Interim Results - Part 4 of 4
Barclays PLC
2 August 2001
PART 4
BARCLAYS PLC
NOTES (UNAUDITED)
1. Loans and advances to banks 30.06.01 31.12.00 30.06.00
£m £m £m
Banking business
United Kingdom 6,549 3,345 3,763
Other European Union 2,130 2,042 2,201
United States 1,501 2,056 1,684
Rest of the World 1,992 2,153 2,060
12,172 9,596 9,708
Less - provisions (23) (26) (30)
12,149 9,570 9,678
Trading business 38,207 26,856 30,607
Total loans and advances to banks 50,356 36,426 40,285
Of the total loans and advances to banks, placings with banks were £ 40.7bn at
30th June 2001 (31st December 2000: £32.2bn, 30th June 2000: £ 36.5bn) Placings
with banks include reverse repos of £31.3bn (31st December 2000: £25.6bn, 30th
June 2000: £27.8bn). The majority of the placings have a residual maturity of
less than one year.
2. Loans and advances to customers
30.06.01 31.12.00 30.06.00
£m £m £m
Banking business:
United Kingdom 121,549 115,314 82,026
Other European Union 11,052 10,203 6,315
United States 6,081 6,376 5,527
Rest of the World 5,877 8,950 8,149
144,559 140,843 102,017
Less - provisions (2,476) (2,327) (2,039)
- interest in suspense (84) (93) (85)
141,999 138,423 99,893
Trading business 37,268 23,687 34,547
Total loans and advances to 179,267 162,110 134,440
customers
Of the total loans and advances to customers, reverse repos were £ 29.7bn (31st
December 2000: £20.8bn, 30th June 2000: £28.2bn).
Half-year ended
3. Provisions for bad and doubtful debts 30.06.01 31.12.00 30.06.00
£m £m £m
Provisions at beginning of period 2,353 2,069 1,983
Acquisitions and disposals 26 119 -
Exchange and other adjustments (17) (2) 6
Amounts written off
United Kingdom (368) (283) (312)
Other European Union (12) (13) (32)
United States (7) (26) -
Rest of the World (6) (12) (5)
(393) (334) (349)
Recoveries (analysed below) 32 60 53
Sub-total 2,001 1,912 1,693
Provisions charged against profit:
New and increased specific provisions
United Kingdom 477 403 440
Other European Union 18 17 18
United States 46 9 18
Rest of the World 27 55 21
568 484 497
Less: Releases of specific provisions
United Kingdom (26) (31) (24)
Other European Union (5) (7) (10)
United States (3) (4) (2)
Rest of the World (10) (7) (6)
(44) (49) (42)
Less: Recoveries
United Kingdom (28) (55) (45)
Other European Union (2) (3) (3)
United States (1) - (4)
Rest of the World (1) (2) (1)
(32) (60) (53)
Net specific provisions charge 492 375 402
General provision - charge/(release) 6 66 (26)
Net provision charge to profit 498 441 376
Provisions at end of period 2,499 2,353 2,069
Total provisions for bad and doubtful debts at end of
period comprise:
Specific
United Kingdom 1,434 1,343 1,184
Other European Union 108 112 105
United States 58 20 41
Rest of the World 132 118 88
Total specific provisions 1,732 1,593 1,418
General provisions 767 760 651
2,499 2,353 2,069
The geographic analysis of provisions shown above is based on location of
office.
4. Other assets 30.06.01 31.12.00 30.06.00
£m £m £m
Own shares 6 5 5
Balances arising from off-balance sheet
financial instruments 12,958 12,100 12,763
Shareholders' interest in long-term
assurance fund 884 820 607
London Metal Exchange warrants and other
metals trading positions 829 1,001 190
Sundry debtors 2,039 1,592 1,723
Prepayments and accrued income 2,864 2,827 2,183
19,580 18,345 17,471
'Own shares' represent Barclays PLC shares held in employee benefit trusts
that have not yet vested unconditionally with the eligible employees.
5. Other liabilities 30.06.01 31.12.00 30.06.00
£m £m £m
Obligations under finance leases payable 166 159 148
Balances arising from off-balance sheet
financial instruments 12,466 11,971 13,130
Short positions in securities 25,320 21,201 21,343
Current tax 768 642 521
Cash receipts from securitisation 686 747 994
Sundry creditors 4,302 3,464 3,188
Accruals and deferred income 3,988 4,457 3,289
Provisions for liabilities and charges 1,288 1,266 1,202
Dividend 383 632 295
49,367 44,539 44,110
Cash receipts from securitisation are in respect of the securitisation of a
portfolio of investment debt securities which, did not qualify for linked
presentation under Financial Reporting Standard 5.
