Form 6-K BARCLAYS PLC For: Sep 30

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

October 21, 2021

Commission File Number: 001-09246

Barclays PLC

(Name of Registrant)

1 Churchill Place

London E14 5HP

England

(Address of Principal Executive Office)

Interim Results Announcement

Indicate by check mark whether the registrant files or will file annual reports under cover of

Form 20-F or Form 40-F.

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

This report on Form 6-K shall be deemed to be incorporated by reference in the registration statements on Form S-8 (No. 333-153723, 333-167232, 333-173899, 333-183110, 333-195098, 333-216361, 333-225082, 333-236905, 333-236904 and 333-254570) and Form F-3 (333-253693) of Barclays PLC and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.


The Report comprises the following:

Results of Barclays PLC Group as of, and for the nine months ended, 30 September 2021.

A table setting forth the issued share capital of Barclays PLC and the Barclays PLC Group’s total shareholders’ equity, indebtedness and contingent liabilities as at 30 September 2021, the most recent reported statement of position, and updated for any significant or material items since that reporting date.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

BARCLAYS PLC

(Registrant)

Date: October 21, 2021

By:

/s/ Garth Wright

Name: Garth Wright

Title: Assistant Secretary

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Exhibit 99.1

Barclays PLC

This exhibit includes portions from the previously published Results Announcement of Barclays PLC relating to the nine months ended 30 September 2021, as amended in part to comply with the requirements of Regulation G and Item 10(e) of Regulation S-K promulgated by the US Securities and Exchange Commission (SEC), including the reconciliation of certain financial information to comparable measures prepared in accordance with International Financial Reporting Standards (IFRS). The purpose of this document is to provide such additional disclosure as required by Regulation G and Regulation S-K item 10(e), to delete certain information not in compliance with SEC regulations and to include reconciliations of certain non-IFRS figures to the most directly equivalent IFRS figures for the periods presented. This document does not update or otherwise supplement the information contained in the previously published Results Announcement. Any reference to a website in this document is made for informational purposes only, and information found at such websites is not incorporated by reference into this document.

An audit opinion has not been rendered in respect of this document.

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The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2021 to the corresponding nine months of 2020 and balance sheet analysis as at 30 September 2021 with comparatives relating to 31 December 2020 and 30 September 2020. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.

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

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, attached hereto.

The information in this announcement, which was approved by the Board of Directors on 20 October 2021, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2020, which contained an unmodified 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.

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.

Non-IFRS performance measures

Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 41 to 46 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

Key non-IFRS measures included in this document, and the most directly comparable IFRS measures, are:

– Average allocated equity represents the average shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is average equity. A reconciliation is provided on pages 44 to 45;

– Average allocated tangible equity is calculated as the average of the previous month’s period end allocated tangible equity and the current month’s period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period. Period end allocated tangible equity is calculated as 13.5% (2020: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Group’s tangible shareholders’ equity and the amounts allocated to businesses. The comparable IFRS measure is average equity. A reconciliation is provided on pages 44 to 45;

– Average tangible shareholders’ equity is calculated as the average of the previous month’s period end tangible equity and the current month’s period end tangible equity. The average tangible shareholders’ equity for the period is the average of the monthly averages within that period. The comparable IFRS measure is average equity. A reconciliation is provided on pages 44 to 45;

– Return on average allocated equity represents the return on shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is return on equity. A reconciliation is provided on page 46;

– Return on average allocated tangible equity is calculated as the annualised profit after tax attributable to ordinary equity holders of the parent, as a proportion of average allocated tangible equity. The comparable IFRS measure is return on equity. A reconciliation is provided on pages 46;

– Return on average tangible shareholders’ equity is calculated as the annualised profit after tax attributable to ordinary equity holders of the parent, as a proportion of average shareholders’ equity excluding non-controlling interests and other

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equity instruments adjusted for the deduction of intangible assets and goodwill. The comparable IFRS measure is return on equity. A reconciliation is provided on page 46; and

– Tangible net asset value per share is calculated by dividing shareholders’ equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The comparable IFRS measure is net asset value per share. A reconciliation is provided on page 46.

