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Barclays PLC (BARC)

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Friday 29 July, 2016

Barclays PLC

Half-year Report

RNS Number : 5909F
Barclays PLC
29 July 2016
 

 

Barclays PLC

Results Announcement

 

30 June 2016

 

 

Table of Contents

 

Results Announcement

Page

Performance Highlights

2-4

Group Chief Executive Officer's Review

5

Group Finance Director's Review

6-9

Results by Business

 

- Barclays UK

10-12

- Barclays Corporate & International

13-16

- Head Office

17

- Barclays Non-Core

18-19

- Africa Banking - Discontinued Operation

20

Quarterly Results Summary

21-23

Quarterly Core Results by Business

24-27

Quarterly Africa Banking - Discontinued Operation Results

28

Performance Management


- Margins and balances

29

Risk Management


- Overview

30

- Funding Risk - Liquidity

31-35

- Funding Risk - Capital

36-40

- Credit Risk

41-49

- Market Risk

50-52

Statement of Directors' Responsibilities

53

Independent Auditors' Review Report to Barclays PLC

54

Condensed Consolidated Financial Statements

55-60

Financial Statement Notes

61-97

Shareholder Information

98

 

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 six months ended 30 June 2016 to the corresponding six months of 2015 and balance sheet analysis as at 30 June 2016 with comparatives relating to 31 December 2015. 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; the abbreviations '€m' and '€bn' represent millions and thousands of millions of Euros 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 home.barclays/results.

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; the gain on disposal of Barclays' share of Visa Europe Limited 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.

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

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

The information in this announcement, which was approved by the Board of Directors on 28 July 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 home.barclays/results 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-Core, 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 exiting the Eurozone; the implications of the results of the 23 June 2016 referendum in the United Kingdom and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; 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

 

·

Group profit before tax of £2,063m (H115: £2,602m) reflected an increased Core profit before tax of £3,967m (H115: £3,347m) and Non-Core losses before tax of £1,904m (H115: £745m). Excluding notable items and an impairment of £372m in respect of the French retail, and wealth and investment management businesses, Group profit before tax was £2,037m (H115: £3,128m)

·

Group return on average tangible equity (RoTE) of 4.8% (H115: 6.9%) reflected attributable profit in Core of £2,444m (H115: £2,000m) and the attributable loss in Non-Core of £1,490m (H115: £582m)

·

Core profit before tax increased 19% to £3,967m including a gain of £615m on the disposal of Barclays' share of Visa Europe Limited and an additional provision of £400m relating to UK customer redress. Core RoTE was 12.5% (H115: 11.3%) on an increased average tangible equity base of £40bn (H115: £36bn). Core basic earnings per share contribution was 14.8p (H115: 12.1p)

·

Non-Core loss before tax was £1,904m (H115: £745m) reflecting the continued execution of our strategy. The loss included the impairment of £372m in respect of the assets of the French retail, and wealth and investment management businesses that are held for sale

·

Barclays UK delivered a strong underlying RoTE of 19.4% (H115: 21.9%). Underlying profit before tax decreased 4% to £1,329m driven by lower interchange fee income in Barclaycard Consumer UK and an increase in impairment. Net interest margin increased 2bps to 3.59%

·

Barclays Corporate & International delivered an underlying RoTE of 10.7% (H115: 12.4%). Underlying income remained in line with strong growth in Consumer, Cards and Payments and whilst income decreased in Corporate & Investment Bank (CIB), it was resilient in challenging market conditions

·

Momentum in the execution of the Non-Core strategy continued with good progress on business sales and the rundown of the derivative portfolio during the period. Period end allocated tangible equity in Non-Core reduced to £8bn (December 2015: £9bn), with risk weighted assets (RWAs) decreasing by a further £8bn to £46.7bn in H116, despite adverse market movements

·

Common equity tier 1 (CET1) ratio increased to 11.6% (December 2015: 11.4%). CET1 capital increased £1.6bn to £42.4bn primarily through profits generated in the period of £1.3bn. Group RWAs continue to be actively managed with the increase of £8bn to £366bn being principally due to the appreciation of USD and EUR against GBP

·

The leverage ratio decreased to 4.2% (December 2015: 4.5%), with leverage exposure increasing by £127bn to £1,155bn primarily due to higher cash and settlement balances, following increased client activity, and the appreciation of USD and EUR against GBP

·

Tangible net asset value per share increased to 289p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements

Progress on strategy execution in Q216

·

Sale of 12.2% of Barclays Africa Group Limited (BAGL) issued share capital. Barclays now holds 50.1% of BAGL's issued share capital

·

Completion of the sale of the retail banking, wealth, and investment management, and parts of the Corporate Banking business in Portugal

·

Announcement of exclusive discussions with AnaCap Financial Partners for the potential sale of the French retail, and wealth and investment management businesses

·

Restructuring of the terms of the Education, Social Housing and Local Authority (ESHLA) loans with Lender Option Borrower Option (LOBO) features. These loans are now classified as loans held at amortised cost, reducing the ESHLA loans held at fair value by £8bn and the fair value volatility on the ESHLA portfolio going forward

·

Redemption of $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares

 

Barclays Group results  

 

for the half year ended

30.06.16

30.06.15

YoY

 

£m

£m

% Change

Total income net of insurance claims

11,013 

12,111 

(9)

Credit impairment charges and other provisions

(931)

(779)

(20)

Net operating income  

10,082 

11,332 

(11)

Operating expenses  

(7,172)

(6,624)

(8)

Litigation and conduct

(525)

(1,966)

73 

Total operating expenses

(7,697)

(8,590)

10 

Other net expenses

(322)

(140)

  

Profit before tax  

2,063 

2,602 

(21)

Tax charge

(715)

(852)

16 

Profit after tax in respect of continuing operations

1,348 

1,750 

(23)

Profit after tax in respect of discontinued operation

311 

358 

(13)

Non-controlling interests in respect of continuing operations

(186)

(173)

(8)

Non-controlling interests in respect of discontinued operation

(155)

(165)

Other equity holders

(208)

(159)

(31)

Attributable profit  

1,110 

1,611 

(31)

 

 

 

  

Performance measures

 

 

 

Return on average tangible shareholders' equity

4.8%

6.9%

  

Average tangible shareholders' equity (£bn)

48 

48 

  

Cost: income ratio

70%

71%

  

Loan loss rate (bps)

39 

35 

  

 

 

 

  

Basic earnings per share

6.9p

9.9p

  

Dividend per share  

1.0p

2.0p

  

  

 

 

 

Balance sheet and capital management

As at

30.06.16

As at

31.12.15

  

Tangible net asset value per share

289p

275p

  

Common equity tier 1 ratio

11.6%

11.4%

  

Common equity tier 1 capital

£42.4bn

£40.7bn

  

Risk weighted assets  

£366bn

£358bn

  

Leverage ratio

4.2%

4.5%

  

Fully loaded tier 1 capital

£47.9bn

£46.2bn

  

Leverage exposure  

£1,155bn

£1,028bn

  

 

 

 

 

Funding and liquidity

 

 

  

Group liquidity pool

£149bn

£145bn

  

Estimated CRD IV liquidity coverage ratio

124%

133%

  

Estimated net stable funding ratio  

106%

106%

  

Loan: deposit ratio

85%

86%

  

 

1

Refer to page 20 for further information on the Africa Banking discontinued operation.

2

The profit after tax attributable to other equity holders of £208m (H115: £159m) is offset by a tax credit recorded in reserves of £58m (H115: £32m). The net amount of £150m (H115: £127m), 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 half year ended

30.06.16

30.06.15

YoY

 

30.06.16

30.06.15

YoY

 

£m

£m

% Change

 

£m

£m

% Change

Total income net of insurance claims

11,599 

11,646 

 

(586)

465 

  

Credit impairment charges and other provisions

(876)

(718)

(22)

 

(55)

(61)

10 

Net operating income/(expenses)  

10,723 

10,928 

(2)

 

(641)

404 

  

Operating expenses

(6,315)

(5,679)

(11)

 

(857)

(945)

Litigation and conduct

(432)

(1,834)

76 

 

(93)

(132)

30 

Total operating expenses

(6,747)

(7,513)

10 

 

(950)

(1,077)

12 

Other net expenses

(9)

(68)

87 

 

(313)

(72)

  

Profit/(loss) before tax  

3,967 

3,347 

19 

 

(1,904)

(745)

  

Tax (charge)/credit

(1,181)

(1,088)

(9)

 

466 

236 

97 

Profit/(loss) after tax

2,786 

2,259 

23 

 

(1,438)

(509)

  

Non-controlling interests

(164)

(132)

(24)

 

(22)

(41)

46 

Other equity holders

(178)

(127)

(40)

 

(30)

(32)

Attributable profit/(loss)

2,444 

2,000 

22 

 

(1,490)

(582)

  

 

 

 

 

 

 

 

  

Performance measures

 

 

 

 

 

 

 

Return on average tangible equity

12.5%

11.3%

  

 

 

 

 

Average allocated tangible equity (£bn)

40 

36 

  

 

12 

  

Period end allocated tangible equity (£bn)

41 

37 

  

 

10 

  

Cost: income ratio

58%

65%

  

 

n/m

n/m

  

Loan loss rate (bps)

43 

38 

  

 

15 

17 

  

Basic earnings/(loss) per share contribution

14.8p

12.1p

  

 

(8.8p)

(3.5p)

  

 

 

 

 

 

 

 

 

 

As at

As at

  

 

As at

As at

  

Capital management

30.06.16

31.12.15

  

 

30.06.16

31.12.15

  

Risk weighted assets

£320bn

£304bn

  

 

£47bn

£54bn

  

Leverage exposure

£1,021bn

£879bn

  

 

£134bn

£149bn

  

 

 

 

 

 

 

 

 

Notable items for the half year ended

30.06.16

30.06.15

  

 

30.06.16

30.06.15

  

  

£m

£m

  

 

£m

£m

  

Own credit  

183 

410 

  

 

  

Gain on disposal of Barclays' share of Visa Europe Limited  

615 

  

 

  

Gains on US Lehman acquisition assets   

496 

  

 

  

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  

(400)

(967)

  

 

(65)

  

Losses on sale relating to the Spanish business

(97)

  

 

(21)

  

Excluding notable items, the Core return on average tangible equity was 10.8% (H115: 13.7%) and the Core basic earnings per share was 12.9p (H115: 15.0p). Excluding notable items, the Non-Core basic loss per share was 8.8p (H115: 3.0p).

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.

