comprises £11m ECL on £175.7bn stage 1
assets, £9m on £4.4bn stage 2 fair value through other
comprehensive income assets, other assets, cash collateral and
settlement balances and £145m on £154m stage 3 other
assets.
|
|
5
|
The loan loss rate is 138bps after
applying the total impairment charge of
£4,838m.
|
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.19
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Barclays UK
|
143,097
|
23,198
|
2,446
|
168,741
|
|
198
|
1,277
|
974
|
2,449
|
166,292
|
|
Barclays International
|
27,886
|
4,026
|
1,875
|
33,787
|
|
352
|
774
|
1,359
|
2,485
|
31,302
|
|
Head Office
|
4,803
|
500
|
826
|
6,129
|
|
5
|
36
|
305
|
346
|
5,783
|
|
Total Barclays Group retail
|
175,786
|
27,724
|
5,147
|
208,657
|
|
555
|
2,087
|
2,638
|
5,280
|
203,377
|
|
Barclays UK
|
27,891
|
2,397
|
1,124
|
31,412
|
|
16
|
38
|
108
|
162
|
31,250
|
|
Barclays International
|
92,615
|
8,113
|
1,615
|
102,343
|
|
136
|
248
|
447
|
831
|
101,512
|
|
Head Office
|
2,974
|
-
|
37
|
3,011
|
|
-
|
-
|
35
|
35
|
2,976
|
|
Total Barclays Group
wholesale1
|
123,480
|
10,510
|
2,776
|
136,766
|
|
152
|
286
|
590
|
1,028
|
135,738
|
|
Total loans and advances at amortised cost
|
299,266
|
38,234
|
7,923
|
345,423
|
|
707
|
2,373
|
3,228
|
6,308
|
339,115
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
321,140
|
19,185
|
935
|
341,260
|
|
97
|
170
|
55
|
322
|
340,938
|
|
Total3
|
620,406
|
57,419
|
8,858
|
686,683
|
|
804
|
2,543
|
3,283
|
6,630
|
680,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
Year ended 31.12.19
|
|
|
|
Coverage ratio
|
|
Loan impairment charge and loan loss
rate4
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge
|
Loan loss rate
|
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
|
bps
|
|
|
Barclays UK
|
0.1
|
5.5
|
39.8
|
1.5
|
|
|
661
|
|
39
|
|
|
Barclays International
|
1.3
|
19.2
|
72.5
|
7.4
|
|
|
999
|
|
296
|
|
|
Head Office
|
0.1
|
7.2
|
36.9
|
5.6
|
|
|
27
|
|
44
|
|
|
Total Barclays Group retail
|
0.3
|
7.5
|
51.3
|
2.5
|
|
|
1,687
|
|
81
|
|
|
Barclays UK
|
0.1
|
1.6
|
9.6
|
0.5
|
|
|
33
|
|
11
|
|
|
Barclays International
|
0.1
|
3.1
|
27.7
|
0.8
|
|
|
113
|
|
11
|
|
|
Head Office
|
-
|
-
|
94.6
|
1.2
|
|
|
-
|
|
-
|
|
|
Total Barclays Group
wholesale1
|
0.1
|
2.7
|
21.3
|
0.8
|
|
|
146
|
|
11
|
|
|
Total loans and advances at amortised cost
|
0.2
|
6.2
|
40.7
|
1.8
|
|
|
1,833
|
|
53
|
|
|
Off-balance sheet loan commitments and financial guarantee
contracts2
|
-
|
0.9
|
5.9
|
0.1
|
|
|
71
|
|
|
|
|
Other financial assets subject to impairment3
|
|
|
|
|
|
|
8
|
|
|
|
|
Total4
|
0.1
|
4.4
|
37.1
|
1.0
|
|
|
1,912
|
|
|
|
|
1
|
Includes Wealth
and Private Banking exposures measured on an individual customer
exposure basis, and excludes Business Banking exposures that are
managed on a collective basis. The net impact is a difference in
total exposure of £6,434m of balances reported as wholesale
loans on page 29 in the Loans and advances at amortised cost by
product disclosure.
|
|
2
|
Excludes loan
commitments and financial guarantees of £17.7bn 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 £149.3bn and impairment
allowance of £24m. This comprises £12m ECL on
£148.5bn stage 1 assets, £2m on £0.8bn stage 2 fair
value through other comprehensive income assets, cash collateral
and settlement balances and £10m on £10m stage 3 other
assets.
|
|
4
|
The loan loss
rate is 55bps after applying the total impairment charge of
£1,912m.
|
Loans and advances at amortised cost by product
The
table below presents a breakdown of loans and advances at amortised
cost and the impairment allowance with stage allocation by asset
classification.
|
|
|
Stage 2
|
|
|
|
As at 31.12.20
|
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
|
|
Home loans
|
138,639
|
16,651
|
1,785
|
876
|
19,312
|
2,234
|
160,185
|
|
Credit cards, unsecured loans and other retail lending
|
33,021
|
9,470
|
544
|
306
|
10,320
|
3,172
|
46,513
|
|
Wholesale loans
|
119,304
|
19,501
|
1,097
|
776
|
21,374
|
3,591
|
144,269
|
|
Total
|
290,964
|
45,622
|
3,426
|
1,958
|
51,006
|
8,997
|
350,967
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home loans
|
33
|
57
|
13
|
14
|
84
|
421
|
538
|
|
Credit cards, unsecured loans and other retail lending
|
680
|
2,382
|
180
|
207
|
2,769
|
2,251
|
5,700
|
|
Wholesale loans
|
320
|
650
|
50
|
11
|
711
|
1,066
|
2,097
|
|
Total
|
1,033
|
3,089
|
243
|
232
|
3,564
|
3,738
|
8,335
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
138,606
|
16,594
|
1,772
|
862
|
19,228
|
1,813
|
159,647
|
|
Credit cards, unsecured loans and other retail lending
|
32,341
|
7,088
|
364
|
99
|
7,551
|
921
|
40,813
|
|
Wholesale loans
|
118,984
|
18,851
|
1,047
|
765
|
20,663
|
2,525
|
142,172
|
|
Total
|
289,931
|
42,533
|
3,183
|
1,726
|
47,442
|
5,259
|
342,632
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
-
|
0.3
|
0.7
|
1.6
|
0.4
|
18.8
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
2.1
|
25.2
|
33.1
|
67.6
|
26.8
|
71.0
|
12.3
|
|
Wholesale loans
|
0.3
|
3.3
|
4.6
|
1.4
|
3.3
|
29.7
|
1.5
|
|
Total
|
0.4
|
6.8
|
7.1
|
11.8
|
7.0
|
41.5
|
2.4
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
135,713
|
14,733
|
1,585
|
725
|
17,043
|
2,155
|
154,911
|
|
Credit cards, unsecured loans and other retail lending
|
46,012
|
9,759
|
496
|
504
|
10,759
|
3,409
|
60,180
|
|
Wholesale loans
|
117,541
|
9,374
|
374
|
684
|
10,432
|
2,359
|
130,332
|
|
Total
|
299,266
|
33,866
|
2,455
|
1,913
|
38,234
|
7,923
|
345,423
|
|
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
|
Home loans
|
22
|
37
|
14
|
13
|
64
|
346
|
432
|
|
Credit cards, unsecured loans and other retail lending
|
542
|
1,597
|
159
|
251
|
2,007
|
2,335
|
4,884
|
|
Wholesale loans
|
143
|
284
|
9
|
9
|
302
|
547
|
992
|
|
Total
|
707
|
1,918
|
182
|
273
|
2,373
|
3,228
|
6,308
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
|
Home loans
|
135,691
|
14,696
|
1,571
|
712
|
16,979
|
1,809
|
154,479
|
|
Credit cards, unsecured loans and other retail lending
|
45,470
|
8,162
|
337
|
253
|
8,752
|
1,074
|
55,296
|
|
Wholesale loans
|
117,398
|
9,090
|
365
|
675
|
10,130
|
1,812
|
129,340
|
|
Total
|
298,559
|
31,948
|
2,273
|
1,640
|
35,861
|
4,695
|
339,115
|
|
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Home loans
|
-
|
0.3
|
0.9
|
1.8
|
0.4
|
16.1
|
0.3
|
|
Credit cards, unsecured loans and other retail lending
|
1.2
|
16.4
|
32.1
|
49.8
|
18.7
|
68.5
|
8.1
|
|
Wholesale loans
|
0.1
|
3.0
|
2.4
|
1.3
|
2.9
|
23.2
|
0.8
|
|
Total
|
0.2
|
5.7
|
7.4
|
14.3
|
6.2
|
40.7
|
1.8
|
Loans and advances at amortised cost by selected
sectors
The
table below presents a breakdown of loans and advances at amortised
cost and the impairment allowance, with gross exposure and stage
allocation for selected industry sectors within the wholesale loans
portfolio. The industry sectors have been selected based upon the
level of management focus they have received following the onset of
the COVID-19 pandemic.
The
gross loans and advances to these sectors have increased over the
year as a result of additional drawdowns on committed credit lines
provided by the bank. Overall limits and exposures have remained
broadly stable over the year whilst provisions have increased in
light of the heightened stress. The wholesale portfolio also
benefits from a hedge protection programme that enables effective
risk management against systemic losses.
|
|
Gross exposure
|
|
Impairment allowance
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.20
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Air travel
|
367
|
525
|
56
|
948
|
|
9
|
27
|
23
|
59
|
|
Hospitality and leisure
|
4,440
|
2,387
|
313
|
7,140
|
|
53
|
115
|
61
|
229
|
|
Oil and gas
|
1,754
|
854
|
465
|
3,073
|
|
31
|
27
|
140
|
198
|
|
Retail
|
3,907
|
1,153
|
283
|
5,343
|
|
78
|
51
|
108
|
237
|
|
Shipping
|
308
|
389
|
12
|
709
|
|
2
|
30
|
1
|
33
|
|
Transportation
|
1,148
|
253
|
125
|
1,526
|
|
19
|
10
|
57
|
86
|
|
Total
|
11,924
|
5,561
|
1,254
|
18,739
|
|
192
|
260
|
390
|
842
|
|
Total of Wholesale exposures
|
10%
|
26%
|
35%
|
13%
|
|
60%
|
37%
|
37%
|
40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross exposure
|
|
Impairment allowance
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
As at 31.12.19
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Air travel
|
194
|
31
|
26
|
251
|
|
-
|
-
|
24
|
24
|
|
Hospitality and leisure
|
4,321
|
851
|
199
|
5,371
|
|
8
|
18
|
29
|
55
|
|
Oil and gas
|
2,539
|
612
|
136
|
3,287
|
|
8
|
24
|
47
|
79
|
|
Retail
|
3,395
|
777
|
207
|
4,379
|
|
11
|
24
|
85
|
120
|
|
Shipping
|
357
|
52
|
7
|
416
|
|
1
|
-
|
3
|
4
|
|
Transportation
|
873
|
82
|
89
|
1,044
|
|
5
|
5
|
54
|
64
|
|
Total
|
11,679
|
2,405
|
664
|
14,748
|
|
33
|
71
|
242
|
346
|
|
Total of Wholesale exposures
|
10%
|
23%
|
28%
|
11%
|
|
23%
|
24%
|
44%
|
35%
|
A
£0.2bn adjustment has been applied to selected sectors in
Stage 1 to increase the ECL coverage on these names in line with
the average Stage 2 coverage of the respective sector. This
adjustment is materially in response to the increased stress in
these sectors not captured through the ECL models. An additional
£0.1bn adjustment is held against undrawn exposure which does
not appear in the table.
The
coverage ratio for selected sectors has increased from 2.3% as at
31 December 2019 to 4.5% as at 31 December 2020.
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. An
explanation of the terms 12-month ECL, lifetime ECL and
credit-impaired is included in the Barclays PLC Annual Report 2020
on page 296. Transfers between stages in the table have been
reflected as if they had taken place at the beginning of the year.
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
|
|
Home loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2020
|
135,713
|
22
|
17,043
|
64
|
2,155
|
346
|
154,911
|
432
|
|
Transfers from Stage 1 to Stage 2
|
(8,724)
|
(1)
|
8,724
|
1
|
-
|
-
|
-
|
-
|
|
Transfers from Stage 2 to Stage 1
|
4,618
|
14
|
(4,618)
|
(14)
|
-
|
-
|
-
|
-
|
|
Transfers to Stage 3
|
(308)
|
-
|
(420)
|
(10)
|
728
|
10
|
-
|
-
|
|
Transfers from Stage 3
|
47
|
1
|
219
|
2
|
(266)
|
(3)
|
-
|
-
|
|
Business activity in the year
|
22,548
|
7
|
714
|
2
|
4
|
-
|
23,266
|
9
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(6,195)
|
(9)
|
(841)
|
42
|
(57)
|
105
|
(7,093)
|
138
|
|
Final repayments
|
(9,060)
|
(1)
|
(1,509)
|
(3)
|
(308)
|
(15)
|
(10,877)
|
(19)
|
|
Disposals3
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Write-offs4
|
-
|
-
|
-
|
-
|
(22)
|
(22)
|
(22)
|
(22)
|
|
As at 31 December
20205
|
138,639
|
33
|
19,312
|
84
|
2,234
|
421
|
160,185
|
538
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
As at 1 January 2020
|
46,012
|
542
|
10,759
|
2,007
|
3,409
|
2,335
|
60,180
|
4,884
|
|
Transfers from Stage 1 to Stage 2
|
(6,571)
|
(134)
|
6,571
|
134
|
-
|
-
|
-
|
-
|
|
Transfers from Stage 2 to Stage 1
|
3,080
|
482
|
(3,080)
|
(482)
|
-
|
-
|
-
|
-
|
|
Transfers to Stage 3
|
(712)
|
(25)
|
(1,162)
|
(398)
|
1,874
|
423
|
-
|
-
|
|
Transfers from Stage 3
|
76
|
39
|
67
|
12
|
(143)
|
(51)
|
-
|
-
|
|
Business activity in the year
|
5,598
|
67
|
324
|
83
|
59
|
28
|
5,981
|
178
|
|
Changes to models used for calculation1
|
-
|
13
|
-
|
296
|
-
|
-
|
-
|
309
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes2
|
(9,678)
|
(229)
|
(2,706)
|
1,174
|
(10)
|
1,353
|
(12,394)
|
2,298
|
|
Final repayments
|
(3,291)
|
(67)
|
(270)
|
(37)
|
(204)
|
(84)
|
(3,765)
|
(188)
|
|
Disposals3
|
(1,493)
|
(8)
|
(183)
|
(20)
|
(204)
|
(144)
|
(1,880)
|
(172)
|
|
Write-offs4
|
-
|
-
|
-
|
-
|
(1,609)
|
(1,609)
|
(1,609)
|
(1,609)
|
|
As at 31 December
20205
|
33,021
|
680
|
10,320
|
2,769
|
3,172
|
2,251
|
46,513
|
5,700
|
|
1
|
Changes to models used for calculation include a £309m
adjustment which largely represents model remediation to correct
for over recovery of debt in UK unsecured lending. Barclays
continually review 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 ensures that the models used continue to
reflect the risks inherent across the
businesses.
|
|
2
|
Transfers and risk parameter changes has seen an ECL increase which
is materially driven by stage migration in response to the
macroeconomic scenario updates, partially offset by a net release
in ECL of £0.6bn due to a reclassification of £2bn gross
loans and advances from Stage 2 to Stage 1 in credit cards and
unsecured loans. The reclassification followed a review of
back-testing of results which indicated that origination
probability of default characteristics were unnecessarily moving
stage 1 accounts into stage 2.
|
|
3
|
The £1.9bn disposals reported within Credit cards, unsecured
loans and other retail lending portfolio include £1.7bn sale
of motor financing business within the Barclays Partner Finance
business and £0.2bn relate to debt sales undertaken during the
year. The £2.4bn disposal reported within Wholesale loans
include sale of debt securities as part of Group Treasury
Operations.
|
|
4
|
In 2020, gross write-offs amounted to £1,964m (2019:
£1,883m) and post write-off recoveries amounted to £35m
(2019: £124m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £1,929m (2019:
£1,759m).
|
|
5
|
Other financial assets subject to impairment excluded from the
tables above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.3bn (December 2019: £149.3bn) and impairment
allowance of £175.7m (December 2019: £24m). This
comprises £11m ECL (December 2019: £12m) on £175.7bn
Stage 1 assets (December 2019: £148.5m), £9m (December
2019: £2m) on £4.4bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2019: £0.8bn) and £145m (December 2019:
£10m) on £154m Stage 3 other assets (December 2019:
£10m).
