Barclays PLC
2022 Results Announcement
31 December 2022
Results Announcement
|
Page
|
|
|
Notes
|
1
|
|
|
Performance Highlights
|
2
|
|
|
Group Finance Director’s Review
|
6
|
|
|
Results by Business
|
|
|
|
Barclays UK
|
8
|
|
|
Barclays International
|
11
|
|
|
Head Office
|
16
|
|
|
Quarterly Results Summary
|
17
|
|
|
Quarterly Results by Business
|
18
|
|
|
Performance Management
|
|
|
|
Margins and Balances
|
24
|
|
|
Remuneration
|
26
|
|
|
Risk Management
|
|
|
|
Risk Management and Principal Risks
|
28
|
|
|
Credit Risk
|
29
|
|
|
Market Risk
|
49
|
|
|
Treasury and Capital Risk
|
50
|
|
|
Statement of Directors' Responsibilities
|
63
|
|
|
Condensed Consolidated Financial Statements
|
64
|
|
|
Financial Statement Notes
|
69
|
|
|
Appendix: Non-IFRS Performance Measures
|
77
|
|
|
Shareholder Information
|
84
|
BARCLAYS PLC, 1
CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44
(0) 20 7116 1000. COMPANY NO. 48839.
Notes
The
terms Barclays and Group refer to Barclays PLC together with its
subsidiaries. Unless otherwise stated, the income statement
analysis compares the year ended 31 December 2022 to the
corresponding 12 months of 2021 and the three months ended 31
December 2022 to the corresponding three months in 2021 and balance
sheet analysis as at 31 December 2022 with comparatives relating to
31 December 2021. The historical financial information used for the
purposes of such analysis has been restated. Please refer to
Supplementary Information contained herein for further information.
The abbreviations ‘£m’ and ‘£bn’
represent millions and thousands of millions of Pounds Sterling
respectively; the abbreviations ‘$m’ and
‘$bn’ represent millions and thousands of millions of
US Dollars respectively; and the abbreviations
‘€m’ and ‘€bn’ represent
millions and thousands of millions of Euros
respectively.
There
are a number of key judgement areas, for example impairment
calculations, which are based on models and which are subject to
ongoing adjustment and modifications. Reported numbers reflect best
estimates and judgements at the given point in time.
Relevant
terms that are used in this document but are not defined under
applicable regulatory guidance or International Financial Reporting
Standards (IFRS) are explained in the results glossary, which can
be accessed at home.barclays/investor-relations.
The
information in this announcement, which was approved by the Board
of Directors on 14 February 2023, does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2022, which
contained an unmodified audit report under Section 495 of the
Companies Act 2006 (which did not make any statements under Section
498 of the Companies Act 2006) have been delivered to the Registrar
of Companies in accordance with Section 441 of the Companies Act
2006.
These
results will be furnished 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 77 to
83 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. Forward-looking statements can be
identified by the fact that they do not relate only to historical
or current facts. Forward-looking statements sometimes use words
such as ‘may’, ‘will’, ‘seek’,
‘continue’, ‘aim’,
‘anticipate’, ‘target’,
‘projected’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’,
‘goal’, ‘believe’, ‘achieve’ or
other words of similar meaning. Forward-looking statements can be
made in writing but also may be made verbally by directors,
officers and employees of the Group (including during management
presentations) in connection with this document. Examples of
forward-looking statements include, among others, statements or
guidance regarding or relating to the Group’s future
financial position, income levels, costs, assets and liabilities,
impairment charges, provisions, capital, leverage and other
regulatory ratios, capital distributions (including dividend policy
and share buybacks), return on tangible equity, projected levels of
growth in banking and financial markets, industry trends, any
commitments and targets (including environmental, social and
governance (ESG) commitments and targets), business strategy, plans
and objectives for future operations and other statements that are
not historical or current facts. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements speak
only as at the date on which they are made. Forward-looking
statements may be affected by a number of factors, including,
without limitation: changes in legislation, regulation and the
interpretation thereof, changes in IFRS and other accounting
standards, including practices with regard to the interpretation
and application thereof and emerging and developing ESG reporting
standards; the outcome of current and future legal proceedings and
regulatory investigations; the policies and actions of governmental
and regulatory authorities; the Group’s ability along with
governments and other stakeholders to measure, manage and mitigate
the impacts of climate change effectively; environmental, social
and geopolitical risks and incidents and similar events beyond the
Group’s control; the impact of competition; capital, leverage
and other regulatory rules applicable to past, current and future
periods; UK, US, Eurozone and global macroeconomic and business
conditions, including inflation; volatility in credit and capital
markets; market related risks such as changes in interest rates and
foreign exchange rates; higher or lower asset valuations; changes
in credit ratings of any entity within the Group or any securities
issued by it; changes in counterparty risk; changes in consumer
behaviour; the direct and indirect consequences of the
Russia-Ukraine war on European and global macroeconomic conditions,
political stability and financial markets; 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 any
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 reputation, business or
operations; the Group’s ability to access funding; and the
success of acquisitions, disposals and other strategic
transactions. A number of these factors are beyond the
Group’s control. As a result, the Group’s actual
financial position, results, financial and non-financial metrics or
performance measures or its ability to meet commitments and targets
may differ materially from the statements or guidance set forth in
the Group’s forward-looking statements. Additional risks and
factors which may impact the Group’s future financial
condition and performance are identified in Barclays PLC’s
filings with the SEC (including, without limitation, Barclays
PLC’s Annual Report on Form 20-F for the financial year ended
31 December 2022), which are available on the SEC’s website
at www.sec.gov.
Subject
to Barclays PLC’s obligations under the applicable laws and
regulations of any relevant jurisdiction (including, without
limitation, the UK and the US) in relation to disclosure and
ongoing information, we undertake no obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Performance Highlights
In 2022 Barclays delivered a profit before tax of £7.0bn and
return on tangible equity (RoTE) of 10.4%, with total capital
distributions equivalent to c.13.4p per share
C. S. Venkatakrishnan, Group Chief Executive,
commented
“Barclays performed strongly in 2022. Each business delivered
income growth, with Group income up 14%. We achieved our RoTE target of over
10%, maintained a strong Common Equity Tier 1 (CET1) capital ratio
of 13.9%, and returned capital
to shareholders. We are cautious about global economic conditions,
but continue to see growth opportunities across our businesses
through 2023.”
|
Key financial metrics:
|
Income
|
Cost: income ratio
|
Profit before tax
|
Attributable profit
|
RoTE
|
EPS
|
TNAV per share
|
CET1 ratio
|
Total capital
return1
|
FY22
|
£25.0bn
|
67%
|
£7.0bn
|
£5.0bn
|
10.4%
|
30.8p
|
295p
|
13.9%
|
c.13.4p equivalent
|
Q422
|
£5.8bn
|
69%
|
£1.3bn
|
£1.0bn
|
8.9%
|
6.5p
|
Demonstrating execution against our three strategic
priorities:
●
|
Deliver next generation digitised consumer financial
services: simplifying and upgrading online banking services
- with over 10.5 million Barclays UK mobile banking app users, and
log-ins up 8% year-on-year. c.220k ‘Rainy Day Saver’
accounts opened online since launch on 29 September 2022, 41% are
new or re-joining Blue Rewards customers. In the US Consumer Bank,
the Gap portfolio2 integration onto our
platform doubled our US customer base to over 20
million
|
●
|
Deliver sustainable growth in the Corporate and Investment Bank
(CIB): 114bps of revenue share gain in Global Markets from
2019-20223; second fastest
growth rate across the top 10 global peers. Investment in Financing
businesses delivered more stable, high returning income of
£2.9bn in 2022 reflecting a compound annual growth rate (CAGR)
of 16% since 2019
|
●
|
Capture opportunities as we transition to a low-carbon
economy: new expanded target to facilitate $1 trillion of
Sustainable and Transition Financing by the end of 2030. The
Group’s Sustainable Impact Capital investment mandate is now
£500m by the end of 2027
|
2022 Performance
highlights4:
●
|
Group attributable profit of £5.0bn and RoTE of 10.4%, with all operating divisions
delivering double-digit returns
|
|
–
|
Excluding
the impact of Over-issuance of Securities in the US (Over-issuance
of Securities)5, RoTE was
11.6%
|
●
|
Group profit before impairment of £8.2bn, up 9% year-on-year
|
●
|
Group income of £25.0bn,
up 14% year-on-year with
broad-based momentum across our operating divisions and the benefit
from FX:
|
|
–
|
CIB income increased by 8%; the best full year for both Global
Markets and FICC6, and strong
performance in Transaction banking, more than offsetting the impact
of a reduced fee pool in Investment Banking7
|
|
–
|
Consumer, Cards and Payments (CC&P) income increased by 35% supported by higher
balances in US cards and Private Bank with turnover growth in
Payments
|
|
–
|
Barclays UK income increased by 11% primarily driven by
the rising rate environment
|
●
|
Group operating expenses were £16.7bn, reflecting £1.6bn of litigation and conduct
charges, primarily driven by the Over-issuance of
Securities
|
|
–
|
Group
operating expenses excluding litigation and conduct were
£15.1bn, up 6% year-on-year, reflecting the impact of
FX and inflation
|
●
|
Credit impairment charges were £1.2bn, with a loan loss rate (LLR) of 30bps,
reflecting macroeconomic deterioration, partially offset by the
utilisation of post-model adjustments (PMAs) for macroeconomic
uncertainty and the release of COVID-19 related adjustments
informed by refreshed scenarios. Coverage ratios at the portfolio
level remain strong
|
●
|
CET1 ratio of 13.9% and
tangible net asset value (TNAV) per share of
295p
|
●
|
Capital distributions: total
dividend for 2022 of 7.25p per share (2021: 6.0p), including a 5.0p
per share 2022 full year dividend. Intend to initiate a share
buyback of up to £0.5bn, bringing the total share buybacks
announced in relation to 2022 to £1.0bn and total capital
return equivalent to c.13.4p per share
|
1
|
Includes total dividend for 2022 of 7.25p per share and total share
buybacks announced in relation to 2022 of £1.0bn.
|
2
|
The Gap portfolio refers to the Gap Inc. US credit card
portfolio.
|
3
|
Barclays' calculations using Peer reported financials.
|
4
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
5
|
Denotes the Over-issuance of Securities under Barclays Bank
PLC’s (BBPLC) US shelf registration statements on Form F-3
filed with the SEC in 2018 and 2019. See page 5 for reconciliation
of Barclays' performance excluding the impact of the Over-issuance
of Securities.
|
6
|
Period covering 2014-2022. Pre 2014 data was not restated following
re-segmentation in 2016.
|
7
|
Data source: Dealogic for the period covering 1 January to 31
December 2022.
|
Q422 Performance
highlights1:
●
|
Attributable profit was £1.0bn
and RoTE was 8.9% with profit before impairment of
£1.8bn, up 29% year-on-year with positive cost: income
jaws of 6%
|
●
|
Group income was £5.8bn, up 12% year-on-year
including the benefit from FX, with
strong performances in Barclays UK and CC&P. Within CIB, strong
performances in Global Markets and Transaction banking were more
than offset by reduced income in Investment Banking and Corporate
Lending
|
●
|
Group operating expenses were £4.0bn, up 6%
year-on-year, reflecting the
impact of FX, inflation and investment in the
business
|
●
|
Credit impairment charges were £0.5bn with an LLR of
49bps. The deteriorating macroeconomic forecast resulted
in an increased charge, partially offset by utilising economic
uncertainty PMAs
|
Outlook:
●
|
Returns: targeting RoTE of
greater than 10% in 2023
|
●
|
Income: diversified income
streams continue to position the Group well for the current
economic and market environment including higher interest rates. In
2023, Barclays UK net interest margin (NIM) is expected to be
greater than 3.20%2
|
●
|
Costs: targeting a cost: income
ratio percentage in the low 60s in 2023, investing for growth
whilst progressing towards the Group’s medium-term target of
below 60%
|
●
|
Impairment: expect an LLR of
50-60bps in 2023, based on the current macroeconomic
outlook
|
●
|
Capital: expect to operate
within the CET1 ratio target range of 13-14%
|
●
|
Capital returns: capital
distribution policy incorporates a progressive ordinary dividend,
supplemented with buybacks as appropriate
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
2
|
Assumes the UK bank rate peaks at 4.25% in 2023.
|
Barclays Group results
|
Year ended
|
|
Three months ended
|
31.12.22
|
Restated1
31.12.21
|
|
|
31.12.22
|
Restated1
31.12.21
|
|
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Barclays UK
|
7,259
|
6,536
|
11
|
|
1,970
|
1,699
|
16
|
Corporate and Investment Bank
|
13,368
|
12,334
|
8
|
|
2,576
|
2,632
|
(2)
|
Consumer, Cards and Payments
|
4,499
|
3,331
|
35
|
|
1,286
|
878
|
46
|
Barclays International
|
17,867
|
15,665
|
14
|
|
3,862
|
3,510
|
10
|
Head Office
|
(170)
|
(261)
|
35
|
|
(31)
|
(49)
|
37
|
Total income
|
24,956
|
21,940
|
14
|
|
5,801
|
5,160
|
12
|
Operating costs
|
(14,957)
|
(14,092)
|
(6)
|
|
(3,748)
|
(3,514)
|
(7)
|
UK bank levy
|
(176)
|
(170)
|
(4)
|
|
(176)
|
(170)
|
(4)
|
Litigation and conduct
|
(1,597)
|
(397)
|
|
|
(79)
|
(92)
|
14
|
Total operating expenses
|
(16,730)
|
(14,659)
|
(14)
|
|
(4,003)
|
(3,776)
|
(6)
|
Other net income
|
6
|
260
|
(98)
|
|
10
|
13
|
(23)
|
Profit before impairment
|
8,232
|
7,541
|
9
|
|
1,808
|
1,397
|
29
|
Credit impairment (charges)/releases
|
(1,220)
|
653
|
|
|
(498)
|
31
|
|
Profit before tax
|
7,012
|
8,194
|
(14)
|
|
1,310
|
1,428
|
(8)
|
Tax (charge)/credit
|
(1,039)
|
(1,138)
|
9
|
|
33
|
(104)
|
|
Profit after tax
|
5,973
|
7,056
|
(15)
|
|
1,343
|
1,324
|
1
|
Non-controlling interests
|
(45)
|
(47)
|
4
|
|
(22)
|
(27)
|
19
|
Other equity instrument holders
|
(905)
|
(804)
|
(13)
|
|
(285)
|
(218)
|
(31)
|
Attributable profit
|
5,023
|
6,205
|
(19)
|
|
1,036
|
1,079
|
(4)
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
10.4%
|
13.1%
|
|
|
8.9%
|
9.0%
|
|
Average tangible shareholders' equity (£bn)
|
48.3
|
47.3
|
|
|
46.7
|
48.0
|
|
Cost: income ratio
|
67%
|
67%
|
|
|
69%
|
73%
|
|
Loan loss rate (bps)
|
30
|
(18)
|
|
|
49
|
(3)
|
|
Basic earnings per share
|
30.8p
|
36.5p
|
|
|
6.5p
|
6.4p
|
|
Dividend per share
|
7.25p
|
6.0p
|
|
|
|
|
|
Share buyback announced (£m)
|
1,000
|
1,500
|
|
|
|
|
|
Total payout equivalent per share
|
c.13.4p
|
15.0p
|
|
|
|
|
|
Basic weighted average number of shares (m)
|
16,333
|
16,985
|
(4)
|
|
15,828
|
16,985
|
(7)
|
Period end number of shares (m)
|
15,871
|
16,752
|
(5)
|
|
15,871
|
16,752
|
(5)
|
|
As at 31.12.22
|
As at 30.09.22
|
Restated
As at 31.12.211
|
|
|
|
|
Balance sheet and capital management2
|
£bn
|
£bn
|
£bn
|
|
|
|
|
Loans and advances at amortised cost
|
398.8
|
413.7
|
361.5
|
|
|
|
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.4%
|
1.4%
|
1.6%
|
|
|
|
|
Total assets
|
1,513.7
|
1,726.9
|
1,384.3
|
|
|
|
|
Deposits at amortised cost
|
545.8
|
574.4
|
519.4
|
|
|
|
|
Tangible net asset value per share
|
295p
|
286p
|
291p
|
|
|
|
|
Common equity tier 1 ratio
|
13.9%
|
13.8%
|
15.1%
|
|
|
|
|
Common equity tier 1 capital
|
46.9
|
48.6
|
47.3
|
|
|
|
|
Risk weighted assets
|
336.5
|
350.8
|
314.1
|
|
|
|
|
UK leverage ratio
|
5.3%
|
5.0%
|
5.2%
|
|
|
|
|
UK leverage exposure
|
1,130.0
|
1,232.1
|
1,137.9
|
|
|
|
|
Average UK leverage ratio
|
4.8%
|
4.8%
|
4.9%
|
|
|
|
|
Average UK leverage exposure
|
1,281.0
|
1,259.6
|
1,229.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
318
|
326
|
291
|
|
|
|
|
Liquidity coverage ratio
|
165%
|
151%
|
168%
|
|
|
|
|
Net
stable funding ratio3
|
137%
|
|
|
|
|
|
|
Loan: deposit ratio
|
73%
|
72%
|
70%
|
|
|
|
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
2
|
Refer to pages 54 to 62 for
further information on how capital, Risk Weighted Assets (RWAs) and
leverage are calculated.
|
3
|
Represents average of the last four spot quarter end
positions.
|
Reconciliation of financial results excluding the impact of the
Over-issuance of Securities
|
Year ended 31.12.22
|
|
Restated1
Year ended 31.12.21
|
|
|
|
Statutory
|
Impact of the Over-issuance of Securities
|
Excluding impact of the Over-issuance of Securities
|
|
Statutory
|
Impact of the Over-issuance of Securities
|
Excluding impact of the Over-issuance of Securities
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
7,259
|
—
|
7,259
|
|
6,536
|
—
|
6,536
|
|
11
|
Corporate and Investment Bank
|
13,368
|
292
|
13,076
|
|
12,334
|
—
|
12,334
|
|
6
|
Consumer, Cards and Payments
|
4,499
|
—
|
4,499
|
|
3,331
|
—
|
3,331
|
|
35
|
Barclays International
|
17,867
|
292
|
17,575
|
|
15,665
|
—
|
15,665
|
|
12
|
Head Office
|
(170)
|
—
|
(170)
|
|
(261)
|
—
|
(261)
|
|
35
|
Total income
|
24,956
|
292
|
24,664
|
|
21,940
|
—
|
21,940
|
|
12
|
Operating costs
|
(14,957)
|
—
|
(14,957)
|
|
(14,092)
|
—
|
(14,092)
|
|
(6)
|
UK bank levy
|
(176)
|
—
|
(176)
|
|
(170)
|
—
|
(170)
|
|
(4)
|
Litigation and conduct
|
(1,597)
|
(966)
|
(631)
|
|
(397)
|
(220)
|
(177)
|
|
|
Total operating expenses
|
(16,730)
|
(966)
|
(15,764)
|
|
(14,659)
|
(220)
|
(14,439)
|
|
(9)
|
Other net income
|
6
|
—
|
6
|
|
260
|
—
|
260
|
|
(98)
|
Profit before impairment
|
8,232
|
(674)
|
8,906
|
|
7,541
|
(220)
|
7,761
|
|
15
|
Credit impairment (charges)/releases
|
(1,220)
|
—
|
(1,220)
|
|
653
|
—
|
653
|
|
|
Profit before tax
|
7,012
|
(674)
|
7,686
|
|
8,194
|
(220)
|
8,414
|
|
(9)
|
Attributable profit
|
5,023
|
(552)
|
5,575
|
|
6,205
|
(170)
|
6,375
|
|
(13)
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
Average tangible shareholders' equity
|
48.3
|
|
48.3
|
|
47.3
|
|
47.3
|
|
|
Return on average tangible shareholders' equity
|
10.4%
|
|
11.6%
|
|
13.1%
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended 31.12.22
|
|
Restated1
Three months ended 31.12.21
|
|
|
|
Statutory
|
Impact of the Over-issuance of Securities
|
Excluding impact of the Over-issuance of Securities
|
|
Statutory
|
Impact of the Over-issuance of Securities
|
Excluding impact of the Over-issuance of Securities
|
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
% Change
|
Barclays UK
|
1,970
|
—
|
1,970
|
|
1,699
|
—
|
1,699
|
|
16
|
Corporate and Investment Bank
|
2,576
|
—
|
2,576
|
|
2,632
|
—
|
2,632
|
|
(2)
|
Consumer, Cards and Payments
|
1,286
|
—
|
1,286
|
|
878
|
—
|
878
|
|
46
|
Barclays International
|
3,862
|
—
|
3,862
|
|
3,510
|
—
|
3,510
|
|
10
|
Head Office
|
(31)
|
—
|
(31)
|
|
(49)
|
—
|
(49)
|
|
37
|
Total income
|
5,801
|
—
|
5,801
|
|
5,160
|
—
|
5,160
|
|
12
|
Operating costs
|
(3,748)
|
—
|
(3,748)
|
|
(3,514)
|
—
|
(3,514)
|
|
(7)
|
UK bank levy
|
(176)
|
—
|
(176)
|
|
(170)
|
—
|
(170)
|
|
(4)
|
Litigation and conduct
|
(79)
|
—
|
(79)
|
|
(92)
|
(46)
|
(46)
|
|
(72)
|
Total operating expenses
|
(4,003)
|
—
|
(4,003)
|
|
(3,776)
|
(46)
|
(3,730)
|
|
(7)
|
Other net income
|
10
|
—
|
10
|
|
13
|
—
|
13
|
|
(23)
|
Profit before impairment
|
1,808
|
—
|
1,808
|
|
1,397
|
(46)
|
1,443
|
|
25
|
Credit impairment (charges)/releases
|
(498)
|
—
|
(498)
|
|
31
|
—
|
31
|
|
|
Profit before tax
|
1,310
|
—
|
1,310
|
|
1,428
|
(46)
|
1,474
|
|
(11)
|
Attributable profit
|
1,036
|
—
|
1,036
|
|
1,079
|
(38)
|
1,117
|
|
(7)
|
|
£bn
|
|
£bn
|
|
£bn
|
|
£bn
|
|
|
Average tangible shareholders' equity
|
46.7
|
|
46.7
|
|
48.0
|
|
48.0
|
|
|
Return on average tangible shareholders' equity
|
8.9%
|
|
8.9%
|
|
9.0%
|
|
9.3%
|
|
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
Group Finance Director’s Review
2022 Group
performance1
●
|
Barclays delivered a profit before tax of £7,012m (2021:
£8,194m), RoTE of 10.4%
(2021: 13.1%) and earnings per share (EPS) of 30.8p (2021:
36.5p)
|
●
|
The Group has a diverse income profile across businesses and
geographies including a significant presence in the US.
The 10% appreciation of average USD
against GBP positively impacted income and profits and adversely
impacted credit impairment charges and total operating
expenses
|
●
|
Group income increased to £24,956m (2021:
£21,940m)
|
|
–
|
Excluding the income benefit of £292m relating to hedging
arrangements to manage the risks of the rescission offer in
relation to the Over-issuance of Securities, total Group income was
£24,664m, up 12% year-on-year
|
●
|
Group operating expenses increased to £16,730m (2021:
£14,659m) mainly due to higher litigation and conduct
charges:
|
|
–
|
Group operating expenses excluding litigation and conduct charges
increased 6% to £15,133m, reflecting the impact of inflation
and the appreciation of average USD against GBP
|
|
–
|
Litigation and conduct charges were £1,597m (2021: £397m)
including £966m from the
Over-issuance of Securities
|
●
|
Credit impairment charges were £1,220m (2021:
£653m net release).
The increase in charges reflect
macroeconomic deterioration and a gradual increase in
delinquencies, partially offset by the utilisation of macroeconomic
uncertainty PMAs and the
release of COVID-19 related adjustments informed by refreshed
scenarios. Total coverage ratio
decreased to 1.4% (December 2021: 1.6%) driven by changes in
portfolio mix and write-offs. Coverage levels remain
strong
|
●
|
The effective tax rate (ETR) was 14.8% (2021: 13.9%).
The tax charge included a £346m
re-measurement of the Group’s UK deferred tax assets (DTAs)
due to the enactment of legislation to reduce the UK banking
surcharge rate. Excluding this DTAs downward re-measurement, the
ETR was 9.9%, reflecting tax benefits in the current year,
primarily arising from tax relief related to government bonds
linked to the high prevailing rate of inflation in 2022, as well as
beneficial adjustments in respect of prior
years
|
●
|
Attributable profit was £5,023m (2021:
£6,205m)
|
●
|
Total assets increased to £1,513.7bn
(December 2021: £1,384.3bn)
reflecting higher levels of activity as we supported our clients
through a period of market volatility, growth in customer lending,
and appreciation of USD against GBP
|
●
|
TNAV per share increased to 295p (December 2021: 291p)
with EPS of 30.8p and currency
movements partially offset by net negative reserve movements due to
higher interest rates, primarily in the cash flow hedging
reserve
|
Capital distributions
●
|
Barclays
intends to pay a 2022 full year dividend of 5.0p per share, taking
the total dividend for 2022 to 7.25p per share (2021: 6.0p).
Barclays also intends to initiate a share buyback of up to
£0.5bn, bringing the total share buybacks announced in
relation to 2022 to £1.0bn and total capital return equivalent
to c.13.4p per share
|
●
|
Barclays
is committed to maintaining an appropriate balance between
delivering attractive total cash returns to shareholders,
investment in the business and maintaining a strong capital
position. Barclays pays a progressive ordinary dividend, taking
into account these objectives and the earnings outlook of the
Group. The Board will also continue to supplement the ordinary
dividends as appropriate, including with share
buybacks
|
●
|
Dividends
will continue to be paid semi-annually
|
Group capital and
leverage1
●
|
The reported CET1 ratio decreased by c.120bps to 13.9% (December
2021: 15.1%) as RWAs increased by £22.4bn to £336.5bn and
CET1 capital decreased by £0.4bn to £46.9bn
|
–
|
|
c.150bps increase from 2022 attributable profit
|
–
|
|
c.80bps returned to shareholders including the 2.25p half year
dividend paid in September 2022, £1.5bn of share buybacks
announced with FY21 and H122 results and a FY22 dividend
accrual
|
–
|
|
c.80bps reduction due to the impact of regulatory change on 1
January 2022 as CET1 capital decreased £1.7bn and RWAs
increased £6.6bn
|
–
|
|
c.70bps reduction from decreases in the fair value of the bond
portfolio through other comprehensive income and other capital
deductions
|
–
|
|
c.40bps reduction due to pension contributions, including the
accelerated cash settlement to the UK Retirement Fund (UKRF) of
earlier deficit reduction contributions and deficit reduction
payments made in 2022
|
–
|
|
A £14.1bn increase in RWAs as a result of foreign exchange
movements was broadly offset by a £2bn increase in the
currency translation reserve
|
●
|
The UK leverage ratio increased to 5.3% (December 2021: 5.2%)
primarily due to a decrease in the leverage exposure of £7.9bn
to £1,130.0bn and an increase in Tier 1 Capital of £0.6bn
to £60.1bn
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
Group funding and liquidity
●
|
The liquidity pool was £318bn (December 2021: £291bn) and
the liquidity coverage ratio (LCR) remained significantly above the
100% regulatory requirement at 165% (December 2021: 168%),
equivalent to a surplus of £117bn (December 2021:
£116bn). The increase in the liquidity pool over the year was
driven by continued deposit growth and an increase in wholesale
funding, partly offset by an increase in business funding
consumption. An increase in net stress outflows and trapped
liquidity within Barclays’ subsidiaries led to a modest
reduction in the LCR ratio. The Net Stable Funding Ratio (NSFR)
(average of last four quarter ends) was 137%, which represents a
£155bn surplus above the 100% regulatory
requirement
|
●
|
Wholesale
funding outstanding, excluding repurchase agreements, was
£184.0bn (December 2021: £167.5bn). The Group issued £15.3bn equivalent of
minimum requirement for own funds and eligible liabilities (MREL)
instruments from Barclays PLC (BPLC) (the Parent company) in 2022.