 

  

Half year ended

Half year ended

  

 

30.06.16

30.06.15

YoY

Income by business

£m

£m

% Change

Barclays UK

3,746 

3,635 

Barclays Corporate & International

7,552 

7,556 

Head Office

301 

455 

(34)

Barclays Core

11,599 

11,646 

Barclays Non-Core

(586)

465 

  

Barclays Group

11,013 

12,111 

(9)

 

Profit/(loss) before tax by business

 

 

  

Barclays UK

1,080 

712 

52 

Barclays Corporate & International

2,753 

2,380 

16 

Head Office

134 

255 

(47)

Barclays Core

3,967 

3,347 

19 

Barclays Non-Core

(1,904)

(745)

  

Barclays Group

2,063 

2,602 

(21)

 

Group Chief Executive Officer's Review

"This has been a quarter of very encouraging progress against our strategy.

Our Core businesses, Barclays UK and Barclays Corporate & International, continue to thrive. Both produced double digit ROTEs in the half, which aggregate to a collective 12.5%, demonstrating the already high quality franchises at the centre of the future of this Group.

Non-Core rundown - the key to unlocking the full earnings power of that Core - has good momentum, and we remain committed to closing the unit in 2017.

In May we commenced the sell down of our stake in Barclays Africa, disposing of 12.2% in a successful and significantly over-subscribed placing. Given the strong level of interest in the asset we have increased confidence in our ability to deconsolidate Africa.

Cost remains firmly under control and we are on track to meet our target of £12.8bn in Core expenses for 2016 on a constant currency basis. Beyond this we are today providing additional guidance on costs for Non-Core in 2017 to be in a range of between £400-£500 million, significantly below the expected 2016 level.

And we are pleased to have been able to strengthen capital in the quarter to a CET1 ratio of 11.6%.

Our priorities remain: strengthening our Core businesses; closing Barclays Non-Core as fast as possible; progressing the sell down of our stake in Barclays Africa to a point where we can deconsolidate it; eliminating costs in both Core and Non-Core; dealing with legacy issues; and steadily strengthening our capital position.

Taken together, the picture in the second quarter is one of strong and accelerating progress against our strategy. We remain confident that it is the right plan for Barclays, and see no reason to adjust it, or the pace of delivery, in light of the vote by the UK last month to exit the EU.

Given the inherent diversification of our business model, coupled with a longstanding conservative approach to risk, Barclays is well positioned to weather any potential economic consequences of that decision. We are very much open for business, and fully committed to supporting our customers and clients, and the real economy, through this period of uncertainty."

 

James E Staley, Group Chief Executive Officer

 

Group Finance Director's Review

Group performance in the half was impacted by the results of Non-Core, which reported a loss before tax of £1,904m (H115: £745m) driven by net negative income of £586m (H115: positive income of £465m), as the momentum in the rundown continued. Non-Core results included fair value losses on the ESHLA portfolio of £424m (H115: £175m) and an impairment of £372m in respect of the assets of the French retail, and wealth and investment management businesses held for sale. Excluding this impairment and notable items, Group profit before tax was £2,037m (H115: £3,217m).

The Core business performed well, with a RoTE of 12.5% (H115: 11.3%) on an increased average tangible equity base of £40bn (H116: £36bn). This was driven by steady performance in Barclays UK, and solid performance in Barclays Corporate & International. CIB results were resilient, despite the challenging market conditions, particularly in Credit, while substantial business growth in Consumer, Cards and Payments drove a significant increase in the profit before tax. Core results included a £615m (H115: £nil) gain following the completion of the sale of Barclays' share of Visa Europe Limited to Visa Inc. and an increase in provisions for UK customer redress of £400m (H115: £967m).

Total Core operating expenses reduced 10% to £6,747m driven by lower litigation and conduct charges, savings from strategic cost programmes and reduced compensation costs, partially offset by appreciation of the average USD and EUR against GBP and increased structural reform programme implementation costs.

 

Group performance

·

Profit before tax decreased 21% to £2,063m primarily driven by the loss before tax in Non-Core of £1,904m (H115: £745m) and a 19% increase in Core profit before tax of £3,967m

·

Return on average tangible shareholders' equity was 4.8% (H115: 6.9%) and basic earnings per share was 6.9p (H115: 9.9p)

·

Total income net of insurance claims decreased 9% to £11,013m as Non-Core income reduced to a net expense of £586m (H115: income of £465m). Core income was in line at £11,599m (H115: £11,646m)

·

Credit impairment charges increased £152m to £931m primarily driven by the impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector, and an increase in Barclaycard Consumer UK impairment due to refinement of impairment modelling. The loan loss rate increased 4bps to 39bps whilst underlying delinquency rates remained stable

·

Total operating expenses reduced 10% to £7,697m reflecting reduced litigation and conduct charges, and savings from strategic cost programmes, partially offset by restructuring and structural reform programme implementation costs, and continued investment in Consumer, Cards and Payments. Total operating expenses included a £400m (H115: £1,032m) increase in provisions for UK customer redress

·

The effective tax rate on profit before tax increased to 34.7% (H115: 32.7%)

·

Profit after tax in respect of continuing operations decreased 23% to £1,348m. Profit after tax in relation to the Africa Banking discontinued operation decreased 13% to £311m driven by the depreciation of average ZAR against GBP

·

Notable items were a net profit before tax of £398m (H115: loss of £615m). H116 notable items comprised provisions for UK customer redress of £400m (H115: £1,032m), a £615m (H115: £nil) gain on disposal of Barclays' share of Visa Europe Limited and an own credit gain of £183m (H115: £410m)

·

Group income statement performance was materially impacted by the appreciation of average USD and EUR against GBP, positively benefiting income and adversely affecting impairment and operating expenses

All performance commentary which follows is on an underlying basis, excluding notable items.

 

Core performance

·

Underlying Core performance generated a RoTE of 10.8% (H115: 13.7%) reflecting an 8% reduction in profit before tax to £3,569m and a £4bn increase in average tangible equity to £40bn as capital was redeployed from Non-Core

·

Underlying total income was 1% up at £10,801m, as a 19% increase in Consumer, Cards and Payments to £1,881m was partially offset by the impact of challenging market conditions in CIB where total income reduced 5% to £5,207m. Barclays UK underlying total income was 1% down at £3,595m primarily reflecting the impact of the European Interchange Fee Regulation

·

Credit impairment charges increased £158m to £876m primarily driven by the impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector, and an increase in Barclaycard Consumer UK due to refinement of impairment modelling

·

Underlying total operating expenses increased 3% to £6,347m reflecting the appreciation of average USD and EUR against GBP and increased structural reform programme implementation costs, partially offset by savings from strategic cost programmes

Barclays UK

·

Underlying RoTE was 19.4% (H115: 21.9%)

·

Underlying profit before tax decreased 4% to £1,329m driven by a 1% decrease in total income, primarily due to the impact of the European Interchange Fee Regulation, and a 10% increase in credit impairment charges, partially offset by a 1% reduction in total operating expenses

·

Credit impairment charges increased 10% to £366m primarily due to the refinement of impairment modelling in Barclaycard Consumer UK, whilst the 30 day and 90 day arrears rates remained stable year-on-year 

·

Underlying total operating expenses reduced 1% reflecting savings realised from strategic cost programmes, partially offset by structural reform programme implementation costs

Barclays Corporate & International

·

Underlying RoTE was 10.7% (H115: 12.4%)

·

Underlying profit before tax decreased 10% to £2,289m driven by a 4% increase in operating expenses due to the appreciation of average USD and EUR against GBP, and increased structural reform programme implementation costs, in addition to a 33% increase in credit impairment charges largely in respect of counterparties in the oil and gas sector

·

Underlying total income was broadly in line at £7,088m (H115: £7,060m), including the appreciation of average USD and EUR against GBP, with Consumer, Cards and Payments income increasing 19%, driven by continued growth in Barclaycard US, Germany and Merchant Acquiring. CIB income decreased 5% as Markets income reduced 6%, within which Equities and Macro were 22% and 4% lower respectively, relative to a strong H115 performance, partially offset by a 35% increase in Credit. Banking income decreased 5%

Head Office

·

Underlying loss before tax was £49m (H115: loss of £58m) reflecting the net result from treasury operations, including one-off gains from the buyback of subordinated debt in Q116

 

Non-Core performance

·

The Non-Core rundown remains on track. As part of this, on 27 April 2016, Barclays announced that it had entered into exclusive discussions with AnaCap Financial Partners for the potential sale of its French retail, and wealth and investment management businesses. Other net expenses included a £372m impairment associated with these assets

·

During Q216, the terms of the ESHLA portfolio loans with LOBO features were restructured. As a result of the restructuring, a one-off loss of £182m was recognised in Non-Core income in Q216. The restructuring resulted in the derecognition of £8bn of existing Level 3 fair valued loan assets with the new restructured assets now measured on an amortised cost basis. As a result, Barclays will benefit from reduced fair value volatility on the ESHLA portfolio going forward

·

Non-Core RWAs reduced to £46.7bn (December 2015: £54.3bn), despite the appreciation of USD and EUR against GBP, reflecting a £3bn reduction in Derivatives, a £3bn reduction in Securities and loans and a £1bn reduction in Businesses RWAs, including a £1.8bn reduction following the completion of the sale of the retail banking, wealth and investment management and part of the Corporate Banking business in Portugal

·

Underlying loss before tax increased to £1,904m (H115: £659m) driven by a £1,051m reduction in total income to a net expense of £586m including fair value losses of £424m (H115: £175m) on the ESHLA portfolio, a one-off loss of £182m due to the restructuring of the ESHLA portfolio LOBO loan terms as well as lower income following the completion of the sale of the Barclays Wealth Americas, UK Secured Lending, and Portuguese retail and insurance businesses. Derivatives income reduced £135m to an expense of £198m reflecting the active rundown of the portfolios and funding costs

·

Underlying operating expenses reduced 6% reflecting cost savings from ceasing certain investment banking activities in a number of countries, the completion of the sale of several businesses and the rundown of portfolios, partially offset by a £180m increase in restructuring charges

 

Group capital, leverage and balance sheet

·

The leverage ratio decreased to 4.2% (December 2015: 4.5%) driven by the increase in leverage exposure primarily due to balance sheet movements

·

Leverage exposure increased 12% to £1,155bn, while total assets increased 21% to £1,351bn from 31 December 2015

 

-

Total loans and advances and other assets increased £93bn to £718bn. The increase was primarily driven by a £27bn increase in cash and balances at central banks due to an increase in the cash element of the Group liquidity pool in preparation for the EU referendum, a £26bn increase in settlement balances following increased client activity, lending growth of £14bn within Barclays Corporate & International and an £8bn 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 assets of £117bn to £445bn was offset by an increase in derivative liabilities resulting in regulatory derivative netting increasing £109bn to £402bn. The increase was mostly within interest rate derivatives and foreign exchange derivatives reflecting a decrease in the major forward interest rates and appreciation of all major currencies against GBP

