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Barclays PLC (BARC)

  Print          Annual reports

Wednesday 27 April, 2016

Barclays PLC

1st Quarter Results

RNS Number : 4336W
Barclays PLC
27 April 2016
 

 

Barclays PLC

Q1 2016 Results Announcement

 

 

31 March 2016

 

 

Table of Contents

Results Announcement

Page

Performance Highlights

2-5

Group Finance Director's Review

6-8

Quarterly Results Summary

9-11

Quarterly Core Results by Business

12-15

Discontinued Operation

16

Performance Management

 

·     Returns and equity by business

17

·     Margins and balances

18

Condensed Consolidated Financial Statements

19-21

Capital

22-23

Risk Weighted Assets

24

Leverage

25

Shareholder Information

26

 

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

 

Notes

The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2016 to the corresponding three months of 2015 and balance sheet analysis as at 31 March 2016 with comparatives relating to 31 December 2015. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively.

Comparatives have been restated to reflect the implementation of the Group business reorganisation. These restatements were detailed in our announcement on 14 April 2016, accessible at barclays.com/barclays-investor-relations/results-and-reports.

Notable items are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Notable items include: the impact of own credit in total income; gains on US Lehman acquisition assets in total income; revision of the Education, Social Housing, and Local Authority (ESHLA) valuation methodology in total income; gain on valuation of a component of the defined retirement benefit liability in operating expenses; impairment of goodwill and other assets relating to businesses being disposed in operating expenses, provisions for UK customer redress in litigation and conduct; provisions for ongoing investigations and litigation including Foreign Exchange in litigation and conduct; and losses on sale relating to the Spanish, Portuguese and Italian businesses in other net income/(expenses).

References to underlying performance exclude the impact of notable items.

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

The information in this announcement, which was approved by the Board of Directors on 26 April 2016, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website barclays.com/investorrelations and from the SEC's website at www.sec.gov.

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

 

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Examples of forward-looking statements include, among others, statements or guidance regarding the Group's future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, rundown of assets and businesses within Barclays Non-¢ore, sell down of the Group's interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, future levels of notable items, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entities within the Group or any securities issued by such entities; the potential for one or more countries (including the UK) exiting the Eurozone; the implementation of the strategic cost programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our annual report on form 20-F for the fiscal year ended 31 December 2015), which are available on the SEC's website at www.sec.gov.

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States 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

Chief Executive's statement

"This quarter we have made good early progress against the strategy update we announced on the 1st of March. It is the first set of results as a transatlantic consumer, corporate and investment bank operating under our new configuration of Barclays UK and Barclays Corporate & International, and they show a Core business performing well in a challenging environment.

Core RoTE is 9.9%, within which Barclays UK posted an impressive 20.5% return on tangible equity. We can see clear growth opportunities, such as in our Consumer, Cards and Payments business, in which we want to continue to invest. The performance of our Corporate and Investment Bank was relatively resilient in a tough quarter, but there is more we must do to improve returns, and we are focused on management actions to do so.

We continue to target cost reductions in the Group and we are on track to meet our 2016 guidance for the Core business of £12.8 billion, and our longer-term target of a Group cost to income ratio under 60%.

Our CET1 ratio finished the quarter at 11.3%, with a clear path to reaching our end state target, and I expect the capital ratio to increase through the course of the rest of 2016.

On Africa, we continue to explore opportunities to reduce our shareholding to a level that achieves regulatory deconsolidation, including capital market and strategic options, and we are pleased with the level of indicative interest in what is a high quality business. Barclays Africa is an important partner, and we are working closely with local management, including on the planning for the operational separation of the two businesses, in a way that will preserve value for shareholders in both Groups.

The performance of the Core today shows the potential power of the Group once it is freed from the drag of Non-Core.  

We promised to accelerate the pace of progress in reducing Non-Core so that our Group performance converges with our Core performance within a reasonable timeframe. Since the 1st of January, we have made progress in exiting from Investment Banking in nine countries, completed the sale of our Portuguese retail, wealth and SME banking businesses, and are progressing other announced sales, including the Italian branch network, the Index business and our Asian wealth business, towards completion in 2016.

As these deals complete we are reducing RWAs and, crucially, eliminating costs which have a direct impact on our profitability today and mask the true performance of our strong Core business. This is the work we need to complete."

 

James E Staley, Group Chief Executive Officer

 

·

Group return on average tangible shareholders' equity (RoTE) of 3.8% (Q115: 4.0%). Core RoTE of 9.9% (Q115: 7.1%)

·

Group attributable profit decreased 7% to £433m, resulting in a basic earnings per share of 2.7p (Q115: 2.9p). Core attributable profit increased 53% to £950m, resulting in a basic earnings per share contribution of 5.8p (Q115: 3.8p)

·

Group profit before tax of £793m (Q115: £1,057m) reflected an 18% increase in Core profit before tax to £1,608m, more than offset by an increased Non-Core loss before tax of £815m (Q115: £310m)

·

Barclays UK delivered a strong underlying RoTE of 20.5% (Q115: 24.0%). Underlying profit before tax decreased 2% to £704m as lower income was partially offset by improved impairment, with underlying total operating expenses remaining broadly in line. Net interest margin remained stable at 3.62% (Q115: 3.60%)

·

Barclays Corporate & International delivered an underlying RoTE of 9.5% (Q115: 10.9%). Income increased 2% driven by growth in Consumer, Cards and Payments and a resilient income performance in the Corporate and Investment Bank (CIB) despite challenging market conditions

·

Momentum in the rundown of Non-Core continued, with risk weighted assets (RWAs) decreasing a further £3bn to £51bn in the quarter. The announced sales of the Portuguese and Italian retail, and Asian wealth businesses are all targeted to complete during the year, and are expected to result in a further £3.4bn reduction in RWAs

·

Common equity tier 1 (CET1) ratio declined modestly to 11.3% (December 2015: 11.4%) due to increased regulatory deductions and the acquisition of intangibles in relation to the JetBlue credit card portfolio, within US consumer cards. The leverage ratio decreased marginally to 4.3% (December 2015: 4.5%) due to seasonality. Group RWAs increased £5bn in the quarter to £363bn and leverage exposure increased £54bn to £1,082bn

·

Net tangible asset value per share increased to 286p (December 2015: 275p) driven by profit generated in the period and favourable reserve movements

 

Barclays Group results  

 

for the three months ended

31.03.16

31.03.15

  

 

£m

£m

% Change

Total income net of insurance claims

5,041 

5,650 

(11)

Credit impairment charges and other provisions

(443)

(386)

(15)

Net operating income  

4,598 

5,264 

(13)

Operating expenses  

(3,747)

(3,067)

(22)

Litigation and conduct

(78)

(1,039)

92 

Total operating expenses

(3,825)

(4,106)

Other net income/(expenses)  

20 

(101)


Profit before tax  

793 

1,057 

(25)

Tax charge

(248)

(528)

53 

Profit after tax in respect of continuing operations

545 

529 

Profit after tax in respect of discontinued operation

166 

196 

(15)

Non-controlling interests in respect of continuing operations

(94)

(88)

(7)

Non-controlling interests in respect of discontinued operation

(80)

(92)

13 

Other equity holders

(104)

(80)

(30)

Attributable profit  

433 

465 

(7)

 

 

 

  

Performance measures

 

 

 

Return on average tangible shareholders' equity

3.8%

4.0%

  

Average tangible shareholders' equity (£bn)

48 

48 

  

Cost: income ratio

76%

73%

  

Loan loss rate (bps)

40 

32 

  

 

 

 

  

Basic earnings per share

2.7p

2.9p

  

Dividend per share  

-

1.0p

  

  

 

 

 

Balance sheet and capital management

As at

31.03.16

As at

31.12.15

  

Net tangible asset value per share

286p

275p

  

Common equity tier 1 ratio

11.3%

11.4%

  

Common equity tier 1 capital

£40.9bn

£40.7bn

  

Risk weighted assets  

£363bn

£358bn

  

Leverage ratio

4.3%

4.5%

  

Tier 1 capital

£46.3bn

£46.2bn

  

Leverage exposure  

£1,082bn

£1,028bn

  

 

 

 

 

Funding and liquidity

 

 

  

Group liquidity pool

£132bn

£145bn

  

Estimated CRD IV liquidity coverage ratio

129%

133%

  

Loan: deposit ratio

84%

86%

  

 

1

Refer to page 16 for further information on the Africa Banking discontinued operation.

2

The profit after tax attributable to other equity holders of £104m (Q115: £80m) is offset by a tax credit recorded in reserves of £29m (Q115: £16m). The net amount of £75m (Q115: £64m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity.

3

Loan: deposit ratio for Barclays UK, Consumer, Cards and Payments, Corporate, and Non-Core retail.