6. Potential credit risk lendings
The following table presents an analysis of potential credit risk lendings in
accordance with the US Securities and Exchange Commission guidelines.
Additional categories of disclosure are included, however, to record lendings
where interest continues to be accrued and where either interest is being
suspended or specific provisions have been raised. Normal US banking practice
would be to place such lendings on non-accrual status.
The amounts, the geographical presentation of which is based on the location
of the office recording the transaction, are stated before deduction of the
value of security held, specific provisions carried or interest suspended.
Non-performing lendings
30.06.01 31.12.00 30.06.00
£m £m £m
Non-accrual lendings:
United Kingdom 1,263 1,223 1,143
Other European Union 93 96 94
United States 289 119 74
Rest of the World 129 101 92
Accruing lendings where interest is being suspended:
United Kingdom 352 351 297
Other European Union 48 36 11
United States - - -
Rest of the World 181 109 92
Other accruing lendings against which provisions have
been made:
United Kingdom 1,008 873 336
Other European Union 25 71 40
United States 13 2 10
Rest of the World 80 76 62
Sub-totals:
United Kingdom 2,623 2,447 1,776
Other European Union 166 203 145
United States 302 121 84
Rest of the World 390 286 246
Accruing lendings 90 days overdue, against which no
provisions have been made:
United Kingdom 248 296 330
Other European Union 1 1 1
United States - - -
Rest of the World 30 17 15
Reduced rate lendings:
United Kingdom 5 6 7
Other European Union - - -
United States - - -
Rest of the World 1 - -
30.06.01 31.12.00 30.06.00
£m £m £m
Total non-performing lendings
United Kingdom 2,876 2,749 2,113
Other European Union 167 204 146
United States 302 121 84
Rest of the World 421 303 261
3,766 3,377 2,604
30.06.01 31.12.00 30.06.00
£m £m £m
Potential problem lendings
United Kingdom 780 728 621
Other European Union 13 2 1
United States 66 313 46
Rest of the World 106 64 44
965 1,107 712
30.06.01 31.12.00 30.06.00
% % %
Provision coverage of non-performing lendings
United Kingdom 68.5 70.8 82.1
Other European Union 88.6 75.5 93.2
United States 63.2 71.1 91.7
Rest of the World 65.1 85.5 78.9
Total 68.6 72.4 82.7
30.06.01 31.12.00 30.06.00
% % %
Provision coverage of total potential credit risk
lendings
United Kingdom 53.9 56.0 63.5
Other European Union 82.2 74.8 92.5
United States 51.9 19.8 59.2
Rest of the World 52.0 70.6 67.5
Total 54.6 54.5 65.0
The geographical coverage ratios reflect an allocation of general provisions.
The United Kingdom coverage ratios at December reflected the incorporation of
Woolwich plc where the high level of security held against the exposures
reduces the level of provisions required. The increase in classified loans
and reduction in coverage ratios for the Rest of the World largely reflects
the inclusion for 2001 of the Brazilian operation Banco Barclays e Galicia SA.
Half-year ended
30.6.01 31.12.00 30.6.00
Interest forgone on non-performing £m £m £m
lendings:
Interest income that would have been
recognised under original contractual terms 151 143 103
Interest income included in profit (27) (29) (19)
Interest forgone 124 114 84
7. Exposure to countries subject to International Monetary Fund liquidity
support programmes
Amounts outstanding, net of provisions, and commitments to counterparties in
countries which make significant use of International Monetary Fund liquidity
support programmes were as follows:
30.06.01 31.12.00 30.06.00
Europe £bn £bn £bn
Turkey 0.2 * *
Asia
Indonesia 0.1 0.1 0.1
South Korea 0.3 0.2 0.2
Thailand 0.0 0.1 0.1
0.4 0.4 0.4
Latin America
Argentina 0.5 0.9 *
Brazil * * 0.8
Mexico * * 0.8
0.5 0.9 1.6
Total 1.1 1.3 2.0
* Non reportable
The total comprises:
30.06.01 31.12.00 30.06.00
£bn £bn £bn
Banks 0.7 0.8 1.2
Governments and sovereigns 0.1 0.1 0.2
Corporates and project financings 0.3 0.4 0.6
1.1 1.3 2.0
The Group has a 50% shareholding in Banco Barclays e Galicia SA which since
1st January 2001 has been consolidated as a subsidiary. As at 31st December
2000 this holding was included in the balance sheet as an associated
undertaking at a value of £31m (31st December 1999: £33m).
