Results Announcement

Barclays PLC
20 February 2024
 

Barclays PLC

 

2023 Results Announcement

 

31 December 2023

 

Results Announcement

Page



Notes

1



Performance Highlights

2



Group Finance Director's Review

8



Results by Business




Barclays UK

10



Barclays International

13



Head Office

18



Quarterly Results Summary

19



Quarterly Results by Business

20



Performance Management




Margins and Balances

26



Remuneration

27



Risk Management




Risk Management and Principle Risks

29



Credit Risk

30



Market Risk

50



Treasury and Capital Risk

51



Condensed Consolidated Financial Statements

60



Financial Statement Notes

65



Appendix: Non-IFRS Performance Measures

69



Shareholder Information

78

 

BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839.

 

Notes

 

This document contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended).

 

The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the twelve months ended 31 December 2023 to the corresponding twelve months of 2022 and balance sheet analysis as at 31 December 2023 with comparatives relating to 31 December 2022. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively; and the abbreviations '€m' and '€bn' represent millions and thousands of millions of Euros respectively.

 

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.

 

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, which can be accessed at home.barclays/investor-relations

 

The information in this announcement, which was approved by the Board of Directors on 19 February 2024, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2023, which contain an unmodified audit report under Section 495 of the Companies Act 2006 (which does not make any statements under Section 498 of the Companies Act 2006) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

 

These results will be furnished on Form 6-K to the US Securities and Exchange Commission (SEC) as soon as practicable following its publication. Once furnished to the SEC, a copy of the Form 6-K will be available from the SEC's website at www.sec.gov

 

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal roadshows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

 

Non-IFRS performance measures

 

Barclays' management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 69 to 76 for definitions and calculations of non-IFRS performance measures included throughout this document, and reconciliations to the most directly comparable IFRS measures.

 

Forward-looking statements

 

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions (including policy on dividends and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), plans and objectives for future operations and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents, pandemics and similar events beyond the Group's control; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and requirements applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; reforms to benchmark interest rates and indices; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and global macroeconomic conditions, political stability and financial markets; political elections; developments in the UK's relationship with the European Union (EU); the risk of cyberattacks, information or security breaches, technology failures or other operational disruptions and any subsequent impacts on the Group's reputation, business or operations; the Group's ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group's control. As a result, the Group's actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group's forward-looking statements. In setting its targets and outlook for the period 2024-2026, Barclays has made certain assumptions about the macro-economic environment, including, without limitation, inflation, interest and unemployment rates, the different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Additional risks and factors which may impact the Group's future financial condition and performance are identified in Barclays PLC's filings with the SEC (including, without limitation, Barclays PLC's Annual Report on Form 20-F for the financial year ended 31 December 2023), which are available on the SEC's website at www.sec.gov

 

Subject to Barclays PLC's obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US) in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Performance Highlights

 

In 2023 Barclays delivered a return on tangible equity (RoTE) of 10.6% excluding Q423 structural cost actions1, with total capital distributions of £3.0bn2, equivalent to c.19.4p per share

 

C. S. Venkatakrishnan, Group Chief Executive, commented

"In 2023 Barclays delivered solid performance against a mixed macroeconomic backdrop, meeting its financial targets. Our strong 13.8% Common Equity Tier 1 (CET1) ratio enables us to deliver increased total capital distributions of £3.0bn to shareholders, up c.37% on 2022, which includes a further share buyback of £1.0bn. Our new three-year plan, which we will be announcing at the Investor Update today, is designed to further improve Barclays' operational and financial performance, driving higher returns, and predictable, attractive shareholder distributions"

 

Group FY23 RoTE of 10.6% and earnings per share (EPS) of 32.4p, excluding £0.9bn of Q423 structural cost actions

•Total capital distributions of £3.0bn announced in relation to 2023, up c.37% on 2022, reflecting a total dividend of 8.0p and total share buybacks of £1.75bn for 2023. This includes our intention to initiate a further share buyback of up to £1.0bn

Group net interest income (NII) of £12.7bn, up 20% year-on-year, with Barclays UK NII of £6.4bn, up 9% year-on-year, delivering a Barclays UK net interest margin (NIM) of 3.13%

Group cost: income ratio of 63% excluding Q423 structural cost actions

Group FY23 loan loss rate (LLR) of 46bps

CET1 ratio of 13.8% and tangible net asset value (TNAV) per share of 331p

 

2023 Key financial metrics:

 


Statutory


Excluding Q423 structural cost actions


Income

Profit before tax

Attributable profit/(loss)

LLR

TNAV per share

CET1 ratio

Total capital return


Cost: income ratio

RoTE

EPS

FY23

£25.4bn

£6.6bn

£4.3bn

46bps

331p

13.8%

£3.0bn


63%

10.6%

32.4p

Q423

£5.6bn

£0.1bn

£(0.1)bn

54bps


71%

5.1%

4.2p

 

2023 Performance highlights:

 

Group statutory RoTE was 9.0% (2022: 10.4%) with profit before tax of £6.6bn (2022: £7.0bn), including £0.9bn of structural cost actions in Q423, taking total structural cost actions for 2023 to £1.0bn

-Group income was £25.4bn, up 2% year-on-year

-Group total operating expenses were £16.9bn, an increase of 1% year-on-year

Excluding the impacts of Q423 structural cost actions and the Over-issuance of Securities in the prior year3:

-Group RoTE of 10.6% (2022: 11.6%) with profit before tax of £7.5bn (2022: £7.7bn)

-Group income of £25.4bn, up 3% year-on-year:

-Barclays UK income increased 5% to £7.6bn, driven by NII growth from higher rates, including higher structural hedge income

-Corporate and Investment Bank (CIB) income decreased 4% to £12.6bn, driven by lower client activity in both Global Markets and Investment Banking, partially offset by a strong performance in Corporate driven by Transaction Banking

-Consumer Cards and Payments (CC&P) income increased 18% to £5.3bn reflecting higher balances in US cards and favourability from higher rates and client balance growth in Private Bank

-Group total operating expenses were £16.0bn, up 2% year-on-year. Cost: income ratio of 63% as the Group delivered positive cost: income jaws of 1%

 

1

The impact of the Q423 structural cost actions was £0.9bn. At Q323 Results the Group highlighted it was evaluating actions to reduce structural costs to help drive future returns. Given the materiality of these actions in Q423, certain 2023 performance measures included in this document exclude the impact of Q423 structural cost actions. Page 6 includes a reconciliation of FY23 financial results excluding the impact of Q423 structural cost actions. Total 2023 structural cost actions were £1.0bn (Q323 YTD: £0.1bn).

2

Includes total dividends and share buybacks announced in relation to 2023. Total dividend for 2023 of 8.0p per share comprises the 2.7p 2023 half-year dividend and the 5.3p full-year dividend for 2023. Total share buybacks announced in relation to 2023 include the £750m buyback announced at H123 and a further share buyback of up to £1.0bn announced today.

3

Excluding £0.3bn income gain and £1.0bn litigation and conduct charge in 2022 from the Over-issuance of Securities under Barclays Bank PLC's US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019. Page 6 includes a reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year

 

2023 Performance highlights (continued):

 

Credit impairment charges were £1.9bn (2022: £1.2bn) with an LLR of 46bps (2022: 30bps):

-Barclays UK credit impairment charges were £0.3bn (2022: £0.3bn) with an LLR of 14bps (2022: 13bps), consistent with low delinquencies in UK cards and a high quality mortgage lending portfolio

-CC&P credit impairment charges increased to £1.5bn (2022: £0.8bn) with an LLR of 354bps (2022: 175bps), driven by higher delinquencies in US cards, which was anticipated and led to higher coverage ratios

CET1 ratio of 13.8% (2022: 13.9%), with risk weighted assets (RWAs) of £342.7bn (December 2022: £336.5bn) and TNAV per share of 331p (December 2022: 295p)

 

Q423 Performance highlights:

 

Excluding the impacts of Q423 structural cost actions1:

-Group RoTE was 5.1% (Q422: 8.9%) with profit before tax of £1.0bn (Q422: £1.3bn)

-Group income was £5.6bn down 3% year-on-year:

-Barclays UK income was 9% lower, with NII broadly stable and net fees, commissions and other income down 41% reflecting one-off items and the transfer of Wealth Management & Investments (WM&I) to CC&P during Q223

-CC&P was 6% higher, driven by balance growth in US cards and the transfer of WM&I, partially offset by lower Payments income

-CIB income was 7% lower, reflecting decline in Global Markets against a record Q4222

-Group total operating expenses were £4.0bn, broadly stable year-on-year

Credit impairment charges were £0.6bn (Q422: £0.5bn), with an LLR of 54bps (Q422: 49bps)

 

Impact of £0.9bn structural cost actions in Q423

 

To help drive future returns, Barclays has taken £0.9bn of structural cost actions in Q423 which are expected to result in gross cost savings of c.£0.5bn in 2024, with an expected payback period3 of less than 2 years

•Structural cost actions include initiatives across people, property and infrastructure, with the allocation by business and type as follows:

-£0.2bn in Barclays UK, £0.2bn in CIB, £0.1bn in CC&P and £0.5bn in Head Office

-£0.3bn related to People, £0.2bn related to Property and £0.4bn related to Infrastructure

 

1

Q423 structural cost actions of £0.9bn.

2

Period covering 2014-2023. Pre 2014 data was not restated following re-segmentation in 2016.

3

Payback period is the length of time to recoup the cost from the structural cost actions.

 

New Operating Divisions

 

Subsequent to FY23 reporting, Barclays will be managed and reported via five focused operating divisions:

-Barclays UK

-Barclays UK Corporate Bank

-Barclays Private Bank and Wealth Management

-Barclays Investment Bank

-Barclays US Consumer Bank

Barclays segmental reporting will reflect these five operating divisions, in addition to Head Office, from Q124. Further detail is provided in the 20 February 2024 Investor Update

This resegmentation will provide an enhanced and more granular disclosure of the performance of each of these operating divisions, alongside more accountability from an operational and management standpoint

Barclays 2021, 2022 and 2023 segmental performance, including Head Office, has been re-presented to reflect these new operating divisions. A resegmentation document may be accessed via the Barclays website at: home.barclays/investor-relations

 

Revised Group Financial Targets and Outlook:

 

Returns: targeting RoTE of greater than 10% in 2024 and c.10.5% excluding inorganic activity, with a greater than 12% target in 2026

Capital returns: plan to return at least £10bn of capital to shareholders between 2024 and 2026, through dividends and share buybacks, with a continued preference for buybacks. Plan to keep total dividend stable at 2023 level in absolute terms, with progressive dividend per share growth driven through share count reduction as a result of increased share buybacks. Dividends will continue to be paid semi-annually. This multiyear plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14%

Income: targeting Barclays Group NII excluding Barclays Investment Bank and Head Office of c.£10.7bn, of which Barclays UK NII of c.£6.1bn, in 20241. Targeting Group total income of c.£30bn in 2026

Costs: targeting Group cost: income ratio of c.63% in 2024. Targeting total Group operating expenses of c.£17.0bn and a Group cost: income ratio of high 50s in percentage terms in 2026. This includes c.£1bn of gross efficiency savings in 2024 and total gross efficiency savings of c.£2bn by 2026

Impairment: continue to expect an LLR of 50-60bps through the cycle

Capital: expect to continue to operate within the CET1 ratio target range of 13-14%

-Targeting Barclays Investment Bank RWAs of c.50% of Group RWAs in 2026

-Impact of regulatory change on RWAs in line with prior guidance, expected to be at lower end of 5-10% of Group RWAs. This includes c.£16bn RWAs expected in H224 due to Barclays US Consumer Bank moving to Internal Ratings-Based (IRB) models

 

1

This excludes the impact of Tesco Bank acquisition, which is expected to generate annualised NII of c.£400m in the first year post-completion. See Other Matters on page 9 for further details of the acquisition.

 

Barclays Group results

 

Year ended


Three months ended


31.12.23

31.12.22



31.12.23

31.12.22



£m

£m

% Change


£m

£m

% Change

Barclays UK

7,587

7,259

5


1,792

1,970

(9)

Corporate and Investment Bank

12,610

13,368

(6)


2,390

2,576

(7)

Consumer, Cards and Payments

5,308

4,499

18


1,364

1,286

6

Barclays International

17,918

17,867

-


3,754

3,862

(3)

Head Office

(127)

(170)

25


52

(31)


Total income

25,378

24,956

2


5,598

5,801

(3)

Operating costs

(16,714)

(14,957)

(12)


(4,735)

(3,748)

(26)

UK bank levy

(180)

(176)

(2)


(180)

(176)

(2)

Litigation and conduct

(37)

(1,597)

98


(5)

(79)

94

Total operating expenses

(16,931)

(16,730)

(1)


(4,920)

(4,003)

(23)

Other net (expenses)/income

(9)

6



(16)

10


Profit before impairment

8,438

8,232

3


662

1,808

(63)

Credit impairment charges

(1,881)

(1,220)

(54)


(552)

(498)

(11)

Profit before tax

6,557

7,012

(6)


110

1,310

(92)

Tax (charge)/credit

(1,234)

(1,039)

(19)


23

33

(30)

Profit after tax

5,323

5,973

(11)


133

1,343

(90)

Non-controlling interests

(64)

(45)

(42)


(25)

(22)

(14)

Other equity instrument holders

(985)

(905)

(9)


(219)

(285)

23

Attributable profit/(loss)

4,274

5,023

(15)


(111)

1,036

 









Performance measures








Return on average tangible shareholders' equity

9.0%

10.4%



(0.9)%

8.9%


Average tangible shareholders' equity (£bn)

47.4

48.3



48.9

46.7


Cost: income ratio

67%

67%



88%

69%


Loan loss rate (bps)

46

30



54

49


Basic earnings per share

27.7p

30.8p



(0.7)p

6.5p


Dividend per share

8.0p

7.25p






Share buyback announced (£m)

1,750

1,000






Total payout equivalent per share

c.19.4p

c.13.4p






Basic weighted average number of shares (m)

15,445

16,333

(5)


15,092

15,828

(5)

Period end number of shares (m)

15,155

15,871

(5)


15,155

15,871

(5)

 


As at 31.12.23

As at 30.09.23

As at 31.12.22

Balance sheet and capital management1

£bn

£bn

£bn

Loans and advances at amortised cost

399.5

405.4

398.8

Loans and advances at amortised cost impairment coverage ratio

1.4%

1.4%

1.4%

Total assets

1,477.5

1,591.7

1,513.7

Deposits at amortised cost

538.8

561.3

545.8

Tangible net asset value per share

331p

316p

295p

Common equity tier 1 ratio

13.8%

14.0%

13.9%

Common equity tier 1 capital

47.3

48.0

46.9

Risk weighted assets

342.7

341.9

336.5

UK leverage ratio

5.2%

5.0%

5.3%

UK leverage exposure

1,168.3

1,202.4

1,130.0





Funding and liquidity




Group liquidity pool (£bn)

298.1

335.0

318.0

Liquidity coverage ratio2

161%

159%

156%

Net stable funding ratio3

138%

138%

137%

Loan: deposit ratio

74%

72%

73%

 

1

Refer to pages 55 to 59 for further information on how capital, RWAs and leverage are calculated.

2

The liquidity coverage ratio (LCR) is now shown on an average basis, based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency.

3

Represents average of the last four spot quarter end positions.

 

Reconciliation of financial results excluding adjusting items1

 

Year ended

31.12.23




31.12.22






Statutory

Adjusting items

Excluding adjusting items


Statutory

Adjusting items

Excluding adjusting items




£m

£m

£m


£m

£m

£m


% Change

Barclays UK

7,587

-

7,587


7,259

-

7,259


5

Corporate and Investment Bank

12,610

-

12,610


13,368

292

13,076


(4)

Consumer, Cards and Payments

5,308

-

5,308


4,499

-

4,499


18

Barclays International

17,918

-

17,918


17,867

292

17,575


2

Head Office

(127)

-

(127)


(170)

-

(170)


25

Total income

25,378

-

25,378


24,956

292

24,664


3

Barclays UK

(4,393)

(168)

(4,225)


(4,260)

-

(4,260)


1

Corporate and Investment Bank

(8,335)

(188)

(8,147)


(7,630)

-

(7,630)


(7)

Consumer, Cards and Payments

(3,243)

(118)

(3,125)


(2,731)

-

(2,731)


(14)

Barclays International

(11,578)

(306)

(11,272)


(10,361)

-

(10,361)


(9)

Head Office

(743)

(453)

(290)


(336)

-

(336)


14

Total operating costs

(16,714)

(927)

(15,787)


(14,957)

-

(14,957)


(6)

UK bank levy

(180)

-

(180)


(176)

-

(176)


(2)

Litigation and conduct

(37)

-

(37)


(1,597)

(966)

(631)


94

Total operating expenses

(16,931)

(927)

(16,004)


(16,730)

(966)

(15,764)


(2)

Other net (expenses)/income

(9)

-

(9)


6

-

6



Profit before impairment

8,438

(927)

9,365


8,232

(674)

8,906


5

Credit impairment charges

(1,881)

-

(1,881)


(1,220)

-

(1,220)


(54)

Profit before tax

6,557

(927)

7,484


7,012

(674)

7,686


(3)

Attributable profit

4,274

(739)

5,013


5,023

(552)

5,575


(10)











Average tangible shareholders' equity (£bn)

47.4


47.4


48.3


48.3



Return on average tangible shareholders' equity

9.0%


10.6%


10.4%


11.6%



Cost: income ratio

67%


63%


67%


64%



 

1

Adjusting items: Q423 structural cost actions in 2023 and impact of the Over-issuance of Securities in 2022.

 

Reconciliation of financial results excluding adjusting items1

 

Three months ended

31.12.23


31.12.22




Statutory

Adjusting items

Excluding adjusting items


Statutory

Adjusting items

Excluding adjusting items




£m

£m

£m


£m

£m

£m


% Change

Barclays UK

1,792

-

1,792


1,970

-

1,970


(9)

Corporate and Investment Bank

2,390

-

2,390


2,576

-

2,576


(7)

Consumer, Cards and Payments

1,364

-

1,364


1,286

-

1,286


6

Barclays International

3,754

-

3,754


3,862

-

3,862


(3)

Head Office

52

-

52


(31)

-

(31)


 

Total income

5,598

-

5,598


5,801

-

5,801


(3)

Barclays UK

(1,153)

(168)

(985)


(1,108)

-

(1,108)


11

Corporate and Investment Bank

(2,134)

(188)

(1,946)


(1,796)

-

(1,796)


(8)

Consumer, Cards and Payments

(925)

(118)

(807)


(747)

-

(747)


(8)

Barclays International

(3,059)

(306)

(2,753)


(2,543)

-

(2,543)


(8)

Head Office

(523)

(453)

(70)


(97)

-

(97)


28

Total operating costs

(4,735)

(927)

(3,808)


(3,748)

-

(3,748)


(2)

UK bank levy

(180)

-

(180)


(176)

-

(176)


(2)

Litigation and conduct

(5)

-

(5)


(79)

-

(79)


94

Total operating expenses

(4,920)

(927)

(3,993)


(4,003)

-

(4,003)


-

Other net (expenses)/income

(16)

-

(16)


10

-

10



Profit before impairment

662

(927)

1,589


1,808

-

1,808


(12)

Credit impairment charges

(552)

-

(552)


(498)

-

(498)


(11)

Profit before tax

110

(927)

1,037


1,310

-

1,310


(21)

Attributable (loss)/profit

(111)

(739)

628


1,036

-

1,036


(39)











Average tangible shareholders' equity (£bn)

48.9


48.9


46.7


46.7



Return on average tangible shareholders' equity

(0.9)%


5.1%


8.9%


8.9%



Cost: income ratio

88%


71%


69%


69%



 

1

Adjusting items: Q423 structural cost actions in 2023 and impact of the Over-issuance of Securities in 2022

 

Group Finance Director's Review

 

2023 Group performance

 

Barclays delivered a profit before tax of £6,557m (2022: £7,012m), RoTE of 9.0% (2022: 10.4%) and EPS of 27.7p (2022: 30.8p)

Group income increased 2% to £25,378m primarily driven by the net benefit from the higher interest rate environment, including continued structural hedge income, and higher balances in US cards, partially offset by the non-repeat of the prior year income from hedging arrangements related to the Over-issuance of Securities and lower income in Global Markets and Investment Banking

Group total operating expenses increased to £16,931m (2022: £16,730m)

-Group operating expenses excluding litigation and conduct charges increased to £16,894m (2022: £15,133m) driven by:

-£927m of structural cost actions in Q423 supporting the Group's structural transformation and updated strategic priorities, bringing total structural cost actions for FY23 to £1,046m (2022: £151m)

-the impact of business growth and the Kensington Mortgage Company (KMC) acquisition in Barclays UK, as well as investments in resilience and controls

-the impact of inflation on the Group was more than offset by efficiency savings

-Litigation and conduct charges decreased to £37m (2022: £1,597m). Prior year charges included £966m of costs related to the Over-issuance of Securities, £282m of customer remediation costs relating to legacy loan portfolios in CC&P and £165m related to the Devices Settlements1

Credit impairment charges were £1,881m (2022: £1,220m), driven by higher delinquencies in US cards, which was anticipated and led to higher coverage ratios. Total coverage ratio remains strong at 1.4% (December 2022: 1.4%)

The effective tax rate (ETR) was 18.8% (2022: 14.8%). The 2023 ETR includes tax relief on payments made under Additional Tier 1 (AT1) instruments and on holdings of inflation-linked government bonds

Attributable profit was £4,274m (2022: £5,023m)

Total assets decreased to £1,477.5bn (December 2022: £1,513.7bn) reflecting a decrease in derivatives driven by lower market volatility and a decrease in the forward interest rates, and a reduction in the liquidity pool primarily driven by lower customer deposits in Barclays UK reflecting broader market trends. This was partially offset by an increase in trading securities and client balances as we facilitate client demand in Global Markets

TNAV per share increased to 331p (December 2022: 295p) including: EPS of 27.7p, positive cash flow hedge reserve movements of 22p, and 8p from the reduction in share count following share buybacks of £1.25bn completed in 2023. This was partially offset by an 8p reduction from dividends paid during 2023 and net negative other reserve movements

 

Group capital and leverage

 

•The CET1 ratio decreased to 13.8% (December 2022: 13.9%) as RWAs increased by £6.2bn to £342.7bn partially offset by an increase in CET1 capital of £0.4bn to £47.3bn:

-c.125bps increase from 2023 attributable profit, including the c.25bps negative impact of structural cost actions, of which c.10bps are offset in other capital movements

-c.70bps decrease driven by returns to shareholders including the 8p per share total dividend and £1.25bn of share buybacks announced with FY22 and H123 results

-c.10bps decrease from other capital movements, including the impact of regulatory change on 1 January 2023 relating to IFRS 9 transitional relief, the impact of the KMC acquisition, and movements in other regulatory capital deductions

-c.50bps decrease as a result of a £13.2bn increase in RWAs excluding the impact of foreign exchange movements, primarily driven by higher CIB and CC&P RWAs

-An £8.2bn decrease in RWAs as a result of foreign exchange movements was offset by a £1.1bn decrease in CET1 capital due to a decrease in the currency translation reserve

•The UK leverage ratio decreased to 5.2% (December 2022: 5.3%) primarily due to a £38.3bn increase in leverage exposure to £1,168.3bn, largely driven by an increase in trading portfolio assets within Global Markets

 

1

Refers to the settlements with the SEC and Commodity Futures Trading Commission (CFTC) in connection with their investigations of the use of unauthorised devices for business communications.

