Pre-Close Briefing

Barclays PLC
03 December 2002

December 3rd, 2002

                                  BARCLAYS PLC

                               PRE-CLOSE BRIEFING

Barclays PLC ('Barclays') will be meeting analysts ahead of its close period for
the year ending 31st December 2002.


Key trends set out below, unless stated otherwise, relate to the nine months to
30th September 2002, and are compared to the corresponding nine months of 2001.
Barclays has, consistent with the Association of British Insurers' guidelines,
adopted an unsmoothed basis for the recognition of income from the closed life
assurance funds.  The 2001 and 2002 half-year results, restated to reflect this
change, are presented in Appendix A, and form the basis of comparative
statements in this announcement.  Balance sheet comparisons, unless stated
otherwise, relate to the corresponding position at 31st December 2001.



Matthew W Barrett, Group Chief Executive, commented:



'Although the trading environment remains difficult, our performance in the
first nine months remained resilient.



Within the financial services industry, the environment has been particularly
tough for investment banking, investment management and wealth management
businesses.  However, we believe that, relative to other major global players,
Barclays Capital, Barclays Global Investors and Barclays Private Clients have
delivered well.



Barclaycard and Business Banking have continued to perform strongly.



Although mitigated by aggressive cost management, revenue remained flat in
Personal Financial Services.  This reflected the short term impact of new
business acquisition in mortgages, our selective stance on credit risk, and some
self induced margin pressure for which we are being well rewarded by growth in
Openplan.



The overall transformation programme has continued at pace and, additionally,
synergies from the Woolwich, Legal & General and Providian UK transactions
remain on track.



For the full year, profit before tax is currently expected to be within existing
market forecasts, although at the lower end of the range.'



Overall Performance



Operating profit in the nine months to 30th September 2002 was lower than the
corresponding period in 2001.  As in the first half of 2002, operating profit
was adversely affected by the impact of stock markets on income from the closed
life assurance funds and by provisions.



Operating income was modestly higher than in the corresponding period in 2001
reflecting the continued strength of net interest income and fees and
commissions, partly offset by tougher conditions for market related activities.



Operating expenses were managed tightly to mitigate the impact of the weaker
economic environment, such that the rate of cost growth for the nine months to
30th September 2002 was lower than in the first half of 2002.



Provisions during the period were broadly consistent with risk tendency reported
at 30th June 2002 for all ongoing businesses except Barclays Capital.  Barclays
Capital net revenue (income minus provisions), a key metric for investment
banking performance, was flat in the nine months to 30th September 2002 relative
to the corresponding period in 2001.



Group balance sheet, at 30th September 2002, included total loans and advances
(excluding trading balances) of £174 billion, up 10%.  Customer liabilities
(excluding trading balances) were £199 billion, up 7%.  Weighted risk assets
were £168 billion, up 6%, and external assets were £398 billion, up12%.



Income



Operating income was modestly higher than in the corresponding period in 2001.
Net interest income and fees and commissions continued to grow, but the rate of
overall income growth moderated in the third quarter due to weaker dealing
profits, and the impact of the stock market on income from the closed life
assurance funds.



Net interest income maintained steady growth, slowing only marginally in the
third quarter.



In Personal Financial Services, net interest income was lower than in the
corresponding period in 2001.  Mortgage business continued to be strong, with a
10.6% market share of net new lending in the first nine months.  New business
volumes in mortgages continued to create a short-term adverse impact on profits
due to the upfront expensing of discounts and incentives, coupled with
additional mortgage origination and service costs.  Consumer lending maintained
solid growth, although at a rate below the market, reflecting continued focus on
improving the quality of the portfolio.  Average customer liabilities achieved
good growth consequent on the success of savings activities, particularly in
Openplan.



Barclays Private Clients net interest income was broadly steady over the period.
Increased loan volumes, primarily in Openplan mortgages, compensated for the
impact of lower interest rates.  Compared to the corresponding period in 2001,
net interest income at Barclaycard benefited from improved margins, increased
average extended credit balances and the acquisition of Providian UK (in April
2002).



Business Banking experienced good growth in net interest income over the period,
reflecting its targeted approach to lending.  Barclays Capital saw strong growth
in net interest income, driven by a good performance in its money markets
activities.



Net interest margins experienced some compression in Personal Financial
Services, the effects of which were largely compensated by volume gains in both
savings and loans.  Barclaycard margins rose as a consequence of active
management of the portfolio and lower funding rates.  Business Banking lending
margins were somewhat lower than in the corresponding period.



Net fees and commissions demonstrated good growth, although at a rate lower than
in the first half of 2002.