|
|
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
|
|
Wholesale loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2020
|
117,541
|
143
|
10,432
|
302
|
2,359
|
547
|
130,332
|
992
|
|
Transfers from Stage 1 to Stage 2
|
(12,531)
|
(35)
|
12,531
|
35
|
-
|
-
|
-
|
-
|
|
Transfers from Stage 2 to Stage 1
|
4,121
|
40
|
(4,121)
|
(40)
|
-
|
-
|
-
|
-
|
|
Transfers to Stage 3
|
(1,137)
|
(4)
|
(875)
|
(58)
|
2,012
|
62
|
-
|
-
|
|
Transfers from Stage 3
|
471
|
22
|
247
|
13
|
(718)
|
(35)
|
-
|
-
|
|
Business activity in the year
|
27,863
|
46
|
2,336
|
149
|
634
|
85
|
30,833
|
280
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
13,828
|
130
|
3,811
|
339
|
(64)
|
799
|
17,575
|
1,268
|
|
Final repayments
|
(28,458)
|
(22)
|
(2,977)
|
(29)
|
(299)
|
(59)
|
(31,734)
|
(110)
|
|
Disposals1
|
(2,394)
|
-
|
(10)
|
-
|
-
|
-
|
(2,404)
|
-
|
|
Write-offs2
|
-
|
-
|
-
|
-
|
(333)
|
(333)
|
(333)
|
(333)
|
|
As at 31 December
20203
|
119,304
|
320
|
21,374
|
711
|
3,591
|
1,066
|
144,269
|
2,097
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of ECL movement to impairment charge/(release) for
the period
|
£m
|
|
Home loans
|
|
|
|
|
|
|
|
128
|
|
Credit cards, unsecured loans and other retail lending
|
|
2,597
|
|
Wholesale loans
|
|
1,438
|
|
ECL movement excluding assets derecognised due to disposals and
write-offs
|
|
4,163
|
|
Recoveries and reimbursements4
|
|
(399)
|
|
Exchange and other adjustments5
|
|
145
|
|
Impairment charge on loan commitments and other financial
guarantees
|
|
776
|
|
Impairment charge on other financial assets3
|
|
153
|
|
As at 31 December 2020
|
|
|
|
|
|
|
|
4,838
|
|
1
|
The £1.9bn disposals reported within Credit cards, unsecured
loans and other retail lending portfolio include £1.7bn sale
of motor financing business within the Barclays Partner Finance
business and £0.2bn relate to debt sales undertaken during the
year. The £2.4bn disposal reported within Wholesale loans
include sale of debt securities as part of Group Treasury
Operations.
|
|
2
|
In 2020, gross write-offs amounted to £1,964m (2019:
£1,883m) and post write-off recoveries amounted to £35m
(2019: £124m). Net write-offs represent gross write-offs less
post write-off recoveries and amounted to £1,929m (2019:
£1,759m).
|
|
3
|
Other financial assets subject to impairment excluded from the
tables above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.3bn (December 2019: £149.3bn) and impairment
allowance of £175.7m (December 2019: £24m). This
comprises £11m ECL (December 2019: £12m) on £175.7bn
Stage 1 assets (December 2019: £148.5m), £9m (December
2019: £2m) on £4.4bn Stage 2 fair value through other
comprehensive income assets, cash collateral and settlement assets
(December 2019: £0.8bn) and £145m (December 2019:
£10m) on £154m Stage 3 other assets (December 2019:
£10m).
|
|
4
|
Recoveries and reimbursements includes £364m for
reimbursements expected to be received under the arrangement where
Group has entered into financial guarantee contracts which provide
credit protection over certain loans assets with third parties.
Cash recoveries of previously written off amounts to
£35m.
|
|
5
|
Includes foreign exchange and interest and fees in
suspense.
|
|
Loan commitments and financial guarantees
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
Gross exposure
|
ECL
|
|
Home loans
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
As at 1 January 2020
|
9,542
|
-
|
500
|
-
|
4
|
-
|
10,046
|
-
|
|
Net transfers between stages
|
(82)
|
-
|
78
|
-
|
4
|
-
|
-
|
-
|
|
Business activity in the year
|
7,975
|
-
|
-
|
-
|
-
|
-
|
7,975
|
-
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(5,332)
|
-
|
(27)
|
-
|
(2)
|
-
|
(5,361)
|
-
|
|
Limit management and final repayments
|
(242)
|
-
|
(35)
|
-
|
(1)
|
-
|
(278)
|
-
|
|
As at 31 December 2020
|
11,861
|
-
|
516
|
-
|
5
|
-
|
12,382
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
|
As at 1 January 2020
|
125,759
|
35
|
6,238
|
71
|
250
|
14
|
132,247
|
120
|
|
Net transfers between stages
|
(5,477)
|
43
|
4,725
|
(40)
|
752
|
(3)
|
-
|
-
|
|
Business activity in the year
|
5,214
|
2
|
158
|
3
|
2
|
1
|
5,374
|
6
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
1,298
|
(22)
|
1,636
|
272
|
(671)
|
15
|
2,263
|
265
|
|
Limit management and final repayments
|
(12,423)
|
(3)
|
(640)
|
(1)
|
(104)
|
(4)
|
(13,167)
|
(8)
|
|
As at 31 December 2020
|
114,371
|
55
|
12,117
|
305
|
229
|
23
|
126,717
|
383
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale loans
|
|
|
|
|
|
|
|
|
|
As at 1 January 2020
|
185,839
|
62
|
12,447
|
99
|
681
|
41
|
198,967
|
202
|
|
Net transfers between stages
|
(28,325)
|
67
|
27,319
|
(72)
|
1,006
|
5
|
-
|
-
|
|
Business activity in the year
|
42,917
|
32
|
4,708
|
102
|
774
|
2
|
48,399
|
136
|
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
13,637
|
47
|
(44)
|
338
|
(69)
|
(20)
|
13,524
|
365
|
|
Limit management and final repayments
|
(50,361)
|
(7)
|
(4,172)
|
(14)
|
(296)
|
(1)
|
(54,829)
|
(22)
|
|
As at 31 December 2020
|
163,707
|
201
|
40,258
|
453
|
2,096
|
27
|
206,061
|
681
|
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.
Total
management adjustments to impairment allowance are presented by
product below.
|
Management adjustments to models for
impairment1
|
|
|
2020
|
2019
|
|
|
Management adjustments to impairment allowances
|
Proportion of total impairment allowances
|
Management adjustments to impairment allowances
|
Proportion of total impairment
allowances2
|
|
As at 31 December
|
£m
|
%
|
£m
|
%
|
|
Home loans
|
131
|
24.3
|
57
|
13.2
|
|
Credit cards, unsecured loans and other retail lending
|
1,234
|
20.3
|
308
|
6.2
|
|
Wholesale loans
|
23
|
0.8
|
(25)
|
(2.1)
|
|
Total
|
1,388
|
14.8
|
340
|
5.1
|
|
Management adjustments to models for
impairment charges1
|
|
|
Impairment allowance pre management
adjustments3
|
Economic uncertainty adjustments
|
Other
adjustments
|
Total impairment allowance
|
|
As at 31 December 2020
|
£m
|
£m
|
£m
|
£m
|
|
Home loans
|
407
|
21
|
110
|
538
|
|
Credit cards, unsecured loans and other retail lending
|
4,849
|
1,625
|
(391)
|
6,083
|
|
Wholesale loans
|
2,755
|
421
|
(398)
|
2,778
|
|
Total
|
8,011
|
2,067
|
(679)
|
9,399
|
|
1
|
Positive values
relate to an increase in impairment allowance.
|
|
2
|
The 2019
comparative figures have been restated to include impairment
allowances on both drawn and undrawn exposures.
|
|
3
|
Includes
£6.8bn of modelled ECL, £0.9bn of individually assessed
impairments and £0.3bn ECL from non-modelled
exposures.
|
Economic
uncertainty adjustments:
The pandemic
impacted the global economy throughout 2020 and macroeconomic
forecasts indicate longer-term impacts will result in higher
unemployment levels and customer and client stress. However, to
date, little real credit deterioration has occurred, largely as a
result of government and bank support. Observed 30-day arrears
rates in consumer loans in particular have remained stable in both
US cards (2020: 2.5%; 2019: 2.7%) and UK cards (2020: 1.7%; 2019:
1.7%). A similar phenomenon is observed in wholesale, where the
average risk profile of the portfolio has broadly remained stable
during the year and has not deteriorated in line with the
macroeconomic crisis.
Given this
backdrop, management has applied COVID-19 specific adjustments to
modelled outputs to ensure the full potential impacts of stress are
provided for. These adjustments address the temporary nature of
ongoing government support, the uncertainty in relation to the
timing of stress and the degree to which economic consensus has not
yet captured the range of economic uncertainty.
The
COVID-19 adjustments of £2.1bn broadly comprised the
following:
|
●
|
Use of
expert judgement to adjust the probability of default £0.7bn
to pre-COVID levels to reflect the impact of temporary support
measures on underlying customer behaviour, partially offset by
government guarantees £(0.1)bn which are materially against
BBLs;
|
|
●
|
Adjusting
macroeconomic variables deemed temporarily influenced by support
measures, enabling models to consume the expected stress
£1.2bn;
|
|
●
|
A
£0.3bn adjustment has been applied to selected sectors in
Stage 1 to increase the ECL coverage on these names in line with
the average Stage 2 coverage of the respective sector. This
adjustment is materially in response to the increased stress in
these sectors not captured through the ECL models.
|
Other
adjustments
Home loans: The low average LTV nature
of the UK Home Loans portfolio means that modelled ECL estimates
are low in all but the most severe economic scenarios. An
adjustment is held to maintain an appropriate level of ECL.
Credit cards, unsecured loans and other retail
lending: Transfers and risk parameters changes include a net
release in ECL of £0.6bn due to a reclassification of
£2bn gross loans and advances from Stage 2 to Stage 1 in
credit cards and unsecured loans. The reclassification followed a
review of back-testing of results which indicated that origination
probability of default characteristics were unnecessarily moving
Stage 1 accounts into Stage 2.
Wholesale loans: Adjustments include a
release in the Investment Bank to limit excessive ECL sensitivity
to the macroeconomic variable for Federal Tax Receipts and a
correction to Corporate and Investment Bank ECL to adjust for model
inaccuracies informed by back-testing.
Management
adjustments of £340m in 2019 largely comprises a £210m
PMA to compensate for over-recovery of debt in UK unsecured
lending, and subsequently fixed within the underlying model; and
£150m for UK economic uncertainty, now subsumed within
managements broader approach to economic uncertainty.
Measurement uncertainty
The measurement of
ECL involves complexity and judgement, including estimation of
probabilities of default (PD), loss given default (LGD), a range of
unbiased future economic scenarios, estimation of expected lives,
estimation of exposures at default (EAD) and assessing significant
increases in credit risk.
The Group uses a
five-scenario model to calculate ECL. An external consensus
forecast is assembled from key sources, including HM Treasury
(short and medium term forecasts), Bloomberg (based on median of
economic forecasts) and the Urban Land Institute (for US House
Prices), which forms the Baseline scenario. In addition, two
adverse scenarios (Downside 1 and Downside 2) and two favourable
scenarios (Upside 1 and Upside 2) are derived, with associated
probability weightings. The adverse scenarios are calibrated to a
broadly similar severity to Barclays’ internal stress tests
and stress scenarios provided by regulators whilst also considering
IFRS 9 specific sensitivities and non-linearity. Downside 2 is
benchmarked to the Bank of England’s stress scenarios and to
the most severe scenario from Moody’s inventory, but is not
designed to be the same. The favourable scenarios are calibrated to
reflect upside risks to the Baseline scenario to the extent that is
broadly consistent with recent favourable benchmark scenarios. All
scenarios are regenerated at a minimum semi-annually. The scenarios
include eight economic variables, (GDP, unemployment, House Price
Index (HPI) and base rates in both the UK and US markets), and
expanded variables using statistical models based on historical
correlations. The upside and downside shocks are designed to evolve
over a five-year stress horizon, with all five scenarios converging
to a steady state after approximately eight years.
Scenarios used to
calculate the Group’s ECL charge were reviewed and updated
regularly throughout 2020, following the outbreak of the COVID-19
pandemic in the first quarter. The current Baseline scenario
reflects the latest consensus economic forecasts with unemployment
continuing to decrease in the US and peaking at Q221 in the UK
followed by a steady decline. In the downside scenarios, an
economic downturn in early 2021 in the UK and the US begins to
recover later in the year, with unemployment increasing to the end
of 2021. In the upside scenarios, the strong rebound in UK and US
GDP continues into 2021, following the bounce-back in growth in
Q320 and, subsequently, the projections stay above the year on year
growth rates seen in the Baseline for a prolonged period of time
before finally reverting to the long term run rate. This reflects
the assumption of approved vaccines being successfully rolled out
throughout 2021 and pent up savings being deployed into a more
certain consumer environment to drive significant growth. Scenario
weights have been updated to reflect the latest economics.
As a
result of government and bank support measures, significant credit
deterioration has not yet occurred. This delay increases
uncertainty on the timing of the stress and the realisation of
defaults. Management has applied COVID-19 specific adjustments to
modelled outputs to reflect the temporary nature of ongoing
government support, the uncertainty in relation to the timing of
stress and the degree to which economic consensus has yet captured
the range of economic uncertainty, particularly in the UK. As a
result, ECL is higher than would be the case if it were based on
the forecast economic scenarios alone.
Scenario weights
The methodology for
estimating probability weights for each of the scenarios involves a
comparison of the distribution of key historical UK and US
macroeconomic variables against the forecast paths of the five
scenarios. The methodology works such that the Baseline (reflecting
current consensus outlook) has the highest weight and the weights
of adverse and favourable scenarios depend on the deviation from
the Baseline; the further from the Baseline, the smaller the
weight. This is reflected in the table below where the probability
weights of the scenarios are shown. A single set of five scenarios
is used across all portfolios and all five weights are normalised
to equate to 100%. The same scenarios and weights that are used in
the estimation of expected credit losses are also used for Barclays
internal planning purposes. The impacts across the portfolios are
different because of the sensitivities of each of the portfolios to
specific macroeconomic variables, for example, mortgages are highly
sensitive to house prices and base rates, credit cards and
unsecured consumer loans are highly sensitive to
unemployment.
The range of
forecast paths generated in the calculation of the weights at 31
December 2020 is much wider than in previous periods due to the
uncertainty caused by COVID-19, thus the Upside and Downside
scenarios are closer to the Baseline resulting in a more even
distribution of weights than at 31 December 2019.
The economic
environment remains uncertain and future impairment charges may be
subject to further volatility (including from changes to
macroeconomic variable forecasts) depending on the longevity of the
COVID-19 pandemic and related containment measures, as well as the
longer term effectiveness of central bank, government and other
support measures.
The tables below
show the key consensus macroeconomic variables used in the baseline
scenario (3 year annual paths), the probability weights applied to
each scenario and the macroeconomic variables by scenario using
‘specific bases’ i.e. the most extreme position of each
variable in the context of the scenario, for example, the highest
unemployment for downside scenarios and the lowest unemployment for
upside scenarios. 5-year average tables and movement over time
graphs provide additional transparency.