 

Group funding and liquidity

 

•The liquidity metrics remain well above regulatory requirements, underpinned by well-diversified sources of funding, a stable global deposit franchise and a highly liquid balance sheet

•The liquidity pool was £298.1bn (December 2022: £318.0bn). The decrease in the liquidity pool was driven by a reduction in wholesale funding, a slight reduction in overall deposits, with a decrease in Barclays UK deposits being largely offset by growth in Corporate deposits, and changes in business funding consumption

•The average1 Liquidity Coverage Ratio (LCR) increased to 161% (December 2022: 156%), equivalent to a surplus of £117.7bn (December 2022: £114.4bn)

•Total deposits remained largely stable at £538.8bn (December 2022: £545.8bn)

•The average2 Net Stable Funding Ratio (NSFR) was 138% (December 2022: 137%), which represents a £167.1bn (December 2022: £155.6bn) surplus above the 100% regulatory requirement

Wholesale funding outstanding, excluding repurchase agreements, was £176.8bn (December 2022: £184.0bn)

The Group issued £14.1bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) during 2023. The Group has a strong MREL position with a ratio of 33.6%, which is in excess of the regulatory requirement of 30.1% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer

 

Other matters

 

KMC acquisition: on 1 March 2023, Barclays completed the acquisition of UK specialist mortgage lender KMC, including a portfolio of mortgages totalling £2.2bn with an RWA impact of £0.8bn

Combination of the Private Bank and Barclays UK Wealth business: on 1 May 2023, WM&I was transferred from Barclays UK to CC&P, creating a combined Private Bank and Wealth Management business. The combination seeks to improve customer and client experience and create business synergies:

-The business transferred includes c.£28bn of invested assets, generating annualised income of c.£0.2bn

Purchase of Tesco Bank: Barclays announced on 9 February 2024 that Barclays Bank UK PLC has entered into an agreement with Tesco Personal Finance plc (operating using the trading name "Tesco Bank") to acquire its retail banking business, which includes credit cards, unsecured personal loans, deposits and the operating infrastructure. Additionally, upon completion, Barclays Bank UK PLC will enter into a long-term, exclusive strategic partnership with Tesco Stores Limited for an initial period of 10 years to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand, as well as explore other opportunities to offer financial services to Tesco customers. The transaction involves the acquisition of approximately £8.3bn of unsecured lending balances, including approximately £4.2bn of gross credit card receivables and £4.1bn of gross unsecured personal loans, together with approximately £6.7bn in customer deposits. The acquisition is expected to reduce Barclays' CET1 ratio by c.30bps on completion, which is expected to occur in H224, subject to court sanction and regulatory approvals

Sale of German consumer finance business: Barclays is currently engaged in a process to sell its German consumer finance business (comprising credit cards, unsecured personal loans and deposits), currently included within CC&P, as part of our ambition to simplify Barclays and support our focus on growing our key businesses. Any sale is expected to complete in 2024 and would be expected to be accretive to Barclays' CET1 ratio

Barclays Payments business: going forward, Barclays will separate its issuing and merchant acquiring Payments businesses, moving the issuing business to the UK Corporate Bank and the merchant acquiring business to Head Office. Barclays has a UK market leading position in merchant acquiring, and continued investment into our propositions, particularly for Small and Medium Sized Enterprise (SME) clients, and leveraging greater scale are important. Barclays is considering various options to achieve this and has commenced a review of strategic partnership opportunities for the business. In connection with this, related goodwill and intangible assets of c.£0.3bn have been written down as structural cost actions, predominantly within Head Office

Disposal of Italian retail mortgages: Barclays is in discussions with respect to the disposal of its Italian retail mortgage book currently in Head Office. Should the disposal occur, it would be expected to generate a loss on sale but to be broadly neutral to Barclays' CET1 ratio as a result of a reduction in RWAs

US credit card model migration to IRB: Barclays expects to migrate US credit card models from standardised to IRB in H224. This is a result of the PRA objective requiring banks using IRB modelling to apply it to at least 85% of their credit risk RWAs. This is expected to result in an increase in RWAs of c.£16bn in H224. Outside of US cards, Barclays is not expecting any further material impact from model migrations of current portfolios and has a number of planned mitigating actions

FCA motor finance review: in January 2024, the UK Financial Conduct Authority (FCA) announced that it was appointing a skilled person to undertake a review of the historical use of discretionary commission arrangements and sales in the motor finance market across several firms. The FCA plans to set out next steps on this matter by the end of September 2024

 

Anna Cross, Group Finance Director

 

1

Represents average of the last 12 spot month end ratios.

2

Represents average of the last four spot quarter end ratios.

 

Results by Business

 

Barclays UK

Year ended


Three months ended


31.12.23

31.12.22



31.12.23

31.12.22


Income statement information

£m

£m

% Change


£m

£m

% Change

Net interest income

6,431

5,893

9


1,575

1,600

(2)

Net fee, commission and other income

1,156

1,366

(15)


217

370

(41)

Total income

7,587

7,259

5


1,792

1,970

(9)

Operating costs

(4,393)

(4,260)

(3)


(1,153)

(1,108)

(4)

UK bank levy

(30)

(26)

(15)


(30)

(26)

(15)

Litigation and conduct

8

(41)



(4)

(13)

69

Total operating expenses

(4,415)

(4,327)

(2)


(1,187)

(1,147)

(3)

Other net income

-

-



-

1


Profit before impairment

3,172

2,932

8


605

824

(27)

Credit impairment charges

(304)

(286)

(6)


(37)

(157)

76

Profit before tax

2,868

2,646

8


568

667

(15)

Attributable profit

1,962

1,877

5


382

474

(19)









Performance measures








Return on average allocated tangible equity

19.2%

18.7%



14.9%

18.7%


Average allocated tangible equity (£bn)

10.2

10.0



10.2

10.2


Cost: income ratio

58%

60%



66%

58%


Loan loss rate (bps)

14

13



7

27


Net interest margin

3.13%

2.86%



3.07%

3.10%










Key facts








UK mortgage balances (£bn)

160.9

162.2






Mortgage gross lending flow (£bn)

22.7

30.3






Average loan to value of mortgage portfolio1

54%

50%






Average loan to value of new mortgage lending1

63%

68%






Number of branches

306

481






Mobile banking active customers (m)

11.0

10.5






30 day arrears rate - Barclaycard Consumer UK

0.9%

0.9%














Balance sheet information

£bn

£bn






Loans and advances to customers at amortised cost

202.8

205.1






Total assets

293.1

313.2






Customer deposits at amortised cost

241.1

258.0






Loan: deposit ratio

92%

87%






Risk weighted assets

73.5

73.1






Period end allocated tangible equity

10.2

10.1






 

1

Average loan to value (LTV) of mortgages is balance weighted and reflects both residential and buy-to-let (BTL) mortgage portfolios within the Home Loans portfolio.

 

Analysis of Barclays UK

Year ended


Three months ended

31.12.23

31.12.22



31.12.23

31.12.22


Analysis of total income

£m

£m

% Change


£m

£m

% Change

Personal Banking

4,729

4,540

4


1,067

1,229

(13)

Barclaycard Consumer UK

964

1,093

(12)


242

269

(10)

Business Banking

1,894

1,626

16


483

472

2

Total income

7,587

7,259

5


1,792

1,970

(9)









Analysis of credit impairment charges








Personal Banking

(170)

(167)

(2)


35

(120)


Barclaycard Consumer UK

(162)

30



(73)

(12)


Business Banking

28

(149)



1

(25)


Total credit impairment charges

(304)

(286)

(6)


(37)

(157)

76

















Analysis of loans and advances to customers at amortised cost

£bn

£bn






Personal Banking

170.1

169.7






Barclaycard Consumer UK

9.7

9.2






Business Banking

23.0

26.2






Total loans and advances to customers at amortised cost

202.8

205.1














Analysis of customer deposits at amortised cost








Personal Banking

185.4

195.6






Barclaycard Consumer UK

-

-






Business Banking

55.7

62.4






Total customer deposits at amortised cost

241.1

258.0






 

Barclays UK delivered a RoTE of 19.2% (20.4% excluding Q423 structural cost actions) supported by the higher interest rate environment and the continued investment in our transformation into a next-generation, digitised consumer bank.

 

2023 compared to 2022

 

Income statement

 

Profit before tax increased 8% to £2,868m with a RoTE of 19.2% (2022: 18.7%)

Total income increased 5% to £7,587m. NII increased 9% to £6,431m with a NIM of 3.13% (2022: 2.86%), as higher interest rates and associated structural hedge benefit outweighed mortgage margin pressure and adverse deposit dynamics reflecting wider market trends. Net fee, commission and other income decreased 15% to £1,156m including the impact of the transfer of WM&I to CC&P

-Personal Banking income increased 4% to £4,729m, driven by higher interest rates, partially offset by mortgage margin compression and movements in deposit volumes and mix resulting from cost of living pressures and customers searching for yield

-Barclaycard Consumer UK income decreased 12% to £964m as higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management

-Business Banking income increased 16% to £1,894m driven by higher interest rates, partially offset by lower government scheme lending as repayments continue and lower deposit volumes

Total operating expenses increased 2% to £4,415m, including £168m impact from Q423 structural cost actions. Excluding the impact of Q423 structural cost actions, operating expenses decreased 2%, driven by the transfer of WM&I to CC&P partially offset by the impact of inflation and the acquisition of KMC. Ongoing efficiency savings continue to be reinvested, including in our transformation programme to support sustainable improvement to the cost: income ratio over the longer term

Credit impairment charges increased to £304m (2022: £286m), consistent with low delinquencies in UK cards and a high quality mortgage lending portfolio. UK cards 30 and 90 day arrears remained low at 0.9% (Q422: 0.9%) and 0.2% (Q422: 0.2%) respectively. The UK cards total coverage ratio was 6.8% (December 2022: 7.6%)

 

Balance sheet

Loans and advances to customers at amortised cost decreased by 1% to £202.8bn (December 2022: £205.1bn), primarily reflecting continued repayment of government scheme lending in Business Banking, subdued mortgage lending amid lower market demand, partially offset by the acquisition of KMC

Customer deposits at amortised cost decreased 7% to £241.1bn (December 2022: £258.0bn). Primarily driven by reduced current account balances in Personal and Business Banking, reflecting broader market trends. The loan: deposit ratio increased to 92% (December 2022: 87%)

RWAs increased to £73.5bn (December 2022: £73.1bn), primarily due to the acquisition of KMC, broadly offset by reduction across lending portfolios

 

Barclays International

Year ended


Three months ended


31.12.23

31.12.22



31.12.23

31.12.22


Income statement information

£m

£m

% Change


£m

£m

% Change

Net interest income

6,197

4,927

26


1,458

1,465

-

Net trading income

5,878

7,709

(24)


720

1,169

(38)

Net fee, commission and other income

5,843

5,231

12


1,576

1,228

28

Total income

17,918

17,867

-


3,754

3,862

(3)

Operating costs

(11,578)

(10,361)

(12)


(3,059)

(2,543)

(20)

UK bank levy

(136)

(133)

(2)


(136)

(133)

(2)

Litigation and conduct

(47)

(1,503)

97


(7)

(67)

90

Total operating expenses

(11,761)

(11,997)

2


(3,202)

(2,743)

(17)

Other net (expenses)/income

(2)

28



(14)

5


Profit before impairment

6,155

5,898

4


538

1,124

(52)

Credit impairment charges

(1,548)

(933)

(66)


(511)

(328)

(56)

Profit before tax

4,607

4,965

(7)


27

796

(97)

Attributable profit/(loss)

3,025

3,844

(21)


(124)

625










Performance measures








Return on average allocated tangible equity

8.2%

10.2%



(1.3)%

6.4%


Average allocated tangible equity (£bn)

37.0

37.6



37.1

38.9


Cost: income ratio

66%

67%



85%

71%


Loan loss rate (bps)

87

54



114

75


Net interest margin

5.78%

5.02%



5.43%

5.71%










Balance sheet information

£bn

£bn






Loans and advances to customers at amortised cost

126.8

133.7






Loans and advances to banks at amortised cost

8.4

8.7






Debt securities at amortised cost

39.0

27.2






Loans and advances at amortised cost

174.2

169.6






Trading portfolio assets

174.6

133.8






Derivative financial instrument assets

255.2

301.7






Financial assets at fair value through the income statement

203.7

210.5






Cash collateral and settlement balances

103.6

107.7






Other assets

254.8

258.0






Total assets

1,166.1

1,181.3






Deposits at amortised cost

297.7

287.6






Derivative financial instrument liabilities

249.8

288.9






Loan: deposit ratio

58%

59%






Risk weighted assets

259.1

254.8






Period end allocated tangible equity

37.6

36.8






 

Analysis of Barclays International








Corporate and Investment Bank

Year ended


Three months ended


31.12.23

31.12.22



31.12.23

31.12.22


Income statement information

£m

£m

% Change


£m

£m

% Change

Net interest income

2,551

1,949

31


530

548

(3)

Net trading income

6,056

7,733

(22)


763

1,201

(36)

Net fee, commission and other income

4,003

3,686

9


1,097

827

33

Total income

12,610

13,368

(6)


2,390

2,576

(7)

Operating costs

(8,335)

(7,630)

(9)


(2,134)

(1,796)

(19)

UK bank levy

(129)

(126)

(2)


(129)

(126)

(2)

Litigation and conduct

6

(1,189)



(3)

(55)

95

Total operating expenses

(8,458)

(8,945)

5


(2,266)

(1,977)

(15)

Other net (expenses)/income

(3)

2


(6)

2


Profit before impairment

4,149

4,425

(6)


118

601

(80)

Credit impairment charges

(23)

(119)

81


(23)

(41)

44

Profit before tax

4,126

4,306

(4)


95

560

(83)

Attributable profit/(loss)

2,667

3,364

(21)


(61)

454










Performance measures








Return on average allocated tangible equity

8.4%

10.2%



(0.8)%

5.4%


Average allocated tangible equity (£bn)

31.7

32.8



31.6

33.7


Cost: income ratio

67%

67%



95%

77%


Loan loss rate (bps)

2

9



7

13










Balance sheet information

£bn

£bn






Loans and advances to customers at amortised cost

87.8

90.5






Loans and advances to banks at amortised cost

7.4

8.1






Debt securities at amortised cost

38.9

27.2






Loans and advances at amortised cost

134.1

125.8






Trading portfolio assets

174.5

133.7






Derivative financial instrument assets

255.1

301.6






Financial assets at fair value through the income statement

203.6

210.5






Cash collateral and settlement balances

102.9

106.9






Other assets

205.4

222.6






Total assets

1,075.6

1,101.1






Deposits at amortised cost

217.7

205.8






Derivative financial instrument liabilities

249.7

288.9






Risk weighted assets

216.8

215.9














Analysis of total income

£m

£m

% Change


£m

£m

% Change

FICC

4,845

5,695

(15)


724

976

(26)

Equities

2,373

3,149

(25)


431

440

(2)

Global Markets

7,218

8,844

(18)


1,155

1,416

(18)

Advisory

593

768

(23)


171

197

(13)

Equity capital markets

219

166

32


38

40

(5)

Debt capital markets

1,148

1,281

(10)


301

243

24

Investment Banking fees

1,960

2,215

(12)


510

480

6

Corporate lending

475

(231)



40

(128)


Transaction banking

2,957

2,540

16


685

808

(15)

Corporate

3,432

2,309

49


725

680

7

Total income

12,610

13,368

(6)


2,390

2,576

(7)

 

Analysis of Barclays International








Consumer, Cards and Payments

Year ended


Three months ended


31.12.23

31.12.22



31.12.23

31.12.22


Income statement information

£m

£m

% Change


£m

£m

% Change

Net interest income

3,646

2,979

22


928

918

1

Net fee, commission, trading and other income

1,662

1,520

9


436

368

18

Total income

5,308

4,499

18


1,364

1,286

6

Operating costs

(3,243)

(2,731)

(19)


(925)

(747)

(24)

UK bank levy

(7)

(7)

-


(7)

(7)

-

Litigation and conduct

(53)

(314)

83


(4)

(12)

67

Total operating expenses

(3,303)

(3,052)

(8)


(936)

(766)

(22)

Other net income/(expenses)

1

26

(96)


(8)

3


Profit before impairment

2,006

1,473

36


420

523

(20)

Credit impairment charges

(1,525)

(814)

(87)


(488)

(287)

(70)

Profit before tax

481

659

(27)


(68)

236

 

Attributable profit/(loss)

358

480

(25)


(63)

171










Performance measures








Return on average allocated tangible equity

6.7%

10.0%



(4.5)%

13.0%


Average allocated tangible equity (£bn)

5.3

4.8



5.5

5.2


Cost: income ratio

62%

68%



69%

60%


Loan loss rate (bps)

354

175



449

245










Key facts








US cards 30 day arrears rate

2.9%

2.2%






US cards customer FICO score distribution








<660

12%

11%






>660

88%

89%






Total number of payments clients

402k

395k






Value of payments processed (£bn)1

324

307














Balance sheet information

£bn

£bn






Loans and advances to customers at amortised cost

39.0

43.2






Total assets

90.5

80.2






Deposits at amortised cost

80.0

81.8






Risk weighted assets

42.3

38.9














Analysis of total income

£m

£m

% Change


£m

£m

% Change

International Cards and Consumer Bank

3,569

2,913

23


944

860

10

Private Bank

1,190

1,014

17


306

285

7

Payments

549

572

(4)


114

141

(19)

Total income

5,308

4,499

18


1,364

1,286

6

 

1

Includes £311bn (2022: £296bn) of merchant acquiring payments.

 

Barclays International delivered a RoTE of 8.2% (8.8% excluding Q423 structural cost actions of £306m) despite the reduced banking industry fee pool and lower client activity in Global Markets. Excluding Q423 structural cost actions, CIB delivered a RoTE of 8.9%, reflecting the benefits of income diversification and investment in sustainable growth, and CC&P delivered a RoTE of 8.6%, reflecting the impact of higher impairment charges, partially offset by balance growth and increased income from the continued investment in the business. Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US.

 

2023 compared to 2022

 

Income statement

 

Barclays International RoTE was 8.2% (2022: 10.2%) with a profit before tax of £4,607m (2022: £4,965m) including £306m (CIB: £188m, CC&P: £118m) of Q423 structural cost actions. CIB delivered a RoTE of 8.4% (2022: 10.2%) and CC&P 6.7% (2022: 10.0%)

-Total income was broadly flat at £17,918m, prior year included a £292m income impact from hedging arrangements related to the Over-issuance of securities

-Total operating expenses decreased 2% to £11,761m including £306m of structural cost actions in Q423. Prior year included £966m of litigation and conduct charges relating to the Over-issuance of securities

Excluding the impact of Q423 structural cost actions and the Over-issuance of Securities in the prior year1:

-Total income increased to £17,918m (2022: 17,575m)

-CIB income decreased 4% to £12,610m (2022: £13,076m)

-Global Markets income decreased 16% to £7,218m against a record prior year comparative2. FICC income decreased 15% to £4,845m, reflecting lower market volatility and client activity. Equities income decreased 17% to £2,373m, driven by a decline in derivatives income reflecting less volatile equity market conditions.

-Investment Banking fees decreased 12% to £1,960m due to the reduced fee pool across the industry3. Advisory decreased 23% and Debt capital markets decreased 10%, while Equity capital markets increased 32%

-Within Corporate, Transaction banking income increased 16% to £2,957m driven by improved deposit margins in the higher interest rate environment with stable deposit balances. Corporate lending income increased to £475m (2022: £231m loss) mainly driven by lower costs of hedging and lower fair value losses on leverage finance lending net of mark to market gains on related hedges

-CC&P income increased 18% to £5,308m

-International Cards and Consumer Bank income increased 23% to £3,569m reflecting higher cards balances and improved margins, including the Gap Inc. portfolio acquisition in Q222

-Private Bank income increased 17% to £1,190m, due to the transfer of WM&I from Barclays UK, client balance growth and improved deposits margin in the higher rate environment

-Payments income decreased 4% to £549m driven by margin compression

-Total operating expenses increased 4% to £11,455m

-CIB total operating expenses increased 4% to £8,270m, reflecting investment in talent and technology, and the impact of inflation, partially offset by the non-repeat of prior year litigation and conduct charges mainly relating to Device Settlements4 and efficiency savings

-CC&P total operating expenses increased 4% to £3,185m, driven by higher investment spend to support growth, mainly in marketing and partnership costs, the transfer of WM&I from Barclays UK, and the impact of inflation, partially offset by the non-repeat of prior year litigation and conduct charges mainly relating to customer remediation costs and efficiency savings

•Credit impairment charges were £1,548m (2022: £933m)

-CIB credit impairment charges were £23m (2022: £119m), driven by single name charges, partially offset by the benefit of credit protection

-CC&P credit impairment charges increased to £1,525m (2022: £814m), driven by higher delinquencies in US cards, which was anticipated and led to higher coverage ratios. 30 and 90 day arrears at 2.9% (Q422: 2.2%) and 1.5% (Q422: 1.2%) respectively. The US cards total coverage ratio was 10.2% (December 2022: 8.1%)

 

1

The Over-issuance of Securities in the prior year impacted Equities within Global markets, CIB and Barclays International only.

2

Period covering 2014-2023. Pre 2014 data was not restated following re-segmentation in 2016.

3

Data source: Dealogic for the period covering 1 January to 31 December 2023.

4

Refers to the settlements with the SEC and CFTC in connection with their investigations of the use of unauthorised devices for business communications.

 

Balance sheet

 

Loans and advances at amortised cost increased £4.6bn to £174.2bn driven by increased investment in debt securities in Treasury. In addition, there has been balance growth in CC&P which was offset by net loan repayments in CIB and transfer to held for sale of the German consumer finance business

Trading portfolio assets increased £40.8bn to £174.6bn driven by an increase in debt and equity securities as we facilitate client demand in Global Markets

Derivative assets and liabilities decreased £46.5bn and £39.1bn to £255.2bn and £249.8bn respectively reflecting lower market volatility and a decrease in the forward interest rates

Financial assets at fair value through the income statement decreased £6.8bn to £203.7bn driven by increased secured lending which was more than offset by trade optimisations

Deposits at amortised cost increased £10.1bn to £297.7bn driven by increased deposits in CIB

RWAs increased to £259.1bn (December 2022: £254.8bn) driven by higher CC&P RWAs

 

Head Office

Year ended


Three months ended


31.12.23

31.12.22



31.12.23

31.12.22


Income statement information

£m

£m

% Change


£m

£m

% Change

Net interest income

81

(248)



106

(324)


Net fee, commission and other income

(208)

78



(54)

293


Total income

(127)

(170)

25


52

(31)

 

Operating costs

(743)

(336)



(523)

(97)


UK bank levy

(14)

(17)

18


(14)

(17)

18

Litigation and conduct

2

(53)



6

1


Total operating expenses

(755)

(406)

(86)


(531)

(113)

 

Other net (expenses)/income

(7)

(22)

68


(2)

4


Loss before impairment

(889)

(598)

(49)


(481)

(140)

 

Credit impairment charges

(29)

(1)



(4)

(13)

69

Loss before tax

(918)

(599)

(53)


(485)

(153)

 

Attributable loss

(713)

(698)

(2)


(369)

(63)










Performance measures








Average allocated tangible equity (£bn)

0.2

0.7



1.6

(2.4)










Balance sheet information

£bn

£bn






Total assets

18.3

19.2






Risk weighted assets

10.2

8.6






Period end allocated tangible equity

2.3

(0.2)






 

 

2023 compared to 2022

 

Income statement

 

Loss before tax was £918m (2022: £599m) including £453m Q423 structural cost actions

Total income was an expense of £127m (2022: £170m) primarily reflecting hedge accounting and treasury items

Total operating expenses increased to £755m (2022: £406m) primarily driven by £453m of Q423 structural cost actions partially offset by lower litigation and conduct charges

-Head Office structural cost actions principally include the software intangibles impairment related to the merchant acquiring business (c.£260m), and the Canary Wharf office lease exit (c.£140m)

 

Balance sheet

 

RWAs were £10.2bn (December 2022: £8.6bn) primarily driven by methodology and policy updates, and increases in non-customer assets

 

Quarterly Results Summary

 

Barclays Group











Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Income statement information

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

3,139

3,247

3,270

3,053


2,741

3,068

2,422

2,341

Net fee, commission and other income

2,459

3,011

3,015

4,184


3,060

2,883

4,286

4,155

Total income

5,598

6,258

6,285

7,237


5,801

5,951

6,708

6,496

Operating costs

(4,735)

(3,949)

(3,919)

(4,111)


(3,748)

(3,939)

(3,682)

(3,588)

UK bank levy

(180)

-

-

-


(176)

-

-

-

Litigation and conduct

(5)

-

(33)

1


(79)

339

(1,334)

(523)

Total operating expenses

(4,920)

(3,949)

(3,952)

(4,110)


(4,003)

(3,600)

(5,016)

(4,111)

Other net (expenses)/income

(16)

9

3

(5)


10

(1)

7

(10)

Profit before impairment

662

2,318

2,336

3,122


1,808

2,350

1,699

2,375

Credit impairment charges

(552)

(433)

(372)

(524)


(498)

(381)

(200)

(141)

Profit before tax

110

1,885

1,964

2,598


1,310

1,969

1,499

2,234

Tax credit/(charges)

23

(343)

(353)

(561)


33

(249)

(209)

(614)

Profit after tax

133

1,542

1,611

2,037


1,343

1,720

1,290

1,620

Non-controlling interests

(25)

(9)

(22)

(8)


(22)

(2)

(20)

(1)

Other equity instrument holders

(219)

(259)

(261)

(246)


(285)

(206)

(199)

(215)

Attributable (loss)/profit

(111)

1,274

1,328

1,783


1,036

1,512

1,071

1,404











Performance measures










Return on average tangible shareholders' equity

(0.9)%

11.0%

11.4%

15.0%


8.9%

12.5%

8.7%

11.5%

Average tangible shareholders' equity (£bn)

48.9

46.5

46.7

47.6


46.7

48.6

49.0

48.8

Cost: income ratio

88%

63%

63%

57%


69%

60%

75%

63%

Loan loss rate (bps)

54

42

37

52


49

36

20

15

Basic earnings per share

(0.7)p

8.3p

8.6p

11.3p


6.5p

9.4p

6.4p

8.4p

Basic weighted average number of shares (m)

15,092

15,405

15,523

15,770


15,828

16,148

16,684

16,682

Period end number of shares (m)

15,155

15,239

15,556

15,701


15,871

15,888

16,531

16,762











Balance sheet and capital management1

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Loans and advances to customers at amortised cost

333.3

339.6

337.4

343.6


343.3

346.3

337.2

325.8

Loans and advances to banks at amortised cost

9.5

11.5

10.9

11.0


10.0

12.5

12.5

11.4

Debt securities at amortised cost

56.7

54.3

53.1

48.9


45.5

54.8

46.1

34.5

Loans and advances at amortised cost

399.5

405.4

401.4

403.5


398.8

413.7

395.8

371.7

Loans and advances at amortised cost impairment coverage ratio

1.4%

1.4%

1.4%

1.4%


1.4%

1.4%

1.4%

1.5%

Total assets

1,477.5

1,591.7

1,549.7

1,539.1


1,513.7

1,726.9

1,589.2

1,496.1

Deposits at amortised cost

538.8

561.3

554.7

555.7


545.8

574.4

568.7

546.5

Tangible net asset value per share

331p

316p

291p

301p


295p

286p

297p

294p

Common equity tier 1 ratio

13.8%

14.0%

13.8%

13.6%


13.9%

13.8%

13.6%

13.8%

Common equity tier 1 capital

47.3

48.0

46.6

46.0


46.9

48.6

46.7

45.3

Risk weighted assets

342.7

341.9

336.9

338.4


336.5

350.8

344.5

328.8

UK leverage ratio

5.2%

5.0%

5.1%

5.1%


5.3%

5.0%

5.1%

5.0%

UK leverage exposure

1,168.3

1,202.4

1,183.7

1,168.9


1,130.0

1,232.1

1,151.2

1,123.5











Funding and liquidity










Group liquidity pool (£bn)

298.1

335.0

330.7

333.0


318.0

325.8

342.5

319.8

Liquidity coverage ratio2

161%

159%

157%

157%


156%

156%

157%

159%

Net stable funding ratio3

138%

138%

139%

139%


137%




Loan: deposit ratio

74%

72%

72%

73%


73%

72%

70%

68%

 

1

Refer to pages 55 to 59 for further information on how capital, RWAs and leverage are calculated.