·

The fully loaded CRD IV CET1 ratio increased to 11.6% (December 2015: 11.4%) reflecting an increase in CET1 capital of £1.6bn to £42.4bn, whilst RWAs increased by £8bn to £366bn

 

-

The increase in CET1 capital was largely driven by profits generated in the period and favourable movements in other qualifying reserves which included the currency translation reserves as a result of the appreciation of all major currencies against GBP

 

-

The increase in RWAs was principally due to the appreciation of USD, EUR and ZAR against GBP, which more than offset underlying RWA reductions in Non-Core

·

Tangible net asset value per share increased to 289p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements

 

Group funding and liquidity

·

The Group continued to maintain surpluses to its internal and regulatory requirements in H116 with a liquidity pool of £149bn (December 2015: £145bn). The Liquidity Coverage Ratio (LCR) decreased to 124% (December 2015: 133%), equivalent to a surplus of £29bn (December 2015: £37bn) driven primarily by the early repayment of the Bank of England's Funding for Lending Scheme of £12bn in Q116 as Barclays optimised its funding cost

·

Wholesale funding outstanding excluding repurchase agreements increased £12bn to £154bn, driven by the prudent management of the liquidity position in the immediate run-up to the 23 June 2016 referendum in the United Kingdom. The Group issued £5.7bn of senior unsecured debt and capital transactions from the holding company in H116, of which £4.2bn and £0.6bn in public and private senior unsecured debt respectively, and £0.9bn of subordinated debt. £6.1bn of Barclays Bank PLC senior debt and capital instruments have been bought back or called during H116. Proceeds raised by Barclays PLC have been used to invest in Barclays Bank PLC instruments in each case with a corresponding ranking

 

Other matters

·

On 5 May 2016, Barclays sold 103.6m ordinary shares in the capital of BAGL, representing 12.2% of BAGL issued share capital at a price of ZAR 126 per share through an accelerated bookbuild placing. The placing resulted in a proforma 10bps increase to the CET1 ratio in Q216. Barclays now holds 424.7m ordinary shares in the capital of BAGL, representing 50.1% of BAGL's issued share capital. BAGL remains fully consolidated within the Group at 30 June 2016

·

On 10 May 2016, Barclays announced it would exercise its right to redeem its $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares on their optional redemption date of 15 June 2016. The redemption resulted in a proforma 6bps decrease to the CET1 ratio in Q216, but will result in an ongoing reduction in preference share dividends payable of $89m per annum from 15 June 2016 onwards 

·

The acquisition of Visa Europe Limited by Visa Inc. completed on 21 June 2016 resulted in the recognition of a pre-tax gain on disposal of £615m in income in Q216. £396m of this amount had previously been recognised in Available for Sale Reserves in Q415

·

Additional UK customer redress provisions of £400m (H115: £1,032m) relating to Payment Protection Insurance (PPI) were recognised in Q216, reflecting an updated estimate of costs, primarily relating to ongoing remediation programmes

·

H116 included an own credit gain of £183m (H115: £410m)

 

Dividends

·

 An interim dividend of 1.0p per share will be paid on 19 September 2016

 

Outlook and guidance

·

2016 Core cost guidance of £12.8bn, excluding litigation and conduct charges, and subject to foreign currency movements1, remains unchanged

·

The existing Non-Core income and operating expenses guidance for 2016 remains unchanged. 2017 Non-Core operating expenses are expected to be within the range of £400m to £500m excluding notable items. The Non-Core RWA guidance of around £20bn in 2017 remains unchanged     

 

1

2016 Core cost guidance of £12.8bn assumed an average USD/GBP exchange rate of 1.42.

 

Tushar Morzaria, Group Finance Director

 

Results by Business

 

Barclays UK  

Half year ended

Half year ended


30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Net interest income

2,977 

2,965 

-

Net fee, commission and other income  

769 

670 

15 

Total income

3,746 

3,635 

Credit impairment charges and other provisions

(366)

(333)

(10)

Net operating income

3,380 

3,302 

Operating expenses  

(1,899)

(1,619)

(17)

Litigation and conduct  

(400)

(969)

59 

Total operating expenses

(2,299)

(2,588)

11 

Other net expenses

(1)

(2)

50 

Profit before tax

1,080 

712 

52 

Attributable profit

608 

490 

24 

  

 

 

 

  

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to customers at amortised cost

166.0 

166.1 

166.1 

Total assets  

204.6 

202.5 

202.2 

Customer deposits  

181.7 

176.8 

171.6 

Risk weighted assets

67.1 

69.5 

71.7 

  

 

 

 

 

Half year ended

Half year ended


Key facts  

30.06.16

30.06.15


Average LTV of mortgage portfolio

47%

51%


Average LTV of new mortgage lending

63%

62%


Number of branches

1,331

1,448


Barclays mobile banking customers  

5.2m

4.2m


30 day arrears rate - Barclaycard Consumer UK

2.3%

2.4%


  

 

 

 

Performance measures

 

 

 

Return on average tangible equity

13.6%

10.6%


Average allocated tangible equity (£bn)

9.1 

9.4 


Cost: income ratio

61%

71%


Loan loss rate (bps)

43 

40 


Loan: deposit ratio

91%

97%


Net interest margin  

3.59%

3.57%


  

 

 

 

Notable items  

£m

£m


Gain on disposal of Barclays' share of Visa Europe Limited   

151 

-


Provisions for UK customer redress  

(400)

(967)


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 19.4% (H115: 21.9%).

1

Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.

 

 

Analysis of Barclays UK  

Half year ended

Half year ended


30.06.16

30.06.15

YoY

Analysis of total income  

£m

£m

% Change

Personal Banking  

1,987 

1,832 

Barclaycard Consumer UK  

954 

1,008 

(5)

Wealth, Entrepreneurs & Business Banking  

805 

795 

Total income

3,746 

3,635 

  

 

 

 

Analysis of credit impairment charges and other provisions




Personal Banking  

(86)

(119)

28 

Barclaycard Consumer UK  

(274)

(201)

(36)

Wealth, Entrepreneurs & Business Banking  

(6)

(13)

54 

Total credit impairment charges and other provisions  

(366)

(333)

(10)

  

 

 

 

  

As at 30.06.16

As at 31.12.15

As at 30.06.15

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

Personal Banking  

134.7 

134.0 

134.4 

Barclaycard Consumer UK  

16.2 

16.2 

15.8 

Wealth, Entrepreneurs & Business Banking  

15.1 

15.9 

15.9 

Total loans and advances to customers at amortised cost

166.0 

166.1 

166.1 

  

 

 

 

Analysis of customer deposits




Personal Banking  

134.8 

131.0 

126.7 

Barclaycard Consumer UK  

Wealth, Entrepreneurs & Business Banking  

46.9 

45.8 

44.9 

Total customer deposits  

181.7 

176.8 

171.6 

 

Barclays UK

Income statement - H116 compared to H115

·

Profit before tax increased 52% to £1,080m. Underlying profit before tax, excluding the impact of notable items decreased 4% to £1,329m driven by reduced income and an increase in credit impairment charges, partially offset by a reduction in operating expenses

·

Total income, including a gain on disposal of Barclays' share of Visa Europe Limited recognised in Personal Banking and Business Banking increased 3% to £3,746m. Underlying total income reduced 1% to £3,595m, within which:

 

-

Personal Banking income increased 1% to £1,858m driven by improved deposit margins and balance growth, partially offset by a lower mortgage margin

 

-

Barclaycard Consumer UK income decreased 5% to £954m primarily driven by the impact of the European Interchange Fee Regulation, which began to come into full effect from December 2015, and is now fully implemented

 

-

Wealth, Entrepreneurs & Business Banking (WEBB) decreased 2% to £783m driven by reduced transactional appetite from clients in equity markets and a reduction in assets under management, partially offset by improved deposit margins and balance growth

 

-

Net interest income was broadly in line at £2,977m (H115: £2,965m) due to balance growth and deposit pricing initiatives, offset by a lower mortgage margin

 

 

-

Net interest margin increased 2bps to 3.59% reflecting higher margins on Personal Banking deposits, partially offset by lower lending margins

 

-

Net fee, commission and other income decreased 8% to £618m due to the impact of the European Interchange Fee Regulation, which began to come into full effect from December 2015, and is now fully implemented, and reduced fee and commission income in WEBB

·

Credit impairment charges increased 10% to £366m primarily due to refinement of impairment modelling in Barclaycard Consumer UK, whilst the 30 day and 90 day arrears rates remained stable year-on-year 

·

Total operating expenses reduced 11% to £2,299m, including provisions for UK customer redress. Underlying total operating expenses reduced 1% to £1,899m reflecting savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, partially offset by structural reform programme implementation costs and increased amortisation from investment in digital

·

Underlying cost: income ratio was 53% (H115: 53%) and underlying RoTE was 19.4% (H115: 21.9%)

 

Balance sheet - 30 June 2016 compared to 31 December 2015

·

Loans and advances to customers were stable at £166.0bn (December 2015: £166.1bn)

·

Total assets increased 1% to £204.6bn driven by an increase in WEBB

·

Customer deposits increased 3% to £181.7bn primarily driven by higher balances in Personal Banking

·

RWAs reduced £2.4bn to £67.1bn primarily driven by credit risk model changes following approval from the Prudential Regulation Authority (PRA)

 

Barclays Corporate & International  

Half year ended

Half year ended


30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Net interest income

2,111 

2,095 

Net trading income  

2,375 

2,372 

Net fee, commission and other income  

3,066 

3,089 

(1)

Total income

7,552 

7,556 

Credit impairment charges and other provisions

(509)

(384)

(33)

Net operating income

7,043 

7,172 

(2)

Operating expenses  

(4,295)

(3,963)

(8)

Litigation and conduct  

(14)

(857)

98 

Total operating expenses

(4,309)

(4,820)

11 

Other net income

19 

28 

(32)

Profit before tax

2,753 

2,380 

16 

Attributable profit

1,746 

1,360 

28 

  

 

 

 

  

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

230.6 

184.1 

210.5 

Trading portfolio assets  

68.1 

61.9 

75.3 

Derivative financial instrument assets  

181.4 

111.5 

116.0 

Derivative financial instrument liabilities

187.5 

119.0 

124.8 

Reverse repurchase agreements and other similar secured lending  

19.7 

24.7 

57.4 

Financial assets designated at fair value  

68.3 

46.8 

5.6 

Total assets  

679.9 

532.2 

566.1 

Customer deposits

226.5 

185.6 

197.7 

Risk weighted assets

209.3 

194.8 

195.4 

  

 

 

 

 

Half year ended

Half year ended


Performance measures

30.06.16

30.06.15


Return on average tangible equity

14.3%

11.0%


Average allocated tangible equity (£bn)

25.0 

25.0 


Cost: income ratio

57%

64%


Loan loss rate (bps)

44 

36 


Loan: deposit ratio

90%

92%


Net interest margin

4.76%

4.52%


  

 

 

 

Notable items  

£m

£m


Gain on disposal of Barclays' share of Visa Europe Limited   

464 


Gains on US Lehman acquisition assets  

496 


Provisions for ongoing investigations and litigation including Foreign Exchange  

(800)


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 10.7% (H115: 12.4%).