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. Forward-looking statements can be made in writing but also may be made verbally by members of the management of the Group (including, without limitation, during management presentations to financial analysts) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group’s future financial position, income growth, assets, impairment charges, provisions, business strategy, capital, leverage and other regulatory ratios, capital distributions (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets, estimates of capital expenditures, plans and objectives for future operations, projected employee numbers, IFRS impacts 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. The forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by changes in legislation, the development of standards and interpretations under IFRS, including 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, the policies and actions of governmental and regulatory authorities, the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, 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 applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions; the effects of any 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 entity within the Group or any securities issued by such entities; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the UK’s exit from the European Union (“EU”), the effects of the EU-UK Trade and Cooperation Agreement and the disruption that may subsequently result in the UK and globally; the risk of cyber-attacks, information or security breaches or technology failures on the Group’s reputation, business or operations; 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 financial position, future results, capital distributions, capital, leverage or other regulatory ratios or other financial and non-financial metrics or performance measures may differ materially from the statements or 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 Barclays PLC’s filings with the SEC (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the fiscal year ended 31 December 2020 and Interim Results Announcement for the six months ended 30 June 2021 filed on Form 6-K), which are available on the SEC’s website at www.sec.gov.

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

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The Group’s diversified business model delivered a record Group profit before tax of £6.9bn (Q320 YTD: £2.4bn), a return on equity (RoE) of 12.7% (Q320 YTD: 3.1%), a return on tangible equity (RoTE) of 14.9% (Q320 YTD: 3.6%) and earnings per share (EPS) of 30.8p (Q320 YTD: 7.6p)

Key financial metrics:

Income Cost: income Profit before tax RoE RoTE EPS CET1 ratio
Q321 YTD

£16.8bn

64%

£6.9bn

12.7  %

14.9%

30.8p

15.4%

Q321

£5.5bn

64%

£2.0bn

10.2  %

11.9%

8.5p

Performance highlights:

Strong Corporate and Investment Bank (CIB) performance: Investment Banking fees and Equities income had their best Q3 YTD on a comparable basis1 driving a CIB RoE of 16.4% (Q320 YTD: 10.5%) and RoTE of 16.4% (Q320 YTD: 10.5%)

Ongoing consumer recovery and well positioned for a rising rate environment: continue to experience strong UK mortgage and deposit volumes. Although yet to translate into meaningful unsecured balance growth, positive trends in UK and US consumer spending and in payments volumes have been observed following easing of lockdown restrictions

Investing for growth: reinvesting efficiency savings to drive income growth. Excluding structural cost actions and performance costs, Group total operating expenses were flat

Net credit impairment release: £0.6bn Q321 YTD release driven by an improved macroeconomic outlook and benign credit performance

Strong capital: Common equity tier 1 (CET1) ratio of 15.4%, above the target range of 13-14%

Summary outlook:

Returns: expect to deliver a RoTE above 10% in 2021

Impairment: the impairment run rate is expected to remain below historical levels in coming quarters

Costs: excluding structural cost actions and performance costs, FY21 costs are expected to be c.£12bn2. The Group is evaluating planned structural cost actions for Q421

Capital: the CET1 ratio is expected to remain above the target range of 13-14% at 31 December 2021

Capital returns: maintaining a progressive ordinary dividend policy and additional cash returns, including share buybacks, as appropriate

1Period covering Q114 – Q321. Pre 2014 financials were not restated following re-segmentation in Q116.

2Group cost outlook is based on an average rate of 1.38 (USD/GBP) in H221 and subject to foreign currency movements.

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Barclays Group results
for the half year ended
30.09.21 30.09.20
£m £m % Change
Net interest income 5,843 6,278 (7)
Net fee, commission and other income 10,937 10,547 4
Total income 16,780 16,825
Credit impairment releases/(charges) 622 (4,346)  
Net operating income 17,402 12,479 39
Operating expenses (10,578) (9,954) (6)
Litigation and conduct (131) (106) (24)
Total operating expenses (10,709) (10,060) (6)
Other net income 247
Profit before tax 6,940 2,419  
Tax charge (1,076) (441)  
Profit after tax 5,864 1,978  
Non-controlling interests (20) (41) 51
Other equity instrument holders (586) (631) 7
Attributable profit 5,258 1,306  
Performance measures
Return on average shareholders’ equity 12.7% 3.1%
Return on average tangible shareholders’ equity 14.9% 3.6%
Average shareholders’ equity (£bn) 55.1 56.6
Average tangible shareholders’ equity (£bn) 47.1 48.5
Cost: income ratio 64% 60%
Loan loss rate (bps) 164
Basic earnings per share 30.8p 7.6p
Basic weighted average number of shares (m) 17,062 17,298 (1)
Period end number of shares (m) 16,851 17,353 (3)
As at 30.09.21 As at 31.12.20 As at 30.09.20