Annual
paths show quarterly averages for the year (unemployment and base
rate) or change in the year (GDP and HPI). Expected worst point is
the most negative quarter in the relevant 3 year period, which is
calculated relative to the start point for GDP and
HPI.
|
Baseline average macroeconomic variables used in the calculation of
ECL
|
|
|
2021
|
2022
|
2023
|
Expected Worst Point
|
|
As at 31.12.20
|
%
|
%
|
%
|
%
|
|
UK GDP1
|
6.3
|
3.3
|
2.6
|
1.2
|
|
UK unemployment2
|
6.7
|
6.4
|
5.8
|
7.4
|
|
UK HPI3
|
2.4
|
2.3
|
5.0
|
0.6
|
|
UK bank rate
|
-
|
(0.1)
|
-
|
(0.1)
|
|
US GDP1
|
3.9
|
3.1
|
2.9
|
1.0
|
|
US unemployment4
|
6.9
|
5.7
|
5.6
|
7.5
|
|
US HPI5
|
2.8
|
4.7
|
4.7
|
0.7
|
|
US federal funds rate
|
0.3
|
0.3
|
0.3
|
0.3
|
|
|
|
|
|
|
|
|
2020
|
2021
|
2022
|
Expected Worst Point
|
|
As at 31.12.19
|
%
|
%
|
%
|
%
|
|
UK GDP1
|
1.3
|
1.5
|
1.6
|
0.3
|
|
UK unemployment2
|
4.1
|
4.2
|
4.2
|
4.2
|
|
UK HPI3
|
1.9
|
3.1
|
3.6
|
0.3
|
|
UK bank rate
|
0.6
|
0.5
|
0.8
|
0.5
|
|
US GDP1
|
2.1
|
1.9
|
1.9
|
0.5
|
|
US unemployment4
|
3.6
|
3.9
|
4.0
|
4.0
|
|
US HPI5
|
3.4
|
2.9
|
2.8
|
1.0
|
|
US federal funds rate
|
1.7
|
1.5
|
1.7
|
1.5
|
|
1
|
Average Real
GDP seasonally adjusted change in year; expected worst point is the
minimum growth relative to Q420 (2019: Q419) based on a 12 quarter
period.
|
|
2
|
Average UK
unemployment rate 16-year+; expected worst point is the highest
rate in the 12 quarter period starting Q121 (2019:
Q120).
|
|
3
|
Change in year
end UK HPI = Halifax All Houses, All Buyers index, relative to
prior year end; worst point is based on minimum growth relative to
Q420 (2019: Q419) based on a 12 quarter period.
|
|
4
|
Average US
civilian unemployment rate 16-year+; expected worst point is the
highest rate in the 12 quarter period starting Q121 (2019:
Q120).
|
|
5
|
Change in year
end US HPI = FHFA house price index, relative to prior year end;
worst point is based on minimum growth relative to Q420 (2019:
Q419) based on a 12 quarter period.
|
|
Scenario probability weighting
|
|
|
|
|
|
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
|
%
|
%
|
%
|
%
|
%
|
|
As at 31.12.20
|
|
|
|
|
|
|
Scenario probability weighting
|
20.2
|
24.2
|
24.7
|
15.5
|
15.4
|
|
As at 31.12.19
|
|
|
|
|
|
|
Scenario probability weighting
|
10.1
|
23.1
|
40.8
|
22.7
|
3.3
|
Specific
bases shows the most extreme position of each variable in the
context of the scenario, 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 points
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 31.12.20
|
%
|
%
|
%
|
%
|
%
|
|
UK GDP2
|
14.2
|
8.8
|
0.7
|
(22.1)
|
(22.1)
|
|
UK unemployment3
|
4.0
|
4.0
|
5.7
|
8.4
|
10.1
|
|
UK HPI4
|
48.2
|
30.8
|
3.6
|
(4.5)
|
(18.3)
|
|
UK bank rate3
|
0.1
|
0.1
|
-
|
0.6
|
0.6
|
|
US GDP2
|
15.7
|
12.8
|
1.6
|
(10.6)
|
(10.6)
|
|
US unemployment3
|
3.8
|
3.8
|
6.4
|
13.0
|
13.7
|
|
US HPI4
|
42.2
|
30.9
|
3.8
|
(3.7)
|
(15.9)
|
|
US federal funds rate3
|
0.1
|
0.1
|
0.3
|
1.3
|
1.3
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
UK GDP2
|
15.4
|
11.7
|
1.5
|
0.2
|
(4.6)
|
|
UK unemployment3
|
3.4
|
3.8
|
4.1
|
5.8
|
8.8
|
|
UK HPI4
|
41.1
|
28.8
|
2.8
|
(6.3)
|
(31.1)
|
|
UK bank rate3
|
0.5
|
0.5
|
0.7
|
2.8
|
4.0
|
|
US GDP2
|
17.9
|
14.9
|
2.1
|
0.5
|
(3.0)
|
|
US unemployment3
|
3.0
|
3.5
|
3.9
|
5.4
|
8.5
|
|
US HPI4
|
35.8
|
23.7
|
3.2
|
0.3
|
(16.7)
|
|
US federal funds rate3
|
1.5
|
1.5
|
1.8
|
3.0
|
3.5
|
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 31.12.20
|
%
|
%
|
%
|
%
|
%
|
|
UK GDP5
|
2.5
|
1.6
|
0.7
|
0.1
|
(0.9)
|
|
UK unemployment6
|
5.0
|
5.3
|
5.7
|
6.5
|
7.2
|
|
UK HPI7
|
8.2
|
5.5
|
3.6
|
(0.2)
|
(3.6)
|
|
UK bank rate6
|
0.3
|
0.2
|
-
|
-
|
(0.1)
|
|
US GDP5
|
2.9
|
2.4
|
1.6
|
0.8
|
0.1
|
|
US unemployment6
|
5.3
|
5.7
|
6.4
|
8.3
|
10.4
|
|
US HPI7
|
7.3
|
5.5
|
3.8
|
0.8
|
(3.0)
|
|
US federal funds rate6
|
0.5
|
0.5
|
0.3
|
0.3
|
0.3
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
UK GDP5
|
2.9
|
2.2
|
1.5
|
0.8
|
(0.6)
|
|
UK unemployment6
|
3.6
|
3.9
|
4.1
|
5.1
|
7.0
|
|
UK HPI7
|
7.1
|
5.2
|
2.8
|
(1.1)
|
(6.9)
|
|
UK bank rate6
|
0.6
|
0.6
|
0.7
|
2.1
|
3.1
|
|
US GDP5
|
3.4
|
2.9
|
2.1
|
1.3
|
(0.1)
|
|
US unemployment6
|
3.2
|
3.7
|
3.9
|
4.7
|
6.6
|
|
US HPI7
|
6.3
|
4.3
|
3.2
|
1.6
|
(3.4)
|
|
US federal funds rate6
|
1.7
|
1.7
|
1.8
|
2.8
|
3.2
|
|
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
|
Maximum growth
relative to Q419 (2019: Q418), based on 20 quarter period in Upside
scenarios; 5-year yearly average CAGR in Baseline; minimum growth
relative to Q419 (2019: Q418), based on 20 quarter period in
Downside scenarios.
|
|
3
|
Lowest quarter
in Upside scenarios; 5-year average in Baseline; highest quarter in
Downside scenarios. Period based on 20 quarters from Q120 (2019:
Q119).
|
|
4
|
Maximum growth
relative to Q419 (2019: Q418), based on 20 quarter period in Upside
scenarios; 5-year quarter end CAGR in Baseline; minimum growth
relative to Q419 (2019: Q418), based on 20 quarter period in
Downside scenarios.
|
|
5
|
5-year yearly
average CAGR, starting 2019 (2019: 2018).
|
|
6
|
5-year average.
Period based on 20 quarters from Q120 (2019:
Q119).
|
|
7
|
5-year quarter
end CAGR, starting Q419 (2019: Q418).
|
2019 data presented on a revised, simplified basis for ease of
comparison.
Analysis of specific portfolios and asset types
Secured home loans
The UK
home loan portfolio primarily comprises first lien mortgages and
accounts for 93% (December 2019: 92%) of the Group’s total
home loans balance.
|
Home loans principal portfolios
|
|
|
Barclays UK
|
|
|
|
As at
31.12.20
|
As at
31.12.19
|
|
Gross loans and advances (£m)
|
|
|
148,343
|
143,259
|
|
90 day arrears rate, excluding recovery book (%)
|
|
|
0.2
|
0.2
|
|
Annualised gross charge-off rate - 180 days past due
(%)
|
|
|
0.6
|
0.6
|
|
Recovery book proportion of outstanding balances (%)
|
|
|
0.6
|
0.5
|
|
Recovery book impairment coverage ratio (%)1
|
|
|
3.2
|
5.2
|
|
|
|
|
|
|
|
Average marked to market LTV
|
|
|
|
|
|
Balance weighted (%)
|
|
|
50.7
|
51.1
|
|
Valuation weighted (%)1
|
|
|
37.6
|
37.9
|
|
|
|
|
|
|
|
New lending
|
|
|
Year ended 31.12.20
|
Year ended 31.12.19
|
|
New home loan completions (£m)
|
|
|
22,776
|
25,530
|
|
New home loans proportion > 90% LTV (%)
|
|
|
2.6
|
4.2
|
|
Average LTV on new home loans: balance weighted (%)
|
|
|
67.5
|
67.9
|
|
Average LTV on new home loans: valuation weighted
(%)1
|
|
|
59.6
|
59.8
|
|
Home loans principal portfolios
– distribution of balances by LTV2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 31.12.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
75.7
|
11.6
|
0.6
|
87.9
|
17.9
|
15.0
|
19.0
|
51.9
|
-
|
0.1
|
1.8
|
-
|
|
>75% and <=90%
|
10.8
|
0.8
|
-
|
11.6
|
9.7
|
14.8
|
7.6
|
32.1
|
0.1
|
1.2
|
16.0
|
0.2
|
|
>90% and <=100%
|
0.4
|
-
|
-
|
0.4
|
0.8
|
1.5
|
2.2
|
4.5
|
0.1
|
2.6
|
35.7
|
0.7
|
|
>100%
|
0.1
|
-
|
-
|
0.1
|
0.7
|
3.4
|
7.4
|
11.5
|
0.7
|
10.3
|
69.1
|
8.0
|
|
As at 31.12.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
76.0
|
10.7
|
0.7
|
87.4
|
4.2
|
15.4
|
28.5
|
48.1
|
-
|
0.1
|
2.2
|
-
|
|
>75% and <=90%
|
10.4
|
0.7
|
-
|
11.1
|
2.7
|
11.5
|
12.6
|
26.8
|
-
|
0.9
|
19.7
|
0.1
|
|
>90% and <=100%
|
1.3
|
0.1
|
-
|
1.4
|
0.8
|
2.5
|
4.9
|
8.2
|
-
|
1.8
|
54.4
|
0.3
|
|
>100%
|
0.1
|
-
|
-
|
0.1
|
0.2
|
4.1
|
12.6
|
16.9
|
0.2
|
8.7
|
107.4
|
9.0
|
|
1
|
2019 numbers
have been restated to factor in Wealth accounts to align with 2020
figures.
|
|
2
|
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
2020.
|
New bookings
reduced by 10.8% with a decrease in new flows across both
portfolios: 6.1% decrease in owner occupied and 34.8% decrease in
the BTL portfolio. This decrease was driven by supply and demand
effects of the COVID-19 pandemic. Demand was impacted by a
significant shrinking of the market in Q2 although this was
partially offset by a resurgent Q3 and Q4. High LTV supply was
reduced by credit management actions.
During 2020, a
total of 128k payment holidays were provided to customers. At 31
December 2020, the book value of the portfolio where payment
holidays remain in place was £2.2bn, representing 1.5% of the
portfolio.
Head Office: Italian home loans and
advances at amortised cost reduced to £5.7bn (2019:
£6.0bn) 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 62.1% (2019: 64.4%).
90-day arrears remained broadly stable at 1.7% (2019: 1.8%) and
gross charge-off rate increased to 1.0% (2019: 0.8%). At 31
December 2020, the book value of the portfolio where payment
holidays remain in place was £181.7m, representing 3.2% of the
portfolio.
Credit cards, unsecured loans and other retail lending
The
principal portfolios listed below accounted for 84% (December 2019:
87%) of the Group’s total credit cards, unsecured loans and
other retail lending.
|
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 31.12.20
|
£m
|
%
|
%
|
%
|
%
|
|
Barclays UK
|
|
|
|
|
|
|
UK cards
|
11,911
|
1.7
|
0.8
|
2.9
|
2.9
|
|
UK personal loans
|
4,591
|
2.3
|
1.2
|
3.4
|
3.1
|
|
Barclays Partner Finance1
|
2,469
|
0.5
|
0.3
|
1.1
|
1.1
|
|
Barclays International
|
|
|
|
|
|
|
US cards
|
16,845
|
2.5
|
1.4
|
5.6
|
5.6
|
|
Germany consumer lending
|
3,458
|
1.9
|
0.8
|
1.2
|
1.1
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
|
UK cards
|
16,457
|
1.7
|
0.8
|
1.6
|
1.6
|
|
UK personal loans
|
6,139
|
2.1
|
1.0
|
3.2
|
2.9
|
|
Barclays International
|
|
|
|
|
|
|
US cards
|
22,041
|
2.7
|
1.4
|
4.5
|
4.4
|
|
Barclays Partner Finance1
|
4,134
|
0.9
|
0.3
|
1.7
|
1.7
|
|
Germany consumer lending2
|
3,683
|
1.8
|
0.7
|
1.1
|
1.0
|
|
1
|
On 1 April
2020, the Barclays Partner Finance business moved from Barclays
International to Barclays UK. The 2019 comparative figures have not
been restated.
|
|
2
|
2019 Germany
consumer lending numbers have been restated to include the Fundy
unsecured portfolio and other adjustments to write off
rates.
|
UK cards: 30 and 90 day arrears rates have remained stable
at 1.7% and 0.8% respectively, despite balances reducing by
c.£4.5bn. Delinquency rates initially increased as some
customers missed payments prior to payment holidays being
initiated. Subsequently payment holidays and government support
schemes were introduced, which coupled with significantly lower
spend and balance growth activities have resulted in suppressed
flows into delinquency cycles. Upon exit from payment holidays the
majority of customers were able to resume making payments. During
2020, a total of 178k payment holidays were provided to customers.
At 31 December 2020, the book value of the portfolio where payment
holidays remain in place was £93m, representing 0.8% of the
portfolio.
UK personal loans: 30 and 90 day arrears rates both
increased by 0.2% to 2.3% and 1.2% respectively driven by a 25%
reduction in overall balances, coupled with a higher flow in to
delinquency of customers previously granted a payment holiday.
During 2020, a total of 84k payment holidays were provided to
customers. At 31 December 2020, the book value of the portfolio
where payment holidays remain in place was £85.4m,
representing 1.9% of the portfolio.
Barclays Partner Finance: 30 day arrears rate has reduced by
0.5% (2019: 0.9%) due to the sale of the motor financing business
and the impact of payment holidays however the vast majority of
these were exited and customers resumed making payments. A total of
17k payment holidays were provided to customers and 18k payment
holidays were provided to motor financing business customers in the
year. At 31 December 2020, the book value of the portfolio where
payment holidays remain in place was £6.6m, representing 0.3%
of the portfolio.
US cards: 30 days arrears rate
decreased to 2.5% (2019: 2.7%) due to government support schemes
and payment holidays resulting in fewer accounts entering into
delinquency. 90 day arrears rate remained stable at 1.4%. Write-off
rates were in line with seasonal trends. A total of 251k payment
holidays were provided to customers in the year. At 31 December
2020, the book value of the portfolio where payment holidays remain
in place was £54.7m, representing 0.3% of the
portfolio.
Germany consumer lending: Increases in 30 and 90 days
arrears rates were primarily driven by the drop in the overall
balances. A total of 9k payment holidays were provided to customers
in the year. At 31 December 2020, the book value of the portfolio
where payment holidays remain in place was £0.24m,
representing 0.01% of the portfolio.
Market Risk
Analysis of management value at risk (VaR)
The
table below shows the total management VaR on a diversified basis
by risk factor. Total management VaR includes all trading positions
in CIB and Treasury and it is calculated with a one-day holding
period.
Limits
are applied against each risk factor VaR as well as total
management VaR, which are then cascaded further by risk managers to
each business.
|
Management VaR (95%) by asset class
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 31.12.20
|
|
Year ended 31.12.19
|
|
|
Average
|
High1
|
Low1
|
|
Average
|
High1
|
Low1
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Credit risk
|
20
|
38
|
10
|
|
12
|
17
|
8
|
|
Interest rate risk
|
10
|
17
|
6
|
|
6
|
11
|
3
|
|
Equity risk
|
13
|
35
|
6
|
|
10
|
22
|
5
|
|
Basis risk
|
10
|
16
|
7
|
|
8
|
11
|
6
|
|
Spread risk
|
5
|
9
|
3
|
|
4
|
5
|
3
|
|
Foreign exchange risk
|
5
|
7
|
2
|
|
3
|
5
|
2
|
|
Commodity risk
|
1
|
1
|
-
|
|
1
|
2
|
-
|
|
Inflation risk
|
2
|
3
|
1
|
|
2
|
3
|
1
|
|
Diversification effect
|
(34)
|
n/a
|
n/a
|
|
(23)
|
n/a
|
n/a
|
|
Total management VaR
|
32
|
57
|
18
|
|
23
|
29
|
17
|
|
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 to £32m in 2020 (2019: £23m),
driven by an increase in market volatility in late Q1 and Q2 during
the initial phase of the COVID-19 pandemic. Management VaR
stabilised and declined in the second half of the
year.
Treasury and Capital Risk
The
Group has a comprehensive Key Risk Control Framework for managing
its liquidity risk. The Liquidity Framework meets the PRA standards
and is designed 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
Framework is delivered via a combination of policy formation,
review and governance, analysis, stress testing, limit setting and
monitoring.
Liquidity risk stress testing
The
liquidity risk stress assessment measures the potential contractual
and contingent stress outflows under a range of scenarios, which
are then used to determine the size of the liquidity pool that is
immediately available to meet anticipated outflows if a stress
occurs. The 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 long-term liquidity
stress test, which measures the anticipated outflows over a
12-month market-wide scenario.