 

Barclays Core and Non-Core results  

Barclays Core

 

Barclays Non-Core

for the three months ended

31.03.16

31.03.15

 

 

31.03.16

31.03.15

  

 

£m

£m

% Change

 

£m

£m

% Change

Total income net of insurance claims

5,283 

5,428 

(3)

 

(242)

222 


Credit impairment charges and other provisions

(414)

(345)

(20)

 

(29)

(41)

29 

Net operating income/(expenses)  

4,869 

5,083 

(4)

 

(271)

181 

 

Operating expenses

(3,258)

(2,618)

(24)

 

(489)

(449)

(9)

Litigation and conduct

(12)

(1,015)

99 

 

(66)

(24)

 

Total operating expenses

(3,270)

(3,633)

10 

 

(555)

(473)

(17)

Other net income/(expenses)

(83)

 

 

11 

(18)


Profit/(loss) before tax  

1,608 

1,367 

18 

 

(815)

(310)


Tax (charge)/credit

(485)

(614)

21 

 

237 

86 


Profit/(loss) after tax

1,123 

753 

49 

 

(578)

(224)


Non-controlling interests

(84)

(68)

(24)

 

(10)

(20)

50 

Other equity holders

(89)

(65)

(37)

 

(15)

(14)

(7)

Attributable profit/(loss)

950 

620 

53 

 

(603)

(258)


 

 

  

 

 

 

 

  

Performance measures

 

 

 

 

 

 

 

Return on average tangible equity

9.9%

7.1%

 

 

 

 

 

Average allocated tangible equity (£bn)

39 

36 

 

 

12 

  

Period end allocated tangible equity (£bn)

40 

36 

 

 

12 

  

Cost: income ratio

62%

67%

 

 

n/m

n/m

  

Loan loss rate (bps)

42 

35 

 

 

21 

17 

  

Basic earnings/(loss) per share contribution

5.8p

3.8p

 

 

(3.6p)

(1.5p)

  

 

 

 

 

 

 

 

 

 

As at

As at

 

 

As at

As at

  

Capital management

31.03.16

31.12.15

 

 

31.03.16

31.12.15

  

Risk weighted assets

£312bn

£304bn

 

 

£51bn

£54bn

  

Leverage exposure

£946bn

£879bn

 

 

£136bn

£149bn

  

 

 

 

 

 

 

 

 

Notable items

for the three months ended

31.03.16

31.03.15

 

 

31.03.16

31.03.15

  

Own credit  

(109)

128 

 

 

  

Provisions for ongoing investigations and litigation including Foreign Exchange  

(800)

 

 

  

Gains on valuation of a component of the defined retirement benefit liability   

429 

  

 

  

Provisions for UK customer redress  

(167)

 

 

(15)

  

Losses on sale relating to the Spanish business

(97)

 

 

(21)

  

 

Excluding notable items, the Core return on average tangible equity was 10.7% (Q115: 13.4%) and the Core basic earnings per share was 6.3p (Q115: 7.3p).

 

Excluding notable items, the Non-Core basic loss per share was 3.6p (Q115: 1.3p).

 

1

Attributable profit in respect of the Africa Banking discontinued operation is reported at the Group level only. Allocated tangible equity, RWAs and leverage exposure are reported in Head Office within Core.

 

  

Three months ended

Three months ended

  

 

31.03.16

31.03.15

  

Income by business

£m

£m

% Change

Barclays UK

1,803 

1,831 

(2)

Barclays Corporate & International

3,513 

3,454 

Head Office

(33)

142 


Barclays Core

5,283 

5,428 

(3)

Barclays Non-Core

(242)

222 


Barclays Group

5,041 

5,650 

(11)

 

Profit/(loss) before tax by business

 

 

  

Barclays UK

704 

844 

(17)

Barclays Corporate & International

1,027 

510 


Head Office

(123)

12 


Barclays Core

1,608 

1,367 

18 

Barclays Non-Core

(815)

(310)


Barclays Group

793 

1,057 

(25)

 

Group Finance Director's Review

Group performance in the quarter was impacted by the Non-Core results, with a loss before tax of £815m (Q115: £310m) driven by negative total income of £242m (Q115: positive income of £222m), including fair value losses on the Education, Social Housing and Local Authority Losses (ESHLA) portfolio of £374m (Q115: £149m). The Non-Core rundown remains on track with continued momentum in the quarter and no change to previous guidance. 

 

The Core business performed well, with a statutory RoTE of 9.9% (Q115: 7.1%) driven by steady results in Barclays UK across each of the business areas, and solid performance in Barclays Corporate & International. Corporate and Investment Bank results were resilient given the challenging market conditions, particularly in Credit, while strong business growth in Consumer, Cards and Payments drove a significant increase in profit before tax. 

 

Total Core operating expenses of £3,270m (Q115: £3,633m) were impacted by higher restructuring charges, increased implementation costs associated with the structural reform programme and the appreciation of average USD against GBP. Total Core operating expenses are expected to reduce and the 2016 Core cost guidance of £12.8bn excluding litigation and conduct charges remains unchanged.

 

Group performance

·

Profit before tax decreased 25% to £793m, including an own credit loss of £109m (Q115: gain of £128m)

·

Total income net of insurance claims decreased 11% to £5,041m as Non-Core income reduced £464m to a net expense of £242m. Core income, including an own credit loss of £109m (Q115: gain of £128m), decreased 3% to £5,283m despite the appreciation of average USD against GBP

·

Credit impairment charges increased 15% to £443m primarily driven by the impairment of a number of single name exposures, largely in respect of clients in the oil and gas sector. Exposures to the sector remain well managed and the increase in impairment is in line with expectations. The loan loss rate increased 8bps to 40bps

·

Total operating expenses reduced 7% to £3,825m following the non-recurrence of a number of notable items in Q115, partially offset by increased restructuring charges relating to strategic initiatives, increased implementation costs associated with the structural reform programme, continued investment in the Consumer, Cards and Payments business and the appreciation of average USD against GBP

·

The effective tax rate on profit before tax decreased to 31.3% (Q115: 50.0%) reflecting the non-recurrence of non-deductible litigation and conduct charges in Q115

·

Profit after tax in respect of continuing operations increased 3% to £545m

·

Underlying profit before tax, which excludes the impact of notable items, decreased 44% to £902m primarily driven by the underlying loss before tax in Non-Core of £815m (Q115: £274m). Total Group underlying income decreased 7% to £5,150m and total operating expenses increased 8% to £3,825m

·

Underlying return on average tangible shareholders' equity was 4.5% (Q115: 9.0%) and basic earnings per share was 3.2p (Q115: 6.6p)

 

All performance commentary which follows is on an underlying basis.

 

Core performance

·

Underlying Core performance generated a RoTE of 10.7% (Q115: 13.4%) driven by the following business performance and reflecting the allocation of Africa Banking average tangible equity to the Core

 

Barclays UK

·

Underlying profit before tax decreased 2% to £704m with a reduction in income, partially offset by lower credit impairment charges

·

Total income reduced 2% to £1,803m, within which:


-

Personal Banking income decreased 1% to £919m driven by a reduction in fee income and mortgage margin pressure, partially offset by improved deposit margins and balance growth


-

Barclaycard Consumer UK income decreased 3% to £491m reflecting the impact of the European Interchange Fee Regulation, which came into full effect from December 2015, partially offset by balance growth


-

Wealth, Entrepreneurs & Business Banking (WEBB) income decreased 2% to £393m, as the lower equity market drove reduced Wealth income


-

Net interest income was broadly flat at £1,501m (Q115: £1,486m). Net interest margin increased to 3.62% (Q115: 3.60%) as increased margins on Personal Banking deposits were partially offset by mortgage margin pressure

·

Credit impairment charges reduced 13% to £146m due to the benign economic environment in the UK resulting in lower default rates and charges. The loan loss rate reduced 6bps to 34bps

·

Underlying total operating expenses were broadly flat at £953m (Q115: £946m) driven by savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, and lower restructuring costs offset by increased implementation costs associated with the structural reform programme

·

Underlying RoTE was 20.5% (Q115: 24.0%)

 

Barclays Corporate & International

·

Underlying profit before tax decreased 13% to £1,027m driven by a 5% increase in underlying total operating expenses to £2,225m due to increased restructuring charges, appreciation of average USD against GBP and structural reform programme implementation costs and a 51% increase in credit impairment charges to £269m

·

Total income increased 2% to £3,513m, including the appreciation of average USD against GBP, with CIB income decreasing 4% to £2,596m and Consumer, Cards and Payments increasing 24% to £917m

·

Net interest margin increased to 4.61% (Q115: 4.38%) driven by growth in interest earning lending primarily representing the maturation of the US Cards business

·

Underlying RoTE was 9.5% (Q115: 10.9%)

 

Corporate and Investment Bank (CIB)

·

Underlying profit before tax decreased 31% to £701m primarily driven by a reduction in Banking and Markets income, increased credit impairment charges and higher operating expenses

·

Total income decreased 4% to £2,596m, reflecting the impact of challenging market conditions, partially offset by the appreciation of average USD against GBP