Balance sheet and capital management1

£bn £bn £bn
Loans and advances at amortised cost 353.0 342.6 344.4
Loans and advances at amortised cost impairment coverage ratio 1.7% 2.4% 2.5%
Deposits at amortised cost 510.2 481.0 494.6
Net asset value per share 335p 315p 322p
Tangible net asset value per share 287p 269p 275p
Common equity tier 1 ratio 15.4% 15.1% 14.6%
Common equity tier 1 capital 47.3 46.3 45.5
Risk weighted assets 307.5 306.2 310.7
Average UK leverage ratio 4.9% 5.0% 5.1%
UK leverage ratio 5.1% 5.3% 5.2%
Funding and liquidity
Group liquidity pool (£bn) 293 266 327
Liquidity coverage ratio 161% 162% 181%
Loan: deposit ratio 69% 71% 70%

1Refer to pages 30 to 36 for further information on how capital, Risk Weighted Assets (RWAs) and leverage are calculated.

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Group performance1

The Group’s diversified business model enabled Barclays to deliver a record profit before tax of £6,940m (Q320 YTD: £2,419m), RoE of 12.7% (Q3 YTD: 3.1%), RoTE of 14.9% (Q320 YTD: 3.6%) and EPS of 30.8p (Q320 YTD: 7.6p)

Total income was stable at £16,780m (Q320 YTD: £16,825m). Barclays UK income increased 2%. Barclays International income decreased 2%, with CIB income down 1% and Consumer, Cards and Payments (CC&P) income down 6%. Excluding the impact of the 9% depreciation of average USD against GBP, total income was up, reflecting the Group’s diversified income streams

Credit impairment net release of £622m (Q320 YTD: £4,346m charge). The net release included a reversal of £1.1bn in non-default charges, primarily reflecting the improved macroeconomic outlook. Excluding this reversal, the charge was £0.5bn, reflecting reduced unsecured lending balances and low delinquency. Management judgements have been maintained in the quarter in respect of customers and clients considered to be potentially more vulnerable as government and other support schemes have started to reduce. The reduction in unsecured lending balances and growth in secured balances have contributed to a decrease in the Group’s loan coverage ratio to 1.7% (December 2020: 2.4%). Loan coverage ratios in unsecured and wholesale loan portfolios remained elevated compared to pre-COVID-19 pandemic levels

Total operating expenses increased 6% to £10,709m, due to structural cost actions of £392m primarily relating to the real estate review in Q221, higher performance costs that reflect improved returns, and continued investment and business growth, partially offset by the benefit from the depreciation of average USD against GBP and efficiency savings. This resulted in a cost: income ratio of 64% (Q320 YTD: 60%)

The effective tax rate was 15.5% (Q320 YTD: 18.2%). This reflects a £402m tax benefit recognised for the re-measurement of the Group’s UK deferred tax assets (DTAs) as a result of the UK corporation tax rate increase from 19% to 25% effective from 1 April 2023. The UK Government is reviewing the additional 8% surcharge tax that applies to banks’ profits and if the conclusion of that review is that the surcharge is reduced then the Group’s UK DTAs would be re-measured again and decreased, the exact timing of an enactment of a reduction in the surcharge is uncertain but would be expected to occur in H122

Attributable profit was £5,258m (Q320 YTD: £1,306m)

Following the completion of the £700m share buyback announced with FY20 results and the ongoing £500m share buyback announced with H121 results, the period end number of shares was 16,851m (December 2020: 17,359m)