1

As at 30 June 2016 loans and advances included £204.4bn (December 2015: £162.6bn) of loans and advances to customers (including settlement balances of £39.9bn (December 2015: £18.5bn) and cash collateral of £29.8bn (December 2015: £24.8bn)), and £26.2bn (December 2015: £21.5bn) of loans and advances to banks (including settlement balances of £6.2bn (December 2015: £1.6bn) and cash collateral of £5.3bn (December 2015: £5.7bn)).  Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £35.4bn (December 2015: £32.1bn).

2

As at 30 June 2016 customer deposits included settlement balances of £38.9bn (December 2015: £16.3bn) and cash collateral of £18.7bn (December 2015: £15.9bn).

3

Excludes Investment Banking related balances.

 

Analysis of Barclays Corporate & International

 

 

 

  

Half year ended

Half year ended


Corporate and Investment Bank

30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Analysis of total income

 

 

 

Credit

591 

438 

35 

Equities

919 

1,177 

(22)

Macro

1,185 

1,239 

(4)

Markets

2,695 

2,854 

(6)

Banking fees

1,103 

1,128 

(2)

Corporate lending

608 

672 

(10)

Transactional banking

798 

829 

(4)

Banking

2,509 

2,629 

(5)

Other

496 

(99)

Total income

5,207 

5,979 

(13)

Credit impairment charges and other provisions

(132)

(41)


Total operating expenses

(3,465)

(4,027)

14 

Profit before tax  

1,610 

1,912 

(16)

  

 

 

 

 

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Risk weighted assets  

178.4 

167.3 

170.0 

  

 

 

 

 

Half year ended

Half year ended


Performance measures

30.06.16

30.06.15


Return on average tangible equity

8.4%

9.8%


Average allocated tangible equity (£bn)

21.5 

22.0 


Excluding notable items, the CIB return on average tangible equity was 8.4% (H115: 11.7%).

 

  

Half year ended

Half year ended


Consumer, Cards and Payments

30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Total income

2,345 

1,577 

49 

Credit impairment charges and other provisions

(377)

(344)

(10)

Total operating expenses

(844)

(793)

(6)

Profit before tax

1,143 

468 


  

 

 

 

 

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

35.4 

32.1 

29.6 

Customer deposits

46.9 

41.8 

38.4 

Risk weighted assets  

30.9 

27.5 

25.4 

  

 

 

 

 

Half year ended

Half year ended


Key facts

30.06.16

30.06.15


30 day arrears rates - Barclaycard US  

2.2%

1.9%


Total number of Barclaycard business clients   

350,000 

 343,000 


Value of payments processed   

£141bn

£135bn


  

 

 

 

Performance measures

 

 

 

Return on average tangible equity

50.9%

20.4%


Average allocated tangible equity (£bn)

3.5 

3.0 


Excluding notable items, the Consumer, Cards and Payments return on average tangible equity was 24.9% (H115: 17.5%).

 

Barclays Corporate & International

·

Profit before tax increased 16% to £2,753m. Underlying profit before tax, which excludes the impact of notable items decreased 10% to £2,289m driven by a 4% increase in underlying total operating expenses to £4,309m due to the  appreciation of average USD and EUR against GBP, structural reform programme implementation and restructuring costs, and a 33% increase in credit impairment charges to £509m

·

Underlying total income remained broadly in line at £7,088m (H115: £7,060m), including the appreciation of average USD and EUR against GBP, with Consumer, Cards and Payments income increasing 19% to £1,881m and CIB income decreasing 5% to £5,207m

·

Underlying cost: income ratio was 61% (H115: 59%) and underlying RoTE was 10.7% (H115: 12.4%)

 

Corporate and Investment Bank (CIB)

Income statement - H116 compared to H115

·

Profit before tax decreased 16% to £1,610m. Underlying profit before tax, which excludes the impact of notable items decreased 25% to £1,610m primarily due to a reduction in income driven by challenging market conditions in Equities, increased credit impairment charges of £132m (H115: £41m), and increased underlying total operating expenses driven by restructuring and structural reform programme implementation costs. Total income and total operating expenses have also been impacted by the appreciation of average USD against GBP

·

Underlying total income decreased 5% to £5,207m:

 

-

Markets income decreased 6% to £2,695m, within which:

 

 

-

Credit income increased 35% to £591m driven by strong performance in fixed income credit flow businesses, which benefitted from increased market volatility

 

 

-

Equities income decreased 22% to £919m following simplification of the business model with minimal impact on returns as lower income in EMEA and Asia was partially offset by increases in the Americas in a challenging trading environment

 

 

-

Macro income decreased 4% to £1,185m due to lower client activity in Q116 partially offset by an improved Q216 performance, primarily in rates and currency products

 

-

Banking income decreased 5% to £2,509m, within which:

 

 

-

Banking fee income decreased 2% to £1,103m driven by lower equity underwriting fees, partially offset by higher advisory and debt underwriting fees

 

 

-

Corporate lending reduced 10% to £608m due to the non-recurrence of a one-off work-out gain recognised in H115, in addition to some margin reduction, partially offset by balance growth

 

 

-

Transactional banking income reduced 4% to £798m primarily due to margin and rate compression, partially offset by income from higher deposit balances and an increase in payment volumes

·

Credit impairment charges of £132m (H115: £41m) arose from impairment of a number of single name exposures primarily in Q116, largely in respect of counterparties in the oil and gas sector

·

Underlying total operating expenses increased 5% to £3,465m due to the appreciation of average USD against GBP, restructuring and structural reform programme implementation costs, partially offset by lower litigation and conduct costs

 

Balance sheet - 30 June 2016 compared to 31 December 2015

·

Loans and advances to banks and customers at amortised cost increased £43.2bn to £195.2bn primarily driven by increases in settlements, cash collateral and new client activity during the period

·

Derivative financial instrument assets and liabilities increased 63% to £181.2bn and 57% to £187.4bn respectively, due to decreases in major forward interest rates and appreciation of major currencies against GBP

·

Trading portfolio assets increased £6.2bn to £68.1bn due to an increase in client activity

·

Financial assets designated at fair value increased £21.4bn to £68.2bn primarily due to an increase in reverse repurchase agreements that have been designated at fair value, increased matched book trading and firm funding requirements

·

Total assets increased 29% to £625.9bn primarily due to an increase in derivative financial instrument assets, reverse repurchase agreements, loans and advances to banks and customers, and trading portfolio assets, partially offset by a decrease in other assets

·

Customer deposits increased £36.0bn to £179.7bn primarily driven by increases in settlements, cash collateral and new client activity during the period

·

RWAs increased £11.1bn to £178.4bn primarily due to an increase in the fair value of derivative exposures and the appreciation of USD against GBP

 

Consumer, Cards and Payments

Income statement - H116 compared to H115

·

Profit before tax increased £675m to £1,143m. Underlying profit before tax, which excludes the impact of notable items increased 65% to £679m as loans and advances to banks and customers increased 20% year-on-year

·

Total income, including a gain on disposal of Barclays' share of Visa Europe Limited increased 49% to £2,345m. Underlying total income increased 19% to £1,881m driven by continued growth in Barclaycard US, Germany and Merchant Acquiring, and the appreciation of average USD and EUR against GBP

·

Credit impairment charges increased 10% to £377m primarily driven by balance growth and the appreciation of average USD and EUR against GBP

·

Underlying total operating expenses were broadly in line at £844m (H115: £849m) including the appreciation of average USD and EUR against GBP

 

Balance sheet - 30 June 2016 compared to 31 December 2015

·

Loans and advances to banks and customers grew 10% to £35.4bn driven by growth in Barclaycard US, including the acquisition of the JetBlue credit card portfolio

·

Customer deposits increased £5.1bn to £46.9bn driven by strong balance growth in Wealth International and Offshore businesses

·

RWAs increased £3.4bn to £30.9bn primarily driven by the appreciation of USD and EUR against GBP, and the acquisition of card portfolios

 

Head Office  

Half year ended

Half year ended


30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Total income

301 

455 

(34)

Credit impairment charges and other provisions

(1)

(1)

Net operating income

300 

454 

(34)

Operating expenses  

(121)

(98)

(23)

Litigation and conduct  

(18)

(7)


Total operating expenses

(139)

(105)

(32)

Other net expenses

(27)

(94)

71 

Profit before tax

134 

255 

(47)

Attributable profit

90 

152 

(41)

  

 

 

 

  

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Total assets

87.7 

59.4 

62.2 

Risk weighted assets

43.2 

39.7 

41.0 

  

 

 

 

 

Half year ended

Half year ended


  

30.06.16

30.06.15


Performance measures

£bn

£bn


Average allocated tangible equity (£bn)

5.8 

1.4 


  

 

 

 

 

 

 

 

Notable items  

£m

£m


Own credit  

183 

410 


Losses on sale relating to the Spanish business

(97)


 

1

Includes Africa Banking assets held for sale of £56.0bn (December 2015: £47.9bn) and risk weighted assets of £36.1bn (December 2015: £31.7bn).