-

Markets income decreased 4% to £1,408m, within which:



-

Credit income increased 46% to £322m driven by strong performance in the US flow business, which benefited from increased market volatility and client activity



-

Equities income decreased 13% to £513m primarily due to declines in equity derivatives reflecting lower client volumes



-

Macro income decreased 13% to £573m due to lower income in rates and currency products, reflecting reduced client activity


-

Banking income decreased 5% to £1,185m, within which:



-

Banking fee income reduced 12% to £481m driven by lower equity underwriting and debt underwriting fees, partially offset by higher financial advisory fees



-

Corporate lending income increased 4% to £296m due to strong balance growth and lower losses on fair value hedges



-

Transactional banking income was broadly in line at £408m (Q115: £413m) with underlying balance growth and a stable customer margin

·

Credit impairment charges of £95m (Q115: release of £1m) arose primarily from impairment of a number of single name exposures, largely in respect of clients in the oil and gas sector

·

Underlying total operating expenses increased 6% to £1,800m driven by £93m higher restructuring charges relating to strategic initiatives, the appreciation of average USD against GBP and increased implementation costs associated with the structural reform programme

·

Underlying RoTE was 7.3% (Q115: 10.7%)

 

Consumer, Cards and Payments

·

Underlying profit before tax increased £163m to £326m driven by strong business growth

·

Total income increased 24% to £917m reflecting continued growth in Barclaycard US and Germany and the appreciation of average USD and EUR against GBP

·

Credit impairment charges reduced 3% to £174m despite balance growth

·

Underlying total operating expenses increased 3% to £425m driven by the continued business growth in Barclaycard US and Germany, and Barclaycard Business Solutions, in addition to the appreciation of average USD and EUR against GBP

·

Underlying RoTE was 23.4% (Q115: 11.8%)

 

Head Office

·

Underlying loss before tax was £14m (Q115: £19m) reflecting the net expense from treasury operations and one-off gains from a liability management exercise

 

Non-Core performance

·

Underlying loss before tax increased to £815m (Q115: £274m), including fair value losses on the ESHLA portfolio of £374m (Q115: £149m), as gilt swap spreads widened

·

Total income net of insurance claims reduced £464m to a net expense of £242m


-

Businesses income reduced £108m to £196m primarily due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas and UK Secured Lending businesses


-

Securities and loans income reduced £334m to a net expense of £402m primarily driven by fair value losses on the ESHLA portfolio, the non-recurrence of a £91m provision release relating to a litigation matter in Q115, and the exit of historical investment banking businesses


-

Derivatives income reduced £22m to a net expense of £36m primarily reflecting funding costs and the rundown of the portfolio

·

Credit impairment charges improved 29% to £29m due to higher recoveries in Europe

·

Underlying total operating expenses increased 21% to £555m reflecting £182m of restructuring charges in Q116 (Q115: £13m), partially offset by reduced costs following the completion of the sale of the Barclays Wealth Americas

·

RWAs decreased a further £3bn to £51bn in the quarter, driven by a £2bn reduction in Derivatives RWAs. The announced sales of the Portuguese and Italian retail, and Asian wealth businesses are all targeted to complete during the year, and are expected to result in a further £3.4bn reduction in Businesses RWAs

 

Group capital, leverage and balance sheet

·

Total assets increased 12% to £1,249bn in the quarter, while leverage exposure increased £54bn to £1,082bn


-

Total loans and advances, and other assets increased by £48bn to £673bn. This included a £24bn increase in settlement balances, lending growth of £3bn within Barclays Corporate & International as well as a £4bn increase in Africa Banking assets held for sale reflecting the appreciation of ZAR against GBP


-

Net derivative leverage exposure, remained broadly flat as an increase in balance sheet assets of £73bn to £401bn, was offset by an increase in regulatory derivative netting of £72bn to £365bn. The derivative assets increase was mainly due to an increase in interest rate derivatives, reflecting a decrease in the major interest rate forward curves


-

Non current assets classified as held for sale increased by £56bn due to the proposed disposal of Barclays Africa Group Limited (BAGL), with offsetting amounts across all balance sheet categories

·

Overall, the leverage ratio decreased to 4.3% (December 2015: 4.5%) driven by the leverage exposure increase

·

The fully loaded CRD IV CET1 ratio decreased to 11.3% (December 2015: 11.4%) with RWAs increasing by £5bn to £363bn and CET1 capital increasing £0.1bn to £40.9bn


-

The increase in RWAs of £5bn to £363bn was primarily due to the appreciation of ZAR and USD against GBP


-

The movement in CET1 capital was largely driven by profits generated in the period of £0.3bn, after absorbing the impact of own credit and dividends paid and foreseen. Increases in other qualifying reserves of £0.6bn were offset by higher regulatory adjustments and deductions of £0.6bn

·

Net tangible asset value per share increased to 286p (December 2015: 275p) driven by profit generated in the period and favourable cash flow hedge and currency translation reserve movements

 

Group funding and liquidity

·

The Group continued to maintain surpluses to its internal and regulatory requirements in Q116 with a liquidity pool of £132bn (December 2015: £145bn) and Liquidity Coverage Ratio (LCR) of 129% (December 2015: 133%), equivalent to a surplus of £31bn (December 2015: £37bn). The decrease in the liquidity pool was mainly driven by the early repayment of the Bank of England's Funding for Lending Scheme of £12bn

·

Wholesale funding outstanding excluding repurchase agreements was £141bn (December 2015: £142bn). Over the quarter, the Group made good progress on its commitment to transition to a holding company capital and wholesale funding model. The Group successfully issued £4.1bn in senior debt from the holding company across public and private placements, and also bought back £5.3bn of outstanding operating company senior debt and capital instruments. Proceeds raised by Barclays PLC have been used to subscribe for senior unsecured debt at Barclays Bank PLC, the operating company

 

Outlook and guidance

·

We remain confident in our core franchises and our ability to continue with the Non-Core rundown, but are cautious as we approach the 23rd June EU referendum

·

The income run-rate within the Corporate and Investment Bank in April is slightly down on Q116, but it is too early to make any specific comment on overall Q216 performance

 

Tushar Morzaria, Group Finance Director

 

Quarterly Results Summary

Barclays Group  

 


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income net of insurance claims 

5,041 


4,448 

5,481 

6,461 

5,650 


4,097 

5,987 

5,756 

Credit impairment charges and other provisions 

(443)


(554)

(429)

(393)

(386)


(495)

(435)

(439)

Net operating income 

4,598 


3,894 

5,052 

6,068 

5,264 


3,602 

5,552 

5,317 

Operating expenses

(3,747)


(3,547)

(3,552)

(3,557)

(3,067)


(3,696)

(3,653)

(3,762)

UK bank levy 


(426)


(418)

Litigation and conduct

(78)


(1,722)

(699)

(927)

(1,039)


(1,089)

(607)

(1,046)

Total operating expenses

(3,825)


(5,695)

(4,251)

(4,484)

(4,106)


(5,203)

(4,260)

(4,808)

Other net income/(expenses)

20 


(274)

(182)

(39)

(101)


(82)

(336)

(48)

Profit/(loss) before tax  

793 


(2,075)

619 

1,545 

1,057 


(1,683)

956 

461 

Tax (charge)/credit

(248)


(164)

(133)

(324)

(528)


134 

(507)

(215)

Profit/(loss) after tax in respect of continuing operations

545 


(2,239)

486 

1,221 

529 


(1,549)

449 

246 

Profit after tax in respect of discontinued operation

166 


101 

167 

162 

196 


168 

171 

145 

  

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

Ordinary equity holders of the parent

433 


(2,422)

417 

1,146 

465 


(1,679)

379 

161 

Other equity holders

104 


107 

79 

79 

80 


80 

80 

41 

Non-controlling interests

174 


177 

157 

158 

180 


218 

161 

189 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Total assets

1,248.9 


1,120.0 

1,236.5 

1,196.7 

1,416.4 


1,357.9 

1,365.7 

1,314.9 

Risk weighted assets  

363.0 


358.4 

381.9 

376.7 

395.9 


401.9 

412.9 

411.1 

Leverage exposure

1,082.0 


1,027.8 

1,140.7 

1,139.3 

1,254.7 


1,233.4 

1,323.9 

1,353.0 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity  

3.8%


(20.1%)

3.6%

9.8%

4.0%


(13.8%)

3.4%

1.4%

Average tangible shareholders' equity (£bn)

48.3 


47.8 

47.6 

47.2 

48.1 


48.3 

46.8 

46.7 

Cost: income ratio 

76%


128%

78%

69%

73%


127%

71%

84%

Loan loss rate (bps)

40 


53 

37 

35 

32 


45 

39 

39 

Basic earnings/(loss) per share   

2.7p


(14.4p)

2.6p

7.0p

2.9p


(10.2p)

2.4p

1.0p

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m


£m

£m

£m

£m


£m

£m

£m

Own credit  

(109)


(175)

195 

282 

128 


(62)

44 

(67)

Gains on US Lehman acquisition assets  


496 


461 

Revision of ESHLA valuation methodology  



(935)

Provisions for UK customer redress  


(1,450)

(290)

(850)

(182)


(200)

(10)

(900)

Provisions for ongoing investigations and litigation including Foreign Exchange


(167)

(270)

(800)


(750)

(500)

Gain on valuation of a component of the defined retirement benefit liability  


429 


Impairment of goodwill and other assets relating to businesses being disposed  


(96)


Losses on sale relating to the Spanish, Portuguese and Italian businesses


(261)

(201)

(118)


(82)

(364)

 

Excluding notable items, the return on average tangible shareholders' equity was 4.5% (Q115: 9.0%) and basic earnings per share was 3.2p (Q115: 6.6p).