Total assets increased to £1,407bn (December 2020: £1,350bn) primarily due to a £37bn increase in cash at central banks, a £29bn increase in financial assets at fair value due to an increase in secured lending, a £18bn increase in cash collateral and settlement balances and a £17bn increase in trading portfolio assets due to increased activity, partially offset by a £44bn decrease in derivative assets driven by an increase in major interest rate curves

Deposits at amortised cost increased £29bn to £510bn further strengthening the Group’s liquidity position and contributing to a loan: deposit ratio of 69% (December 2020: 71%)

Net asset value per share increased to 335p. Tangible net asset value (TNAV) per share increased to 287p (December 2020: 269p) primarily reflecting 30.8p of EPS, partially offset by negative reserve movements

Barclays UK

Profit before tax increased to £1,957m (Q320 YTD: £264m). RoE was 13.2% (Q320 YTD: 1.6%) and RoTE was 17.9% (Q320 YTD: 2.2%) reflecting materially lower credit impairment charges

Total income increased 2% to £4,837m. Net interest income reduced 1% to £3,889m with a net interest margin (NIM) of 2.53% (Q320 YTD: 2.63%) as strong customer retention and improved margins in mortgages was more than offset by lower unsecured lending balances. Net fee, commission and other income increased 18% to £948m, returning back towards pre-COVID-19 pandemic levels

Personal Banking income increased 10% to £2,900m, reflecting strong growth in mortgages alongside improved margins, balance growth in deposits and the non-recurrence of COVID-19 customer support actions, partially offset by deposit margin compression from lower interest rates and lower unsecured lending balances

Barclaycard Consumer UK income decreased 23% to £898m as reduced borrowing and repayments by customers resulted in a lower level of interest earning lending (IEL) balances

Business Banking income increased 12% to £1,039m due to lending and deposit balance growth from £12.1bn of government scheme lending and the non-recurrence of COVID-19 and related customer support actions, partially offset by deposit margin compression from lower interest rates

1The 9% depreciation of average USD against GBP adversely impacted income and profits and positively impacted total operating expenses.

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Barclays UK (continued)

Credit impairment net release of £306m (Q320 YTD: £1,297m charge) driven by an improved macroeconomic outlook and lower unsecured lending balances due to customer repayments and lower delinquencies. As at 30 September 2021, 30 and 90 day arrears rates in UK cards were 1.0% (Q320: 1.7%) and 0.3% (Q320: 0.8%) respectively

Total operating expenses were stable at £3,187m (Q320 YTD: £3,172m) reflecting investment spend and higher operational and customer service costs primarily driven by increased volumes, offset by efficiency savings

Loans and advances to customers at amortised cost increased 2% to £208.6bn predominantly from £9.2bn of mortgage growth following a strong flow of new applications as well as strong customer retention, offset by a £2.3bn decrease in the Education, Social Housing and Local Authority (ESHLA) portfolio carrying value as interest rate yield curves have steepened, £1.7bn lower unsecured lending balances and £0.5bn lower Business Banking balances as repayment of government scheme lending takes effect

Customer deposits at amortised cost increased 7% to £256.8bn reflecting an increase of £13.6bn and £2.8bn in Personal Banking and Business Banking respectively, further strengthening the liquidity position and contributing to a loan: deposit ratio of 86% (December 2020: 89%)

RWAs decreased to £73.2bn (December 2020: £73.7bn) as growth in mortgages was more than offset by a reduction in unsecured lending and the ESHLA portfolio

Barclays International

Profit before tax increased 97% to £5,500m with a RoE of 16.1% (Q320 YTD: 7.3%), reflecting a RoE of 16.4% (Q320 YTD: 10.5%) in CIB and 13.9% (Q320 YTD: (9.3)%) in CC&P and a RoTE of 16.4% (Q320 YTD: 7.5%), reflecting a RoTE of 16.4% (Q320 YTD: 10.5%) in CIB and 16.2% (Q320 YTD: (10.6)%) in CC&P

The 9% depreciation of average USD against GBP adversely impacted income and profits and positively impacted total operating expenses

Total income decreased to £12,155m (Q320 YTD: £12,435m)

CIB income decreased 1% to £9,702m

Global Markets income decreased 14% to £5,368m as a strong performance in Equities, representing the best Q3 YTD on a comparable basis1, was more than offset by FICC. Equities income increased 28% to £2,466m driven by strong client activity in derivatives and increased client balances in financing. FICC income decreased 33% to £2,902m due to tighter spreads and the non-recurrence of prior year client activity levels