From 1st January 2001, following the completion of management changes, the
Group considered itself to exert dominant influence so that it had control
over the operations of Banco Barclays e Galicia SA. The entity is now
consolidated as a subsidiary in accordance with Financial Reporting Standard 2.
During the first half of 2001 the general provision in respect of country
transfer risk arising from the Group's business world wide, including
exposures in these countries, reduced to £56m (£57m as at 31st December 2000).
This is in addition to £711m of general provision held against credit risk.
8. Cross-border outstandings
At 30th June 2001 countries where Barclays cross-border outstandings exceeded
1% of assets were Germany, United States and France. In this context, assets
comprise total assets as presented in the consolidated balance sheet and
include acceptances. On this basis total assets amounted to £366,286m at 30th
June 2001 (31 December 2000 £317,325m).
Cross-border outstandings exceeding 1% of assets As % Total
of assets £m
At 30th June 2001
Germany 2.0 7,355
United States 1.8 6,766
At 31st December 2000
Germany 2.4 7,505
United States 1.9 6,104
Japan 1.1 3,493
As at 30th June 2001, the countries with aggregate cross-border outstandings
between 0.75% and 1% of total Group Assets were France at £3,584m, Netherlands
at £3,556m and Japan at £2,314m. At 31st December 2000 the countries in this
category were Netherlands £3,174m and France £2,571m.
9. European Economic and Monetary Union (EMU)
Barclays is maintaining a prudent programme to validate and develop further
its existing plans and to conduct feasibility studies with selected suppliers
and partners.
Given the considerable uncertainty that continues to surround whether and when
the UK may enter, it has not been possible to draw any definitive conclusions
as to the final overall cost of preparing retail systems and operations.
10. Legal proceedings
Barclays is party to various legal proceedings, the ultimate resolution of which
is not expected to have a material adverse effect on the financial position of
the Group.
11. Geographical Analysis
Half-year ended
30.06.01 31.12.00 30.06.00
£m £m £m
Profit before tax
United Kingdom 1,509 1,327 1,432
Other European Union 199 202 196
United States 88 5 67
Rest of the World 127 120 147
1,923 1,654 1,842
Total assets
United Kingdom 267,129 234,099 195,319
Other European Union 21,724 20,009 17,214
United States 49,139 38,662 47,777
Rest of the World 25,958 23,420 26,075
363,950 316,190 286,385
12. Contingent liabilities and commitments
30.06.01 31.12.00 30.06.00
Contingent liabilities £m £m £m
Acceptances and endorsements 2,373 1,170 1,494
Guarantees and assets pledged as
collateral security 14,498 15,180 17,241
Other contingent liabilities 6,178 6,503 5,953
23,049 22,853 24,688
Commitments
Standby facilities, credit lines and
other commitments 94,184 87,971 93,219
13. Off - balance sheet financial instruments, including derivatives
The tables set out below analyse the contract or underlying principal amounts of
derivative financial instruments held for trading purposes and for the purposes
of managing the Group's structural exposures.
30.06.01 31.12.00 30.06.00
Foreign exchange derivatives £m £m £m
Contract or underlying principal amount
Forward foreign exchange 287,125 240,435 266,155
Currency swaps 143,769 125,812 106,463
Other exchange rate related contracts 83,084 105,603 91,943
513,978 471,850 464,561
Interest rate derivatives .
Contract or underlying principal amount
Interest rate swaps 1,461,078 1,247,705 1,151,077
Forward rate agreements 55,844 39,939 26,963
OTC options bought and sold 471,075 377,565 345,312
Other interest rate related contracts 821,909 460,674 328,378
2,809,906 2,125,883 1,851,730
Equity, stock index and commodity derivatives
Contract or underlying principal amount. 102,867 101,516 105,231
Other exchange rate related contracts are primarily over the counter (OTC)
options. Other interest rate related contracts are primarily exchange traded
options and futures.
Derivatives entered into as trading transactions, together with any associated
hedging thereof, are measured at fair value and the resultant profits and losses
are included in dealing profits. The tables below summarise the positive and
negative fair values of such derivatives, including an adjustment for netting
where the Group has the ability to insist on net settlement which is assured
beyond doubt, based on a legal right that would survive the insolvency of the
counterparty.