 

Barclays Core  

 

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income net of insurance claims 

5,283 


4,516 

5,265 

6,219 

5,428 


4,791 

5,368 

5,216 

Credit impairment charges and other provisions 

(414)


(522)

(388)

(373)

(345)


(481)

(393)

(342)

Net operating income 

4,869 


3,994 

4,877 

5,846 

5,083 


4,310 

4,975 

4,874 

Operating expenses

(3,258)


(2,992)

(3,094)

(3,061)

(2,618)


(3,076)

(3,000)

(3,097)

UK bank levy 


(338)


(316)

Litigation and conduct

(12)


(1,634)

(419)

(819)

(1,015)


(1,004)

(507)

(953)

Total operating expenses

(3,270)


(4,964)

(3,513)

(3,880)

(3,633)


(4,396)

(3,507)

(4,050)

Other net income/(expenses)


(5)

13 

14 

(83)


322 

26 

Profit/(loss) before tax  

1,608 


(975)

1,377 

1,980 

1,367 


(80)

1,790 

850 

Attributable profit/(loss)

950 


(1,240)

961 

1,381 

620 


(417)

1,117 

419 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Total assets

883.6 


794.2 

862.0 

830.5 

919.4 


855.5 

867.9 

816.5 

Risk weighted assets

312.2 


304.1 

316.3 

308.1 

318.0 


312.8 

318.8 

309.0 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

9.9%


(12.8%)

10.4%

15.5%

7.1%


(4.8%)

14.1%

5.5%

Average tangible equity (£bn)

39.3 


38.1 

37.5 

35.9 

35.6 


34.0 

32.2 

30.7 

Cost: income ratio 

62%


110%

67%

62%

67%


92%

65%

78%

Loan loss rate (bps)

42 


57 

39 

38 

35 


52 

41 

37 

Basic earnings/(loss) per share

5.8p


(7.3p)

5.8p

8.4p

3.8p


(2.5p)

6.9p

2.6p

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m


£m

£m

£m

£m


£m

£m

£m

Own credit  

(109)


(175)

195 

282 

128 


(62)

44 

(67)

Gains on US Lehman acquisition assets  


496 


461 

Provisions for UK customer redress  


(1,392)

(290)

(800)

(167)


(199)

(844)

Provisions for ongoing investigations and litigation including Foreign Exchange


(167)

(69)

(800)


(750)

(500)

Gain on valuation of a component of the defined retirement benefit liability  


429 


Losses on sale relating to the Spanish, Portuguese and Italian businesses


(15)

(97)


315 

 

Excluding notable items, the Core return on average tangible equity was 10.7% (Q115: 13.4%) and the Core basic earnings per share was 6.3p (Q115: 7.3p).

 

Barclays Non-Core  

 

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Businesses  

196 


229 

314 

292 

304 


361 

379 

376 

Securities and loans  

(402)


(195)

(87)

(68)


(1,021)

275 

172 

Derivatives  

(36)


(102)

(12)

(49)

(14)


(35)

(35)

(8)

Total income net of insurance claims 

(242)


(68)

215 

243 

222 


(695)

619 

540 

Credit impairment charges and other provisions 

(29)


(32)

(41)

(20)

(41)


(13)

(42)

(98)

Net operating (expenses)/income 

(271)


(100)

174 

223

181 


(708)

577 

442 

Operating expenses

(489)


(555)

(458)

(496)

(449)


(618)

(654)

(666)

UK bank levy 


(88)


(102)

Litigation and conduct

(66)


(89)

(279)

(108)

(24)


(85)

(100)

(93)

Total operating expenses

(555)


(732)

(737)

(604)

(473)


(805)

(754)

(759)

Other net income/(expenses)

11 


(268)

(195)

(54)

(18)


(90)

(657)

(72)

Loss before tax  

(815)


(1,100)

(758)

(435)

(310)


(1,603)

(834)

(389)

Attributable loss

(603)


(1,208)

(628)

(324)

(258)


(1,347)

(819)

(333)

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

55.4 


51.8 

57.1 

60.4 

73.1 


70.7 

72.4 

83.6 

Derivative financial instrument assets  

249.7 


213.7 

243.3 

223.9 

305.6 


288.9 

252.6 

229.7 

Derivative financial instrument liabilities  

239.1 


202.1 

235.0 

216.7 

299.6 


280.6 

243.2 

217.8 

Reverse repurchase agreements and other similar secured lending  

0.7 


3.1 

8.5 

16.7 

43.7 


50.7 

75.3 

87.8 

Financial assets designated at fair value  

23.4 


21.4 

22.8 

22.1 

25.0 


25.5 

27.3 

24.9 

Total assets  

365.4 


325.8 

374.5 

366.2 

497.0 


502.4 

497.8 

498.4 

Customer deposits

19.3 


20.9 

25.8 

27.9 

29.9 


30.8 

32.2 

41.1 

Risk weighted assets

50.9 


54.3 

65.6 

68.6 

77.9 


89.1 

94.1 

102.0 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Average allocated tangible equity (£bn)

9.0 


9.7 

10.2 

11.3 

12.4 


14.3 

14.7 

16.0 

Period end allocated tangible equity (£bn)

8.5 


8.5 

10.2 

10.1 

11.7 


13.1 

14.1 

14.9 

Loan loss rate (bps)

21 


25 

27 

13 

17 


10 

27 

48 

Basic loss per share contribution   

(3.6p)


(7.2p)

(3.7p)

(1.9p)

(1.5p)


(8.2p)

(5.0p)

(2.0p)

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m


£m

£m

£m

£m


£m

£m

£m

Revision of ESHLA valuation methodology  



(935)

Provisions for UK customer redress  


(58)

(50)

(15)


(1)

(18)

(56)

Provisions for ongoing investigations and litigation including Foreign Exchange


(201)


Impairment of goodwill and other assets relating to businesses being disposed  


(96)


Losses on sale relating to the Spanish, Portuguese and Italian business


(246)

(201)

(21)


(82)

(679)

 

Excluding notable items, the Non-Core basic loss per share was 3.6p (Q115: 1.3p).

 

1

As at 31 March 2016 loans and advances included £42.2bn (December 2015: £40.4bn) of loans and advances to customers (including settlement balances of £0.2bn (December 2015: £0.3bn) and cash collateral of £23.7bn (December 2015: £19.0bn), and £13.2bn (December 2015: £11.4bn) of loans and advances to banks (including settlement balances of £0.1bn (December 2015: £nil) and cash collateral of £11.9bn (December 2015: £10.1bn)).

2

As at 31 March 2016 customer deposits included settlement balances of £0.3bn (December 2015: £0.2bn) and cash collateral of £14.5bn (December 2015: £12.3bn).

 

Barclays UK

 

 

 

 

 

 

 

 

 

 

 

  

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income

1,803 


1,834 

1,874 

1,804 

1,831 


1,882 

1,898 

1,834 

Credit impairment charges and other provisions 

(146)


(219)

(154)

(166)

(167)


(264)

(217)

(191)

Net operating income 

1,657 


1,615 

1,720 

1,638 

1,664 


1,618 

1,681 

1,643 

Operating expenses

(952)


(920)

(925)

(970)

(649)


(1,041)

(1,048)

(1,000)

UK bank levy 


(77)


(59)

Litigation and conduct

(1)


(1,466)

(76)

(801)

(168)


(211)

(32)

(850)

Total operating expenses

(953)


(2,463)

(1,001)

(1,771)

(817)


(1,311)

(1,080)

(1,850)

Other net income/(expenses)


(3)


(3)

(1)

Profit/(loss) before tax   

704 


(847)

720 

(132)

844 


304 

600 

(206)

Attributable profit/(loss)  

467 


(1,078)

541 

(174)

664 


208 

442 

(208)

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Loans and advances to customers at amortised cost

166.2 


166.1 

166.7 

166.1 

166.0 


165.3 

164.3 

163.5 

Total assets

201.7 


202.5 

204.1 

202.2 

199.6 


198.0 

190.9 

185.6 

Customer deposits

179.1 


176.8 

173.4 

171.6 

168.7 


168.3 

165.9 

166.8 

Risk weighted assets

69.7 


69.5 

71.0 

71.7 

72.3 


69.3 

71.3 

69.5 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

20.5%


(46.5%)

23.3%

(7.3%)

28.3%


9.3%

19.4%

(9.1%)

Average allocated tangible equity (£bn)

9.3 


9.2 

9.3 

9.4 

9.4 


9.2 

9.2 

9.0 

Cost: income ratio 

53%


134%

53%

98%

45%


70%

57%

101%

Loan loss rate (bps)

34 


51 

36 

40 

40 


62 

51 

46 

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m


£m

£m

£m

£m


£m

£m

£m

Provisions for UK customer redress  


(1,391)

(73)

(800)

(167)


(199)

(24)

(844)

Gain on valuation of a component of the defined retirement benefit liability  


296 


 

Excluding notable items, the Barclays UK return on average tangible equity was 20.5% (Q115: 24.0%).