2

The Liquidity Coverage Ratio is based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency.

3

Represents average of the last four spot quarter end positions.

 

Barclays UK











Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Income statement information

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

1,575

1,578

1,660

1,618


1,600

1,561

1,393

1,339

Net fee, commission and other income

217

295

301

343


370

355

331

310

Total income

1,792

1,873

1,961

1,961


1,970

1,916

1,724

1,649

Operating costs

(1,153)

(1,058)

(1,090)

(1,092)


(1,108)

(1,069)

(1,085)

(998)

UK bank levy

(30)

-

-

-


(26)

-

-

-

Litigation and conduct

(4)

9

5

(2)


(13)

(3)

(16)

(9)

Total operating expenses

(1,187)

(1,049)

(1,085)

(1,094)


(1,147)

(1,072)

(1,101)

(1,007)

Other net income/(expenses)

-

-

-

-


1

(1)

-

-

Profit before impairment

605

824

876

867


824

843

623

642

Credit impairment charges

(37)

(59)

(95)

(113)


(157)

(81)

-

(48)

Profit before tax

568

765

781

754


667

762

623

594

Attributable profit

382

531

534

515


474

549

458

396











Balance sheet information

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Loans and advances to customers at amortised cost

202.8

204.9

206.8

208.2


205.1

205.1

205.9

207.3

Total assets

293.1

299.9

304.8

308.6


313.2

316.8

318.8

317.2

Customer deposits at amortised cost

241.1

243.2

249.8

254.3


258.0

261.0

261.5

260.3

Loan: deposit ratio

92%

92%

90%

90%


87%

86%

85%

85%

Risk weighted assets

73.5

73.2

73.0

74.6


73.1

73.2

72.2

72.7

Period end allocated tangible equity

10.2

10.1

10.1

10.3


10.1

10.1

9.9

10.1











Performance measures










Return on average allocated tangible equity

14.9%

21.0%

20.9%

20.0%


18.7%

22.1%

18.4%

15.6%

Average allocated tangible equity (£bn)

10.2

10.1

10.2

10.3


10.2

9.9

10.0

10.1

Cost: income ratio

66%

56%

55%

56%


58%

56%

64%

61%

Loan loss rate (bps)

7

10

17

20


27

14

-

9

Net interest margin

3.07%

3.04%

3.22%

3.18%


3.10%

3.01%

2.71%

2.62%

 

Analysis of Barclays UK

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Analysis of total income

£m

£m

£m

£m


£m

£m

£m

£m

Personal Banking

1,067

1,165

1,244

1,253


1,229

1,212

1,077

1,022

Barclaycard Consumer UK

242

238

237

247


269

283

265

276

Business Banking

483

470

480

461


472

421

382

351

Total income

1,792

1,873

1,961

1,961


1,970

1,916

1,724

1,649











Analysis of credit impairment charges










Personal Banking

35

(85)

(92)

(28)


(120)

(26)

(42)

21

Barclaycard Consumer UK

(73)

29

(35)

(83)


(12)

2

84

(44)

Business Banking

1

(3)

32

(2)


(25)

(57)

(42)

(25)

Total credit impairment charges

(37)

(59)

(95)

(113)


(157)

(81)

-

(48)











Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Personal Banking

170.1

172.3

173.3

173.6


169.7

168.7

167.1

166.5

Barclaycard Consumer UK

9.7

9.6

9.3

9.0


9.2

9.0

8.8

8.4

Business Banking

23.0

23.0

24.2

25.6


26.2

27.4

30.0

32.4

Total loans and advances to customers at amortised cost

202.8

204.9

206.8

208.2


205.1

205.1

205.9

207.3











Analysis of customer deposits at amortised cost










Personal Banking

185.4

186.1

191.1

194.3


195.6

197.3

197.0

196.6

Barclaycard Consumer UK

-

-

-

-


-

-

-

-

Business Banking

55.7

57.1

58.7

60.0


62.4

63.7

64.5

63.7

Total customer deposits at amortised cost

241.1

243.2

249.8

254.3


258.0

261.0

261.5

260.3

 

Barclays International











Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Income statement information

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

1,458

1,655

1,730

1,354


1,465

1,497

1,029

936

Net trading income

720

1,461

1,278

2,419


1,169

1,328

2,766

2,446

Net fee, commission and other income

1,576

1,326

1,432

1,509


1,228

1,240

1,321

1,442

Total income

3,754

4,442

4,440

5,282


3,862

4,065

5,116

4,824

Operating costs

(3,059)

(2,816)

(2,747)

(2,956)


(2,543)

(2,776)

(2,537)

(2,505)

UK bank levy

(136)

-

-

-


(133)

-

-

-

Litigation and conduct

(7)

(10)

(33)

3


(67)

396

(1,319)

(513)

Total operating expenses

(3,202)

(2,826)

(2,780)

(2,953)


(2,743)

(2,380)

(3,856)

(3,018)

Other net (expenses)/income

(14)

3

6

3


5

10

5

8

Profit before impairment

538

1,619

1,666

2,332


1,124

1,695

1,265

1,814

Credit impairment charges

(511)

(358)

(275)

(404)


(328)

(295)

(209)

(101)

Profit before tax

27

1,261

1,391

1,928


796

1,400

1,056

1,713

Attributable (loss)/profit

(124)

848

953

1,348


625

1,136

783

1,300











Balance sheet information

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Loans and advances to customers at amortised cost

126.8

130.8

126.6

131.0


133.7

137.0

126.7

113.9

Loans and advances to banks at amortised cost

8.4

10.3

9.7

9.8


8.7

11.0

11.3

10.2

Debt securities at amortised cost

39.0

36.4

35.2

30.8


27.2

36.2

29.3

20.7

Loans and advances at amortised cost

174.2

177.5

171.5

171.6


169.6

184.2

167.3

144.8

Trading portfolio assets

174.6

155.4

165.1

137.7


133.8

126.3

126.9

134.1

Derivative financial instrument assets

255.2

280.4

264.9

256.6


301.7

415.7

343.5

288.8

Financial assets at fair value through the income statement

203.7

238.3

232.2

245.0


210.5

244.7

209.3

203.8

Cash collateral and settlement balances

103.6

136.0

123.9

125.5


107.7

163.3

128.5

132.0

Other assets

254.8

285.5

268.8

275.0


258.0

257.2

275.1

255.5

Total assets

1,166.1

1,273.1

1,226.4

1,211.4


1,181.3

1,391.4

1,250.6

1,159.0

Deposits at amortised cost

297.7

318.2

305.0

301.6


287.6

313.2

307.4

286.1

Derivative financial instrument liabilities

249.8

268.3

254.5

246.7


288.9

394.2

321.2

277.2

Loan: deposit ratio

58%

56%

56%

57%


59%

59%

54%

51%

Risk weighted assets

259.1

259.2

254.6

255.1


254.8

269.3

263.8

245.1

Period end allocated tangible equity

37.6

37.1

36.7

36.8


36.8

38.8

38.0

35.6











Performance measures










Return on average allocated tangible equity

(1.3)%

9.2%

10.3%

14.5%


6.4%

11.6%

8.4%

14.8%

Average allocated tangible equity (£bn)

37.1

36.8

37.1

37.1


38.9

39.1

37.3

35.1

Cost: income ratio

85%

64%

63%

56%


71%

59%

75%

63%

Loan loss rate (bps)

114

78

63

94


75

62

49

28

Net interest margin

5.43%

5.98%

5.85%

5.87%


5.71%

5.58%

4.41%

4.15%

 

Analysis of Barclays International



















Corporate and Investment Bank

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Income statement information

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

530

700

856

465


548

606

410

385

Net trading income

763

1,503

1,353

2,437


1,201

1,344

2,738

2,450

Net fee, commission and other income

1,097

879

953

1,074


827

871

885

1,103

Total income

2,390

3,082

3,162

3,976


2,576

2,821

4,033

3,938

Operating costs

(2,134)

(2,015)

(1,984)

(2,202)


(1,796)

(2,043)

(1,870)

(1,921)

UK bank levy

(129)

-

-

-


(126)

-

-

-

Litigation and conduct

(3)

7

(1)

3


(55)

498

(1,314)

(318)

Total operating expenses

(2,266)

(2,008)

(1,985)

(2,199)


(1,977)

(1,545)

(3,184)

(2,239)

Other net (expenses)/income

(6)

2

1

-


2

-

-

-

Profit before impairment

118

1,076

1,178

1,777


601

1,276

849

1,699

Credit impairment (charges)/releases

(23)

20

13

(33)


(41)

(46)

(65)

33

Profit before tax

95

1,096

1,191

1,744


560

1,230

784

1,732

Attributable (loss)/profit

(61)

721

798

1,209


454

1,015

579

1,316











Balance sheet information

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Loans and advances to customers at amortised cost

87.8

87.9

84.8

89.2


90.5

93.6

86.5

79.5

Loans and advances to banks at amortised cost

7.4

9.6

9.0

9.2


8.1

10.2

10.0

9.4

Debt securities at amortised cost

38.9

36.3

35.1

30.7


27.2

36.2

29.3

20.7

Loans and advances at amortised cost

134.1

133.8

128.9

129.1


125.8

140.0

125.8

109.6

Trading portfolio assets

174.5

155.3

165.0

137.6


133.7

126.1

126.7

134.0

Derivative financial instruments assets

255.1

280.4

264.8

256.5


301.6

415.5

343.4

288.7

Financial assets at fair value through the income statement

203.6

238.2

232.1

244.9


210.5

244.6

209.2

203.8

Cash collateral and settlement balances

102.9

135.2

122.5

124.7


106.9

162.6

127.7

131.2

Other assets

205.4

237.2

224.6

230.3


222.6

220.6

237.2

222.5

Total assets

1,075.6

1,180.1

1,137.9

1,123.1


1,101.1

1,309.4

1,170.0

1,089.8

Deposits at amortised cost

217.7

236.9

225.5

221.0


205.8

229.5

229.5

214.7

Derivative financial instrument liabilities

249.7

268.3

254.5

246.7


288.9

394.2

321.2

277.1

Risk weighted assets

216.8

219.2

216.5

216.8


215.9

230.6

227.6

213.5











Performance measures










Return on average allocated tangible equity

(0.8)%

9.2%

10.0%

15.2%


5.4%

11.9%

7.1%

17.1%

Average allocated tangible equity (£bn)

31.6

31.5

31.8

31.8


33.7

34.0

32.7

30.8

Cost: income ratio

95%

65%

63%

55%


77%

55%

79%

57%

Loan loss rate (bps)

7

(6)

(4)

10


13

13

20

(12)

Net interest margin

3.00%

3.65%

3.98%

3.95%


3.73%

3.56%

2.88%

2.52%





















Analysis of total income

£m

£m

£m

£m


£m

£m

£m

£m

FICC

724

1,147

1,186

1,788


976

1,546

1,529

1,644

Equities

431

675

563

704


440

246

1,411

1,052

Global Markets

1,155

1,822

1,749

2,492


1,416

1,792

2,940

2,696

Advisory

171

80

130

212


197

150

236

185

Equity capital markets

38

62

69

50


40

42

37

47

Debt capital markets

301

233

273

341


243

341

281

416

Investment Banking fees

510

375

472

603


480

533

554

648

Corporate lending

40

172

168

95


(128)

(181)

(47)

125

Transaction banking

685

713

773

786


808

677

586

469

Corporate

725

885

941

881


680

496

539

594

Total income

2,390

3,082

3,162

3,976


2,576

2,821

4,033

3,938

 

Analysis of Barclays International



















Consumer, Cards and Payments

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Income statement information

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

928

955

874

889


918

891

619

551

Net fee, commission, trading and other income

436

405

404

417


368

353

464

335

Total income

1,364

1,360

1,278

1,306


1,286

1,244

1,083

886

Operating costs

(925)

(801)

(763)

(754)


(747)

(733)

(667)

(584)

UK bank levy

(7)

-

-

-


(7)

-

-

-

Litigation and conduct

(4)

(17)

(32)

-


(12)

(102)

(5)

(195)

Total operating expenses

(936)

(818)

(795)

(754)


(766)

(835)

(672)

(779)

Other net (expenses)/income

(8)

1

5

3


3

10

5

8

Profit before impairment

420

543

488

555


523

419

416

115

Credit impairment charges

(488)

(378)

(288)

(371)


(287)

(249)

(144)

(134)

(Loss)/profit before tax

(68)

165

200

184


236

170

272

(19)

Attributable (loss)/profit

(63)

127

155

139


171

121

204

(16)











Balance sheet information

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Loans and advances to customers at amortised cost

39.0

42.9

41.7

41.8


43.2

43.4

40.2

34.4

Total assets

90.5

93.0

88.5

88.3


80.2

82.0

80.6

69.2

Deposits at amortised cost

80.0

81.3

79.5

80.6


81.8

83.7

77.9

71.4

Risk weighted assets

42.3

39.9

38.1

38.2


38.9

38.7

36.2

31.6











Performance measures










Return on average allocated tangible equity

(4.5)%

9.6%

11.8%

10.5%


13.0%

9.5%

17.8%

(1.5)%

Average allocated tangible equity (£bn)

5.5

5.3

5.3

5.3


5.2

5.1

4.6

4.3

Cost: income ratio

69%

60%

62%

58%


60%

67%

62%

88%

Loan loss rate (bps)

449

321

255

332


245

211

132

145

Net interest margin

8.44%

8.88%

8.25%

8.42%


8.40%

8.41%

6.68%

6.56%





















Analysis of total income

£m

£m

£m

£m


£m

£m

£m

£m

International Cards and Consumer Bank

944

890

835

900


860

824

691

538

Private Bank

306

331

295

258


285

270

245

214

Payments

114

139

148

148


141

150

147

134

Total income

1,364

1,360

1,278

1,306


1,286

1,244

1,083

886











 

Head Office











Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

Income statement information

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

106

14

(120)

81


(324)

10

-

66

Net fee, commission and other income

(54)

(71)

4

(87)


293

(40)

(132)

(43)

Total income

52

(57)

(116)

(6)


(31)

(30)

(132)

23

Operating costs

(523)

(75)

(82)

(63)


(97)

(94)

(60)

(85)

UK bank levy

(14)

-

-

-


(17)

-

-

-

Litigation and conduct

6

1

(5)

-


1

(54)

1

(1)

Total operating expenses

(531)

(74)

(87)

(63)


(113)

(148)

(59)

(86)

Other net (expenses)/income

(2)

6

(3)

(8)


4

(10)

2

(18)

Loss before impairment

(481)

(125)

(206)

(77)


(140)

(188)

(189)

(81)

Credit impairment (charges)/releases

(4)

(16)

(2)

(7)


(13)

(5)

9

8

Loss before tax

(485)

(141)

(208)

(84)


(153)

(193)

(180)

(73)

Attributable loss

(369)

(105)

(159)

(80)


(63)

(173)

(170)

(292)











Balance sheet information

£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Total assets

18.3

18.7

18.5

19.1


19.2

18.7

19.8

19.9

Risk weighted assets

10.2

9.5

9.3

8.8


8.6

8.2

8.6

11.0

Period end allocated tangible equity

2.3

1.0

(1.5)

0.2


(0.2)

(3.5)

1.1

3.6











Performance measures










Average allocated tangible equity (£bn)

1.6

(0.4)

(0.6)

0.2


(2.4)

(0.4)

1.7

3.6

 

Performance Management

 

Margins and balances


Year ended 31.12.23

Year ended 31.12.22


Net interest income

Average customer assets

Net interest margin

Net interest income

Average customer assets

Net interest margin


£m

£m

%

£m

£m

%

Barclays UK

6,431

205,667

3.13

5,893

205,972

2.86

Corporate and Investment Bank

1,991

54,600

3.65

1,796

56,008

3.21

Consumer, Cards and Payments

3,646

42,910

8.50

2,979

39,193

7.60

Barclays International

5,637

97,510

5.78

4,775

95,201

5.02

Barclays Group

12,068

303,177

3.98

10,668

301,173

3.54

Other1

641



(96)



Total Barclays Group net interest income

12,709



10,572



 

1

Other comprises net interest income from Global Markets within Barclays International and Head Office including hedge accounting.

 

The Barclays Group NIM has increased 44bps from 3.54% in 2022 to 3.98% in 2023, driven by the higher interest rate environment and continued structural hedge income momentum across the Group as well as higher balances in CC&P including the Gap Inc. portfolio acquisition, partially offset by product dynamics in deposits and mortgages.

 

The Group's combined product and equity structural hedge notional amount at 31 December 2023 was £246bn (Dec 2022: £263bn), with an average duration of close to 2.5 years. Gross structural hedge contributions of £3,623m (Q422: £2,196m) and net structural hedge contributions of £(8,209)m (Q422: £(1,544)m) are included in Group net interest income. Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.

 

Quarterly analysis




Q423

Q323

Q223

Q123

Q422

Net interest income

£m

£m

£m

£m

£m

Barclays UK

1,575

1,578

1,660

1,618

1,600

Corporate and Investment Bank

409

491

540

551

556

Consumer, Cards and Payments

928

955

874

889

918

Barclays International

1,337

1,446

1,414

1,440

1,474

Barclays Group

2,912

3,024

3,074

3,058

3,074







Average customer assets

£m

£m

£m

£m

£m

Barclays UK

203,646

205,693

207,073

206,241

204,941

Corporate and Investment Bank

54,089

53,290

54,417

56,612

59,146

Consumer, Cards and Payments

43,623

42,678

42,503

42,840

43,319

Barclays International

97,712

95,968

96,920

99,452

102,465

Barclays Group

301,358

301,661

303,993

305,693

307,406







Net interest margin

%

%

%

%

%

Barclays UK

3.07

3.04

3.22

3.18

3.10

Corporate and Investment Bank

3.00

3.65

3.98

3.95

3.73

Consumer, Cards and Payments

8.44

8.88

8.25

8.42

8.40

Barclays International

5.43

5.98

5.85

5.87

5.71

Barclays Group

3.83

3.98

4.06

4.06

3.97

 

Remuneration

 

Deferred bonuses are payable only once an employee meets certain conditions, including a specified period of future service. This creates a timing difference between the communication of the bonus pool and the charges that are recognised in the income statement which are reconciled in the table below to show the charge for performance costs. Refer to the Remuneration Report on pages 191 to 229 of the Barclays PLC Annual Report 2023 for further detail on remuneration. The table below includes the other elements of compensation and staff costs.

 


Year ended 31.12.23

Year ended 31.12.22



£m

£m

% Change

Incentive awards granted:




Current year bonus

1,202

1,241

3

Deferred bonus

543

549

1

Total incentive awards granted

1,745

1,790

3





Reconciliation of incentive awards granted to income statement charge:




Less: deferred bonuses granted but not charged in current year

(384)

(388)

1

Add: current year charges for deferred bonuses from previous years

390

399

2

Other differences between incentive awards granted and income statement charge

(1)

35


Income statement charge for performance costs

1,750

1,836

5





Other income statement charges:




Salaries

5,120

4,732

(8)

Social security costs

755

714

(6)

Post-retirement benefits1

539

563

4

Other compensation costs

555

504

(10)

Total compensation costs2

8,719

8,349

(4)





Other resourcing costs




Outsourcing

601

607

1

Redundancy and restructuring3

452

(7)


Temporary staff costs

91

113

19

Other

154

190

19

Total other resourcing costs

1,298

903

(44)





Total staff costs

10,017

9,252

(8)





Group compensation costs as a % of total income

34.4

33.5


Group staff costs as a % of total income

39.5

37.1


 

One of the primary considerations for performance costs are Group and business level returns, alongside other financial and non-financial measures, including strategic delivery, risk and conduct, aligning colleague, shareholder and wider stakeholder interests.

 

1

Post-retirement benefits charge includes £371m (2022: £313m) in respect of defined contribution schemes and £168m (2022: £250m) in respect of defined benefit schemes.

2

£860m (2022: £604m) of Group compensation cost was capitalised as internally generated software and excluded from the Staff cost disclosed above.

3

Redundancy and restructuring cost included £340m relating to structural cost actions taken in Q4 2023.

 

Deferred bonuses have been awarded and are expected to be charged to the income statement in the years outlined in the table that follows:

 

Year in which income statement charge is expected to be taken for deferred bonuses awarded to date1

 


Actual


Expected1, 2


Year ended

Year ended


Year ended

2025 and


31.12.22

31.12.23


31.12.24

beyond


£m

£m


£m

£m

Deferred bonuses from 2020 and earlier bonus pools

185

53


-

-

Deferred bonuses from 2021 bonus pool

214

150


77

14

Deferred bonuses from 2022 bonus pool

161

187


132

82

Deferred bonuses from 2023 bonus pool

-

159


152

174

Income statement charge for deferred bonuses

560

549


361

270

 

1

The actual amount charged depends upon whether conditions have been met and may vary compared with the above expectation.

2

Does not include the impact of grants which will be made in 2024 and beyond.

 

Charging of deferred bonus profile1

 

Grant date

Expected payment date(s)2 and percentage of the deferred bonus paid

Year

Income statement charge % profile of 2023 onwards3,4

March 2024


2023

33%



2024

31%


March 2025 (33.3%)

2025

21%


March 2026 (33.3%)

2026

13%


March 2027 (33.3%)

2027

2%

 

1

Represents a typical vesting schedule for deferred awards. Certain awards may be subject to a 3, 4, 5 or 7 year deferral in line with regulatory requirements.

2

Share awards may be subject to an additional holding period.

3

The income statement charge is based on the period over which conditions are met.

4

Income statement charge profile % disclosed as a percentage of the award excluding lapse.

 

Risk Management

 

Risk management and principal risks

 

The roles and responsibilities of the business groups, Risk and Compliance in the management of risk in the Group are defined in the Enterprise Risk Management Framework. The purpose of the framework is to identify the principal risks of the Group, the process by which the Group sets its appetite for these risks in its business activities, and the consequent limits which it places on related risk taking.

 

The framework identifies nine principal risks: credit risk, market risk, treasury and capital risk, climate risk, operational risk, model risk, compliance risk, reputation risk and legal risk. Further detail on the Group's principal risks and material existing and emerging risks and how such risks are managed is available in the Barclays PLC Annual Report 2023, which can be accessed at home.barclays/annualreport.