The Group has a strong MREL position with a ratio of 33.5% of RWAs,
which is in excess of the 28.9% regulatory requirement excluding a
confidential, institution specific Prudential Regulation Authority
(PRA) buffer
|
Other matters
●
|
Over-issuance of Securities: Barclays recognised a net
attributable loss of £0.6bn in 2022 (£nil in Q422,
£0.7bn total loss including 2021). This included a monetary
penalty of $200m (£165m1) following the
resolution of the SEC’s investigation of BPLC and BBPLC
relating to the Over-issuance of Securities
As
previously disclosed, Barclays has a contingent liability in
relation to current and potential private civil claims and other
potential enforcement actions relating to the Over-issuance of
Securities. For further details see Restatement of financial
statements (Note 1a) in the BPLC 2022 Annual Report on page
428.
|
●
|
SEC and Commodity and Futures Trading Commission (CFTC) devices
investigation: in Q322, the SEC and CFTC announced the final
settlement terms relating to their investigations of compliance
with record-keeping obligations in connection with business-related
communications over unapproved electronic messaging platforms.
Under these settlements, BBPLC and Barclays Capital Inc. paid a
combined $125m (£103m1) civil monetary
penalty to the SEC and a $75m (£62m1) civil monetary
penalty to the CFTC
|
●
|
Legacy Loan Portfolio: a customer remediation provision of
£282m was recognised during 2022, relating to a legacy
timeshare loan portfolio brokered by Azure Services Limited and
other legacy loan portfolios
|
●
|
Financial Conduct Authority (FCA) proceedings: a provision
of £50m was recognised in Q322 in relation to the FCA
investigation into disclosure-related matters arising out of BPLC's
June and November 2008 capital raisings
|
●
|
Gap portfolio acquisition: in Q222, Barclays completed the
acquisition of a US credit card portfolio of $3.3bn
(£2.7bn2) of receivables, in
partnership with Gap Inc.
|
●
|
Kensington Mortgage Company (KMC) acquisition: in Q222, BPLC
announced that Barclays Bank UK PLC had agreed to acquire UK
specialist mortgage lender KMC and a portfolio of UK mortgages.
Regulatory approval has been obtained and the transaction is now
expected to complete in Q123
|
●
|
Absa Group Limited (Absa)
sale: during 2022 Barclays fully disposed of its
shareholding in Absa, raising aggregate gross sale proceeds of ZAR
21.0bn (c.£1.1bn3)
|
●
|
UK Corporation Tax: an increase in the UK Corporation Tax
rate from 19% to 25% was enacted in 2021 and a reduction in the UK
banking surcharge from 8% to 3% was enacted in 2022, both to be
effective from 1 April 2023. The future statutory tax rate applied
to UK banking profits will therefore be 28% from 1 April
2023
|
Group targets
Barclays
continues to target the following over the
medium-term:
|
●
|
Returns:
RoTE of greater than 10%
|
●
|
Cost
efficiency: cost: income ratio below 60%
|
●
|
Capital
adequacy: CET1 ratio in the range of 13-14%
|
Anna Cross, Group Finance Director
1
|
Exchange rate GBP/USD 1.22 as at 30 June 2022.
|
2
|
Exchange rate GBP/USD 1.22 as at 17 June 2022.
|
3
|
On 21 April 2022, ZAR 10.3bn at exchange rate GBP/ZAR 20.04 and on
1 September 2022, ZAR 10.7bn at exchange rate GBP/ZAR
19.93.
|
Results by Business
Barclays UK
|
Year ended
|
|
Three months ended
|
|
31.12.22
|
31.12.21
|
|
|
31.12.22
|
31.12.21
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
5,893
|
5,202
|
13
|
|
1,600
|
1,313
|
22
|
Net fee, commission and other income
|
1,366
|
1,334
|
2
|
|
370
|
386
|
(4)
|
Total income
|
7,259
|
6,536
|
11
|
|
1,970
|
1,699
|
16
|
Operating costs
|
(4,260)
|
(4,357)
|
2
|
|
(1,108)
|
(1,202)
|
8
|
UK bank levy
|
(26)
|
(36)
|
28
|
|
(26)
|
(36)
|
28
|
Litigation and conduct
|
(41)
|
(37)
|
(11)
|
|
(13)
|
(5)
|
|
Total operating expenses
|
(4,327)
|
(4,430)
|
2
|
|
(1,147)
|
(1,243)
|
8
|
Other net income/(expenses)
|
—
|
—
|
|
|
1
|
(1)
|
|
Profit before impairment
|
2,932
|
2,106
|
39
|
|
824
|
455
|
81
|
Credit impairment (charges)/releases
|
(286)
|
365
|
|
|
(157)
|
59
|
|
Profit before tax
|
2,646
|
2,471
|
7
|
|
667
|
514
|
30
|
Attributable profit
|
1,877
|
1,756
|
7
|
|
474
|
420
|
13
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
18.7%
|
17.6%
|
|
|
18.7%
|
16.8%
|
|
Average allocated tangible equity (£bn)
|
10.0
|
10.0
|
|
|
10.2
|
10.0
|
|
Cost: income ratio
|
60%
|
68%
|
|
|
58%
|
73%
|
|
Loan loss rate (bps)
|
13
|
(16)
|
|
|
27
|
(10)
|
|
Net interest margin
|
2.86%
|
2.52%
|
|
|
3.10%
|
2.49%
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
UK mortgage balances (£bn)
|
162.2
|
158.1
|
|
|
|
|
|
Mortgage gross lending flow (£bn)
|
30.3
|
33.9
|
|
|
|
|
|
Average
loan to value of mortgage portfolio1
|
50%
|
51%
|
|
|
|
|
|
Average
loan to value of new mortgage lending1
|
68%
|
70%
|
|
|
|
|
|
Number of branches
|
481
|
666
|
|
|
|
|
|
Mobile banking active customers
|
10.5m
|
9.7m
|
|
|
|
|
|
30 day arrears rate - Barclaycard Consumer UK
|
0.9%
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
205.1
|
208.8
|
|
|
|
|
|
Total assets
|
313.2
|
321.2
|
|
|
|
|
|
Customer deposits at amortised cost
|
258.0
|
260.6
|
|
|
|
|
|
Loan: deposit ratio
|
87%
|
85%
|
|
|
|
|
|
Risk weighted assets
|
73.1
|
72.3
|
|
|
|
|
|
Period end allocated tangible equity
|
10.1
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Average loan to value (LTV) of mortgages is balance weighted and
reflects both residential and buy-to-let (BTL) mortgage portfolios
within the Home Loans portfolio.
|
Analysis of Barclays UK
|
Year ended
|
|
Three months ended
|
31.12.22
|
31.12.21
|
|
|
31.12.22
|
31.12.21
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Personal Banking
|
4,540
|
3,883
|
17
|
|
1,229
|
983
|
25
|
Barclaycard Consumer UK
|
1,093
|
1,250
|
(13)
|
|
269
|
352
|
(24)
|
Business Banking
|
1,626
|
1,403
|
16
|
|
472
|
364
|
30
|
Total income
|
7,259
|
6,536
|
11
|
|
1,970
|
1,699
|
16
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
Personal Banking
|
(167)
|
28
|
|
|
(120)
|
8
|
|
Barclaycard Consumer UK
|
30
|
404
|
(93)
|
|
(12)
|
114
|
|
Business Banking
|
(149)
|
(67)
|
|
|
(25)
|
(63)
|
60
|
Total credit impairment (charges)/releases
|
(286)
|
365
|
|
|
(157)
|
59
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
|
|
|
|
|
Personal Banking
|
169.7
|
165.4
|
|
|
|
|
|
Barclaycard Consumer UK
|
9.2
|
8.7
|
|
|
|
|
|
Business Banking
|
26.2
|
34.7
|
|
|
|
|
|
Total loans and advances to customers at amortised
cost
|
205.1
|
208.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
Personal Banking
|
195.6
|
196.4
|
|
|
|
|
|
Barclaycard Consumer UK
|
—
|
—
|
|
|
|
|
|
Business Banking
|
62.4
|
64.2
|
|
|
|
|
|
Total customer deposits at amortised cost
|
258.0
|
260.6
|
|
|
|
|
|
Barclays UK delivered a RoTE
of 18.7% (2021: 17.6%) as the transformation into a next
generation, digitised consumer bank drove strong returns and cost
efficiencies, which combined with rising interest rates contributed
to a cost: income ratio of 60%
(2021: 68%). Barclays UK
continues to support customers through affordability
pressures.
2022 compared to 2021
Income statement
●
|
Profit before tax increased to £2,646m (2021:
£2,471m), with benefits
from the rising rate environment in the UK more than offsetting the
non-recurrence of a prior year credit impairment
release
|
●
|
Total income increased 11% to £7,259m. Net interest income increased 13% to
£5,893m with a NIM of 2.86% (2021: 2.52%) primarily driven by the rising
interest rate environment in the UK. Net fee, commission and other
income increased 2% to £1,366m
|
|
–
|
Personal Banking income increased 17% to £4,540m, driven by
rising interest rates, partially offset by mortgage margin
compression
|
|
–
|
Barclaycard Consumer UK income decreased 13% to £1,093m as
higher customer spend volumes were more than offset by lower
interest earning lending (IEL) balances following repayments and
ongoing prudent risk management
|
|
–
|
Business Banking income increased 16% to £1,626m driven by
rising interest rates alongside improved transaction based
revenues, partially offset by lower government scheme lending
income as repayments continue
|
●
|
Total operating expenses decreased 2% to
£4,327m driven by efficiency savings more than offsetting
the impact of inflation
|
●
|
Credit impairment charges were £286m (2021: £365m net
release). The charges reflect
an updated macroeconomic scenario together with a partial return to
more normalised levels of customer behaviour. This is partially
offset from the release of COVID-19 related adjustments as
performance stabilises at or below pre-pandemic levels. As at 31
December 2022, UK cards 30 and 90 day arrears remain at 0.9% (Q421:
1.0%) and 0.2% (Q421: 0.2%) respectively1. The UK cards business is supported by a total
coverage ratio of 7.6% (December 2021: 12.8%). The UK cards
coverage reflects revised recovery expectations under the ongoing
debt sale program and continued resilience in the underlying book.
PMAs are in place for the anticipated stress arising from the
cost-of-living crisis
|
Balance sheet
●
|
Loans and advances to customers at amortised cost decreased 2%
to £205.1bn
as £4.1bn of mortgage growth was
more than offset by a £8.5bn decrease in Business Banking
balances due to the repayment of government scheme lending and the
yield curve impact from rising interest rates on the Education,
Social Housing and Local Authority portfolio carrying
value
|
●
|
Customer deposits at amortised cost remained broadly stable at
£258.0bn (December 2021: £260.6bn), maintaining a strong loan: deposit ratio of 87%
(December 2021: 85%)
|
●
|
RWAs remained broadly stable at £73.1bn (December 2021:
£72.3bn)
|
1
|
As at 31 December 2019, UK cards 30 and 90 day arrears were 1.7%
and 0.8% respectively.
|
Barclays International
|
Year ended
|
|
Three months ended
|
|
31.12.22
|
Restated1
31.12.21
|
|
|
31.12.22
|
Restated1
31.12.21
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
4,927
|
3,263
|
51
|
|
1,465
|
955
|
53
|
Net trading income
|
7,709
|
5,693
|
35
|
|
1,169
|
789
|
48
|
Net fee, commission and other income
|
5,231
|
6,709
|
(22)
|
|
1,228
|
1,766
|
(30)
|
Total income
|
17,867
|
15,665
|
14
|
|
3,862
|
3,510
|
10
|
Operating costs
|
(10,361)
|
(9,076)
|
(14)
|
|
(2,543)
|
(2,160)
|
(18)
|
UK bank levy
|
(133)
|
(134)
|
1
|
|
(133)
|
(134)
|
1
|
Litigation and conduct
|
(1,503)
|
(345)
|
|
|
(67)
|
(84)
|
20
|
Total operating expenses
|
(11,997)
|
(9,555)
|
(26)
|
|
(2,743)
|
(2,378)
|
(15)
|
Other net income
|
28
|
40
|
(30)
|
|
5
|
3
|
67
|
Profit before impairment
|
5,898
|
6,150
|
(4)
|
|
1,124
|
1,135
|
(1)
|
Credit impairment (charges)/releases
|
(933)
|
288
|
|
|
(328)
|
(23)
|
|
Profit before tax
|
4,965
|
6,438
|
(23)
|
|
796
|
1,112
|
(28)
|
Attributable profit
|
3,844
|
4,647
|
(17)
|
|
625
|
818
|
(24)
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.2%
|
14.4%
|
|
|
6.4%
|
9.9%
|
|
Average allocated tangible equity (£bn)
|
37.6
|
32.4
|
|
|
38.9
|
32.9
|
|
Cost: income ratio
|
67%
|
61%
|
|
|
71%
|
68%
|
|
Loan loss rate (bps)
|
54
|
(21)
|
|
|
75
|
7
|
|
Net interest margin
|
5.02 %
|
4.01 %
|
|
|
5.71%
|
4.14 %
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
133.7
|
106.4
|
|
|
|
|
|
Loans and advances to banks at amortised cost
|
8.7
|
8.4
|
|
|
|
|
|
Debt securities at amortised cost
|
27.2
|
19.0
|
|
|
|
|
|
Loans and advances at amortised cost
|
169.6
|
133.8
|
|
|
|
|
|
Trading portfolio assets
|
133.8
|
146.9
|
|
|
|
|
|
Derivative financial instrument assets
|
301.7
|
261.5
|
|
|
|
|
|
Financial assets at fair value through the income
statement
|
210.5
|
188.2
|
|
|
|
|
|
Cash collateral and settlement balances
|
107.7
|
88.1
|
|
|
|
|
|
Other assets
|
258.0
|
225.6
|
|
|
|
|
|
Total assets
|
1,181.3
|
1,044.1
|
|
|
|
|
|
Deposits at amortised cost
|
287.6
|
258.8
|
|
|
|
|
|
Derivative financial instrument liabilities
|
288.9
|
256.4
|
|
|
|
|
|
Loan: deposit ratio
|
59%
|
52 %
|
|
|
|
|
|
Risk weighted assets
|
254.8
|
230.9
|
|
|
|
|
|
Period end allocated tangible equity
|
36.8
|
33.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information
|
Analysis of Barclays International
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Year ended
|
|
Three months ended
|
|
31.12.22
|
Restated1
31.12.21
|
|
|
31.12.22
|
Restated1
31.12.21
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
1,949
|
1,351
|
44
|
|
548
|
432
|
27
|
Net trading income
|
7,733
|
5,652
|
37
|
|
1,201
|
774
|
55
|
Net fee, commission and other income
|
3,686
|
5,331
|
(31)
|
|
827
|
1,426
|
(42)
|
Total income
|
13,368
|
12,334
|
8
|
|
2,576
|
2,632
|
(2)
|
Operating costs
|
(7,630)
|
(6,818)
|
(12)
|
|
(1,796)
|
(1,562)
|
(15)
|
UK bank levy
|
(126)
|
(128)
|
2
|
|
(126)
|
(128)
|
2
|
Litigation and conduct
|
(1,189)
|
(237)
|
|
|
(55)
|
(59)
|
7
|
Total operating expenses
|
(8,945)
|
(7,183)
|
(25)
|
|
(1,977)
|
(1,749)
|
(13)
|
Other net income
|
2
|
2
|
—
|
|
2
|
1
|
|
Profit before impairment
|
4,425
|
5,153
|
(14)
|
|
601
|
884
|
(32)
|
Credit impairment (charges)/releases
|
(119)
|
473
|
|
|
(41)
|
73
|
|
Profit before tax
|
4,306
|
5,626
|
(23)
|
|
560
|
957
|
(41)
|
Attributable profit
|
3,364
|
4,032
|
(17)
|
|
454
|
695
|
(35)
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.2%
|
14.3%
|
|
|
5.4%
|
9.7%
|
|
Average allocated tangible equity (£bn)
|
32.8
|
28.3
|
|
|
33.7
|
28.7
|
|
Cost: income ratio
|
67%
|
58%
|
|
|
77%
|
66%
|
|
Loan loss rate (bps)
|
9
|
(47)
|
|
|
13
|
(29)
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
90.5
|
73.4
|
|
|
|
|
|
Loans and advances to banks at amortised cost
|
8.1
|
7.6
|
|
|
|
|
|
Debt securities at amortised cost
|
27.2
|
19.0
|
|
|
|
|
|
Loans and advances at amortised cost
|
125.8
|
100.0
|
|
|
|
|
|
Trading portfolio assets
|
133.7
|
146.7
|
|
|
|
|
|
Derivative financial instrument assets
|
301.6
|
261.5
|
|
|
|
|
|
Financial assets at fair value through the income
statement
|
210.5
|
188.1
|
|
|
|
|
|
Cash collateral and settlement balances
|
106.9
|
87.2
|
|
|
|
|
|
Other assets
|
222.6
|
195.8
|
|
|
|
|
|
Total assets
|
1,101.1
|
979.3
|
|
|
|
|
|
Deposits at amortised cost
|
205.8
|
189.4
|
|
|
|
|
|
Derivative financial instrument liabilities
|
288.9
|
256.4
|
|
|
|
|
|
Risk weighted assets
|
215.9
|
200.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
FICC
|
5,695
|
3,448
|
65
|
|
976
|
546
|
79
|
Equities
|
3,149
|
2,967
|
6
|
|
440
|
501
|
(12)
|
Global Markets
|
8,844
|
6,415
|
38
|
|
1,416
|
1,047
|
35
|
Advisory
|
768
|
921
|
(17)
|
|
197
|
287
|
(31)
|
Equity capital markets
|
166
|
813
|
(80)
|
|
40
|
158
|
(75)
|
Debt capital markets
|
1,281
|
1,925
|
(33)
|
|
243
|
511
|
(52)
|
Investment Banking fees
|
2,215
|
3,659
|
(39)
|
|
480
|
956
|
(50)
|
Corporate lending
|
(231)
|
588
|
|
|
(128)
|
176
|
|
Transaction banking
|
2,540
|
1,672
|
52
|
|
808
|
453
|
78
|
Corporate
|
2,309
|
2,260
|
2
|
|
680
|
629
|
8
|
Total income
|
13,368
|
12,334
|
8
|
|
2,576
|
2,632
|
(2)
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information
|
Analysis of Barclays International
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Year ended
|
|
Three months ended
|
|
31.12.22
|
31.12.21
|
|
|
31.12.22
|
31.12.21
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
2,979
|
1,912
|
56
|
|
918
|
522
|
76
|
Net fee, commission, trading and other income
|
1,520
|
1,419
|
7
|
|
368
|
356
|
3
|
Total income
|
4,499
|
3,331
|
35
|
|
1,286
|
878
|
46
|
Operating costs
|
(2,731)
|
(2,258)
|
(21)
|
|
(747)
|
(598)
|
(25)
|
UK bank levy
|
(7)
|
(6)
|
(17)
|
|
(7)
|
(6)
|
(17)
|
Litigation and conduct
|
(314)
|
(108)
|
|
|
(12)
|
(25)
|
52
|
Total operating expenses
|
(3,052)
|
(2,372)
|
(29)
|
|
(766)
|
(629)
|
(22)
|
Other net income
|
26
|
38
|
(32)
|
|
3
|
2
|
50
|
Profit before impairment
|
1,473
|
997
|
48
|
|
523
|
251
|
|
Credit impairment charges
|
(814)
|
(185)
|
|
|
(287)
|
(96)
|
|
Profit before tax
|
659
|
812
|
(19)
|
|
236
|
155
|
52
|
Attributable profit
|
480
|
615
|
(22)
|
|
171
|
123
|
39
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
10.0%
|
15.0%
|
|
|
13.0%
|
11.7%
|
|
Average allocated tangible equity (£bn)
|
4.8
|
4.1
|
|
|
5.2
|
4.2
|
|
Cost: income ratio
|
68%
|
71%
|
|
|
60%
|
72%
|
|
Loan loss rate (bps)
|
175
|
51
|
|
|
245
|
105
|
|
|
|
|
|
|
|
|
|
Key facts
|
|
|
|
|
|
|
|
US cards 30 day arrears rate
|
2.2%
|
1.6%
|
|
|
|
|
|
US cards customer FICO score distribution
|
|
|
|
|
|
|
|
<660
|
11%
|
10%
|
|
|
|
|
|
>660
|
89%
|
90%
|
|
|
|
|
|
Total number of payments clients
|
395k
|
380k
|
|
|
|
|
|
Value
of payments processed (£bn)1
|
307
|
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
|
|
|
|
Loans and advances to customers at amortised cost
|
43.2
|
33.0
|
|
|
|
|
|
Total assets
|
80.2
|
64.8
|
|
|
|
|
|
Deposits at amortised cost
|
81.8
|
69.4
|
|
|
|
|
|
Risk weighted assets
|
38.9
|
30.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
International Cards and Consumer Bank
|
2,913
|
2,092
|
39
|
|
860
|
552
|
56
|
Private Bank
|
1,014
|
781
|
30
|
|
285
|
200
|
43
|
Payments
|
572
|
458
|
25
|
|
141
|
126
|
12
|
Total income
|
4,499
|
3,331
|
35
|
|
1,286
|
878
|
46
|
1
|
Includes £296bn (2021: £270bn) of merchant acquiring
payments.
|
Barclays International delivered a RoTE of 10.2% (2021: 14.4%) reflecting the benefits of income
diversification and continued investment in sustainable growth,
partially offset by the net impact of the Over-issuance of
Securities in the CIB. CC&P performance reflected continued
income momentum, investment for growth and a provision for customer
remediation costs relating to legacy loan portfolios.
2022 compared to 2021
Income statement1
●
|
Profit before tax decreased 23% to £4,965m with a RoTE of
10.2% (2021: 14.4%), reflecting
a RoTE of 10.2% (2021: 14.3%) in CIB and 10.0% (2021: 15.0%) in
CC&P
|
|
–
|
Excluding the impact of the Over-issuance of Securities, CIB RoTE
was 12.0%
|
●
|
Barclays International has a diverse income profile across
businesses and geographies including a significant presence in the
US. The 10% appreciation of
average USD against GBP positively impacted income and profits and
adversely impacted credit impairment charges, total operating
expenses and RWAs
|
●
|
Total income increased to £17,867m (2021:
£15,665m)
|
|
–
|
CIB income increased 8% to £13,368m
|
|
|
–
|
Global Markets income increased 38% to £8,844m representing
the best full year for both Global Markets and FICC on a comparable
basis2.
FICC income increased 65% to £5,695m, mainly in macro,
reflecting higher levels of activity as we supported our clients
through a period of market volatility. Equities income of
£3,149m (2021: £2,967m) included £292m of income
related to hedging arrangements to manage the risks of the
rescission offer in relation to the Over-issuance of
Securities
|
|
|
–
|
Investment Banking fees decreased 39% to £2,215m due to the
reduced fee pool, particularly in Equity and Debt capital
markets3
|
|
|
–
|
Within Corporate, Transaction banking income increased 52% to
£2,540m driven by improved margins and growth in deposits, and
higher fee income. Corporate lending income reflected fair value
losses on leverage finance lending of c.£335m net of mark to
market gains on related hedges, of which c.£85m was recognised
in Q422, and higher costs of hedging and credit
protection
|
|
–
|
CC&P income increased 35% to £4,499m
|
|
|
–
|
International Cards and Consumer Bank income increased 39% to
£2,913m reflecting higher cards balances, including the Gap
portfolio acquisition, partially offset by higher customer
acquisition costs
|
|
|
–
|
Private Bank income increased 30% to £1,014m, reflecting
client balance growth and improved margins partially offset by the
non-recurrence of a property sale gain in the prior
year
|
|
|
–
|
Payments income increased 25% to £572m driven by turnover
growth from the easing of lockdown restrictions
|
●
|
Total operating expenses increased 26% to
£11,997m
|
|
–
|
CIB total operating expenses increased 25% to £8,945m.
Operating expenses excluding litigation and conduct charges
increased 12% to £7,756m driven by continued investment in
talent and technology, and the impact of inflation. Litigation and
conduct charges were £1,189m (2021: £237m) including
£966m from the Over-issuance of Securities and £165m
relating to the Devices Settlements4
|
|
–
|
CC&P total operating expenses increased 29% to £3,052m.
Operating expenses excluding litigation and conduct charges
increased 21% to £2,738m, including higher investment spend
reflecting an increase in marketing and partnership costs.