Investment Banking fees income, representing the best Q3 YTD on a comparable basis1, increased 37% to £2,703m driven by a strong performance in Advisory and Equity capital markets reflecting an increase in the fee pool and an increased market share2

Within Corporate, Transaction banking income increased 1% to £1,219m as deposit balance growth was partially offset by margin compression. Corporate lending income increased 2% to £412m driven by the non-recurrence of losses on the mark-to-market of lending and related hedge positions, partially offset by a current year write-off on a single name

CC&P income decreased 6% to £2,453m

International Cards and Consumer Bank income decreased 17% to £1,540m reflecting lower cards balances

Private Bank income increased 9% to £581m, reflecting client balance growth and a gain on a property sale

Unified Payments income increased 60% to £332m driven by the non-recurrence of a c.£100m valuation loss on Barclays’ preference shares in Visa Inc. in Q220 and merchant acquiring turnover growth following easing of lockdown restrictions

Credit impairment net release of £311m (Q320 YTD: £2,989m charge) was driven by an improved macroeconomic outlook

CIB credit impairment net release of £400m (Q320 YTD: £1,507m charge) was supported by limited single name wholesale loan charges

CC&P credit impairment charges of £89m (Q320 YTD: £1,482m) was partially driven by lower delinquencies and higher customer repayments. As at 30 September 2021, 30 and 90 day arrears in US cards were 1.5% (Q320: 2.3%) and 0.7% (Q320: 1.1%) respectively

Total operating expenses increased 5% to £7,003m

CIB total operating expenses increased 3% to £5,260m due to higher performance costs that reflect an improvement in returns

CC&P total operating expenses increased 10% to £1,743m driven by the impact of higher investment spend, including marketing, and customer remediation costs related to a legacy portfolio

1Period covering Q114 – Q321. Pre 2014 financials were not restated following re-segmentation in Q116.

2Data source: Dealogic for the period covering 1 January to 30 September 2021.

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Barclays International (continued)

Total assets increased to £1,076bn (December 2020: £1,042bn) primarily due to a £30bn increase in financial assets at fair value, due to an increase in secured lending, a £18bn increase in cash collateral and settlements balances, and a £17bn increase in trading portfolio assets, due to increased activity, partially offset by a £45bn decrease in derivative assets driven by an increase in major interest rate curves

RWAs increased to £222.7bn (December 2020: £222.3bn)

Head Office

Loss before tax was £517m (Q320 YTD: £639m)

Total income was an expense of £212m (Q320 YTD: £331m), which primarily reflected hedge accounting, funding costs on legacy capital instruments and treasury items, partially offset by mark-to-market gains on legacy investments and the recognition of dividends on Barclays’ stake in Absa Group Limited

Total operating expenses were £519m (Q320 YTD: £217m), which included a charge of £266m relating to structural cost actions taken as part of the real estate review in Q221, as well as costs associated with the discontinued use of software assets

Other net income was £209m (Q320 YTD: £31m expense) driven by a fair value gain in Barclays’ associate investment holding in the Business Growth Fund

Group capital and leverage

The CET1 ratio increased to 15.4% (December 2020: 15.1%)

CET1 capital increased by £1.0bn to £47.3bn (December 2020: £46.3bn) as profit before tax of £6.9bn was partially offset by the removal of temporary regulatory supporting measures introduced in 2020, share buybacks, dividends and equity coupons paid and foreseen and pensions deficit contribution payments. The £1.1bn release of non-defaulted credit impairment was more than offset by the related reduction in IFRS 9 transitional relief which also decreased due to impairment migrations from Stage 2 to Stage 3 and the relief on the pre-2020 impairment charge reducing from 70% to 50% in 2021

RWAs increased £1.3bn to £307.5bn (December 2020: £306.2bn) primarily due to a growth in mortgages within Barclays UK, partially offset by lower consumer lending

The average UK leverage ratio decreased to 4.9% (December 2020: 5.0%). The average leverage exposure increased by £52.9bn to £1,199.8bn (December 2020: £1,146.9bn) largely driven by an increase in securities financing transactions (SFTs), potential future exposure (PFE) on derivatives and trading portfolio assets (TPAs)