The CRR
(as amended by CRR II) 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 2020, the Group held eligible liquid assets in excess
of 100% of net stress outflows to its internal and external
regulatory requirements.
|
Liquidity coverage ratio
|
|
|
|
|
As at 31.12.20
|
As at 31.12.19
|
|
|
£bn
|
£bn
|
|
Eligible liquidity buffer
|
258
|
206
|
|
Net stress outflows
|
(159)
|
(128)
|
|
Surplus
|
99
|
78
|
|
|
|
|
|
Liquidity coverage ratio
|
162%
|
160%
|
The
Group plans to maintain its surplus to the internal and regulatory
stress requirements at an efficient level, while considering risks
to market funding conditions and its liquidity position. The
continuous reassessment of these risks may lead to execution of
appropriate actions to resize the liquidity pool.
|
Composition of the Group liquidity pool
|
|
|
As at 31.12.20
|
As at 31.12.19
|
|
|
Liquidity pool
|
Liquidity pool of which CRR LCR
eligible3
|
Liquidity pool
|
|
|
Cash
|
Level 1
|
Level 2A
|
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Cash and deposits with central
banks1
|
197
|
192
|
-
|
-
|
153
|
|
|
|
|
|
|
|
|
Government bonds2
|
|
|
|
|
|
|
AAA to AA-
|
31
|
-
|
29
|
1
|
31
|
|
A+ to A-
|
13
|
-
|
6
|
7
|
2
|
|
BBB+ to BBB-
|
1
|
-
|
1
|
-
|
3
|
|
Total government bonds
|
45
|
-
|
36
|
8
|
36
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Government guaranteed issuers, PSEs and GSEs
|
10
|
-
|
8
|
1
|
9
|
|
International organisations and MDBs
|
6
|
-
|
5
|
-
|
7
|
|
Covered bonds
|
8
|
-
|
6
|
2
|
6
|
|
Total other
|
24
|
-
|
19
|
3
|
22
|
|
|
|
|
|
|
|
|
Total as at 31 December 2020
|
266
|
192
|
55
|
11
|
211
|
|
Total as at 31 December 2019
|
211
|
150
|
50
|
3
|
|
|
1
|
Includes cash
held at central banks and surplus cash at central banks related to
payment schemes. Over 98% (December 2019: over 98%) was placed with
the Bank of England, US Federal Reserve, European Central Bank,
Bank of Japan and Swiss National Bank.
|
|
2
|
Of which over
78% (December 2019: over 79%) comprised UK, US, French, German,
Japanese, Swiss and Dutch securities.
|
|
3
|
The LCR
eligible liquidity pool is adjusted for trapped liquidity and other
regulatory deductions. It also incorporates other CRR (as amended
by CRR II) qualifying assets that are not eligible under
Barclays’ internal risk appetite.
|
The
Group liquidity pool increased to £266bn as at December 2020
(December 2019: £211bn) driven by a 16% growth in deposits,
which was largely a consequence of government and central bank
policy response to the COVID-19 pandemic. The reduction in Q420
reflects actions taken to manage down surplus liquidity proactively
as the prevailing uncertainty from earlier in the year abated.
During 2020, the month-end liquidity pool ranged from £218bn
to £332bn (2019: £211bn to £225bn), and the
month-end average was £287bn (2019: £235bn). The
liquidity pool is held unencumbered and is not used to support
payment or clearing requirements. Such requirements are treated as
part of our regular business funding. The liquidity pool is
intended to offset stress outflows, and comprises the above cash
and unencumbered assets.
As at
December 2020, 64% (December 2019: 67%) of the liquidity pool was
located in Barclays Bank PLC, 23% (December 2019: 20%) in Barclays
Bank UK PLC and 7% (December 2019: 6%) 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 31.12.20
|
|
As at 31.12.19
|
|
|
Loans and advances at amortised cost
|
Deposits at amortised cost
|
Loan: deposit ratio1
|
|
Loan: deposit ratio1
|
|
Funding of loans and advances
|
£bn
|
£bn
|
%
|
|
%
|
|
Barclays UK
|
214
|
240
|
89%
|
|
96%
|
|
Barclays International
|
123
|
241
|
51%
|
|
63%
|
|
Head Office
|
6
|
|
|
|
|
|
Barclays Group
|
343
|
481
|
71%
|
|
82%
|
|
1
|
The loan:
deposit ratio is calculated as loans and advances at amortised cost
divided by deposits at amortised cost.
|
Composition of wholesale funding
Wholesale
funding outstanding (excluding repurchase agreements) was
£145.0bn (December 2019: £147.1bn). In 2020, the Group
issued £7.9bn 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 including a $1.75bn two-year senior bond issuance in May
and a $1.5bn 7.625% Contingent Capital Notes repurchase in
December. Barclays Bank UK PLC continued to issue in the
shorter-term markets and maintains an active secured funding
programme.
Wholesale
funding of £42.7bn (December 2019: £40.6bn) matures in
less than one year, representing 29% (December 2019: 28%) of total
wholesale funding outstanding. This includes £20.3bn (December
2019: £16.3bn) related to term funding2. Although not a
requirement, the liquidity pool exceeded wholesale funding maturing
in less than one year by £223bn (December 2019:
£170bn).
|
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)
|
1.1
|
1.1
|
-
|
1.2
|
3.4
|
1.4
|
7.7
|
5.6
|
5.1
|
13.5
|
36.7
|
|
Senior unsecured (privately placed)
|
0.1
|
-
|
-
|
0.1
|
0.2
|
-
|
0.2
|
0.2
|
-
|
0.7
|
1.3
|
|
Subordinated liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.9
|
-
|
6.8
|
7.7
|
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
-
|
5.4
|
3.1
|
5.6
|
14.1
|
0.5
|
0.1
|
-
|
-
|
-
|
14.7
|
|
Asset backed commercial paper
|
1.4
|
5.0
|
0.7
|
-
|
7.1
|
-
|
-
|
-
|
-
|
-
|
7.1
|
|
Senior unsecured (public benchmark)
|
-
|
0.5
|
0.1
|
0.1
|
0.7
|
1.3
|
0.1
|
1.1
|
-
|
0.9
|
4.1
|
|
Senior unsecured (privately placed)3
|
0.8
|
2.3
|
2.2
|
4.2
|
9.5
|
7.1
|
6.4
|
3.9
|
4.9
|
21.7
|
53.5
|
|
Asset backed securities
|
-
|
-
|
-
|
0.5
|
0.5
|
0.8
|
0.4
|
0.5
|
0.2
|
1.4
|
3.8
|
|
Subordinated liabilities
|
1.4
|
0.2
|
3.2
|
0.3
|
5.1
|
2.2
|
-
|
0.1
|
-
|
1.2
|
8.6
|
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
-
|
0.9
|
0.2
|
0.1
|
1.2
|
-
|
-
|
-
|
-
|
-
|
1.2
|
|
Senior unsecured (Public benchmark)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.1
|
0.1
|
|
Covered bonds
|
0.9
|
-
|
-
|
-
|
0.9
|
2.3
|
1.8
|
-
|
-
|
1.2
|
6.2
|
|
Total as at 31 December 2020
|
5.7
|
15.4
|
9.5
|
12.1
|
42.7
|
15.6
|
16.7
|
12.3
|
10.2
|
47.5
|
145.0
|
|
Of which secured
|
2.3
|
5.0
|
0.7
|
0.5
|
8.5
|
3.1
|
2.2
|
0.5
|
0.2
|
2.6
|
17.1
|
|
Of which unsecured
|
3.4
|
10.4
|
8.8
|
11.6
|
34.2
|
12.5
|
14.5
|
11.8
|
10.0
|
44.9
|
127.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2019
|
4.5
|
11.6
|
9.4
|
15.1
|
40.6
|
19.8
|
12.1
|
15.1
|
11.6
|
47.9
|
147.1
|
|
Of which secured
|
1.6
|
5.3
|
2.3
|
0.5
|
9.7
|
0.9
|
2.5
|
2.4
|
0.9
|
3.2
|
19.6
|
|
Of which unsecured
|
2.9
|
6.3
|
7.1
|
14.6
|
30.9
|
18.9
|
9.6
|
12.7
|
10.7
|
44.7
|
127.5
|
|
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 £45.4bn, of which £8.7bn matures
within one year.
|
Capital
Minimum requirements
The
Group’s Overall Capital Requirement for CET1 is 11.2%
comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation
Buffer (CCB), a 1.5% Global Systemically Important Institution
(G-SII) buffer, a 2.7% Pillar 2A requirement and a 0.0%
Countercyclical Capital Buffer (CCyB).
The
Group’s CCyB is based on the buffer rate applicable for each
jurisdiction in which the Group has exposures. On 11 March 2020,
the Financial Policy Committee (FPC) set the CCyB rate for UK
exposures at 0% with immediate effect. The buffer rates set by
other national authorities for non-UK exposures are not currently
material. Overall, this results in a 0.0% CCyB for the
Group.
The
Group’s Pillar 2A requirement as per the PRA’s
Individual Capital Requirement is 4.8% of which at least 56.25%
needs to be met with CET1 capital, equating to approximately 2.7%
of RWAs. The Pillar 2A requirement is subject to at least annual
review and has been set as a nominal capital amount. This is based
on a point in time assessment and the requirement (when expressed
as a proportion of RWAs) will change depending on the total RWAs at
each reporting period.
Significant regulatory updates in the period
Under the withdrawal agreement between the UK and the EU, the
11-month transition period expired at 11pm on 31 December 2020. Any
references to CRR as amended by CRR II mean, unless otherwise
specified, CRR as amended by CRR II, as it forms part of UK law
pursuant to the European Union (Withdrawal) Act 2018 and subject to
the temporary transitional powers (TTP) available to UK
regulators to delay or phase-in
on-shoring changes to UK regulatory requirements arising at the end
of the transition period until 31 March 2022, as at the applicable
reporting date. Throughout the
TTP period, the Bank of England (BoE) and PRA are expected to
review the UK legislation framework and any disclosures made by the
Group will be subject to any resulting
guidance.
The
following regulatory updates formed part of CRR as amended by CRR
II prior to 31 December 2020 and subsequently form part of UK law
as defined above.
On 22
April 2020, the regulatory technical standards on prudent valuation
were amended to include an increase to diversification factors
applied to certain additional valuation adjustments. The amendments
temporarily reduced the additional value adjustment deduction (PVA)
and were applied until 31 December 2020 inclusive.
On 27
June 2020, CRR as amended by CRR II, was further amended to
accelerate specific CRR II measures and implement a new IFRS 9
transitional relief calculation. Previously due to be implemented
in June 2021, the accelerated measures primarily relate to
non-deduction of prudently valued software assets from CET1
capital, the CRR leverage calculation to include additional
settlement netting and limited changes to the calculation of RWAs.
For UK leverage calculations, the PRA early adopted the CRR II
settlement netting measure in April 2020.
The
IFRS 9 transitional arrangements have been extended by two years
and a new modified calculation has been introduced. 100% relief
will be applied to increases in Stage 1 and Stage 2 provisions from
1 January 2020 throughout 2020 and 2021; 75% in 2022; 50% in 2023;
25% in 2024 with no relief applied from 2025. The phasing out
of transitional relief on the “day 1” impact of IFRS 9
as well as increases in Stage 1 and Stage 2 provisions between 1
January 2018 and 31 December 2019 under the modified calculation
remain unchanged and continue to be subject to 70% transitional
relief throughout 2020; 50% for 2021; 25% for 2022 and with no
relief applied from 2023.
On 23
December 2020, a new regulatory technical standard on the
prudential treatment of qualifying software assets was adopted into
EU law replacing the CET1 capital deduction with prudential
amortisation up to a 3-year period. Intangible assets that are no
longer deducted are subject to 100% risk weight
instead.
Following
its stated intention to consult, on 12 February 2021 the PRA
launched a consultation on certain items within the Basel standards
that remain to be implemented in the UK as well as setting out
proposed new PRA CRR rules. The proposals include reverting to the
previous treatment of 100% CET1 capital deduction for qualifying
software assets by the end of 2021, meaning the benefit in the CET1
ratio is likely to be reversed in future periods.
|
Capital
ratios1,2,3
|
As at
|
As at
|
As at
|
|
31.12.20
|
30.09.20
|
31.12.19
|
|
CET1
|
15.1%
|
14.6%
|
13.8%
|
|
Tier 1 (T1)
|
19.0%
|
18.7%
|
17.7%
|
|
Total regulatory capital
|
22.1%
|
22.5%
|
21.6%
|
|
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
|
Total equity excluding non-controlling interests per the balance
sheet
|
65,797
|
67,816
|
64,429
|
|
Less: other equity instruments (recognised as AT1
capital)
|
(11,172)
|
(12,012)
|
(10,871)
|
|
Adjustment to retained earnings for foreseeable dividends and other
equity coupons
|
(204)
|
(65)
|
(1,096)
|
|
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
|
Additional value adjustments (PVA)
|
(1,146)
|
(1,241)
|
(1,746)
|
|
Goodwill and intangible assets
|
(6,914)
|
(8,154)
|
(8,109)
|
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(595)
|
(422)
|
(479)
|
|
Fair value reserves related to gains or losses on cash flow
hedges
|
(1,575)
|
(1,745)
|
(1,002)
|
|
Gains or losses on liabilities at fair value resulting from own
credit
|
870
|
717
|
260
|
|
Defined benefit pension fund assets
|
(1,326)
|
(1,785)
|
(1,594)
|
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(50)
|
(50)
|
(50)
|
|
Adjustment under IFRS 9 transitional arrangements
|
2,556
|
2,512
|
1,126
|
|
Other regulatory adjustments
|
55
|
(62)
|
(55)
|
|
CET1 capital
|
46,296
|
45,509
|
40,813
|
|
|
|
|
|
|
AT1 capital
|
|
|
|
|
Capital instruments and related share premium accounts
|
11,172
|
12,012
|
10,871
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
646
|
622
|
687
|
|
Other regulatory adjustments and deductions
|
(80)
|
(80)
|
(130)
|
|
AT1 capital
|
11,738
|
12,554
|
11,428
|
|
|
|
|
|
|
T1 capital
|
58,034
|
58,063
|
52,241
|
|
|
|
|
|
|
T2 capital
|
|
|
|
|
Capital instruments and related share premium accounts
|
7,836
|
9,451
|
7,650
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
1,893
|
2,516
|
3,984
|
|
Credit risk adjustments (excess of impairment over expected
losses)
|
57
|
36
|
16
|
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(250)
|
|
Total regulatory capital
|
67,660
|
69,906
|
63,641
|
|
|
|
|
|
|
Total RWAs
|
306,203
|
310,727
|
295,131
|
|
1
|
CET1, T1 and T2
capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II. This includes IFRS 9
transitional arrangements and the grandfathering of CRR and CRR II
non-compliant capital instruments.
|
|
2
|
The fully
loaded CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays PLC AT1 securities, was 14.3%, with
£43.7bn of CET1 capital and £305.3bn of RWAs calculated
without applying the transitional arrangements of the CRR as
amended by CRR II.
|
|
3
|
The
Group’s CET1 ratio, as is relevant for assessing against the
conversion trigger in Barclays Bank PLC 7.625% Contingent Capital
Notes, was 15.1%. For this calculation CET1 capital and RWAs are
calculated applying the transitional arrangements under the CRR as
amended by CRR II, including the IFRS 9 transitional arrangements.
The benefit of the Financial Services Authority (FSA) October 2012
interpretation of the transitional provisions, relating to the
implementation of CRD IV, expired in December
2017.
|
|
Movement in CET1 capital
|
Three months
|
Year
|
|
ended
|
ended
|
|
31.12.20
|
31.12.20
|
|
£m
|
£m
|
|
Opening CET1 capital
|
45,509
|
40,813
|
|
|
|
|
|
Profit for the period attributable to equity holders
|
446
|
2,383
|
|
Own credit relating to derivative liabilities
|
10
|
29
|
|
Dividends and other equity coupons paid and foreseen
|
(365)
|
35
|
|
Increase in retained regulatory capital generated from
earnings
|
91
|
2,447
|
|
|
|
|
|
Net impact of share schemes
|
95
|
115
|
|
Fair value through other comprehensive income reserve
|
397
|
192
|
|
Currency translation reserve
|
(977)
|
(473)
|
|
Other reserves
|
(42)
|
(48)
|
|
Decrease in other qualifying reserves
|
(527)
|
(214)
|
|
|
|
|
|
Pension remeasurements within reserves
|
(433)
|
(111)
|
|
Defined benefit pension fund asset deduction
|
459
|
268
|
|
Net impact of pensions
|
26
|
157
|
|
|
|
|
|
Additional value adjustments (PVA)
|
95
|
600
|
|
Goodwill and intangible assets
|
1,240
|
1,195
|
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(173)
|
(116)
|
|
Adjustment under IFRS 9 transitional arrangements
|
44
|
1,430
|
|
Other regulatory adjustments
|
(9)
|
(16)
|
|
Increase in regulatory capital due to adjustments and
deductions
|
1,197
|
3,093
|
|
|
|
|
|
Closing CET1 capital
|
46,296
|
46,296
|
|
|
|
|
CET1
capital increased £5.5bn to £46.3bn (December 2019:
£40.8bn).