Litigation and conduct charges were
£314m (2021: £108m) mainly driven by customer remediation
costs relating to legacy loan portfolios
|
●
|
Credit impairment charges were £933m (2021: £288m net
release) driven by a deteriorating macroeconomic
forecast
|
|
–
|
CIB credit impairment charges of £119m (2021: £473m net
release) were driven by a net increase in modelled impairment and
single name charges partially offset by the benefit of credit
protection
|
|
–
|
CC&P credit impairment charges increased to £814m (2021:
£185m), driven by higher balances in US cards, including the
day one impact of acquiring the Gap portfolio, macroeconomic
deterioration and a gradual increase in delinquencies, partially
offset by the utilisation of economic uncertainty PMAs and the
release of COVID-19 related adjustments informed by refreshed
macroeconomic scenarios. As at 31 December 2022, US cards 30 and 90
day arrears remain below pre-pandemic levels at 2.2% (Q421: 1.6%)
and 1.2% (Q421: 0.8%) respectively5. The US cards business is supported by a total
coverage ratio of 8.1% (December 2021: 10.6%)
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
2
|
Period covering 2014-2016. Pre 2014 data was not restated following
re-segmentation in 2016.
|
3
|
Data source: Dealogic for the period covering 1 January to 31
December 2022.
|
4
|
Refers to the settlements with the SEC and CFTC in connection with
their investigations of the use of unauthorised devices for
business communications. See Other matters on page 7.
|
5
|
As at 31 December 2019, US cards 30 and 90 days arrears were 2.7%
and 1.4% respectively.
|
Balance sheet
●
|
Loans and advances at amortised cost increased £35.8bn to
£169.6bn due to increased
lending to customers across CIB and CC&P, inclusive of the Gap
portfolio acquisition and appreciation of USD against GBP, and
increased investment in debt securities
|
●
|
Trading portfolio assets decreased £13.1bn to
£133.8bn due to a
reduction in equity securities as clients repositioned their
demand, partially offset by increased trading activity in debt
securities
|
●
|
Derivative assets and liabilities increased £40.2bn and
£32.5bn respectively to £301.7bn
and £288.9bn driven by
market volatility and increased activity
|
●
|
Financial assets at fair value through the income statement
increased £22.3bn to £210.5bn driven by increased reverse repurchase
activity
|
●
|
Deposits at amortised cost increased £28.8bn to
£287.6bn primarily due to
growth in Corporate deposits and an increase in short-term money
market deposits
|
●
|
RWAs increased to £254.8bn (December 2021:
£230.9bn) mainly resulting
from the impact of the appreciation of USD against GBP, regulatory
changes and higher CC&P balances including the Gap
portfolio
|
Head Office
|
Year ended
|
|
Three months ended
|
|
31.12.22
|
31.12.21
|
|
|
31.12.22
|
31.12.21
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
£m
|
£m
|
% Change
|
Net interest income
|
(248)
|
(392)
|
37
|
|
(324)
|
(38)
|
|
Net fee, commission and other income
|
78
|
131
|
(40)
|
|
293
|
(11)
|
|
Total income
|
(170)
|
(261)
|
35
|
|
(31)
|
(49)
|
37
|
Operating costs
|
(336)
|
(659)
|
49
|
|
(97)
|
(152)
|
36
|
UK bank levy
|
(17)
|
—
|
|
|
(17)
|
—
|
|
Litigation and conduct
|
(53)
|
(15)
|
|
|
1
|
(3)
|
|
Total operating expenses
|
(406)
|
(674)
|
40
|
|
(113)
|
(155)
|
27
|
Other net (expenses)/income
|
(22)
|
220
|
|
|
4
|
11
|
(64)
|
Loss before impairment
|
(598)
|
(715)
|
16
|
|
(140)
|
(193)
|
27
|
Credit impairment charges
|
(1)
|
—
|
|
|
(13)
|
(5)
|
|
Loss before tax
|
(599)
|
(715)
|
16
|
|
(153)
|
(198)
|
23
|
Attributable loss
|
(698)
|
(198)
|
|
|
(63)
|
(159)
|
60
|
|
|
|
|
|
|
|
|
Performance measures1
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
0.7
|
5.0
|
|
|
(2.4)
|
5.1
|
|
|
|
|
|
|
|
|
|
Balance sheet information1
|
£bn
|
£bn
|
|
|
|
|
|
Total assets
|
19.2
|
19.0
|
|
|
|
|
|
Risk weighted assets
|
8.6
|
11.0
|
|
|
|
|
|
Period end allocated tangible equity
|
(0.2)
|
5.5
|
|
|
|
|
|
2022 compared to 2021
Income statement
●
|
Loss before tax was £599m (2021: £715m)
|
●
|
Total income was an expense of £170m (2021: £261m)
primarily reflecting treasury items,
funding costs on legacy capital instruments and mark-to-market
losses on legacy investments, partially offset by hedge accounting
gains. Additionally, there was a £74m loss on sale arising
from disposals of Barclays’ equity stake in Absa, and a
£72m interest expense that became payable to a US tax
authority upon the resolution of historical tax issues. This was
partially offset by a gain of £86m from the sale and leaseback
of UK data centres and the receipt of £30m of dividends from
Absa prior to disposal
|
●
|
Total operating expenses reduced to £406m (2021:
£674m) reflecting the
non-recurrence of the £266m structural cost action charge
taken as part of the real estate review in June
2021
|
●
|
Other net income was an expense of £22m (2021: £220m
income) driven by a fair value
loss on investments held by the Business Growth Fund in which
Barclays has an associate interest
|
Balance sheet
●
|
RWAs reduced to £8.6bn (December 2021: £11.0bn)
reflecting the disposals of Barclays'
equity stake in Absa in April 2022 and September
2022
|
1
|
2021 financial and capital metrics have been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 and Restatement of financial statements
(Note 1) on page 69 for more
information.
|
Quarterly Results Summary
Barclays Group
|
|
|
|
|
|
|
|
|
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
Q2211
|
Q121
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
2,741
|
3,068
|
2,422
|
2,341
|
|
2,230
|
1,940
|
2,052
|
1,851
|
Net fee, commission and other income
|
3,060
|
2,883
|
4,286
|
4,155
|
|
2,930
|
3,525
|
3,363
|
4,049
|
Total income
|
5,801
|
5,951
|
6,708
|
6,496
|
|
5,160
|
5,465
|
5,415
|
5,900
|
Operating costs
|
(3,748)
|
(3,939)
|
(3,682)
|
(3,588)
|
|
(3,514)
|
(3,446)
|
(3,587)
|
(3,545)
|
UK bank levy
|
(176)
|
—
|
—
|
—
|
|
(170)
|
—
|
—
|
—
|
Litigation and conduct
|
(79)
|
339
|
(1,334)
|
(523)
|
|
(92)
|
(129)
|
(143)
|
(33)
|
Total operating expenses
|
(4,003)
|
(3,600)
|
(5,016)
|
(4,111)
|
|
(3,776)
|
(3,575)
|
(3,730)
|
(3,578)
|
Other net income/(expenses)
|
10
|
(1)
|
7
|
(10)
|
|
13
|
94
|
21
|
132
|
Profit before impairment
|
1,808
|
2,350
|
1,699
|
2,375
|
|
1,397
|
1,984
|
1,706
|
2,454
|
Credit impairment (charges)/releases
|
(498)
|
(381)
|
(200)
|
(141)
|
|
31
|
(120)
|
797
|
(55)
|
Profit before tax
|
1,310
|
1,969
|
1,499
|
2,234
|
|
1,428
|
1,864
|
2,503
|
2,399
|
Tax credit/(charge)
|
33
|
(249)
|
(209)
|
(614)
|
|
(104)
|
(292)
|
(246)
|
(496)
|
Profit after tax
|
1,343
|
1,720
|
1,290
|
1,620
|
|
1,324
|
1,572
|
2,257
|
1,903
|
Non-controlling interests
|
(22)
|
(2)
|
(20)
|
(1)
|
|
(27)
|
(1)
|
(15)
|
(4)
|
Other equity instrument holders
|
(285)
|
(206)
|
(199)
|
(215)
|
|
(218)
|
(197)
|
(194)
|
(195)
|
Attributable profit
|
1,036
|
1,512
|
1,071
|
1,404
|
|
1,079
|
1,374
|
2,048
|
1,704
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average tangible shareholders' equity
|
8.9%
|
12.5%
|
8.7%
|
11.5%
|
|
9.0%
|
11.4%
|
17.6%
|
14.7%
|
Average tangible shareholders' equity (£bn)
|
46.7
|
48.6
|
49.0
|
48.8
|
|
48.0
|
48.3
|
46.5
|
46.5
|
Cost: income ratio
|
69%
|
60%
|
75%
|
63%
|
|
73%
|
65%
|
69%
|
61%
|
Loan loss rate (bps)
|
49
|
36
|
20
|
15
|
|
(3)
|
13
|
(90)
|
6
|
Basic earnings per share
|
6.5p
|
9.4p
|
6.4p
|
8.4p
|
|
6.4p
|
8.0p
|
11.9p
|
9.9p
|
Basic weighted average number of shares (m)
|
15,828
|
16,148
|
16,684
|
16,682
|
|
16,985
|
17,062
|
17,140
|
17,293
|
Period end number of shares (m)
|
15,871
|
15,888
|
16,531
|
16,762
|
|
16,752
|
16,851
|
16,998
|
17,223
|
|
|
|
|
|
|
|
|
|
|
Balance sheet and capital management2
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
343.3
|
346.3
|
337.2
|
325.8
|
|
319.9
|
313.5
|
309.2
|
306.9
|
Loans and advances to banks at amortised cost
|
10.0
|
12.5
|
12.5
|
11.4
|
|
9.7
|
10.6
|
11.0
|
12.9
|
Debt securities at amortised cost
|
45.5
|
54.8
|
46.1
|
34.5
|
|
31.8
|
28.9
|
28.3
|
25.9
|
Loans and advances at amortised cost
|
398.8
|
413.7
|
395.8
|
371.7
|
|
361.5
|
353.0
|
348.5
|
345.8
|
Loans and advances at amortised cost impairment coverage
ratio
|
1.4%
|
1.4%
|
1.4%
|
1.5%
|
|
1.6%
|
1.7%
|
1.8%
|
2.2%
|
Total assets
|
1,513.7
|
1,726.9
|
1,589.2
|
1,496.1
|
|
1,384.3
|
1,406.5
|
1,376.3
|
1,379.7
|
Deposits at amortised cost
|
545.8
|
574.4
|
568.7
|
546.5
|
|
519.4
|
510.2
|
500.9
|
498.8
|
Tangible net asset value per share
|
295p
|
286p
|
297p
|
294p
|
|
291p
|
286p
|
280p
|
267p
|
Common equity tier 1 ratio
|
13.9%
|
13.8%
|
13.6%
|
13.8%
|
|
15.1%
|
15.3%
|
15.0%
|
14.6%
|
Common equity tier 1 capital
|
46.9
|
48.6
|
46.7
|
45.3
|
|
47.3
|
47.2
|
46.2
|
45.9
|
Risk weighted assets
|
336.5
|
350.8
|
344.5
|
328.8
|
|
314.1
|
307.7
|
307.4
|
313.4
|
UK leverage ratio
|
5.3%
|
5.0%
|
5.1%
|
5.0%
|
|
5.2%
|
5.1%
|
5.0%
|
5.0%
|
UK leverage exposure
|
1,130.0
|
1,232.1
|
1,151.2
|
1,123.5
|
|
1,137.9
|
1,162.7
|
1,154.9
|
1,145.4
|
Average UK leverage ratio
|
4.8%
|
4.8%
|
4.7%
|
4.8%
|
|
4.9%
|
4.9%
|
4.8%
|
4.9%
|
Average UK leverage exposure
|
1,281.0
|
1,259.6
|
1,233.5
|
1,179.4
|
|
1,229.0
|
1,201.1
|
1,192.7
|
1,174.9
|
|
|
|
|
|
|
|
|
|
|
Funding and liquidity
|
|
|
|
|
|
|
|
|
|
Group liquidity pool (£bn)
|
318
|
326
|
343
|
320
|
|
291
|
293
|
291
|
290
|
Liquidity coverage ratio
|
165%
|
151%
|
156%
|
159%
|
|
168%
|
161%
|
162%
|
161%
|
Net
stable funding ratio3
|
137%
|
|
|
|
|
|
|
|
|
Loan: deposit ratio
|
73%
|
72%
|
70%
|
68%
|
|
70%
|
69%
|
70%
|
69%
|
1
|
The comparative capital and financial metrics relating to Q221 -
Q421 have been restated to reflect the impact of the Over-issuance
of Securities. See Basis of preparation on page 55 and Restatement
of financial statements (Note 1) on page 69 for more information.
|
2
|
Refer to pages 54 to 62 for
further information on how capital, RWAs and leverage are
calculated.
|
3
|
Represents average of the last four spot quarter end
positions.
|
Quarterly Results by Business
Barclays UK
|
|
|
|
|
|
|
|
|
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Q221
|
Q121
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,600
|
1,561
|
1,393
|
1,339
|
|
1,313
|
1,303
|
1,305
|
1,281
|
Net fee, commission and other income
|
370
|
355
|
331
|
310
|
|
386
|
335
|
318
|
295
|
Total income
|
1,970
|
1,916
|
1,724
|
1,649
|
|
1,699
|
1,638
|
1,623
|
1,576
|
Operating costs
|
(1,108)
|
(1,069)
|
(1,085)
|
(998)
|
|
(1,202)
|
(1,041)
|
(1,078)
|
(1,036)
|
UK bank levy
|
(26)
|
—
|
—
|
—
|
|
(36)
|
—
|
—
|
—
|
Litigation and conduct
|
(13)
|
(3)
|
(16)
|
(9)
|
|
(5)
|
(10)
|
(19)
|
(3)
|
Total operating expenses
|
(1,147)
|
(1,072)
|
(1,101)
|
(1,007)
|
|
(1,243)
|
(1,051)
|
(1,097)
|
(1,039)
|
Other net income/(expenses)
|
1
|
(1)
|
—
|
—
|
|
(1)
|
1
|
—
|
—
|
Profit before impairment
|
824
|
843
|
623
|
642
|
|
455
|
588
|
526
|
537
|
Credit impairment (charges)/releases
|
(157)
|
(81)
|
—
|
(48)
|
|
59
|
(137)
|
520
|
(77)
|
Profit before tax
|
667
|
762
|
623
|
594
|
|
514
|
451
|
1,046
|
460
|
Attributable profit
|
474
|
549
|
458
|
396
|
|
420
|
317
|
721
|
298
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
205.1
|
205.1
|
205.9
|
207.3
|
|
208.8
|
208.6
|
207.8
|
205.7
|
Total assets
|
313.2
|
316.8
|
318.8
|
317.2
|
|
321.2
|
312.1
|
311.2
|
309.1
|
Customer deposits at amortised cost
|
258.0
|
261.0
|
261.5
|
260.3
|
|
260.6
|
256.8
|
255.5
|
247.5
|
Loan: deposit ratio
|
87%
|
86%
|
85%
|
85%
|
|
85%
|
86%
|
87%
|
88%
|
Risk weighted assets
|
73.1
|
73.2
|
72.2
|
72.7
|
|
72.3
|
73.2
|
72.2
|
72.7
|
Period end allocated tangible equity
|
10.1
|
10.1
|
9.9
|
10.1
|
|
10.0
|
10.0
|
9.9
|
10.0
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
18.7%
|
22.1%
|
18.4%
|
15.6%
|
|
16.8%
|
12.7%
|
29.1%
|
12.0%
|
Average allocated tangible equity (£bn)
|
10.2
|
9.9
|
10.0
|
10.1
|
|
10.0
|
10.0
|
9.9
|
9.9
|
Cost: income ratio
|
58%
|
56%
|
64%
|
61%
|
|
73%
|
64%
|
68%
|
66%
|
Loan loss rate (bps)
|
27
|
14
|
—
|
9
|
|
(10)
|
24
|
(93)
|
14
|
Net interest margin
|
3.10%
|
3.01%
|
2.71%
|
2.62%
|
|
2.49%
|
2.49%
|
2.55%
|
2.54%
|
Analysis of Barclays UK
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Q221
|
Q121
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Personal Banking
|
1,229
|
1,212
|
1,077
|
1,022
|
|
983
|
990
|
987
|
923
|
Barclaycard Consumer UK
|
269
|
283
|
265
|
276
|
|
352
|
293
|
290
|
315
|
Business Banking
|
472
|
421
|
382
|
351
|
|
364
|
355
|
346
|
338
|
Total income
|
1,970
|
1,916
|
1,724
|
1,649
|
|
1,699
|
1,638
|
1,623
|
1,576
|
|
|
|
|
|
|
|
|
|
|
Analysis of credit impairment (charges)/releases
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
(120)
|
(26)
|
(42)
|
21
|
|
8
|
(30)
|
72
|
(22)
|
Barclaycard Consumer UK
|
(12)
|
2
|
84
|
(44)
|
|
114
|
(108)
|
434
|
(36)
|
Business Banking
|
(25)
|
(57)
|
(42)
|
(25)
|
|
(63)
|
1
|
14
|
(19)
|
Total credit impairment (charges)/releases
|
(157)
|
(81)
|
—
|
(48)
|
|
59
|
(137)
|
520
|
(77)
|
|
|
|
|
|
|
|
|
|
|
Analysis of loans and advances to customers at amortised
cost
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Personal Banking
|
169.7
|
168.7
|
167.1
|
166.5
|
|
165.4
|
164.6
|
162.4
|
160.4
|
Barclaycard Consumer UK
|
9.2
|
9.0
|
8.8
|
8.4
|
|
8.7
|
8.6
|
8.8
|
8.7
|
Business Banking
|
26.2
|
27.4
|
30.0
|
32.4
|
|
34.7
|
35.4
|
36.6
|
36.6
|
Total loans and advances to customers at amortised
cost
|
205.1
|
205.1
|
205.9
|
207.3
|
|
208.8
|
208.6
|
207.8
|
205.7
|
|
|
|
|
|
|
|
|
|
|
Analysis of customer deposits at amortised cost
|
|
|
|
|
|
|
|
|
|
Personal Banking
|
195.6
|
197.3
|
197.0
|
196.6
|
|
196.4
|
193.3
|
191.0
|
186.0
|
Barclaycard Consumer UK
|
—
|
—
|
—
|
—
|
|
—
|
—
|
0.1
|
0.1
|
Business Banking
|
62.4
|
63.7
|
64.5
|
63.7
|
|
64.2
|
63.5
|
64.4
|
61.4
|
Total customer deposits at amortised cost
|
258.0
|
261.0
|
261.5
|
260.3
|
|
260.6
|
256.8
|
255.5
|
247.5
|
Barclays International
|
|
|
|
|
|
|
|
|
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
Q2211
|
Q121
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
1,465
|
1,497
|
1,029
|
936
|
|
955
|
749
|
811
|
748
|
Net trading income
|
1,169
|
1,328
|
2,766
|
2,446
|
|
789
|
1,515
|
1,455
|
1,934
|
Net fee, commission and other income
|
1,228
|
1,240
|
1,321
|
1,442
|
|
1,766
|
1,673
|
1,553
|
1,717
|
Total income
|
3,862
|
4,065
|
5,116
|
4,824
|
|
3,510
|
3,937
|
3,819
|
4,399
|
Operating costs
|
(2,543)
|
(2,776)
|
(2,537)
|
(2,505)
|
|
(2,160)
|
(2,310)
|
(2,168)
|
(2,438)
|
UK bank levy
|
(133)
|
—
|
—
|
—
|
|
(134)
|
—
|
—
|
—
|
Litigation and conduct
|
(67)
|
396
|
(1,319)
|
(513)
|
|
(84)
|
(100)
|
(140)
|
(21)
|
Total operating expenses
|
(2,743)
|
(2,380)
|
(3,856)
|
(3,018)
|
|
(2,378)
|
(2,410)
|
(2,308)
|
(2,459)
|
Other net income
|
5
|
10
|
5
|
8
|
|
3
|
15
|
13
|
9
|
Profit before impairment
|
1,124
|
1,695
|
1,265
|
1,814
|
|
1,135
|
1,542
|
1,524
|
1,949
|
Credit impairment (charges)/releases
|
(328)
|
(295)
|
(209)
|
(101)
|
|
(23)
|
18
|
271
|
22
|
Profit before tax
|
796
|
1,400
|
1,056
|
1,713
|
|
1,112
|
1,560
|
1,795
|
1,971
|
Attributable profit
|
625
|
1,136
|
783
|
1,300
|
|
818
|
1,191
|
1,207
|
1,431
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
133.7
|
137.0
|
126.7
|
113.9
|
|
106.4
|
99.9
|
96.3
|
97.1
|
Loans and advances to banks at amortised cost
|
8.7
|
11.0
|
11.3
|
10.2
|
|
8.4
|
9.4
|
9.9
|
12.0
|
Debt securities at amortised cost
|
27.2
|
36.2
|
29.3
|
20.7
|
|
19.0
|
16.6
|
15.7
|
14.4
|
Loans and advances at amortised cost
|
169.6
|
184.2
|
167.3
|
144.8
|
|
133.8
|
125.9
|
121.9
|
123.5
|
Trading portfolio assets
|
133.8
|
126.3
|
126.9
|
134.1
|
|
146.9
|
144.8
|
147.1
|
131.1
|
Derivative financial instrument assets
|
301.7
|
415.7
|
343.5
|
288.8
|
|
261.5
|
257.0
|
255.4
|
269.4
|
Financial assets at fair value through the income
statement
|
210.5
|
244.7
|
209.3
|
203.8
|
|
188.2
|
200.5
|
190.4
|
197.5
|
Cash collateral and settlement balances
|
107.7
|
163.3
|
128.5
|
132.0
|
|
88.1
|
115.9
|
108.5
|
109.7
|
Other assets
|
258.0
|
257.2
|
275.1
|
255.5
|
|
225.6
|
231.8
|
223.5
|
221.7
|
Total assets
|
1,181.3
|
1,391.4
|
1,250.6
|
1,159.0
|
|
1,044.1
|
1,075.9
|
1,046.8
|
1,052.9
|
Deposits at amortised cost
|
287.6
|
313.2
|
307.4
|
286.1
|
|
258.8
|
253.3
|
245.4
|
251.2
|
Derivative financial instrument liabilities
|
288.9
|
394.2
|
321.2
|
277.2
|
|
256.4
|
252.3
|
246.9
|
260.2
|
Loan: deposit ratio
|
59%
|
59%
|
54%
|
51%
|
|
52%
|
50%
|
50%
|
49%
|
Risk weighted assets
|
254.8
|
269.3
|
263.8
|
245.1
|
|
230.9
|
222.7
|
223.2
|
230.0
|
Period end allocated tangible equity
|
36.8
|
38.8
|
38.0
|
35.6
|
|
33.2
|
31.8
|
31.8
|
32.7
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
6.4%
|
11.6%
|
8.4%
|
14.8%
|
|
9.9%
|
14.9%
|
14.9%
|
17.7%
|
Average allocated tangible equity (£bn)
|
38.9
|
39.1
|
37.3
|
35.1
|
|
32.9
|
31.8
|
32.4
|
32.3
|
Cost: income ratio
|
71%
|
59%
|
75%
|
63%
|
|
68%
|
61%
|
60%
|
56%
|
Loan loss rate (bps)
|
75
|
62
|
49
|
28
|
|
7
|
(6)
|
(87)
|
(7)
|
Net interest margin
|
5.71%
|
5.58%
|
4.52%
|
4.15%
|
|
4.14%
|
4.02%
|
3.96%
|
3.92%
|
1
|
The comparative capital and financial metrics relating to Q221 -
Q421 have been restated to reflect the impact of the Over-issuance
of Securities. See Basis of preparation on page 55 and Restatement
of financial statements (Note 1) on page 69 for more information.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Investment Bank
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q4211
|
Q3211
|
Q2211
|
Q121
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
548
|
606
|
410
|
385
|
|
432
|
279
|
370
|
270
|
Net trading income
|
1,201
|
1,344
|
2,738
|
2,450
|
|
774
|
1,467
|
1,494
|
1,917
|
Net fee, commission and other income
|
827
|
871
|
885
|
1,103
|
|
1,426
|
1,383
|
1,115
|
1,407
|
Total income
|
2,576
|
2,821
|
4,033
|
3,938
|
|
2,632
|
3,129
|
2,979
|
3,594
|
Operating costs
|
(1,796)
|
(2,043)
|
(1,870)
|
(1,921)
|
|
(1,562)
|
(1,747)
|
(1,623)
|
(1,886)
|
UK bank levy
|
(126)
|
—
|
—
|
—
|
|
(128)
|
—
|
—
|
—
|
Litigation and conduct
|
(55)
|
498
|
(1,314)
|
(318)
|
|
(59)
|
(99)
|
(78)
|
(1)
|
Total operating expenses
|
(1,977)
|
(1,545)
|
(3,184)
|
(2,239)
|
|
(1,749)
|
(1,846)
|
(1,701)
|
(1,887)
|
Other net income
|
2
|
—
|
—
|
—
|
|
1
|
—
|
—
|
1
|
Profit before impairment
|
601
|
1,276
|
849
|
1,699
|
|
884
|
1,283
|
1,278
|
1,708
|
Credit impairment (charges)/releases
|
(41)
|
(46)
|
(65)
|
33
|
|
73
|
128
|
229
|
43
|
Profit before tax
|
560
|
1,230
|
784
|
1,732
|
|
957
|
1,411
|
1,507
|
1,751
|
Attributable profit
|
454
|
1,015
|
579
|
1,316
|
|
695
|
1,085
|
989
|
1,263
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
90.5
|
93.6
|
86.5
|
79.5
|
|
73.4
|
68.3
|
66.3
|
68.5
|
Loans and advances to banks at amortised cost
|
8.1
|
10.2
|
10.0
|
9.4
|
|
7.6
|
8.9
|
9.0
|
11.4
|
Debt securities at amortised cost
|
27.2
|
36.2
|
29.3
|
20.7
|
|
19.0
|
16.6
|
15.7
|
14.4
|
Loans and advances at amortised cost
|
125.8
|
140.0
|
125.8
|
109.6
|
|
100.0
|
93.8
|
91.0
|
94.3
|
Trading portfolio assets
|
133.7
|
126.1
|
126.7
|
134.0
|
|
146.7
|
144.7
|
147.0
|
130.9
|
Derivative financial instruments assets
|
301.6
|
415.5
|
343.4
|
288.7
|
|
261.5
|
256.9
|
255.3
|
269.4
|
Financial assets at fair value through the income
statement
|
210.5
|
244.6
|
209.2
|
203.8
|
|
188.1
|
200.4
|
190.3
|
197.3
|
Cash collateral and settlement balances
|
106.9
|
162.6
|
127.7
|
131.2
|
|
87.2
|
115.1
|
107.7
|
108.8
|
Other assets
|
222.6
|
220.6
|
237.2
|
222.5
|
|
195.8
|
200.4
|
192.5
|
190.8
|
Total assets
|
1,101.1
|
1,309.4
|
1,170.0
|
1,089.8
|
|
979.3
|
1,011.3
|
983.8
|
991.5
|
Deposits at amortised cost
|
205.8
|
229.5
|
229.5
|
214.7
|
|
189.4
|
185.8
|
178.2
|
185.2
|
Derivative financial instrument liabilities
|
288.9
|
394.2
|
321.2
|
277.1
|
|
256.4
|
252.2
|
246.8
|
260.2
|
Risk weighted assets
|
215.9
|
230.6
|
227.6
|
213.5
|
|
200.7
|
192.5
|
194.3
|
201.3
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
5.4%
|
11.9%
|
7.1%
|
17.1%
|
|
9.7%
|
15.6%
|
14.0%
|
17.9%
|
Average allocated tangible equity (£bn)
|
33.7
|
34.0
|
32.7
|
30.8
|
|
28.7
|
27.8
|
28.4
|
28.2
|
Cost: income ratio
|
77%
|
55%
|
79%
|
57%
|
|
66%
|
59%
|
57%
|
53%
|
Loan loss rate (bps)
|
13
|
13
|
20
|
(12)
|
|
(29)
|
(54)
|
(100)
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
FICC
|
976
|
1,546
|
1,529
|
1,644
|
|
546
|
803
|
895
|
1,204
|
Equities
|
440
|
246
|
1,411
|
1,052
|
|
501
|
757
|
777
|
932
|
Global Markets
|
1,416
|
1,792
|
2,940
|
2,696
|
|
1,047
|
1,560
|
1,672
|
2,136
|
Advisory
|
197
|
150
|
236
|
185
|
|
287
|
253
|
218
|
163
|
Equity capital markets
|
40
|
42
|
37
|
47
|
|
158
|
186
|
226
|
243
|
Debt capital markets
|
243
|
341
|
281
|
416
|
|
511
|
532
|
429
|
453
|
Investment Banking fees
|
480
|
533
|
554
|
648
|
|
956
|
971
|
873
|
859
|
Corporate lending
|
(128)
|
(181)
|
(47)
|
125
|
|
176
|
168
|
38
|
206
|
Transaction banking
|
808
|
677
|
586
|
469
|
|
453
|
430
|
396
|
393
|
Corporate
|
680
|
496
|
539
|
594
|
|
629
|
598
|
434
|
599
|
Total income
|
2,576
|
2,821
|
4,033
|
3,938
|
|
2,632
|
3,129
|
2,979
|
3,594
|
1
|
The comparative capital and financial metrics relating to Q221 -
Q421 have been restated to reflect the impact of the Over-issuance
of Securities. See Basis of preparation on page 55 and Restatement
of financial statements (Note 1) on page 69 for more information.