 

Analysis of Barclays UK

 

 

 

 

 

 

 

 

 

 

Analysis of total income

£m


£m

£m

£m

£m


£m

£m

£m

Personal Banking

919 


945 

938 

905 

927 


955 

968 

935 

Barclaycard Consumer UK

491 


505 

552 

503 

505 


518 

530 

519 

Wealth, Entrepreneurs & Business Banking

393 


384 

384 

396 

399 


409 

400 

380 

Total income

1,803 


1,834 

1,874 

1,804 

1,831 


1,882 

1,898 

1,834 

  

 

 

 

 

 

 

 

 

 

 

Analysis of credit impairment charges and other provisions

 

 

 

 

 

 

 

 

 

 

Personal Banking

(42)


(39)

(36)

(50)

(69)


(57)

(57)

(40)

Barclaycard Consumer UK

(105)


(176)

(111)

(106)

(95)


(185)

(139)

(129)

Wealth, Entrepreneurs & Business Banking


(4)

(7)

(10)

(3)


(22)

(21)

(22)

Total credit impairment charges and other provisions

(146)


(219)

(154)

(166)

(167)


(264)

(217)

(191)

  

 

 

 

 

 

 

 

 

 

 

Analysis of loans and advances to customers at amortised cost

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Personal Banking

134.7 


134.0 

134.5 

134.4 

134.3 


133.8 

133.3 

132.6 

Barclaycard Consumer UK

16.0 


16.2 

15.9 

15.8 

15.7 


15.8 

15.5 

15.2 

Wealth, Entrepreneurs & Business Banking

15.5 


15.9 

16.3 

15.9 

16.0 


15.7 

15.5 

15.7 

Total loans and advances to customers at amortised cost

166.2 


166.1 

166.7 

166.1 

166.0 


165.3 

164.3 

163.5 

  

 

 

 

 

 

 

 

 

 

 

Analysis of customer deposits

 

 

 

 

 

 

 

 

 

 

Personal Banking

132.9 


131.0 

128.4 

126.7 

123.4 


124.5 

122.2 

121.1 

Barclaycard Consumer UK



Wealth, Entrepreneurs & Business Banking

46.2 


45.8 

45.0 

44.9 

45.3 


43.8 

43.7 

45.7 

Total customer deposits

179.1 


176.8 

173.4 

171.6 

168.7 


168.3 

165.9 

166.8 

 

Barclays Corporate & International

 

 

 

 

 

 

 

 

  

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income

3,513 


2,968 

3,223 

4,102 

3,454 


2,945 

3,370 

3,367 

Credit impairment charges and other provisions 

(269)


(303)

(235)

(206)

(178)


(217)

(176)

(151)

Net operating income 

3,244 


2,665 

2,988 

3,896 

3,276 


2,728 

3,194 

3,216 

Operating expenses

(2,221)


(2,007)

(2,059)

(2,027)

(1,936)


(2,014)

(1,943)

(2,068)

UK bank levy 


(253)


(248)

Litigation and conduct

(4)


(151)

(302)

(12)

(845)


(786)

(470)

(62)

Total operating expenses

(2,225)


(2,411)

(2,361)

(2,039)

(2,781)


(3,048)

(2,413)

(2,130)

Other net income


13 

15 


24 

Profit/(loss) before tax  

1,027 


262 

636 

1,870 

510 


(313)

790 

1,110 

Attributable profit/(loss)

575 


(24)

422 

1,376 

(16)


(673)

449 

594 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

215.9 


184.1 

220.3 

210.5 

224.7 


193.6 

206.5 

200.6 

Trading portfolio assets

64.3 


61.9 

72.8 

75.3 

92.7 


87.3 

91.5 

92.8 

Derivative financial instrument assets

150.1 


111.5 

133.7 

116.0 

172.8 


149.6 

128.7 

101.8 

Derivative financial instrument liabilities

155.4 


119.0 

142.0 

124.8 

182.3 


157.3 

134.6 

106.7 

Reverse repurchase agreements and other similar secured lending

19.1 


24.7 

68.0 

57.4 

57.1 


62.9 

81.5 

82.1 

Financial assets designated at fair value

59.6 


46.8 

5.6 

5.6 

5.2 


5.7 

10.9 

10.9 

Total assets

618.4 


532.2 

596.1 

566.1 

656.2 


596.5 

608.5 

561.9 

Customer deposits

213.1 


185.6 

207.0 

197.7 

206.2 


188.2 

205.0 

198.0 

Risk weighted assets

202.2 


194.8 

204.0 

195.4 

202.6 


201.7 

205.9 

198.7 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

9.5%


(0.2%)

7.0%

22.5%

(0.1%)


(10.4%)

7.4%

9.6%

Average allocated tangible equity (£bn)

25.1 


24.9 

24.7 

24.7 

25.3 


25.6 

24.6 

24.8 

Cost: income ratio 

63%


81%

73%

50%

81%


103%

72%

63%

Loan loss rate (bps)

50 


65 

42 

38 

32 


44 

34 

30 

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m


£m

£m

£m

£m


£m

£m

£m

Gains on US Lehman acquisition assets


496 


461 

Provisions for UK customer redress  


(218)


32 

Provisions for ongoing investigations and litigation including Foreign Exchange


(145)

(39)

(800)


(750)

(500)

Gain on valuation of a component of the defined retirement benefit liability


133 


 

Excluding notable items, the Barclays Corporate & International return on average tangible equity was 9.5% (Q115: 10.9%).

 

1

As at 31 March 2016 loans and advances included £189.8bn (December 2015: £162.6bn) of loans and advances to customers (including settlement balances of £39.7bn (December 2015: £18.5bn) and cash collateral of £27.6bn (December 2015: £24.8bn)), and £26.1bn (December 2015: £21.5bn) of loans and advances to banks (including settlement balances of £4.2bn (December 2015: £1.6bn) and cash collateral of £7.0bn (December 2015: £5.7bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £32.9bn (December 2015: £32.1bn).

2

As at 31 March 2016 customer deposits included settlement balances of £37.7bn (December 2015: £16.3bn) and cash collateral of £17.2bn (December 2015: £15.9bn).

 

Analysis of Barclays Corporate & International

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

Corporate and Investment Bank

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Analysis of total income

 

 

 

 

 

 

 

 

 

 

Credit

322 


195 

191 

218 

220 


117 

189 

221 

Equities

513 


319 

416 

588 

589 


418 

370 

597 

Macro

573 


382 

487 

582 

657 


436 

472 

510 

Markets

1,408 


896 

1,094 

1,388 

1,466 


971 

1,031 

1,328 

Banking fees

481 


458 

501 

580 

548 


529 

420 

658 

Corporate lending

296 


312 

377 

387 

285 


334 

334 

288 

Transactional banking

408 


415 

419 

416 

413 


404 

420 

385 

Banking

1,185 


1,185 

1,297 

1,383 

1,246 


1,267 

1,174 

1,331 

Other


16 

(17)

495 


(4)

460 

20 

Total income

2,596 


2,097 

2,374 

3,266 

2,713 


2,234 

2,665 

2,679 

Credit impairment (charges)/releases and other provisions

(95)


(83)

(75)

(42)


(26)

(24)

(13)

Total operating expenses

(1,800)


(1,962)

(1,940)

(1,605)

(2,422)


(2,614)

(2,036)

(1,791)

Profit/(loss) before tax  

701 


52 

358 

1,620 

292 


(408)

606 

876 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Risk weighted assets  

172.6 


167.3 

177.4 

170.0 

177.1 


175.2 

180.5 

173.8 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

7.3%


(2.5%)

4.5%

22.3%

(2.5%)


(12.8%)

6.1%

7.7%

Average allocated tangible equity (£bn)

21.6 


21.8 

21.7 

21.7 

22.3 


22.5 

21.6 

21.9 

 

Excluding notable items, the Corporate and Investment Bank return on average tangible equity was 7.3% (Q115: 10.7%).