 

Head Office

Income statement - H116 compared to H115

·

Profit before tax reduced 47% to £134m. Underlying loss before tax, excluding the impact of notable items reduced £9m to £49m

·

Underlying total income increased to £118m (H115: £45m) primarily reflecting one-off gains from the buyback of subordinated debt in Q116

·

Underlying total operating expenses increased £34m to £139m primarily due to an increase in litigation settlements and professional fees

 

Balance sheet - 30 June 2016 compared to 31 December 2015

·

Total assets increased £28.3bn to £87.7bn driven by an increase in the liquidity buffer held due to uncertainty relating to the 23 June 2016 referendum in the United Kingdom      

·

RWAs increased £3.5bn to £43.2bn primarily due to the appreciation of ZAR against GBP     

 

Barclays Non-Core

Half year ended

Half year ended


30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Net interest income

136 

310 

(56)

Net trading income  

(953)

(184)


Net fee, commission and other income  

370 

506 

(27)

Total income

(447)

632 


Net claims and benefits incurred under insurance contracts  

(139)

(167)

17 

Total income net of insurance claims  

(586)

465 


Credit impairment charges and other provisions

(55)

(61)

10 

Net operating income

(641)

404 


Operating expenses  

(857)

(945)

Litigation and conduct  

(93)

(132)

30 

Total operating expenses

(950)

(1,077)

12 

Other net expenses

(313)

(72)


Loss before tax

(1,904)

(745)


Attributable loss

(1,490)

(582)


  

 

 

 

  

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

68.5 

51.8 

60.4 

Derivative financial instrument assets  

262.8 

213.7 

223.9 

Derivative financial instrument liabilities

253.4 

202.1 

216.7 

Reverse repurchase agreements and other similar secured lending  

0.1

3.1 

16.7 

Financial assets designated at fair value  

15.4 

21.4 

22.1 

Total assets  

379.1 

325.8 

366.2 

Customer deposits

17.4 

20.9 

27.9 

Risk weighted assets

46.7 

54.3 

68.6 

  

 

 

 

 

Half year ended

Half year ended


Performance measures

30.06.16

30.06.15


Average allocated tangible equity (£bn)

8.5 

11.8 


Period end allocated tangible equity (£bn)  

7.8 

10.1 


Loan loss rate (bps)

15 

17 


  

 

 

 

Notable items  

£m

£m


Provisions for UK customer redress  

(65)


Losses on sale relating to the Spanish business  

(21)


  

 

 

YoY

Analysis of income net of insurance claims  

 

 

% Change

Businesses  

377 

596 

(37)

Securities and loans  

(765)

(68)


Derivatives  

(198)

(63)


Total income net of insurance claims  

(586)

465 


 

1

As at 30 June 2016 loans and advances included £52.4bn (December 2015: £40.4bn) of loans and advances to customers (including settlement balances of £0.1bn (December 2015: £0.3bn) and cash collateral of £28.8bn (December 2015: £19.0bn)), and £16.1bn (December 2015: £11.4bn) of loans and advances to banks (including settlement balances of £0.1bn (December 2015: £nil) and cash collateral of £15.0bn (December 2015: £10.1bn)).

2

As at 30 June 2016 customer deposits included settlement balances of £0.1bn (December 2015: £0.2bn) and cash collateral of £14.5bn (December 2015: £12.3bn).

 

 

Barclays Non-Core

Income statement - H116 compared to H115

·

Loss before tax increased to £1,904m (H115: £745m). Underlying loss before tax, excluding the impact of notable items increased to £1,904m (H115: £659m) driven by reduced income and increased losses resulting from continued progress on the rundown of Securities and loans, Businesses, and Derivative assets, a £372m impairment associated with the valuation of the French retail, and wealth and investment management businesses in other net expenses, and higher fair value losses on the ESHLA portfolio

·

Total income net of insurance claims reduced £1,051m to a net expense of £586m

 

-

Businesses income reduced 37% to £377m due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas, UK Secured Lending and Portuguese retail and insurance businesses

 

-

Securities and loans income decreased £697m to a net expense of £765m primarily driven by fair value losses of £424m (H115: £175m) on the ESHLA portfolio, a one-off loss of £182m due to the restructure of the ESHLA portfolio loan terms and the non-recurrence of a £91m provision release relating to a litigation matter in Q115

 

-

Derivatives income reduced £135m to an expense of £198m reflecting the active rundown of the portfolios and funding costs

·

Credit impairment charges improved 10% to £55m due to higher recoveries in Europe

·

Underlying total operating expenses improved 6% to £950m reflecting cost savings from ceasing certain investment banking activities in a number of countries and the completion of the sale of several businesses, partially offset by a £180m increase in restructuring charges

·

Other net expenses of £313m (H115: £72m) included a £372m impairment associated with the valuation of the French retail, and wealth and investment management businesses

 

Balance sheet - 30 June 2016 compared to 31 December 2015

·

Loans and advances to banks and customers at amortised cost increased 32% to £68.5bn due to an increase in cash collateral assets and the reclassification of £8bn of ESHLA loans now recognised at amortised cost, following the restructure of LOBO loan terms, partially offset by the reclassification of assets on the announced sale of the Asia wealth and investment management business to assets held for sale, and the rundown and exit of historical investment bank assets

 

·

Derivative financial instrument assets and liabilities increased 23% to £262.8bn and 25% to £253.4bn respectively, due to a rates rally across the three major currencies (GBP, USD, EUR) from December 2015 to June 2016, partially offset by the continued rundown of the derivative back book

 

·

Customer deposits decreased £3.5bn to £17.4bn due to the increase in collateral received

 

·

Total assets increased £53.3bn to £379.1bn due to higher derivative financial instrument assets which increased £49.1bn to £262.8bn. Derivative financial instrument liabilities increased £51.3bn to £253.4bn

 

·

Leverage exposure decreased £15bn to £134bn due to reduced potential future exposure on derivatives and trading portfolio assets

 

·

RWAs reduced £7.6bn to £46.7bn including a £3bn reduction in Derivatives, a £3bn reduction in Securities and loans, and a £1bn reduction in Businesses RWAs, despite the appreciation of USD and EUR against GBP and other adverse market movements

 

 

Africa Banking - Discontinued Operation

On 1 March 2016, Barclays announced its intention to sell down the Group's 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. On 5 May 2016 Barclays executed the first tranche of the sell down of the Group's interest in BAGL with the sale of 12.2% of BAGL's issued share capital. Following completion of the sale, Barclays' holding represents 50.1% of BAGL's issued share capital.

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 fair value of BAGL, based on its quoted share price, less estimated costs to sell, 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

Half year ended  

Half year ended


30.06.16

30.06.15

YoY

Income statement information

£m

£m

% Change

Net interest income

982 

1,011 

(3)

Net fee, commission and other income  

802 

848 

(5)

Total income

1,784 

1,859 

(4)

Net claims and benefits incurred under insurance contracts  

(87)

(81)

(7)

Total income net of insurance claims  

1,697 

1,778 

(5)

Credit impairment charges and other provisions

(244)

(194)

(26)

Net operating income

1,453 

1,584 

(8)

Total operating expenses

(1,020)

(1,075)

Other net income

(33)

Profit before tax

435 

512 

(15)

Profit after tax  

311 

358 

(13)

Attributable profit

156 

193 

(19)

  

 

 

 

  

As at 30.06.16

As at 31.12.15

As at 30.06.15

Balance sheet information

£bn

£bn

£bn

Total assets  

56.0 

47.9 

52.2 

Risk weighted assets

36.1 

31.7 

34.4 

  

 

 

 

  

Half year ended  

Half year ended


Key facts

30.06.16

30.06.15


Period end - ZAR/£

19.63 

19.12 


6 month average - ZAR/£1

22.17 

18.16 


Barclays Africa Group Limited share price (ZAR)

144.08 

182.98 


Barclays Africa Group Limited number of shares (m)

848 

848 


 

1

The average rate is derived from daily spot rates during the year.

 

Quarterly Results Summary

 

Barclays Group  

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income net of insurance claims 

5,972 

5,041 


4,448 

5,481 

6,461 

5,650 


4,097 

5,987 

Credit impairment charges and other provisions 

(488)

(443)


(554)

(429)

(393)

(386)


(495)

(435)

Net operating income 

5,484 

4,598 


3,894 

5,052 

6,068 

5,264 


3,602 

5,552 

Operating expenses

(3,425)

(3,747)


(3,547)

(3,552)

(3,557)

(3,067)


(3,696)

(3,653)

UK bank levy 


(426)


(418)

Litigation and conduct

(447)

(78)


(1,722)

(699)

(927)

(1,039)


(1,089)

(607)

Total operating expenses

(3,872)

(3,825)


(5,695)

(4,251)

(4,484)

(4,106)


(5,203)

(4,260)

Other net (expenses)/income

(342)

20 


(274)

(182)

(39)

(101)


(82)

(336)

Profit/(loss) before tax  

1,270 

793 


(2,075)

619 

1,545 

1,057 


(1,683)

956 

Tax (charge)/credit

(467)

(248)


(164)

(133)

(324)

(528)


134 

(507)

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

803 

545 


(2,239)

486 

1,221 

529 


(1,549)

449 

Profit after tax in respect of discontinued operation

145 

166 


101 

167 

162 

196 


168 

171 

  

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

Ordinary equity holders of the parent

677 

433 


(2,422)

417 

1,146 

465 


(1,679)

379 

Other equity holders

104 

104 


107 

79 

79 

80 


80 

80 

Non-controlling interests

167 

174 


177 

157 

158 

180 


218 

161 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Total assets

1,351.3 

1,248.9 


1,120.0 

1,236.5 

1,196.7 

1,416.4 


1,357.9 

1,365.7 

Risk weighted assets  

366.3 

363.0 


358.4 

381.9 

376.7 

395.9 


401.9 

412.9 

Leverage exposure

1,155.4 

1,082.0 


1,027.8 

1,140.7 

1,139.3 

1,254.7 


1,233.4 

1,323.9 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible shareholders' equity  

5.8%

3.8%


(20.1%)

3.6%

9.8%

4.0%


(13.8%)

3.4%

Average tangible shareholders' equity (£bn)

48.3 

48.3 


47.8 

47.6 

47.2 

48.1 


48.3 

46.8 

Cost: income ratio 

65%

76%


128%

78%

69%

73%


127%

71%

Loan loss rate (bps)

41 

40 


53 

37 

35 

32 


45 

39 

Basic earnings/(loss) per share   

4.2p

2.7p


(14.4p)

2.6p

7.0p

2.9p


(10.2p)

2.4p

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m

£m


£m

£m

£m

£m


£m

£m

Own credit  

292 

(109)


(175)

195 

282 

128 


(62)

44 

Gain on disposal of Barclays' share of Visa Europe Limited

615 



Gains on US Lehman acquisition assets  


496 


461 

Revision of ESHLA valuation methodology  



(935)

Provisions for UK customer redress  

(400)


(1,450)

(290)

(850)

(182)


(200)

(10)

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 Q216 return on average tangible shareholders' equity was 2.5% (Q215: 9.1%) and basic earnings per share was 1.8p (Q215: 6.5p).