 

The following section gives an overview of credit risk, market risk, and treasury and capital risk for the period.

 

Credit Risk

 

Loans and advances at amortised cost by geography

 

Total loans and advances at amortised cost in the credit risk performance section includes loans and advances at amortised cost to banks and loans and advances at amortised cost to customers.

 

The table below presents a product and geographical breakdown by stages of loans and advances at amortised cost. Also included are stage allocation of debt securities and off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio as at 31 December 2023.

 

Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to gross loans and advances to the extent allowance does not exceed the drawn exposure and any excess is reported on the liabilities side of the balance sheet as a provision. For corporate portfolios, impairment allowance on undrawn exposure is reported on the liability side of the balance sheet as a provision.

 


Gross exposure


Impairment allowance


Stage 1

Stage 2

Stage 3

Total


Stage 1

Stage 2

Stage 3

Total

As at 31.12.23

£m

£m

£m

£m


£m

£m

£m

£m

Retail mortgages

146,001

19,123

1,812

166,936


43

77

112

232

Retail credit cards

8,094

2,128

198

10,420


111

492

107

710

Retail other

6,832

1,252

264

8,348


56

117

144

317

Corporate loans1

54,257

8,673

1,692

64,622


191

214

346

751

Total UK

215,184

31,176

3,966

250,326


401

900

709

2,010

Retail mortgages

4,201

346

612

5,159


7

28

316

351

Retail credit cards

22,315

3,450

1,522

27,287


412

1,138

1,226

2,776

Retail other

1,637

91

229

1,957


3

1

32

36

Corporate loans

58,248

4,629

862

63,739


96

200

252

548

Total Rest of the World

86,401

8,516

3,225

98,142


518

1,367

1,826

3,711

Total loans and advances at amortised cost

301,585

39,692

7,191

348,468


919

2,267

2,535

5,721

Debt securities at amortised cost

52,869

3,907

-

56,776


11

16

-

27

Total loans and advances at amortised cost including debt securities

354,454

43,599

7,191

405,244


930

2,283

2,535

5,748

Off-balance sheet loan commitments and financial guarantee contracts2

374,063

24,208

1,037

399,308


173

287

44

504

Total3,4

728,517

67,807

8,228

804,552


1,103

2,570

2,579

6,252












Net exposure


Coverage ratio


Stage 1

Stage 2

Stage 3

Total


Stage 1

Stage 2

Stage 3

Total

As at 31.12.23

£m

£m

£m

£m


%

%

%

%

Retail mortgages

145,958

19,046

1,700

166,704


-

0.4

6.2

0.1

Retail credit cards

7,983

1,636

91

9,710


1.4

23.1

54.0

6.8

Retail other

6,776

1,135

120

8,031


0.8

9.3

54.5

3.8

Corporate loans1

54,066

8,459

1,346

63,871


0.4

2.5

20.4

1.2

Total UK

214,783

30,276

3,257

248,316


0.2

2.9

17.9

0.8

Retail mortgages

4,194

318

296

4,808


0.2

8.1

51.6

6.8

Retail credit cards

21,903

2,312

296

24,511


1.8

33.0

80.6

10.2

Retail other

1,634

90

197

1,921


0.2

1.1

14.0

1.8

Corporate loans

58,152

4,429

610

63,191


0.2

4.3

29.2

0.9

Total Rest of the World

85,883

7,149

1,399

94,431


0.6

16.1

56.6

3.8

Total loans and advances at amortised cost

300,666

37,425

4,656

342,747


0.3

5.7

35.3

1.6

Debt securities at amortised cost

52,858

3,891

-

56,749


-

0.4

-

-

Total loans and advances at amortised cost including debt securities

353,524

41,316

4,656

399,496


0.3

5.2

35.3

1.4

Off-balance sheet loan commitments and financial guarantee contracts2

373,890

23,921

993

398,804


-

1.2

4.2

0.1

Total3,4

727,414

65,237

5,649

798,300


0.2

3.8

31.3

0.8

 

1

Includes Business Banking, which has a gross exposure of £15.2bn and an impairment allowance of £431m. This comprises £99m impairment allowance on £9.8bn Stage 1 exposure, £81m on £4.1bn Stage 2 exposure and £251m on £1.3bn Stage 3 exposure. Excluding this, total coverage for corporate loans in UK is 0.6%.

2

Excludes loan commitments and financial guarantees of £16.5bn carried at fair value and includes exposures relating to financial assets classified as assets held for sale.

3

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £183.6bn and impairment allowance of £151m. This comprises £16m impairment allowance on £182.8bn Stage 1 exposure, £2m on £0.6bn Stage 2 exposure and £133m on £140m Stage 3 exposure.

4

The annualised loan loss rate is 46bps after applying the total impairment charge of £1,881m.

 

Assets held for sale

 

During 2023, gross loans and advances and related impairment allowances for the German consumer finance business portfolio were reclassified from loans and advances to customers to assets held for sale in the balance sheet. Disclosures relating to assets held for sale are provided in the credit risk tables, primarily where the disclosure is relevant to the measurement of these financial assets.

 

For further details on assets held for sale, see Note 40 to the financial statements in Barclays PLC Annual Report 2023.

 

Loans and advances to customers classified as assets held for sale


Stage 1


Stage 2


Stage 3


Total


Gross

ECL

Coverage


Gross

ECL

Coverage


Gross

ECL

Coverage


Gross

ECL

Coverage

As at 31.12.231

£m

£m

%


£m

£m

%


£m

£m

%


£m

£m

%

Retail credit cards

1,621

15

0.9


445

41

9.2


92

68

73.9


2,158

124

5.7

Retail other

1,561

20

1.3


288

32

11.1


84

60

71.4


1,933

112

5.8

Total Rest of the World

3,182

35

1.1


733

73

10.0


176

128

72.7


4,091

236

5.8

 

1

In 2022, total gross exposure of £4.3bn and impairment allowance of £296m was included in loans and advances at amortised cost which has now been classified as assets held for sale. This comprises £37m ECL on £3.1bn Stage 1 exposure, £141m on £1.0bn Stage 2 exposure and £118m on £153m Stage 3 exposure

 


Gross exposure


Impairment allowance


Stage 1

Stage 2

Stage 3

Total


Stage 1

Stage 2

Stage 3

Total

As at 31.12.22

£m

£m

£m

£m


£m

£m

£m

£m

Retail mortgages

145,821

17,735

1,481

165,037


21

49

58

128

Retail credit cards

7,119

2,569

251

9,939


127

493

137

757

Retail other

8,202

1,197

293

9,692


72

138

145

355

Corporate loans1

55,187

12,528

2,008

69,723


317

264

360

941

Total UK

216,329

34,029

4,033

254,391


537

944

700

2,181

Retail mortgages

7,851

465

933

9,249


8

24

356

388

Retail credit cards

22,669

3,880

1,129

27,678


331

1,127

818

2,276

Retail other

5,268

271

427

5,966


28

28

163

219

Corporate loans

56,704

4,290

564

61,558


144

160

182

486

Total Rest of the World

92,492

8,906

3,053

104,451


511

1,339

1,519

3,369

Total loans and advances at amortised cost

308,821

42,935

7,086

358,842


1,048

2,283

2,219

5,550

Debt securities

41,724

3,805

-

45,529


9

33

-

42

Total loans and advances at amortised cost including debt securities

350,545

46,740

7,086

404,371


1,057

2,316

2,219

5,592

Off-balance sheet loan commitments and financial guarantee contracts2

372,945

30,694

1,180

404,819


245

315

23

583

Total3,4

723,490

77,434

8,266

809,190


1,302

2,631

2,242

6,175
















Net exposure


Coverage ratio


Stage 1

Stage 2

Stage 3

Total


Stage 1

Stage 2

Stage 3

Total

As at 31.12.22

£m

£m

£m

£m


%

%

%

%

Retail mortgages

145,800

17,686

1,423

164,909


-

0.3

3.9

0.1

Retail credit cards

6,992

2,076

114

9,182


1.8

19.2

54.6

7.6

Retail other

8,130

1,059

148

9,337


0.9

11.5

49.5

3.7

Corporate loans1

54,870

12,264

1,648

68,782


0.6

2.1

17.9

1.3

Total UK

215,792

33,085

3,333

252,210


0.2

2.8

17.4

0.9

Retail mortgages

7,843

441

577

8,861


0.1

5.2

38.2

4.2

Retail credit cards

22,338

2,753

311

25,402


1.5

29.0

72.5

8.2

Retail other

5,240

243

264

5,747


0.5

10.3

38.2

3.7

Corporate loans

56,560

4,130

382

61,072


0.3

3.7

32.3

0.8

Total Rest of the World

91,981

7,567

1,534

101,082


0.6

15.0

49.8

3.2

Total loans and advances at amortised cost

307,773

40,652

4,867

353,292


0.3

5.3

31.3

1.5

Debt securities

41,715

3,772

-

45,487


-

0.9

-

0.1

Total loans and advances at amortised cost including debt securities

349,488

44,424

4,867

398,779


0.3

5.0

31.3

1.4

Off-balance sheet loan commitments and financial guarantee contracts2

372,700

30,379

1,157

404,236


0.1

1.0

1.9

0.1

Total3,4

722,188

74,803

6,024

803,015


0.2

3.4

27.1

0.8

 

1

Includes Business Banking, which has a gross exposure of £18.1bn and an impairment allowance of £519m. This comprises £149m impairment allowance on £10.5bn Stage 1 exposure, £121m on £6.0bn Stage 2 exposure and £249m on £1.6bn Stage 3 exposure. Excluding this, total coverage for corporate loans in UK is 0.8%.

2

Excludes loan commitments and financial guarantees of £14.9bn carried at fair value.

3

Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £180.1bn and impairment allowance of £163m. This comprises £10m impairment allowance on £178.4bn Stage 1 exposure, £9m on £1.5bn Stage 2 exposure and £144m on £149m Stage 3 exposure.

4

The annualised loan loss rate is 30bps after applying the total impairment charge of £1,220m.

 

Loans and advances at amortised cost by product

 

The table below presents a product breakdown by stages of loans and advances at amortised cost. Also included is a breakdown of Stage 2 past due balances.

 



Stage 2



As at 31.12.23

Stage 1

Not past due

<=30 days past due

>30 days past due

Total

Stage 3

Total

Gross exposure

£m

£m

£m

£m

£m

£m

£m

Retail mortgages

150,202

16,834

1,971

664

19,469

2,424

172,095

Retail credit cards

30,409

4,858

392

328

5,578

1,720

37,707

Retail other

8,469

1,094

126

123

1,343

493

10,305

Corporate loans

112,505

12,960

179

163

13,302

2,554

128,361

Total

301,585

35,746

2,668

1,278

39,692

7,191

348,468









Impairment allowance








Retail mortgages

50

73

20

12

105

428

583

Retail credit cards

523

1,257

166

207

1,630

1,333

3,486

Retail other

59

82

18

18

118

176

353

Corporate loans

287

399

8

7

414

598

1,299

Total

919

1,811

212

244

2,267

2,535

5,721









Net exposure








Retail mortgages

150,152

16,761

1,951

652

19,364

1,996

171,512

Retail credit cards

29,886

3,601

226

121

3,948

387

34,221

Retail other

8,410

1,012

108

105

1,225

317

9,952

Corporate loans

112,218

12,561

171

156

12,888

1,956

127,062

Total

300,666

33,935

2,456

1,034

37,425

4,656

342,747









Coverage ratio

%

%

%

%

%

%

%

Retail mortgages

-

0.4

1.0

1.8

0.5

17.7

0.3

Retail credit cards

1.7

25.9

42.3

63.1

29.2

77.5

9.2

Retail other

0.7

7.5

14.3

14.6

8.8

35.7

3.4

Corporate loans

0.3

3.1

4.5

4.3

3.1

23.4

1.0

Total

0.3

5.1

7.9

19.1

5.7

35.3

1.6

 

As at 31.12.22








Gross exposure

£m

£m

£m

£m

£m

£m

£m

Retail mortgages

153,672

15,990

1,684

526

18,200

2,414

174,286

Retail credit cards

29,788

5,731

284

434

6,449

1,380

37,617

Retail other

13,470

1,232

104

132

1,468

720

15,658

Corporate loans

111,891

16,552

159

107

16,818

2,572

131,281

Total

308,821

39,505

2,231

1,199

42,935

7,086

358,842









Impairment allowance








Retail mortgages

29

53

11

9

73

414

516

Retail credit cards

458

1,334

100

186

1,620

955

3,033

Retail other

100

118

22

26

166

308

574

Corporate loans

461

401

13

10

424

542

1,427

Total

1,048

1,906

146

231

2,283

2,219

5,550









Net exposure








Retail mortgages

153,643

15,937

1,673

517

18,127

2,000

173,770

Retail credit cards

29,330

4,397

184

248

4,829

425

34,584

Retail other

13,370

1,114

82

106

1,302

412

15,084

Corporate loans

111,430

16,151

146

97

16,394

2,030

129,854

Total

307,773

37,599

2,085

968

40,652

4,867

353,292









Coverage ratio

%

%

%

%

%

%

%

Retail mortgages

-

0.3

0.7

1.7

0.4

17.1

0.3

Retail credit cards

1.5

23.3

35.2

42.9

25.1

69.2

8.1

Retail other

0.7

9.6

21.2

19.7

11.3

42.8

3.7

Corporate loans

0.4

2.4

8.2

9.3

2.5

21.1

1.1

Total

0.3

4.8

6.5

19.3

5.3

31.3

1.5

 

Movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees

 

The following tables present a reconciliation of the opening to the closing balance of the exposure and impairment allowance.

 

Transfers between stages in the tables have been reflected as if they had taken place at the beginning of the year. 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes' includes additional drawdowns and partial repayments from existing facilities. Additionally, the below tables do not include other financial assets subject to impairment such as debt securities at amortised cost, cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets.

 

The movements are measured over a 12-month period.

 

Loans and advances at amortised cost

 


Stage 1

Stage 2

Stage 3

Total


Gross exposure

ECL

Gross exposure

ECL

Gross exposure

ECL

Gross exposure

ECL

Retail mortgages

£m

£m

£m

£m

£m

£m

£m

£m

As at 1 January 2023

153,672

29

18,200

73

2,414

414

174,286

516

Transfers from Stage 1 to Stage 2

(9,557)

(2)

9,557

2

-

-

-

-

Transfers from Stage 2 to Stage 1

6,052

22

(6,052)

(22)

-

-

-

-

Transfers to Stage 3

(453)

-

(530)

(13)

983

13

-

-

Transfers from Stage 3

26

1

122

2

(148)

(3)

-

-

Business activity in the period1

23,329

13

978

7

26

11

24,333

31

Refinements to models used for calculation

-

-

-

-

-

-

-

-

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

(11,505)

(8)

(1,136)

65

(502)

27

(13,143)

84

Final repayments

(10,837)

(3)

(1,666)

(9)

(328)

(15)

(12,831)

(27)

Disposals2

(525)

(2)

(4)

-

(2)

-

(531)

(2)

Write-offs

-

-

-

-

(19)

(19)

(19)

(19)

As at 31 December 2023

150,202

50

19,469

105

2,424

428

172,095

583










Retail credit cards









As at 1 January 2023

29,788

458

6,449

1,620

1,380

955

37,617

3,033

Transfers from Stage 1 to Stage 2

(2,406)

(68)

2,406

68

-

-

-

-

Transfers from Stage 2 to Stage 1

2,900

590

(2,900)

(590)

-

-

-

-

Transfers to Stage 3

(678)

(27)

(874)

(374)

1,552

401

-

-

Transfers from Stage 3

54

32

31

18

(85)

(50)

-

-

Business activity in the period

2,775

60

332

116

29

25

3,136

201

Refinements to models used for calculation3

-

(28)

-

37

-

11

-

20

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

(162)

(465)

649

797

(47)

998

440

1,330

Final repayments

(241)

(14)

(70)

(21)

(26)

(19)

(337)

(54)

Transfers to assets held for sale4

(1,621)

(15)

(445)

(41)

(92)

(68)

(2,158)

(124)

Disposals2

-

-

-

-

(186)

(115)

(186)

(115)

Write-offs

-

-

-

-

(805)

(805)

(805)

(805)

As at 31 December 2023

30,409

523

5,578

1,630

1,720

1,333

37,707

3,486

 

1

Business activity in the year reported within Retail mortgages includes an acquisition of Kensington Mortgage Company in UK Mortgages of £2.4bn.

2

The £531m of disposals reported within Retail mortgages relate to transfer of facilities to a non-consolidated special purpose vehicle for the purpose of securitisation. The £186m of disposals reported within Retail credit cards include debt sales undertaken during the year.

3

Refinements to models used for calculation reported within Retail credit cards include a £88m movement in UK Cards, £43m movement in US Cards and £(111)m movement in German consumer finance business. These reflect model enhancements made during the year. Barclays continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses.

4

Transfers to assets held for sale reported within Retail credit cards relate to the German consumer finance business portfolio.

 

Loans and advances at amortised cost








Stage 1

Stage 2

Stage 3

Total


Gross exposure

ECL

Gross exposure

ECL

Gross exposure

ECL

Gross exposure

ECL

Retail other

£m

£m

£m

£m

£m

£m

£m

£m

As at 1 January 2023

13,470

100

1,468

166

720

308

15,658

574

Transfers from Stage 1 to Stage 2

(1,179)

(13)

1,179

13

-

-

-

-

Transfers from Stage 2 to Stage 1

463

36

(463)

(36)

-

-

-

-

Transfers to Stage 3

(549)

(4)

(154)

(44)

703

48

-

-

Transfers from Stage 3

33

3

9

4

(42)

(7)

-

-

Business activity in the period

7,302

27

197

23

28

21

7,527

71

Refinements to models used for calculation

-

-

-

-

-

-

-

-

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

(4,163)

(57)

(247)

31

(146)

115

(4,556)

89

Final repayments

(5,347)

(13)

(358)

(7)

(421)

(44)

(6,126)

(64)

Transfers to assets held for sale1

(1,561)

(20)

(288)

(32)

(84)

(60)

(1,933)

(112)

Disposals2

-

-

-

-

(134)

(74)

(134)

(74)

Write-offs

-

-

-

-

(131)

(131)

(131)

(131)

As at 31 December 2023

8,469

59

1,343

118

493

176

10,305

353










Corporate loans









As at 1 January 2023

111,891

461

16,818

424

2,572

542

131,281

1,427

Transfers from Stage 1 to Stage 2

(6,172)

(45)

6,172

45

-

-

-

-

Transfers from Stage 2 to Stage 1

5,592

108

(5,592)

(108)

-

-

-

-

Transfers to Stage 3

(758)

(10)

(1,011)

(27)

1,769

37

-

-

Transfers from Stage 3

195

16

403

22

(598)

(38)

-

-

Business activity in the period

23,213

43

933

29

205

29

24,351

101

Refinements to models used for calculation3

-

(61)

-

174

-

-

-

113

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes4

2,079

(179)

(1,618)

(73)

(667)

405

(206)

153

Final repayments

(23,149)

(43)

(2,689)

(46)

(406)

(65)

(26,244)

(154)

Disposals2

(386)

(3)

(114)

(26)

(108)

(99)

(608)

(128)

Write-offs

-

-

-

-

(213)

(213)

(213)

(213)

As at 31 December 2023

112,505

287

13,302

414

2,554

598

128,361

1,299

 

1

Transfers to assets held for sale reported within Retail other relate to the German consumer finance business portfolio.

2

The £134m of disposals reported within Retail other include £64m part sale of Wealth portfolio in Italy and £70m of debt sales undertaken during the year. The £608m of disposals reported within Corporate loans relate to debt sales undertaken during the year.

3

Refinements to models used for calculation reported within Corporate loans include a £93m movement in Corporate and Investment Bank and £20m movement in Barclaycard Payments. These reflect model enhancements made during the year. Barclays continually reviews the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This helps to ensure that the models used continue to reflect the risks inherent across the businesses.

4

'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes' reported within Corporate loans also include assets of £0.8bn derecognised due to payment received on defaulted loans from government guarantees issued under government's Bounce Back Loans Scheme.

 

Reconciliation of ECL movement to impairment charge/(release) for the period







Stage 1

Stage 2

Stage 3

Total






£m

£m

£m

£m

Retail mortgages

23

32

33

88

Retail credit cards

80

51

1,366

1,497

Retail other

(21)

(16)

133

96

Corporate loans

(171)

16

368

213

ECL movements excluding assets held for sale, disposals and write-offs1

(89)

83

1,900

1,894

ECL movement on loan commitments and other financial guarantees

(72)

(28)

21

(79)

ECL movement on other financial assets

6

(7)

(11)

(12)

ECL movement on debt securities

2

(17)

-

(15)

Recoveries and reimbursements2

4

(4)

(73)

(73)

Total exchange and other adjustments




166

Total income statement charge for the period




1,881

 

1

In 2023, gross write-offs amounted to £1,168m (2022: £1,620m) and post write-off recoveries amounted to £44m (2022: £64m). Net write-offs represent gross write-offs less post write-off recoveries and amounted to £1,124m (2022: £1,556m).

2

Recoveries and reimbursements include £29m for reimbursements expected to be received under the arrangement where Group has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £44m.

 

Loan commitments and financial guarantees


Stage 1

Stage 2

Stage 3

Total


Gross

exposure

ECL

Gross

exposure

ECL

Gross

exposure

ECL

Gross

exposure

ECL

Retail mortgages

£m

£m

£m

£m

£m

£m

£m

£m

As at 1 January 2023

11,714

-

450

-

6

-

12,170

-

Net transfers between stages

(62)

-

53

-

9

-

-

-

Business activity in the period

4,184

-

-

-

-

-

4,184

-

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

(7,669)

-

(11)

-

(11)

-

(7,691)

-

Limit management and final repayments

(391)

-

(44)

-

-

-

(435)

-

As at 31 December 2023

7,776

-

448

-

4

-

8,228

-










Retail credit cards1









As at 1 January 2023

144,957

50

5,435

83

228

-

150,620

133

Net transfers between stages

448

61

(538)

(61)

90

-

-

-

Business activity in the period

19,098

16

224

13

1

-

19,323

29

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

(5,863)

(59)

(1,769)

53

(101)

-

(7,733)

(6)

Limit management and final repayments

(13,849)

(9)

(545)

(34)

(76)

-

(14,470)

(43)

As at 31 December 2023

144,791

59

2,807

54

142

-

147,740

113










Retail other1









As at 1 January 2023

10,427

5

520

-

80

-

11027

5

Net transfers between stages

(171)

-

140

-

31

-

-

-

Business activity in the period

1,639

-

1

-

4

-

1,644

-

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

(1,690)

1

(93)

2

(59)

-

(1,842)

3

Limit management and final repayments

(1,598)

-

(33)

-

(12)

-

(1,643)

-

As at 31 December 2023

8,607

6

535

2

44

-

9,186

8










Corporate loans









As at 1 January 2023

205,847

190

24,289

232

866

23

231,002

445

Net transfers between stages

2,416

23

(2,423)

(23)

7

-

-

-

Business activity in the period

54,807

27

2,271

43

39

2

57,117

72

Net drawdowns, repayments, net re-measurement and movement due to exposure and risk parameter changes

3,556

(106)

97

25

206

24

3,859

(57)

Limit management and final repayments

(53,737)

(26)

(3,816)

(46)

(271)

(5)

(57,824)

(77)

As at 31 December 2023

212,889

108

20,418

231

847

44

234,154

383

 

1.

Loan commitments reported within Retail credit cards and Retail other also include financial assets classified as held for sale

 

Management adjustments to models for impairment

 

Management adjustments to impairment models are applied in order to factor in certain conditions or changes in policy that are not fully incorporated into the impairment models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated into future model development where applicable.