Personal Financial Services achieved solid growth in fees and commissions over
the period.  This included the benefit of fee based current accounts.  In
Barclays Private Clients, strong growth was attributable to the success of
Openplan and the Legal & General alliance.



In Barclaycard, the impact of revised account management fees and higher
merchant transaction volumes, coupled with the acquisition of the credit card
operations of Providian UK, fuelled good fees and commissions growth.



Business Banking achieved steady growth in fees and commissions, ahead of the
rate of growth in the first half of 2002.



Barclays Capital fees and commissions achieved strong growth in the period.



Although the rate of growth moderated relative to the first half of 2002, fees
and commissions in Barclays Global Investors were higher than in the equivalent
period in 2001.  This reflected the continued expansion in the advanced active
business as a percentage of total assets under management and the growth of
Exchange Traded Funds activities.  Assets under management at 30th September
2002 were £440 billion (31st December 2001: £530 billion), reflecting £42
billion of net new assets offset by £107 billion attributable to adverse market
movements and £25 billion to foreign exchange rates.



Dealing profits in the nine month period were affected by the more difficult
market conditions in the third quarter, and were significantly lower than in the
corresponding period in 2001.



Other operating income fell significantly, affected by the fall in the equity
markets which impacted income from the closed life assurance funds.  The FTSE
100 share index was 3722 at 30th September, 29% below its level at end 2001.



Costs



Costs were tightly managed in response to the tougher environment for income
generation. The rate of growth in the nine months to 30th September 2002 was
lower than that of the first half of 2002.



Business as usual cost growth was largely attributable to the costs associated
with the regulated sales force (previously offset against income from the closed
life assurance funds), the acquisition of Providian UK and the full year impact
of headcount investment in Barclays Capital during 2001.  Both revenue related
and strategic investment spend, the cost categories with greatest flexibility,
were lower during the period.



Costs in Personal Financial Services were flat.  Barclays Private Clients costs,
adjusted for the inclusion of the costs of the regulated sales force, were flat.



The growth in costs at Barclaycard was largely attributable to the acquisition
of Providian UK and increased marketing spend directed at customer recruitment.



Business Banking costs fell during the period.  Barclays Capital costs were
flat, demonstrating cost flexibility in tougher market conditions.  Barclays
Global Investors costs were flat.



Barclays remains ahead of plan to achieve the targeted cost savings of £1.15
billion for the four year period ending 2003.



Provisions for bad and doubtful debts



Provisions during the period were broadly consistent with risk tendency reported
at 30th June 2002 for all ongoing businesses except Barclays Capital.



Barclays Capital net revenue (income minus provisions) was flat relative to the
corresponding period in 2001, demonstrating that the growth in provisions was
compensated by good income performance.  Barclays Capital provisioning reflected
the continued turbulence in certain areas of the large corporate environment.



Additional modest provisions in respect of the non core South American Corporate
Banking portfolio were taken during the third quarter.



Other information



The Restructuring charge for 2002 is expected to be in line with 2001.



The Woolwich integration programme expects the targeted pre tax synergies of
£190m for 2002 to be achieved.



The tax charge for the full year is expected to be in line with the standard
rate of Corporation Tax.



The Caribbean transaction between Barclays and Canadian Imperial Bank of
Commerce, to form FirstCaribbean International Bank, was completed on 11th
October 2002. The details of the transaction are presented in Appendix B.



Results timetable:



2002 preliminary results announcement:      Thursday 13th February 2003
Dividend record date:                       Friday 28th February 2003
Ex dividend date:                           Wednesday 26th February 2003
2003 Annual General Meeting:                Thursday 24th April 2003
Dividend payment date:                      Monday 28th April 2003
2003 interim results pre-close briefing:    Tuesday 3rd June 2003
2003 interim results announcement:          Thursday 7th August 2003

For further information please contact:

Investor Relations                           Media Relations
James Johnson/Cathy Turner                   Chris Tucker/Leigh Bruce
[phone]/3638                    [phone]/2658



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 Securities Act of 1933, as amended, with respect to certain of the
Group's plans and its current goals and expectations relating to its future
financial condition and performance.  By their nature, forward looking
statements involve risk and uncertainty because they relate to future events and
circumstances, including UK domestic and global economic business conditions,
market related risks such as interest and exchange rates, the policies and
actions of governmental and regulatory authorities, changes in legislation and
the impact of competition a number of which are beyond the Group's control.  As
a result, the Group's actual future results may differ materially from the
plans, goals and expectations set forth in the forward-looking statements.  A
more detailed list of these factors is contained on page 89 of Barclays PLC
Annual Report 2001 that is available on the Internet at
www.investor.barclays.com/results/2001results/index.html.