Positive fair values 30.06.01 31.12.00 30.06.00
£m £m £m
Foreign exchange derivatives 9,337 9,511 7,440
Interest rate derivatives 24,073 21,967 16,470
Equity, stock index and commodity derivatives
2,082 1,817 2,066
Effect of netting (22,343) (20,748) (13,213)
Cash collateral meeting offset criteria (191) (447) -
12,958 12,100 12,763
Negative fair values 30.6.01 31.12.00 30.6.00
£m £m £m
Foreign exchange derivatives 8,779 9,685 8,080
Interest rate derivatives 24,313 21,229 16,026
Equity, stock index and commodity derivatives
2,126 2,588 2,237
Effect of netting (22,343) (20,748) (13,213)
Cash collateral meeting offset criteria (409) (783) -
12,466 11,971 13,130
14. Market risk
Market risk is the risk of loss arising from adverse movements in the level or
volatility of market prices, which can occur in the interest rate, foreign
exchange, equity and commodity markets. It is incurred as a result of both
trading and asset/liability management activities.
The market risk management policies of the Group are determined by the Group
Risk Management Committee, which also determines overall market risk appetite.
The Group's policy is that exposure to market risk arising from trading
activities is concentrated in Barclays Capital. The Group's banking
businesses are also subject to market risk, which arises in relation to
non-trading positions, such as capital balances, demand deposits and customer
originated transactions and flows.
The Group uses a 'value at risk' measure as the primary mechanism for
controlling market risk. Daily Value at Risk (DVAR) is an estimate, with a
confidence level of 98%, of the potential loss which might arise if the
current positions were to be held unchanged for one business day. Daily
losses exceeding the DVAR figure are likely to occur, on average, only twice
in every one hundred business days. Actual outcomes are monitored regularly
to test the validity of the assumptions made in the calculation of DVAR.
Barclays Capital trading activities
In Barclays Capital, the formal process for the management of risk is through
the Barclays Capital Risk Management Committee. Day-to-day responsibility for
market risk lies with a dedicated global market risk management unit that
operates independently of the business areas.
Barclays Capital uses the historical simulation method for calculating DVAR.
The length of the historical sample is two years. In August 2000, Barclays
Capital introduced an enhanced historical simulation methodology for
calculating DVAR. The previous methodology segregated interest rate exposures
into two categories: government and non-government. For risk measurement
purposes, all non-government exposures were assumed to trade at LIBOR, and
were therefore implicitly assumed to have the same price volatility as an
interest rate swap.
The new methodology maps interest rate exposures into eight categories:
government, interest rate swaps and six credit grades for non-government
exposures. The greater definition provided allows the system to discriminate
between the market risk of holding bonds with different credit qualities, for
example AAA securities as against non-investment grade securities. In
particular, it provides a better measure of the effectiveness of hedging
strategies such as shorting governments or swaps against non-government bond
portfolios.
It has not been possible to apply the new methodology retrospectively to daily
positions prior to August 2000 and so the figures tabulated below are based on
the old methodology. On this basis there has been no significant change in
overall market risk exposure in 2001 with DVAR averaging £17.0m for the first
half of 2001 compared to £17.1m for the second half of 2000.
The new basis compared to the old basis, has on average, led to an increase in
reported DVAR of £3.1m. The impact has ranged from a reduction of £0.3m to an
increase of £6.0m. As at 30th June 2001 DVAR was £22.9m under the new basis
and £22.2m under the old basis (old basis, 31st December 2000 £19.0m, 30th
June 2000 £12.7m).
DVAR
Half-year ended
30.06.01
Average High* Low*
£m £m £m
Interest rate risk 16.2 22.3 10.3
Foreign exchange risk 1.8 5.1 0.6
Equities risk 3.8 6.4 2.1
Commodities risk 2.0 3.1 0.9
Diversification effect (6.8)
Total DVAR 17.0 22.2 11.4
DVAR
Half-year ended Half-year ended
31.12.00 30.06.00
Average High* Low* Average High* Low*
£m £m £m £m £m £m
Interest rate risk 16.3 23.4 11.3 16.1 23.7 10.7
Foreign exchange risk 2.6 4.3 1.8 3.2 4.7 1.9
Equities risk 4.1 7.1 2.2 3.7 6.3 1.4
Commodities risk 1.5 3.5 0.9 1.3 1.7 1.0
Diversification effect (7.4) (6.4)
Total DVAR 17.1 24.5 12.4 17.9 27.7 11.5
* The high (and low) DVAR figures reported for each category did not
necessarily occur on the same day as the high (and low) DVAR reported
as a whole. A corresponding diversification effect cannot be
calculated and is therefore omitted from the above table.