 

Management adjustments are captured through "Economic uncertainty" and "Other" adjustments, and are presented by product and geography below:

 

Management adjustments to models for impairment allowance presented by product and geography1

 


Impairment allowance pre management adjustments2

Economic uncertainty adjustments

Other adjustments

Management adjustments

Total impairment allowance3

Proportion of Management adjustments to total impairment allowance



(a)

(b)

(a+b)



As at 31 December 2023

£m

£m

£m

£m

£m

%

Retail mortgages

54

57

121

178

232

76.7

Retail credit cards

700

45

(9)

36

736

4.9

Retail other

251

9

62

71

322

22.0

Corporate loans

761

71

10

81

842

9.6

Total UK

1,766

182

184

366

2,132

17.2

Retail mortgages

354

-

(3)

(3)

351

(0.9)

Retail credit cards

2,855

-

8

8

2,863

0.3

Retail other

45

-

(6)

(6)

39

(15.4)

Corporate loans

828

16

(4)

12

840

1.4

Total Rest of the World

4,082

16

(5)

11

4,093

0.3

Total

5,848

198

179

377

6,225

6.1

Debt securities at amortised cost

27

-

-

-

27

-

Total including debt securities at amortised cost

5,875

198

179

377

6,252

6.0








As at 31 December 2022

£m

£m

£m

£m

£m

%

Retail mortgages

39

4

85

89

128

69.5

Retail credit cards

679

93

32

125

804

15.5

Retail other

257

23

80

103

360

28.6

Corporate loans

682

249

166

415

1,097

37.8

Total UK

1,657

369

363

732

2,389

30.6

Retail mortgages

388

-

-

-

388

-

Retail credit cards

2,307

-

55

55

2,362

2.3

Retail other

198

2

19

21

219

9.6

Corporate loans

1,058

(54)

(229)

(283)

775

(36.5)

Total Rest of the World

3,951

(52)

(155)

(207)

3,744

(5.5)

Total

5,608

317

208

525

6,133

8.6

Debt securities at amortised cost

42

-

-

-

42

-

Total including debt securities at amortised cost

5,650

317

208

525

6,175

8.5

 

1

Positive values reflect an increase in impairment allowance and negative values reflect a reduction in the impairment allowance.

2

Includes £5.2bn (2022: £4.8bn) of modelled ECL, £0.4bn (2022: £0.4bn) of individually assessed impairments and £0.3bn (2022: £0.5bn) ECL from non-modelled exposures and debt securities.

3

Total impairment allowance consists of ECL stock on drawn and undrawn exposure.

 

Economic uncertainty adjustments presented by stage

 


Stage 1

Stage 2

Stage 3

Total

As at 31 December 2023

£m

£m

£m

£m

Retail mortgages

12

32

13

57

Retail credit cards

8

37

-

45

Retail other

3

6

-

9

Corporate loans

48

12

11

71

Total UK

71

87

24

182

Retail mortgages

-

-

-

-

Retail credit cards

-

-

-

-

Retail other

-

-

-

-

Corporate loans

4

12

-

16

Total Rest of the World

4

12

-

16

Total

75

99

24

198

 

As at 31 December 2022

£m

£m

£m

£m

Retail mortgages

1

3

-

4

Retail credit cards

17

76

-

93

Retail other

7

15

1

23

Corporate loans

189

60

-

249

Total UK

214

154

1

369

Retail mortgages

-

-

-

-

Retail credit cards

-

-

-

-

Retail other

-

2

-

2

Corporate loans

(8)

(46)

-

(54)

Total Rest of the World

(8)

(44)

-

(52)

Total

206

110

1

317

 

Economic uncertainty adjustments

 

Models have been developed with data from non-inflationary periods establishing a relationship between input variables and customer delinquency based on past behaviour. As such there is a risk that the modelled output fails to capture the appropriate response to changes in macroeconomic variables including higher interest rates and continuing inflationary stress with modelled impairment provisions impacted by uncertainty.

 

This uncertainty continues to be captured in two ways. Firstly, customer uncertainty: the identification of customers and clients who may be more vulnerable to economic instability; and secondly, model uncertainty: to capture the impact from model limitations and sensitivities to specific macroeconomic parameters which are applied at a portfolio level.

 

Economic uncertainty adjustments have decreased from last year following the re-build of UK cards and certain CIB impairment models which better capture the macroeconomic outlook. Furthermore, adjustments have been reassessed to capture affordability headwinds in UK retail lending.

 

The balance as at 31 December 2023 is £198m (2022: £317m) and includes:

 

Customer and client uncertainty provisions of £166m (2022: £423m):

 

UK retail lending includes adjustments applied to customers considered most vulnerable to affordability pressures.

Retail mortgages (UK) £25m (2022: £4m): The increase primarily reflects the risk of borrowers refinancing onto higher rates in the medium term.

Retail credit cards (UK) £45m (2022: £93m): The reduction reflects the re-build of UK cards impairment models which better capture sensitivity to movements in interest rates and inflation.

Retail other (UK) £9m (2022: £23m): The reduction reflects customer resilience to affordability headwinds.

Corporate loans £87m (2022: £301m): This includes an adjustment of £71m in UK to reflect possible cross default risk on Barclays' lending in respect of clients who have taken bounce back loans and £16m in Rest of the World (ROW) to provide for downside uncertainties on European Corporates reflecting recent changes in the macroeconomic outlook.

 

The reduction of £(214)m in UK and ROW is informed by retirement of an adjustment for high risk sectors following a granular credit risk assessment, and re-build of certain CIB impairment models which more appropriately capture downside risk.

 

Model uncertainty provisions of £32m (2022: £(106)m):

 

Retail mortgages (UK) £32m (2022: nil): This includes an adjustment to correct for higher recovery expectations impacted by model oversensitivity to certain macroeconomic variables.

Corporate loans £nil (2022: £(106)m): The adjustment held in the previous year to correct for model oversensitivity has been retired following the re-build of certain CIB impairment models which more appropriately capture the macroeconomic outlook.

 

Other adjustments

 

Other adjustments are operational in nature and are expected to remain in place until they can be reflected in the underlying models. These adjustments result from data limitations and model performance related issues identified through model monitoring and other established governance processes.

 

Other adjustments of £179m (2022: £208m) includes:

 

Adjustments for definition of default (DOD) under the Capital Requirements Regulation and model monitoring in Retail mortgages, Retail other and Corporate loans.

 

Retail mortgages (UK) £121m (2022: £85m): The increase reflects re-sizing of an adjustment for DOD and an ECL provision for Kensington Mortgages which was acquired during the year.

Retail credit cards:

-UK £(9)m (2022: £32m): The reduction is informed by retirement of operational adjustments following the re-build of UK cards impairment models.

-ROW £8m (2022: £55m): The reduction is informed by retirement of an adjustment in US cards for high-risk account management (HRAM) accounts following model remediation during the year.

Retail other:

-UK £62m (2022: £80m): The underlying adjustments were re-sized and remain broadly in line with the previous year.

-ROW, £(6)m (2022: £19m): The reduction is informed by the German consumer finance business portfolio classified as assets held for sale.

Corporate loans:

-UK £10m (2022: £166m): The reduction is informed by retirement of model monitoring adjustments in CIB following the re-build of certain impairment models. Further, operational adjustments have been introduced during the year to remediate conservative modelled recovery expectations in the ESHLA portfolio.

-ROW £(4)m (2022: £(229)m): The previously held adjustments linked to model monitoring and ECL sensitivity to the macroeconomic variable for Federal Tax Receipts have been retired following the re-build of certain CIB impairment models.

 

Measurement uncertainty

 

Scenarios used to calculate the Group's ECL charge were refreshed in Q423 with the Baseline scenario reflecting the latest consensus macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, whilst UK and US economies avoid a recession, GDP growth remains weak in the coming quarters and beyond as restrictive monetary policies, which impact economies with a lag, continue to restrain growth. Having peaked in 2022, consumer price inflation in key regions continues to ease over 2023 and 2024. The UK and US unemployment rates rise to 4.8% and 4.4% respectively over 2024 and then stabilise. With the significant decline in inflationary pressures, major central banks refrain from further interest rate increases. UK house prices continue to decline in 2024 before stabilising and resuming the upward trend from 2025. The housing market in the US remains more resilient, with house prices continuing to grow.

 

In the Downside 2 scenario, inflationary pressures are assumed to intensify again, mainly driven by strong wage growth. Central banks raise rates further, with the UK bank rate and the US federal fund rate each reaching 8.5% in Q324. High interest rates suddenly bring stress into the financial and non-financial system, causing joblessness to spike and triggering a housing markets crisis and central banks are forced cut interest rates aggressively. Falling demand reduces UK and US GDP and headline inflation drops to close to zero. In the Upside 2 scenario, tighter and more productive labour markets help to accelerate economic growth whilst keeping inflationary pressures under control. With inflation quickly returning to target, central banks lower interest rates, further stimulating aggregate demand and GDP growth.

 

The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the Baseline attracting a lower weighting before the five weights are normalised to total 100%. The increases in the Downside scenario weightings reflected a reduction in GDP stress severity in the Downside scenarios which brought the GDP of these scenarios closer to the Baseline. The increases in the Upside scenario weightings were driven by the improvement in actual GDP and the Baseline scenario, bringing the Baseline scenario closer to the Upside scenarios. For further details see page 42.

 

The economic uncertainty adjustments of £0.2bn (2022: £0.3bn) have been applied as overlays to the modelled ECL output. These adjustments consist of a customer and client uncertainty provision of £0.2bn (2022: £0.4bn) which has been applied to customers and clients considered most vulnerable to affordability pressures, and a model uncertainty adjustment of £0.0bn (2022: £(0.1)bn).

 

The following tables show the key macroeconomic variables used in the five scenarios (5 year annual paths) and the probability weights applied to each scenario.

 

Macroeconomic variables used in the calculation of ECL

As at 31.12.23

2023

2024

2025

2026

2027

Baseline

%

%

%

%

%

UK GDP1

0.5

0.3

1.2

1.6

1.6

UK unemployment2

4.2

4.7

4.7

4.8

5.0

UK HPI3

(3.3)

(5.1)

0.7

3.1

5.3

UK bank rate

4.7

4.9

4.1

3.8

3.5

US GDP1

2.4

1.3

1.7

1.9

1.9

US unemployment4

3.7

4.3

4.3

4.3

4.3

US HPI5

5.4

3.4

3.0

3.3

3.3

US federal funds rate

5.1

5.0

3.9

3.8

3.8







Downside 2






UK GDP1

0.5

(1.5)

(2.6)

2.4

1.6

UK unemployment2

4.2

5.2

7.9

6.3

5.5

UK HPI3

(3.3)

(19.3)

(16.8)

14.5

12.4

UK bank rate

4.7

6.6

1.3

1.0

1.0

US GDP1

2.4

(0.6)

(2.0)

3.1

2.0

US unemployment4

3.7

5.2

7.2

5.9

5.2

US HPI5

5.4

(6.5)

(5.7)

7.2

6.4

US federal funds rate

5.1

6.3

1.8

1.5

1.5







Downside 1






UK GDP1

0.5

(0.6)

(0.7)

2.0

1.6

UK unemployment2

4.2

4.9

6.3

5.6

5.2

UK HPI3

(3.3)

(12.4)

(8.3)

8.7

8.8

UK bank rate

4.7

5.8

2.7

2.5

2.3

US GDP1

2.4

0.3

(0.2)

2.5

1.9

US unemployment4

3.7

4.7

5.8

5.1

4.8

US HPI5

5.4

(1.7)

(1.4)

5.2

4.8

US federal funds rate

5.1

5.7

2.9

2.8

2.8







Upside 2






UK GDP1

0.5

2.4

3.7

2.9

2.4

UK unemployment2

4.2

3.9

3.5

3.6

3.6

UK HPI3

(3.3)

7.8

7.6

4.5

5.6

UK bank rate

4.7

4.3

2.7

2.5

2.5

US GDP1

2.4

2.8

3.1

2.8

2.8

US unemployment4

3.7

3.5

3.6

3.6

3.6

US HPI5

5.4

6.1

4.3

4.5

4.6

US federal funds rate

5.1

4.3

2.9

2.8

2.8







Upside 1






UK GDP1

0.5

1.4

2.5

2.3

2.0

UK unemployment2

4.2

4.3

4.1

4.2

4.3

UK HPI3

(3.3)

1.2

4.1

3.8

5.4

UK bank rate

4.7

4.6

3.4

3.3

3.0

US GDP1

2.4

2.0

2.4

2.4

2.4

US unemployment4

3.7

3.9

3.9

4.0

4.0

US HPI5

5.4

4.7

3.7

3.9

3.9

US federal funds rate

5.1

4.7

3.5

3.3

3.3

 

1

Average Real GDP seasonally adjusted change in year.

2

Average UK unemployment rate 16-year+.

3

Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.

4

Average US civilian unemployment rate 16-year+.

5

Change in year end US HPI = FHFA House Price Index, relative to prior year end.

 

As at 31.12.22

2022

2023

2024

2025

2026

Baseline

%

%

%

%

%

UK GDP1

3.3

(0.8)

0.9

1.8

1.9

UK unemployment2

3.7

4.5

4.4

4.1

4.2

UK HPI3

8.4

(4.7)

(1.7)

2.2

2.2

UK bank rate

1.8

4.4

4.1

3.8

3.4

US GDP1

1.8

0.5

1.2

1.5

1.5

US unemployment4

3.7

4.3

4.7

4.7

4.7

US HPI5

11.2

1.8

1.5

2.3

2.4

US federal funds rate

2.1

4.8

3.6

3.1

3.0







Downside 2






UK GDP1

3.3

(3.4)

(3.8)

2.0

2.3

UK unemployment2

3.7

6.0

8.4

8.0

7.4

UK HPI3

8.4

(18.3)

(18.8)

(7.7)

8.2

UK bank rate

1.8

7.3

7.9

6.6

5.5

US GDP1

1.8

(2.7)

(3.4)

2.0

2.6

US unemployment4

3.7

6.0

8.5

8.1

7.1

US HPI5

11.2

(3.1)

(4.0)

(1.9)

4.8

US federal funds rate

2.1

6.6

6.9

5.8

4.6







Downside 1






UK GDP1

3.3

(2.1)

(1.5)

1.9

2.1

UK unemployment2

3.7

5.2

6.4

6.0

5.8

UK HPI3

8.4

(11.7)

(10.6)

(2.8)

5.2

UK bank rate

1.8

5.9

6.1

5.3

4.6

US GDP1

1.8

(1.1)

(1.1)

1.7

2.1

US unemployment4

3.7

5.1

6.6

6.4

5.9

US HPI5

11.2

(0.7)

(1.3)

0.2

3.6

US federal funds rate

2.1

5.8

5.4

4.4

3.9







Upside 2






UK GDP1

3.3

2.8

3.7

2.9

2.4

UK unemployment2

3.7

3.5

3.4

3.4

3.4

UK HPI3

8.4

8.7

7.5

4.4

4.2

UK bank rate

1.8

3.1

2.6

2.5

2.5

US GDP1

1.8

3.3

3.5

2.8

2.8

US unemployment4

3.7

3.3

3.3

3.3

3.3

US HPI5

11.2

5.8

5.1

4.5

4.5

US federal funds rate

2.1

3.6

2.9

2.8

2.8







Upside 1






UK GDP1

3.3

1.0

2.3

2.4

2.1

UK unemployment2

3.7

4.0

3.9

3.8

3.8

UK HPI3

8.4

1.8

2.9

3.3

3.2

UK bank rate

1.8

3.5

3.3

3.0

2.8

US GDP1

1.8

1.9

2.3

2.2

2.2

US unemployment4

3.7

3.8

4.0

4.0

4.0

US HPI5

11.2

3.8

3.3

3.4

3.4

US federal funds rate

2.1

3.9

3.4

3.0

3.0

 

1

Average Real GDP seasonally adjusted change in year.

2

Average UK unemployment rate 16-year+.

3

Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.

4

Average US civilian unemployment rate 16-year+.

5

Change in year end US HPI = FHFA House Price Index, relative to prior year end.

 

Scenario probability weighting

Upside 2

Upside 1

Baseline

Downside 1

Downside 2


%

%

%

%

%

As at 31.12.23






Scenario probability weighting

13.8

24.7

32.7

18.3

10.8

As at 31.12.22






Scenario probability weighting

10.9

23.1

39.4

17.6

9.0

 

 

Specific bases show the most extreme position of each variable in the context of the downside/upside scenarios, for example, the highest unemployment for downside scenarios, average unemployment for baseline scenarios and lowest unemployment for upside scenarios. GDP and HPI downside and upside scenario data represents the lowest and highest cumulative position relative to the start point, in the 20 quarter period.

 

Macroeconomic variables (specific bases)1


Upside 2

Upside 1

Baseline

Downside 1

Downside 2

As at 31.12.23

%

%

%

%

%

UK GDP2

13.4

9.6

1.1

(1.3)

(4.1)

UK unemployment3

3.5

3.9

4.7

6.5

8.3

UK HPI4

23.8

11.5

0.1

(22.5)

(35.0)

UK bank rate

2.5

3.0

4.2

6.8

8.5

US GDP2

15.1

12.3

1.8

0.6

(1.7)

US unemployment3

3.4

3.5

4.2

5.9

7.5

US HPI4

27.4

23.5

3.7

0.4

(7.6)

US federal funds rate

2.8

3.3

4.3

6.8

8.5

As at 31.12.22

%

%

%

%

%

UK GDP2

13.9

9.4

1.4

(3.2)

(6.8)

UK unemployment3

3.4

3.6

4.2

6.6

8.5

UK HPI4

37.8

21.0

1.2

(17.9)

(35.0)

UK bank rate

0.5

0.5

3.5

6.3

8.0

US GDP2

14.1

9.6

1.3

(2.5)

(6.3)

US unemployment3

3.3

3.6

4.4

6.7

8.6

US HPI4

35.0

27.5

3.8

3.7

0.2

US federal funds rate

0.1

0.1

3.3

6.0

7.0

 

1

UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HI = Halifax All Houses, All Buyers Index; US GDP = Real GDP growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA House Price Index. 20 quarter period starts from Q123 (2022: Q122).

2

Maximum growth relative to Q422 (2022: Q421), based on 20 quarter period in Upside scenarios; 5-year yearly average CAGR in Baseline; minimum growth relative to Q422 (2022: Q421), based on 20 quarter period in Downside scenarios.

3

Lowest quarter in 20 quarter period in Upside scenarios; 5-year average in Baseline; highest quarter 20 quarter period in Downside scenarios.

4

Maximum growth relative to Q422 (2022: Q421), based on 20 quarter period in Upside scenarios; 5-year quarter end CAGR in Baseline; minimum growth relative to Q422 (2022: Q421), based on 20 quarter period in Downside scenarios.

 

Average basis represents the average quarterly value of variables in the 20 quarter period with GDP and HPI based on yearly average and quarterly CAGRs respectively.

 

Macroeconomic variables (5-year averages)1


Upside 2

Upside 1

Baseline

Downside 1

Downside 2

As at 31.12.23

%

%

%

%

%

UK GDP2

2.4

1.7

1.1

0.6

0.1

UK unemployment3

3.7

4.2

4.7

5.2

5.8

UK HPI4

4.4

2.2

0.1

(1.7)

(3.5)

UK bank rate

3.3

3.8

4.2

3.6

2.9

US GDP2

2.8

2.3

1.8

1.4

0.9

US unemployment3

3.6

3.9

4.2

4.8

5.4

US HPI4

5.0

4.3

3.7

2.4

1.2

US federal funds rate

3.6

4.0

4.3

3.9

3.2

As at 31.12.22

%

%

%

%

%

UK GDP2

3.0

2.2

1.4

0.7

-

UK unemployment3

3.5

3.8

4.2

5.4

6.7

UK HPI4

6.6

3.9

1.2

(2.6)

(6.4)

UK bank rate

2.5

2.9

3.5

4.7

5.8

US GDP2

2.9

2.1

1.3

0.7

-

US unemployment3

3.4

3.9

4.4

5.5

6.7

US HPI4

6.2

5.0

3.8

2.5

1.2

US federal funds rate

2.8

3.1

3.3

4.3

5.2

 

1

UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers Index; US GDP = Real GDP growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA House Price Index.

2

5-year yearly average CAGR, starting 2022 (2022: 2021).

3

5-year average. Period based on 20 quarters from Q123 (2022: Q122).

4

5-year quarter end CAGR, starting Q422 (2022: Q421).

 

ECL under 100% weighted scenarios for modelled portfolios

 

The table below shows the modelled ECL assuming each of the five modelled scenarios are 100% weighted with the dispersion of results around the Baseline, highlighting the impact on exposure and ECL across the scenarios. Model exposure uses exposure at default (EAD) values and is not directly comparable to gross exposure used in prior disclosures.

 


Scenarios

As at 31 December 2023

Weighted1

Upside 2

Upside 1

Baseline

Downside 1

Downside 2

Stage 1 Model Exposure (£m)







Retail mortgages

145,226

147,415

146,653

145,405

142,543

138,925

Retail credit cards2

66,512

66,459

66,482

66,497

66,580

66,580

Retail other2

8,749

8,915

8,841

8,758

8,631

8,479

Corporate loans

175,282

179,567

177,923

175,903

172,328

167,541

Stage 1 Model ECL (£m)







Retail mortgages

9

4

5

7

11

22

Retail credit cards2

562

529

545

561

584

605

Retail other2

32

31

32

32

32

31

Corporate loans

275

243

257

270

298

318

Stage 1 Coverage (%)







Retail mortgages

-

-

-

-

-

-

Retail credit cards

0.8

0.8

0.8

0.8

0.9

0.9

Retail other

0.4

0.3

0.4

0.4

0.4

0.4

Corporate loans

0.2

0.1

0.1

0.2

0.2

0.2

Stage 2 Model Exposure (£m)







Retail mortgages

20,615

17,769

18,702

20,149

23,836

28,822

Retail credit cards2

7,076

6,897

6,976

7,064

7,183

7,387

Retail other2

1,382

1,216

1,290

1,373

1,500

1,653

Corporate loans

24,374

19,919

21,621

23,763

27,445

32,375

Stage 2 Model ECL (£m)







Retail mortgages

41

23

27

34

59

123

Retail credit cards2

1,684

1,554

1,609

1,668

1,775

1,922

Retail other2

85

72

78

84

95

105

Corporate loans

663

509

565

633

782

1,031

Stage 2 Coverage (%)







Retail mortgages

0.2

0.1

0.1

0.2

0.2

0.4

Retail credit cards

23.8

22.5

23.1

23.6

24.7

26.0

Retail other

6.2

5.9

6.0

6.1

6.3

6.4

Corporate loans

2.7

2.6

2.6

2.7

2.8

3.2

Stage 3 Model Exposure (£m)3







Retail mortgages

1,672

1,672

1,672

1,672

1,672

1,672

Retail credit cards2

1,827

1,827

1,827

1,827

1,827

1,827

Retail other2

164

164

164

164

164

164

Corporate loans

3,436

3,436

3,436

3,436

3,436

3,436

Stage 3 Model ECL (£m)







Retail mortgages

333

308

316

325

351

393

Retail credit cards2

1,315

1,279

1,296

1,313

1,341

1,366

Retail other2

95

94

94

95

96

97

Corporate loans4

77

71

73

75

82

89

Stage 3 Coverage (%)







Retail mortgages

19.9

18.4

18.9

19.4

21.0

23.5

Retail credit cards

72.0

70.0

70.9

71.9

73.4

74.8

Retail other

57.9

57.3

57.3

57.9

58.5

59.1

Corporate loans4

2.2

2.1

2.1

2.2

2.4

2.6

Total Model ECL (£m)







Retail mortgages

383

335

348

366

421

538

Retail credit cards2

3,561

3,362

3,450

3,542

3,700

3,893

Retail other2

212

197

204

211

223

233

Corporate loans4

1,015

823

895

978

1,162

1,438

Total Model ECL

5,171

4,717

4,897

5,097

5,506

6,102

 

Reconciliation to total ECL

£m

Total weighted model ECL

5,171

ECL from individually assessed exposures4

401

ECL from non-modelled exposures and others

276

ECL from debt securities at amortised cost

27

ECL from post model management adjustments

377

Of which: ECL from economic uncertainty adjustments

198

Total ECL

6,252

 

1

Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach as required for Barclays reported impairment allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage dependent on the scenario.

2

Model exposures and ECL reported within Retail credit cards and Retail other exclude the German consumer finance business portfolio which has now been classified as assets held for sale.

3

Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31 December 2023 and not on macroeconomic scenario.

4

Material corporate loan defaults are individually assessed across different recovery strategies. As a result, ECL of £401m is reported as an individually assessed impairment in the reconciliation table.

 

The use of five scenarios with associated weightings results in a total weighted ECL uplift from the Baseline ECL of 1.5%.

 

Retail mortgages: Total weighted ECL of £383m represents a 4.6% increase over the Baseline ECL (£366m) with coverage ratios remaining steady across the Upside scenarios, Baseline and Downside 1 scenario. Under the Downside 2 scenario, total ECL increases to £538m driven by a significant fall in UK HPI.

 

Retail credit cards: Total weighted ECL of £3,561m is broadly aligned to the Baseline ECL (£3,542m). Total ECL increases to £3,893m under the Downside 2 scenario, driven by an increase in UK and US unemployment rate.

 

Retail other: Total weighted ECL of £212m is aligned to the Baseline ECL (£211m). Total ECL increases to £233m under the Downside 2 scenario, largely driven by an increase in UK unemployment rate.

 

Corporate loans: Total weighted ECL of £1,015m represents a 3.8% increase over the Baseline ECL (£978m). Total ECL increases to £1,438m under the Downside 2 scenario, driven by a decrease in UK and US GDP.