                                   APPENDICES



                                   APPENDIX A



                            ACCOUNTING POLICY CHANGE



Treatment of income from the long-term assurance business: a change in
accounting policy has been made by which the Group will adopt the recent
guidelines of the Association of British Insurers on the calculation of income
from the long term assurance business. This guidance encourages companies
calculating income from the long term assurance business to use actual (ie
unsmoothed) fund values, rather than smoothing the impact of changes in these
values over time. This will result in a net reduction in shareholders' funds of
£37m as at 1st January 2002, comprising the cumulative impact of the prior year
reductions in shareholders' interests in the closed life assurance funds.



The change in accounting policy results in an increase in Other operating income
of £6m for the half-year ended 30th June 2002 (half-year to 31st December 2001:
increase of £4m; half-year to 30th June 2001: reduction of £49m).  These changes
are summarised in the following table:


                                                                         Half-year ended
                                                               30.06.02         31.12.01         30.06.01
                                                                     £m               £m               £m
Income from the long term assurance business on a                  (37)               78               94
smoothed basis
Income from the long term assurance business on an                 (31)               82               45
unsmoothed basis
Increase/(decrease)                                                   6                4             (49)



Pages 6 to 8 show the effect of the restatement of Other operating income, as
described above, on the Group profit and loss account, earnings per share and
economic profit for the last three half-year reporting periods.



At the business level, the impact of the change in accounting policy is within
Barclays Private Clients. The restated divisional results of Barclays Private
Clients for the last three half-year reporting periods are presented in Appendix
B.



RESTATED CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                                               Half-year ended
                                                      30.06.02      31.12.01      30.06.01
                                                      restated      restated      restated
                                                            £m            £m            £m
Interest receivable                                      6,037         6,518         6,940
Interest payable                                       (2,904)       (3,495)       (3,997)
Net interest income                                      3,133         3,023         2,943

Net fees and commissions receivable                      1,996         1,972         1,786
Dealing profits                                            513           441           570
Other operating income                                      92           238           169
Total non-interest income                                2,601         2,651         2,525
Operating income                                         5,734         5,674         5,468

Administration expenses - staff costs                  (1,878)       (1,921)       (1,793)
Administration expenses - other                        (1,099)       (1,215)       (1,088)
Depreciation and amortisation                            (286)         (273)         (264)
Operating expenses                                     (3,263)       (3,409)       (3,145)
Operating profit before provisions                       2,471         2,265         2,323
Provisions for bad and doubtful debts                    (713)         (651)         (498)
Provisions for contingent liabilities and                    1             1           (2)
commitments
Operating profit                                         1,759         1,615         1,823
Loss from joint ventures and associated                    (4)           (3)           (6)
undertakings
Exceptional items                                            -             -           (4)
Profit on ordinary activities before tax                 1,755         1,612         1,813
Tax on profit on ordinary activities                     (509)         (425)         (518)
Profit on ordinary activities after tax                  1,246         1,187         1,295
Minority and other interests (equity and                   (9)          (11)          (25)
non-equity)
Profit for the financial year attributable to the        1,237         1,176         1,270
members of Barclays PLC
Dividends                                                (419)         (727)         (383)
Profit retained for the financial year                     818           449           887


Earnings per ordinary share                              18.6p         17.7p         19.1p

Dividend per ordinary share                              6.35p       10.875p         5.75p



FURTHER ANALYSIS OF RESTATED PROFIT AND LOSS ACCOUNT



The results below, in contrast with the results on page 6 which are on a
statutory basis, are based on operating profit before charging for costs
directly associated with the integration of Woolwich plc, Woolwich fair value
adjustments, goodwill amortisation and the restructuring charge.


                                                              Half-year ended
                                                      30.06.02      31.12.01      30.06.01
                                                      restated      restated      restated
                                                            £m            £m            £m
Interest receivable                                      6,067         6,545         6,968
Interest payable                                       (2,907)       (3,507)       (4,005)
Net interest income                                      3,160         3,038         2,963

Net fees and commissions receivable                      1,996         1,972         1,786
Dealing profits                                            513           441           570
Other operating income                                      92           238           169
Total non-interest income                                2,601         2,651         2,525
Operating income                                         5,761         5,689         5,488