AVERAGE BALANCE SHEET AND NET INTEREST INCOME (UNAUDITED)
30.06.01 30.06.01 30.06.01 30.06.00 30.06.00 30.06.00
Average Interest Average Average Interest Average
Balance Rate Balance Rate
Assets £m £m % £m £m %
Treasury bills and
other eligible
bills:
In offices in the UK 3,427 88 5.1 4,839 83 3.4
In offices outside 1,100 47 8.5 814 44 10.8
the UK
Loans and advances
to banks:
In offices in the UK 6,829 174 5.1 7,745 205 5.3
In offices outside 6,001 158 5.3 6,703 191 5.7
the UK
Loans and advances
to customers:
In offices in the UK 114,205 4,312 7.6 75,388 3,111 8.3
In offices outside 25,080 798 6.4 18,577 564 6.1
the UK
Lease receivables:
In offices in the UK 4,459 137 6.1 4,845 174 7.2
In offices outside 230 10 8.7 510 28 11.0
the UK
Debt securities:
In offices in the UK 34,356 1,043 6.1 23,737 711 6.0
In offices outside 5,130 173 6.7 12,743 380 6.0
the UK
Average assets of 200,817 6,940 6.9 155,901 5,491 7.0
banking business
Average assets of 139,933 3,031 4.3 96,014 2,173 4.5
trading business
Total average 340,750 9,971 5.9 251,915 7,664 6.1
interest earning assets
Provisions (2,446) (2,054)
Non-interest earning 47,875 44,269
assets
Total average assets and
Interest income 386,179 9,971 5.2 294,130 7,664 5.2
Percentage of total average
assets in offices 30.3 33.3
outside the UK
Average interest
earning assets
and net interest income:
Banking business 200,817 3,006 3.0 155,901 2,473 3.2
Trading business 139,933 (92) (0.1) 96,014 (122) (0.3)
Discount rate adjustment on (2) - - (4) -
provisions
Profit on repurchase - - - 2 -
of loan capital
Total average
interest earning
assets and net 340,750 2,912 1.7 251,915 2,349 1.9
interest income
Total average
interest earning
assets related to:
Interest income 9,971 5.9 7,664 6.1
Interest expense (7,057) (4.2) (5,313) (4.2)
Discount rate (2) - (4) -
adjustment on
provisions
Profit on repurchase
of loan capital - - 2 -
2,912 1.7 2,349 1.9
Notes
(i) Loans and advances to customers and banks include all doubtful lendings,
including non-accrual lendings. Interest receivable on such lendings
has been included to the extent to which either cash payments have been
received or interest has been accrued in accordance with the income
recognition policy of the Group.
(ii) Average balances are based upon daily averages for most UK banking
operations and monthly averages elsewhere.
(iii) The average balance sheet does not include the retail life-fund assets
attributable to policyholders nor the related liabilities.
AVERAGE BALANCE SHEET AND NET INTEREST INCOME (UNAUDITED)
30.06.01 30.06.01 30.06.01 30.06.00 30.06.00 30.06.00
Average Interest Average Average Interest Average
balance rate balance Rate
Liabilities and shareholders' £m £m % £m £m %
funds
Deposits by banks:
In offices in the UK 27,644 613 4.4 19,153 440 4.6
In offices outside the UK 12,249 232 3.8 12,877 243 3.8
Customer accounts - demand
accounts:
In offices in the UK 13,704 113 1.6 13,225 89 1.3
In offices outside the UK 1,797 21 2.3 1,754 24 2.7
Customer accounts - savings
accounts:
In offices in the UK 36,365 606 3.3 25,403 453 3.6
In offices outside the UK 1,348 29 4.3 1,275 31 4.9
Customer accounts -
Other time deposits - retail:
In offices in the UK 36,881 1,002 5.4 26,019 754 5.8
In offices outside the UK 5,764 140 4.9 5,384 144 5.3
Customer accounts -
Other time deposits -
wholesale:
In offices in the UK 29,616 669 4.5 23,484 584 5.0
In offices outside the UK 8,452 215 5.1 8,776 239 5.4
Debt securities in issue:
In offices in the UK 29,326 784 5.3 15,820 398 5.0
In offices outside the UK 9,455 254 5.4 7,759 229 5.9
Dated and undated loan
capital
and other subordinated
liabilities
Principally in offices in the 7,030 237 6.7 4,369 155 7.1
UK
Internal funding of trading (39,515) (981) 5.0 (29,389) (765) 5.2
business
Average liabilities of 180,116 3,934 4.4 135,909 3,018 4.4
banking business
Average liabilities of 139,403 3,123 4.5 97,058 2,295 4.7
trading business
Total average interest
bearing liabilities 319,519 7,057 4.4 232,967 5,313 4.6
Interest free customer
deposits:
In offices in the UK 10,417 9,136
In offices outside the UK 2,051 1,666
Other non-interest bearing 38,830 40,896
liabilities
Minority interests and
shareholders' funds 15,362 9,465
Total average liabilities,
shareholders'
funds and interest expense 386,179 7,057 3.7 294,130 5,313 3.6
Percentage of total average