|
Analysis of Barclays International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer, Cards and Payments
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Q221
|
Q121
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
918
|
891
|
619
|
551
|
|
522
|
471
|
441
|
478
|
Net fee, commission, trading and other income
|
368
|
353
|
464
|
335
|
|
356
|
337
|
399
|
327
|
Total income
|
1,286
|
1,244
|
1,083
|
886
|
|
878
|
808
|
840
|
805
|
Operating costs
|
(747)
|
(733)
|
(667)
|
(584)
|
|
(598)
|
(563)
|
(545)
|
(552)
|
UK bank levy
|
(7)
|
—
|
—
|
—
|
|
(6)
|
—
|
—
|
—
|
Litigation and conduct
|
(12)
|
(102)
|
(5)
|
(195)
|
|
(25)
|
(1)
|
(62)
|
(20)
|
Total operating expenses
|
(766)
|
(835)
|
(672)
|
(779)
|
|
(629)
|
(564)
|
(607)
|
(572)
|
Other net income
|
3
|
10
|
5
|
8
|
|
2
|
15
|
13
|
8
|
Profit before impairment
|
523
|
419
|
416
|
115
|
|
251
|
259
|
246
|
241
|
Credit impairment (charges)/releases
|
(287)
|
(249)
|
(144)
|
(134)
|
|
(96)
|
(110)
|
42
|
(21)
|
Profit/(loss) before tax
|
236
|
170
|
272
|
(19)
|
|
155
|
149
|
288
|
220
|
Attributable profit/(loss)
|
171
|
121
|
204
|
(16)
|
|
123
|
106
|
218
|
168
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Loans and advances to customers at amortised cost
|
43.2
|
43.4
|
40.2
|
34.4
|
|
33.0
|
31.6
|
30.0
|
28.6
|
Total assets
|
80.2
|
82.0
|
80.6
|
69.2
|
|
64.8
|
64.6
|
63.0
|
61.4
|
Deposits at amortised cost
|
81.8
|
83.7
|
77.9
|
71.4
|
|
69.4
|
67.5
|
67.2
|
66.0
|
Risk weighted assets
|
38.9
|
38.7
|
36.2
|
31.6
|
|
30.2
|
30.2
|
29.0
|
28.8
|
|
|
|
|
|
|
|
|
|
|
Performance measures
|
|
|
|
|
|
|
|
|
|
Return on average allocated tangible equity
|
13.0%
|
9.5%
|
17.8%
|
(1.5)%
|
|
11.7%
|
10.5%
|
21.8%
|
16.5%
|
Average allocated tangible equity (£bn)
|
5.2
|
5.1
|
4.6
|
4.3
|
|
4.2
|
4.0
|
4.0
|
4.1
|
Cost: income ratio
|
60%
|
67%
|
62%
|
88%
|
|
72%
|
70%
|
72%
|
71%
|
Loan loss rate (bps)
|
245
|
211
|
132
|
145
|
|
105
|
127
|
(49)
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
International Cards and Consumer Bank
|
860
|
824
|
691
|
538
|
|
552
|
490
|
517
|
533
|
Private Bank
|
285
|
270
|
245
|
214
|
|
200
|
188
|
214
|
179
|
Payments
|
141
|
150
|
147
|
134
|
|
126
|
130
|
109
|
93
|
Total income
|
1,286
|
1,244
|
1,083
|
886
|
|
878
|
808
|
840
|
805
|
Head Office
|
|
|
|
|
|
|
|
|
|
|
Q422
|
Q322
|
Q222
|
Q122
|
|
Q421
|
Q321
|
Q221
|
Q121
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Net interest income
|
(324)
|
10
|
—
|
66
|
|
(38)
|
(112)
|
(64)
|
(178)
|
Net fee, commission and other income
|
293
|
(40)
|
(132)
|
(43)
|
|
(11)
|
2
|
37
|
103
|
Total income
|
(31)
|
(30)
|
(132)
|
23
|
|
(49)
|
(110)
|
(27)
|
(75)
|
Operating costs
|
(97)
|
(94)
|
(60)
|
(85)
|
|
(152)
|
(95)
|
(341)
|
(71)
|
UK bank levy
|
(17)
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
Litigation and conduct
|
1
|
(54)
|
1
|
(1)
|
|
(3)
|
(19)
|
16
|
(9)
|
Total operating expenses
|
(113)
|
(148)
|
(59)
|
(86)
|
|
(155)
|
(114)
|
(325)
|
(80)
|
Other net income/(expenses)
|
4
|
(10)
|
2
|
(18)
|
|
11
|
78
|
8
|
123
|
Loss before impairment
|
(140)
|
(188)
|
(189)
|
(81)
|
|
(193)
|
(146)
|
(344)
|
(32)
|
Credit impairment (charges)/releases
|
(13)
|
(5)
|
9
|
8
|
|
(5)
|
(1)
|
6
|
—
|
Loss before tax
|
(153)
|
(193)
|
(180)
|
(73)
|
|
(198)
|
(147)
|
(338)
|
(32)
|
Attributable (loss)/profit
|
(63)
|
(173)
|
(170)
|
(292)
|
|
(159)
|
(134)
|
120
|
(25)
|
|
|
|
|
|
|
|
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
£bn
|
£bn
|
Total assets
|
19.2
|
18.7
|
19.8
|
19.9
|
|
19.0
|
18.5
|
18.3
|
17.7
|
Risk
weighted assets1
|
8.6
|
8.2
|
8.6
|
11.0
|
|
11.0
|
11.8
|
12.0
|
10.7
|
Period
end allocated tangible equity1
|
(0.2)
|
(3.5)
|
1.1
|
3.6
|
|
5.5
|
6.3
|
5.9
|
3.3
|
|
|
|
|
|
|
|
|
|
|
Performance measures1
|
|
|
|
|
|
|
|
|
|
Average allocated tangible equity (£bn)
|
(2.4)
|
(0.4)
|
1.7
|
3.6
|
|
5.1
|
6.5
|
4.2
|
4.3
|
1
|
The comparative capital and financial metrics relating to Q221 -
Q421 have been restated to reflect the impact of the Over-issuance
of Securities. See Basis of preparation on page 55 and Restatement
of financial statements (Note 1) on page 69 for more information.
|
Performance Management
Margins and balances
|
|
Year ended 31.12.22
|
Year ended 31.12.21
|
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Net interest income
|
Average customer assets
|
Net interest margin
|
|
£m
|
£m
|
%
|
£m
|
£m
|
%
|
Barclays UK
|
5,893
|
205,972
|
2.86
|
5,202
|
206,628
|
2.52
|
Corporate
and Investment Bank1
|
1,796
|
56,008
|
3.21
|
1,238
|
47,725
|
2.59
|
Consumer, Cards and Payments
|
2,979
|
39,193
|
7.60
|
1,911
|
30,805
|
6.21
|
Barclays
International1
|
4,775
|
95,201
|
5.02
|
3,149
|
78,530
|
4.01
|
Total Barclays UK and Barclays International
|
10,668
|
301,173
|
3.54
|
8,351
|
285,158
|
2.93
|
Other2
|
(96)
|
|
|
(278)
|
|
|
Total Barclays Group
|
10,572
|
|
|
8,073
|
|
|
1
|
CIB and Barclays International margins include the lending related
investment bank business.
|
2
|
Other includes Head Office and the non-lending related investment
bank businesses not included in Barclays International
margins.
|
The
Group NIM increased 61bps to
3.54%. Barclays UK NIM
increased 34bps to 2.86%, reflecting the impact of higher UK
interest rates. Barclays International NIM increased 101bps to 5.02%. CIB NIM increased 62bps to 3.21% and CC&P NIM increased
139bps to 7.60%, reflecting the impact of balance
growth and higher interest rates.
The
Group’s combined product and equity structural hedge notional
as at 31 December 2022 was
£263bn (31 December 2021: £228bn), with an average duration of
approximately 2.5 years
(2021: average duration
close to 3 years). Gross
structural hedge contributions of £2,196m (2021: £1,415m) and net structural hedge
contributions of £(1,544)m
(2021: £1,187m) are included in Group net interest
income. Gross structural hedge contributions represent the absolute
level of interest earned from the fixed receipts on swaps in the
structural hedge, while the net structural hedge contributions
represent the net interest earned on the difference between the
structural hedge rate and prevailing floating rates.
Quarterly analysis for Barclays UK and Barclays
International
|
Net interest income
|
Average customer assets
|
Net interest margin
|
Three months ended 31.12.22
|
£m
|
£m
|
%
|
Barclays UK
|
1,600
|
204,941
|
3.10
|
Corporate and Investment Bank
|
556
|
59,146
|
3.73
|
Consumer, Cards and Payments
|
918
|
43,319
|
8.40
|
Barclays
International1
|
1,474
|
102,465
|
5.71
|
Total Barclays UK and Barclays International
|
3,074
|
307,406
|
3.97
|
|
|
|
|
Three months ended 30.09.22
|
|
|
|
Barclays UK
|
1,561
|
205,881
|
3.01
|
Corporate and Investment Bank
|
529
|
58,891
|
3.56
|
Consumer, Cards and Payments
|
891
|
42,019
|
8.41
|
Barclays
International1
|
1,420
|
100,910
|
5.58
|
Total Barclays UK and Barclays International
|
2,981
|
306,791
|
3.85
|
|
|
|
|
Three months ended 30.06.22
|
|
|
|
Barclays UK
|
1,393
|
205,834
|
2.71
|
Corporate and Investment Bank
|
397
|
55,181
|
2.88
|
Consumer, Cards and Payments
|
619
|
37,190
|
6.68
|
Barclays
International1
|
1,016
|
92,371
|
4.41
|
Total Barclays UK and Barclays International
|
2,409
|
298,205
|
3.24
|
|
|
|
|
Three months ended 31.03.22
|
|
|
|
Barclays UK
|
1,339
|
207,607
|
2.62
|
Corporate and Investment Bank
|
316
|
50,798
|
2.52
|
Consumer, Cards and Payments
|
551
|
34,040
|
6.56
|
Barclays
International1
|
867
|
84,838
|
4.15
|
Total Barclays UK and Barclays International
|
2,206
|
292,445
|
3.06
|
|
|
|
|
Three months ended 31.12.21
|
|
|
|
Barclays UK
|
1,313
|
209,064
|
2.49
|
Corporate and Investment Bank
|
326
|
48,310
|
2.67
|
Consumer, Cards and Payments
|
522
|
32,934
|
6.29
|
Barclays
International1
|
848
|
81,244
|
4.14
|
Total Barclays UK and Barclays International
|
2,161
|
290,308
|
2.95
|
1
|
Barclays International margins include the lending related
investment bank business.
|
Remuneration
Deferred
bonuses are payable only once an employee meets certain conditions,
including a specified period of future service. This creates a
timing difference between the communication of the bonus pool and
the charges that are recognised in the income statement which are
reconciled in the table below to show the charge for performance
costs. Refer to the Remuneration Report on pages 197 to 245 of the
Barclays PLC Annual Report 2022 for further detail on remuneration.
The table below includes the other elements of compensation and
staff costs.
|
Year ended 31.12.22
|
Year ended 31.12.21
|
|
|
£m
|
£m
|
% Change
|
Incentive awards granted:
|
|
|
|
Current year bonus
|
1,241
|
1,278
|
3
|
Deferred bonus
|
549
|
667
|
18
|
Total incentive awards granted
|
1,790
|
1,945
|
8
|
|
|
|
|
Reconciliation of incentive awards granted to income statement
charge:
|
|
|
|
Less: deferred bonuses granted but not charged in current
year
|
(388)
|
(457)
|
15
|
Add: current year charges for deferred bonuses from previous
years
|
399
|
280
|
(43)
|
Other differences between incentive awards granted and income
statement charge
|
35
|
(23)
|
252
|
Income statement charge for performance costs
|
1,836
|
1,745
|
(5)
|
|
|
|
|
Other income statement charges:
|
|
|
|
Salaries
|
4,732
|
4,290
|
(10)
|
Social security costs
|
714
|
619
|
(15)
|
Post-retirement
benefits1
|
563
|
539
|
(4)
|
Other compensation costs
|
504
|
431
|
(17)
|
Total compensation costs2
|
8,349
|
7,624
|
(10)
|
|
|
|
|
Other resourcing costs
|
|
|
|
Outsourcing
|
607
|
357
|
(70)
|
Redundancy and restructuring
|
(7)
|
296
|
102
|
Temporary staff costs
|
113
|
109
|
(4)
|
Other
|
190
|
125
|
(52)
|
Total other resourcing costs
|
903
|
887
|
(2)
|
|
|
|
|
Total staff costs
|
9,252
|
8,511
|
(9)
|
|
|
|
|
Group compensation costs as a % of total income
|
33.5
|
34.7
|
|
Group staff costs as a % of total income
|
37.1
|
38.8
|
|
One of
the primary considerations for performance costs are Group and
business level returns, alongside other financial and non-financial
measures, including strategic delivery, risk and conduct, aligning
colleague, shareholder and wider stakeholder
interests.
1
|
Post-retirement benefits charge includes £313m (2021: £289m) in respect of defined contribution
schemes and £250m (2021:
£250m) in respect of
defined benefit schemes.
|
2
|
£604m (2021:
£484m) of Group
compensation was capitalised as internally generated software and
excluded from the Staff cost disclosed above.
|
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
|
2024 and
|
|
31.12.21
|
31.12.22
|
|
31.12.23
|
beyond
|
|
£m
|
£m
|
|
£m
|
£m
|
Deferred bonuses from 2019 and earlier bonus pools
|
141
|
52
|
|
50
|
—
|
Deferred bonuses from 2020 bonus pool
|
139
|
133
|
|
55
|
10
|
Deferred bonuses from 2021 bonus pool
|
210
|
214
|
|
165
|
102
|
Deferred bonuses from 2022 bonus pool
|
—
|
161
|
|
152
|
177
|
Income statement charge for deferred bonuses
|
490
|
560
|
|
422
|
289
|
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 2023
and beyond.
|
Charging of deferred bonus
profile1
Grant date
|
Expected payment
date(s)2
and percentage of the deferred bonus
paid
|
Year
|
Income statement charge % profile of
2022 onwards3,4
|
March 2023
|
|
2022
|
33%
|
|
|
2023
|
31%
|
|
March 2024 (33.3%)
|
2024
|
21%
|
|
March 2025 (33.3%)
|
2025
|
13%
|
|
March 2026 (33.3%)
|
2026
|
2%
|
1
|
Represents a typical vesting schedule for deferred awards. Certain
awards may be subject to a 3, 4, 5 or 7 year deferral in line with
regulatory requirements.
|
2
|
Share awards may be subject to an additional holding
period.
|
3
|
The income statement charge is based on the period over which
conditions are met.
|
4
|
Income statement charge profile % disclosed as a percentage of the
award excluding lapse. The percentages have changed from last year
due to introduction of 4 year awards.
|
Risk Management
Risk management and principal risks
The
roles and responsibilities of the business groups, Risk and
Compliance in the management of risk in the Group are defined in
the Enterprise Risk Management Framework. The purpose of the
framework is to identify the principal risks of the Group, the
process by which the Group sets its appetite for these risks in its
business activities, and the consequent limits which it places on
related risk taking.
The
framework identifies nine principal risks: credit risk, market
risk, treasury and capital risk, climate risk, operational risk,
model risk, conduct risk, reputation risk and legal risk. Further
detail on the Group’s principal risks and previously
identified material existing and emerging risks and how such risks
are managed is available in the Barclays PLC Annual Report 2022, 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
Loans and advances at amortised cost by stage
The table below presents a stage allocation and business segment
analysis of loans and advances at amortised cost by gross exposure,
impairment allowance, impairment charge and coverage ratio as at 31
December 2022. Also included are stage allocation of off-balance
sheet loan commitments and financial guarantee contracts by gross
exposure, impairment allowance and coverage as at 31 December
2022.
Impairment allowance under IFRS 9 considers both the drawn and the
undrawn counterparty exposure. For retail portfolios, the total
impairment allowance is allocated to gross loans and advances to
the extent allowance does not exceed the drawn exposure and any
excess is reported on the liabilities side of the balance sheet as
a provision. For wholesale portfolios, impairment allowance on
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 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
160,424
|
24,837
|
2,711
|
187,972
|
|
232
|
718
|
485
|
1,435
|
186,537
|
Barclays International
|
33,735
|
4,399
|
1,793
|
39,927
|
|
392
|
1,200
|
949
|
2,541
|
37,386
|
Head Office
|
3,644
|
252
|
661
|
4,557
|
|
3
|
24
|
359
|
386
|
4,171
|
Total Barclays Group retail
|
197,803
|
29,488
|
5,165
|
232,456
|
|
627
|
1,942
|
1,793
|
4,362
|
228,094
|
Barclays UK
|
34,858
|
2,954
|
805
|
38,617
|
|
129
|
109
|
96
|
334
|
38,283
|
Barclays International
|
117,692
|
14,298
|
1,098
|
133,088
|
|
301
|
265
|
312
|
878
|
132,210
|
Head Office
|
192
|
—
|
18
|
210
|
|
—
|
—
|
18
|
18
|
192
|
Total Barclays Group wholesale1
|
152,742
|
17,252
|
1,921
|
171,915
|
|
430
|
374
|
426
|
1,230
|
170,685
|
Total loans and advances at amortised cost
|
350,545
|
46,740
|
7,086
|
404,371
|
|
1,057
|
2,316
|
2,219
|
5,592
|
398,779
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
372,945
|
30,694
|
1,180
|
404,819
|
|
245
|
315
|
23
|
583
|
404,236
|
Total3
|
723,490
|
77,434
|
8,266
|
809,190
|
|
1,302
|
2,631
|
2,242
|
6,175
|
803,015
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.22
|
|
Year ended 31.12.22
|
|
|
Coverage ratio
|
|
Loan impairment charge/(release) and loan loss rate
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge/(release)
|
Loan loss rate
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
Barclays UK
|
0.1
|
2.9
|
17.9
|
0.8
|
|
|
169
|
|
9
|
|
Barclays International
|
1.2
|
27.3
|
52.9
|
6.4
|
|
|
763
|
|
191
|
|
Head Office
|
0.1
|
9.5
|
54.3
|
8.5
|
|
|
—
|
|
|
|
Total Barclays Group retail
|
0.3
|
6.6
|
34.7
|
1.9
|
|
|
932
|
|
40
|
|
Barclays UK
|
0.4
|
3.7
|
11.9
|
0.9
|
|
|
106
|
|
27
|
|
Barclays International
|
0.3
|
1.9
|
28.4
|
0.7
|
|
|
127
|
|
10
|
|
Head Office
|
—
|
—
|
100
|
8.6
|
|
|
—
|
|
|
|
Total Barclays Group wholesale1
|
0.3
|
2.2
|
22.2
|
0.7
|
|
|
233
|
|
14
|
|
Total loans and advances at amortised cost
|
0.3
|
5.0
|
31.3
|
1.4
|
|
|
1,165
|
|
29
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
0.1
|
1.0
|
1.9
|
0.1
|
|
|
18
|
|
|
|
Other
financial assets subject to impairment3
|
|
|
|
|
|
|
37
|
|
|
|
Total4
|
0.2
|
3.4
|
27.1
|
0.8
|
|
|
1,220
|
|
|
|
1
|
Includes Wealth UK and Private Banking exposures measured on an
individual customer exposure basis and excludes Business Banking
exposures, including lending under the government backed Bounce
Back Loan Scheme (BBLS) of £6.6bn that are managed on a
collective basis and reported within Barclays UK Retail. The net
impact is a difference in total exposure of £3.8bn of balances
reported as wholesale loans on page 31 in the Loans and advances at
amortised cost by product disclosure.
|
2
|
Excludes loan commitments and financial guarantees of £14.9bn
carried at fair value.
|
3
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.1bn and impairment allowance of £163m. This
comprises £10m ECL on £178.4bn Stage 1 assets, £9m
on £1.5bn Stage 2 fair value through other comprehensive
income assets, cash collateral and settlement balances and
£144m on £149m Stage 3 other assets.
|
4
|
The loan loss rate is 30bps after applying the total impairment
charge of £1,220m.
|
|
Gross exposure
|
|
Impairment allowance
|
Net exposure
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.21
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays UK
|
160,695
|
22,779
|
2,915
|
186,389
|
|
261
|
949
|
728
|
1,938
|
184,451
|
Barclays International
|
25,981
|
2,691
|
1,566
|
30,238
|
|
603
|
795
|
858
|
2,256
|
27,982
|
Head Office
|
3,735
|
429
|
705
|
4,869
|
|
2
|
36
|
347
|
385
|
4,484
|
Total Barclays Group retail
|
190,411
|
25,899
|
5,186
|
221,496
|
|
866
|
1,780
|
1,933
|
4,579
|
216,917
|
Barclays UK
|
35,571
|
1,917
|
969
|
38,457
|
|
153
|
43
|
111
|
307
|
38,150
|
Barclays International
|
92,341
|
13,275
|
1,059
|
106,675
|
|
187
|
192
|
458
|
837
|
105,838
|
Head Office
|
542
|
2
|
21
|
565
|
|
—
|
—
|
19
|
19
|
546
|
Total Barclays Group wholesale1
|
128,454
|
15,194
|
2,049
|
145,697
|
|
340
|
235
|
588
|
1,163
|
144,534
|
Total loans and advances at amortised cost
|
318,865
|
41,093
|
7,235
|
367,193
|
|
1,206
|
2,015
|
2,521
|
5,742
|
361,451
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
312,142
|
34,815
|
1,298
|
348,255
|
|
217
|
302
|
23
|
542
|
347,713
|
Total3
|
631,007
|
75,908
|
8,533
|
715,448
|
|
1,423
|
2,317
|
2,544
|
6,284
|
709,164
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
Year ended 31.12.21
|
|
|
Coverage ratio
|
|
Loan impairment charge/(release) and loan loss rate
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Loan impairment charge/(release)
|
Loan loss rate
|
|
|
%
|
%
|
%
|
%
|
|
£m
|
bps
|
|
Barclays UK
|
0.2
|
4.2
|
25.0
|
1.0
|
|
|
(227)
|
|
—
|
|
Barclays International
|
2.3
|
29.5
|
54.8
|
7.5
|
|
|
181
|
|
60
|
|
Head Office
|
0.1
|
8.4
|
49.2
|
7.9
|
|
|
—
|
|
—
|
|
Total Barclays Group retail
|
0.5
|
6.9
|
37.3
|
2.1
|
|
|
(46)
|
|
—
|
|
Barclays UK
|
0.4
|
2.2
|
11.5
|
0.8
|
|
|
122
|
|
32
|
|
Barclays International
|
0.2
|
1.4
|
43.2
|
0.8
|
|
|
(197)
|
|
—
|
|
Head Office
|
—
|
—
|
90.5
|
3.4
|
|
|
—
|
|
—
|
|
Total Barclays Group wholesale1
|
0.3
|
1.5
|
28.7
|
0.8
|
|
|
(75)
|
|
—
|
|
Total loans and advances at amortised cost
|
0.4
|
4.9
|
34.8
|
1.6
|
|
|
(121)
|
|
—
|
|
Off-balance
sheet loan commitments and financial guarantee
contracts2
|
0.1
|
0.9
|
1.8
|
0.2
|
|
|
(514)
|
|
|
|
Other
financial assets subject to impairment3
|
|
|
|
|
|
|
(18)
|
|
|
|
Total
|
0.2
|
3.1
|
29.8
|
0.9
|
|
|
(653)
|
|
|
|
1
|
Includes Wealth and Private Banking exposures measured on an
individual basis, and excludes Business Banking exposures,
including BBLS of £9.4bn that are managed on a collective
basis and reported within Barclays UK Retail. The net impact is a
difference in total exposure of £6.0bn of balances reported as
wholesale loans on page 31 in the Loans and advances at amortised
cost by product disclosure.
|
2
|
Excludes loan commitments and financial guarantees of £18.8bn
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
£155.2bn and impairment allowance of £114m. This
comprises £6m ECL on £154.9bn Stage 1 assets, £1m on
£157m Stage 2 fair value through other comprehensive income
assets, other assets and cash collateral and settlement balances
and £107m on £110m Stage 3 other assets.
|
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 31.12.22
|
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
|
153,672
|
15,990
|
1,684
|
526
|
18,200
|
2,414
|
174,286
|
Credit cards, unsecured loans and other retail lending
|
44,175
|
7,126
|
397
|
576
|
8,099
|
2,122
|
54,396
|
Wholesale loans
|
152,698
|
20,194
|
150
|
97
|
20,441
|
2,550
|
175,689
|
Total
|
350,545
|
43,310
|
2,231
|
1,199
|
46,740
|
7,086
|
404,371
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home loans
|
29
|
53
|
11
|
9
|
73
|
414
|
516
|
Credit cards, unsecured loans and other retail lending
|
582
|
1,483
|
129
|
220
|
1,832
|
1,278
|
3,692
|
Wholesale loans
|
446
|
403
|
6
|
2
|
411
|
527
|
1,384
|
Total
|
1,057
|
1,939
|
146
|
231
|
2,316
|
2,219
|
5,592
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
153,643
|
15,937
|
1,673
|
517
|
18,127
|
2,000
|
173,770
|
Credit cards, unsecured loans and other retail lending
|
43,593
|
5,643
|
268
|
356
|
6,267
|
844
|
50,704
|
Wholesale loans
|
152,252
|
19,791
|
144
|
95
|
20,030
|
2,023
|
174,305
|
Total
|
349,488
|
41,371
|
2,085
|
968
|
44,424
|
4,867
|
398,779
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
—
|
0.3
|
0.7
|
1.7
|
0.4
|
17.1
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
1.3
|
20.8
|
32.5
|
38.2
|
22.6
|
60.2
|
6.8
|
Wholesale loans
|
0.3
|
2.0
|
4.0
|
2.1
|
2.0
|
20.7
|
0.8
|
Total
|
0.3
|
4.5
|
6.5
|
19.3
|
5.0
|
31.3
|
1.4
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
|
|
|
|
|
|
Gross exposure
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
148,058
|
17,133
|
1,660
|
707
|
19,500
|
2,122
|
169,680
|
Credit cards, unsecured loans and other retail lending
|
37,840
|
5,102
|
300
|
248
|
5,650
|
2,332
|
45,822
|
Wholesale loans
|
132,967
|
15,246
|
306
|
391
|
15,943
|
2,781
|
151,691
|
Total
|
318,865
|
37,481
|
2,266
|
1,346
|
41,093
|
7,235
|
367,193
|
|
|
|
|
|
|
|
|
Impairment allowance
|
|
|
|
|
|
|
|
Home loans
|
19
|
46
|
6
|
7
|
59
|
397
|
475
|
Credit cards, unsecured loans and other retail lending
|
824
|
1,493
|
85
|
123
|
1,701
|
1,504
|
4,029
|
Wholesale loans
|
363
|
248
|
4
|
3
|
255
|
620
|
1,238
|
Total
|
1,206
|
1,787
|
95
|
133
|
2,015
|
2,521
|
5,742
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
|
|
|
|
|
Home loans
|
148,039
|
17,087
|
1,654
|
700
|
19,441
|
1,725
|
169,205
|
Credit cards, unsecured loans and other retail lending
|
37,016
|
3,609
|
215
|
125
|
3,949
|
828
|
41,793
|
Wholesale loans
|
132,604
|
14,998
|
302
|
388
|
15,688
|
2,161
|
150,453
|
Total
|
317,659
|
35,694
|
2,171
|
1,213
|
39,078
|
4,714
|
361,451
|
|
|
|
|
|
|
|
|
Coverage ratio
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
Home loans
|
—
|
0.3
|
0.4
|
1.0
|
0.3
|
18.7
|
0.3
|
Credit cards, unsecured loans and other retail lending
|
2.2
|
29.3
|
28.3
|
49.6
|
30.1
|
64.5
|
8.8
|
Wholesale loans
|
0.3
|
1.6
|
1.3
|
0.8
|
1.6
|
22.3
|
0.8
|
Total
|
0.4
|
4.8
|
4.2
|
9.9
|
4.9
|
34.8
|
1.6
|
Loans and advances at amortised cost by selected
sectors
The table below presents a breakdown of drawn exposure and
impairment allowance for loans and advances at amortised cost with
stage allocation for selected industry sectors within the wholesale
loans portfolio. As the nature of macroeconomic uncertainty has
evolved from the COVID-19 pandemic towards high inflation, supply
chain constraints and consumer demand headwinds, so has the
selected population under management focus. The credit risk
industry concentration disclosure in the analysis of the
concentration of credit risk section represents all the industry
categories and the below only covers a subset of that
table.