 

Barclays Core  

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income net of insurance claims 

6,316 

5,283 


4,516 

5,265 

6,219 

5,428 


4,791 

5,368 

Credit impairment charges and other provisions 

(462)

(414)


(522)

(388)

(373)

(345)


(481)

(393)

Net operating income 

5,854 

4,869 


3,994 

4,877 

5,846 

5,083 


4,310 

4,975 

Operating expenses

(3,057)

(3,258)


(2,992)

(3,094)

(3,061)

(2,618)


(3,076)

(3,000)

UK bank levy 


(338)


(316)

Litigation and conduct

(420)

(12)


(1,634)

(419)

(819)

(1,015)


(1,004)

(507)

Total operating expenses

(3,477)

(3,270)


(4,964)

(3,513)

(3,880)

(3,633)


(4,396)

(3,507)

Other net (expenses)/income

(18)


(5)

13 

14 

(83)


322 

Profit/(loss) before tax  

2,359 

1,608 


(975)

1,377 

1,980 

1,367 


(80)

1,790 

Tax charge

(696)

(485)


(92)

(299)

(474)

(614)


(172)

(564)

Profit/(loss) after tax  

1,663 

1,123 


(1,067)

1,078 

1,506 

753 


(253)

1,226 

Non-controlling interests  

(80)

(84)


(81)

(54)

(64)

(68)


(100)

(48)

Other equity holders  

(89)

(89)


(92)

(63)

(61)

(65)


(64)

(61)

Attributable profit/(loss)

1,494 

950 


(1,240)

961 

1,381 

620 


(417)

1,117 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Total assets

972.2 

883.6 


794.2 

862.0 

830.5 

919.4 


855.5 

867.9 

Risk weighted assets

319.6 

312.2 


304.1 

316.3 

308.1 

318.0 


312.8 

318.8 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

15.0%

9.9%


(12.8%)

10.4%

15.5%

7.1%


(4.8%)

14.1%

Average tangible equity (£bn)

40.4 

39.3 


38.1 

37.5 

35.9 

35.6 


34.0 

32.2 

Cost: income ratio 

55%

62%


110%

67%

62%

67%


92%

65%

Loan loss rate (bps)

45 

42 


57 

39 

38 

35 


52 

41 

Basic earnings/(loss) per share

9.0p

5.8p


(7.3p)

5.8p

8.4p

3.8p


(2.5p)

6.9p

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m

£m


£m

£m

£m

£m


£m

£m

Own credit  

292 

(109)


(175)

195 

282 

128 


(62)

44 

Gain on disposal of Barclays' share of Visa Europe Limited  

615 



Gains on US Lehman acquisition assets  


496 


461 

Provisions for UK customer redress  

(400)


(1,392)

(290)

(800)

(167)


(199)

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 Q216 Core return on average tangible equity was 11.0% (Q215: 14.0%) and the Core basic earnings per share was 6.6p (Q215: 7.7p).

 

Barclays Non-Core  

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Businesses  

181 

196 


229 

314 

292 

304 


361 

379 

Securities and loans  

(363)

(402)


(195)

(87)

(68)


(1,021)

275 

Derivatives  

(162)

(36)


(102)

(12)

(49)

(14)


(35)

(35)

Total income net of insurance claims 

(344)

(242)


(68)

215 

243 

222 


(695)

619 

Credit impairment charges and other provisions 

(26)

(29)


(32)

(41)

(20)

(41)


(13)

(42)

Net operating (expenses)/income 

(370)

(271)


(100)

174 

223 

181 


(708)

577 

Operating expenses

(368)

(489)


(555)

(458)

(496)

(449)


(618)

(654)

UK bank levy 


(88)


(102)

Litigation and conduct

(27)

(66)


(89)

(279)

(108)

(24)


(85)

(100)

Total operating expenses

(395)

(555)


(732)

(737)

(604)

(473)


(805)

(754)

Other net (expenses)/income

(324)

11 


(268)

(195)

(54)

(18)


(90)

(657)

Loss before tax  

(1,089)

(815)


(1,100)

(758)

(435)

(310)


(1,603)

(834)

Tax credit/(charge)  

229 

237 


(72)

166 

150 

86 


306 

57 

Loss after tax  

(860)

(578)


(1,172)

(592)

(285)

(224)


(1,297)

(777)

Non-controlling interests  

(12)

(10)


(19)

(21)

(21)

(20)


(33)

(25)

Other equity holders  

(15)

(15)


(17)

(15)

(18)

(14)


(17)

(17)

Attributable loss

(887)

(603)


(1,208)

(628)

(324)

(258)


(1,347)

(819)

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Loans and advances to banks and customers at amortised cost

68.5 

55.4 


51.8 

57.1 

60.4 

73.1 


70.7 

72.4 

Derivative financial instrument assets  

262.8 

249.7 


213.7 

243.3 

223.9 

305.6 


288.9 

252.6 

Derivative financial instrument liabilities  

253.4 

239.1 


202.1 

235.0 

216.7 

299.6 


280.6 

243.2 

Reverse repurchase agreements and other similar secured lending  

0.1

0.7 


3.1 

8.5 

16.7 

43.7 


50.7 

75.3 

Financial assets designated at fair value  

15.4 

23.4 


21.4 

22.8 

22.1 

25.0 


25.5 

27.3 

Total assets  

379.1 

365.4 


325.8 

374.5 

366.2 

497.0 


502.4 

497.8 

Customer deposits

17.4 

19.3 


20.9 

25.8 

27.9 

29.9 


30.8 

32.2 

Risk weighted assets

46.7 

50.9 


54.3 

65.6 

68.6 

77.9 


89.1 

94.1 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Average allocated tangible equity (£bn)

7.9 

9.0 


9.7 

10.2 

11.3 

12.4 


14.3 

14.7 

Period end allocated tangible equity (£bn)

7.8 

8.5 


8.5 

10.2 

10.1 

11.7 


13.1 

14.1 

Loan loss rate (bps)

14 

21 


25 

27 

13 

17 


10 

27 

Basic loss per share contribution   

(5.2p)

(3.6p)


(7.2p)

(3.7p)

(1.9p)

(1.5p)


(8.2p)

(5.0p)

  

 

 

 

 

 

 

 

 

 

 

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)

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 Q216 Non-Core basic loss per share was 5.2p (Q215: 1.7p).

 

Quarterly Core Results by Business

Barclays UK

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income

1,943 

1,803 


1,834 

1,874 

1,804 

1,831 


1,882 

1,898 

Credit impairment charges and other provisions 

(220)

(146)


(219)

(154)

(166)

(167)


(264)

(217)

Net operating income 

1,723 

1,657 


1,615 

1,720 

1,638 

1,664 


1,618 

1,681 

Operating expenses

(947)

(952)


(920)

(925)

(970)

(649)


(1,041)

(1,048)

UK bank levy 


(77)


(59)

Litigation and conduct

(399)

(1)


(1,466)

(76)

(801)

(168)


(211)

(32)

Total operating expenses

(1,346)

(953)


(2,463)

(1,001)

(1,771)

(817)


(1,311)

(1,080)

Other net (expenses)/income

(1)


(3)


(3)

(1)

Profit/(loss) before tax   

376 

704 


(847)

720 

(132)

844 


304 

600 

Attributable profit/(loss)  

141 

467 


(1,078)

541 

(174)

664 


208 

442 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Loans and advances to customers at amortised cost

166.0 

166.2 


166.1 

166.7 

166.1 

166.0 


165.3 

164.3 

Total assets

204.6 

201.7 


202.5 

204.1 

202.2 

199.6 


198.0 

190.9 

Customer deposits

181.7 

179.1 


176.8 

173.4 

171.6 

168.7 


168.3 

165.9 

Risk weighted assets

67.1 

69.7 


69.5 

71.0 

71.7 

72.3 


69.3 

71.3 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

6.6%

20.5%


(46.5%)

23.3%

(7.3%)

28.3%


9.3%

19.4%

Average allocated tangible equity (£bn)

9.0 

9.3 


9.2 

9.3 

9.4 

9.4 


9.2 

9.2 

Cost: income ratio 

69%

53%


134%

53%

98%

45%


70%

57%

Loan loss rate (bps)

52 

34 


51 

36 

40 

40 


62 

51 

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m

£m


£m

£m

£m

£m


£m

£m

Gain on disposal of Barclays' share of Visa Europe Limited

151 



Provisions for UK customer redress  

(400)


(1,391)

(73)

(800)

(167)


(199)

(24)

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


296 


Excluding notable items, the Q216 Barclays UK return on average tangible equity was 18.4% (Q215: 19.9%).

 

Analysis of Barclays UK

 

 

 

 

 

 

 

 

 

 

Analysis of total income

£m

£m


£m

£m

£m

£m


£m

£m

Personal Banking

1,068 

919 


945 

938 

905 

927 


955 

968 

Barclaycard Consumer UK

463 

491 


505 

552 

503 

505 


518 

530 

Wealth, Entrepreneurs & Business Banking

412 

393 


384 

384 

396 

399 


409 

400 

Total income

1,943 

1,803 


1,834 

1,874 

1,804 

1,831 


1,882 

1,898 

  

 

 

 

 

 

 

 

 

 

 

Analysis of credit impairment charges and other provisions

 

 

 

 

 

 

 

 

 

 

Personal Banking

(44)

(42)


(39)

(36)

(50)

(69)


(57)

(57)

Barclaycard Consumer UK

(169)

(105)


(176)

(111)

(106)

(95)


(185)

(139)

Wealth, Entrepreneurs & Business Banking

(7)


(4)

(7)

(10)

(3)


(22)

(21)

Total credit impairment charges and other provisions

(220)

(146)


(219)

(154)

(166)

(167)


(264)

(217)

  

 

 

 

 

 

 

 

 

 

 

Analysis of loans and advances to customers at amortised cost

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Personal Banking

134.7 

134.7 


134.0 

134.5 

134.4 

134.3 


133.8 

133.3 

Barclaycard Consumer UK

16.2 

16.0 


16.2 

15.9 

15.8 

15.7 


15.8 

15.5 

Wealth, Entrepreneurs & Business Banking

15.1 

15.5 


15.9 

16.3 

15.9 

16.0 


15.7 

15.5 

Total loans and advances to customers at amortised cost

166.0 

166.2 


166.1 

166.7 

166.1 

166.0 


165.3 

164.3 

  

 

 

 

 

 

 

 

 

 

 

Analysis of customer deposits

 

 

 

 

 

 

 

 

 

 

Personal Banking

134.8 

132.9 


131.0 

128.4 

126.7 

123.4 


124.5 

122.2 

Barclaycard Consumer UK



Wealth, Entrepreneurs & Business Banking

46.9 

46.2 


45.8 

45.0 

44.9 

45.3 


43.8 

43.7 

Total customer deposits

181.7 

179.1 


176.8 

173.4 

171.6 

168.7 


168.3 

165.9 

 

Barclays Corporate & International

 

 

 

 

 

 

 

 

 

  

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income

4,039 

3,513 


2,968 

3,223 

4,102 

3,454 


2,945 

3,370 

Credit impairment charges and other provisions 

(240)

(269)


(303)

(235)

(206)

(178)


(217)

(176)

Net operating income 

3,799 

3,244 


2,665 

2,988 

3,896 

3,276 


2,728 

3,194 

Operating expenses

(2,074)