Non-capital liabilities in
offices
Outside the UK 30.4 31.2
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' FUNDS (UNAUDITED)
Half-year ended
30.06.01 31.12.00 30.06.00
£m £m £m
Share capital
At beginning of period 1,662 1,477 1,495
Shares issued 2 185 2
Repurchase of shares - - (20)
At end of period 1,664 1,662 1,477
Share premium account
At beginning of period 4,950 1,606 1,583
Premium arising on shares issued 38 3,344 23
At end of period 4,988 4,950 1,606
Revaluation reserve
At beginning of period 35 37 37
Exchange rate translation differences - (2) -
At end of period 35 35 37
Capital redemption reserve
At beginning of period 227 227 207
Repurchase of ordinary shares - - 20
At end of period 227 227 227
Other capital reserve
At beginning of period 469 469 320
Redemption of preference shares of subsidiary
undertaking 148 - 149
At end of period 617 469 469
Profit retained
At beginning of period 5,844 5,421 4,841
Profit retained 924 521 1,025
Exchange rate translation differences - (8) 27
Repurchase of ordinary shares - - (291)
Transfer to capital redemption reserve - - (20)
Shares issued to the Quest in relation to
share option schemes for staff (15) (102) (12)
Transfer to other capital reserve (148) - (149)
Other Items (30) 12 -
At end of period 6,575 5,844 5,421
Total reserves 12,442 11,525 7,760
Total shareholders' funds 14,106 13,187 9,237
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (UNAUDITED)
Half year ended
30.06.01 31.12.00 30.06.00
£m £m £m
Profit attributable to the members of Barclays PLC 1,307 1,153 1,320
Exchange rate translation differences (1) (12) 27
Other items (10) 8 -
Joint ventures and associated undertakings (19) 6 -
Total recognised gains and losses recognised during 1,277 1,155 1,347
the period
Historical cost profits and losses
There is no material difference between profit before tax and profit retained,
as reported, and historical cost profits.
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Half-year Full year
Note 30.06.01 30.06.01 30.6.01 30.6.01 31.12.01 31.12.01
£m £m £m £m £m £m
Net cash inflow
from operating
activities 1 2,484 7,766 8,486
Dividends
received from
associated
undertakings 2 1 1
Returns on
investments and
servicing of
finance:
Interest paid
on loan capital
and other
subordinated
liabilities (166) (164) (346)
Preference
dividends paid
by subsidiary
undertaking (5) (16) (24)
Payment to
reserve capital (56) - (24)
instrument
holders
Dividends paid (10) (7) (10)
to minority
shareholders
Net cash
outflow from
returns on
investment and
servicing of
finance (237) (187) (404)
Tax paid (328) (419) (636)
Capital
expenditure and
financial
investment:
Capital (166) (93) (365)
expenditure
Sale of 36 46 112
property and
equipment
Purchase of (8,594) (11,324) (14,490)
investment
securities
Redemption of 5,107 2,145 5,666
investment
securities
Sale of 3,871 2,628 4,115
investment
securities
Net cash
inflow/(outflow)
from capital
expenditure and 254 (6,598) (4,962)
financial
investment
Acquisitions
and disposals:
Acquisition of 2 (45) - (2,421)
subsidiary
undertakings
Sale of - - 13
associated
undertakings
Sale of other 3 4 283 307
group undertakings
Net cash
(outflow)/inflow
from acquisitions
and disposals (41) 283 (2,101)
Equity dividend (632) (484) (779)
paid
Net cash 1,502 362 (395)
inflow/(outflow)
before
financing
Financing:
Issue of
Reserve Capital 520 510 1,350
Instruments
(net of
expenses)
Issue of loan 1,724 - 861
capital and
other
subordinated
liabilities
(net of
expenses)
Repurchase of (254) (9) (212)
loan capital
and other
subordinated
liabilities
Repurchase of - (311) (311)
ordinary shares
Issue of
ordinary shares 25 13 81
(net of
contribution to
the Quest)
Redemption of (148) (149) (149)
preference
shares
Net cash inflow 1,867 54 1,620
from financing
Increase in 4 3,369 416 1,225
cash
NOTES TO CONSOLIDATED CASHFLOW STATEMENT (UNAUDITED)
1. Reconciliation of operating profit to net operating cashflows
Half year Full Year
30.6.01 30.6.00 31.12.00
£m £m £m
Operating profit 1,933 1,674 3,290
Provisions for bad and doubtful debts 498 376 817
Depreciation and amortisation 260 127 302
Net (decrease) / increase in accrued expenditure
and prepayments (323) 93 188
Provisions for contingent liabilities and
commitments 2 (1) (1)
Other provisions for liabilities and charges 70 143 313
Interest on dated and undated loan capital and