£2.4bn
of capital generated from profits, and a £1.0bn increase due
to the cancellation of the full year 2019 dividend were partially
offset by £0.9bn of AT1 coupons paid and £0.2bn dividends
foreseen for the announced 2020 full year dividend. Other
significant movements in the period were:
|
●
|
A
£0.5bn decrease in the currency translation reserve mainly
driven by the depreciation of period end USD against
GBP
|
|
●
|
A
£0.6bn increase due to a reduction in PVA which includes the
temporary increase to diversification factors applied to certain
additional valuation adjustments
|
|
●
|
A
£1.2bn increase due to a reduction in the goodwill and
intangible assets deduction driven by a new regulatory technical
standard replacing the deduction with prudential amortisation up to
a 3-year period on qualifying software assets
|
|
●
|
A
£1.4bn increase in the IFRS 9 transitional relief after tax,
following new impairment charges and the implementation of new
regulatory measures which allow for 100% relief on increases in
stage 1 and stage 2 impairment throughout 2020 and
2021
|
|
RWAs by risk type and business
|
|
|
Credit risk
|
|
Counterparty credit risk
|
|
Market risk
|
|
Operational risk
|
Total RWAs
|
|
|
Std
|
IRB
|
|
Std
|
IRB
|
Settlement risk
|
CVA
|
|
Std
|
IMA
|
|
|
|
|
As at 31.12.20
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays UK
|
7,360
|
54,340
|
|
394
|
-
|
-
|
136
|
|
72
|
-
|
|
11,359
|
73,661
|
|
Corporate
and Investment Bank
|
24,660
|
73,792
|
|
12,047
|
20,280
|
246
|
2,351
|
|
13,123
|
22,363
|
|
23,343
|
192,205
|
|
Consumer,
Cards and Payments
|
19,754
|
3,041
|
|
177
|
45
|
-
|
31
|
|
-
|
71
|
|
6,996
|
30,115
|
|
Barclays International
|
44,414
|
76,833
|
|
12,224
|
20,325
|
246
|
2,382
|
|
13,123
|
22,434
|
|
30,339
|
222,320
|
|
Head Office
|
4,153
|
6,869
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
(800)
|
10,222
|
|
Barclays Group
|
55,927
|
138,042
|
|
12,618
|
20,325
|
246
|
2,518
|
|
13,195
|
22,434
|
|
40,898
|
306,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.09.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
7,350
|
56,373
|
|
369
|
-
|
-
|
100
|
|
125
|
-
|
|
11,851
|
76,168
|
|
Corporate
and Investment Bank
|
24,800
|
76,464
|
|
11,628
|
20,645
|
106
|
2,545
|
|
13,043
|
22,709
|
|
21,388
|
193,328
|
|
Consumer,
Cards and Payments
|
20,597
|
2,921
|
|
168
|
47
|
-
|
35
|
|
-
|
75
|
|
7,538
|
31,381
|
|
Barclays International
|
45,397
|
79,385
|
|
11,796
|
20,692
|
106
|
2,580
|
|
13,043
|
22,784
|
|
28,926
|
224,709
|
|
Head Office
|
3,701
|
6,022
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
127
|
9,850
|
|
Barclays Group
|
56,448
|
141,780
|
|
12,165
|
20,692
|
106
|
2,680
|
|
13,168
|
22,784
|
|
40,904
|
310,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
5,189
|
57,455
|
|
235
|
-
|
-
|
23
|
|
178
|
-
|
|
11,821
|
74,901
|
|
Corporate
and Investment Bank
|
25,749
|
62,177
|
|
12,051
|
16,875
|
276
|
2,470
|
|
12,854
|
17,626
|
|
21,475
|
171,553
|
|
Consumer,
Cards and Payments
|
27,209
|
2,706
|
|
92
|
37
|
-
|
11
|
|
-
|
103
|
|
7,532
|
37,690
|
|
Barclays International
|
52,958
|
64,883
|
|
12,143
|
16,912
|
276
|
2,481
|
|
12,854
|
17,729
|
|
29,007
|
209,243
|
|
Head Office
|
5,104
|
5,754
|
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
129
|
10,987
|
|
Barclays Group
|
63,251
|
128,092
|
|
12,378
|
16,912
|
276
|
2,504
|
|
13,032
|
17,729
|
|
40,957
|
295,131
|
|
Movement analysis of RWAs
|
|
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Opening RWAs (as at 31.12.19)
|
191,343
|
32,070
|
30,761
|
40,957
|
295,131
|
|
Book size
|
(6,573)
|
2,232
|
9,188
|
(59)
|
4,788
|
|
Acquisitions and disposals
|
(165)
|
-
|
-
|
-
|
(165)
|
|
Book quality
|
9,081
|
1,365
|
-
|
-
|
10,446
|
|
Model updates
|
2,796
|
150
|
-
|
-
|
2,946
|
|
Methodology and policy
|
(851)
|
(110)
|
(4,320)
|
-
|
(5,281)
|
|
Foreign exchange movements1
|
(1,662)
|
-
|
-
|
-
|
(1,662)
|
|
Total RWA movements
|
2,626
|
3,637
|
4,868
|
(59)
|
11,072
|
|
Closing RWAs (as at 31.12.20)
|
193,969
|
35,707
|
35,629
|
40,898
|
306,203
|
|
1
|
Foreign
exchange movements do not include foreign exchange for counterparty
credit risk or market risk.
|
Overall
RWAs increased £11.1bn to £306.2bn (December 2019:
£295.1bn). Significant movements in the period
were:
Credit
risk RWAs increased £2.6bn:
|
●
|
A
£6.6bn decrease in book size primarily due to lower consumer
lending partially offset by growth in mortgages within
BUK
|
|
●
|
A
£9.1bn increase in book quality due to a reduction in credit
quality primarily within CIB
|
|
●
|
A
£2.8bn increase in model updates primarily due to modelled
risk weight recalibrations
|
|
●
|
A
£0.9bn decrease in methodology and policy primarily due the
application of revised SME discount factors under CRR II, partially
offset by an increase due to the risk weighting of qualifying
software assets that are no longer deducted from CET1
capital
|
|
●
|
A
£1.7bn decrease due to the depreciation of period end USD
against GBP
|
Counterparty
credit risk RWAs increased £3.6bn:
|
●
|
A
£2.2bn increase in book size primarily due to an increase in
trading activities across SFTs and derivatives
|
|
●
|
A
£1.4bn increase in book quality primarily due to a reduction
in credit quality within CIB
|
Market
risk RWAs increased £4.9bn:
|
●
|
A
£9.2bn increase in book size primarily due to an increase in
trading activities and higher market volatility
|
|
●
|
A
£4.3bn decrease in methodology and policy primarily due to the
removal of a Risk Not In VaR (RNIV) and a reduction in pre COVID-19
VaR backtesting exceptions
|
Leverage ratio and exposures
The
Group is subject to a leverage ratio requirement of 3.8% as at 31
December 2020. This comprises the 3.25% minimum requirement, a
G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a
countercyclical leverage ratio buffer of 0.0%. Although the
leverage ratio is expressed in terms of T1 capital, 75% of the
minimum requirement, equating to 2.4375%, needs to be met with CET1
capital. In addition, the G-SII ALRB must be covered solely with
CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB
was £6.0bn.
The
Group is required to disclose an average UK leverage ratio which is
based on capital on the last day of each month in the quarter and
an exposure measure for each day in the quarter. The Group is also
required to disclose a UK leverage ratio based on capital and
exposure on the last day of the quarter. Both approaches exclude
qualifying claims on central banks from the leverage exposures and
include the PRA’s early adoption of CRR II settlement
netting. The FPC intends to review the UK leverage framework in
2021.
|
Leverage
ratios1,2
|
As at
31.12.20
|
As at
30.09.20
|
As at
31.12.19
|
|
£m
|
£m
|
£m
|
|
Average UK leverage ratio
|
5.0%
|
5.1%
|
4.5%
|
|
Average T1 capital3
|
57,069
|
56,690
|
51,823
|
|
Average UK leverage exposure
|
1,146,919
|
1,111,052
|
1,142,819
|
|
|
|
|
|
|
UK leverage ratio
|
5.3%
|
5.2%
|
5.1%
|
|
|
|
|
|
|
CET1 capital
|
46,296
|
45,509
|
40,813
|
|
AT1 capital
|
11,092
|
11,932
|
10,741
|
|
T1 capital3
|
57,388
|
57,441
|
51,554
|
|
|
|
|
|
|
UK leverage exposure
|
1,090,907
|
1,095,097
|
1,007,721
|
|
|
|
|
|
|
UK leverage exposure
|
|
|
|
|
Accounting assets
|
|
|
|
|
Derivative financial instruments
|
302,446
|
296,551
|
229,236
|
|
Derivative cash collateral
|
64,798
|
67,034
|
56,589
|
|
Securities financing transactions (SFTs)
|
164,034
|
178,736
|
111,307
|
|
Loans and advances and other assets
|
818,236
|
879,348
|
743,097
|
|
Total IFRS assets
|
1,349,514
|
1,421,669
|
1,140,229
|
|
|
|
|
|
|
Regulatory consolidation adjustments
|
(1,144)
|
(1,943)
|
(1,170)
|
|
|
|
|
|
|
Derivatives adjustments
|
|
|
|
|
Derivatives netting
|
(272,275)
|
(269,441)
|
(207,756)
|
|
Adjustments to cash collateral
|
(57,414)
|
(58,298)
|
(48,464)
|
|
Net written credit protection
|
14,986
|
15,890
|
13,784
|
|
Potential future exposure (PFE) on derivatives
|
117,010
|
122,426
|
119,118
|
|
Total derivatives adjustments
|
(197,693)
|
(189,423)
|
(123,318)
|
|
|
|
|
|
|
SFTs adjustments
|
21,114
|
20,274
|
18,339
|
|
|
|
|
|
|
Regulatory deductions and other adjustments
|
(17,469)
|
(18,011)
|
(11,984)
|
|
|
|
|
|
|
Weighted off-balance sheet commitments
|
113,704
|
110,749
|
105,289
|
|
|
|
|
|
|
Qualifying central bank claims
|
(155,890)
|
(205,451)
|
(119,664)
|
|
|
|
|
|
|
Settlement netting
|
(21,229)
|
(42,767)
|
-
|
|
|
|
|
|
|
UK leverage exposure
|
1,090,907
|
1,095,097
|
1,007,721
|
|
1
|
Fully loaded average UK leverage ratio
was 4.8%, with £54.6bn of T1 capital and £1,144bn of
leverage exposure. Fully loaded UK leverage ratio was 5.0%, with
£54.8bn of T1 capital and £1,088bn of leverage exposure.
Fully loaded UK leverage ratios are calculated without applying the
transitional arrangements of the CRR as amended by CRR
II.
|
|
2
|
Capital and leverage measures are
calculated applying the transitional arrangements of the CRR as
amended by CRR II.
|
|
3
|
T1 capital is calculated in line with
the PRA Handbook.
|
The
average UK leverage ratio increased to 5.0% (December 2019: 4.5%)
primarily driven by the increase in T1 capital. The average
leverage exposure increased to £1,147bn (December 2019:
£1,143bn) primarily driven by an increase in SFTs and TPAs
largely driven by an increase in secured lending and client
activity within CIB, partially offset by the PRA’s early
adoption of CRR II settlement netting.
The UK
leverage ratio increased to 5.3% (December 2019: 5.1%) primarily
driven by an increase of £5.8bn in Tier 1 capital partially
offset by an increase in the UK leverage exposure of
£83.2bn.
The UK
leverage exposure increase of £83.2bn was primarily driven
by:
|
●
|
A
£52.7bn increase in SFTs and £75.1bn of loans advances
and other; partially offset by
|
|
●
|
A
£36.2bn decrease due to the exemption of qualifying central
bank claims; and
|
|
●
|
A
£21.2bn decrease due to the PRA’s adoption of CRR II
settlement netting
|
The
Group also discloses a CRR leverage ratio1 within its
additional regulatory disclosures prepared in accordance with EBA
guidelines on disclosure under Part Eight of the CRR (see Barclays
PLC Pillar 3 Report 2020, due to be published on 18 February 2021
and which will be available at home.barclays/investor-relations/reports-and-events/latest-financial-results).
|
1
|
CRR leverage
ratio as amended by CRR II.
|
MREL
The
Group is required to meet the higher of: (i) the requirements set
by the BoE based on RWAs and the higher of average and UK leverage
exposures; and (ii) the requirements in CRR as amended by CRR II
based on RWAs and CRR leverage exposures. The MREL requirements are
subject to phased implementation and will be fully implemented by 1
January 2022.
On 19
January 2021 the BoE published indicative MREL requirements that
show the Group’s highest requirement in 2022 will be 7.70% of
CRR leverage exposure, based on 30 September 2020 exposures. The
BoE is currently reviewing the MREL calibration and intends to make
any policy changes by the end of 2021. Separately, the FPC intends
to review the UK leverage framework in 2021 and this, along with
any MREL policy changes, may result in a different MREL requirement
from 1 January 2022 than that which is currently proposed. CET1
capital cannot be counted towards both MREL and the capital
buffers, meaning that the buffers will effectively be applied above
MREL requirements.
|
Own funds and
eligible liabilities ratios1,2
|
As a percentage of RWAs
|
|
As a percentage of CRR leverage exposure
|
|
As at
31.12.20
|
As at
30.09.20
|
As at
31.12.19
|
|
As at
31.12.20
|
As at
30.09.20
|
As at
31.12.19
|
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
32.7%
|
32.8%
|
31.2%
|
|
8.0%
|
7.8%
|
8.2%
|
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments3
|
33.6%
|
33.8%
|
32.8%
|
|
8.2%
|
8.0%
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own funds and
eligible liabilities1,2
|
|
|
|
|
As at
31.12.20
|
As at
30.09.20
|
As at
31.12.19
|
|
|
|
|
|
|
£m
|
£m
|
£m
|
|
CET1 capital
|
|
46,296
|
45,509
|
40,813
|
|
AT1 capital instruments and related share premium
accounts4
|
|
11,092
|
11,932
|
10,741
|
|
T2 capital instruments and related share premium
accounts4
|
|
7,733
|
9,327
|
7,416
|
|
Eligible liabilities
|
|
35,086
|
35,209
|
33,025
|
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
|
100,207
|
101,977
|
91,995
|
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
|
646
|
622
|
687
|
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
|
1,893
|
2,516
|
3,984
|
|
Total own funds and eligible liabilities, including eligible
Barclays Bank PLC instruments3
|
|
102,746
|
105,115
|
96,666
|
|
|
|
|
|
|
|
|
|
|
Total RWAs
|
|
306,203
|
310,727
|
295,131
|
|
Total CRR leverage
exposure5
|
|
1,254,157
|
1,306,828
|
1,126,259
|
|
1
|
CET1, T1 and T2
capital, and RWAs are calculated applying the transitional
arrangements of the CRR as amended by CRR II. This includes IFRS 9
transitional arrangements and the grandfathering of CRR and CRR II
non-compliant capital instruments.
|
|
2
|
The BoE has set
external MREL based on the higher of RWAs and CRR or UK leverage
exposures which could result in the binding measure changing in
future periods. The 31 December 2020 Barclays PLC (the Parent
company) own funds and eligible liabilities ratio as a percentage
of the UK leverage exposure was 9.2% and as a percentage of the
average UK leverage exposure was 8.7%.
|
|
3
|
Own funds
instruments issued by subsidiaries will not be counted towards MREL
from 1 January 2022.
|
|
4
|
Includes other
AT1 capital regulatory adjustments and deductions of £80m
(December 2019: £130m), and other T2 credit risk adjustments
and deductions of £103m (December 2019:
£234m).
|
|
5
|
Fully loaded
CRR leverage exposure is calculated without applying the
transitional arrangements of the CRR as amended by CRR
II.
|
Statement of Directors’ Responsibilities
Each of
the Directors (the names of whom are set out below) confirm
that:
|
●
|
to the
best of their knowledge, the condensed consolidated financial
statements (set out on pages 54 to 58), which have been prepared in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 and international
financial reporting standards adopted pursuant to Regulation (EC)
No. 1606/2002 as it applies in the European Union, give a true and
fair view of the assets, liabilities, financial position and profit
or loss of the Company and the undertakings included in the
consolidation taken as a whole. The condensed consolidated
financial statements should be read in conjunction with the annual
financial statements as included in the Annual Report for the year
ended 31 December 2020; and
|
|
●
|
to the
best of their knowledge, the management information (set out on
pages 1 to 52) includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face. This management information should be
read in conjunction with the principal risks and uncertainties
included in the Annual Report for the year ended 31 December
2020.