 

Consumer, Cards and Payments

 

 

 

 

 

 

 

 

 

 

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income

917 


871 

849 

836 

741 


711 

705 

688 

Credit impairment charges and other provisions

(174)


(219)

(160)

(165)

(179)


(190)

(153)

(138)

Total operating expenses

(425)


(449)

(421)

(434)

(359)


(434)

(377)

(339)

Profit before tax

326 


210 

278 

250 

218 


93 

185 

235 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

32.9 


32.1 

30.6 

29.6 

29.8 


29.7 

28.4 

27.0 

Customer deposits

44.2 


41.8 

39.8 

38.4 

40.1 


37.9 

37.1 

33.1 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

23.4%


15.3%

24.7%

23.4%

17.5%


6.6%

17.3%

24.4%

 

Excluding notable items, the Consumer, Cards and Payments return on average tangible equity was 23.4% (Q115: 11.8%).

 

Head Office

 

 

 

 

 

 

 

 

 

 

 

  

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income

(33)


(285)

169 

312 

142 


(36)

100 

15 

Credit impairment releases/(charges) and other provisions   


(1)


Net operating (expenses)/income 

(32)


(285)

170 

311 

142 


(36)

100 

15 

Operating expenses

(85)


(64)

(110)

(64)

(34)


(21)

(10)

(28)

UK bank levy 


(8)


(9)

Litigation and conduct

(7)


(17)

(42)

(6)

(1)


(7)

(4)

(42)

Total operating expenses

(92)


(89)

(152)

(70)

(35)


(37)

(14)

(70)

Other net income/(expenses)


(14)

(95)


314 

(Loss)/profit before tax  

(123)


(388)

20 

242 

12 


(70)

400 

(55)

Attributable (loss)/profit

(92)


(140)

(1)

180 

(28)


47 

226 

33 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Total assets

63.4 


59.4 

61.8 

62.2 

63.6 


61.0 

68.5 

69.0 

Risk weighted assets

40.3 


39.7 

41.3 

41.0 

43.1 


41.8 

41.6 

40.9 

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m


£m

£m

£m

£m


£m

£m

£m

Own credit

(109)


(175)

195 

282 

128 


(62)

44 

(67)

Provisions for ongoing investigations and litigation including Foreign Exchange


(23)

(29)


Losses on sale relating to the Spanish, Portuguese and Italian businesses


(15)

(97)


315 

 

1

Includes Africa Banking assets held for sale and risk weighted assets.

 

Discontinued Operation

On 1 March 2016, Barclays announced its intention to sell down the Group's 62.3% interest in BAGL. This sell down is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required.

 

The Africa Banking business meets the requirements for presentation as a discontinued operation. As such, these results have been presented as two lines on the face of the Group income statement, representing the profit after tax and non-controlling interest in respect of the discontinued operation. Were the market capitalisation of BAGL to fall below the carrying amount of the net assets of BAGL including goodwill on acquisition, a resulting impairment to Barclays' stake in BAGL would also be recognised through these lines.

 

Africa Banking

 

 

 

 

 

 

 

 

 

 

 

  

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Q214

Income statement information

£m


£m

£m

£m

£m


£m

£m

£m

Total income net of insurance claims  

818 


814 

822 

870 

908 


925 

895 

860 

Credit impairment charges and other provisions 

(111)


(93)

(66)

(103)

(91)


(79)

(74)

(99)

Net operating income 

707 


721 

756 

767 

817 


846 

821 

761 

Operating expenses

(477)


(501)

(515)

(536)

(539)


(585)

(557)

(534)

UK bank levy 


(50)


(44)

Litigation and conduct



(1)

(1)

Total operating expenses

(477)


(551)

(515)

(536)

(539)


(630)

(558)

(534)

Other net income



Profit before tax  

231 


173 

242 

232 

280 


218 

264 

229 

Profit after tax

166 


101 

168 

161 

196 


167 

171 

147 

Attributable profit

86 


25 

85 

88 

104 


85 

82 

75 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn


£bn

£bn

£bn

£bn


£bn

£bn

£bn

Total assets

52.7 


47.9 

50.2 

52.2 

55.9 


53.7 

52.9 

50.8 

Risk weighted assets

33.9 


31.7 

33.8 

34.4 

37.3 


36.7 

36.2 

34.9 

 

Performance Management

 

Returns and equity by business

 

 

 

 

 

Three months ended

Three months ended  

 

31.03.16

31.03.15

Profit/(loss) attributable to ordinary equity holders of the parent

£m

£m

Barclays UK  

473 

667 

Barclays Corporate & International  

596 

(7)

Head Office

(94)

(27)

Barclays Core    

975 

633 

Barclays Non-Core  

(599)

(255)

 

 

  

Barclays Group (including Africa Banking discontinued operation)

462 

482 

 

 

 

 

Three months ended

Three months ended  

 

31.03.16

31.03.15

Average allocated tangible equity

£bn

£bn

Barclays UK  

9.3 

9.4 

Barclays Corporate & International  

25.1 

25.3 

Head Office

4.9 

0.9

Barclays Core    

39.3 

35.6 

Barclays Non-Core  

9.0 

12.4 

Barclays Group

48.3 

48.1 

 

 

  

 

Three months ended

Three months ended  

 

31.03.16

31.03.15

Return on average tangible equity

%

%

Barclays UK  

20.5%

28.3%

Barclays Corporate & International  

9.5%

(0.1%)

Barclays Core    

9.9%

7.1%

 

 

 

Barclays Group

3.8%

4.0%

 

1

Profit for the period attributable to ordinary equity holders of the parent includes the tax credit recorded in reserves in respect of interest payments on other equity instruments.

2

Based on risk weighted assets and capital deductions in Head Office plus the residual balance of average tangible ordinary shareholders' equity.

 

Margins and balances

 

 

 

 

 

 

 

 

Three months ended 31.03.16


Three months ended 31.03.15

  

Net interest income

Average customer assets

Net interest margin


Net interest income

Average customer assets

Net interest margin

  

£m

£m

%


£m

£m

%

Barclays UK

 1,501 

 166,727 

 3.62 


 1,486 

 167,507 

 3.60 

Barclays Corporate & International

 974 

 85,010 

 4.61 


 869 

 80,441 

 4.38 

Total Barclays UK and Barclays Corporate & International

 2,475 

 251,737 

 3.95 


 2,355 

 247,948 

 3.85 

Other2  

 212 




 171 



Total net interest income

 2,687 




 2,526 



 

Quarterly analysis for Barclays UK and Barclays Corporate & International

Three months ended 31.12.15

  

Net interest income

Average customer assets

Net interest margin

  

£m

£m

%

Barclays UK

1,509

167,405

3.58

Barclays Corporate & International

965

83,342

4.59

Total Barclays UK and Barclays Corporate & International

2,474

250,747

3.91

  

 

 

 

  

Three months ended 30.09.15

Barclays UK

1,499

167,936

3.54

Barclays Corporate & International

947

81,311

4.62

Total Barclays UK and Barclays Corporate & International

2,446

249,247

3.89

  

 

 

 

  

Three months ended 30.06.15

Barclays UK

1,479

167,546

3.54

Barclays Corporate & International

942

81,115

4.66

Total Barclays UK and Barclays Corporate & International

2,421

248,661

3.91

 

1

Excludes Investment Bank.

2

Other includes Investment Bank, Head Office and Barclays Non-Core. 

 

Condensed Consolidated Financial Statements

 

Consolidated summary income statement

  

Three months ended

Three months ended

Continuing operations

31.03.16

31.03.151

  

£m

£m

Total income net of insurance claims

5,041 

5,650 

Credit impairment charges and other provisions

(443)

(386)

Net operating income

4,598 

5,264 

Operating expenses

(3,747)

(3,067)

Litigation and conduct

(78)

(1,039)

Operating expenses

(3,825)

(4,106)

Other net income

20 

(101)

Profit before tax

793 

1,057 

Tax charge  

(248)

(528)

Profit after tax in respect of continuing operations

545 

529 

Profit after tax in respect of discontinued operation

166 

196 

Profit after tax

711 

725 

  

 

 

Attributable to:

 

 

Ordinary equity holders of the parent

433 

465 

Other equity holders

104 

80 

Total equity holders

537 

545 

Non-controlling interests in respect of continuing operations

94 

88 

Non-controlling interests in respect of discontinued operation

80 

92 

Profit after tax

711 

725 

  

 

 

Earnings per share

 

 

Basic earnings per ordinary share

2.7p

2.9p

Basic earnings per ordinary share in respect of continuing operations

2.2p

2.3p

Basic earnings per ordinary share in respect of discontinued operation

0.5p

0.6p

 

1

Comparatives have been restated to reflect Africa Banking results as a discontinued operation.

2

The profit after tax attributable to other equity holders of £104m (Q115: £80m) is offset by a tax credit recorded in reserves of £29m (Q115: £16m). The net amount of £75m (Q115: £64m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity.