other subordinated liabilities 237 155 335
Increase in shareholders' interest in the
long-term assurance fund (90) (75) (165)
Profit on redemption/repurchase of loan - (2) (2)
capital
Net (increase) / decrease in net interest and
commission receivable (255) (50) 369
Net profit on disposal of investments and fixed
assets (44) (31) (60)
Other non-cash movements 20 21 35
2,308 2,430 5,421
Net change in items in transit and items in
course of collection (250) (314) (241)
Net increase in other credit balances 5,175 4,256 1,857
Net increase in loans and advances to
banks and customers (26,569) (16,081) (7,942)
Net increase in deposits and debt
securities in issue 38,796 22,434 13,611
Net (increase) / decrease in other assets (1,205) 536 1,235
Net increase in other debt securities
and equity shares (13,420) (3,356) (7,079)
Net (increase) / decrease in treasury and other
eligible bills (2,192) (2,291) 1,676
Other non-cash movements (159) 152 (52)
Net cash inflow from operating
activities 2,484 7,766 8,486
NOTES TO CONSOLIDATED CASHFLOW STATEMENT ( UNAUDITED)
2. Cash flow in respect of the purchase of subsidiary undertakings during
the period
Half-year ended Full year
30.6.01 30.6.00 31.12.00
£m £m £m
Cash consideration, including acquisition expenses 45 - 2,494
Cash at bank and in hand acquired - - (73)
Net cash outflow in respect of the purchase of
subsidiary undertakings 45 - 2,421
3. Sale of subsidiary and associated undertakings
Half-year ended Full year
30.6.01 30.6.00 31.12.00
£m £m £m
Goodwill written off 7 - -
Advances and other accounts 402 940 949
Deposits and other borrowings (416) (870) (849)
Net (liabilities) / assets disposed of (7) 70 100
Net (loss) / profit on disposal (4) 178 207
(11) 248 307
Amounts not yet settled (including deferred
consideration) 15 35 -
Settled by net cash received 4 283 307
4. Analysis of cash balances
30.6.01 1.1.01 Change 30.6.00 1.1.00 Change
£m £m £m £m £m £m
Cash and balances at central bank 1,048 1,243 (195) 588 1,166 (578)
Loans and advances to other banks 5,642 2,094 3,548 1,978 967 1,011
repayable on demand
6,690 3,337 3,353 2,566 2,133 433
Half-year ended Full year
30.6.01 30.6.00 31.12.00
£m £m £m
Balance at beginning of period / year 3,337 2,133 2,133
Net increase in cash before the
effect of exchange rate movements 3,369 416 1,225
Effect of exchange rate movements (16) 17 (21)
3,353 433 1,204
Balance at end of period / year 6,690 2,566 3,337
ALTERNATE BARCLAYS PLC/WOOLWICH PLC PRO FORMA DISCLOSURE
Basis of preparation of pro forma results
In order to provide a benchmark against which the Group's future performance
can be compared, pro forma results have been prepared for the six months ended
31st December 2000 and six months ended 30th June 2000 assuming that the
acquisition of Woolwich plc took place on 1st January 2000.
The pro forma results for the six months ended 31st December 2000 and six
months ended 30th June 2000 have been prepared on the following basis:
Changes in accounting policies.
The results for Woolwich plc have been restated using Barclays Group
accounting policies. This has resulted in mortgage incentives and software
costs, previously capitalised and amortised, being expensed as incurred.
Changes in accounting estimates
The results for Woolwich plc have been adjusted to reflect the Barclays
depreciation rates and other accounting estimates.
Adjustment to reflect net funding of the acquisition of Woolwich plc
Interest received has been reduced by £52m in the six months to 30th June 2000
and £76m in the six months to 31st December 2000 to reflect interest foregone
had the cash element of the acquisition been paid on 1st January 2000. This
is based on the assumption that the amount would have been deposited at the
internal transfer price of cash, which is calculated based on an average of
one-month sterling LIBOR over the period.
Results of businesses disposed of
The results of any businesses disposed of during 2000 by either Barclays or
Woolwich plc have been eliminated, together with any profits or losses on
disposal. Proceeds of £286m are assumed to have been received on 1st January
2000 and interest received adjusted on the same basis as for the funding
adjustment above. No adjustment is made for acquisitions and disposals in
2001, the affect of which is immaterial.
Goodwill amortisation.