The gross loans and advances to selected sectors has decreased
during the year. The increased provision is informed by the current
macroeconomic outlook and underlying portfolio performance. The
wholesale portfolio also benefits from a hedge protection programme
that enables effective risk management against credit losses. An
additional £115m (December 2021: £123m) impairment
allowance has been applied to the undrawn exposures not included in
the table below.
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.22
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Autos
|
881
|
194
|
31
|
1,106
|
|
6
|
5
|
6
|
17
|
Consumer manufacture
|
3,845
|
1,729
|
199
|
5,773
|
|
45
|
41
|
46
|
132
|
Discretionary retail and wholesale
|
5,143
|
1,711
|
249
|
7,103
|
|
41
|
37
|
51
|
129
|
Hospitality and leisure
|
3,902
|
1,316
|
429
|
5,647
|
|
40
|
31
|
70
|
141
|
Passenger travel
|
744
|
267
|
51
|
1,062
|
|
9
|
7
|
13
|
29
|
Real estate
|
13,042
|
3,049
|
499
|
16,590
|
|
91
|
66
|
123
|
280
|
Steel and aluminium manufacturers
|
486
|
85
|
18
|
589
|
|
7
|
1
|
8
|
16
|
Total
|
28,043
|
8,351
|
1,476
|
37,870
|
|
239
|
188
|
317
|
744
|
Total of wholesale exposures (%)
|
18%
|
41%
|
58%
|
22%
|
|
54%
|
46%
|
60%
|
54%
|
|
|
|
|
|
|
|
|
|
|
|
Gross exposure
|
|
Impairment allowance
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31.12.21
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
Autos
|
656
|
295
|
2
|
953
|
|
3
|
3
|
—
|
6
|
Consumer manufacture
|
3,904
|
1,304
|
211
|
5,419
|
|
18
|
22
|
43
|
83
|
Discretionary retail and wholesale
|
5,413
|
1,197
|
230
|
6,840
|
|
47
|
20
|
54
|
121
|
Hospitality and leisure
|
4,348
|
1,613
|
384
|
6,345
|
|
28
|
33
|
44
|
105
|
Passenger travel
|
856
|
285
|
143
|
1,284
|
|
30
|
8
|
40
|
78
|
Real estate
|
13,620
|
3,314
|
518
|
17,452
|
|
65
|
53
|
93
|
211
|
Steel and aluminium manufacturers
|
415
|
75
|
6
|
496
|
|
2
|
3
|
1
|
6
|
Total
|
29,212
|
8,083
|
1,494
|
38,789
|
|
193
|
142
|
275
|
610
|
Total of wholesale exposures (%)
|
22%
|
51%
|
54%
|
26%
|
|
53%
|
56%
|
44%
|
49%
|
Exposure to UK Commercial Real Estate (CRE) of £9.7bn (2021:
£10bn1)
remained stable and was predominantly in Stage 1 at 81% (2021:
78%). The loan portfolio was well collateralised, hence a low
coverage of 1.1% (ECL: £0.1bn). Exposure at Stage 3 was 2%
(2021: 3%) with a coverage ratio of 12% (2021:
18%).
However, UK CRE has been included within selected sector scoping as
the broader real estate sector remains under pressure due to
pricing and affordability concerns, as well as construction input
costs and supply chain issues adding to the uncertainty, in
particular across non-investment grade exposures.
The coverage ratio for selected sectors has increased from 1.6% as
at 31 December 2021 to 2.0% as at 31 December 2022. Non-default
coverage ratio has increased from 0.9% as at 31 December 2021 to
1.2% as at 31 December 2022.
1
|
From 2022, Barclays has enhanced the process of identifying UK CRE
exposures.
|
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 methodology used to determine credit impairment
provisions is included in the Barclays PLC Annual Report 2022.
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 2022
|
148,058
|
19
|
19,500
|
59
|
2,122
|
397
|
169,680
|
475
|
Transfers from Stage 1 to Stage 2
|
(8,747)
|
(1)
|
8,747
|
1
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
7,489
|
24
|
(7,489)
|
(24)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(400)
|
—
|
(725)
|
(6)
|
1,125
|
6
|
—
|
—
|
Transfers from Stage 3
|
32
|
1
|
229
|
4
|
(261)
|
(5)
|
—
|
—
|
Business
activity in the period1
|
30,028
|
10
|
1,142
|
7
|
6
|
—
|
31,176
|
17
|
Refinements to models used for calculation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(8,846)
|
(22)
|
(1,081)
|
36
|
(125)
|
52
|
(10,052)
|
66
|
Final
repayments2
|
(13,942)
|
(2)
|
(2,123)
|
(4)
|
(426)
|
(9)
|
(16,491)
|
(15)
|
Disposals
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Write-offs3
|
—
|
—
|
—
|
—
|
(27)
|
(27)
|
(27)
|
(27)
|
As at 31 December 20224
|
153,672
|
29
|
18,200
|
73
|
2,414
|
414
|
174,286
|
516
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
As at 1 January 2022
|
37,840
|
824
|
5,650
|
1,701
|
2,332
|
1,504
|
45,822
|
4,029
|
Transfers from Stage 1 to Stage 2
|
(3,474)
|
(80)
|
3,474
|
80
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
1,941
|
489
|
(1,941)
|
(489)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(649)
|
(20)
|
(707)
|
(307)
|
1,356
|
327
|
—
|
—
|
Transfers from Stage 3
|
87
|
33
|
25
|
13
|
(112)
|
(46)
|
—
|
—
|
Business
activity in the period1
|
11,339
|
177
|
769
|
186
|
157
|
126
|
12,265
|
489
|
Refinements
to models used for calculation5
|
—
|
86
|
—
|
(45)
|
—
|
96
|
—
|
137
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
1,246
|
(887)
|
1,199
|
736
|
179
|
787
|
2,624
|
636
|
Final
repayments2
|
(3,996)
|
(36)
|
(341)
|
(32)
|
(228)
|
(60)
|
(4,565)
|
(128)
|
Disposals6
|
(159)
|
(4)
|
(29)
|
(11)
|
(275)
|
(169)
|
(463)
|
(184)
|
Write-offs3
|
—
|
—
|
—
|
—
|
(1,287)
|
(1,287)
|
(1,287)
|
(1,287)
|
As at 31 December 20224
|
44,175
|
582
|
8,099
|
1,832
|
2,122
|
1,278
|
54,396
|
3,692
|
1
|
Business activity in the period does not include additional
drawdowns on the existing facility which are reported under 'Net
drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes'. Business activity reported
within Credit cards, unsecured loans and other retail lending
portfolio includes Gap portfolio acquisition in US cards of
£2.7bn.
|
2
|
Final repayments include repayment from the facility closed during
the year whereas partial repayments from existing facility are
reported under 'Net drawdowns, repayments, net remeasurement and
movements due to exposure and risk parameter changes'.
|
3
|
In 2022, gross write-offs amounted to £1,620m (2021:
£1,836m). In Q422, £329m of balances with de minimis
recovery expectations were written-off in line with policy in UK
Cards and Unsecured Loans. Post write-off recoveries amounted to
£64m (2021: £66m). Net write-offs represent gross
write-offs less post write-off recoveries and amounted to
£1,556m (2021: £1,770m).
|
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
£180.1bn (December 21: £155.2bn) and an impairment
allowance of £163m (December 21: £114m). This comprises
£10m ECL (December 21: £6m) on £178.4bn Stage 1
assets (December 21: £154.9bn), £9m (December 21:
£1m) on £1.5bn Stage 2 fair value through other
comprehensive income assets, other assets and cash collateral and
settlement balances (December 21: £157m) and £144m
(December 21: £107m) on £149m Stage 3 other assets
(December 21: £110m).
|
5
|
Refinements to models used for calculation reported within Credit
cards, unsecured loans and other retail lending portfolio include a
£0.3bn movement in US Cards and £(0.2)bn movement in UK
Cards. These reflect model enhancements made during the year.
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.
|
6
|
The £0.5bn disposals reported within Credit cards, unsecured
loans and other retail lending portfolio includes £0.2bn sale
of NFL portfolio within US Cards and £0.3bn of debt sales
undertaken during the year.
|
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 2022
|
132,967
|
363
|
15,943
|
255
|
2,781
|
620
|
151,691
|
1,238
|
Transfers from Stage 1 to Stage 2
|
(9,488)
|
(67)
|
9,488
|
67
|
—
|
—
|
—
|
—
|
Transfers from Stage 2 to Stage 1
|
5,258
|
55
|
(5,258)
|
(55)
|
—
|
—
|
—
|
—
|
Transfers to Stage 3
|
(1,480)
|
(6)
|
(684)
|
(11)
|
2,164
|
17
|
—
|
—
|
Transfers from Stage 3
|
204
|
21
|
339
|
28
|
(543)
|
(49)
|
—
|
—
|
Business
activity in the period1
|
40,490
|
83
|
4,104
|
86
|
239
|
30
|
44,833
|
199
|
Refinements
to models used for calculation2
|
—
|
(64)
|
—
|
(66)
|
—
|
(374)
|
—
|
(504)
|
Net
drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes3
|
12,799
|
103
|
352
|
154
|
(1,504)
|
693
|
11,647
|
950
|
Final
repayments4
|
(26,540)
|
(42)
|
(3,812)
|
(47)
|
(232)
|
(57)
|
(30,584)
|
(146)
|
Disposals5
|
(1,512)
|
—
|
(31)
|
—
|
(49)
|
(47)
|
(1,592)
|
(47)
|
Write-offs6
|
—
|
—
|
—
|
—
|
(306)
|
(306)
|
(306)
|
(306)
|
As at 31 December 20227
|
152,698
|
446
|
20,441
|
411
|
2,550
|
527
|
175,689
|
1,384
|
|
|
|
|
|
|
|
|
|
Reconciliation of ECL movement to impairment charge/(release) for
the period
|
|
|
|
|
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
|
|
|
|
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
10
|
14
|
44
|
68
|
Credit cards, unsecured loans and other retail lending
|
(238)
|
142
|
1,230
|
1,134
|
Wholesale loans
|
83
|
156
|
260
|
499
|
ECL movement excluding assets derecognised due to disposals and
write-offs
|
(145)
|
312
|
1,534
|
1,701
|
ECL
movement on loan
commitments and other financial guarantees
|
28
|
13
|
—
|
41
|
ECL
movement on other financial assets7
|
4
|
8
|
37
|
49
|
Recoveries
and reimbursements8
|
(122)
|
(63)
|
(78)
|
(263)
|
Total
exchange and other adjustments9
|
|
|
|
(308)
|
Total income statement charge for the period
|
|
|
|
1,220
|
1
|
Business activity in the period does not include additional
drawdowns on the existing facility which are reported under 'Net
drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes'.
|
2
|
Refinements to models used for calculation reported within
Wholesale loans include a £(0.5)bn movement in Business
Banking. This relates to an update in the underlying ECL model that
now fully recognises the 100% government guarantee against Barclays
Bounce Back Loans exposure.
|
3
|
'Net drawdowns, repayments, net re-measurement and movements due to
exposure and risk parameter changes' reported within Wholesale
loans also include assets of £1.3bn de-recognised due to
payment received on defaulted loans from government guarantees
issued under government’s Bounce Back Loans
Scheme.
|
4
|
Final repayments include repayment from the facilities closed
during the year whereas partial repayments from existing facility
are reported under 'Net drawdowns, repayments, net remeasurement
and movements due to exposure and risk parameter
changes'.
|
5
|
The £1.6bn disposals reported within Wholesale loans includes
sale of debt securities as part of Group Treasury
Operations.
|
6
|
In 2022, gross write-offs amounted to £1,620m (2021:
£1,836m). In Q422, £329m of balances with de minimis
recovery expectations were written-off in line with policy in UK
Cards and Unsecured Loans. Post write-off recoveries amounted to
£64m (2021: £66m). Net write-offs represent gross
write-offs less post write-off recoveries and amounted to
£1,556m (2021: £1,770m).
|
7
|
Other financial assets subject to impairment not included in the
table above include cash collateral and settlement balances,
financial assets at fair value through other comprehensive income
and other assets. These have a total gross exposure of
£180.1bn (December 21: £155.2bn) and impairment allowance
of £163m (December 21: £114m). This comprises £10m
ECL (December 21: £6m) on £178.4bn stage 1 assets
(December 21: £154.9bn), £9m (December 21: £1m) on
£1.5bn stage 2 fair value through other comprehensive income
assets, other assets and cash collateral and settlement balances
(December 21: £157m) and £144m (December 21: £107m)
on £149m stage 3 other assets (December 21:
£110m).
|
8
|
Recoveries and reimbursements includes £199m (2021 loss:
£306m) for reimbursements expected to be received under the
arrangement where Group has entered into financial guarantee
contracts which provide credit protection over certain loan assets
with third parties and cash recoveries of previously written off
amounts of £64m (FY21: £66m).
|
9
|
Exchange and other adjustments 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 2022
|
10,833
|
—
|
532
|
—
|
3
|
—
|
11,368
|
—
|
Net transfers between stages
|
8
|
—
|
(17)
|
—
|
9
|
—
|
—
|
—
|
Business activity in the period
|
8,034
|
—
|
—
|
—
|
—
|
—
|
8,034
|
—
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
(6,793)
|
—
|
(21)
|
—
|
(6)
|
—
|
(6,820)
|
—
|
Limit management and final repayments
|
(368)
|
—
|
(44)
|
—
|
—
|
—
|
(412)
|
—
|
As at 31 December 2022
|
11,714
|
—
|
450
|
—
|
6
|
—
|
12,170
|
—
|
|
|
|
|
|
|
|
|
|
Credit cards, unsecured loans and other retail lending
|
As at 1 January 2022
|
122,819
|
50
|
5,718
|
61
|
218
|
20
|
128,755
|
131
|
Net transfers between stages
|
(3,390)
|
47
|
3,050
|
(42)
|
340
|
(5)
|
—
|
—
|
Business activity in the period
|
38,204
|
25
|
451
|
27
|
14
|
2
|
38,669
|
54
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
9,633
|
(54)
|
(1,949)
|
67
|
(151)
|
5
|
7,533
|
18
|
Limit management and final repayments
|
(8,212)
|
(7)
|
(503)
|
(23)
|
(89)
|
(2)
|
(8,804)
|
(32)
|
As at 31 December 2022
|
159,054
|
61
|
6,767
|
90
|
332
|
20
|
166,153
|
171
|
|
|
|
|
|
|
|
|
|
Wholesale loans
|
|
|
|
|
|
|
|
|
As at 1 January 2022
|
178,490
|
167
|
28,565
|
241
|
1,077
|
3
|
208,132
|
411
|
Net transfers between stages
|
5,826
|
60
|
(5,759)
|
(64)
|
(67)
|
4
|
—
|
—
|
Business activity in the period
|
43,683
|
28
|
4,233
|
54
|
15
|
—
|
47,931
|
82
|
Net drawdowns, repayments, net re-measurement and movement due to
exposure and risk parameter changes
|
28,353
|
(42)
|
5,953
|
59
|
138
|
(2)
|
34,444
|
15
|
Limit management and final repayments
|
(54,175)
|
(29)
|
(9,515)
|
(65)
|
(321)
|
(2)
|
(64,011)
|
(96)
|
As at 31 December 2022
|
202,177
|
184
|
23,477
|
225
|
842
|
3
|
226,496
|
412
|
Management adjustments to models for impairment
Management adjustments to impairment models are applied in order to
factor in certain conditions or changes in policy that are not
fully incorporated into the impairment models, or to reflect
additional facts and circumstances at the period end. Management
adjustments are reviewed and incorporated into future model
development where applicable.
Management adjustments are captured through “Economic
uncertainty” and “Other” adjustments presented by
product below:
Management adjustments to models for impairment
allowance presented by
product1
|
Impairment allowance pre management
adjustments2
|
Economic uncertainty adjustments
|
Other adjustments
|
Management adjustments
|
Total impairment
allowance3
|
Proportion of Management adjustments to total impairment
allowance
|
|
|
(a)
|
(b)
|
(a+b)
|
|
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Home loans
|
427
|
4
|
85
|
89
|
516
|
17.2
|
Credit cards, unsecured loans and other retail lending
|
3,543
|
118
|
202
|
320
|
3,863
|
8.3
|
Wholesale loans
|
1,680
|
195
|
(79)
|
116
|
1,796
|
6.5
|
Total
|
5,650
|
317
|
208
|
525
|
6,175
|
8.5
|
|
|
|
|
|
|
|
As at 31 December 2021
|
£m
|
£m
|
£m
|
£m
|
£m
|
%
|
Home loans
|
372
|
72
|
31
|
103
|
475
|
21.7
|
Credit cards, unsecured loans and other retail lending
|
2,798
|
1,217
|
145
|
1,362
|
4,160
|
32.7
|
Wholesale loans
|
1,628
|
403
|
(382)
|
21
|
1,649
|
1.3
|
Total
|
4,798
|
1,692
|
(206)
|
1,486
|
6,284
|
23.6
|
Economic uncertainty adjustments presented by stage
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
As at 31 December 2022
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
1
|
3
|
—
|
4
|
Credit cards, unsecured loans and other retail lending
|
24
|
93
|
1
|
118
|
Wholesale loans
|
181
|
14
|
—
|
195
|
Total
|
206
|
110
|
1
|
317
|
As at 31 December 2021
|
£m
|
£m
|
£m
|
£m
|
Home loans
|
5
|
35
|
32
|
72
|
Credit cards, unsecured loans and other retail lending
|
403
|
803
|
11
|
1,217
|
Wholesale loans
|
333
|
70
|
—
|
403
|
Total
|
741
|
908
|
43
|
1,692
|
1
|
Positive values reflect an increase in impairment allowance and
negative values reflect a reduction in the impairment
allowance.
|
2
|
Includes £4.8bn (December 2021: £4.2bn) of modelled ECL,
£0.4bn (December 2021: £0.5bn) of individually assessed
impairments and £0.5bn (December 2021: £0.1bn) ECL from
non-modelled exposures.
|
3
|
Total impairment allowance consists of ECL stock on drawn and
undrawn exposure.
|
Economic uncertainty adjustments
Models have been developed with data from non-inflationary periods
establishing a relationship between input variables and customer
delinquency based on past behaviour. Additionally, models are
trying to interpret significant rates of change in macroeconomic
variables and applying these to stable probability of default (PD)
levels. As such there is a risk that the modelled output fails to
capture the appropriate response to changes in macroeconomic
variables and rising costs with modelled impairment provisions
impacted by uncertainty.
This uncertainty continues to be captured in two ways. Firstly,
customer uncertainty: the identification of customers and clients
who may be more vulnerable to economic instability; and secondly,
model uncertainty: to capture the impact from model limitations and
sensitivities to specific macroeconomic parameters which are
applied at a portfolio level.
In 2022, previously established economic uncertainty adjustments
have been partially released, informed by some normalisation of
customer behaviour, refreshed scenarios and a rebuild of certain
models to better capture the macroeconomic outlook.
The balance as at 31 December 2022 is £317m (December 2021:
£1,692m) and includes:
|
Customer and client uncertainty provisions of £423m (December
2021: £1,508m) includes:
|
●
|
Credit cards, unsecured loans and other retail lending
includes an adjustment of £118m
(December 2021: £1,203m) which has been applied to customers
and clients considered most vulnerable to affordability pressures.
This adjustment is predominantly held in Stage 2 in line with
customer risk profiles.
The reduction is informed by the release of COVID-19 related
adjustments as credit performance stabilises at or below
pre-pandemic levels which is reflected in the models, and a rebuild
of certain models to better capture the macroeconomic
outlook.
|
●
|
Wholesale loans: £301m
(FY21: £305m) includes an adjustment of £205m for
exposures considered most at risk from inflationary concerns,
supply chain constraints and consumer demand headwinds. The
adjustment involves applying Stage 2 coverage rates to Stage 1
exposures assessed as most vulnerable. Sectors in scope are
presented in the selected sectors disclosure on page 32. The
remaining adjustment includes £92m to reflect possible cross
default risk on Barclays' lending in respect of clients who have
taken bounce back loans.
|
Model uncertainty provisions of £(106)m (December 2021:
£184m) includes:
|
●
|
Wholesale loans: £(106)m
(December 2021: £98m) includes an adjustment to correct for
the deterioration in wholesale PDs impacted by model
over-sensitivity to certain macroeconomic
variables. In 2021,
this adjustment was held at £98m driven by an unintuitive
model output from certain Q421 macroeconomic
variables.
|
●
|
Management adjustments of £72m within home loans in 2021 primarily comprised of a now retired
adjustment, reflecting the non-linearity of the UK mortgages
portfolio in order to generate a more appropriate level of
predicted results.
|
Other adjustments
Other adjustments are operational in nature and are expected to
remain in place until they can be reflected in the underlying
models. These adjustments result from data limitations and model
performance related issues identified through model monitoring and
other established governance processes.
Other adjustments of £208m (December 2021: £(206)m)
includes:
|
●
|
Home loans: £85m (December
2021: £31m) primarily includes adjustments for model
performance informed by model monitoring and an adjustment for the
adoption of the new definition of default under the Capital
Requirements Regulation.
|
●
|
Credit cards, unsecured loans and other retail lending:
£202m (December 2021: £145m)
primarily includes an adjustment for adoption of the new definition
of default under the Capital Requirements Regulation and an
adjustment to the qualitative measures used in identification of
high-risk account management (HRAM) accounts for US cards,
partially offset by a recalibration of Loss Given Default (LGD) to
reflect revised recovery expectations.
The £145m adjustments held in December 2021 primarily included
adjustments for model performance informed by model monitoring,
partially offset by an adjustment for reclassification of loans and
advances from Stage 2 to Stage 1 in credit cards. The
reclassification followed a review of back-testing results which
indicated that accuracy of origination probability of default
characteristics require management adjustment. These adjustments
are no longer required due to model enhancements made during the
year.
|
●
|
Wholesale loans: £(79)m
(December 2021: £(382)m): includes adjustments for model
performance informed by model monitoring.
Management adjustments of £(382)m within wholesale loans in
2021 consisted of an adjustment of £(380)m applied on bounce
back loans to reverse out the modelled charge which did not
consider the government guarantee. This adjustment is no longer
needed due to model enhancements made during the year.
|
Measurement uncertainty
Scenarios used to calculate the Group’s ECL charge were
refreshed in Q422 with the Baseline scenario reflecting the latest
consensus macroeconomic forecasts available at the time of the
scenario refresh. In the Baseline scenario, further deterioration
in major economies, as inflation pressures continue to squeeze
household income, along with significant monetary policy tightening
contribute to lower growth prospects. UK GDP is expected to
continue falling into 2023 and the US economy dips into mild
recession in 2023. Slight increases in the UK and US unemployment
rates are expected, peaking at 4.9% in Q423 and 4.7% in Q124
respectively. Central banks continue raising interest rates,
peaking during 2023, and consumer price inflation eases over
2023.
In the Downside 2 scenario, inflation continues to accelerate amid
increasing gas and oil prices and persistent supply-chain pressures
as a result of the Russia-Ukraine conflict. Central banks are
forced to raise interest rates sharply with the UK bank rate
reaching 8% and the US federal funds rate peaking at 7%.
Unemployment peaks at 8.5% in the UK and 8.6% in the US. Given
already stretched valuations, the sharp increase in borrowing costs
sees house prices decrease significantly. In the Upside 2 scenario,
lower energy prices add downward pressure on prices globally, while
recovering labour force participation limits wage growth. As a
result of easing inflation, central banks lower interest rates to
support the economic recovery.
The methodology for estimating scenario probability weights
involves simulating a range of future paths for UK and US GDP using
historical data with the five scenarios mapped against the
distribution of these future paths. The median is centred around
the Baseline with scenarios further from the Baseline attracting a
lower weighting before the five weights are normalised to total
100%. The increase in the Downside weightings and the decrease in
the Upside weightings reflected the deteriorating economic outlook
which moved the Baseline UK/US GDP paths closer to the Downside
scenarios. For further details see page 41.
The economic uncertainty adjustments of £0.3bn (2021:
£1.7bn) have been applied as overlays to the modelled ECL
output. These adjustments consist of a customer and client
uncertainty provision of £0.4bn (2021: £1.5bn) which has
been applied to customers and clients considered most vulnerable to
affordability pressures, and a model uncertainty adjustment of
£(0.1)bn (2021: £0.2bn). For further details see page
36.
The tables below show the key macroeconomic variables used in the
five scenarios (5 year annual paths), the probability weights
applied to each scenario.