 


Scenarios

As at 31 December 2022

Weighted1

Upside 2

Upside 1

Baseline

Downside 1

Downside 2

Stage 1 Model Exposure (£m)







Retail mortgages

144,701

147,754

146,873

145,322

142,599

138,619

Retail credit cards

67,204

67,622

67,352

67,080

66,908

66,636

Retail other

12,282

12,428

12,341

12,235

12,111

11,986

Corporate loans

155,794

163,699

161,070

157,710

150,435

138,226

Stage 1 Model ECL (£m)







Retail mortgages

7

3

3

4

9

30

Retail credit cards

509

493

503

512

517

521

Retail other

52

45

49

52

54

55

Corporate loans

341

259

290

325

397

443

Stage 1 Coverage (%)







Retail mortgages

-

-

-

-

-

-

Retail credit cards

0.8

0.7

0.7

0.8

0.8

0.8

Retail other

0.4

0.4

0.4

0.4

0.4

0.5

Corporate loans

0.2

0.2

0.2

0.2

0.3

0.3

Stage 2 Model Exposure (£m)







Retail mortgages

18,723

15,670

16,551

18,102

20,825

24,805

Retail credit cards

7,611

6,551

7,118

7,691

8,313

9,062

Retail other

1,559

1,386

1,485

1,601

1,741

1,881

Corporate loans

24,935

16,858

19,550

23,031

30,432

42,837

Stage 2 Model ECL (£m)







Retail mortgages

33

15

18

23

45

151

Retail credit cards

1,624

1,361

1,487

1,624

1,811

2,032

Retail other

124

96

109

124

144

160

Corporate loans

610

399

470

569

816

1,303

Stage 2 Coverage (%)







Retail mortgages

0.2

0.1

0.1

0.1

0.2

0.6

Retail credit cards

21.3

20.8

20.9

21.1

21.8

22.4

Retail other

8.0

6.9

7.3

7.7

8.3

8.5

Corporate loans

2.4

2.4

2.4

2.5

2.7

3.0

Stage 3 Model Exposure (£m)2







Retail mortgages

1,553

1,553

1,553

1,553

1,553

1,553

Retail credit cards

1,354

1,354

1,354

1,354

1,354

1,354

Retail other

216

216

216

216

216

216

Corporate loans

2,891

2,891

2,891

2,891

2,891

2,891

Stage 3 Model ECL (£m)







Retail mortgages

332

311

317

323

347

405

Retail credit cards

880

861

871

881

893

902

Retail other

132

129

131

132

134

136

Corporate loans3

70

66

68

70

78

85

Stage 3 Coverage (%)







Retail mortgages

21.4

20.0

20.4

20.8

22.3

26.1

Retail credit cards

65.0

63.6

64.3

65.1

66.0

66.6

Retail other

61.1

59.7

60.6

61.1

62.0

63.0

Corporate loans3

2.4

2.3

2.4

2.4

2.7

2.9

Total Model ECL (£m)







Retail mortgages

372

329

338

350

401

586

Retail credit cards

3,013

2,715

2,861

3,017

3,221

3,455

Retail other

308

270

289

308

332

351

Corporate loans3

1,021

724

828

964

1,291

1,831

Total Model ECL

4,714

4,038

4,316

4,639

5,245

6,223

 

Reconciliation to total ECL

£m

Total weighted model ECL

4,714

ECL from individually assessed exposures3

434

ECL from non-modelled exposures and others

460

ECL from debt securities at amortised cost

42

ECL from post model management adjustments

525

Of which: ECL from economic uncertainty adjustments

317

Total ECL

6,175

 

1

Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach, as required for Barclays reported impairment allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage dependent on the scenario.

2

Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31 December 2022 and not on macroeconomic scenario.

3

Material corporate loan defaults are individually assessed across different recovery strategies. As a result, ECL of £434m is reported as an individually assessed impairment in the reconciliation table.

 

Analysis of specific portfolios and asset types

 

Secured home loans

 

The UK home loan portfolio primarily comprises first lien mortgages and accounts for 95% (December 2022: 93%) of the Group's total home loans balance.

 


Barclays UK

Home loans principal portfolios

As at 31.12.23

As at 31.12.22

Gross loans and advances (£m)

163,639

162,380

90 day arrears rate, excluding recovery book (%)

0.2

0.1

Annualised gross charge-off rates - 180 days past due (%)

0.5

0.5

Recovery book proportion of outstanding balances (%)

0.6

0.5

Recovery book impairment coverage ratio (%)1

7.2

5.2




Average marked to market LTV



Balance weighted %

53.6

50.4

Valuation weighted %

40.0

37.3




New lending

Year ended 31.12.23

Year ended 31.12.22

New home loan bookings (£m)

22,669

30,307

New home loan proportion > 90% LTV (%)

0.6

2.8

Average LTV on new home loans: balance weighted (%)

62.6

68.1

Average LTV on new home loans: valuation weighted (%)

53.8

59.6

 

1

Recovery Book Impairment Coverage Ratio excludes KMC.

 

Home loans principal portfolios - distribution of balances by LTV1

 


Distribution of balances

Distribution of impairment allowance

Coverage ratio


Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Total

Stage 1

Stage 2

Stage 3

Total

Barclays UK

%

%

%

%

%

%

%

%

%

%

%

%

As at 31.12.23













<=75%

73.5

10.4

0.9

84.8

8.5

16.2

26.7

51.4

-

0.2

3.8

0.1

>75% and <=90%

12.3

1.2

0.1

13.6

7.4

16.7

12.8

36.9

0.1

1.9

27.9

0.4

>90% and <=100%

1.5

0.1

-

1.6

1.2

2.5

3.6

7.3

0.1

2.6

63.3

0.6

>100%

-

-

-

-

0.3

0.7

3.4

4.4

1.0

12.1

100.0

12.4

As at 31.12.22













<=75%

78.8

10.5

0.8

90.1

10.2

30.8

33.2

74.2

-

0.2

2.9

0.1

>75% and <=90%

8.8

0.5

-

9.3

3.9

9.7

5.2

18.8

-

1.4

30.8

0.1

>90% and <=100%

0.6

-

-

0.6

0.3

0.3

2.4

3.0

-

1.5

85.0

0.4

>100%

-

-

-

-

0.1

0.6

3.3

4.0

0.4

21.4

64.9

13.1

 

1

Portfolio marked to market based on the most updated valuation including recovery book balances. Updated valuations reflect the application of the latest HPI available as at 31 December 2023.

 

New home loans bookings in 2023 decreased 25% to £22.7bn (2022: 30.3bn) and the 90 day arrears rate increased to 0.2% (2022: 0.1%), mainly driven by economic conditions that resulted in general mortgage market suppression, including higher mortgage payments as rates continued to rise and increased cost of living factors in line with inflation in 2023.

 

Head Office: Italian home loans and advances at amortised cost reduced to £3.6bn (2022: £4.5bn) and continue to run-off since new bookings ceased in 2016. The portfolio is secured on residential property with an average balance weighted mark to market LTV of 55.6% (2022: 58.8%). 90-day arrears increased to 2.4% (2022: 1.2%) due to deterioration caused by affordability stress related to rising inflation and interest rates. The gross charge-off rate was broadly stable at 0.7% (2022: 0.6%).

 

Retail credit cards and Retail other

 

The principal portfolios listed below accounted for 91% (December 2022: 87%) of the Group's total retail credit cards and retail other.

 

Principal portfolios

Gross exposure

30 day arrears rate, excluding recovery book

90 day arrears rate, excluding recovery book

Annualised gross write-off rate

Annualised net write-off rate

As at 31.12.23

£m

%

%

%

%

Barclays UK






UK cards

10,420

0.9

0.2

1.4

1.3

UK personal loans

3,641

1.5

0.6

1.3

1.0

Barclays Partner Finance

2,344

0.6

0.3

0.7

0.7

Barclays International






US cards

27,286

2.9

1.5

2.3

2.3







As at 31.12.22






Barclays UK






UK cards

9,939

0.9

0.2

3.7

3.6

UK personal loans

4,023

1.4

0.6

4.1

3.8

Barclays Partner Finance

2,612

0.5

0.2

0.7

0.7

Barclays International






US cards

25,554

2.2

1.2

2.4

2.3

German consumer finance business

4,269

1.7

0.7

0.7

0.6

 

Retail Credit Cards and Retail Other held for sale

Gross exposure

30 day arrears rate, excluding recovery book

90 day arrears rate, excluding recovery book

Annualised gross write-off rate

Annualised net write-off rate

As at 31.12.23

£m

%

%

%

%

Barclays International






German consumer finance business

4,094

1.7

0.8

1.0

1.0

 

UK cards: 30 day and 90 day arrears rates remained stable at 0.9% (2022: 0.9%) and 0.2% (2022: 0.2%) respectively. Total exposure increased from £9.9bn to £10.4bn due to growth in spend and promotional balances. Both the gross and net write off rates decreased by 2.3% driven by the impact of a strategy change in 2022 to align the point of charge off and write off in that year and lower charge off rates in 2023.

 

UK personal loans: 30 and 90 day arrears rates have remained broadly stable at 1.5% (2022: 1.4%) and 0.6% (2022: 0.6%) respectively. Both the gross and net write off rates decreased by 2.8%, driven by the impact of a strategy change in 2022 to align the point of charge off and write off in that year and by the impact of large bulk sales in 2022 which reduced the flow to write off in 2023.

 

Barclays Partner Finance: 30 and 90 day arrears rates increased marginally to 0.6% (2022: 0.5%) and 0.3% (2022: 0.2%) respectively as the weighting of lower risk customers with larger balances reduced. Total exposure fell to £2.3bn (2022: £2.6bn) due to a strategic decision to reduce the number of active partner businesses. Annualised gross and net write off rates remained stable.

 

US cards: 30 and 90 day arrears rates increased to 2.9% (2022: 2.2%) and 1.5% (2022: 1.2%) respectively due to an anticipated higher flow into and through delinquency, as rates returned to pre-pandemic levels. Write off rates remained broadly stable at 2.3%.

 

German consumer finance business: Gross exposure decreased 4% following business reprioritisation and discontinuation of Open Market loans originations. 30 and 90 day arrears rates remained stable and write-off rates increased due to the impact of accepting higher loan amount applications during 2022, which has since been discontinued.

 

Market Risk

 

Analysis of management value at risk (VaR)

 

The table below shows the total management VaR on a diversified basis by asset class. Total management VaR includes all trading positions in Barclays Bank Group and it is calculated with a one-day holding period. VaR limits are applied to total management VaR and by asset class. Additionally, the market risk management function applies VaR sub-limits to material businesses and trading desks.

 

Management VaR (95%) by asset class

 


Year ended 31.12.23


Year ended 31.12.22


Average

High

Low


Average

High

Low


£m

£m

£m


£m

£m

£m

Credit risk

40

57

22


25

71

8

Interest rate risk

15

25

9


13

23

4

Equity risk

6

10

3


10

29

4

Basis risk

13

25

8


12

24

4

Spread risk

9

14

5


7

11

3

Foreign exchange risk

4

9

1


8

25

2

Commodity risk

-

1

-


-

1

-

Inflation risk

6

11

2


6

17

3

Diversification effect1

(51)




(45)



Total management VaR

42

60

24


36

73

13

 

1

Diversification effects recognise that forecast losses from different assets or businesses are unlikely to occur concurrently, hence the expected aggregate loss is lower than the sum of the expected losses from each area. Historical correlations between losses are taken into account in making these assessments. The high and low VaR figures reported for each category did not necessarily occur on the same day as the high and low VaR reported as a whole. Consequently, a diversification effect balance for the high and low VaR figures would not be meaningful and is therefore omitted from the above table.

 

Average Management VaR increased 17% to £42m (2022: £36m) and the range narrowed. The increase was driven by the impact of funded, fair value leverage loan exposure in Investment Banking since Q4 2022, partially offset by lower market volatility and credit spread levels in 2023 as geopolitical tensions eased, relative to 2022, inflation declined and the pace of interest rate rises moderated. Management VaR declined in 2023 from a high of £73m in November 2022, driven by a reduction in the size of the funded, fair value leverage loan exposure in Investment Banking.

 

Treasury and Capital Risk

 

The Group has established a comprehensive set of policies, standards and controls for managing its liquidity risk; together these set out the requirements for Barclays' liquidity risk framework. The liquidity risk framework meets the PRA standards and enables Barclays to maintain liquidity resources that are sufficient in amount and quality, and a funding profile that is appropriate to meet the Group's Liquidity Risk Appetite. The liquidity risk framework is delivered via a combination of policy formation, review and challenge, governance, analysis, stress testing, limit setting and monitoring.

 

Liquidity risk stress testing

 

The Internal Liquidity Stress Tests (ILST) measure the potential contractual and contingent stress outflows under a range of scenarios, which are then used to determine the size of the liquidity pool that is immediately available to meet anticipated outflows if a stress occurs. The short-term scenarios include a 30 day Barclays-specific stress event, a 90 day market-wide stress event and a 30 day combined scenario consisting of both a Barclays specific and market-wide stress event. The Group also runs a liquidity stress test which measures the anticipated outflows over a 12 month market-wide scenario.

 

The LCR requirement takes into account the relative stability of different sources of funding and potential incremental funding requirements in a stress. The LCR is designed to promote short-term resilience of a bank's liquidity risk profile by holding sufficient high quality liquid assets to survive an acute stress scenario lasting for 30 days.

 

As at 31 December 2023 the average LCR was 161% (December 2022: 156%). The Group held eligible liquid assets in excess of 100% of net stress outflows as measured according to both its internal ILST and external regulatory requirements.

 

Liquidity coverage ratio1

As at 31.12.23

As at 31.12.22


£bn

£bn

LCR Eligible High Quality Liquid Assets (HQLA)

310

320

Net stress outflows

192

206

Surplus

118

114




Liquidity coverage ratio

161%

156%

 

1

Liquidity Coverage Ratio is now shown on an average basis, based on the average of the last 12 spot month end ratios. The HQLA, Net Stress outflow, and Surplus balances in the table above are average month end balances for the past 12 months. Prior period HQLA, Net Stress Outflows, Surplus & LCR comparatives have been updated for consistency.

 

Net Stable Funding Ratio

 

The external NSFR metric requires banks to maintain a stable funding profile taking into account both on and certain off balance sheet exposures over a medium to long term period. The ratio is defined as the Available Stable Funding (capital and certain liabilities which are treated as stable sources of funding) relative to the Required Stable Funding (a measure of assets on the balance sheet and certain off balance sheet exposures which may require longer term funding). The NSFR (average of last four quarter ends) as at 31 December 2023 was 138%, which was a surplus above requirements of £167bn.

 

Net Stable Funding Ratio1

As at 31.12.23

As at 31.12.22


£bn

£bn

Total Available Stable Funding

607

576

Total Required Stable Funding

440

421

Surplus

167

155




Net Stable Funding Ratio

138%

137%

 

1

Represents average of the last four spot quarter end ratios.

 

As part of the liquidity risk appetite, Barclays establishes minimum LCR, NSFR and internal liquidity stress test limits. The Group plans to maintain its surplus to the internal and regulatory requirements at an efficient level. Risks to market funding conditions, the Group's liquidity position and funding profile are assessed continuously, and actions are taken to manage the size of the liquidity pool and the funding profile as appropriate.

 

Composition of the Group liquidity pool









LCR eligible1 High Quality Liquid Assets (HQLA)


Liquidity pool


Cash

Level 1

Level 2A

Level 2B

Total


2023

2022


£bn

£bn

£bn

£bn

£bn


£bn

£bn

Cash and deposits with central banks2

211

-

-

-

211


232

263










Government bonds3









AAA to AA-

-

40

5

-

45


48

39

A+ to A-

-

1

1

-

2


1

3

BBB+ to BBB-

-

1

-

-

1


1

-

Total government bonds

-

42

6

-

48


50

42










Other









Government Guaranteed Issuers, PSEs and GSEs

-

4

-

-

4


5

6

International Organisations and MDBs

-

3

-

-

3


3

2

Covered bonds

-

3

3

-

6


7

5

Other

-

-

-

2

2


1

-

Total other

-

10

3

2

15


16

13










Total as at 31 December 2023

211

52

9

2

274


298


Total as at 31 December 2022

248

31

15

1

295



318

 

1

The LCR eligible HQLA is adjusted for operational restrictions upon consolidation under Article 8 of the Liquidity Coverage Ratio section of the PRA rulebook (CRR) such as trapped liquidity within Barclays subsidiaries. It also reflects differences in eligibility of assets between the LCR and Barclays' Liquidity Pool.

2

Includes cash held at central banks and surplus cash at central banks related to payment schemes. Over 99% (December 2022: over 99%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.

3

Of which over 80% (December 2022: over 79%) comprised UK, US, French, German, Japanese, Swiss and Dutch securities.

 

The Group liquidity pool decreased to £298bn as at December 2023 (December 2022: £318bn) driven by a reduction in wholesale funding, a slight reduction in overall deposits, with a decrease in Barclays UK deposits being largely offset by growth in Corporate Bank deposits, and changes in business funding consumption.

 

In 2023, the month-end liquidity pool ranged from £298bn to £342bn (2022: £309bn to £359bn), and the month-end average balance was £328bn (2022: £331bn). The liquidity pool is held unencumbered and represents readily accessible funds to meet potential cash outflows during stress periods.

 

As at 31 December 2023, 59% (December 2022: 60%) of the liquidity pool was located in Barclays Bank PLC, 22% (December 2022: 25%) in Barclays Bank UK PLC and 11% (December 2022: 9%) in Barclays Bank Ireland PLC. The residual portion of the liquidity pool is held outside of these entities, predominantly in US subsidiaries, to meet entity-specific stress outflows and local regulatory requirements. To the extent the use of this residual portion of the liquidity pool is restricted due to local regulatory requirements, it is assumed to be unavailable to the rest of the Group in calculating the LCR.

 

The composition of the pool is subject to limits set by the Board and the independent liquidity risk, credit risk and market risk functions. In addition, the investment of the liquidity pool is monitored for concentration by issuer, currency and asset type. Given returns generated by these highly liquid assets, the risk and reward profile is continuously managed.

 

Deposit funding

 


As at 31.12.23


As at 31.12.22


Loans and advances, debt securities at amortised cost

Deposits at amortised cost

Loan: deposit ratio1


Loan: deposit ratio1

Funding of loans and advances

£bn

£bn

%


%

Barclays UK

221

241

92


87

Barclays International

174

298

58


59

Head Office

4





Barclays Group

399

539

74


73

 

1

The loan: deposit ratio is calculated as loans and advances at amortised cost and debt securities at amortised cost divided by deposits at amortised cost.

 

Funding structure and funding relationships

 

The basis for liquidity risk management is a funding structure that reduces the probability of a liquidity stress leading to an inability to meet funding obligations as they fall due. The Group's overall funding strategy is to develop a diversified funding base (geographically, by type and by counterparty) and maintain access to a variety of alternative funding sources, to provide protection against unexpected fluctuations, while minimising the cost of funding.

 

Within this, the Group aims to align the sources and uses of funding. As such, retail and corporate loans and advances are largely funded by deposits in the relevant entities, with the surplus primarily funding the liquidity pool. The majority of reverse repurchase agreements are matched by repurchase agreements. Derivative liabilities and assets are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and the remaining portions are largely offset when netted against cash collateral received and paid. Wholesale debt and equity is used to fund residual assets.

 

These funding relationships as at 31 December 2023 are summarised below:

 


As at 31.12.23

As at 31.12.22



As at 31.12.23

As at 31.12.22

Assets

£bn

£bn


Liabilities and equity

£bn

£bn

Loans and advances at amortised cost1

385


Deposits at amortised cost

546

Group liquidity pool

318


<1 Year wholesale funding

73





>1 Year wholesale funding

111

Reverse repurchase agreements, trading portfolio assets, cash collateral and settlement balances

435

412


Repurchase agreements, trading portfolio liabilities, cash collateral and settlement balances

380

370

Derivative financial instruments

302


Derivative financial instruments

290

Other assets2

97


Other liabilities

55





Equity

72

69

Total assets

1,514


Total liabilities and equity

1,514

 

1

Adjusted for liquidity pool debt securities reported at amortised cost of £18bn (December 2022: £14bn).

2

Other assets include fair value assets that are not part of reverse repurchase agreements or trading portfolio assets, and other asset categories.

 

Composition of wholesale funding

 

Wholesale funding outstanding (excluding repurchase agreements) was £176.8bn (December 2022: £184.0bn). In 2023, the Group issued £14.1bn of MREL eligible instruments from Barclays PLC (the Parent company) in a range of tenors and currencies.

 

Our operating companies also access wholesale funding markets to maintain their stable and diversified funding bases. Barclays Bank PLC continued to issue in the shorter-term and medium-term notes markets. In addition, Barclays Bank UK PLC continued to issue in the shorter-term markets and maintains active secured funding programmes.

 

Wholesale funding of £58.6bn (December 2022: £72.5bn) matures in less than one year, representing 33% (December 2022: 39%) of total wholesale funding outstanding. This includes £18.7bn (December 2022: £15.0bn) related to term funding1.

 

Maturity profile of wholesale funding1,2

 


<1

1-3

3-6

6-12

<1

1-2

2-3

3-4

4-5

>5



month

months

months

months

year

years

years

years

years

years

Total


£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Barclays PLC (the Parent company)












Senior unsecured (public benchmark)

1.2

-

0.3

-

1.5

5.5

9.7

5.9

4.7

20.0

47.3

Senior unsecured (privately placed)

-

-

-

-

-

-

-

-

-

1.0

1.0

Subordinated liabilities

-

-

-

0.4

0.4

-

1.5

-

1.5

5.8

9.2

Barclays Bank PLC (including subsidiaries)












Certificates of deposit and commercial paper

0.6

9.7

8.6

7.5

26.4

1.3

-

-

-

-

27.7

Asset backed commercial paper

2.4

8.2

1.0

-

11.6

-

-

-

-

-

11.6

Senior unsecured (public benchmark)

-

-

1.0

-

1.0

-

-

-

-

-

1.0

Senior unsecured (privately placed)3

1.4

1.6

2.9

8.5

14.4

12.1

8.4

5.2

7.0

21.1

68.2

Asset backed securities

-

-

0.1

1.0

1.1

1.2

0.5

-

0.1

3.1

6.0

Subordinated liabilities

-

0.1

-

0.2

0.3

0.2

0.3

0.1

-

0.4

1.3

Barclays Bank UK PLC (including subsidiaries)












Certificates of deposit and commercial paper

1.9

-

-

-

1.9

-

-

-

-

-

1.9

Senior unsecured (public benchmark)

-

-

-

-

-

-

-

-

-

0.2

0.2

Covered bonds

-

-

-

-

-

-

-

0.5

0.2

0.7

1.4

Total as at 31 December 2023

7.5

19.6

13.9

17.6

58.6

20.3

20.4

11.7

13.5

52.3

176.8

Of which secured

2.4

8.2

1.1

1.0

12.7

1.2

0.5

0.5

0.3

3.8

19.0

Of which unsecured

5.1

11.4

12.8

16.6

45.9

19.1

19.9

11.2

13.2

48.5

157.8













Total as at 31 December 2022

11.1

26.5

16.4

18.5

72.5

22.4

16.9

14.5

9.7

48.0

184.0

Of which secured

4.9

6.7

1.3

0.2

13.1

1.8

0.7

0.5

1.0

2.1

19.2

Of which unsecured

6.2

19.8

15.1

18.3

59.4

20.6

16.2

14.0

8.7

45.9

164.8

 

1

The composition of wholesale funds comprises the balance sheet reported financial liabilities at fair value, debt securities in issue and subordinated liabilities. It does not include participation in the central bank facilities reported within repurchase agreements and other similar secured borrowing.

2

Term funding comprises public benchmark and privately placed senior unsecured notes, covered bonds, asset-backed securities and subordinated debt where the original maturity of the instrument is more than 1 year.

3

Includes structured notes of £54.7bn, of which £11.5bn matures within one year.

 

Regulatory minimum requirements

 

Capital

 

The Group's Overall Capital Requirement for CET1 increased to 12.0%, following the latest PRA Individual Capital Requirement (ICR) notice and comprises a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.6% Pillar 2A requirement and a 0.9% Countercyclical Capital Buffer (CCyB).

 

The Group's CCyB is based on the buffer rate applicable for each jurisdiction in which the Group has exposures. Following the Financial Policy Committee (FPC) announcement on 5 July 2022, the UK CCyB increased from 1% to 2% with effect from 5 July 2023. The buffer rates set by other national authorities for non-UK exposures are not currently material.

 

The Group's updated Pillar 2A requirement increased by 25bps to 4.6% of which at least 56.25% needs to be met with CET1 capital, equating to 2.6% of RWAs. The Pillar 2A requirement, based on a point in time assessment, has been set as a proportion of RWAs and is subject to at least annual review.