(2,221)


(2,007)

(2,059)

(2,027)

(1,936)


(2,014)

(1,943)

UK bank levy 


(253)


(248)

Litigation and conduct

(10)

(4)


(151)

(302)

(12)

(845)


(786)

(470)

Total operating expenses

(2,084)

(2,225)


(2,411)

(2,361)

(2,039)

(2,781)


(3,048)

(2,413)

Other net income

11 


13 

15 


Profit/(loss) before tax  

1,726 

1,027 


262 

636 

1,870 

510 


(313)

790 

Attributable profit/(loss)

1,171 

575 


(24)

422 

1,376 

(16)


(673)

449 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Loans and advances to banks and customers at amortised cost

230.6 

215.9 


184.1 

220.3 

210.5 

224.7 


193.6 

206.5 

Trading portfolio assets

68.1 

64.3 


61.9 

72.8 

75.3 

92.7 


87.3 

91.5 

Derivative financial instrument assets

181.4 

150.1 


111.5 

133.7 

116.0 

172.8 


149.6 

128.7 

Derivative financial instrument liabilities

187.5 

155.4 


119.0 

142.0 

124.8 

182.3 


157.3 

134.6 

Reverse repurchase agreements and other similar secured lending

19.7 

19.1 


24.7 

68.0 

57.4 

57.1 


62.9 

81.5 

Financial assets designated at fair value

68.3 

59.6 


46.8 

5.6 

5.6 

5.2 


5.7 

10.9 

Total assets

679.9 

618.4 


532.2 

596.1 

566.1 

656.2 


596.5 

608.5 

Customer deposits

226.5 

213.1 


185.6 

207.0 

197.7 

206.2 


188.2 

205.0 

Risk weighted assets

209.3 

202.2 


194.8 

204.0 

195.4 

202.6 


201.7 

205.9 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

19.2%

9.5%


(0.2%)

7.0%

22.5%

(0.1%)


(10.4%)

7.4%

Average allocated tangible equity (£bn)

24.8 

25.1 


24.9 

24.7 

24.7 

25.3 


25.6 

24.6 

Cost: income ratio 

52%

63%


81%

73%

50%

81%


103%

72%

Loan loss rate (bps)

41 

50 


65 

42 

38 

32 


44 

34 

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m

£m


£m

£m

£m

£m


£m

£m

Gain on disposal of Barclays' share of Visa Europe Limited   

464 



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 Q216 Barclays Corporate & International return on average tangible equity was 11.9% (Q215: 13.9%).

 

Analysis of Barclays Corporate & International

 

 

 

 

 

 

 

 

 

Corporate and Investment Bank

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Analysis of total income

 

 

 

 

 

 

 

 

 

 

Credit

269 

322 


195 

191 

218 

220 


117 

189 

Equities

406 

513 


319 

416 

588 

589 


418 

370 

Macro

612 

573 


382 

487 

582 

657 


436 

472 

Markets

1,287 

1,408 


896 

1,094 

1,388 

1,466 


971 

1,031 

Banking fees

622 

481 


458 

501 

580 

548 


529 

420 

Corporate lending

312 

296 


312 

377 

387 

285 


334 

334 

Transactional banking

390 

408 


415 

419 

416 

413 


404 

420 

Banking

1,324 

1,185 


1,185 

1,297 

1,383 

1,246 


1,267 

1,174 

Other


16 

(17)

495 


(4)

460 

Total income

2,611 

2,596 


2,097 

2,374 

3,266 

2,713 


2,234 

2,665 

Credit impairment (charges)/ releases and other provisions

(37)

(95)


(83)

(75)

(42)


(26)

(24)

Total operating expenses

(1,665)

(1,800)


(1,962)

(1,940)

(1,605)

(2,422)


(2,614)

(2,036)

Profit/(loss) before tax  

909 

701 


52 

358 

1,620 

292 


(408)

606 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Risk weighted assets  

178.4 

172.6 


167.3 

177.4 

170.0 

177.1 


175.2 

180.5 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

9.5%

7.3%


(2.5%)

4.5%

22.3%

(2.5%)


(12.8%)

6.1%

Average allocated tangible equity (£bn)

21.3 

21.6 


21.8 

21.7 

21.7 

22.3 


22.5 

21.6 

Excluding notable items the Q216 CIB return on average tangible equity was 9.5% (Q215: 12.6%).

 

Consumer, Cards and Payments

 

 

 

 

 

 

 

 

 

 

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income

1,428 

917 


871 

849 

836 

741 


711 

705 

Credit impairment charges and other provisions

(203)

(174)


(219)

(160)

(165)

(179)


(190)

(153)

Total operating expenses

(419)

(425)


(449)

(421)

(434)

(359)


(434)

(377)

Profit before tax

817 

326 


210 

278 

250 

218 


93 

185 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Loans and advances to banks and customers at amortised cost

35.4 

32.9 


32.1 

30.6 

29.6 

29.8 


29.7 

28.4 

Customer deposits

46.9 

44.2 


41.8 

39.8 

38.4 

40.1 


37.9 

37.1 

Risk weighted assets  

30.9 

29.6 


27.5 

26.6 

25.4 

25.5 


26.6 

25.4 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity

77.9%

23.4%


15.3%

24.7%

23.4%

17.5%


6.6%

17.3%

Average allocated tangible equity (£bn)

3.5 

3.4 


3.2 

3.1 

3.0 

3.0 


3.1 

3.0 

Excluding notable items the Q216 Consumer, Cards and Payments return on average tangible equity was 26.3% (Q215: 23.4%).

 

Head Office

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income

334 

(33)


(285)

169 

312 

142 


(36)

100 

Credit impairment (charges)/releases and other provisions   

(2)


(1)


Net operating income/(expenses)

332 

(32)


(285)

170 

311 

142 


(36)

100 

Operating expenses

(36)

(85)


(64)

(110)

(64)

(34)


(21)

(10)

UK bank levy 


(8)


(9)

Litigation and conduct

(11)

(7)


(17)

(42)

(6)

(1)


(7)

(4)

Total operating expenses

(47)

(92)


(89)

(152)

(70)

(35)


(37)

(14)

Other net (expenses)/income

(28)


(14)

(95)


314 

Profit/(loss) before tax

257 

(123)


(388)

20 

242 

12 


(70)

400 

Attributable (loss)/profit

182 

(92)


(140)

(1)

180 

(28)


47 

226 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Total assets

87.7 

63.4 


59.4 

61.8 

62.2 

63.6 


61.0 

68.5 

Risk weighted assets

43.2 

40.3 


39.7 

41.3 

41.0 

43.1 


41.8 

41.6 

  

 

 

 

 

 

 

 

 

 

 

Performance measures

 

 

 

 

 

 

 

 

 

 

Average allocated tangible equity (£bn)

6.6 

5.0 


3.9 

3.4 

1.8 

0.9 


(0.8)

(1.8)

  

 

 

 

 

 

 

 

 

 

 

Notable items

£m

£m


£m

£m

£m

£m


£m

£m

Own credit

292 

(109)


(175)

195 

282 

128 


(62)

44 

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.

 

Quarterly Africa Banking - Discontinued Operation Results

 

Africa Banking

Q216

Q116


Q415

Q315

Q215

Q115


Q414

Q314

Income statement information

£m

£m


£m

£m

£m

£m


£m

£m

Total income net of insurance claims  

879 

818 


814 

822 

870 

908 


925 

895 

Credit impairment charges and other provisions 

(133)

(111)


(93)

(66)

(103)

(91)


(79)

(74)

Net operating income 

746 

707 


721 

756 

767 

817 


846 

821 

Operating expenses

(543)

(477)


(501)

(515)

(536)

(539)


(585)

(557)

UK bank levy 


(50)


(44)

Litigation and conduct



(1)

(1)

Total operating expenses

(543)

(477)


(551)

(515)

(536)

(539)


(630)

(558)

Other net income



Profit before tax  

204 

231 


173 

242 

232 

280 


218 

264 

Profit after tax

145 

166 


101 

168 

161 

196 


167 

171 

Attributable profit

70 

86 


25 

85 

88 

104 


85 

82 

  

 

 

 

 

 

 

 

 

 

 

Balance sheet information

£bn

£bn


£bn

£bn

£bn

£bn


£bn

£bn

Total assets

56.0 

52.7 


47.9 

50.2 

52.2 

55.9 


53.7 

52.9 

Risk weighted assets

36.1 

33.9 


31.7 

33.8 

34.4 

37.3 


36.7 

36.2 

 

Performance Management

 

Margins and balances

 

 

 

 

 

 

 

 

Half year ended 30.06.16


Half year ended 30.06.15

  

Net interest income

Average customer assets

Net interest margin


Net interest income

Average customer assets

Net interest margin

  

£m

£m

%


£m

£m

%

Barclays UK

 2,977 

 

 166,944 

 3.59 


 2,965 

 167,527 

 3.57 

Barclays Corporate & International

 1,974 

 83,402 

 4.76 


 1,811 

 80,778 

 4.52 

Total Barclays UK and Barclays Corporate & International

 4,951 

 250,346 

 3.98 


 4,776 

 248,305 

 3.88 

Other

 267 




 414 



Total net interest income

 5,218 




 5,190 



 

1

Excludes Investment Banking related balances.

2

Other includes Investment Banking related balances, Head Office and Barclays Non-Core.

 

·

Total Barclays UK and Barclays Corporate & International NII increased 4% to £4,951m due to:

 

-

An increase in average customer assets to £250.3bn (2015: £248.3bn) driven by growth in Barclays Corporate & International.

 

-

Net interest margin increased 10bps to 3.98% primarily driven by growth in interest earning lending in Barclaycard US. Barclays UK remained stable with higher margins on Personal Banking deposits, partially offset by lower lending margins. Group NII was flat at £5.2bn (2015: £5.2bn) including net structural hedge contributions of £0.7bn (2015: £0.7bn).

·

Net interest margin by business reflects movements in the Group's internal funding rates which are based on the cost to the Group of alternative funding in wholesale markets. The internal funding rate prices intra-group funding and liquidity to appropriately give credit to businesses with net surplus liquidity and to charge those businesses in need of alternative funding at a rate that is driven by prevailing market rates and includes a term premium

 

Quarterly analysis for Barclays UK and Barclays Corporate & International

 

 

 

 

 

Three months ended 30.06.16


Net interest income

Average customer assets

Net interest margin


£m

£m

%

Barclays UK

 1,476 

 166,691 

 3.56 

Barclays Corporate & International

 1,000 

 84,628 

 4.75 

Total Barclays UK and Barclays Corporate & International

 2,476 

 251,319 

 3.96 

  

 

 

 

 

Three months ended 31.03.16

Barclays UK

 1,501 

 166,727 

 3.62 

Barclays Corporate & International

 974 

 85,010 

 4.61 

Total Barclays UK and Barclays Corporate & International

 2,475 

 251,737 

 3.95 

  

 

 

 

 

Three months ended 31.12.15

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 

 

1

Excludes Investment Banking related balances.