Baseline average macroeconomic variables used in the calculation of
ECL
|
|
2022
|
2023
|
2024
|
2025
|
2026
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
(0.8)
|
0.9
|
1.8
|
1.9
|
UK
unemployment2
|
3.7
|
4.5
|
4.4
|
4.1
|
4.2
|
UK
HPI3
|
8.4
|
(4.7)
|
(1.7)
|
2.2
|
2.2
|
UK bank rate
|
1.8
|
4.4
|
4.1
|
3.8
|
3.4
|
US
GDP1
|
1.8
|
0.5
|
1.2
|
1.5
|
1.5
|
US
unemployment4
|
3.7
|
4.3
|
4.7
|
4.7
|
4.7
|
US
HPI5
|
11.2
|
1.8
|
1.5
|
2.3
|
2.4
|
US federal funds rate
|
2.1
|
4.8
|
3.6
|
3.1
|
3.0
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
6.2
|
4.9
|
2.3
|
1.9
|
1.7
|
UK
unemployment2
|
4.8
|
4.7
|
4.5
|
4.3
|
4.2
|
UK
HPI3
|
4.7
|
1.0
|
1.9
|
1.9
|
2.3
|
UK bank rate
|
0.1
|
0.8
|
1.0
|
1.0
|
0.8
|
US
GDP1
|
5.5
|
3.9
|
2.6
|
2.4
|
2.4
|
US
unemployment4
|
5.5
|
4.2
|
3.6
|
3.6
|
3.6
|
US
HPI5
|
11.8
|
4.5
|
5.2
|
4.9
|
5.0
|
US federal funds rate
|
0.2
|
0.3
|
0.9
|
1.2
|
1.3
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
Downside 2 average economic variables used in the calculation of
ECL
|
|
2022
|
2023
|
2024
|
2025
|
2026
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
(3.4)
|
(3.8)
|
2.0
|
2.3
|
UK
unemployment2
|
3.7
|
6.0
|
8.4
|
8.0
|
7.4
|
UK
HPI3
|
8.4
|
(18.3)
|
(18.8)
|
(7.7)
|
8.2
|
UK bank rate
|
1.8
|
7.3
|
7.9
|
6.6
|
5.5
|
US
GDP1
|
1.8
|
(2.7)
|
(3.4)
|
2.0
|
2.6
|
US
unemployment4
|
3.7
|
6.0
|
8.5
|
8.1
|
7.1
|
US
HPI5
|
11.2
|
(3.1)
|
(4.0)
|
(1.9)
|
4.8
|
US federal funds rate
|
2.1
|
6.6
|
6.9
|
5.8
|
4.6
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
6.2
|
0.2
|
(4.0)
|
2.8
|
4.3
|
UK
unemployment2
|
4.8
|
7.2
|
9.0
|
7.6
|
6.3
|
UK
HPI3
|
4.7
|
(14.3)
|
(21.8)
|
11.9
|
15.2
|
UK bank rate
|
0.1
|
2.2
|
3.9
|
3.1
|
2.2
|
US
GDP1
|
5.5
|
(0.8)
|
(3.5)
|
2.5
|
3.2
|
US
unemployment4
|
5.5
|
6.4
|
9.1
|
8.1
|
6.4
|
US
HPI5
|
11.8
|
(6.6)
|
(9.0)
|
5.9
|
6.7
|
US federal funds rate
|
0.2
|
2.1
|
3.4
|
2.6
|
2.0
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
Downside 1 average economic variables used in the calculation of
ECL
|
|
2022
|
2023
|
2024
|
2025
|
2026
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
(2.1)
|
(1.5)
|
1.9
|
2.1
|
UK
unemployment2
|
3.7
|
5.2
|
6.4
|
6.0
|
5.8
|
UK
HPI3
|
8.4
|
(11.7)
|
(10.6)
|
(2.8)
|
5.2
|
UK bank rate
|
1.8
|
5.9
|
6.1
|
5.3
|
4.6
|
US
GDP1
|
1.8
|
(1.1)
|
(1.1)
|
1.7
|
2.1
|
US
unemployment4
|
3.7
|
5.1
|
6.6
|
6.4
|
5.9
|
US
HPI5
|
11.2
|
(0.7)
|
(1.3)
|
0.2
|
3.6
|
US federal funds rate
|
2.1
|
5.8
|
5.4
|
4.4
|
3.9
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
6.2
|
2.8
|
(0.7)
|
2.3
|
2.9
|
UK
unemployment2
|
4.8
|
6.2
|
6.8
|
6.0
|
5.3
|
UK
HPI3
|
4.7
|
(6.8)
|
(10.5)
|
6.9
|
8.6
|
UK bank rate
|
0.1
|
1.6
|
2.7
|
2.3
|
1.6
|
US
GDP1
|
5.5
|
1.6
|
(0.4)
|
2.4
|
2.7
|
US
unemployment4
|
5.5
|
5.4
|
6.6
|
6.1
|
5.2
|
US
HPI5
|
11.8
|
(1.2)
|
(2.1)
|
4.8
|
5.2
|
US federal funds rate
|
0.2
|
1.3
|
2.3
|
2.1
|
1.8
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
Upside 2 average economic variables used in the calculation of
ECL
|
|
2022
|
2023
|
2024
|
2025
|
2026
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
2.8
|
3.7
|
2.9
|
2.4
|
UK
unemployment2
|
3.7
|
3.5
|
3.4
|
3.4
|
3.4
|
UK
HPI3
|
8.4
|
8.7
|
7.5
|
4.4
|
4.2
|
UK bank rate
|
1.8
|
3.1
|
2.6
|
2.5
|
2.5
|
US
GDP1
|
1.8
|
3.3
|
3.5
|
2.8
|
2.8
|
US
unemployment4
|
3.7
|
3.3
|
3.3
|
3.3
|
3.3
|
US
HPI5
|
11.2
|
5.8
|
5.1
|
4.5
|
4.5
|
US federal funds rate
|
2.1
|
3.6
|
2.9
|
2.8
|
2.8
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
6.2
|
7.2
|
4.0
|
2.7
|
2.1
|
UK
unemployment2
|
4.8
|
4.5
|
4.1
|
4.0
|
4.0
|
UK
HPI3
|
4.7
|
8.5
|
9.0
|
5.2
|
4.2
|
UK bank rate
|
0.1
|
0.2
|
0.5
|
0.5
|
0.3
|
US
GDP1
|
5.5
|
5.3
|
4.1
|
3.5
|
3.4
|
US
unemployment4
|
5.5
|
3.9
|
3.4
|
3.3
|
3.3
|
US
HPI5
|
11.8
|
10.6
|
8.5
|
7.2
|
6.6
|
US federal funds rate
|
0.2
|
0.3
|
0.4
|
0.7
|
1.0
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
Upside 1 average economic variables used in the calculation of
ECL
|
|
2022
|
2023
|
2024
|
2025
|
2026
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
3.3
|
1.0
|
2.3
|
2.4
|
2.1
|
UK
unemployment2
|
3.7
|
4.0
|
3.9
|
3.8
|
3.8
|
UK
HPI3
|
8.4
|
1.8
|
2.9
|
3.3
|
3.2
|
UK bank rate
|
1.8
|
3.5
|
3.3
|
3.0
|
2.8
|
US
GDP1
|
1.8
|
1.9
|
2.3
|
2.2
|
2.2
|
US
unemployment4
|
3.7
|
3.8
|
4.0
|
4.0
|
4.0
|
US
HPI5
|
11.2
|
3.8
|
3.3
|
3.4
|
3.4
|
US federal funds rate
|
2.1
|
3.9
|
3.4
|
3.0
|
3.0
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP1
|
6.2
|
6.0
|
3.1
|
2.3
|
1.9
|
UK
unemployment2
|
4.8
|
4.6
|
4.3
|
4.2
|
4.1
|
UK
HPI3
|
4.7
|
5.0
|
5.0
|
3.9
|
3.3
|
UK bank rate
|
0.1
|
0.6
|
0.8
|
0.8
|
0.5
|
US
GDP1
|
5.5
|
4.6
|
3.4
|
2.9
|
2.9
|
US
unemployment4
|
5.5
|
4.0
|
3.5
|
3.5
|
3.5
|
US
HPI5
|
11.8
|
8.3
|
7.0
|
6.0
|
5.7
|
US federal funds rate
|
0.2
|
0.3
|
0.6
|
1.0
|
1.1
|
1
|
Average Real GDP seasonally adjusted change in year.
|
2
|
Average UK unemployment rate 16-year+.
|
3
|
Change in year end UK HPI = Halifax All Houses, All Buyers index,
relative to prior year end.
|
4
|
Average US civilian unemployment rate 16-year+.
|
5
|
Change in year end US HPI = FHFA House Price Index, relative to
prior year end.
|
Scenario probability
weighting1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
|
%
|
%
|
%
|
%
|
%
|
As at 31.12.22
|
|
|
|
|
|
Scenario probability weighting
|
10.9
|
23.1
|
39.4
|
17.6
|
9.0
|
As at 31.12.21
|
|
|
|
|
|
Scenario probability weighting
|
20.9
|
27.2
|
30.1
|
14.8
|
7.0
|
1
|
For further details on changes to scenario weights please see page
38.
|
Specific bases show the most extreme position of each variable in
the context of the downside/upside scenarios, for example, the
highest unemployment for downside scenarios, average unemployment
for baseline scenarios and lowest unemployment for upside
scenarios. GDP and HPI downside and upside scenario data represents
the lowest and highest cumulative position relative to the start
point, in the 20 quarter period.
Macroeconomic variables (specific
bases)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
13.9
|
9.4
|
1.4
|
(3.2)
|
(6.8)
|
UK
unemployment3
|
3.4
|
3.6
|
4.2
|
6.6
|
8.5
|
UK
HPI4
|
37.8
|
21.0
|
1.2
|
(17.9)
|
(35.0)
|
UK bank rate
|
0.5
|
0.5
|
3.5
|
6.3
|
8.0
|
US
GDP2
|
14.1
|
9.6
|
1.3
|
(2.5)
|
(6.3)
|
US
unemployment3
|
3.3
|
3.6
|
4.4
|
6.7
|
8.6
|
US
HPI4
|
35.0
|
27.5
|
3.8
|
3.7
|
0.2
|
US federal funds rate
|
0.1
|
0.1
|
3.3
|
6.0
|
7.0
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
21.4
|
18.3
|
3.4
|
(1.6)
|
(1.6)
|
UK
unemployment3
|
4.0
|
4.1
|
4.5
|
7.0
|
9.2
|
UK
HPI4
|
35.7
|
23.8
|
2.4
|
(12.7)
|
(29.9)
|
UK bank rate
|
0.1
|
0.1
|
0.7
|
2.8
|
4.0
|
US
GDP2
|
22.8
|
19.6
|
3.4
|
1.5
|
(1.3)
|
US
unemployment3
|
3.3
|
3.5
|
4.1
|
6.8
|
9.5
|
US
HPI4
|
53.3
|
45.2
|
6.2
|
2.2
|
(5.0)
|
US federal funds rate
|
0.1
|
0.1
|
0.8
|
2.3
|
3.5
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index. 20 quarter period starts from Q122 (2021:
Q121).
|
2
|
Maximum growth relative to Q421 (2021: Q420), based on 20 quarter
period in Upside scenarios; 5-year yearly average CAGR in Baseline;
minimum growth relative to Q421 (2021: Q420), based on 20 quarter
period in Downside scenarios.
|
3
|
Lowest quarter in 20 quarter period in Upside scenarios; 5-year
average in Baseline; highest quarter 20 quarter period in Downside
scenarios.
|
4
|
Maximum growth relative to Q421 (2021: Q420), based on 20 quarter
period in Upside scenarios; 5-year quarter end CAGR in Baseline;
minimum growth relative to Q421 (2021: Q420), based on 20 quarter
period in Downside scenarios.
|
Average basis represents the average quarterly value of variables
in the 20 quarter period with GDP and HPI based on yearly average
and quarterly CAGRs respectively.
Macroeconomic variables (5-year
averages)1
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.22
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
3.0
|
2.2
|
1.4
|
0.7
|
—
|
UK
unemployment3
|
3.5
|
3.8
|
4.2
|
5.4
|
6.7
|
UK
HPI4
|
6.6
|
3.9
|
1.2
|
(2.6)
|
(6.4)
|
UK bank rate
|
2.5
|
2.9
|
3.5
|
4.7
|
5.8
|
US
GDP2
|
2.9
|
2.1
|
1.3
|
0.7
|
—
|
US
unemployment3
|
3.4
|
3.9
|
4.4
|
5.5
|
6.7
|
US
HPI4
|
6.2
|
5.0
|
3.8
|
2.5
|
1.2
|
US federal funds rate
|
2.8
|
3.1
|
3.3
|
4.3
|
5.2
|
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
As at 31.12.21
|
%
|
%
|
%
|
%
|
%
|
UK
GDP2
|
4.4
|
3.9
|
3.4
|
2.7
|
1.8
|
UK
unemployment3
|
4.3
|
4.4
|
4.5
|
5.8
|
7.0
|
UK
HPI4
|
6.3
|
4.4
|
2.4
|
0.3
|
(2.0)
|
UK bank rate
|
0.3
|
0.5
|
0.7
|
1.7
|
2.3
|
US
GDP2
|
4.4
|
3.9
|
3.4
|
2.4
|
1.3
|
US
unemployment3
|
3.9
|
4.0
|
4.1
|
5.7
|
7.1
|
US
HPI4
|
8.9
|
7.7
|
6.2
|
3.6
|
1.4
|
US federal funds rate
|
0.5
|
0.6
|
0.8
|
1.5
|
2.1
|
1
|
UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK
unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers
Index; US GDP = Real GDP growth seasonally adjusted; US
unemployment = US civilian unemployment rate 16-year+; US HPI =
FHFA House Price Index.
|
2
|
5-year yearly average CAGR, starting 2021 (2021:
2020).
|
3
|
5-year average. Period based on 20 quarters from Q122 (2021:
Q121).
|
4
|
5-year quarter end CAGR, starting Q421 (2021: Q420).
|
ECL under 100% weighted scenarios for modelled
portfolios
The table below shows the modelled ECL assuming each of the five
modelled scenarios are 100% weighted with the dispersion of results
around the Baseline, highlighting the impact on exposure and ECL
across the scenarios. Model exposure uses exposure at default (EAD)
values and is not directly comparable to gross exposure used in
prior disclosures.
|
Scenarios
|
As at 31 December 2022
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
144,701
|
147,754
|
146,873
|
145,322
|
142,599
|
138,619
|
Credit
cards, unsecured loans and other retail lending2, 3
|
81,329
|
81,772
|
81,457
|
81,171
|
80,921
|
80,529
|
Wholesale loans
|
186,838
|
194,970
|
192,218
|
188,746
|
181,247
|
167,848
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
7
|
3
|
3
|
4
|
9
|
30
|
Credit cards, unsecured loans and other retail lending
|
592
|
562
|
579
|
594
|
604
|
610
|
Wholesale loans
|
325
|
245
|
274
|
308
|
382
|
431
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
—
|
—
|
—
|
—
|
—
|
—
|
Credit cards, unsecured loans and other retail lending
|
0.7
|
0.7
|
0.7
|
0.7
|
0.7
|
0.8
|
Wholesale loans
|
0.2
|
0.1
|
0.1
|
0.2
|
0.2
|
0.3
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
18,723
|
15,670
|
16,551
|
18,102
|
20,825
|
24,805
|
Credit
cards, unsecured loans and other retail lending2, 3
|
9,414
|
8,131
|
8,817
|
9,535
|
10,377
|
11,456
|
Wholesale loans
|
25,634
|
17,503
|
20,255
|
23,726
|
31,226
|
44,624
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
33
|
15
|
18
|
23
|
45
|
151
|
Credit cards, unsecured loans and other retail lending
|
1,786
|
1,487
|
1,629
|
1,785
|
2,004
|
2,274
|
Wholesale loans
|
603
|
392
|
463
|
562
|
809
|
1,288
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
0.2
|
0.1
|
0.1
|
0.1
|
0.2
|
0.6
|
Credit cards, unsecured loans and other retail lending
|
19.0
|
18.3
|
18.5
|
18.7
|
19.3
|
19.8
|
Wholesale loans
|
2.4
|
2.2
|
2.3
|
2.4
|
2.6
|
2.9
|
Stage 3 Model Exposure (£m)4
|
|
|
|
|
|
|
Home loans
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
1,553
|
Credit cards, unsecured loans and other retail lending
|
1,606
|
1,606
|
1,606
|
1,606
|
1,606
|
1,606
|
Wholesale loans
|
2,855
|
2,855
|
2,855
|
2,855
|
2,855
|
2,855
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
332
|
311
|
317
|
323
|
347
|
405
|
Credit cards, unsecured loans and other retail lending
|
1,033
|
1,011
|
1,023
|
1,034
|
1,048
|
1,059
|
Wholesale
loans5
|
49
|
45
|
47
|
49
|
57
|
64
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
21.4
|
20.0
|
20.4
|
20.8
|
22.3
|
26.1
|
Credit cards, unsecured loans and other retail lending
|
64.3
|
63.0
|
63.7
|
64.4
|
65.3
|
65.9
|
Wholesale
loans5
|
1.7
|
1.6
|
1.6
|
1.7
|
2.0
|
2.2
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
372
|
329
|
338
|
350
|
401
|
586
|
Credit cards, unsecured loans and other retail lending
|
3,411
|
3,060
|
3,231
|
3,413
|
3,656
|
3,943
|
Wholesale
loans5
|
977
|
682
|
784
|
919
|
1,248
|
1,783
|
Total Model ECL
|
4,760
|
4,071
|
4,353
|
4,682
|
5,305
|
6,312
|
Reconciliation to total ECL
|
£m
|
Total weighted model ECL
|
4,760
|
ECL
from individually assessed impairments5
|
434
|
ECL from non-modelled exposures and others
|
456
|
ECL from post model management adjustments
|
525
|
Of which: ECL from economic uncertainty adjustments
|
317
|
Total ECL
|
6,175
|
1
|
Model exposures are allocated to a stage based on an individual
scenario rather than a probability-weighted approach as required
for Barclays reported impairment allowances. As a result, it is not
possible to back solve the final reported weighted ECL from
individual scenarios given balances may be assigned to a different
stage dependent on the scenario.
|
2
|
For Credit cards, unsecured loans and other retail lending, the
model exposure movement between stages 1 and 2 across scenarios
differs due to additional impacts from the undrawn
exposure.
|
3
|
For Credit cards, unsecured loans and other retail lending, the
dispersion of results around Baseline has narrowed following model
enhancements made during the year.
|
4
|
Model exposures allocated to Stage 3 does not change in any of the
scenarios as the transition criteria relies only on an observable
evidence of default as at 31 December 2022 and not on macroeconomic
scenario.
|
5
|
Material wholesale loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £434m is
reported as an individually assessed impairment in the
reconciliation table.
|
The use of five scenarios with associated weightings results in a
total weighted ECL uplift from the Baseline ECL of
1.7%.
Home loans: Total weighted ECL
of £372m represents a 6.3% increase over the Baseline ECL
(£350m) with coverage ratios remaining steady across the
Upside scenarios, Baseline and Downside 1 scenario. Under the
Downside 2 scenario, total ECL increases to £586m driven by a
significant fall in UK HPI to (18.3)% in 2023 reflecting the
non-linearity of the UK portfolio.
Credit cards, unsecured loans and other retail lending:
Total weighted ECL of £3,411m is
aligned to the Baseline ECL (£3,413m). The impact of the
deteriorated Baseline scenario relative to the severity of the
downside scenarios is greater than the impact of the higher weights
applied to the Downside scenarios when compared to 2021. This
results in a convergence between Baseline and Weighted ECL in 2022.
Total ECL increases to £3,943m under the Downside 2 scenario,
driven by the significant increase in UK unemployment rate to 6.0%
and US unemployment rate to 6.0% in 2023.
Wholesale loans: Total weighted
ECL of £977m represents an 6.3% increase over the Baseline ECL
(£919m). Total ECL increases to £1,783m under Downside 2
scenario, driven by a significant decrease in UK GDP to (3.4)% and
US GDP to (2.7)% in 2023.
|
Scenarios
|
As at 31 December 2021
|
Weighted1
|
Upside 2
|
Upside 1
|
Baseline
|
Downside 1
|
Downside 2
|
Stage 1 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
137,279
|
139,117
|
138,424
|
137,563
|
135,544
|
133,042
|
Credit
cards, unsecured loans and other retail lending2, 3
|
56,783
|
54,758
|
55,771
|
56,821
|
57,698
|
55,315
|
Wholesale loans
|
174,249
|
177,453
|
176,774
|
175,451
|
169,814
|
161,998
|
Stage 1 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
4
|
2
|
2
|
3
|
6
|
14
|
Credit cards, unsecured loans and other retail lending
|
324
|
266
|
272
|
279
|
350
|
418
|
Wholesale loans
|
290
|
240
|
262
|
286
|
327
|
350
|
Stage 1 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
—
|
—
|
—
|
—
|
—
|
—
|
Credit cards, unsecured loans and other retail lending
|
0.6
|
0.5
|
0.5
|
0.5
|
0.6
|
0.8
|
Wholesale loans
|
0.2
|
0.1
|
0.1
|
0.2
|
0.2
|
0.2
|
Stage 2 Model Exposure (£m)
|
|
|
|
|
|
|
Home loans
|
22,915
|
21,076
|
21,769
|
22,631
|
24,649
|
27,151
|
Credit
cards, unsecured loans and other retail lending2, 3
|
7,500
|
6,447
|
6,757
|
7,084
|
10,689
|
18,452
|
Wholesale loans
|
32,256
|
29,052
|
29,732
|
31,054
|
36,692
|
44,507
|
Stage 2 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
15
|
10
|
11
|
12
|
22
|
47
|
Credit cards, unsecured loans and other retail lending
|
1,114
|
925
|
988
|
1,058
|
1,497
|
3,295
|
Wholesale loans
|
572
|
431
|
467
|
528
|
851
|
1,510
|
Stage 2 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
0.1
|
—
|
0.1
|
0.1
|
0.1
|
0.2
|
Credit cards, unsecured loans and other retail lending
|
14.9
|
14.3
|
14.6
|
14.9
|
14.0
|
17.9
|
Wholesale loans
|
1.8
|
1.5
|
1.6
|
1.7
|
2.3
|
3.4
|
Stage 3 Model Exposure (£m)4
|
|
|
|
|
|
|
Home loans
|
1,724
|
1,724
|
1,724
|
1,724
|
1,724
|
1,724
|
Credit cards, unsecured loans and other retail lending
|
1,922
|
1,922
|
1,922
|
1,922
|
1,922
|
1,922
|
Wholesale loans
|
1,811
|
1,811
|
1,811
|
1,811
|
1,811
|
1,811
|
Stage 3 Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
303
|
292
|
295
|
299
|
320
|
346
|
Credit cards, unsecured loans and other retail lending
|
1,255
|
1,236
|
1,245
|
1,255
|
1,277
|
1,297
|
Wholesale
loans5
|
323
|
321
|
322
|
323
|
326
|
332
|
Stage 3 Coverage (%)
|
|
|
|
|
|
|
Home loans
|
17.6
|
16.9
|
17.1
|
17.3
|
18.6
|
20.1
|
Credit cards, unsecured loans and other retail lending
|
65.3
|
64.3
|
64.8
|
65.3
|
66.4
|
67.5
|
Wholesale
loans5
|
17.8
|
17.7
|
17.8
|
17.8
|
18.0
|
18.3
|
Total Model ECL (£m)
|
|
|
|
|
|
|
Home loans
|
322
|
304
|
308
|
314
|
348
|
407
|
Credit cards, unsecured loans and other retail lending
|
2,693
|
2,427
|
2,505
|
2,592
|
3,124
|
5,010
|
Wholesale
loans5
|
1,185
|
992
|
1,051
|
1,137
|
1,504
|
2,192
|
Total Model ECL
|
4,200
|
3,723
|
3,864
|
4,043
|
4,976
|
7,609
|
Reconciliation to total ECL
|
£m
|
Total model ECL
|
4,200
|
ECL
from individually assessed impairments5
|
524
|
ECL from non-modelled exposures and others
|
74
|
ECL
from post model management adjustments6
|
1,486
|
Of which: ECL from economic uncertainty adjustments
|
1,692
|
Total ECL
|
6,284
|
1
|
Model exposures are allocated to a stage based on an individual
scenario rather than a probability-weighted approach, as required
for Barclays reported impairment allowances. As a result, it is not
possible to back solve the final reported weighted ECL from
individual scenarios given balances may be assigned to a different
stage dependent on the scenario.
|
2
|
For Credit cards, unsecured loans and other retail lending, the
model exposure movement between stages 1 and 2 across scenarios
differs due to additional impacts from the undrawn
exposure.
|
3
|
In 2021, Loans & Advances at amortised cost were used as model
exposure for the International Consumer Bank within this
disclosure. The process was revised in 2022 to incorporate Exposure
at Default (EAD) with no impact to ECL. This has been represented
in prior year comparatives.
|
4
|
Model exposures allocated to Stage 3 does not change in any of the
scenarios as the transition criteria relies only on an observable
evidence of default as at 31 December 2021 and not on macroeconomic
scenario.
|
5
|
Material wholesale loan defaults are individually assessed across
different recovery strategies. As a result, ECL of £524m is
reported as an individually assessed impairment in the
reconciliation table.
|
6
|
Post Model Adjustments include
negative adjustments reflecting operational post model
adjustments.
|
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
2021: 93%) of the Group’s
total home loans balance.
|
Barclays UK
|
Home loans principal portfolios
|
As at 31.12.22
|
As at 31.12.21
|
Gross loans and advances (£m)
|
162,380
|
158,192
|
90 day arrears rate, excluding recovery book (%)
|
0.1
|
0.1
|
Annualised gross charge-off rates - 180 days past due
(%)
|
0.5
|
0.5
|
Recovery book proportion of outstanding balances (%)
|
0.5
|
0.6
|
Recovery book impairment coverage ratio (%)
|
5.2
|
4.2
|
|
|
|
Average marked to market LTV
|
|
|
Balance weighted %
|
50.4
|
50.7
|
Valuation weighted %
|
37.3
|
37.5
|
|
|
|
New lending
|
Year ended 31.12.22
|
Year ended 31.12.21
|
New home loan bookings (£m)
|
30,307
|
33,945
|
New home loan proportion > 90% LTV (%)
|
2.8
|
1.9
|
Average LTV on new home loans: balance weighted (%)
|
68.1
|
69.5
|
Average LTV on new home loans: valuation weighted (%)
|
59.6
|
61.9
|
Home loans principal portfolios
– distribution of balances by LTV1
|
Distribution of balances
|
Distribution of impairment allowance
|
Coverage ratio
|
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
Total
|
Barclays UK
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
As at 31.12.22
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
78.8
|
10.5
|
0.8
|
90.1
|
10.2
|
30.8
|
33.2
|
74.2
|
—
|
0.2
|
2.9
|
0.1
|
>75% and <=90%
|
8.8
|
0.5
|
—
|
9.3
|
3.9
|
9.7
|
5.2
|
18.8
|
—
|
1.4
|
30.8
|
0.1
|
>90% and <=100%
|
0.6
|
—
|
—
|
0.6
|
0.3
|
0.3
|
2.4
|
3.0
|
—
|
1.5
|
85.0
|
0.4
|
>100%
|
—
|
—
|
—
|
—
|
0.1
|
0.6
|
3.3
|
4.0
|
0.4
|
21.4
|
64.9
|
13.1
|
As at 31.12.21
|
|
|
|
|
|
|
|
|
|
|
|
|
<=75%
|
77.2
|
11.3
|
0.7
|
89.2
|
8.3
|
17.7
|
31.9
|
57.9
|
—
|
0.1
|
2.4
|
—
|
>75% and <=90%
|
9.3
|
0.6
|
—
|
9.9
|
4.8
|
10.7
|
11.7
|
27.2
|
—
|
1.0
|
22.6
|
0.1
|
>90% and <=100%
|
0.9
|
—
|
—
|
0.9
|
0.9
|
1.0
|
2.9
|
4.8
|
0.1
|
1.9
|
87.5
|
0.3
|
>100%
|
—
|
—
|
—
|
—
|
0.2
|
1.0
|
8.9
|
10.1
|
0.4
|
6.4
|
100.0
|
14.1
|
1
|
Portfolio marked to market based on the most updated valuation
including recovery book balances. Updated valuations reflect the
application of the latest HPI available as at 31 December
2022.
|
New lending in 2022 was £30.3bn, a reduction of 11% on
2021. This was mainly driven by economic conditions that resulted
in general mortgage market suppression, including higher mortgage
payments as rates continued to rise and increased cost of living
factors in line with inflation.
Head Office: Italian home loans and advances at amortised
cost reduced to £4.5bn
(2021: £4.7bn) 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 58.8% (2021: 60.4%). 90 day arrears decreased to
1.2% (2021: 1.3%), gross charge-off rates increased to
0.6% (2021: 0.3%) due to a combination of affordability
stress related to rising inflation and interest rates, and the
particularly low rate observed in 2021 due to the COVID portfolio
improvements.
Credit cards, unsecured loans and other retail lending
The
principal portfolios listed below accounted for 85% (December 2021: 82%) 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 31.12.22
|
£m
|
%
|
%
|
%
|
%
|
Barclays UK
|
|
|
|
|
|
UK cards
|
9,939
|
0.9
|
0.2
|
3.7
|
3.6
|
UK personal loans
|
4,023
|
1.4
|
0.6
|
4.1
|
3.8
|
Barclays Partner Finance
|
2,612
|
0.5
|
0.2
|
0.7
|
0.7
|
Barclays International
|
|
|
|
|
|
US cards
|
25,554
|
2.2
|
1.2
|
2.4
|
2.3
|
Germany consumer lending
|
4,269
|
1.7
|
0.7
|
0.7
|
0.6
|
|
|
|
|
|
|
As at 31.12.21
|
|
|
|
|
|
Barclays UK
|
|
|
|
|
|
UK cards
|
9,933
|
1.0
|
0.2
|
4.1
|
4.0
|
UK personal loans
|
4,011
|
1.5
|
0.7
|
3.5
|
3.2
|
Barclays Partner Finance
|
2,471
|
0.4
|
0.2
|
1.4
|
1.4
|
Barclays International
|
|
|
|
|
|
US cards
|
17,779
|
1.6
|
0.8
|
4.3
|
4.2
|
Germany consumer lending
|
3,559
|
1.5
|
0.7
|
0.9
|
0.8
|
UK cards: 30 day arrears rate reduced marginally to 0.9%
(Q421: 1.0%) and 90 day arrears rate remained stable at 0.2% (Q421:
0.2%), whilst total exposure was stable at £9.9bn. Both the
gross and net write off rates decreased by 0.4% due to reduced debt
sales and monthly delinquency flows.
UK personal loans: 30 and 90 day arrears rates have reduced
marginally to 1.4% (Q421: 1.5%) and 0.6% (Q421: 0.7%) respectively,
whilst total exposure was stable at £4.0bn. Both the
annualised gross and net write off rates increased by 0.6% due to
increased regular debt sales.