 

The Group's CET1 target ratio of 13-14% takes into account headroom above requirements which includes a confidential institution-specific PRA buffer. The Group remains above its minimum capital regulatory requirements including the PRA buffer.

 

Leverage

 

The Group is subject to a UK leverage ratio requirement of 4.1%. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer (CCLB) of 0.3%. The Group is also required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter.

 

MREL

 

The Group is required to meet the higher of: (i) two times the sum of 8% Pillar 1 and 4.6% Pillar 2A equating to 25.2% of RWAs; and (ii) 6.75% of leverage exposures. In addition, the higher of regulatory capital and leverage buffers apply. CET1 capital cannot be counted towards both MREL and the buffers, meaning that the buffers, including the above mentioned confidential institution-specific PRA buffer, will effectively be applied above MREL requirements.

 

In the disclosures that follow, references to CRR, as amended by CRR II, mean the capital regulatory requirements, as they form part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.

 

Capital ratios1,2

As at 31.12.23

As at 30.09.23

As at 31.12.22

CET1

13.8%

14.0%

13.9%

T1

17.7%

17.5%

17.9%

Total regulatory capital

20.1%

20.0%

20.8%

MREL ratio as a percentage of total RWAs

33.6%

33.4%

33.5%





Own funds and eligible liabilities

£m

£m

£m

Total equity excluding non-controlling interests per the balance sheet

71,204

68,315

68,292

Less: other equity instruments (recognised as AT1 capital)

(13,259)

(11,857)

(13,284)

Adjustment to retained earnings for foreseeable ordinary share dividends

(795)

(497)

(787)

Adjustment to retained earnings for foreseeable repurchase of shares

-

(223)

-

Adjustment to retained earnings for foreseeable other equity coupons

(43)

(45)

(37)





Other regulatory adjustments and deductions




Additional value adjustments (PVA)

(1,901)

(1,630)

(1,726)

Goodwill and intangible assets

(7,790)

(8,243)

(8,224)

Deferred tax assets that rely on future profitability excluding temporary differences

(1,630)

(1,480)

(1,500)

Fair value reserves related to gains or losses on cash flow hedges

3,707

6,421

7,237

Excess of expected losses over impairment

(296)

(292)

(119)

Gains or losses on liabilities at fair value resulting from own credit

136

(142)

(620)

Defined benefit pension fund assets

(2,654)

(2,960)

(3,430)

Direct and indirect holdings by an institution of own CET1 instruments

(20)

(20)

(20)

Adjustment under IFRS 9 transitional arrangements

288

290

700

Other regulatory adjustments

357

321

396

CET1 capital

47,304

47,958

46,878





AT1 capital




Capital instruments and related share premium accounts

13,263

11,857

13,284

Other regulatory adjustments and deductions

(60)

(60)

(60)

AT1 capital

13,203

11,797

13,224





T1 capital

60,507

59,755

60,102





T2 capital




Capital instruments and related share premium accounts

7,966

8,126

9,000

Qualifying T2 capital (including minority interests) issued by subsidiaries

569

757

1,095

Credit risk adjustments (excess of impairment over expected losses)

-

58

35

Other regulatory adjustments and deductions

(160)

(160)

(160)

Total regulatory capital

68,882

68,536

70,072





Less : Ineligible T2 capital (including minority interests) issued by subsidiaries

(569)

(757)

(1,095)

Eligible liabilities

46,995

46,477

43,851





Total own funds and eligible liabilities3

115,308

114,256

112,828





Total RWAs

342,717

341,868

336,518

 

1

CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR II non-compliant capital instruments.

2

The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC AT1 securities, was 13.7%, with £47.0bn of CET1 capital and £342.7bn of RWAs calculated without applying the transitional arrangements of the CRR as amended by CRR II.

3

As at 31 December 2023, the Group's MREL requirement, excluding the PRA buffer, was to hold £103.0bn of own funds and eligible liabilities equating to 30.1% of RWAs. The Group remains above its MREL regulatory requirement including the PRA buffer.

 

Movement in CET1 capital

Three months ended 31.12.23

Twelve months ended 31.12.23


£m

£m

Opening CET1 capital

47,958

46,878




Profit for the period attributable to equity holders

108

5,259

Own credit relating to derivative liabilities

41

49

Ordinary share dividends paid and foreseen

(298)

(1,218)

Purchased and foreseeable share repurchase

-

(1,250)

Other equity coupons paid and foreseen

(217)

(991)

(Decrease)/increase in retained regulatory capital generated from earnings

(366)

1,849




Net impact of share schemes

140

104

Fair value through other comprehensive income reserve

276

194

Currency translation reserve

(738)

(1,101)

Other reserves

(6)

(42)

Decrease in other qualifying reserves

(328)

(845)




Pension remeasurements within reserves

(328)

(855)

Defined benefit pension fund asset deduction

306

776

Net impact of pensions

(22)

(79)




Additional value adjustments (PVA)

(271)

(175)

Goodwill and intangible assets

453

434

Deferred tax assets that rely on future profitability excluding those arising from temporary differences

(150)

(130)

Excess of expected loss over impairment

(4)

(177)

Adjustment under IFRS 9 transitional arrangements

(2)

(412)

Other regulatory adjustments

36

(39)

Increase/(decrease) in regulatory capital due to adjustments and deductions

62

(499)




Closing CET1 capital

47,304

47,304

 

CET1 capital increased £0.4bn to £47.3bn (December 2022: £46.9bn).

 

£5.3bn of capital generated from profit, including the impacts of structural cost actions, was partially offset by distributions of £3.5bn comprising:

 

•£1.25bn of share buybacks announced with FY22 and H123 results

•£1.2bn of ordinary share dividend paid and foreseen reflecting £0.4bn interim dividend paid and a £0.8bn accrual towards the FY23 dividend

•£1.0bn of equity coupons paid and foreseen

 

Other significant movements in the period were:

 

•£1.1bn decrease in the currency translation reserve driven by the strengthening of GBP against USD

•£0.4bn decrease in IFRS 9 transitional relief primarily due to the relief applied to the pre-2020 impairment charge reducing to 0% in 2023 from 25% in 2022 and the relief applied to the post-2020 impairment charge reducing to 50% in 2023 from 75% in 2022

•£0.2bn increase in PVA, which includes an increase for price uncertainty within corporate loans, including the leveraged finance loan portfolio

•£0.4bn increase primarily driven by intangible impairment structural cost actions. The impact of this was capital neutral with the offsetting decrease within attributable profit.

 

RWAs by risk type and business


Credit risk1


Counterparty credit risk


Market Risk


Operational risk

Total RWAs


STD

IRB


STD

IRB

Settlement Risk

CVA


STD

IMA




As at 31.12.23

£m

£m


£m

£m

£m

£m


£m

£m


£m

£m

Barclays UK

10,472

50,761


178

-

-

94


274

-


11,715

73,494

Corporate and Investment Bank

40,315

65,499


18,775

22,033

159

3,260


14,625

25,222


26,887

216,775

Consumer, Cards and Payments

28,218

5,515


182

55

-

38


2

638


7,631

42,279

Barclays International

68,533

71,014


18,957

22,088

159

3,298


14,627

25,860


34,518

259,054

Head Office

3,881

6,963


-

-

-

-


-

-


(675)

10,169

Barclays Group

82,886

128,738


19,135

22,088

159

3,392


14,901

25,860


45,558

342,717

As at 30.09.231














Barclays UK

11,731

49,928


160

-

-

90


215

-


11,054

73,178

Corporate and Investment Bank

38,869

69,467


17,983

21,784

123

3,108


17,542

23,253


27,093

219,222

Consumer, Cards and Payments

28,613

3,987


191

51

-

42


2

535


6,527

39,948

Barclays International

67,482

73,454


18,174

21,835

123

3,150


17,544

23,788


33,620

259,170

Head Office

4,116

6,213


-

-

-

-


-

-


(809)

9,520

Barclays Group

83,329

129,595


18,334

21,835

123

3,240


17,759

23,788


43,865

341,868

As at 31.12.22














Barclays UK

6,836

54,752


167

-

-

72


233

-


11,023

73,083

Corporate and Investment Bank

35,738

75,413


16,814

21,449

80

3,093


13,716

22,497


27,064

215,864

Consumer, Cards and Payments

27,882

3,773


214

46

-

61


-

388


6,559

38,923

Barclays International

63,620

79,186


17,028

21,495

80

3,154


13,716

22,885


33,623

254,787

Head Office

2,636

6,843


-

-

-

-


-

-


(831)

8,648

Barclays Group

73,092

140,781


17,195

21,495

80

3,226


13,949

22,885


43,815

336,518

 

1

From Q323 credit risk RWAs of £9.8bn relating to deferred tax assets, have been reclassified from IRB to STD with no impact to total RWAs.

 

Movement analysis of RWAs

Credit risk

Counterparty credit risk

Market risk

Operational risk

Total RWAs


£m

£m

£m

£m

£m

Opening RWAs (as at 31.12.22)

213,873

41,996

36,834

43,815

336,518

Book size

(1,338)

2,122

3,325

1,743

5,852

Acquisitions and disposals

688

-

-

-

688

Book quality

1,512

(136)

-

-

1,376

Model updates

(2,600)

-

1,200

-

(1,400)

Methodology and policy

5,175

2,700

-

-

7,875

Foreign exchange movements1

(5,686)

(1,908)

(598)

-

(8,192)

Total RWA movements

(2,249)

2,778

3,927

1,743

6,199

Closing RWAs (as at 31.12.23)

211,624

44,774

40,761

45,558

342,717

 

1

Foreign exchange movements does not include the impact of foreign exchange for modelled market risk or operational risk

 

 

Overall RWAs increased £6.2bn to £342.7bn (December 2022: £336.5bn).

 

Credit risk RWAs decreased £2.2bn:

 

•A £1.3bn decrease in book size within CIB and mortgages within Barclays UK, partially offset by higher credit card balances within CC&P

•A £1.5bn increase in book quality RWAs primarily driven by changes in risk parameters and HPI refresh within Barclays UK

•A £2.6bn decrease in model updates primarily driven by capital LGD model update for the mortgage portfolio to reflect the significant decrease in repossession volume during and post the COVID pandemic

•A £5.2bn increase in methodology and policy primarily driven by the recalibration of the post model adjustment (PMA) introduced to address the IRB roadmap changes and a change in treatment of non-credit obligation exposures

•A £5.7bn decrease as a result of foreign exchange movements primarily due to the strengthening of GBP against USD

 

Counterparty Credit risk RWAs increased £2.8bn:

 

•A £2.1bn increase in book size primarily due to increased trading activity within CIB

•A £2.7bn increase in methodology and policy due to a recalibration of the PMA introduced to address the IRB roadmap changes and a change in treatment of certain securities financing transactions collateral

•A £1.9bn decrease as a result of foreign exchange movements primarily due to the strengthening of GBP against USD

Market risk RWAs increased £3.9bn:

•A £3.3bn increase in book size primarily due to increased trading activity within CIB

•A £1.2bn increase in model updates to capture incremental risk arising from Stressed Value at Risk (SVaR), measured on a 10-day basis

 

Operational risk RWAs increase £1.7bn:

 

•A £1.7bn increase in book size primarily driven by the inclusion of higher 2023 CC&P and Barclays UK income compared to 2020

 

Leverage ratios1,2

As at 31.12.23

As at 30.09.23

As at 31.12.22

£m

£m

£m

UK leverage ratio3

5.2%

5.0%

5.3%

T1 capital

60,507

59,755

60,102

UK leverage exposure

1,168,275

1,202,417

1,129,973

Average UK leverage ratio

4.8%

4.6%

4.8%

Average T1 capital

60,343

58,661

60,865

Average UK leverage exposure

1,266,880

1,262,290

1,280,972

 

1

Capital and leverage measures are calculated applying the transitional arrangements of the CRR as amended by CRR II.

2

Fully loaded UK leverage ratio was 5.2%, with £60.2bn of T1 capital and £1,168.0bn of leverage exposure. Fully loaded average UK leverage ratio was 4.7% with £60.0bn of T1 capital and £1,266.6bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements of the CRR as amended by CRR II.

3

Although the leverage ratio is expressed in terms of T1 capital, the leverage ratio buffers and 75% of the minimum requirement must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.1bn and against the 0.3% CCLB was £3.5bn.

 

The UK leverage ratio decreased to 5.2% (December 2022: 5.3%) primarily due to a £38.3bn increase in leverage exposure to £1,168.3bn, largely driven by an increase in trading portfolio assets within Global Markets.

 

Condensed Consolidated Financial Statements

 

Condensed consolidated income statement


Year ended 31.12.23

Year ended 31.12.22


£m

£m

Interest and similar income

35,075

19,096

Interest and similar expense

(22,366)

(8,524)

Net interest income

12,709

10,572

Fee and commission income

10,121

9,637

Fee and commission expense

(3,592)

(3,038)

Net fee and commission income

6,529

6,599

Net trading income

5,945

8,049

Net investment income

61

(434)

Other income

134

170

Total income

25,378

24,956




Staff costs

(10,017)

(9,252)

Infrastructure, administration and general expenses

(6,877)

(5,881)

Litigation and conduct

(37)

(1,597)

Operating expenses

(16,931)

(16,730)




Share of post-tax results of associates and joint ventures

(9)

6

Profit before impairment

8,438

8,232

Credit impairment charges

(1,881)

(1,220)

Profit before tax

6,557

7,012

Tax charge

(1,234)

(1,039)

Profit after tax

5,323

5,973




Attributable to:



Equity holders of the parent

4,274

5,023

Other equity instrument holders

985

905

Total equity holders of the parent

5,259

5,928

Non-controlling interests

64

45

Profit after tax

5,323

5,973




Earnings per share



Basic earnings per ordinary share

27.7p

30.8p

Diluted earnings per ordinary share

26.9p

29.8p

 

Condensed consolidated statement of comprehensive income


Year ended 31.12.23

Year ended 31.12.22


£m

£m

Profit after tax

5,323

5,973




Other comprehensive income/(loss) that may be recycled to profit or loss:1



Currency translation reserve

(1,101)

2,032

Fair value through other comprehensive income reserve

197

(1,421)

Cash flow hedging reserve

3,528

(6,382)

Other comprehensive income/(loss) that may be recycled to profit

2,624

(5,771)




Other comprehensive (loss)/income not recycled to profit or loss:1



Retirement benefit remeasurements

(855)

(281)

Fair value through other comprehensive income reserve

(3)

228

Own credit

(710)

1,463

Other comprehensive (loss)/income not recycled to profit

(1,568)

1,410




Other comprehensive income/(loss) for the period

1,056

(4,361)




Total comprehensive income for the period

6,379

1,612




Attributable to:



Equity holders of the parent

6,315

1,567

Non-controlling interests

64

45

Total comprehensive income for the period

6,379

1,612

 

1

Reported net of tax.

 

Condensed consolidated balance sheet


As at 31.12.23

As at 31.12.22

Assets

£m

£m

Cash and balances at central banks

224,634

256,351

Cash collateral and settlement balances

108,889

112,597

Debt securities at amortised cost

56,749

45,487

Loans and advances at amortised cost to banks

9,459

10,015

Loans and advances at amortised cost to customers

333,288

343,277

Reverse repurchase agreements and other similar secured lending at amortised cost

2,594

776

Trading portfolio assets

174,605

133,813

Financial assets at fair value through the income statement

206,651

213,568

Derivative financial instruments

256,836

302,380

Financial assets at fair value through other comprehensive income

71,836

65,062

Investments in associates and joint ventures

879

922

Goodwill and intangible assets

7,794

8,239

Property, plant and equipment

3,417

3,616

Current tax assets

121

385

Deferred tax assets

5,960

6,991

Retirement benefit assets

3,667

4,743

Assets included in a disposal group classified as held for sale

3,916

-

Other assets

6,192

5,477

Total assets

1,477,487

1,513,699




Liabilities



Deposits at amortised cost from banks

14,472

19,979

Deposits at amortised cost from customers

524,317

525,803

Cash collateral and settlement balances

94,084

96,927

Repurchase agreements and other similar secured borrowings at amortised cost

41,601

27,052

Debt securities in issue

96,825

112,881

Subordinated liabilities

10,494

11,423

Trading portfolio liabilities

58,669

72,924

Financial liabilities designated at fair value

297,539

271,637

Derivative financial instruments

250,044

289,620

Current tax liabilities

529

580

Deferred tax liabilities

22

16

Retirement benefit liabilities

266

264

Provisions

1,584

1,544

Liabilities included in a disposal group classified as held for sale

3,164

-

Other liabilities

12,013

13,789

Total liabilities

1,405,623

1,444,439




Equity



Called up share capital and share premium

4,288

4,373

Other reserves

(77)

(2,192)

Retained earnings

53,734

52,827

Shareholders' equity attributable to ordinary shareholders of the parent

57,945

55,008

Other equity instruments

13,259

13,284

Total equity excluding non-controlling interests

71,204

68,292

Non-controlling interests

660

968

Total equity

71,864

69,260




Total liabilities and equity

1,477,487

1,513,699

 

Condensed consolidated statement of changes in equity


Called up share capital and share premium1,2

Other equity instruments3

Other reserves4

 

 

Retained earnings

 

 

Total

Non-controlling interests

 

Total equity

Year ended 31.12.23

£m

£m

£m

£m

£m

£m

£m

Balance as at 1 January 2023

4,373

13,284

(2,192)

52,827

68,292

968

69,260

Profit after tax

-

985

-

4,274

5,259

64

5,323

Currency translation movements

-

-

(1,101)

-

(1,101)

-

(1,101)

Fair value through other comprehensive income reserve

-

-

194

-

194

-

194

Cash flow hedges

-

-

3,528

-

3,528

-

3,528

Retirement benefit remeasurements

-

-

-

(855)

(855)

-

(855)

Own credit

-

-

(710)

-

(710)

-

(710)

Total comprehensive income for the period

-

985

1,911

3,419

6,315

64

6,379

Employee share schemes and hedging thereof

124

-

-

497

621

-

621

Issue and redemption of other equity instruments

-

(30)

-

(38)

(68)

(312)

(380)

Other equity instruments coupons paid

-

(985)

-

-

(985)

-

(985)

Vesting of employee share schemes

-

-

(8)

(506)

(514)

-

(514)

Dividends paid

-

-

-

(1,210)

(1,210)

(64)

(1,274)

Repurchase of shares

(209)

-

209

(1,257)

(1,257)

-

(1,257)

Other movements

-

5

3

2

10

4

14

Balance as at 31 December 2023

4,288

13,259

(77)

53,734

71,204

660

71,864

 

Year ended 31.12.22

£m

£m

£m

£m

£m

£m

£m

Balance as at 1 January 2022

4,536

12,259

1,770

50,487

69,052

989

70,041

Profit after tax

-

905

-

5,023

5,928

45

5,973

Currency translation movements

-

-

2,032

-

2,032

-

2,032

Fair value through other comprehensive income reserve

-

-

(1,193)

-

(1,193)

-

(1,193)

Cash flow hedges

-

-

(6,382)

-

(6,382)

-

(6,382)

Retirement benefit remeasurements

-

-

-

(281)

(281)

-

(281)

Own credit

-

-

1,463

-

1,463

-

1,463

Total comprehensive income for the period

-

905

(4,080)

4,742

1,567

45

1,612

Employee share schemes and hedging thereof

70

-

-

476

546

-

546

Issue and redemption of other equity instruments

-

1,032

-

28

1,060

(20)

1,040

Other equity instruments coupons paid

-

(905)

-

-

(905)

-

(905)

Disposal of Absa holding

-

-

(84)

84

-

-

-

Vesting of employee share schemes

-

-

5

(485)

(480)

-

(480)

Dividends paid

-

-

-

(1,028)

(1,028)

(45)

(1,073)

Repurchase of shares

(233)

-

233

(1,508)

(1,508)

-

(1,508)

Own credit realisation

-

-

(36)

36

-

-

-

Other movements

-

(7)

-

(5)

(12)

(1)

(13)

Balance as at 31 December 2022

4,373

13,284

(2,192)

52,827

68,292

968

69,260

 

1

As at 31 December 2023, Called up share capital comprises 15,155m (December 2022: 15,871m) ordinary shares of 25p each.

2

For the period ended 31 December 2023, Barclays PLC executed two share buy-backs totalling £1250m. Accordingly, it repurchased and cancelled 837m shares. The nominal value of £209m has been transferred from Share capital to Capital redemption reserve within Other reserves. For the year ended 31 December 2022, two share buybacks were executed, totalling £1,500m. Accordingly, Barclays PLC repurchased and cancelled 931m shares. The nominal value of £233m was transferred from Share capital to Capital redemption reserve within Other reserves.

3

Other equity instruments of £13,259m (December 2022: £13,284m) comprise AT1 securities issued by Barclays PLC. There were three issuances in the form of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities for £3,140m (net of £10m issuance costs) and two redemption of £3,170m (net of £11m issuance costs, transferred to retained earnings on redemption) for the period ended 31 December 2023. During the period ended 31 December 2022, there were three issuances in the form of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, for £3,158m, which includes issuance costs of £9m and two redemptions totalling £2,126m.

4

See Note 10 Other reserves.

 

Condensed consolidated cash flow statement


Year ended 31.12.23

Year ended 31.12.22


£m

£m

Profit before tax

6,557

7,012

Adjustment for non-cash items

15,250

(8,514)

Net decrease/(increase) in loans and advances at amortised cost

10,947

(24,949)

Net (decrease)/increase in deposits at amortised cost

(6,958)

26,349

Net (decrease)/increase in debt securities in issue

(19,640)

9,210

Changes in other operating assets and liabilities

(6,247)

21,811

Corporate income tax paid

(836)

(688)

Net cash from operating activities

(927)

30,231

Net cash from investing activities

(23,414)

(21,673)

Net cash from financing activities1

(1,389)

696

Effect of exchange rates on cash and cash equivalents

(5,053)

10,330

Net (decrease)/increase in cash and cash equivalents

(30,783)

19,584

Cash and cash equivalents at beginning of the period

278,790

259,206

Cash and cash equivalents at end of the period

248,007

278,790

 

1

Issuance and redemption of debt securities included in financing activities relate to instruments that qualify as eligible liabilities and satisfy regulatory requirements for MREL instruments which came into effect during 2019.

 

Financial Statement Notes

 

1.Tax

 

The tax charge for 2023 was £1,234m (2022: £1,039m), representing an effective tax rate (ETR) of 18.8% (2022: 14.8%). Included in the 2023 tax charge is a credit in respect of payments made on AT1 instruments that are classified as equity for accounting purposes and tax relief on holdings of inflation-linked government bonds.

 


As at 31.12.23

As at 31.12.22

Deferred tax assets and liabilities

£m

£m

UK

4,081

4,925

USA

1,359

1,576

Other territories

520

490

Deferred tax assets

5,960

6,991

Deferred tax liabilities

(22)

(16)




Analysis of deferred tax assets



Temporary differences

4,212

5,345

Tax losses

1,748

1,646

Deferred tax assets

5,960

6,991

 

 

2.Earnings per share

 


Year ended 31.12.23

Year ended 31.12.22


£m

£m

Profit attributable to ordinary equity holders of the parent

4,274

5,023





m

m

Basic weighted average number of shares in issue

15,445

16,333

Number of potential ordinary shares

450

534

Diluted weighted average number of shares

15,895

16,867





p

p

Basic earnings per ordinary share

27.7

30.8

Diluted earnings per ordinary share

26.9

29.8

 

 

3.Dividends on ordinary shares

 

It is Barclays' policy to declare and pay dividends on a semi-annual basis. The 2023 full year dividend of 5.3p per ordinary share will be paid on 3 April 2024 to the shareholders on the Share Register on 1 March 2024. A half year dividend for 2023 of 2.7p (H122: 2.25p) per ordinary share was paid on 15 September 2023.

 


Year ended 31.12.23

Year ended 31.12.22


Per share

Total

Per share

Total

Dividends paid during the period

p

£m

p

£m

Full year dividend paid during period

5.00

793

4.00

664

Interim dividend paid during the period

2.70

417

2.25

364

Total dividend

7.70

1,210

6.25

1,028

 

The Directors have confirmed their intention to initiate a share buyback of up to £1.0bn after the balance sheet date. The proposed share buyback is expected to commence in the first quarter of 2024. The financial statements for the year ended 31 December 2023 do not reflect the impact of the proposed share buyback, which will be accounted for as and when shares are repurchased by the Company. Dividends and share buybacks are funded out of distributable reserves.