|
Signed
on behalf of the Board by
|
James E Staley
|
Tushar Morzaria
|
|
Group
Chief Executive
|
Group
Finance Director
|
Barclays
PLC Board of Directors:
|
Chairman
|
Executive Directors
|
Non-executive Directors
|
|
Nigel Higgins
|
James E Staley
|
Mike Ashley
|
|
|
Tushar Morzaria
|
Tim Breedon CBE
|
|
|
|
Sir Ian Cheshire
|
|
|
|
Mohamed A. El-Erian
|
|
|
|
Dawn Fitzpatrick
|
|
|
|
Mary Francis CBE
|
|
|
|
Crawford Gillies
|
|
|
|
Brian Gilvary
|
|
|
|
Diane Schueneman
|
Condensed Consolidated Financial Statements
|
Condensed consolidated income statement
|
|
|
|
Year ended
|
Year ended
|
|
|
|
31.12.20
|
31.12.19
|
|
|
Notes1
|
£m
|
£m
|
|
Interest and similar income
|
|
11,892
|
15,456
|
|
Interest and similar expense
|
|
(3,770)
|
(6,049)
|
|
Net interest income
|
|
8,122
|
9,407
|
|
Fee and commission income
|
|
8,641
|
9,122
|
|
Fee and commission expense
|
|
(2,070)
|
(2,362)
|
|
Net fee and commission income
|
|
6,571
|
6,760
|
|
Net trading income
|
|
7,029
|
4,235
|
|
Net investment income
|
|
13
|
1,131
|
|
Other income
|
|
31
|
99
|
|
Total income
|
|
21,766
|
21,632
|
|
Credit impairment charges
|
|
(4,838)
|
(1,912)
|
|
Net operating income
|
|
16,928
|
19,720
|
|
|
|
|
|
|
Staff costs
|
|
(8,097)
|
(8,315)
|
|
Infrastructure, administration and general expenses
|
|
(5,636)
|
(5,270)
|
|
Litigation and conduct
|
|
(153)
|
(1,849)
|
|
Operating expenses
|
|
(13,886)
|
(15,434)
|
|
|
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
|
6
|
61
|
|
Profit on disposal of subsidiaries, associates and joint
ventures
|
|
17
|
10
|
|
Profit before tax
|
|
3,065
|
4,357
|
|
Tax charge
|
1
|
(604)
|
(1,003)
|
|
Profit after tax
|
|
2,461
|
3,354
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
1,526
|
2,461
|
|
Other equity instrument holders
|
|
857
|
813
|
|
Total equity holders of the parent
|
|
2,383
|
3,274
|
|
Non-controlling interests
|
2
|
78
|
80
|
|
Profit after tax
|
|
2,461
|
3,354
|
|
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
3
|
8.8
|
14.3
|
|
Diluted earnings per ordinary share
|
3
|
8.6
|
14.1
|
|
1
|
For notes to
the Financial Statements see pages 59 to 64.
|
|
Condensed consolidated statement of comprehensive
income
|
|
|
|
|
|
|
|
|
Year ended
|
Year ended
|
|
|
|
31.12.20
|
31.12.19
|
|
|
Notes1
|
£m
|
£m
|
|
Profit after tax
|
|
2,461
|
3,354
|
|
|
|
|
|
|
Other comprehensive income/(loss) that
may be recycled to profit or loss:2
|
|
|
|
Currency translation reserve
|
11
|
(473)
|
(544)
|
|
Fair value through other comprehensive income reserve relating to
debt securities
|
11
|
454
|
166
|
|
Cash flow hedging reserve
|
11
|
573
|
342
|
|
Other
|
11
|
5
|
16
|
|
Other comprehensive income/(loss) that may be recycled to profit or
loss
|
|
559
|
(20)
|
|
|
|
|
|
|
Other comprehensive income/(loss) not
recycled to profit or loss:2
|
|
|
|
Retirement benefit remeasurements
|
8
|
(111)
|
(194)
|
|
Fair value through other comprehensive income reserve relating to
equity instruments
|
11
|
(262)
|
(95)
|
|
Own credit
|
11
|
(581)
|
(252)
|
|
Other comprehensive income/(loss) not recycled to profit or
loss
|
|
(954)
|
(541)
|
|
|
|
|
|
|
Other comprehensive income/(loss) for the period
|
|
(395)
|
(561)
|
|
|
|
|
|
|
Total comprehensive income for the period
|
|
2,066
|
2,793
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
1,988
|
2,713
|
|
Non-controlling interests
|
|
78
|
80
|
|
Total comprehensive income for the period
|
|
2,066
|
2,793
|
|
1
|
For notes to
the Financial Statements see pages 59 to 64.
|
|
2
|
Reported net of
tax.
|
|
Condensed consolidated balance sheet
|
|
|
|
As at
|
As at
|
|
|
|
31.12.20
|
31.12.19
|
|
Assets
|
Notes1
|
£m
|
£m
|
|
Cash and balances at central banks
|
|
191,127
|
150,258
|
|
Cash collateral and settlement balances
|
|
101,367
|
83,256
|
|
Loans and advances at amortised cost
|
|
342,632
|
339,115
|
|
Reverse repurchase agreements and other similar secured
lending
|
|
9,031
|
3,379
|
|
Trading portfolio assets
|
|
127,950
|
114,195
|
|
Financial assets at fair value through the income
statement
|
|
175,151
|
133,086
|
|
Derivative financial instruments
|
|
302,446
|
229,236
|
|
Financial assets at fair value through other comprehensive
income
|
|
78,688
|
65,750
|
|
Investments in associates and joint ventures
|
|
781
|
721
|
|
Goodwill and intangible assets
|
|
7,948
|
8,119
|
|
Property, plant and equipment
|
|
4,036
|
4,215
|
|
Current tax assets
|
|
477
|
412
|
|
Deferred tax assets
|
1
|
3,444
|
3,290
|
|
Retirement benefit assets
|
8
|
1,814
|
2,108
|
|
Other assets
|
|
2,622
|
3,089
|
|
Total assets
|
|
1,349,514
|
1,140,229
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits at amortised cost
|
|
481,036
|
415,787
|
|
Cash collateral and settlement balances
|
|
85,423
|
67,341
|
|
Repurchase agreements and other similar secured
borrowing
|
|
14,174
|
14,517
|
|
Debt securities in issue
|
|
75,796
|
76,369
|
|
Subordinated liabilities
|
6
|
16,341
|
18,156
|
|
Trading portfolio liabilities
|
|
47,405
|
36,916
|
|
Financial liabilities designated at fair value
|
|
249,765
|
204,326
|
|
Derivative financial instruments
|
|
300,775
|
229,204
|
|
Current tax liabilities
|
|
645
|
313
|
|
Deferred tax liabilities
|
1
|
15
|
23
|
|
Retirement benefit liabilities
|
8
|
291
|
348
|
|
Other liabilities
|
|
8,662
|
8,505
|
|
Provisions
|
7
|
2,304
|
2,764
|
|
Total liabilities
|
|
1,282,632
|
1,074,569
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Called up share capital and share premium
|
9
|
4,637
|
4,594
|
|
Other reserves
|
11
|
4,461
|
4,760
|
|
Retained earnings
|
|
45,527
|
44,204
|
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
54,625
|
53,558
|
|
Other equity instruments
|
10
|
11,172
|
10,871
|
|
Total equity excluding non-controlling interests
|
|
65,797
|
64,429
|
|
Non-controlling interests
|
2
|
1,085
|
1,231
|
|
Total equity
|
|
66,882
|
65,660
|
|
|
|
|
|
|
Total liabilities and equity
|
|
1,349,514
|
1,140,229
|
|
1
|
For notes to
the Financial Statements see pages 59 to 64.
|
|
Condensed consolidated statement of changes in equity
|
|
|
Called up share capital and share
premium1
|
Other equity
instruments1
|
Other reserves1
|
Retained earnings
|
Total
|
Non-controlling
interests2
|
Total equity
|
|
Year ended 31.12.20
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Balance as at 1 January 2020
|
4,594
|
10,871
|
4,760
|
44,204
|
64,429
|
1,231
|
65,660
|
|
Profit after tax
|
-
|
857
|
-
|
1,526
|
2,383
|
78
|
2,461
|
|
Retirement benefit remeasurements
|
-
|
-
|
-
|
(111)
|
(111)
|
-
|
(111)
|
|
Other comprehensive profit after tax for the year
|
-
|
-
|
(289)
|
5
|
(284)
|
-
|
(284)
|
|
Total comprehensive income for the period
|
-
|
857
|
(289)
|
1,420
|
1,988
|
78
|
2,066
|
|
Equity settled share schemes and hedges thereof
|
43
|
-
|
-
|
303
|
346
|
-
|
346
|
|
Issue and exchange of other equity instruments
|
-
|
311
|
-
|
(55)
|
256
|
(158)
|
98
|
|
Other equity instruments coupons paid
|
-
|
(857)
|
-
|
-
|
(857)
|
-
|
(857)
|
|
Vesting of shares under employee share schemes
|
-
|
-
|
(10)
|
(347)
|
(357)
|
-
|
(357)
|
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(79)
|
(79)
|
|
Other movements
|
-
|
(10)
|
-
|
2
|
(8)
|
13
|
5
|
|
Balance as at 31 December 2020
|
4,637
|
11,172
|
4,461
|
45,527
|
65,797
|
1,085
|
66,882
|
|
|
|
|
|
|
|
|
|
|
Year ended 31.12.19
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2019
|
4,311
|
9,632
|
5,153
|
43,460
|
62,556
|
1,223
|
63,779
|
|
Profit after tax
|
-
|
813
|
-
|
2,461
|
3,274
|
80
|
3,354
|
|
Other comprehensive profit after tax for the year
|
-
|
-
|
(383)
|
(178)
|
(561)
|
-
|
(561)
|
|
Total comprehensive income for the period
|
-
|
813
|
(383)
|
2,283
|
2,713
|
80
|
2,793
|
|
Issue of new ordinary shares
|
182
|
-
|
-
|
-
|
182
|
-
|
182
|
|
Equity settled share schemes
|
101
|
-
|
-
|
478
|
579
|
-
|
579
|
|
Issue and exchange of other equity instruments
|
-
|
1,238
|
-
|
(406)
|
832
|
-
|
832
|
|
Other equity instruments coupons paid
|
-
|
(813)
|
-
|
-
|
(813)
|
-
|
(813)
|
|
Vesting of shares under employee share schemes
|
-
|
-
|
(10)
|
(404)
|
(414)
|
-
|
(414)
|
|
Dividends paid
|
-
|
-
|
-
|
(1,201)
|
(1,201)
|
(80)
|
(1,281)
|
|
Other movements
|
-
|
1
|
-
|
(6)
|
(5)
|
8
|
3
|
|
Balance as at 31 December 2019
|
4,594
|
10,871
|
4,760
|
44,204
|
64,429
|
1,231
|
65,660
|
|
1
|
Details of
share capital, other equity instruments and other reserves are
shown on pages 63 to 64.
|
|
2
|
Details of
non-controlling interests are shown on page 59.
|
|
Condensed consolidated cash flow statement
|
|
|
|
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Profit before tax
|
3,065
|
4,357
|
|
Adjustment for non-cash items
|
5,007
|
5,495
|
|
Net increase in loans and advances at amortised
cost1
|
(4,365)
|
(2,255)
|
|
Net increase in deposits at amortised cost
|
65,249
|
20,949
|
|
Net decrease in debt securities in issue
|
(6,309)
|
(9,911)
|
|
Changes in other operating assets and
liabilities2
|
(4,459)
|
(18,909)
|
|
Corporate income tax paid
|
(683)
|
(228)
|
|
Net cash from operating
activities1
|
57,505
|
(502)
|
|
Net cash from investing activities1
|
(18,376)
|
(23,965)
|
|
Net cash from financing activities
|
2,732
|
690
|
|
Effect of exchange rates on cash and cash equivalents
|
1,668
|
(3,347)
|
|
Net increase/(decrease) in cash and
cash equivalents2
|
43,529
|
(27,124)
|
|
Cash and cash equivalents at beginning of the
period2
|
166,613
|
193,737
|
|
Cash and cash equivalents at end of
the period2
|
210,142
|
166,613
|
|
1
|
Movements in
cash and cash equivalents relating to debt securities at amortised
cost were previously shown within loans and advances to banks and
customers in operating activities. These debt securities
holdings are part of the Group’s investing activity and have
been presented within investing activities in 2020. Comparatives
have been re-presented. The effect of this change was to reclassify
£11,139m decrease in cash and cash equivalents from operating
activities to investing activities in 2019.
|
|
2
|
Cash collateral
and settlement balances with banks with original maturity less than
three months were previously included in cash and cash equivalents.
They are no longer included, with the exception of balances that
the Group holds at central banks related to payment schemes.
Comparatives have been re-presented. The effect of this change
decreased cash and cash equivalents by £16,774m as at 31
December 2019.
|
Financial Statement Notes
1. Tax
The tax
charge for 2020 was £604m (2019: £1,003m), representing
an effective tax rate of 19.7% (2019: 23.0%).
Included
in the tax charge is a credit of £233m (2019: £222m) in
respect of payments made on AT1 instruments that are classified as
equity for accounting purposes.
|
|
As at
|
As at
|
|
|
31.12.20
|
31.12.19
|
|
Deferred tax assets and liabilities
|
£m
|
£m
|
|
USA
|
2,049
|
2,052
|
|
UK
|
886
|
818
|
|
Other territories
|
509
|
420
|
|
Deferred tax assets
|
3,444
|
3,290
|
|
Deferred tax liabilities
|
(15)
|
(23)
|
|
|
|
|
|
Analysis of deferred tax assets
|
|
|
|
Temporary differences
|
2,709
|
2,767
|
|
Tax losses
|
735
|
523
|
|
Deferred tax assets
|
3,444
|
3,290
|
2. Non-controlling interests
|
|
Profit attributable to
non-controlling interests
|
|
Equity attributable to
non-controlling interests
|
|
|
Year ended
|
Year ended
|
|
As at
|
As at
|
|
|
31.12.20
|
31.12.19
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
£m
|
£m
|
|
Barclays Bank PLC issued:
|
|
|
|
|
|
|
- Preference shares
|
42
|
41
|
|
529
|
529
|
|
- Upper T2 instruments
|
37
|
39
|
|
533
|
691
|
|
Other non-controlling interests
|
(1)
|
-
|
|
23
|
11
|
|
Total
|
78
|
80
|
|
1,085
|
1,231
|
3. Earnings per share
|
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Profit attributable to ordinary equity holders of the
parent
|
1,526
|
2,461
|
|
|
|
|
|
|
m
|
m
|
|
Basic weighted average number of shares in issue
|
17,300
|
17,200
|
|
Number of potential ordinary shares
|
368
|
282
|
|
Diluted weighted average number of shares
|
17,668
|
17,482
|
|
|
|
|
|
|
p
|
p
|
|
Basic earnings per ordinary share
|
8.8
|
14.3
|
|
Diluted earnings per ordinary share
|
8.6
|
14.1
|
4. Dividends on ordinary shares
In
response to a request from the PRA, and to preserve additional
capital for use in serving Barclays customers and clients through
the extraordinary challenges presented by the COVID-19 pandemic,
the Board agreed to cancel the 6.0p per ordinary share full year
2019 dividend.
The
Directors have approved a total dividend in respect of 2020 of 1.0p
per ordinary share of 25p each. The full year dividend for
2020 of 1.0p per ordinary share will be paid on 1 April 2021 to
shareholders on the Share Register on 26 February 2021. On 31
December 2020, there were 17,359m ordinary shares in issue. The
financial statements for the year ended 31 December 2020 do not
reflect this dividend, which will be accounted for in
shareholders’ equity as an appropriation of retained profits
in the year ending 31 December 2021. Dividends are funded out of
distributable reserves.
|
|
Year ended 31.12.20
|
Year ended 31.12.19
|
|
|
Per share
|
Total
|
Per share
|
Total
|
|
Dividends paid during the year
|
p
|
£m
|
p
|
£m
|
|
Full year dividend paid during year
|
-
|
-
|
4.0
|
684
|
|
Half year dividend paid during year
|
-
|
-
|
3.0
|
517
|
|
Total dividend
|
-
|
-
|
7.0
|
1,201
|
5. Fair value of financial instruments
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 31.12.20
|
£m
|
£m
|
£m
|
|
£m
|
|
Trading portfolio assets
|
60,671
|
65,416
|
1,863
|
|
127,950
|
|
Financial assets at fair value through the income
statement
|
4,503
|
162,142
|
8,506
|
|
175,151
|
|
Derivative financial instruments
|
9,155
|
288,822
|
4,469
|
|
302,446
|
|
Financial assets at fair value through other comprehensive
income
|
19,792
|
58,743
|
153
|
|
78,688
|
|
Investment property
|
-
|
-
|
10
|
|
10
|
|
Total assets
|
94,121
|
575,123
|
15,001
|
|
684,245
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(24,391)
|
(22,986)
|
(28)
|
|
(47,405)
|
|
Financial liabilities designated at fair value
|
(159)
|
(249,251)
|
(355)
|
|
(249,765)
|
|
Derivative financial instruments
|
(8,762)
|
(285,774)
|
(6,239)
|
|
(300,775)
|
|
Total liabilities
|
(33,312)
|
(558,011)
|
(6,622)
|
|
(597,945)
|
|
|
|
|
|
|
|
|
As at 31.12.19
|
|
|
|
|
|
|
Trading portfolio assets
|
60,352
|
51,579
|
2,264
|
|
114,195
|
|
Financial assets at fair value through the income
statement
|
10,445
|
114,141
|
8,500
|
|
133,086
|
|
Derivative financial instruments
|
5,439
|
220,642
|
3,155
|
|
229,236
|
|
Financial assets at fair value through other comprehensive
income
|
18,755
|
46,566
|
429
|
|
65,750
|
|
Investment property
|
-
|
-
|
13
|
|
13
|
|
Total assets
|
94,991
|
432,928
|
14,361
|
|
542,280
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(20,977)
|
(15,939)
|
-
|
|
(36,916)
|
|
Financial liabilities designated at fair value
|
(82)
|
(203,882)
|
(362)
|
|
(204,326)
|
|
Derivative financial instruments
|
(5,305)
|
(219,910)
|
(3,989)
|
|
(229,204)
|
|
Total liabilities
|
(26,364)
|
(439,731)
|
(4,351)
|
|
(470,446)
|
|
6. Subordinated liabilities
|
|
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Opening balance as at 1 January
|
18,156
|
20,559
|
|
Issuances
|
1,438
|
1,352
|
|
Redemptions
|
(3,464)
|
(3,248)
|
|
Other
|
211
|
(507)
|
|
Closing balance
|
16,341
|
18,156
|
Issuances
of £1,438m comprise £782m USD 3.564% Fixed Rate Resetting
Subordinated Callable Notes and £500m 3.75% Fixed Rate
Resetting Subordinated Callable Notes, both issued externally by
Barclays PLC and £156m USD Floating Rate Notes issued
externally by a Barclays subsidiary.