Administration expenses - staff costs                  (1,840)       (1,840)       (1,738)
Administration expenses - other                        (1,051)       (1,119)       (1,062)
Depreciation and amortisation                            (156)         (156)         (152)
Operating expenses                                     (3,047)       (3,115)       (2,952)
                                                         2,714         2,574         2,536
Provisions for bad and doubtful debts                    (713)         (651)         (498)
Provisions for contingent liabilities and                    1             1           (2)
commitments
Loss from joint ventures and associated                    (4)           (3)           (6)
undertakings
Operating profit                                         1,998         1,921         2,030
Restructuring charge                                      (55)         (108)          (63)
Woolwich integration costs                                (32)          (70)          (19)
Woolwich fair value adjustments                           (26)          (17)          (16)
Goodwill amortisation                                    (130)         (114)         (115)
Exceptional items                                            -             -           (4)
Profit on ordinary activities before tax                 1,755         1,612         1,813


Earnings per ordinary share before restructuring         21.7p         21.4p         21.9p
charge, integration costs, Woolwich fair value
adjustments, goodwill amortisation and exceptional
items



EARNINGS PER SHARE DATA



Earnings per ordinary share are based upon the results after deducting tax,
profit attributable to minority interests and dividends on staff shares.


                                                               Half-year ended
                                                      30.06.02      31.12.01      30.06.01
                                                      restated      restated      restated

Earnings in year                                       £1,237m       £1,176m       £1,270m

Earnings in year before restructuring, integration     £1,442m       £1,421m       £1,455m
costs, goodwill amortisation, fair value
adjustments and exceptional items

                                                                     

Weighted average of ordinary shares in issue            6,656m        6,655m        6,647m


Calculation of adjusted earnings per share               Pence         Pence         Pence

Basic earnings per ordinary share                         18.6          17.7          19.1
Restructuring charge                                       0.6           1.1           0.7
Integration costs                                          0.3           0.7           0.2
Goodwill amortisation                                      1.9           1.7           1.7
Woolwich fair value adjustments                            0.3           0.2           0.2
Adjusted earnings per share                               21.7          21.4          21.9




ECONOMIC PROFIT



Economic profit is the post-tax attributable profit generated by a business over
and above the cost of capital.


                                                                 Half-year ended
                                                      30.06.02       31.12.01       30.06.01
                                                      restated       restated       restated
                                                            £m             £m             £m
Profit after tax and minority interests (excluding       1,374          1,287          1,383
goodwill amortisation)
Cost of average shareholders' funds*                     (720)          (746)          (697)
Economic profit                                            654            541            686

Post tax cost of equity                                   9.5%          10.5%          10.5%




*      The cost includes a charge for purchased goodwill.  A post tax cost of
equity of 8.5% has been used for Woolwich plc goodwill.



                                   APPENDIX B



                BARCLAYS PRIVATE CLIENTS - CARIBBEAN OPERATIONS



On 11th October 2002, Barclays and Canadian Imperial Bank of Commerce ('CIBC')
completed the combination of their retail, corporate and offshore banking
operations in the Caribbean to create FirstCaribbean International Bank 
('FirstCaribbean').  Barclays will account for its resulting interest in
FirstCaribbean as an associated undertaking under UK GAAP from that date.  The
transaction is expected to result in an economic profit for Barclays in the
region of £200m (US$315m) in the current year (to be recognised in the statement
of total recognised gains and losses) consequent on the disposal of a share of
its Caribbean operations.  The acquisition of a share of CIBC West Indies
Holding Limited has generated goodwill in Barclays, currently expected to be of
the order of £130m (US$205m).  The gain is not reportable in US GAAP Other
comprehensive income in the current year.



The transaction has increased Barclays Tier 1 capital ratio and, going forward,
is expected to have a positive impact on earnings before goodwill and the
amortisation of fair value adjustments, primarily as a result of synergies.



In the nine months to 30th September 2002, the Caribbean operations contributed
£32m to the operating profit of Barclays Private Clients.



The table below gives the contribution of Barclays Private Clients (adjusted for
the accounting policy change to income from the long term assurance business
described on page 5) after excluding the Caribbean operations for the last three
half-year reporting periods.


                                                                Half-year ended
                                                      30.06.02      31.12.01      30.06.01
                                                            £m            £m            £m
Net Interest Income                                        367           351           355
Fees and commissions                                       308           297           238
Income from long-term assurance business                  (31)            82            45
Other operating income                                      10             1            15
Operating income                                           654           731           653
Operating costs                                          (442)         (434)         (396)
Provisions for bad and doubtful debts                     (16)          (12)          (12)
Operating profit                                           196           285           245
Restructuring costs                                        (5)          (25)           (9)
Integration costs                                          (1)           (9)             -
Profit before tax and exceptional items                    190           251           236




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