 

Consolidated summary balance sheet

 

 

 

As at

As at

  

31.03.16

31.12.15

Assets

£m

£m

Cash, balances at central banks

50,573 

49,711 

Items in the course of collection from other banks

1,224 

1,011 

Trading portfolio assets

75,550 

77,348 

Financial assets designated at fair value

85,317 

76,830 

Derivative financial instruments

400,592 

327,709 

Available for sale financial investments

87,392 

90,267 

Loans and advances to banks

45,740 

41,349 

Loans and advances to customers

399,375 

399,217 

Reverse repurchase agreements and other similar secured lending

20,296 

28,187 

Goodwill and intangible assets

7,323 

8,222 

Non current assets classified as held for sale

63,377 

7,364 

Other assets

12,117 

12,797 

Total assets

1,248,876 

1,120,012 

  

 

 

Liabilities

 

 

Deposits from banks

53,201 

47,080 

Items in the course of collection due to other banks

927 

1,013 

Customer accounts

418,076 

418,242 

Repurchase agreements and other similar secured borrowing

22,241 

25,035 

Trading portfolio liabilities

34,141 

33,967 

Financial liabilities designated at fair value

96,936 

91,745 

Derivative financial instruments  

395,148 

324,252 

Debt securities in issue

63,988 

69,150 

Subordinated liabilities

21,195 

21,467 

Non current liabilities classified as held for sale

58,152 

5,997 

Other liabilities

16,503 

16,200 

Total liabilities

1,180,508 

1,054,148 

  

  

 

Equity

  

 

Called up share capital and share premium

21,712 

21,586 

Other reserves

3,868 

1,898 

Retained earnings

31,274 

31,021 

Shareholders' equity attributable to ordinary shareholders of the parent

56,854 

54,505 

Other equity instruments  

5,312 

5,305 

Total equity excluding non-controlling interests

62,166 

59,810 

Non-controlling interests

6,202 

6,054 

Total equity

68,368 

65,864 

  

  

 

Total liabilities and equity

1,248,876 

1,120,012 

 

1

Debt securities in issue include covered bonds of £12,852m (December 2015: £12,300m).

 

Consolidated statement of changes in equity


  

 

 

 

 

 

 

Three months ended 31.03.16

Called up share capital and share premium

Other equity instruments

Other reserves1

Retained earnings

Total

Non-controlling interests

Total

equity


£m

£m

£m

£m

£m

£m

£m

Balance as at 1 January 2016

21,586 

5,305 

1,898 

31,021 

59,810 

6,054 

65,864 

Profit after tax

104  

433 

537 

174  

711 

Other comprehensive profit after tax for the period

1,970  

43 

2,013 

160  

2,173 

Issue of shares

126  

119 

245 

245 

Issue and exchange of equity instruments

Dividends

(180) 

(180)

Coupons paid on other equity instruments

(104) 

29 

(75)

(75)

Treasury shares

(372)

(372)

(372)

Other movements

7  

(6) 

Balance as at 31 March 2016

21,712 

5,312 

3,868 

31,274 

62,166 

6,202 

68,368 

 

1

Other reserves includes currency translation reserve of £0.2bn credit (December 2015: £0.6bn debit), available for sale investments of £0.2bn (December 2015: £0.3bn), cash flow hedge reserve of £2.5bn (December 2015: £1.3bn), and other reserves and treasury shares of £0.9bn (December 2015: £0.9bn). 

 

Capital

CRD IV capital

Barclays' current regulatory requirement is to meet a fully loaded CRD IV CET1 ratio comprising the required 4.5% minimum CET1 ratio requirement and, phased in from 2016, a Combined Buffer Requirement currently expected to comprise of a Capital Conservation Buffer (CCB) of 2.5% and a Globally Systemically Important Institution (G-SII) buffer of 2%. In addition, Barclays' Pillar 2A requirement for 2016 as per the PRA's Individual Capital Guidance (ICG) is 3.9% of which 56% will need to be met in CET1 form, equating to approximately 2.2% of RWAs.  The Pillar 2A requirement is subject to at least annual review, and all capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.

 

In addition, a Counter-Cyclical Capital Buffer (CCCB) is required. While currently 0%, the Financial Stability Board has announced that a CCCB of 0.5% on UK exposures will apply from 29 March 2017. Other national authorities also determine the appropriate CCCBs that should be applied to exposures in their jurisdiction. During 2016, CCCBs will start to apply for Barclays' exposures to other jurisdictions; however based on current exposures this is not expected to be material.

 

As at 31 March 2016, Barclays CET1 ratio was 11.3% which exceeds the 2016 transitional minimum requirement of 7.8% including the minimum 4.5% CET1 requirement, 2.2% of Pillar 2A, a 0.625% CCB buffer, a 0.5% G-SII buffer and a 0% Counter-Cyclical Capital Buffer (CCCB). 

 

Capital ratios  

As at

As at

31.03.16

31.12.15

Fully loaded CET1

11.3%

11.4%

PRA Transitional Tier 12,3

14.3%

14.7%

PRA Transitional Total Capital2,3

18.2%

18.6%

  



Capital resources  

£m

£m

Shareholders' equity (excluding non-controlling interests) per the balance sheet

 62,166 

59,810 

Less: other equity instruments (recognised as AT1 capital)

(5,312)

(5,305)

Adjustment to retained earnings for foreseeable dividends

(760)

(631)

  

 

 

Minority interests (amount allowed in consolidated CET1)

1,046 

950 

  

 

 

Other regulatory adjustments and deductions:

 

 

Additional value adjustments (PVA)

(2,124)

(1,602)

Goodwill and intangible assets

(8,457)

(8,234)

Deferred tax assets that rely on future profitability excluding temporary differences

(771)

(855)

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

(2,497)

(1,231)

Excess of expected losses over impairment

(1,377)

(1,365)

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

56 

127 

Defined-benefit pension fund assets

(859)

(689)

Direct and indirect holdings by an institution of own CET1 instruments

(54)

(57)

Other regulatory adjustments

(199)

(177)

Fully loaded CET1 capital 

40,858 

40,741 

  



Additional Tier 1 (AT1) capital  



Capital instruments and related share premium accounts

5,312 

5,305 

Qualifying AT1 capital (including minority interests) issued by subsidiaries  

5,816 

6,718 

Other regulatory adjustments and deductions

(130)

(130)

Transitional Additional Tier 1 capital

10,998 

11,893 

PRA Transitional Tier 1 capital

51,856 

52,634 

  



Tier 2 (T2) capital



Capital instruments and related share premium accounts

1,855 

1,757 

Qualifying T2 capital (including minority interests) issued by subsidiaries

12,741 

12,389 

Other regulatory adjustments and deductions

(253)

(253)

PRA Transitional total regulatory capital

66,199 

66,527 

 

1

The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays' Tier 2 Contingent Capital Notes was 12.5% based on £45.3bn of transitional CRD IV CET1 capital and £363bn of RWAs.

2

The PRA transitional capital is based on the PRA Rulebook and accompanying supervisory statements.

3

As at 31 March 2016, Barclays' fully loaded Tier 1 capital was £46,322m, and the fully loaded Tier 1 ratio was 12.8%. Fully loaded total regulatory capital was £62,322m and the fully loaded total capital ratio was 17.2%. The fully loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV.

4

Of the £11.0bn transitional AT1 capital, fully loaded AT1 capital used for the leverage ratio comprises the £5.3bn capital instruments and related share premium accounts, £0.3bn qualifying minority interests and £0.1bn capital deductions. It excludes legacy Tier 1 capital instruments issued by subsidiaries that are subject to grandfathering.

 

Movement in CET1 capital

Three months

ended

31.03.16

£m

Opening CET1 capital

40,741 

  

 

Profit for the period attributable to equity holders

537 

Own credit

(71)

Dividends paid and foreseen

(204)

Increase in retained regulatory capital generated from earnings

262 

  

 

Net impact of share schemes

(127)

Available for sale reserves

(63)

Currency translation reserves

793 

Other reserves

(28)

Increase in other qualifying reserves

575 

  

 

Retirement benefit reserve

46 

Defined-benefit pension fund asset deduction

(170)

Net impact of pensions

(124)

  

 

Minority interests

96 

Additional value adjustments (PVA)

(522)

Goodwill and intangible assets

(223)

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

84 

Excess of expected loss over impairment

(12)

Direct and indirect holdings by an institution of own CET1 instruments

Other regulatory adjustments

(22)

Increase in regulatory adjustments and deductions

(596)

  

 

Closing CET1 capital

40,858 

 

·

During Q116 the CET1 ratio decreased to 11.3% (December 2015: 11.4%) primarily driven by an increase in RWAs of £4.7bn to £363.0bn

·

CET1 capital increased by £0.1bn to £40.9bn. Significant movements in the period were:

 

-

A £0.3bn increase in regulatory capital generated from earnings after absorbing the impact of own credit and dividends paid and foreseen 

 

-

A £0.6bn increase in other qualifying reserves including a £0.8bn increase in currency translation reserves due to the appreciation of USD, EUR and ZAR against GBP

 