Barclays Partner Finance: 30 day arrears rate increased
slightly to 0.5% (Q421: 0.4%) and 90 day arrears rate remained
stable at 0.2% (Q421: 0.2%), reflecting marginally higher entry
rates with stable flows through the delinquency cycles. Total
exposure grew by £0.1bn to £2.6bn (December 2021:
£2.5bn) as a result of increased sales. Both the annualised
gross and net write off rates decreased by 0.7% as a result of the
reducing delinquent stock and subsequent flow into
recoveries.
US cards: Balances increased due to the acquisition of the
Gap portfolio in June 2022, movement in the USD/GBP exchange rate
and core portfolio growth. 30 and 90 day arrears rates increased to
2.2% (Q421: 1.6%) and 1.2% (Q421: 0.8%) due to the partial
normalisation of customer behaviour and the acquisition of the Gap
portfolio, though rates remain below pre-pandemic levels. Write-off
rates decreased reflecting portfolio growth and the impact of lower
charge offs in 2021 due to the benefit of government support
schemes.
Germany consumer lending: 30 day arrears rate increased to
1.7% (Q421: 1.5%) due to increased macroeconomic uncertainty in
Europe, though the rate was consistent with pre-pandemic
levels.
Market Risk
Analysis of management value at risk (VaR)
The
table below shows the total management VaR on a diversified basis
by asset class. Total management VaR includes all trading positions
in Barclays Bank Group and it is calculated with a one-day holding
period. VaR limits are applied to total management VaR and by asset
class. Additionally, the market risk management function applies
VaR sub-limits to material businesses and trading
desks.
Management VaR (95%) by asset class
|
Year ended 31.12.22
|
|
Year ended 31.12.21
|
|
Average
|
High
|
Low
|
|
Average
|
High
|
Low
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
Credit risk
|
25
|
71
|
8
|
|
14
|
30
|
7
|
Interest rate risk
|
13
|
23
|
4
|
|
7
|
15
|
4
|
Equity risk
|
10
|
29
|
4
|
|
9
|
29
|
4
|
Basis risk
|
12
|
24
|
4
|
|
6
|
10
|
3
|
Spread risk
|
7
|
11
|
3
|
|
4
|
6
|
3
|
Foreign exchange risk
|
8
|
25
|
2
|
|
4
|
16
|
1
|
Commodity risk
|
—
|
1
|
—
|
|
—
|
1
|
—
|
Inflation risk
|
6
|
17
|
3
|
|
3
|
5
|
2
|
Diversification
effect1
|
(45)
|
n/a
|
n/a
|
|
(28)
|
n/a
|
n/a
|
Total management VaR
|
36
|
73
|
13
|
|
19
|
36
|
6
|
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 89% to
£36m (2021:
£19m) driven by higher
market volatility. The Russia-Ukraine conflict and elevated
inflation increased volatility across all asset classes as central
banks increased base rates, equity markets declined, and credit
spreads widened during this period. The Global Markets business
maintained a generally short and defensive risk profile (i.e.
positioned to gain as the market sells off) for most of 2022. VaR
increased in Q4 2022 from an increase in funded, fair-value
leverage loan exposure in Investment Banking. Risk taking remained
within agreed risk appetite limits at all times in
2022.
Treasury and Capital Risk
The
Group has established a comprehensive set of policies, standards
and controls for managing its liquidity risk; together these set
out the requirements for Barclays’ liquidity risk framework.
The liquidity risk framework meets the PRA standards and enables
Barclays to maintain liquidity resources that are sufficient in
amount and quality, and a funding profile that is appropriate to
meet the Group’s Liquidity Risk Appetite. The liquidity risk
framework is delivered via a combination of policy formation,
review and challenge, governance, analysis, stress testing, limit
setting and monitoring.
Liquidity risk stress testing
The
internal liquidity stress test 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 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 2022, 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 31.12.22
|
As at 31.12.21
|
|
£bn
|
£bn
|
Eligible liquidity buffer
|
295
|
285
|
Net stress outflows
|
(178)
|
(169)
|
Surplus
|
117
|
116
|
|
|
|
Liquidity coverage ratio
|
165%
|
168%
|
Net Stable Funding Ratio
The
external NSFR metric requires banks to maintain a stable funding
profile taking into account both on and certain off balance sheet
exposures over a medium to long term period. The ratio is defined
as the Available Stable Funding (capital and certain liabilities
which are treated as stable sources of funding) relative to the
Required Stable Funding (assets on balance sheet and certain off
balance sheet exposures). The NSFR (average of last four quarter
ends) as at 31 December 2022 was 137%, which was a surplus above
requirements of £155bn.
Net Stable Funding
Ratio1
|
As at31.12.22
|
|
£bn
|
Total Available Stable Funding
|
576
|
Total Required Stable Funding
|
421
|
Surplus
|
155
|
|
|
Net Stable Funding Ratio
|
137%
|
1
|
Represents average of the last four spot quarter end
positions.
|
As part
of the liquidity risk appetite, Barclays establishes minimum LCR,
NSFR and internal liquidity stress test limits. The Group plans to
maintain its surplus to the internal and regulatory requirements at
an efficient level. Risks to market funding conditions, the
Group’s liquidity position and funding profile are assessed
continuously, and actions are taken to manage the size of the
liquidity pool and the funding profile as appropriate.
Composition of the Group liquidity pool
|
|
|
|
|
|
|
|
|
LCR eligible1
High Quality Liquid Assets
(HQLA)
|
|
Liquidity pool
|
|
Cash
|
Level 1
|
Level 2A
|
Level 2B
|
Total
|
|
2022
|
2021
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
£bn
|
£bn
|
Cash and deposits with central banks2
|
248
|
—
|
—
|
—
|
248
|
|
263
|
245
|
|
|
|
|
|
|
|
|
|
Government bonds3
|
|
|
|
|
|
|
|
|
AAA to AA-
|
—
|
21
|
10
|
—
|
31
|
|
39
|
26
|
A+ to A-
|
—
|
1
|
2
|
—
|
3
|
|
3
|
2
|
BBB+ to BBB-
|
—
|
—
|
—
|
—
|
—
|
|
—
|
—
|
Total government bonds
|
—
|
22
|
12
|
—
|
34
|
|
42
|
28
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
Government Guaranteed Issuers, PSEs and GSEs
|
—
|
5
|
1
|
—
|
6
|
|
6
|
6
|
International Organisations and MDBs
|
—
|
2
|
—
|
—
|
2
|
|
2
|
5
|
Covered bonds
|
—
|
2
|
2
|
—
|
4
|
|
5
|
6
|
Other
|
—
|
—
|
—
|
1
|
1
|
|
—
|
1
|
Total other
|
—
|
9
|
3
|
1
|
13
|
|
13
|
18
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 2022
|
248
|
31
|
15
|
1
|
295
|
|
318
|
|
Total as at 31 December 2021
|
243
|
37
|
3
|
2
|
285
|
|
|
291
|
1
|
The LCR eligible HQLA is adjusted for operational restrictions upon
consolidation under Article 8 of the Liquidity Coverage Ratio
section of the PRA rulebook (CRR) such as trapped liquidity within
Barclays subsidiaries. It also reflects differences in eligibility
of assets between the LCR and Barclays’ Liquidity
Pool.
|
2
|
Includes cash held at central banks and surplus cash at central
banks related to payment schemes. Over 99% (December 2021: over
99%) was placed with the Bank of England, US Federal Reserve,
European Central Bank, Bank of Japan and Swiss National
Bank.
|
3
|
Of which over 79% (December 2021: over 82%) comprised UK, US,
French, German, Japanese, Swiss and Dutch securities.
|
The
Group liquidity pool increased to £318bn as at December 2022
(December 2021: £291bn) driven by continued deposit growth and
an increase in wholesale funding, which were partly offset by an
increase in business funding consumption and trapped liquidity
within Barclays’ subsidiaries. During 2022, the month-end
liquidity pool ranged from £309bn to £359bn (2021:
£290bn to £337bn), and the month-end average balance was
£331bn (2021: £303bn). 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
31 December 2022, 60% (December 2021: 58%) of the liquidity pool
was located in Barclays Bank PLC, 25% (December 2021: 30%) in
Barclays Bank UK PLC and 9% (December 2021: 7%) 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
or operational restrictions, 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 and controls set by
the respective entity Boards and 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..22
|
|
As at 31.12.21
|
|
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
|
225
|
258
|
87
|
|
85
|
Barclays International
|
170
|
288
|
59
|
|
52
|
Head Office
|
4
|
—
|
|
|
|
Barclays Group
|
399
|
546
|
73
|
|
70
|
1
|
The loan: deposit ratio is calculated as loans and advances at
amortised cost divided by deposits at amortised cost.
|
Funding structure and funding relationships
The
basis for liquidity risk management is a funding structure that
reduces the probability of a liquidity stress leading to an
inability to meet funding obligations as they fall due. The
Group’s overall funding strategy is to develop a diversified
funding base (geographically, by type and by counterparty) and
maintain access to a variety of alternative funding sources, to
provide protection against unexpected fluctuations, while
minimising the cost of funding.
Within
this, the Group aims to align the sources and uses of funding. As
such, retail and corporate loans and advances are largely funded by
deposits in the relevant entities, with the surplus primarily
funding the liquidity pool. The majority of reverse repurchase
agreements are matched by repurchase agreements. Derivative
liabilities and assets are largely matched. A substantial
proportion of balance sheet derivative positions qualify for
counterparty netting and the remaining portions are largely offset
when netted against cash collateral received and paid. Wholesale
debt and equity is used to fund residual assets.
These
funding relationships as at 31 December 2022 are summarised
below:
|
|
|
|
|
|
Restated1
|
|
As at 31.12.22
|
As at 31.12.21
|
|
|
As at 31.12.22
|
As at 31.12.21
|
Assets
|
£bn
|
£bn
|
|
Liabilities and equity
|
£bn
|
£bn
|
Loans
and advances at amortised cost2
|
385
|
358
|
|
Deposits at amortised cost
|
546
|
519
|
Group liquidity pool
|
318
|
291
|
|
<1 Year wholesale funding
|
73
|
67
|
|
|
|
|
>1 Year wholesale funding
|
111
|
101
|
Reverse repurchase agreements, trading portfolio assets, cash
collateral and settlement balances
|
412
|
388
|
|
Repurchase agreements, trading portfolio liabilities, cash
collateral and settlement balances
|
370
|
330
|
Derivative financial instruments
|
302
|
263
|
|
Derivative financial instruments
|
290
|
257
|
Other
assets3
|
97
|
84
|
|
Other liabilities
|
55
|
40
|
|
|
|
|
Equity
|
69
|
70
|
Total assets
|
1,514
|
1,384
|
|
Total liabilities and equity
|
1,514
|
1,384
|
1
|
2021 financial metrics have been restated to reflect the impact of
the Over-issuance of Securities. See Restatement of financial
statements (Note 1) on page 69
for more information. The contractual maturity profile of Senior
unsecured (privately placed) has been restated to reflect the
impact of the Over-issuance of Securities.
|
2
|
Adjusted for liquidity pool debt securities reported at amortised
cost of £14bn (December 2021: £3bn).
|
3
|
Other assets include fair value assets that are not part of reverse
repurchase agreements or trading portfolio assets, and other asset
categories.
|
Composition of wholesale funding
Wholesale
funding outstanding (excluding repurchase agreements) was
£184.0bn (December 2021: £167.5bn). In 2022, the Group
issued £15.3bn of MREL eligible instruments from Barclays PLC
(the Parent company) in a range of tenors and
currencies.
Our
operating companies also access wholesale funding markets to
maintain their stable and diversified funding bases. Barclays Bank
PLC continued to issue in the shorter-term and medium-term notes
markets. In addition, Barclays Bank UK PLC continued to issue in
the shorter-term markets and maintains
active secured funding programmes.
Wholesale
funding of £72.5bn (December 2021: £66.7bn1) matures in less
than one year, representing 39% (December 2021: 40%1) of total wholesale
funding outstanding. This includes £15.0bn (December 2021:
£24.9bn1) related to term
funding2.
Maturity profile of wholesale
funding2,3
|
<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)
|
—
|
—
|
0.2
|
1.7
|
1.9
|
5.8
|
5.6
|
8.3
|
4.5
|
18.0
|
44.1
|
Senior unsecured (privately placed)
|
—
|
—
|
—
|
0.2
|
0.2
|
0.1
|
—
|
—
|
—
|
1.0
|
1.3
|
Subordinated liabilities
|
—
|
—
|
—
|
—
|
—
|
1.0
|
—
|
1.6
|
—
|
7.0
|
9.6
|
Barclays Bank PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
0.3
|
17.7
|
12.8
|
11.0
|
41.8
|
1.5
|
0.6
|
0.1
|
—
|
—
|
44.0
|
Asset backed commercial paper
|
3.6
|
6.6
|
0.8
|
—
|
11.0
|
—
|
—
|
—
|
—
|
—
|
11.0
|
Senior unsecured (public benchmark)
|
—
|
—
|
—
|
—
|
—
|
1.0
|
—
|
—
|
—
|
—
|
1.0
|
Senior
unsecured (privately placed)4
|
1.2
|
2.1
|
2.1
|
5.1
|
10.5
|
11.0
|
9.9
|
3.7
|
4.2
|
19.1
|
58.4
|
Asset backed securities
|
—
|
0.1
|
—
|
0.2
|
0.3
|
1.8
|
0.7
|
0.5
|
0.5
|
1.2
|
5.0
|
Subordinated liabilities
|
—
|
—
|
—
|
0.3
|
0.3
|
0.2
|
0.1
|
0.3
|
—
|
0.7
|
1.6
|
Barclays Bank UK PLC (including subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of deposit and commercial paper
|
4.7
|
—
|
—
|
—
|
4.7
|
—
|
—
|
—
|
—
|
—
|
4.7
|
Senior unsecured (public benchmark)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
0.1
|
0.1
|
Covered Bonds
|
1.3
|
—
|
0.5
|
—
|
1.8
|
—
|
—
|
—
|
0.5
|
0.9
|
3.2
|
Total as at 31 December 2022
|
11.1
|
26.5
|
16.4
|
18.5
|
72.5
|
22.4
|
16.9
|
14.5
|
9.7
|
48.0
|
184.0
|
Of which secured
|
4.9
|
6.7
|
1.3
|
0.2
|
13.1
|
1.8
|
0.7
|
0.5
|
1.0
|
2.1
|
19.2
|
Of which unsecured
|
6.2
|
19.8
|
15.1
|
18.3
|
59.4
|
20.6
|
16.2
|
14.0
|
8.7
|
45.9
|
164.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Total as at 31 December 20211
|
14.1
|
21.7
|
15.5
|
15.4
|
66.7
|
15.4
|
15.1
|
9.9
|
11.4
|
49.0
|
167.5
|
Of which secured
|
2.4
|
6.4
|
0.6
|
0.5
|
9.9
|
1.9
|
2.0
|
0.1
|
0.3
|
2.4
|
16.6
|
Of which unsecured
|
11.7
|
15.3
|
14.9
|
14.9
|
56.8
|
13.5
|
13.1
|
9.8
|
11.1
|
46.6
|
150.9
|
1
|
2021 financial metrics have been restated to reflect the impact of
the Over-issuance of Securities. See Restatement of financial
statements (Note 1) on page 69
for more information. The contractual maturity profile of financial
liabilities designated at fair value has been restated to reflect
the impact of the Over-issuance of Securities. Securities issued by
BBPLC in excess of the maximum aggregate offering price registered
under Barclays Bank PLC's 2019 F-3 and Barclays Bank PLC’s
predecessor shelf registration statement on Form F-3 filed in 2018
(Predecessor Shelf) with a value of £6,997m have been
classified as "on demand".
|
2
|
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.
|
3
|
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.
|
4
|
Includes structured notes of £48.4bn, of which £9.4bn
matures within one year.
|
Regulatory minimum requirements
Capital
The Group’s Overall Capital Requirement for CET1 is 11.3%
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 2.4% Pillar 2A requirement and a 0.4%
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 13 December
2021, the Financial Policy Committee (FPC) announced the
re-introduction of a CCyB rate of 1% for UK exposures with effect
from 13 December 2022. The buffer rates set by other national
authorities for non-UK exposures are not currently material.
Overall, this results in a 0.4% CCyB for the Group. On 5 July 2022,
the FPC announced that the UK CCyB rate will be increased from 1%
to 2% with effect from 5 July 2023.
The Group’s updated Pillar 2A requirement as per the
PRA’s Individual Capital requirement is 4.3% of which at
least 56.25% needs to be met with CET1 capital, equating to 2.4% of
RWAs. The Pillar 2A requirement, based on a point in time
assessment, has been set as a proportion of RWAs and is subject to
at least annual review.
The Group’s CET1 target ratio of 13-14% takes into account
headroom above requirements which includes a confidential
institution-specific PRA buffer. The Group remains above its
minimum capital regulatory requirements including the PRA
buffer.
Leverage
The Group is subject to a UK leverage ratio requirement of
4.0%. This comprises the 3.25%
minimum requirement, a G-SII additional leverage ratio buffer
(G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer
(CCLB) of 0.2%. Although the leverage ratio is expressed in terms
of Tier 1 (T1) capital, 75% of the minimum requirement, equating to
2.4375%, needs to be met with CET1 capital. In addition, the G-SII
ALRB and CCLB must be covered solely with CET1 capital. The CET1
capital held against the 0.53% G-SII ALRB was £5.9bn and
against the 0.2% CCLB was £2.3bn.
The
Group is also required to disclose an average UK leverage ratio
which is based on capital on the last day of each month in the
quarter and an exposure measure for each day in the
quarter.
MREL
The Group is required to meet the higher of: (i) two times the sum
of 8% Pillar 1 and 4.3% Pillar 2A equating to 24.5% of RWAs; and
(ii) 6.75% of leverage exposures. In addition, the higher of
regulatory capital and leverage buffers apply. CET1 capital cannot
be counted towards both MREL and the buffers, meaning that the
buffers, including the above mentioned confidential
institution-specific PRA buffer, will effectively be applied above
MREL requirements.
Significant regulatory updates in the period
Capital and RWAs
On 1 January 2022, the PRA’s implementation of Basel III
standards took effect including the re-introduction of the 100%
CET1 capital deduction for qualifying software intangible assets
and the introduction of the Standardised Approach for Counterparty
Credit Risk (SA-CCR) which replaces the Current Exposure Method for
Standardised derivative exposures as a more risk sensitive
approach. In addition, the PRA also implemented IRB roadmap changes
which includes revisions to the criteria for definition of default,
probability of default and loss given default estimation to ensure
supervisory consistency and increase transparency of IRB
models.
On 30 November 2022, the PRA published its consultation paper
'Implementation of the Basel 3.1 standards', which covers the
remaining parts of the Basel III standards to be implemented in the
UK. Changes are expected to come in to force from 1 January 2025,
other than those areas subject to transitional provisions. Barclays
currently expects the impact on RWAs on 1 January 2025 to be at the
lower end of the prior 5-10% RWA inflation guidance. The PRA is
currently consulting on the rule changes, and there will be a
review of the Pillar 2A framework in 2024 which may offset some of
the impact.
Leverage
From 1 January 2022, UK banks became subject to a single UK
leverage ratio requirement meaning that the CRR leverage ratio no
longer applies. Under the revised UK leverage ratio framework,
central bank claims have been excluded from the UK leverage
exposure measure where they are matched by qualifying liabilities
(rather than deposits).
In the disclosures that follow, references to CRR, as amended by
CRR II, mean the capital regulatory requirements, as they form part
of domestic law by virtue of the European Union (Withdrawal) Act
2018, as amended.
Impact of Over-issuance of Securities in the US
Basis of preparation
In March 2022, the Group became aware that Barclays Bank PLC had
issued securities materially in excess of the amount it had
registered with the SEC under Barclays Bank PLC’s 2019 F-3.
Subsequently, the Group became aware that securities had also been
issued in excess of the amount it had registered with the SEC under
the Predecessor Shelf. The securities issued in excess of the
registered amount included structured products and exchange traded
notes. As these securities were not issued in compliance with the
Securities Act, a right of rescission arose for certain purchasers
of the securities. A portion of the costs associated with the right
of rescission was attributable to the financial statements for the
year ended 31 December 2021, resulting in the restatement of the
2021 figures in the disclosures below.
Prior to the restatement, litigation and conduct charges in the
income statement in relation to 2021 were underreported by
£220m (pre-tax). This resulted in a CET1 capital decrease of
£170m from £47,497m to £47,327m. Both the
transitional and fully loaded CET1 ratios remained unchanged at
15.1% and 14.7% respectively. The T1 ratio moved from 19.2% to
19.1% and the total capital ratio moved from 22.3% to
22.2%.
The leverage exposure increased £1.9bn to recognise on a
regulatory basis, the potential commitment relating to the
rescission offer. This resulted in the UK leverage ratio moving
from 5.3% to 5.2% whilst the average UK leverage ratio remained
unchanged at 4.9%.
Total own funds and eligible liabilities decreased £0.2bn to
£108bn, which was in excess of a restated requirement to hold
£94bn of own funds and eligible liabilities.
|
|
|
Restated1
|
Capital ratios2,3
|
As at 31.12.22
|
As at 30.09.22
|
As at 31.12.21
|
CET1
|
13.9%
|
13.8%
|
15.1%
|
T1
|
17.9%
|
17.6%
|
19.1%
|
Total regulatory capital
|
20.8%
|
20.3%
|
22.2%
|
|
|
|
|
Capital resources
|
£m
|
£m
|
£m
|
Total equity excluding non-controlling interests per the balance
sheet
|
68,292
|
67,034
|
69,052
|
Less: other equity instruments (recognised as AT1
capital)
|
(13,284)
|
(13,270)
|
(12,259)
|
Adjustment to retained earnings for foreseeable ordinary share
dividends
|
(787)
|
(494)
|
(666)
|
Adjustment to retained earnings for foreseeable repurchase of
shares
|
—
|
(9)
|
—
|
Adjustment to retained earnings for foreseeable other equity
coupons
|
(37)
|
(82)
|
(32)
|
|
|
|
|
Other regulatory adjustments and deductions
|
|
|
|
Additional value adjustments (PVA)
|
(1,726)
|
(1,850)
|
(1,585)
|
Goodwill and intangible assets
|
(8,224)
|
(8,356)
|
(6,804)
|
Deferred tax assets that rely on future profitability excluding
temporary differences
|
(1,500)
|
(1,034)
|
(1,028)
|
Fair value reserves related to gains or losses on cash flow
hedges
|
7,237
|
9,451
|
852
|
Excess of expected losses over impairment
|
(119)
|
(7)
|
—
|
Gains or losses on liabilities at fair value resulting from own
credit
|
(620)
|
(773)
|
892
|
Defined benefit pension fund assets
|
(3,430)
|
(3,162)
|
(2,619)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
(20)
|
(20)
|
(50)
|
Adjustment under IFRS 9 transitional arrangements
|
700
|
759
|
1,229
|
Other regulatory adjustments
|
396
|
387
|
345
|
CET1 capital
|
46,878
|
48,574
|
47,327
|
|
|
|
|
AT1 capital
|
|
|
|
Capital instruments and related share premium accounts
|
13,284
|
13,270
|
12,259
|
Qualifying AT1 capital (including minority interests) issued by
subsidiaries
|
—
|
—
|
637
|
Other regulatory adjustments and deductions
|
(60)
|
(60)
|
(80)
|
AT1 capital
|
13,224
|
13,210
|
12,816
|
|
|
|
|
T1 capital
|
60,102
|
61,784
|
60,143
|
|
|
|
|
T2 capital
|
|
|
|
Capital instruments and related share premium accounts
|
9,000
|
8,524
|
8,713
|
Qualifying T2 capital (including minority interests) issued by
subsidiaries
|
1,095
|
1,176
|
1,113
|
Credit risk adjustments (excess of impairment over expected
losses)
|
35
|
—
|
73
|
Other regulatory adjustments and deductions
|
(160)
|
(160)
|
(160)
|
Total regulatory capital
|
70,072
|
71,324
|
69,882
|
|
|
|
|
Total RWAs
|
336,518
|
350,774
|
314,136
|
1
|
Capital metrics as at 31 December 2021 have been restated to
reflect the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 for more information. The transitional CET1
ratio remains unchanged at 15.1%.
|
2
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II. This
includes IFRS 9 transitional arrangements and the grandfathering of
CRR II non-compliant capital instruments. December 2021
comparatives include the grandfathering of CRR non-compliant
capital instruments.
|
3
|
The fully loaded CET1 ratio, as is relevant for assessing against
the conversion trigger in Barclays PLC AT1 securities, was 13.7%,
with £46.2bn of CET1 capital and £336.3bn of RWAs
calculated without applying the transitional arrangements of the
CRR as amended by CRR II.
|
Movement in CET1 capital
|
Three months ended 31.12.22
|
Twelve months ended 31.12.22
|
|
£m
|
£m
|
Opening CET1 capital1
|
48,574
|
47,327
|
|
|
|
Profit for the period attributable to equity holders
|
1,321
|
5,928
|
Own credit relating to derivative liabilities
|
90
|
(85)
|
Ordinary share dividends paid and foreseen
|
(293)
|
(1,149)
|
Purchased and foreseeable share repurchase
|
—
|
(1,500)
|
Other equity coupons paid and foreseen
|
(240)
|
(910)
|
Increase in retained regulatory capital generated from
earnings
|
878
|
2,284
|
|
|
|
Net impact of share schemes
|
99
|
108
|
Fair value through other comprehensive income reserve
|
(26)
|
(1,277)
|
Currency translation reserve
|
(1,401)
|
2,032
|
Other reserves
|
(4)
|
138
|
(Decrease)/increase in other qualifying reserves
|
(1,332)
|
1,001
|
|
|
|
Pension remeasurements within reserves
|
(606)
|
(281)
|
Defined benefit pension fund asset deduction
|
(268)
|
(811)
|
Net impact of pensions
|
(874)
|
(1,092)
|
|
|
|
Additional value adjustments (PVA)
|
124
|
(141)
|
Goodwill and intangible assets
|
132
|
(1,420)
|
Deferred tax assets that rely on future profitability excluding
those arising from temporary differences
|
(466)
|
(472)
|
Excess of expected loss over impairment
|
(112)
|
(119)
|
Direct and indirect holdings by an institution of own CET1
instruments
|
—
|
30
|
Adjustment under IFRS 9 transitional arrangements
|
(59)
|
(529)
|
Other regulatory adjustments
|
13
|
9
|
(Decrease) in regulatory capital due to adjustments and
deductions
|
(368)
|
(2,642)
|
|
|
|
Closing CET1 capital
|
46,878
|
46,878
|
1
|
Opening balance as at 1 January 2022 has been restated to reflect
the impact of the Over-issuance of Securities. See Basis of
preparation on page 55 for more
information
|
CET1 capital decreased £0.4bn to £46.9bn (December 2021:
£47.3bn).
CET1 capital decreased by £1.7bn as a result of regulatory
changes that took effect from 1 January 2022 including the
re-introduction of the 100% CET1 capital deduction for qualifying
software intangible assets and a reduction in IFRS9 transitional
relief due to the relief applied to the pre-2020 impairment charge
reducing to 25% in 2022 from 50% in 2021 and the relief applied to
the post-2020 impairment charge reducing to 75% in 2022 from 100%
in 2021.