Redemptions
of £3,464m comprise a £1,126m partial redemption of USD
7.625% Contingent Capital Notes issued externally by Barclays Bank
PLC and full redemptions of £1,124m EUR 2.625% Fixed Rate
Subordinated Callable Notes issued externally by Barclays PLC,
£842m USD 5.14% Lower Tier 2 Notes issued externally by
Barclays Bank PLC and £342m USD Floating Rate Notes and
£30m USD Fixed Rate Notes, both issued externally by Barclays
subsidiaries.
Other
movements predominantly include foreign exchange movements and fair
value hedge adjustments.
|
7. Provisions
|
|
|
|
|
As at
|
As at
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
PPI redress
|
129
|
1,155
|
|
Other customer redress
|
368
|
420
|
|
Legal, competition and regulatory matters
|
268
|
376
|
|
Redundancy and restructuring
|
158
|
143
|
|
Undrawn contractually committed facilities and
guarantees
|
1,064
|
322
|
|
Onerous contracts
|
28
|
42
|
|
Sundry provisions
|
289
|
306
|
|
Total
|
2,304
|
2,764
|
PPI redress
As at
31 December 2020 Barclays had recognised cumulative provisions
totalling £10.9bn including a £55m release in Q4 2020 on
resolution of the majority of the items received in Q3 2019
(December 2019: £11bn), against the cost of PPI redress and
associated processing costs. Utilisation of the cumulative
provisions to date is £10.8bn (December 2019: £9.8bn),
leaving a residual provision of £0.1bn (December 2019:
£1.2bn) to be utilised in 2021. This represents Barclays best
estimate as at 31 December 2020 based on information
available.
8. Retirement benefits
As at
31 December 2020,
the Group’s IAS 19 pension surplus across all schemes was
£1.5bn (December 2019: £1.8bn). The UK Retirement Fund
(UKRF), which is the Group’s main scheme, had an IAS 19
pension surplus of £1.8bn (December 2019: £2.1bn). The
movement for the UKRF was driven by a net decrease in the discount
rate and changes to pension increase assumptions, offset partially
by higher than assumed asset returns.
UKRF funding valuations
The latest annual update as at 30 September 2020 showed the funding
deficit had improved to £0.9bn from the £2.3bn shown at
the 30 September 2019 triennial valuation. The improvement was
mainly due to £1.0bn of deficit reduction contributions paid
over the year. The deficit recovery plan agreed at the last
triennial valuation requires deficit reduction contributions from
Barclays Bank PLC of £700m in 2021, £294m in 2022 and
£286m in 2023. The deficit reduction contributions are in
addition to the regular contributions to meet the Group’s
share of the cost of benefits accruing over each year.
The
next triennial actuarial valuation of the UKRF is due to be
completed in 2023 with an effective date of 30 September
2022.
On 12 June 2020, Barclays Bank PLC paid the £500m deficit
reduction contribution agreed for 2020 and at the same time the
UKRF subscribed for non-transferrable listed senior fixed rate
notes for £750m, backed by UK gilts (the Senior Notes). These
Senior Notes entitle the UKRF to semi-annual coupon payments for
five years, and full repayment in cash in three equal tranches in
2023, 2024, and at final maturity in 2025. As a result of the
investment in Senior Notes, the regulatory capital impact of the
£500m deficit reduction contribution paid on 12 June 2020
takes effect in 2023, 2024 and 2025 on maturity of the notes. The
£250m additional investment by the UKRF in the Senior Notes
has a positive capital impact in 2020 which is reduced equally in
2023, 2024 and 2025 on the maturity of the notes.
On 11
December 2020, the UKRF entered into a £5bn longevity swap to
hedge around a quarter of current pensioner liabilities against
unexpected increases in life expectancy. The swap forms part of the
UKRF’s investment portfolio and provides income in the event
that pensions are paid out for longer than expected. The UKRF
Trustee established a Guernsey based captive insurer (Barclays UKRF
No.1 IC Limited) to act as an insurance intermediary between the
UKRF and swap provider. The swap is not included directly within
the balance sheet of Barclays PLC as it is an asset of the UKRF.
At 31 December 2020, the swap is
valued at nil fair value as it is considered to remain at fair
market value for both parties over the very limited period from 11
December 2020 to 31 December 2020.
9. Called up share capital
Called
up share capital comprised 17,359m (December 2019: 17,322m)
ordinary shares of 25p each. The increase was mainly due to the
issuance of shares under employee share schemes.
|
|
Ordinary share capital
|
Share premium
|
Total share capital and share premium
|
|
Year ended 31.12.20
|
£m
|
£m
|
£m
|
|
Opening balance as at 1 January
|
4,331
|
263
|
4,594
|
|
Movement
|
9
|
34
|
43
|
|
Closing balance
|
4,340
|
297
|
4,637
|
|
10. Other equity instruments
|
|
|
Year ended
|
Year ended
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Opening balance as at 1 January
|
10,871
|
9,632
|
|
Issuances
|
1,142
|
3,500
|
|
Redemptions
|
(831)
|
(2,262)
|
|
Other
|
(10)
|
1
|
|
Closing balance
|
11,172
|
10,871
|
Other equity instruments of £11,172m (December 2019: £10,871m) consists of AT1 securities issued by
Barclays PLC.
The AT1 securities are perpetual securities with no fixed maturity
and are structured to qualify as AT1 instruments under prevailing
capital rules applicable as at the relevant issue date. AT1
securities are undated and are redeemable, at the option of
Barclays PLC, in whole on (i) the initial call date, or on any
fifth anniversary after the initial call date or (ii) any day
falling in a named period ending on the initial reset date, or on
any fifth anniversary after the initial reset date. In addition,
the AT1 securities are redeemable, at the option of Barclays PLC,
in whole in the event of certain changes in the tax or regulatory
treatment of the securities. Any redemptions require the prior
consent of the PRA.
All
Barclays PLC AT1 securities will be converted into ordinary shares
of Barclays PLC, at a pre-determined price, should the fully loaded
CET1 ratio of the Group fall below 7%.
|
11. Other reserves
|
|
|
|
|
As at
|
As at
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Currency translation reserve
|
2,871
|
3,344
|
|
Fair value through other comprehensive income reserve
|
5
|
(187)
|
|
Cash flow hedging reserve
|
1,575
|
1,002
|
|
Own credit reserve
|
(954)
|
(373)
|
|
Other reserves and treasury shares
|
964
|
974
|
|
Total
|
4,461
|
4,760
|
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 2020, there was a credit balance of £2,871m
(December 2019: £3,344m credit) in the currency translation
reserve. The £473m debit movement principally reflects the
weakening of period end USD exchange rate against GBP.
Fair value through other comprehensive income reserve
The
fair value through other comprehensive income reserve represents
the unrealised change in the fair value through other comprehensive
income investments since initial recognition.
As at
31 December 2020, there was a credit balance of £5m (December
2019: £187m debit) in the fair value through other
comprehensive income reserve. The gain of £192m is principally
driven by a gain of £902m from the increase in fair value of
bonds due to decreasing bond yields. This is partially offset by
£295m of net gains transferred to the income statement, loss
of £262m due to a decrease in the Absa Group Limited share
price and a tax charge of £155m.
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 2020, there was a credit balance of £1,575m
(December 2019: £1,002m credit) in the cash flow hedging
reserve. The increase of £573m principally reflects a
£1,314m increase in the fair value of interest rate swaps held
for hedging purposes as major interest rate forward curves
decreased. This is partially offset by £510m of gains
transferred to the income statement and a tax charge of
£216m.
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 2020, there was a debit balance of £954m (December
2019: £373m debit) in the own credit reserve. The movement of
£581m principally reflects a loss from the tightening of
Barclays’ funding spreads. This is partially offset by other
activity and a tax credit of £229m.
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 2020, there was a credit balance of
£964m (December 2019:
£974m credit) in other
reserves and treasury shares. The decrease of £10m is due to
an increase in treasury shares 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
|
Loans
and advances at amortised cost divided by deposits at amortised
cost. The components of the calculation have been included on page
43.
|
|
Period
end allocated tangible equity
|
Allocated tangible
equity is calculated as 13.0% (2019: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office allocated tangible equity
represents the difference between the Group’s tangible
shareholders’ equity and the amounts allocated to
businesses.
|
|
Average
tangible shareholders’ equity
|
Calculated as the
average of the previous month’s period end tangible equity
and the current month’s period end tangible equity. The
average tangible shareholders’ equity for the period is the
average of the monthly averages within that period.
|
|
Average
allocated tangible equity
|
Calculated as the
average of the previous month’s period end allocated tangible
equity and the current month’s period end allocated tangible
equity. The average allocated tangible equity for the period is the
average of the monthly averages within that period.
|
|
Return
on average tangible shareholders’ equity
|
Statutory profit
after tax attributable to ordinary equity holders of the parent, as
a proportion of average shareholders’ equity excluding
non-controlling interests and other equity instruments adjusted for
the deduction of intangible assets and goodwill. The components of
the calculation have been included on page 66.
|
|
Return
on average allocated tangible equity
|
Statutory profit
after tax attributable to ordinary equity holders of the parent, as
a proportion of average allocated tangible equity. The components
of the calculation have been included on page 66.
|
|
Cost:
income ratio
|
Total
operating expenses divided by total income.
|
|
Loan
loss rate
|
Quoted
in basis points and represents total impairment charges divided by
gross loans and advances held at amortised cost at the balance
sheet date. The components of the calculation have been included on
page 27.
|
|
Net
interest margin
|
Net
interest income divided by the sum of average customer assets. The
components of the calculation have been included on page
23.
|
|
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
74.
|
|
Performance
measures excluding litigation and conduct
|
Calculated by
excluding litigation and conduct charges from performance measures.
The components of the calculations have been included on pages 67
to 74.
|
|
Pre-provision
profits
|
Calculated by
excluding credit impairment charges from profit before tax. The
components of the calculation have been included on pages 67 to
69.
|
|
Pre-provision
profits excluding litigation and conduct
|
Calculated by
excluding credit impairment charges, and litigation and conduct
charges from profit before tax. The components of the calculation
have been included on pages 67 to 69.
|
Returns
Return
on average tangible equity is calculated as profit after tax
attributable to ordinary equity holders of the parent as a
proportion of average tangible equity, excluding non-controlling
and other equity interests for businesses. Allocated tangible
equity has been calculated as 13.0% (2019: 13.0%) of RWAs for each
business, adjusted for capital deductions, excluding goodwill and
intangible assets, reflecting the assumptions the Group uses for
capital planning purposes. Head Office average allocated tangible
equity represents the difference between the Group’s average
tangible shareholders’ equity and the amounts allocated to
businesses.
|
|
Profit/(loss) attributable to ordinary equity holders of the
parent
|
|
Average tangible equity
|
|
Return on average tangible equity
|
|
For the year ended 31.12.20
|
£m
|
|
£bn
|
|
%
|
|
Barclays UK
|
325
|
|
10.1
|
|
3.2
|
|
Corporate and Investment Bank
|
2,554
|
|
27.0
|
|
9.5
|
|
Consumer, Cards and Payments
|
(334)
|
|
4.5
|
|
(7.5)
|
|
Barclays International
|
2,220
|
|
31.5
|
|
7.1
|
|
Head Office
|
(1,019)
|
|
6.7
|
|
n/m
|
|
Barclays Group
|
1,526
|
|
48.3
|
|
3.2
|
|
|
|
|
|
|
|
|
For the year ended 31.12.19
|
|
|
|
|
|
|
Barclays UK
|
281
|
|
10.3
|
|
2.7
|
|
Corporate and Investment Bank
|
1,980
|
|
25.9
|
|
7.6
|
|
Consumer, Cards and Payments
|
836
|
|
5.3
|
|
15.8
|
|
Barclays International
|
2,816
|
|
31.2
|
|
9.0
|
|
Head Office
|
(636)
|
|
5.1
|
|
n/m
|
|
Barclays Group
|
2,461
|
|
46.6
|
|
5.3
|
|
Performance measures excluding litigation and conduct
|
|
|
|
|
|
|
|
|
|
|
Year ended 31.12.20
|
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(4,352)
|
(6,919)
|
(2,134)
|
(9,053)
|
(481)
|
(13,886)
|
|
Impact of litigation and conduct
|
32
|
4
|
44
|
48
|
73
|
153
|
|
Operating expenses
|
(4,320)
|
(6,915)
|
(2,090)
|
(9,005)
|
(408)
|
(13,733)
|
|
|
|
|
|
|
|
|
|
Total income
|
6,347
|
12,476
|
3,445
|
15,921
|
(502)
|
21,766
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
68%
|
55%
|
61%
|
57%
|
n/m
|
63%
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
546
|
4,004
|
(388)
|
3,616
|
(1,097)
|
3,065
|
|
Impact of litigation and conduct
|
32
|
4
|
44
|
48
|
73
|
153
|
|
Profit/(loss) before tax excluding litigation and
conduct
|
578
|
4,008
|
(344)
|
3,664
|
(1,024)
|
3,218
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
325
|
2,554
|
(334)
|
2,220
|
(1,019)
|
1,526
|
|
Post-tax impact of litigation and conduct
|
18
|
2
|
36
|
38
|
56
|
112
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
343
|
2,556
|
(298)
|
2,258
|
(963)
|
1,638
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
13.7
|
27.0
|
5.1
|
32.1
|
10.6
|
56.4
|
|
Average goodwill and intangibles
|
(3.6)
|
-
|
(0.6)
|
(0.6)
|
(3.9)
|
(8.1)
|
|
Average tangible shareholders' equity
|
10.1
|
27.0
|
4.5
|
31.5
|
6.7
|
48.3
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
3.4%
|
9.5%
|
(6.7%)
|
7.2%
|
n/m
|
3.4%
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
17,300
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
|
|
|
|
|
9.5p
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
£m
|
|
Profit before tax
|
|
|
|
|
|
3,065
|
|
Impact of credit impairment charges
|
|
|
|
|
|
4,838
|
|
Profit before tax excluding credit impairment charges
|
|
|
|
|
|
7,903
|
|
Impact of litigation and conduct
|
|
|
|
|
|
153
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
8,056
|
|
|
Year ended 31.12.19
|
|
|
Barclays UK
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Barclays International
|
Head Office
|
Barclays Group
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(5,619)
|
(7,147)
|
(2,306)
|
(9,453)
|
(362)
|
(15,434)
|
|
Impact of litigation and conduct
|
1,582
|
109
|
7
|
116
|
151
|