-

A £0.6bn increase in regulatory adjustments and deductions largely as a result of a £0.5bn increase in the PVA deduction driven by changes in methodology and a £0.2bn increase in the goodwill and intangible asset deduction, which included an acquisition of the JetBlue credit card portfolio within US consumer cards

 

Risk Weighted Assets

Risk weighted assets (RWAs) by risk type and business

 


Credit risk


Counterparty credit risk


Market risk


Operational risk

Total RWAs


Std

IRB


Std

IRB

Settle-ment Risk


CVA

Std

IMA




As at 31.03.16

£m

£m


£m

£m

£m


£m

£m

£m


£m

£m

Barclays UK

50,920 



66 


12,174 

69,736 

Barclays Corporate & International

49,288 

79,589 


10,297 

12,307 

120 


4,506 

8,714 

9,678 


27,657 

202,156 

Head Office1

7,533 

21,401 


34 

463 


311 

379 

2,144 


8,003 

40,271 

Barclays Core

151,910 


126 


4,883 

9,093 

11,822 


47,834 

312,163 

Barclays Non-Core

8,340 

12,914 


1,744 

10,402 

13 


4,028 

950 

3,659 


8,826 

50,876 

Barclays Group

71,637 

164,824 


12,172 

23,172 

139 


8,911 

10,043 

15,481 


56,660 

363,039 















As at 31.12.15









Barclays UK

6,562 

50,763 

26 

12,174 

69,525 

Barclays Corporate & International

45,892 

77,275 


10,463 

11,055 

516 


3,406 

8,373 

10,196 


27,657 

194,833 

Head Office1

8,291 

20,156 


54 

538 


382 

399 

1,903 


8,003 

39,734 

Barclays Core

60,745 

148,194 


10,543 

11,593 

524 


3,788 

8,772 

12,099 


47,834 

304,092 

Barclays Non-Core

8,704 

12,797 


1,653 

9,430 


7,480 

1,714 

3,679 


8,826 

54,284 

Barclays Group

69,449 

160,991 


12,196 

21,023 

525 


11,268 

10,486 

15,778 


56,660 

358,376 

 

Movement analysis of risk weighted assets


Credit risk

Counterparty credit risk

Market risk

Operational risk

Total RWAs

Risk weighted assets

£bn

£bn

£bn

£bn

£bn

As at 31.12.15

230.4 

33.7 

37.6 

56.7 

358.4 

Book size

1.0 

2.0 

(0.5)

2.5 

Acquisition and disposals

(0.1)

(0.1)

Book quality

1.0 

(0.2)

0.8 

Model updates

(0.1)

(0.1)

Methodology and policy

(1.0)

0.1 

(2.8)

(3.7)

Foreign exchange movements2

5.1 

0.1 

5.2 

As at 31.03.16

236.4 

35.5 

34.4 

56.7 

363.0 

 

1

Includes Africa Banking discontinued operation.

2

Foreign exchange movement does not include FX for modelled counterparty risk or modelled market risk.

 

RWAs increased £4.7bn to £363.0bn, due to:

·

Book size increased RWAs by £2.5bn primarily driven by an increase in derivative exposures in CIB and Non-Core and increased term lending to UK and European corporates

·

Methodology and policy decreased RWAs by £3.7bn driven by the effect of collateral modelling for mismatched FX collateral on average CVA, and updates impacting credit conversion factors and standardised general market risk

·

Foreign exchange movements increased RWAs by £5.2bn due to the appreciation of ZAR and USD against GBP

 

Leverage

Leverage ratio and exposures

Effective 1 January 2016, Barclays is required to disclose a leverage ratio and an average leverage ratio applicable to the Group:

-

The leverage ratio is consistent with the December 2015 method of calculation and has been included in the table below. The calculation uses the end point definition of Tier 1 capital for the numerator and the definition of leverage exposure. The current expected minimum fully loaded requirement is 3%, although this could be impacted by the Basel Consultation on the Leverage Framework.

-

The average leverage ratio as outlined by the PRA Supervisory Statement SS45/15 and the updated PRA rulebook is calculated as the capital measure divided by the exposure measure, where the capital and exposure measure is based on the average of the last day of each month in the quarter. The expected end point minimum requirement is 3.8% comprising of a 3% minimum requirement, a fully phased in G-SII additional leverage ratio buffer (G-SII ALRB) and a countercyclical leverage ratio buffer (CCLB), which is applicable from 29 March 2017.

At 31 March 2016, Barclays' leverage ratio was 4.3% (December 2015: 4.5%) and the average leverage ratio was 4.1%, which exceeds the transitional minimum requirement for Barclays of 3.175%, comprising of the 3% minimum requirement and a phased in G-SII ALRB.  In addition, this exceeds the expected end point minimum requirement of 3.8%.

 

  

As at 31.03.16

As at 31.12.15

Leverage exposure

£bn

£bn

Accounting assets

 

 

Derivative financial instruments

 401 

 328 

Cash collateral

 70 

 62 

Reverse repurchase agreements and other similar secured lending

 20 

 28 

Financial assets designated at fair value

 85 

 77 

Loans and advances and other assets

 673 

 625 

Total IFRS assets

 1,249 

 1,120 

  

 

 

Regulatory consolidation adjustments

(10)

(10)

  

 

 

Derivatives adjustments

  

 

Derivatives netting  

(365)

(293)

Adjustments to cash collateral

(56)

(46)

Net written credit protection

16 

 15 

Potential Future Exposure (PFE) on derivatives

134 

129 

Total derivatives adjustments

(271)

(195)

  

  

 

Securities financing transactions (SFTs) adjustments

 18 

16 




Regulatory deductions and other adjustments

(16)

(14)

Weighted off-balance sheet commitments

 112 

111 

Total leverage exposure

 1,082 

 1,028 

  

 

 

Fully loaded CET 1 capital

 40.9 

40.7 

Fully loaded AT1 capital

 5.5 

5.4 

Fully loaded Tier 1 capital

 46.3 

 46.2 

  

 

 

Leverage ratio

4.3%

4.5%

 

1        Included within financial assets designated at fair value are reverse repurchase agreements designated at fair value of £61bn (December 2015: £50bn).

 

During Q116, the leverage ratio decreased to 4.3% (December 2015: 4.5%) driven by a seasonal increase in the leverage exposure of £54bn to £1,082bn:

·

Loans and advances and other assets increased by £48bn to £673bn. This was primarily due to an increase of £24bn in settlement balances, lending growth of £3bn in Barclays Corporate & International as well as a £4bn increase in Africa Banking reflecting the appreciation of ZAR against GBP

·

Net derivative leverage exposure, excluding PFE, remained flat as an increase in balance sheet assets was offset by an increase in regulatory derivative netting

·

PFE on derivatives increased by £5bn to £134bn primarily as a result of the appreciation of USD and EUR against GBP

The average leverage exposure measure for Q116 was £1,134bn resulting in an average leverage ratio of 4.1%. The CET1 capital held against the 0.175% transitional G-SII ALRB was £1.9bn. There is no current impact for the CCLB for the group. 

The difference between the average leverage ratio and the leverage ratio was primarily driven by higher positions in January and February within trading portfolio assets, settlement balances, and cash and balances at central banks.

 

Shareholder Information

 

Results timetable

Date

2016 interim results announcement

29 July 2016

 

  

 

 

 

 

% Change

Exchange rates2

31.03.16

31.12.15

31.03.15


31.12.15

31.03.15

Period end - USD/GBP

1.44 

1.48 

1.49 


(3%)

(3%)

3 Month average - USD/GBP

1.44 

1.52 

1.51 


(5%)

(5%)

Period end - EUR/GBP

1.26 

1.36 

1.38 


(7%)

(9%)

3 Month average - EUR/GBP

1.30 

1.39 

1.35 


(6%)

(4%)

Period end - ZAR/GBP

21.17 

23.14 

18.00 


(9%)

18%

3 Month average - ZAR/GBP

22.72 

21.56 

17.79 


5%

28%

 

 

 

 

 

 

 

Share price data

31.03.16

31.12.15

31.03.15



  

Barclays PLC (p)

150.00 

218.90 

242.60 



  

Barclays PLC number of shares (m)

16,844 

16,805 

16,717 



  

Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)

149.59 

143.49 

185.00 



  

Barclays Africa Group Limited (formerly Absa Group Limited)

number of shares (m)

848 

848 

848 



  

 

 

 

 

 

 

 

For further information please contact

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor relations

Media relations


  

Kathryn McLeland +44 (0) 20 7116 4943

Thomas Hoskin +44 (0) 20 7116 4755


  

 

 

 

 

 

 

 

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


  

 

 

 

 

 

 

 

Registered office

 

 

 

 

 

 

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

  

 

 

 

 

 

 

Registrar  

 

 

 

 

 

 

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

Tel: 0371 384 20554 from the UK or +44 (0) 121 415 7004 from overseas.

 

1

Note that this announcement date is provisional and subject to change.

2

The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into GBP for accounting    purposes. 

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.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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