 

 

Risk Management

 

Risk management and principal risks

Barclays' risk management responsibilities are laid out in the Enterprise Risk Management Framework (ERMF), which creates clear ownership and accountability, with the purpose that the Group's most significant risk exposures are understood and managed in accordance with agreed risk appetite, and that there is regular reporting of both risk exposures and the operating effectiveness of controls.  It includes those risks incurred by Barclays that are foreseeable, continuous, and material enough to merit establishing specific bank-wide control frameworks. These are known as Key Risks and are grouped into five Principal Risks: Credit Risk; Market Risk; Funding Risk; Operational Risk; and Conduct Risk. Further detail on these risks and how they are managed is available from the 2015 Annual Report or online at home.barclays/annualreport. Aside from the risks set out below there has been no other significant change to the Key Risks, risk management or principal uncertainties during the period or expected for the remaining six months of the financial year.

The UK held a referendum on 23 June 2016 on whether it should remain a member of the European Union ("EU").  This resulted in a vote in favour of leaving the EU.  The result of the referendum means that the long-term nature of the UK's relationship with the EU is unclear and there is uncertainty as to the nature and timing of any agreement with the EU. In the interim, there is a risk of uncertainty for both the UK and the EU, which could adversely affect the economy of the UK and the other economies in which we operate. The potential risks associated with an exit from the EU have been carefully considered by the Board during the first half of 2016 and relevant actions taken where appropriate. Potential risks for Barclays include:

·

Market Risk

 

-

Potential for continued market volatility (notably FX and interest rates) given political uncertainty which could affect the value of Trading Book positions, Interest Rate Risk in the Banking Book, as well as securities held by Barclays for liquidity purposes.  Changes in the long-term outlook for UK interest rates might also adversely affect UK Pension IAS19 liabilities

·

Credit Risk

 

-

Increased risk of a UK recession with lower growth, higher unemployment and falling UK house prices.  This would likely negatively impact a number of Barclays' portfolios, notably: higher Loan-to-Value mortgages, UK unsecured and Commercial Real Estate exposures

·

Operational Risk

 

-

Changes to current EU "Passporting" rights:  the UK's withdrawal from the EU may result in the loss of cross-border market access rights which would require Barclays to make alternative licensing arrangements in EU jurisdictions in which Barclays continues to operate

 

-

The legal framework within which Barclays operates could change as the UK takes steps to replace laws currently in force, which are based on EU legislation and regulation

 

-

Uncertainty over the UK's future approach to EU freedom of movement will impact Barclays' access to the EU talent pool, decisions on hiring from the EU of critical roles and rights to work of current Barclays non-UK EU citizens located in the UK and UK citizens located in the EU

·

Funding Risk

 

-

Potential for credit spread widening and reduced investor appetite for bank paper, which could negatively impact the cost of and/or access to funding

The following section gives an overview of the performance in Funding Risk - Liquidity, Funding Risk - Capital, Credit Risk and Market Risk for the period.

 

Funding Risk - Liquidity

 

Funding & liquidity

Whilst Barclays has a comprehensive framework for managing the Group's liquidity risks, liquidity risk is managed separately at Barclays Africa Group Limited (BAGL) due to local currency and funding requirements.  All disclosures in this section exclude BAGL with the exception of the liquidity stress testing table below, which is reported on a stand-alone basis. For both internal and regulatory stress tests, BAGL is included within the Group

 

Liquidity stress testing

Compliance with internal and regulatory stress tests

Barclays' LRA (30 day Barclays specific requirement)1,2

Interim CRDIV LCR

 

£bn

£bn

Eligible liquidity buffer

154.4 

151.0 

Net stress outflows

139.5 

121.7 

Surplus

 14.9 

 29.3 

Liquidity pool as a percentage of anticipated net outflows as at 30 June 2016

111%

124%

Liquidity pool as a percentage of anticipated net outflows as at 31 December 2015

131%

133%

 

1

Of the three stress scenarios monitored as part of the LRA, the 30 day Barclays specific scenario results in the lowest ratio at 111% (2015: 131%). This compares to 122% (2015: 144%) under the 90 day market-wide scenario and 126% (2015: 133%) under the 30 day combined scenario.

2

Includes Barclays Africa discontinued operations.

Barclays manages the Group's liquidity position against the Group's internally defined Liquidity Risk Appetite (LRA) and regulatory metrics, such as Interim CRDIV Liquidity Coverage Ratio (LCR). As at 30 June 2016, the Group held eligible liquid assets significantly in excess of 100% of net stress outflows for both the 30 day Barclays-specific LRA and the LCR.

The LRA buffer duration as of 30 June 2016 was observed at 71 days.

Barclays estimated its Net Stable Funding Ratio (NSFR) at 106% (2015: 106%) based on the final NSFR guidelines published by the BCBS in October 2014.

 

Composition of the Group liquidity pool

 

 

 

 

 

 

  

 

Liquidity pool 30.06.16

Liquidity pool of which Interim CRDIV LCR-eligible

Liquidity pool 31.12.15

  

 

 

Cash

Level 1

Level 2A

 

As at 30.06.16

 

£bn

£bn

£bn

£bn

£bn

Cash and deposits with central banks

 

 77 

 74 

 - 

 - 

 48 



  

 

 

  

 

Government bonds

 

 

 

 

  

 

AAA rated

 

 36 

 - 

 36 

 - 

 63 

AA+ to AA- rated

 

 8 

 - 

 8 

 - 

 11 

Other government bonds

 

 2 

 - 

 2 

 - 

 1 

Total government bonds

 

 46 

 - 

 46 

 - 

 75 

  

 

 

 

 

  

 

Other


  

 

 

  

 

Supranational bonds and multilateral development banks

 

 12 

 - 

 9 

 3 

 7 

Agencies and agency mortgage-backed securities


 7 

 - 

 7 

 - 

 8 

Covered bonds (rated AA- and above)

 

 3 

 - 

 2 

 1 

 4 

Other

 

 4 

 - 

 - 

 - 

 3 

Total other

 

 26 

 - 

 18 

 4 

 22 

  

 

 

 

 

  

 

Total as at 30 June 2016

 

 149 

 74 

 64 

 4 

 

Total as at 31 December 2015

 

 145 

45 

 87 

 8 

 

 

1

Of which over 97% (2015: over 97%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.

Barclays manages the liquidity pool on a centralised basis. The liquidity pool is held unencumbered and is not used to support payment or clearing requirements. As at 30 June 2016, 92% (2015: 94%) of the liquidity pool was located in Barclays Bank PLC and was available to meet liquidity needs across the Barclays Group. The residual liquidity pool is held predominantly within Barclays Capital Inc. The portion of the liquidity pool outside of Barclays Bank PLC is held primarily against entity-specific stressed outflows and regulatory requirements.

 

 

Deposit funding  

 

 

 

 

 

 

As at 30.06.16


As at 31.12.15

Funding of loans and advances to customers  

Loans and advances to customers

Customer deposits

Loan to deposit ratio


Loan to deposit ratio

  

£bn

£bn

%


%

Barclays UK

 166 

 182 

 

 

 

Barclays Corporate & International

 95 

 146 

 

 

 

Non-Core

 20 

 2 

 

 

 

Total funding Barclays UK, Barclays Corporate & International and Non-Core

 281 

 330 

85%


86%

  

 

 

 

 

 

Investment Bank, Core and Non-Core  

 144 

 109 

 

 

 

Total

 425 

 439 

97%


95%

 

1

Excludes Investment Banking related balances.

Barclays UK and Barclays Corporate & International (excluding Investment Bank) are largely funded by customer deposits.

The loan to deposit ratio for the Group was 97% (2015: 95%).

 

Wholesale funding 

Funding of other assets as at 30 June 2016

Assets

£bn


Liabilities

£bn

  

 

 

 

 

Trading portfolio assets

 39 


Repurchase agreements

 100 

Reverse repurchase agreements

 60 




  

 

 

 

 

Reverse repurchase agreements

 33 


Trading portfolio liabilities

 33 

  

 

 

 

 

Derivative financial instruments

 445 


Derivative financial instruments

 442 

  

 

 

 

 

Liquidity pool

 96 


Less than 1 year wholesale debt

 70 

Other unencumbered assets

 121 


Greater than 1 year wholesale debt and equity

150   

 

·

Trading portfolio assets are largely funded by repurchase agreements with 54% (2015: 57%) secured against extremely liquid fixed income assets3. The weighted average maturity of these repurchase agreements secured against less liquid assets was 94 days (2015: 77 days)

·

The majority of reverse repurchase agreements are matched by repurchase agreements. As at 30 June 2016, 41% (2015: 55%) of matched book activity was secured against extremely liquid fixed income assets3. The remainder of reverse repurchase agreements are used to settle trading portfolio liabilities

·

Derivative assets and liabilities are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and the remaining portions are largely offset once netted against cash collateral received and paid

·

The Group liquidity pool is primarily funded by wholesale debt with the remainder being funded by customer deposits and other assets are largely matched by term wholesale debt and equity

 

1

The portion of the liquidity pool estimated to be funded by wholesale funds.

2

Predominantly available for sale investments, trading portfolio assets, financial assets designated at fair value and loans and advances to banks.

3

Extremely liquid fixed income is defined as very highly rated sovereigns and agencies, typically rated AA+ or better.  It excludes liquid fixed income, equities and other less liquid collateral.

 

Composition of wholesale funding1

In preparation for a Single Point of Entry resolution model, the Group continues to issue debt capital and term senior unsecured funding out of Barclays PLC, the holding company, replacing maturing debt in Barclays Bank PLC.

Maturity profile

 

<1 month

1-3 months

3-6 months

6-12 months

<1

 year

1-2 years

2-3 years

3-4 years

4-5

years

>5 years

Total

 

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Barclays PLC

 

 

 

 

 

 

 

 

 

 

 

Senior unsecured (public benchmark)

0.8 

0.1 

2.2 

2.7 

5.3 

11.1 

Senior unsecured (privately placed)

0.1 

0.1 

0.5 

0.7 

Subordinated liabilities

1.0 

1.9 

2.9 

Barclays Bank PLC

 

 

 

 

 

 

 

 

 

 

 

Deposits from banks

18.2 

1.3 

1.5 

1.4 

22.4 

0.3 

0.3 

23.0 

Certificates of deposit and commercial paper

1.0 

4.9 

4.6 

4.9 

15.4 

0.9