1,849
|
|
Operating expenses
|
(4,037)
|
(7,038)
|
(2,299)
|
(9,337)
|
(211)
|
(13,585)
|
|
|
|
|
|
|
|
|
|
Total income
|
7,353
|
10,231
|
4,444
|
14,675
|
(396)
|
21,632
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
55%
|
69%
|
52%
|
64%
|
n/m
|
63%
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
1,022
|
2,955
|
1,163
|
4,118
|
(783)
|
4,357
|
|
Impact of litigation and conduct
|
1,582
|
109
|
7
|
116
|
151
|
1,849
|
|
Profit/(loss) before tax excluding litigation and
conduct
|
2,604
|
3,064
|
1,170
|
4,234
|
(632)
|
6,206
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
281
|
1,980
|
836
|
2,816
|
(636)
|
2,461
|
|
Post-tax impact of litigation and conduct
|
1,532
|
84
|
6
|
90
|
111
|
1,733
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
1,813
|
2,064
|
842
|
2,906
|
(525)
|
4,194
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
13.9
|
25.9
|
6.3
|
32.2
|
8.5
|
54.6
|
|
Average goodwill and intangibles
|
(3.6)
|
-
|
(1.0)
|
(1.0)
|
(3.4)
|
(8.0)
|
|
Average tangible shareholders' equity
|
10.3
|
25.9
|
5.3
|
31.2
|
5.1
|
46.6
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
17.5%
|
8.0%
|
15.9%
|
9.3%
|
n/m
|
9.0%
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
|
|
|
|
|
17,200
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
|
|
|
|
|
24.4p
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
£m
|
|
Profit before tax
|
|
|
|
|
|
4,357
|
|
Impact of credit impairment charges
|
|
|
|
|
|
1,912
|
|
Profit before tax excluding credit impairment charges
|
|
|
|
|
|
6,269
|
|
Impact of litigation and conduct
|
|
|
|
|
|
1,849
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
|
|
|
|
|
8,118
|
|
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(3,826)
|
(3,467)
|
(3,330)
|
(3,263)
|
|
(3,701)
|
(4,861)
|
(3,554)
|
(3,318)
|
|
Impact of litigation and conduct
|
47
|
76
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
Operating expenses
|
(3,779)
|
(3,391)
|
(3,310)
|
(3,253)
|
|
(3,534)
|
(3,293)
|
(3,501)
|
(3,257)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
4,941
|
5,204
|
5,338
|
6,283
|
|
5,301
|
5,541
|
5,538
|
5,252
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
76%
|
65%
|
62%
|
52%
|
|
67%
|
59%
|
63%
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
646
|
1,147
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
Impact of litigation and conduct
|
47
|
76
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
Profit before tax excluding litigation and conduct
|
693
|
1,223
|
379
|
923
|
|
1,264
|
1,814
|
1,584
|
1,544
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
220
|
611
|
90
|
605
|
|
681
|
(292)
|
1,034
|
1,038
|
|
Post-tax impact of litigation and conduct
|
40
|
57
|
16
|
(1)
|
|
122
|
1,525
|
40
|
46
|
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
260
|
668
|
106
|
604
|
|
803
|
1,233
|
1,074
|
1,084
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average shareholders' equity
|
55.7
|
56.4
|
58.4
|
55.2
|
|
54.5
|
56.4
|
54.0
|
53.2
|
|
Average goodwill and intangibles
|
(8.1)
|
(8.1)
|
(8.2)
|
(8.2)
|
|
(8.1)
|
(8.0)
|
(7.8)
|
(8.0)
|
|
Average tangible shareholders' equity
|
47.6
|
48.3
|
50.2
|
47.0
|
|
46.4
|
48.4
|
46.2
|
45.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity excluding
litigation and conduct
|
2.2%
|
5.5%
|
0.8%
|
5.1%
|
|
6.9%
|
10.2%
|
9.3%
|
9.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
17,300
|
17,298
|
17,294
|
17,278
|
|
17,200
|
17,192
|
17,178
|
17,111
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per ordinary share excluding litigation and
conduct
|
1.5p
|
3.9p
|
0.6p
|
3.5p
|
|
4.7p
|
7.2p
|
6.3p
|
6.3p
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision profits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Profit before tax
|
646
|
1,147
|
359
|
913
|
|
1,097
|
246
|
1,531
|
1,483
|
|
Impact of credit impairment charges
|
492
|
608
|
1,623
|
2,115
|
|
523
|
461
|
480
|
448
|
|
Profit before tax excluding credit impairment charges
|
1,138
|
1,755
|
1,982
|
3,028
|
|
1,620
|
707
|
2,011
|
1,931
|
|
Impact of litigation and conduct
|
47
|
76
|
20
|
10
|
|
167
|
1,568
|
53
|
61
|
|
Profit before tax excluding credit impairment charges and
litigation and conduct
|
1,185
|
1,831
|
2,002
|
3,038
|
|
1,787
|
2,275
|
2,064
|
1,992
|
|
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(1,180)
|
(1,120)
|
(1,024)
|
(1,028)
|
|
(1,122)
|
(2,432)
|
(1,063)
|
(1,002)
|
|
Impact of litigation and conduct
|
(4)
|
25
|
6
|
5
|
|
58
|
1,480
|
41
|
3
|
|
Operating expenses
|
(1,184)
|
(1,095)
|
(1,018)
|
(1,023)
|
|
(1,064)
|
(952)
|
(1,022)
|
(999)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
1,626
|
1,550
|
1,467
|
1,704
|
|
1,959
|
1,846
|
1,771
|
1,777
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
73%
|
71%
|
69%
|
60%
|
|
54%
|
52%
|
58%
|
56%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
282
|
196
|
(127)
|
195
|
|
647
|
(687)
|
477
|
585
|
|
Impact of litigation and conduct
|
(4)
|
25
|
6
|
5
|
|
58
|
1,480
|
41
|
3
|
|
Profit/(loss) before tax excluding litigation and
conduct
|
278
|
221
|
(121)
|
200
|
|
705
|
793
|
518
|
588
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
160
|
113
|
(123)
|
175
|
|
438
|
(907)
|
328
|
422
|
|
Post-tax impact of litigation and conduct
|
(7)
|
17
|
5
|
3
|
|
43
|
1,457
|
30
|
2
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
153
|
130
|
(118)
|
178
|
|
481
|
550
|
358
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
13.4
|
13.7
|
13.9
|
13.7
|
|
13.8
|
13.9
|
13.8
|
13.9
|
|
Average goodwill and intangibles
|
(3.6)
|
(3.6)
|
(3.6)
|
(3.6)
|
|
(3.5)
|
(3.5)
|
(3.5)
|
(3.5)
|
|
Average allocated tangible equity
|
9.8
|
10.1
|
10.3
|
10.1
|
|
10.3
|
10.4
|
10.3
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
6.2%
|
5.2%
|
(4.6%)
|
7.0%
|
|
18.7%
|
21.2%
|
13.9%
|
16.4%
|
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(2,382)
|
(2,255)
|
(2,197)
|
(2,219)
|
|
(2,500)
|
(2,282)
|
(2,446)
|
(2,225)
|
|
Impact of litigation and conduct
|
9
|
28
|
11
|
-
|
|
86
|
-
|
11
|
19
|
|
Operating expenses
|
(2,373)
|
(2,227)
|
(2,186)
|
(2,219)
|
|
(2,414)
|
(2,282)
|
(2,435)
|
(2,206)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
3,486
|
3,781
|
4,010
|
4,644
|
|
3,452
|
3,750
|
3,903
|
3,570
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
68%
|
59%
|
55%
|
48%
|
|
70%
|
61%
|
62%
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
822
|
1,165
|
807
|
822
|
|
640
|
1,137
|
1,223
|
1,118
|
|
Impact of litigation and conduct
|
9
|
28
|
11
|
-
|
|
86
|
-
|
11
|
19
|
|
Profit before tax excluding litigation and conduct
|
831
|
1,193
|
818
|
822
|
|
726
|
1,137
|
1,234
|
1,137
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit
|
441
|
782
|
468
|
529
|
|
397
|
799
|
832
|
788
|
|
Post-tax impact of litigation and conduct
|
9
|
21
|
8
|
-
|
|
64
|
2
|
8
|
16
|
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
450
|
803
|
476
|
529
|
|
461
|
801
|
840
|
804
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
31.1
|
31.2
|
34.2
|
31.9
|
|
31.9
|
33.3
|
32.1
|
31.6
|
|
Average goodwill and intangibles
|
(0.6)
|
(0.6)
|
(0.7)
|
(0.7)
|
|
(1.0)
|
(1.1)
|
(1.0)
|
(1.1)
|
|
Average allocated tangible equity
|
30.5
|
30.6
|
33.5
|
31.2
|
|
30.9
|
32.2
|
31.1
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
5.9%
|
10.5%
|
5.7%
|
6.8%
|
|
6.0%
|
10.0%
|
10.8%
|
10.6%
|
|
Corporate and Investment Bank
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(1,827)
|
(1,719)
|
(1,683)
|
(1,690)
|
|
(1,926)
|
(1,716)
|
(1,867)
|
(1,638)
|
|
Impact of litigation and conduct
|
(2)
|
3
|
3
|
-
|
|
79
|
4
|
7
|
19
|
|
Operating expenses
|
(1,829)
|
(1,716)
|
(1,680)
|
(1,690)
|
|
(1,847)
|
(1,712)
|
(1,860)
|
(1,619)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
2,638
|
2,905
|
3,316
|
3,617
|
|
2,314
|
2,617
|
2,795
|
2,505
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
69%
|
59%
|
51%
|
47%
|
|
80%
|
65%
|
67%
|
65%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
761
|
1,000
|
1,040
|
1,203
|
|
359
|
882
|
887
|
827
|
|
Impact of litigation and conduct
|
(2)
|
3
|
3
|
-
|
|
79
|
4
|
7
|
19
|
|
Profit before tax excluding litigation and conduct
|
759
|
1,003
|
1,043
|
1,203
|
|
438
|
886
|
894
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit
|
413
|
627
|
694
|
820
|
|
193
|
609
|
596
|
582
|
|
Post-tax impact of litigation and conduct
|
(2)
|
2
|
2
|
-
|
|
58
|
5
|
5
|
16
|
|
Profit attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
411
|
629
|
696
|
820
|
|
251
|
614
|
601
|
598
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
26.3
|
26.4
|
29.1
|
26.2
|
|
25.9
|
26.9
|
25.8
|
25.2
|
|
Average goodwill and intangibles
|
-
|
-
|
(0.1)
|
-
|
|
(0.1)
|
-
|
-
|
(0.1)
|
|
Average allocated tangible equity
|
26.3
|
26.4
|
29.0
|
26.2
|
|
25.8
|
26.9
|
25.8
|
25.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
6.2%
|
9.5%
|
9.6%
|
12.5%
|
|
3.9%
|
9.2%
|
9.3%
|
9.5%
|
|
Consumer, Cards and Payments
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Cost: income ratio
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Total operating expenses
|
(555)
|
(536)
|
(514)
|
(529)
|
|
(574)
|
(566)
|
(579)
|
(587)
|
|
Impact of litigation and conduct
|
11
|
25
|
8
|
-
|
|
7
|
(4)
|
4
|
-
|
|
Operating expenses
|
(544)
|
(511)
|
(506)
|
(529)
|
|
(567)
|
(570)
|
(575)
|
(587)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
848
|
876
|
694
|
1,027
|
|
1,138
|
1,133
|
1,108
|
1,065
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: income ratio excluding litigation and conduct
|
64%
|
58%
|
73%
|
52%
|
|
50%
|
50%
|
52%
|
55%
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
61
|
165
|
(233)
|
(381)
|
|
281
|
255
|
336
|
291
|
|
Impact of litigation and conduct
|
11
|
25
|
8
|
-
|
|
7
|
(4)
|
4
|
-
|
|
Profit/(loss) before tax excluding litigation and
conduct
|
72
|
190
|
(225)
|
(381)
|
|
288
|
251
|
340
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable profit/(loss)
|
28
|
155
|
(226)
|
(291)
|
|
204
|
190
|
236
|
206
|
|
Post-tax impact of litigation and conduct
|
11
|
19
|
6
|
-
|
|
6
|
(3)
|
3
|
-
|
|
Profit/(loss) attributable to ordinary equity holders of the parent
excluding litigation and conduct
|
39
|
174
|
(220)
|
(291)
|
|
210
|
187
|
239
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
|
Average allocated equity
|
4.8
|
4.8
|
5.1
|
5.7
|
|
6.0
|
6.4
|
6.3
|
6.4
|
|
Average goodwill and intangibles
|
(0.6)
|
(0.6)
|
(0.6)
|
(0.7)
|
|
(0.9)
|
(1.1)
|
(1.0)
|
(1.0)
|
|
Average allocated tangible equity
|
4.2
|
4.2
|
4.5
|
5.0
|
|
5.1
|
5.3
|
5.3
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity excluding litigation
and conduct
|
3.8%
|
16.5%
|
(19.6%)
|
(23.5%)
|
|
16.3%
|
14.0%
|
18.0%
|
15.4%
|
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
|
Q420
|
Q320
|
Q220
|
Q120
|
|
Q419
|
Q319
|
Q219
|
Q119
|
|
Profit before tax
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
Loss before tax
|
(458)
|
(214)
|
(321)
|
(104)
|
|
(190)
|
(204)
|
(169)
|
(220)
|
|
Impact of litigation and conduct
|
42
|
23
|
3
|
5
|
|
23
|
88
|
1
|
39
|
|
Loss before tax excluding litigation and conduct
|
(416)
|
(191)
|
(318)
|
(99)
|
|
(167)
|
(116)
|
(168)
|
(181)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to ordinary equity holders of the
parent
|
|
|
|
|
|
|
|
|
|
|
Attributable loss
|
(381)
|
(284)
|
(255)
|
(99)
|
|
(154)
|
(184)
|
(126)
|
(172)
|
|
Post-tax impact of litigation and conduct
|
38
|
19
|
3
|
(4)
|
|
15
|
66
|
2
|
28
|
|
Attributable loss excluding litigation and conduct
|
(343)
|
(265)
|
(252)
|
(103)
|
|
(139)
|
(118)
|
(124)
|
(144)
|
|
Tangible net asset value per share
|
As at
|
As at
|
|
|
31.12.20
|
31.12.19
|
|
|
£m
|
£m
|
|
Total equity excluding non-controlling interests
|
65,797
|
64,429
|
|
Other equity instruments
|
(11,172)
|
(10,871)
|
|
Goodwill and intangibles
|
(7,948)
|
(8,119)
|
|
Tangible shareholders' equity attributable to ordinary shareholders
of the parent
|
46,677
|
45,439
|
|
|
|
|
|
|
m
|
m
|
|
Shares in issue
|
17,359
|
17,322
|
|
|
|
|
|
|
p
|
p
|
|
Tangible net asset value per share
|
269
|
262
|
Shareholder Information
|
|
|
|
|
|
Results timetable1
|
|
Date
|
|
|
Ex-dividend date
|
|
25 February 2021
|
|
|
Dividend record date
|
|
26 February 2021
|
|
|
Cut off time of 5:00pm (UK time) for the receipt of DRIP
Application Form Mandate Forms or Revocation
|
12 March 2021
|
|
|
Dividend payment date
|
|
1 April 2021
|
|
|
Q1 2021 Results Announcement
|
|
30 April 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays has decided to cease to offer the scrip dividend programme
and will no longer offer a scrip alternative for dividends. For
those shareholders who wish to elect to use their cash dividends to
purchase additional ordinary shares in the market, rather than
receive a cash payment, Barclays has arranged for its registrar,
Equiniti, to provide and administer a dividend re-investment plan
(DRIP). Further details regarding the DRIP can be found at
www.barclays.com and www.shareview.co.uk/info/drip
|
|
|
|
For qualifying US and Canadian resident ADR holders, the 2020 full
year dividend of 1.0p per ordinary share becomes 4.0p per ADS
(representing four shares). The ex-dividend, dividend record and
dividend payment dates for ADR holders are shown
above.
|
|
|
|
|
|
|
|
Year ended
|
Year ended
|
|
|
Exchange rates2
|
31.12.20
|
31.12.19
|
% Change3
|
|
Period end - USD/GBP
|
1.37
|
1.33
|
3%
|
|
Average - USD/GBP
|
1.28
|
1.28
|
-
|
|
3 month average - USD/GBP
|
1.32
|
1.29
|
2%
|
|
Period end - EUR/GBP
|
1.12
|
1.18
|
(5%)
|
|
Average - EUR/GBP
|
1.13
|
1.14
|
(1%)
|
|
3 month average - EUR/GBP
|
1.11
|
1.16
|
(4%)
|
|
|
|
|
|
|
Share price data
|
|
|
|
|
Barclays PLC (p)
|
146.68
|
179.64
|
|
|
Barclays PLC number of shares (m)
|
17,359
|
17,322
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information please contact
|
|
|
|
|
|
|
|
|
|
Investor relations
|
Media relations
|
|
Chris Manners +44 (0) 20 7773 2136
|
Tom Hoskin +44 (0) 20 7116 4755
|
|
|
|
|
|
|
|
|
|
|
|
More information on Barclays can be found on our
website: home.barclays.
|
|
|
|
|
|
|
|
|
|
Registered office
|
|
|
|
|
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20
7116 1000. Company number: 48839.
|
|
|
|
|
|
|
Registrar
|
|
|
|
|
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99
6DA, United Kingdom.
|
|
Tel: 0371 384 20554
from the UK or +44 121 415 7004 from
overseas.
|
|
|
|
|
|
|
American Depositary Receipts (ADRs)
|
|
|
|
|
Shareowner Services
|
|
StockTransfer@equiniti.com
|
|
Tel: +1 800 990 1135 (toll free in US and Canada), +1 651 453 2128
(outside the US and Canada)
|
|
Shareowner Services, PO Box 64504, St Paul, MN 55164-0504,
USA.
|
|
|
|
|
|
|
Delivery of ADR certificates and overnight mail
|
|
|
|
|
Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota
Heights, MN 55120, USA.
|
|
|
|
Qualifying US and Canadian resident ADR holders should contact
Shareowner Services for further details regarding the
DRIP
|
|
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.
|