£5.9bn of capital generated from profit, after absorbing the
£0.6bn net of tax impact of the Over-issuance of Securities,
was partially offset by distributions of £3.5bn
comprising:
|
●
|
£1.5bn of total buybacks including the £1bn buyback
announced with FY21 results and the £0.5bn buyback announced
with H122 results
|
●
|
£1.1bn of ordinary share dividends paid and foreseen
reflecting the £0.4bn half year 2022 dividend paid and a
£0.8bn accrual towards a full year 2022 dividend
|
●
|
£0.9bn of equity coupons paid and foreseen
|
Other significant movements in the period were:
|
●
|
£1.3bn reduction from decreases in the fair value of the bond
portfolio through other comprehensive income
|
●
|
£2.0bn increase in the currency translation reserve driven by
the appreciation of period end USD against GBP
|
●
|
£1.1bn decrease due to the net impact of pensions primarily as
a result of the accelerated cash settlement to the UKRF of earlier
deficit reduction contributions as well as deficit reduction
payments made in 2022
|
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 31.12.22
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
|
£m
|
£m
|
Barclays UK
|
6,836
|
54,752
|
|
167
|
—
|
—
|
72
|
|
233
|
—
|
|
11,023
|
73,083
|
Corporate and Investment Bank
|
35,738
|
75,413
|
|
16,814
|
21,449
|
80
|
3,093
|
|
13,716
|
22,497
|
|
27,064
|
215,864
|
Consumer, Cards and Payments
|
27,882
|
3,773
|
|
214
|
46
|
—
|
61
|
|
—
|
388
|
|
6,559
|
38,923
|
Barclays International
|
63,620
|
79,186
|
|
17,028
|
21,495
|
80
|
3,154
|
|
13,716
|
22,885
|
|
33,623
|
254,787
|
Head Office
|
2,636
|
6,843
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(831)
|
8,648
|
Barclays Group
|
73,092
|
140,781
|
|
17,195
|
21,495
|
80
|
3,226
|
|
13,949
|
22,885
|
|
43,815
|
336,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 30.09.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
6,487
|
55,121
|
|
246
|
—
|
—
|
84
|
|
256
|
—
|
|
11,047
|
73,241
|
Corporate and Investment Bank
|
38,886
|
75,561
|
|
20,115
|
24,735
|
446
|
3,111
|
|
15,596
|
26,879
|
|
25,296
|
230,625
|
Consumer, Cards and Payments
|
28,180
|
3,597
|
|
279
|
35
|
—
|
69
|
|
—
|
104
|
|
6,424
|
38,688
|
Barclays International
|
67,066
|
79,158
|
|
20,394
|
24,770
|
446
|
3,180
|
|
15,596
|
26,983
|
|
31,720
|
269,313
|
Head Office
|
2,785
|
6,431
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(996)
|
8,220
|
Barclays Group
|
76,338
|
140,710
|
|
20,640
|
24,770
|
446
|
3,264
|
|
15,852
|
26,983
|
|
41,771
|
350,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 31.12.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays UK
|
7,195
|
53,408
|
|
426
|
—
|
—
|
138
|
|
100
|
—
|
|
11,022
|
72,289
|
Corporate and Investment Bank
|
29,420
|
64,416
|
|
15,223
|
19,238
|
105
|
2,289
|
|
17,306
|
27,308
|
|
25,359
|
200,664
|
Consumer, Cards and Payments
|
20,770
|
2,749
|
|
215
|
18
|
—
|
21
|
|
—
|
57
|
|
6,391
|
30,221
|
Barclays International
|
50,190
|
67,165
|
|
15,438
|
19,256
|
105
|
2,310
|
|
17,306
|
27,365
|
|
31,750
|
230,885
|
Head Office
|
4,733
|
7,254
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
(1,025)
|
10,962
|
Barclays Group
|
62,118
|
127,827
|
|
15,864
|
19,256
|
105
|
2,448
|
|
17,406
|
27,365
|
|
41,747
|
314,136
|
Movement analysis of RWAs
|
Credit risk
|
Counterparty credit risk
|
Market risk
|
Operational risk
|
Total RWAs
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Opening RWAs (as at 31.12.21)
|
189,945
|
37,673
|
44,771
|
41,747
|
314,136
|
Book size
|
15,371
|
(3,254)
|
(9,707)
|
2,068
|
4,478
|
Acquisitions and disposals
|
(1,187)
|
—
|
—
|
—
|
(1,187)
|
Book quality
|
(2,236)
|
1,320
|
—
|
—
|
(916)
|
Model updates
|
—
|
—
|
—
|
—
|
—
|
Methodology and policy
|
2,961
|
2,952
|
—
|
—
|
5,913
|
Foreign
exchange movements1
|
9,019
|
3,305
|
1,770
|
—
|
14,094
|
Total RWA movements
|
23,928
|
4,323
|
(7,937)
|
2,068
|
22,382
|
Closing RWAs (as at 31.12.22)
|
213,873
|
41,996
|
36,834
|
43,815
|
336,518
|
1
|
Foreign exchange movements does not include the impact of foreign
exchange for modelled market risk or operational risk.
|
Overall RWAs increased £22.4bn to £336.5bn (December
2021: £314.1bn)
Credit risk RWAs increased £23.9bn:
|
●
|
A £15.4bn increase in book size primarily driven by an
increase in lending activities across CIB, CC&P and growth in
mortgages within Barclays UK
|
●
|
A £1.2bn decrease in acquisitions and disposals primarily
driven by the disposal of Barclays' equity stake in Absa, offset by
Gap portfolio acquisition
|
●
|
A £2.2bn decrease in RWAs due to book quality primarily driven
by the benefit in mortgages from an increase in the HPI, partially
offset by movements in risk parameters primarily within Barclays
UK
|
●
|
A £3.0bn increase in methodology and policy primarily as a
result of regulatory changes relating to implementation of IRB
roadmap changes, partially offset by the reversal of the software
intangibles benefit
|
●
|
A £9.0bn increase in FX primarily due to appreciation of USD
against GBP
|
Counterparty Credit risk RWAs increased £4.3bn:
|
●
|
A £3.3bn decrease in book size primarily driven by derivative
mark-to-market movements
|
●
|
A £1.3bn increase in RWAs due to book quality primarily driven
by movements in risk parameters within CIB
|
●
|
A £3.0bn increase in methodology and policy as a result of
regulatory changes relating to the introduction of
SA-CCR
|
●
|
A £3.3bn increase in FX primarily due to appreciation of USD
against GBP
|
Market risk RWAs decreased £7.9bn:
|
●
|
A £9.7bn decrease in book size primarily driven by a
£6.7bn in Stressed Value at Risk (SVaR) model adjustment as a
result of changes in portfolio composition, a £2.3bn decrease
due to client and trading activities and a £0.7bn reduction in
Structural FX
|
●
|
A £1.8bn increase in FX primarily due to appreciation of USD
against GBP
|
Operational risk RWAs increased £2.1bn:
|
●
|
A £2.1bn increase in book size primarily driven by the
inclusion of higher 2022 CIB income compared to 2019
|
|
|
|
Restated1
|
Leverage ratios2,3
|
As at 31.12.22
|
As at 30.09.22
|
As at 31.12.21
|
£m
|
£m
|
£m
|
Average UK leverage ratio
|
4.8%
|
4.8%
|
4.9%
|
Average T1 capital
|
60,865
|
60,651
|
59,739
|
Average UK leverage exposure
|
1,280,972
|
1,259,648
|
1,229,041
|
|
|
|
|
UK leverage ratio
|
5.3%
|
5.0%
|
5.2%
|
|
|
|
|
CET1 capital
|
46,878
|
48,574
|
47,327
|
AT1 capital
|
13,224
|
13,210
|
12,179
|
T1 capital
|
60,102
|
61,784
|
59,506
|
|
|
|
|
UK leverage exposure
|
1,129,973
|
1,232,105
|
1,137,904
|
|
|
|
|
UK leverage exposure
|
|
|
|
Accounting assets
|
|
|
|
Derivative financial instruments
|
302,380
|
416,908
|
262,572
|
Derivative cash collateral
|
69,048
|
90,948
|
58,177
|
Securities financing transactions (SFTs)
|
189,637
|
224,978
|
170,853
|
Loans and advances and other assets
|
952,634
|
994,065
|
892,683
|
Total IFRS assets
|
1,513,699
|
1,726,899
|
1,384,285
|
|
|
|
|
Regulatory consolidation adjustments
|
(8,278)
|
(6,598)
|
(3,665)
|
|
|
|
|
Derivatives adjustments
|
|
|
|
Derivatives netting
|
(256,309)
|
(347,999)
|
(236,881)
|
Adjustments to collateral
|
(52,715)
|
(76,083)
|
(50,929)
|
Net written credit protection
|
16,190
|
26,838
|
15,509
|
Potential future exposure (PFE) on derivatives
|
84,168
|
84,597
|
137,291
|
Total derivatives adjustments
|
(208,666)
|
(312,647)
|
(135,010)
|
|
|
|
|
SFTs adjustments
|
24,203
|
30,477
|
24,544
|
|
|
|
|
Regulatory deductions and other adjustments
|
(21,447)
|
(21,582)
|
(20,219)
|
|
|
|
|
Weighted off-balance sheet commitments
|
124,169
|
135,222
|
115,047
|
|
|
|
|
Qualifying central bank claims
|
(272,321)
|
(267,792)
|
(210,134)
|
|
|
|
|
Settlement netting
|
(21,386)
|
(51,874)
|
(16,944)
|
|
|
|
|
UK leverage exposure
|
1,129,973
|
1,232,105
|
1,137,904
|
1
|
Capital and leverage metrics as at 31 December 2021 have been
restated to reflect the impact of the Over-issuance of Securities.
See Basis of preparation on page 55 for further
details.
|
2
|
Capital and leverage measures are calculated applying the
transitional arrangements of the CRR as amended by CRR
II.
|
3
|
Fully loaded average UK leverage ratio was 4.7%, with £60.1bn of T1 capital and £1,280.2bn of leverage exposure. Fully
loaded UK leverage ratio was 5.3%, with £59.4bn of T1 capital and £1,129.3bn of leverage exposure. Fully
loaded UK leverage ratios are calculated without applying the
transitional arrangements of the CRR as amended by CRR
II.
|
The UK leverage ratio increased to 5.3% (December 2021: 5.2%)
primarily due to a £7.9bn decrease in the leverage exposure
and a £0.6bn increase in Tier 1 capital. The UK leverage
exposure decreased to £1,130.0bn (December 2021: £1,137.9bn) largely due to
the following movements:
●
|
£53.1bn decrease in PFE on derivatives largely driven by
increased netting eligibility due to the introduction of
SA-CCR
|
●
|
£42.0bn decrease in cash at central banks net of the
qualifying central bank claims exemption primarily due to the
matching of allowable liabilities rather than deposits introduced
under the UK leverage ratio framework and a decrease in Swiss Franc
cash assets
|
●
|
£33.0bn increase in loans and advances and other assets
(excluding cash and settlement balances which are subject to
regulatory exemptions) primarily due to increased
lending
|
●
|
£29.5bn increase in derivative financial instruments post
additional regulatory netting and adjustments for cash collateral
primarily driven by market volatility, increased activity in CIB
and the application of a 1.4 multiplier introduced under
SA-CCR
|
●
|
£18.4bn increase in SFTs primarily driven by increased reverse
repurchase activity in CIB
|
The average UK leverage ratio decreased to 4.8% (December 2021: 4.9%) due to a £51.9bn
increase in average leverage exposure partially offset by a
£1.1bn increase in average T1 capital. The average UK leverage
exposure increased to £1,281.0bn (December 2021:
£1,229.0bn) mainly driven by increased activity during the
year that was partially offset by the impact of regulatory changes
that came into effect from 1 January 2022 under the UK leverage
ratio framework.
MREL
|
|
|
|
|
|
|
|
MREL requirements including
buffers1,2,3,4
|
Total requirement (£m) based on
|
|
Requirement as a percentage of:
|
|
|
|
Restated1
|
|
|
|
Restated1
|
|
As at 31.12.22
|
As at 30.09.22
|
As at 31.12.21
|
|
As at 31.12.22
|
As at 30.09.22
|
As at 31.12.21
|
Requirement based on RWAs (minimum requirement)
|
97,387
|
99,596
|
77,302
|
|
28.9%
|
28.4%
|
24.6%
|
Requirement
based on UK leverage exposure4
|
91,213
|
97,243
|
93,975
|
|
8.1%
|
7.9%
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated1
|
Own funds and eligible
liabilities1,3
|
|
|
|
|
As at 31.12.22
|
As at 30.09.22
|
As at 31.12.21
|
|
|
|
|
|
£m
|
£m
|
£m
|
CET1 capital
|
|
|
|
|
46,878
|
48,574
|
47,327
|
AT1
capital instruments and related share premium accounts5
|
|
|
|
|
13,224
|
13,210
|
12,179
|
T2
capital instruments and related share premium accounts5
|
|
|
|
|
8,875
|
8,364
|
8,626
|
Eligible liabilities
|
|
|
|
|
43,851
|
41,744
|
39,889
|
Total Barclays PLC (the Parent company) own funds and eligible
liabilities
|
|
|
112,828
|
111,892
|
108,021
|
|
|
|
|
|
|
|
|
Total RWAs
|
|
|
|
|
336,518
|
350,774
|
314,136
|
Total UK leverage exposure4
|
|
|
|
|
1,129,973
|
1,232,105
|
1,356,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated1
|
Own funds and eligible liabilities
ratios as a percentage of:1
|
|
|
|
|
As at 31.12.22
|
As at 30.09.22
|
As at 31.12.21
|
Total RWAs
|
|
|
|
|
33.5%
|
31.9%
|
34.4%
|
Total
UK leverage exposure4
|
|
|
|
|
10.0%
|
9.1%
|
8.0%
|
|
|
|
|
|
|
|
|
As at 31 December 2022, Barclays PLC (the Parent company) held
£112.8bn of own funds and eligible liabilities equating to
33.5% of RWAs. This was in excess of the Group's MREL requirement,
excluding the PRA buffer, to hold £97.4bn of own funds and
eligible liabilities equating to 28.9% of RWAs. The Group remains
above its MREL regulatory requirement including the PRA
buffer.
1
|
Capital and leverage metrics as
at 31 December 2021 have been restated to reflect the impact of the
Over-issuance of Securities. See Basis of preparation on page
55 for further
details.
|
2
|
Minimum requirement excludes the confidential institution-specific
PRA buffer.
|
3
|
CET1, T1 and T2 capital, and RWAs are calculated applying the
transitional arrangements of the CRR as amended by CRR II including
IFRS 9 transitional arrangements.
|
4
|
As at 31 December 2021, MREL requirements were on a CRR leverage
basis which, from 1 January 2022, was no longer applicable for UK
banks.
|
5
|
Includes other AT1 capital regulatory adjustments and deductions of
£60m (December 2021: £80m), and other T2 credit risk
adjustments and deductions of £125m (December 2021:
£87m).
|
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 64
to 68), which have been
prepared in accordance with (a) UK-adopted international accounting
standards; and (b) International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board
(IASB), including interpretations issued by the IFRS
Interpretations Committee, 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 2022;
and
|
●
|
to the
best of their knowledge, the management information (set out on
pages 1 to 62) 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
2022.
|
Signed
on 14 February 2023 on behalf of the Board by
C.S. Venkatakrishnan
|
Anna Cross
|
Group Chief Executive
|
Group Finance Director
|
Barclays
PLC Board of Directors
Chairman
|
Executive Directors
|
Non-Executive Directors
|
Nigel Higgins
|
C.S. Venkatakrishnan
|
Mike Ashley
|
|
Anna Cross
|
Robert Berry
|
|
|
Tim Breedon CBE
|
|
|
Mohamed A. El-Erian
|
|
|
Dawn Fitzpatrick
|
|
|
Mary Francis CBE
|
|
|
Crawford Gillies
|
|
|
Brian Gilvary
|
|
|
Marc Moses
|
|
|
Diane Schueneman
|
|
|
Julia Wilson
|
Condensed Consolidated Financial Statements
Condensed consolidated income statement
|
|
|
|
Restated2
|
|
Notes1
|
Year ended 31.12.22
|
Year ended 31.12.21
|
|
|
£m
|
£m
|
Interest and similar income
|
|
19,096
|
11,240
|
Interest and similar expense
|
|
(8,524)
|
(3,167)
|
Net interest income
|
|
10,572
|
8,073
|
Fee and commission income
|
|
9,637
|
9,880
|
Fee and commission expense
|
|
(3,038)
|
(2,206)
|
Net fee and commission income
|
|
6,599
|
7,674
|
Net trading income
|
|
8,049
|
5,794
|
Net investment income
|
|
(434)
|
311
|
Other income
|
|
170
|
88
|
Total income
|
|
24,956
|
21,940
|
|
|
|
|
Staff costs
|
|
(9,252)
|
(8,511)
|
Infrastructure, administration and general expenses
|
|
(5,881)
|
(5,751)
|
Litigation and conduct
|
|
(1,597)
|
(397)
|
Operating expenses
|
|
(16,730)
|
(14,659)
|
|
|
|
|
Share of post-tax results of associates and joint
ventures
|
|
6
|
260
|
Profit before impairment
|
|
8,232
|
7,541
|
Credit impairment (charges)/releases
|
|
(1,220)
|
653
|
Profit before tax
|
|
7,012
|
8,194
|
Tax charge
|
2
|
(1,039)
|
(1,138)
|
Profit after tax
|
|
5,973
|
7,056
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
5,023
|
6,205
|
Other equity instrument holders
|
|
905
|
804
|
Total equity holders of the parent
|
|
5,928
|
7,009
|
Non-controlling interests
|
3
|
45
|
47
|
Profit after tax
|
|
5,973
|
7,056
|
|
|
|
|
Earnings per share
|
|
p
|
p
|
Basic earnings per ordinary share
|
4
|
30.8
|
36.5
|
Diluted earnings per ordinary share
|
4
|
29.8
|
35.6
|
1
|
For Notes to the Financial Statements see pages 69 to 76.
|
2
|
2021 financial metrics have been restated to reflect the impact of
the Over-issuance of Securities. See Restatement of financial
statements (Note 1) on page 69 for more information.
|
Condensed consolidated statement of comprehensive
income
|
|
|
|
Restated2
|
|
|
Year ended 31.12.22
|
Year ended 31.12.21
|
|
Notes1
|
£m
|
£m
|
Profit after tax
|
|
5,973
|
7,056
|
|
|
|
|
Other comprehensive income/(loss) that may be recycled to profit or
loss:3
|
|
|
Currency translation reserve
|
12
|
2,032
|
(131)
|
Fair value through other comprehensive income reserve
|
12
|
(1,421)
|
(429)
|
Cash flow hedging reserve
|
12
|
(6,382)
|
(2,428)
|
Other comprehensive loss that may be recycled to
profit
|
|
(5,771)
|
(2,988)
|
|
|
|
|
Other comprehensive income/(loss) not recycled to profit or
loss:3
|
|
|
Retirement benefit remeasurements
|
9
|
(281)
|
643
|
Fair value through other comprehensive income reserve
|
12
|
228
|
141
|
Own credit
|
12
|
1,463
|
(14)
|
Other comprehensive income not recycled to profit
|
|
1,410
|
770
|
|
|
|
|
Other comprehensive loss for the period
|
|
(4,361)
|
(2,218)
|
|
|
|
|
Total comprehensive income for the period
|
|
1,612
|
4,838
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
|
1,567
|
4,791
|
Non-controlling interests
|
|
45
|
47
|
Total comprehensive income for the period
|
|
1,612
|
4,838
|
1
|
For Notes to the Financial Statements see pages 69 to 76.
|
2
|
2021 financial metrics have been restated to reflect the impact of
the Over-issuance of Securities. See Restatement of financial
statements (Note 1) on page 69 for more information.
|
3
|
Reported net of tax.
|
Condensed consolidated balance sheet
|
|
|
|
Restated2
|
|
|
As at 31.12.22
|
As at 31.12.21
|
Assets
|
Notes1
|
£m
|
£m
|
Cash and balances at central banks
|
|
256,351
|
238,574
|
Cash collateral and settlement balances
|
|
112,597
|
92,542
|
Loans and advances at amortised cost
|
|
398,779
|
361,451
|
Reverse repurchase agreements and other similar secured
lending
|
|
776
|
3,227
|
Trading portfolio assets
|
|
133,813
|
147,035
|
Financial assets at fair value through the income
statement
|
|
213,568
|
191,972
|
Derivative financial instruments
|
|
302,380
|
262,572
|
Financial assets at fair value through other comprehensive
income
|
|
65,062
|
61,753
|
Investments in associates and joint ventures
|
|
922
|
999
|
Goodwill and intangible assets
|
|
8,239
|
8,061
|
Property, plant and equipment
|
|
3,616
|
3,555
|
Current tax assets
|
|
385
|
261
|
Deferred tax assets
|
2
|
6,991
|
4,619
|
Retirement benefit assets
|
9
|
4,743
|
3,879
|
Other assets
|
|
5,477
|
3,785
|
Total assets
|
|
1,513,699
|
1,384,285
|
|
|
|
|
Liabilities
|
|
|
|
Deposits at amortised cost
|
|
545,782
|
519,433
|
Cash collateral and settlement balances
|
|
96,927
|
79,371
|
Repurchase agreements and other similar secured
borrowing
|
|
27,052
|
28,352
|
Debt securities in issue
|
|
112,881
|
98,867
|
Subordinated Liabilities
|
7
|
11,423
|
12,759
|
Trading portfolio liabilities
|
|
72,924
|
54,169
|
Financial liabilities designated at fair value
|
|
271,637
|
250,960
|
Derivative financial instruments
|
|
289,620
|
256,883
|
Current tax liabilities
|
|
580
|
689
|
Deferred tax liabilities
|
2
|
16
|
37
|
Retirement benefit liabilities
|
9
|
264
|
311
|
Other liabilities
|
|
13,789
|
10,505
|
Provisions
|
8
|
1,544
|
1,908
|
Total liabilities
|
|
1,444,439
|
1,314,244
|
|
|
|
|
Equity
|
|
|
|
Called up share capital and share premium
|
10
|
4,373
|
4,536
|
Other reserves
|
12
|
(2,192)
|
1,770
|
Retained earnings
|
|
52,827
|
50,487
|
Shareholders' equity attributable to ordinary shareholders of the
parent
|
|
55,008
|
56,793
|
Other equity instruments
|
11
|
13,284
|
12,259
|
Total equity excluding non-controlling interests
|
|
68,292
|
69,052
|
Non-controlling interests
|
3
|
968
|
989
|
Total equity
|
|
69,260
|
70,041
|
|
|
|
|
Total liabilities and equity
|
|
1,513,699
|
1,384,285
|
1
|
For Notes to the Financial Statements see pages 69 to 76.
|
2
|
2021 financial metrics have
been restated to reflect the impact of the Over-issuance of
Securities. See Restatement of financial statements (Note 1) on
page 69 for more
information.
|
Condensed consolidated statement of changes in equity
|
|
Called up share capital and share premium
|
Other equity instruments
|
Other reserves
|
Restated1
Retained earnings
|
Restated1
Total
|
Non-controlling interests
|
Restated1
Total equity
|
Year ended 31.12.2022
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2022
|
4,536
|
12,259
|
1,770
|
50,487
|
69,052
|
989
|
70,041
|
Profit after tax
|
—
|
905
|
—
|
5,023
|
5,928
|
45
|
5,973
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
(281)
|
(281)
|
—
|
(281)
|
Other comprehensive profit after tax for the year
|
—
|
—
|
(4,080)
|
—
|
(4,080)
|
—
|
(4,080)
|
Total comprehensive income for the period
|
—
|
905
|
(4,080)
|
4,742
|
1,567
|
45
|
1,612
|
Employee share schemes and hedging thereof
|
70
|
—
|
—
|
476
|
546
|
—
|
546
|
Issue and redemption of other equity instruments
|
—
|
1,032
|
—
|
28
|
1,060
|
(20)
|
1,040
|
Other equity instruments coupon paid
|
—
|
(905)
|
—
|
—
|
(905)
|
—
|
(905)
|
Disposal of Absa holding
|
—
|
—
|
(84)
|
84
|
—
|
—
|
—
|
Vesting of employee share schemes
|
—
|
—
|
5
|
(485)
|
(480)
|
—
|
(480)
|
Dividends paid
|
—
|
—
|
—
|
(1,028)
|
(1,028)
|
(45)
|
(1,073)
|
Repurchase of shares
|
(233)
|
—
|
233
|
(1,508)
|
(1,508)
|
—
|
(1,508)
|
Own credit realisation
|
—
|
—
|
(36)
|
36
|
—
|
—
|
—
|
Other movements
|
—
|
(7)
|
—
|
(5)
|
(12)
|
(1)
|
(13)
|
Balance as at 31 December 2022
|
4,373
|
13,284
|
(2,192)
|
52,827
|
68,292
|
968
|
69,260
|
Year ended 31.12.2021
|
|
|
|
|
|
|
|
Balance as at 1 January 2021
|
4,637
|
11,172
|
4,461
|
45,527
|
65,797
|
1,085
|
66,882
|
Profit after tax
|
—
|
804
|
—
|
6,205
|
7,009
|
47
|
7,056
|
Retirement benefit remeasurements
|
—
|
—
|
—
|
643
|
643
|
—
|
643
|
Other comprehensive profit after tax for the year
|
—
|
—
|
(2,861)
|
—
|
(2,861)
|
—
|
(2,861)
|
Total comprehensive income for the period
|
—
|
804
|
(2,861)
|
6,848
|
4,791
|
47
|
4,838
|
Employee share schemes and hedging thereof
|
60
|
—
|
—
|
235
|
295
|
—
|
295
|
Issue and redemption of other equity instruments
|
—
|
1,078
|
—
|
6
|
1,084
|
(75)
|
1,009
|
Other equity instruments coupon paid
|
—
|
(804)
|
—
|
—
|
(804)
|
—
|
(804)
|
Vesting of employee share schemes
|
—
|
—
|
1
|
(410)
|
(409)
|
—
|
(409)
|
Dividends paid
|
—
|
—
|
—
|
(512)
|
(512)
|
(44)
|
(556)
|
Repurchase of shares
|
(161)
|
—
|
161
|
(1,200)
|
(1,200)
|
—
|
(1,200)
|
Other movements
|
—
|
9
|
8
|
(7)
|
10
|
(24)
|
(14)
|
Balance as at 31 December 2021
|
4,536
|
12,259
|
1,770
|
50,487
|
69,052
|
989
|
70,041
|
1
|
2021 financial metrics have
been restated to reflect the impact of the Over-issuance of
Securities. See Restatement of financial statements (Note 1) on
page 69 for more
information.
|
Condensed consolidated cash flow statement
|
|
|
Restated1
|
|
Year ended 31.12.22
|
Year ended 31.12.21
|
|
£m
|
£m
|
Profit before tax
|
7,012
|
8,194
|
Adjustment for non-cash items
|
(8,514)
|
5,023
|
Net increase in loans and advances at amortised cost
|
(24,949)
|
(10,728)
|
Net increase in deposits at amortised cost
|
26,349
|
38,397
|
Net increase in debt securities in issue
|
9,210
|
18,131
|
Changes in other operating assets and liabilities
|
21,811
|
(8,763)
|
Corporate income tax paid
|
(688)
|
(1,335)
|
Net cash from operating activities
|
30,231
|
48,919
|
Net cash from investing activities
|
(21,673)
|
4,270
|
Net cash from financing activities
|
696
|
107
|
Effect of exchange rates on cash and cash equivalents
|
10,330
|
(4,232)
|
Net increase in cash and cash equivalents
|
19,584
|
49,064
|
Cash and cash equivalents at beginning of the period
|
259,206
|
210,142
|
Cash and cash equivalents at end of the period
|
278,790
|
259,206
|
1
|
2021 financial metrics have been restated to reflect the impact of
the Over-issuance of Securities. See Restatement of financial
statements (Note 1) on page 69
for more information.
|