 

4.Fair value of financial instruments

 

This section should be read in conjunction with Note 17, Fair value of financial instruments of the Barclays PLC Annual Report 2023 which provides more detail about accounting policies adopted, valuation methodologies used in calculating fair value and the valuation control framework which governs oversight of valuations. There have been no changes in the accounting policies adopted or the valuation methodologies used.

 

Valuation

 

The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification:

 


Valuation technique using



Quoted market prices

Observable inputs

Significant unobservable inputs



(Level 1)

(Level 2)

(Level 3)

Total

As at 31.12.23

£m

£m

£m

£m

Trading portfolio assets

94,658

73,438

6,509

174,605

Financial assets at fair value through the income statement

5,831

192,571

8,249

206,651

Derivative financial instruments

107

253,189

3,540

256,836

Financial assets at fair value through other comprehensive income

30,247

40,511

1,078

71,836

Investment property

-

-

2

2

Total assets

130,843

559,709

19,378

709,930






Trading portfolio liabilities

(29,274)

(29,027)

(368)

(58,669)

Financial liabilities designated at fair value

(117)

(296,200)

(1,222)

(297,539)

Derivative financial instruments

(81)

(245,310)

(4,653)

(250,044)

Total liabilities

(29,472)

(570,537)

(6,243)

(606,252)






As at 31.12.22





Trading portfolio assets

62,478

64,855

6,480

133,813

Financial assets at fair value through the income statement

5,720

198,723

9,125

213,568

Derivative financial instruments

10,054

287,152

5,174

302,380

Financial assets at fair value through other comprehensive income

20,704

44,347

11

65,062

Investment property

-

-

5

5

Total assets

98,956

595,077

20,795

714,828






Trading portfolio liabilities

(44,128)

(28,740)

(56)

(72,924)

Financial liabilities designated at fair value

(133)

(270,454)

(1,050)

(271,637)

Derivative financial instruments

(10,823)

(272,434)

(6,363)

(289,620)

Total liabilities

(55,084)

(571,628)

(7,469)

(634,181)

 

5.Subordinated liabilities

 


Year ended 31.12.23

Year ended 31.12.22


£m

£m

Opening balance as at 1 January

11,423

12,759

Issuances

1,523

1,477

Redemptions

(2,239)

(2,679)

Other

(213)

(134)

Closing balance

10,494

11,423

 

Issuances of £1,523m comprise £1,180m USD 7.119% Fixed-to-Floating Rate Subordinated Callable Notes issued externally by Barclays PLC, £315m USD Floating Rate Notes and £28m JPY Floating Rate Notes issued externally by Barclays subsidiaries.

 

Redemptions of £2,239m comprise £1,345m EUR 2% Fixed Rate Subordinated Notes, £599m partial repurchase of USD 4.375% Fixed Rate Subordinated Notes issued externally by Barclays PLC, £194m USD Floating Rate Notes and £28m JPY Floating Rate notes issued externally by Barclays subsidiaries, £43m EUR Subordinated Floating Rate Notes and £30m USD Junior Undated Floating Rate Notes issued externally by Barclays Bank PLC.

 

Other movements predominantly comprise foreign exchange movements and fair value hedge adjustments.

 

6.Provisions

 


As at 31.12.23

As at 31.12.22


£m

£m

Customer redress

295

378

Legal, competition and regulatory matters

99

159

Redundancy and restructuring

397

136

Undrawn contractually committed facilities and guarantees

504

583

Sundry provisions

289

288

Total

1,584

1,544

 

 

7.Retirement benefits

 

As at 31 December 2023, the Group's IAS 19 net pension surplus across all schemes was £3.4bn (December 2022: £4.5bn). The UK Retirement Fund (UKRF), which is the Group's main scheme, had an IAS 19 net pension surplus of £3.6bn (December 2022: £4.7bn). The decrease in the UKRF surplus during the year was driven by lower corporate bond yields and the assets underperforming the discount rate.

 

The UKRF annual funding update as at 30 September 2023 showed a surplus of £2.03bn compared to £1.97bn at the 30 September 2022 triennial actuarial valuation. The improvement was mainly due to asset returns outperforming the change in liabilities.

 

8.Other reserves

 


As at 31.12.23

As at 31.12.22


£m

£m

Currency translation reserve

3,671

4,772

Fair value through other comprehensive income reserve

(1,366)

(1,560)

Cash flow hedging reserve

(3,707)

(7,235)

Own credit reserve

(240)

467

Other reserves and treasury shares

1,565

1,364

Total

(77)

(2,192)

 

Currency translation reserve

 

The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group's net investment in foreign operations, net of the effects of hedging.

 

As at 31 December 2023, there was a cumulative gain of £3,671m (December 2022: £4,772m gain) in the currency translation reserve, a loss during the period of £1,110m (2022: gain of £2,032m) partially offset by a tax credit of £9m (2022: nil). This principally reflects the strengthening of GBP against USD and EUR during 2023, in contrast to the weakening of GBP against USD and EUR during 2022.

 

Fair value through other comprehensive income reserve

 

The fair value through other comprehensive income reserve represents the total of unrealised gains and losses on fair value through other comprehensive income investments since initial recognition.

 

As at 31 December 2023, there was a cumulative loss of £1,366m (December 2022: £1,560m loss) in the reserve, a gain during the period of £194m (2022: loss of £1,277m). This is principally driven by a gain of £299m (2022: loss of £1,836m) from the increase in fair value of bonds (net of hedges) due to decreasing bond yields (as against increase in the yields in 2022) across currencies. It is partially offset by a net gain of £26m transferred to the income statement (2022: loss of £111m transferred to the income statement and gain of £84m transferred to retained earnings on the sale of a 14.90% equity stake in Absa Group Limited), a tax charge of £78m (2022: tax credit of £523m) and impairment of £1m.

 

Cash flow hedging reserve

 

The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income statement when the hedged transactions affect profit or loss.

 

As at 31 December 2023, there was a cumulative loss of £3,707m (December 2022: £7,235m loss) in the cash flow hedging reserve, a gain during the period of £3,528m, which partially reversed the loss during 2022 of £6,382m. This principally reflects a £4,447m gain driven by the fair value movement of interest rate swaps held for hedging purposes as major interest rate forward curves decreased (in contrast to the increase in interest rate forward curves in 2022), as well as fair value gains on currency swaps. This was offset by £423m of losses (2022: £339m) transferred to the income statement, driven by accumulated losses on interest rate swaps offset by gains on cross currency swaps, and a tax charge of £1,342m (2022: credit of £2,331m).

 

Own credit reserve

 

The own credit reserve reflects the cumulative own credit gains and losses on financial liabilities at fair value. Amounts in the own credit reserve are not recycled to profit or loss in future periods.

 

As at 31 December 2023, there was a cumulative loss of £240m (December 2022: £467m gain) in the own credit reserve, a loss of £707m during the period 2022: gain of £1,427m). This principally reflects a £983m loss (2022: gain of £2,091m) from the tightening of credit spreads (in contrast to the widening of spreads in 2022) partially offset by tax credit of £273m (2022: tax charge of £616m) and own credit realisation of £3m.

 

Other reserves and treasury shares

 

Other reserves relate to redeemed ordinary and preference shares issued by the Group. Treasury shares relate to Barclays PLC shares held principally in relation to the Group's various share schemes.

 

As at 31 December 2023, there was a balance of £1,565m (December 2022: £1,364m gain). This principally reflects an increase of £209m (December 2022: increase of £233m) due to the repurchase of 837m shares (December 2022: 931m) as part of the share buybacks conducted in 2023 offset by a £8m movement (December 2022: £5m movement) in the treasury shares balance held in relation to employee share schemes.

 

Appendix: Non-IFRS Performance Measures

 

The Group's management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements, as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management.

 

However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well.

 

Non-IFRS performance measures glossary

 

Measure

Definition

Loan: deposit ratio

Total loans and advances at amortised cost divided by total deposits at amortised cost. The components of the calculation have been included on page 53.

Attributable profit

Profit after tax attributable to ordinary shareholders of the parent.

Period end tangible equity refers to:

Period end tangible shareholders' equity (for Barclays Group)

Shareholders' equity attributable to ordinary shareholders of the parent, adjusted for the deduction of intangible assets and goodwill.

Period end allocated tangible equity (for businesses)

Allocated tangible equity is calculated as 13.5% (2022: 13.5%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Barclays Group's tangible shareholders' equity and the amounts allocated to businesses.

Average tangible equity refers to:

Average tangible shareholders' equity (for Barclays Group)

Calculated as the average of the previous month's period end tangible shareholders' equity and the current month's period end tangible shareholders' equity. The average tangible shareholders' equity for the period is the average of the monthly averages within that period.

Average allocated tangible equity (for businesses)

Calculated as the average of the previous month's period end allocated tangible equity and the current month's period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period.

Return on tangible equity (RoTE) refers to:

Return on average tangible shareholders' equity (for Barclays Group)

Group attributable profit, as a proportion of average tangible shareholders' equity. The components of the calculation have been included on pages 70 to 71.

Return on average allocated tangible equity (for businesses)

Business attributable profit, as a proportion of that business's average allocated tangible equity. The components of the calculation have been included on pages 70 to 72.

Operating expenses excluding litigation and conduct

A measure of total operating expenses excluding litigation and conduct charges.

Operating costs

A measure of total operating expenses excluding litigation and conduct charges and UK bank levy.

Cost: income ratio

Total operating expenses divided by total income.

Loan loss rate

Quoted in basis points and represents total impairment charges divided by total gross loans and advances held at amortised cost at the balance sheet date.

Net interest margin

Net interest income divided by the sum of average customer assets. The components of the calculation have been included on page 26.

Tangible net asset value per share

Calculated by dividing shareholders' equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 77.

Profit before impairment

Calculated by excluding credit impairment charges or releases from profit before tax.

Structural cost actions

Cost actions taken to improve future financial performance.

Performance measures excluding the impact of Q423 structural cost actions

Calculated by excluding the impact of Q423 structural cost actions from performance measures. The components of the calculations for Barclays Group and businesses have been included on pages 6 to 7 and pages 73 to 74 respectively.

Performance measures excluding the impact of the Over-issuance of Securities

Calculated by excluding the impact of the Over-issuance of Securities from performance measures. The components of the calculations for Barclays Group and businesses have been included on pages 6 to 7 and page 75 respectively.

 

Returns

 


Year ended 31.12.23


Barclays UK

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays International

Head Office

Barclays Group

Return on average tangible equity

£m

£m

£m

£m

£m

£m

Attributable profit/(loss)

1,962

2,667

358

3,025

(713)

4,274









£bn

£bn

£bn

£bn

£bn

£bn

Average equity

14.0

31.7

6.1

37.8

4.0

55.8

Average goodwill and intangibles

(3.8)

-

(0.8)

(0.8)

(3.8)

(8.4)

Average tangible equity

10.2

31.7

5.3

37.0

0.2

47.4








Return on average tangible equity

19.2%

8.4%

6.7%

8.2%

n/m

9.0%

 


Year ended 31.12.22


Barclays UK

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays International

Head Office

Barclays Group

Return on average tangible equity

£m

£m

£m

£m

£m

£m

Attributable profit/(loss)

1,877

3,364

480

3,844

(698)

5,023









£bn

£bn

£bn

£bn

£bn

£bn

Average equity

13.6

32.8

5.7

38.5

4.3

56.4

Average goodwill and intangibles

(3.6)

-

(0.9)

(0.9)

(3.6)

(8.1)

Average tangible equity

10.0

32.8

4.8

37.6

0.7

48.3








Return on average tangible equity

18.7%

10.2%

10.0%

10.2%

n/m

10.4%

 

Barclays Group



Return on average tangible shareholders' equity

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

£m

£m

£m

£m


£m

£m

£m

£m

Attributable (loss)/profit

(111)

1,274

1,328

1,783


1,036

1,512

1,071

1,404












£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Average shareholders' equity

57.1

55.1

55.4

55.9


54.9

56.8

57.1

56.9

Average goodwill and intangibles

(8.2)

(8.6)

(8.7)

(8.3)


(8.2)

(8.2)

(8.1)

(8.1)

Average tangible shareholders' equity

48.9

46.5

46.7

47.6


46.7

48.6

49.0

48.8











Return on average tangible shareholders' equity

(0.9)%

11.0%

11.4%

15.0%


8.9%

12.5%

8.7%

11.5%











 

Barclays UK










Return on average allocated tangible equity

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

£m

£m

£m

£m


£m

£m

£m

£m

Attributable profit

382

531

534

515


474

549

458

396












£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Average allocated equity

14.1

14.0

14.2

13.9


13.7

13.5

13.6

13.7

Average goodwill and intangibles

(3.9)

(3.9)

(4.0)

(3.6)


(3.5)

(3.6)

(3.6)

(3.6)

Average allocated tangible equity

10.2

10.1

10.2

10.3


10.2

9.9

10.0

10.1











Return on average allocated tangible equity

14.9%

21.0%

20.9%

20.0%


18.7%

22.1%

18.4%

15.6%

 

Barclays International




Return on average allocated tangible equity

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

£m

£m

£m

£m


£m

£m

£m

£m

Attributable (loss)/profit

(124)

848

953

1,348


625

1,136

783

1,300












£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Average allocated equity

37.6

37.6

38.0

38.1


39.9

40.1

38.2

36.0

Average goodwill and intangibles

(0.5)

(0.8)

(0.9)

(1.0)


(1.0)

(1.0)

(0.9)

(0.9)

Average allocated tangible equity

37.1

36.8

37.1

37.1


38.9

39.1

37.3

35.1











Return on average allocated tangible equity

(1.3)%

9.2%

10.3%

14.5%


6.4%

11.6%

8.4%

14.8%











 

 

Corporate and Investment Bank









Return on average allocated tangible equity

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

£m

£m

£m

£m


£m

£m

£m

£m

Attributable (loss)/profit

(61)

721

798

1,209


454

1,015

579

1,316












£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Average allocated equity

31.6

31.5

31.8

31.8


33.7

34.0

32.7

30.8

Average goodwill and intangibles

-

-

-

-


-

-

-

-

Average allocated tangible equity

31.6

31.5

31.8

31.8


33.7

34.0

32.7

30.8











Return on average allocated tangible equity

(0.8)%

9.2%

10.0%

15.2%


5.4%

11.9%

7.1%

17.1%

 

Consumer, Cards and Payments









Return on average allocated tangible equity

Q423

Q323

Q223

Q123


Q422

Q322

Q222

Q122

£m

£m

£m

£m


£m

£m

£m

£m

Attributable (loss)/profit

(63)

127

155

139


171

121

204

(16)












£bn

£bn

£bn

£bn


£bn

£bn

£bn

£bn

Average allocated equity

6.0

6.1

6.2

6.3


6.2

6.1

5.5

5.2

Average goodwill and intangibles

(0.5)

(0.8)

(0.9)

(1.0)


(1.0)

(1.0)

(0.9)

(0.9)

Average allocated tangible equity

5.5

5.3

5.3

5.3


5.2

5.1

4.6

4.3











Return on average allocated tangible equity

(4.5)%

9.6%

11.8%

10.5%


13.0%

9.5%

17.8%

(1.5)%











 

Performance measures excluding the impact of Q423 structural cost actions

 


Year ended 31.12.23


Barclays UK

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays International

Head Office

Barclays Group


£m

£m

£m

£m

£m

£m

Total operating expenses

(4,415)

(8,458)

(3,303)

(11,761)

(755)

(16,931)

Q423 structural cost actions

(168)

(188)

(118)

(306)

(453)

(927)

Total operating expenses excluding Q423 structural cost actions

(4,247)

(8,270)

(3,185)

(11,455)

(302)

(16,004)








Total income

7,587

12,610

5,308

17,918

(127)

25,378








Cost: income ratio excluding Q423 structural cost actions

56%

66%

60%

64%

n/m

63%








Profit/(loss) before tax

2,868

4,126

481

4,607

(918)

6,557

Pre-tax impact of Q423 structural cost actions

(168)

(188)

(118)

(306)

(453)

(927)

Profit/(loss) before tax excluding Q423 structural cost actions

3,036

4,314

599

4,913

(465)

7,484








Attributable profit/(loss)

1,962

2,667

358

3,025

(713)

4,274

Post-tax impact of Q423 structural cost actions

(122)

(140)

(100)

(240)

(376)

(739)

Attributable profit/(loss) excluding the impact of Q423 structural cost actions

2,084

2,807

458

3,265

(337)

5,013









£bn

£bn

£bn

£bn

£bn

£bn

Average tangible equity

10.2

31.7

5.3

37.0

0.2

47.4








Return on average tangible equity excluding Q423 structural cost actions

20.4%

8.9%

8.6%

8.8%

n/m

10.6%








Basic weighted average number of shares (m)






15,445

Basic earnings per share






32.4p

 

Performance measures excluding the impact of Q423 structural cost actions (continued)

 


Three months ended 31.12.23


Barclays UK

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays International

Head Office

Barclays Group


£m

£m

£m

£m

£m

£m

Total operating expenses

(1,187)

(2,266)

(936)

(3,202)

(531)

(4,920)

Q423 structural cost actions

(168)

(188)

(118)

(306)

(453)

(927)

Total operating expenses excluding Q423 structural cost actions

(1,019)

(2,078)

(818)

(2,896)

(78)

(3,993)








Total income

1,792

2,390

1,364

3,754

52

5,598








Cost: income ratio excluding Q423 structural cost actions

57%

87%

60%

77%

n/m

71%








Profit/(loss) before tax

568

95

(68)

27

(485)

110

Pre-tax impact of Q423 structural cost actions

(168)

(188)

(118)

(306)

(453)

(927)

Profit/(loss) before tax excluding Q423 structural cost actions

736

283

50

333

(32)

1,037








Attributable profit/(loss)

382

(61)

(63)

(124)

(369)

(111)

Post-tax impact of Q423 structural cost actions

(122)

(140)

(100)

(240)

(376)

(739)

Attributable profit excluding the impact of Q423 structural cost actions

504

79

37

116

7

628









£bn

£bn

£bn

£bn

£bn

£bn

Average tangible equity

10.2

31.6

5.5

37.1

1.6

48.9








Return on average tangible equity excluding Q423 structural cost actions

19.7%

1.0%

2.6%

1.3%

n/m

5.1%








Basic weighted average number of shares (m)






15,092

Basic earnings per share






4.2p

 

Reconciliation of financial results excluding adjusting items1

 

Year ended

31.12.23


31.12.22




Statutory

Adjusting items1

Excluding adjusting items


Statutory

Adjusting items1

Excluding adjusting items




£m

£m

£m


£m

£m

£m


% change

Income










Corporate and Investment Bank

12,610

-

12,610


13,368

292

13,076


(4)

of which:










FICC

4,845

-

4,845


5,695

-

5,695


(15)

Equities

2,373

-

2,373


3,149

292

2,857


(17)

Global Markets

7,218

-

7,218


8,844

292

8,552


(16)

Consumer, Cards and Payments

5,308

-

5,308


4,499

-

4,499


18

Barclays International

17,918

-

17,918


17,867

292

17,575


2











Total operating expenses










Corporate and Investment Bank

(8,458)

(188)

(8,270)


(8,945)

(966)

(7,979)


(4)

Consumer, Cards and Payments

(3,303)

(118)

(3,185)


(3,052)

-

(3,052)


(4)

Barclays International

(11,761)

(306)

(11,455)


(11,997)

(966)

(11,031)


(4)











Three months ended

31.12.23


31.12.22




Statutory

Adjusting items1

Excluding adjusting items


Statutory

Adjusting items1

Excluding adjusting items




£m

£m

£m


£m

£m

£m


% change

Income










Corporate and Investment Bank

2,390

-

2,390


2,576

-

2,576


(7)

of which:



-







FICC

724

-

724


976

-

976


(26)

Equities

431

-

431


440

-

440


(2)

Global Markets

1,155

-

1,155


1,416

-

1,416


(18)

Consumer, Cards and Payments

2,390

-

2,390


2,576

-

2,576


(7)

Barclays International

3,754

-

3,754


3,862

-

3,862


(3)











Total operating expenses










Corporate and Investment Bank

(2,266)

(188)

(2,078)


(1,977)

-

(1,977)


(15)

Consumer, Cards and Payments

(936)

(118)

(818)


(766)

-

(766)


(22)

Barclays International

(3,202)

(306)

(2,896)


(2,743)

-

(2,743)


(17)

 

1

Adjusting items: Q423 structural cost actions in 2023 and impact of the Over-issuance of Securities in 2022.

 

Notable Items





Year ended 31.12.23

Year ended 31.12.22

£m

Profit before tax

Attributable profit

Profit before tax

Attributable profit

Statutory

6,557

4,274

7,012

5,023

Net impact from the Over-issuance of Securities

-

-

(674)

(552)

Customer remediation costs on legacy loan portfolios

-

-

(282)

(228)

Settlements in principle in respect of industry-wide

devices investigations by SEC and CFTC

-

-

(165)

(165)

Other litigation and conduct

(37)

(17)

(184)

(167)

Structural cost actions

(1,046)

(826)

(151)

(123)

Re-measurement of UK DTAs

-

-

-

(346)

Excluding the impact of notable items

7,640

5,117

8,468

6,604







Three months ended 31.12.23

Three months ended 31.12.22

£m

Profit before tax

Attributable loss

Profit before tax

Attributable profit

Statutory

110

(111)

1,310

1,036

Net impact from the Over-issuance of Securities

-

-

-

-

Other litigation and conduct

(5)

(4)

(79)

(70)

Structural cost actions

(927)

(739)

(74)

(63)

Excluding the impact of notable items

1,042

632

1,463

1,169

 

The Group's management believes that the non-IFRS performance measures excluding notable items, included in the table above, provide valuable information to enable users of the financial statements to assess the performance of the Group. The notable items are separately identified within the Group's results disclosures which, when excluded from Barclays' statutory financials, provide an underlying profit and loss performance of the Group and enables consistent comparison of performance from one period to another.

 

These non-IFRS performance measures excluding notable items are included as a reference point only and are not incorporated within any of the key financial metrics used in our Group Targets, which are measured on a statutory basis.

 

Tangible net asset value per share

As at 31.12.23

As at 31.12.22


£m

£m

Total equity excluding non-controlling interests

71,204

68,292

Other equity instruments

(13,259)

(13,284)

Goodwill and intangibles

(7,794)

(8,239)

Tangible shareholders' equity attributable to ordinary shareholders of the parent

50,151

46,769





m

m

Shares in issue

15,155

15,871





p

p

Tangible net asset value per share

331

295

 

Shareholder Information

 

Results timetable1



Date



Ex-dividend date



29 February 2024


Dividend record date



1 March 2024


Cut off time of 5:00pm (UK time) for the receipt of Dividend Reinvestment Programme (DRIP) Application Form Mandate


11 March 2024


Dividend payment date



3 April 2024


Q1 2024 Results Announcement



25 April 2024








For qualifying US and Canadian resident ADR holders, the 2023 full year dividend of 5.3p per ordinary share becomes 21.2p per ADS

(representing four shares). The ex-dividend, dividend record and dividend payment dates for ADR holders are as shown above


A DRIP is provided by Equiniti Financial Services Limited. The DRIP enables the Company's shareholders to elect to have their cash dividend payments used to purchase the Company's shares. More information can be found at www.shareview.co.uk/info/drip


DRIP participants will usually receive their additional ordinary shares (in lieu of a cash dividend) three to four days after the dividend payment date


Barclays PLC ordinary shares ISIN code: GB0031348658


Barclays PLC ordinary shares TIDM Code: BARC





Year ended

Year ended




Exchange rates2

31.12.23

31.12.22

% Change3



Period end - USD/GBP

1.28

1.21

6%



YTD average - USD/GBP

1.24

1.24

-



3 month average - USD/GBP

1.24

1.17

6%



Period end - EUR/GBP

1.15

1.13

2%



YTD average - EUR/GBP

1.15

1.17

(2)%



3 month average - EUR/GBP

1.15

1.15

-









Share price data






Barclays PLC (p)

153.78

158.52




Barclays PLC number of shares (m)

15,155

15,871
















For further information please contact












Investor relations

Media relations


Marina Shchukina +44 (0) 20 7116 2526

Tom Hoskin +44 (0) 20 7116 4755





More information on Barclays can be found on our website: home.barclays








Registered office






1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839.








Registrar






Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.


Tel: +44 (0)371 384 2055 (UK and International telephone number)4.








American Depositary Receipts (ADRs)






EQ Shareowner Services


P.O. Box 64504


St. Paul, MN 55164-0504


United States of America


shareowneronline.com





Toll Free Number: +1 800-990-1135






Outside the US +1 651-453-2128












Delivery of ADR certificates and overnight mail






EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100, USA.


 

1

Note that these dates are provisional and subject to change.

2

The average rates shown above are derived from daily spot rates during the year.

3

The change is the impact to GBP reported information.

4

Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public holidays in England and Wales.

 

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