Amortisation of £103m per six month period based on goodwill balance of £4,121m
over its estimated economic life of 20 years has been included in the
pro forma accounts.
Costs of acquisition
Incremental costs incurred by Woolwich plc in relation to the acquisition have
not been included.
ALTERNATE BARCLAYS PLC/WOOLWICH PLC PRO FORMA DISCLOSURE (CONTINUED)
PRO FORMA CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR BARCLAYS PLC AND
WOOLWICH PLC (EXCLUDING BUSINESSES DISPOSED OF IN 2000)
(UNAUDITED)
Half year ended
Actual Pro forma
30.6.01 31.12.00 30.6.00
£m £m £m
Interest receivable 6,968 7,037 6,509
Interest payable (3,944) (4,181)(3,825)
Profit on redemption/repurchase of loan capital - - 2
Net interest income 3,024 2,856 2,686
Net fees and commissions receivable 1,786 1,865 1,732
Dealing profits 570 262 415
Other operating income 218 214 218
Total non-interest income 2,574 2,341 2,365
Operating income 5,598 5,197 5,051
Administration expenses - staff costs (1,738) (1,595)(1,594)
Administration expenses - other (1,062) (1,100)(1,035)
Depreciation and amortisation (152) (147) (147)
Operating expenses (2,952) (2,842)(2,776)
Operating profit before provisions 2,646 2,355 2,275
Provisions for bad and doubtful debts (498) (453) (397)
Provisions for contingent liabilities and (2) - 1
commitments
(Loss)/income from joint ventures and associated
undertakings (6) 2 (12)
Operating profit 2,140 1,904 1,867
Restructuring charge (63) (126) (106)
Woolwich Integration costs (19) (7) -
Woolwich fair value adjustments (16) (6) -
Goodwill amortisation (115) (110) (109)
Exceptional items (4) - -
Profit on ordinary activities before tax 1,923 1,655 1,652
The basis for preparation of the 2000 numbers above is set out on page 69.
US GAAP DATA (UNAUDITED)
The following unaudited financial information has been adjusted from data
prepared under UK GAAP to reflect significant differences from US GAAP.
30.6.01 30.6.01 30.6.00 30.6.00
UK US UK US
GAAP GAAP GAAP GAAP
£m £m £m £m
Profit attributable to the members
Of Barclays PLC - Net income 1,307 1,065 1,320 1,082
Shareholders' funds 14,106 13,645 9,237 8,578
Total assets 363,950 381,827 286,385 289,639
PER ORDINARY SHARE Pence Pence Pence Pence
Earnings 78.6 64.1 88.9 72.9
Diluted Earnings - US GAAP - 63.4 - 72.1
Dividend 23.0 38.0 20.0 32.5
Net asset value 848 820 626 581
PERFORMANCE RATIOS % % % %
Net income as a percentage of
average total assets 0.7 0.5 0.9 0.7
average shareholders' funds 19.0 15.9 29.6 25.5
Dividends as a percentage of net
income 29.3 59.3 22.3 44.7
Average shareholders' funds as a
percentage of average total assets 3.6 3.3 3.0 2.8
OTHER INFORMATION
Registered office
54 Lombard Street, London, EC3P 3AH, England, United Kingdom. Tel: 020 7699 5000
Registrar
The Registrar to Barclays PLC, PO Box 82, The Pavilions, Bridgwater Road,
Bristol, BS99 7NH
Tel: 0870 702 0196
Listing
The principal trading market for Barclays PLC ordinary shares is the London
Stock Exchange. Ordinary shares are also listed on the New York Stock Exchange
and the Tokyo Stock Exchange. Trading on the New York Stock Exchange is in the
form of ADSs under the ticker symbol 'BCS'. Each ADS represents four ordinary
shares of £1 and is evidenced by an ADR. The ADR depositary is Morgan Guaranty
Trust Company of New York (tel: (781) 575 4328).
Filings with the SEC
Statutory accounts for the year ended 31st December 2000, which also include
the joint annual report on Form 20-F of Barclays PLC and Barclays Bank PLC to
the Securities and Exchange Commission in the United States of America, can be
obtained from the Vice President, Corporate Communications, Barclays Bank PLC,
222 Broadway, New York, NY 10265 or from the Head of Investor Relations at
Barclays registered office address shown above.
For further information; please contact: John Varley
Finance Director
020 7699 5000 - Switchboard
Ian Roundell
Investor Relations Director
020 7699 2961 - Direct Line
Leigh Bruce
Corporate Communications Director
020 7699 2658 - Direct Line
More information on Barclays, including the 2001 interim results, can be found
on our website at the following address: http://www.investor.barclays.com
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