Group funding and liquidity

The liquidity pool was £293bn (December 2020: £266bn) and the liquidity coverage ratio remained significantly above the 100% regulatory requirement at 161% (December 2020: 162%), equivalent to a surplus of £107bn (December 2020: £99bn). The increase in the pool is driven by deposit growth, borrowing from the Bank of England’s Term Funding Scheme with additional incentives for SMEs and a seasonal increase in short-term wholesale funding, which were partly offset by an increase in business funding consumption

Wholesale funding outstanding, excluding repurchase agreements, was £165.2bn (December 2020: £145.0bn). The Group issued £8.2bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) during the year. The Group is well advanced in its MREL issuance plans relative to the estimated 1 January 2022 requirement

Capital distributions

Barclays understands the importance of delivering attractive total cash returns to shareholders. Barclays is therefore committed to maintaining an appropriate balance between total cash returns to shareholders, investment in the business and maintaining a strong capital position. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the Group. The Board will also continue to supplement the ordinary dividends with additional cash returns, including share buybacks, to shareholders as appropriate

Barclays paid a half year dividend of 2.0p per share on 17 September 2021 and initiated the share buyback of up to £500m announced with H121 results in August 2021, of which £279m was completed as at 30 September 2021. This was in addition to the £700m share buyback completed in April 2021

Dividends will continue to be paid semi-annually, with the half year dividend expected to represent, under normal circumstances, around one-third of the total dividend for the year

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Group outlook and targets

Returns: expect to deliver a RoTE above 10% in 2021

Impairment: the impairment run rate is expected to remain below historical levels in coming quarters given reduced unsecured lending balances and the improved macroeconomic outlook, acknowledging the continuing uncertainty

Costs: FY21 costs, excluding structural cost actions and performance costs, are expected to be c.£12bn1. The Group will continue to drive efficiencies in its franchises and is evaluating planned structural cost actions in Q421, including in Barclays UK

Capital: the CET1 ratio is expected to remain above the target range of 13-14% at 31 December 2021, given the uncertain economic environment and known capital headwinds in 2022 of c.75bps, which includes a c.40bps impact from the reversal of software amortisation benefit from 1 January 2022

Capital returns: capital returns policy incorporates a progressive ordinary dividend, supplemented by additional cash returns, including share buybacks as appropriate. Dividends will continue to be paid semi-annually, with the half year dividend expected to represent, under normal circumstances, around one-third of the total dividend for the year

Barclays continues to target the following over the medium term:

Returns: RoTE of greater than 10%

Cost efficiency: cost: income ratio below 60%

Capital adequacy: CET1 ratio in the range of 13-14%

Tushar Morzaria, Group Finance Director

1Group cost outlook is based on an average rate of 1.38 (USD/GBP) in H221 and subject to foreign currency movements.

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Barclays UK Nine months ended Nine months ended
30.09.21 30.09.20
Income statement information £m £m % Change
Net interest income 3,889 3,917 (1)
Net fee, commission and other income 948 804 18
Total income 4,837 4,721 2
Credit impairment releases/(charges) 306 (1,297)  
Net operating income 5,143 3,424 50
Operating expenses (3,155) (3,136) (1)
Litigation and conduct (32) (36) 11
Total operating expenses (3,187) (3,172)
Other net income 1 12 (92)
Profit before tax 1,957 264  
Attributable profit 1,336 165  
As at 30.09.21 As at 31.12.20 As at 30.09.20
Balance sheet information £bn £bn £bn
Loans and advances to customers at amortised cost 208.6 205.4 203.9
Total assets 312.1 289.1 294.5
Customer deposits at amortised cost 256.8 240.5 232.0
Loan: deposit ratio 86% 89% 91%
Risk weighted assets 73.2 73.7 76.2
Nine months ended Nine months ended
Performance measures 30.09.21 30.09.20
Return on average allocated equity 13.2% 1.6%
Return on average allocated tangible equity 17.9% 2.2%
Average allocated equity (£bn) 13.5 13.7
Average allocated tangible equity (£bn) 9.9 10.2
Cost: income ratio 66% 67%
Loan loss rate (bps) 81
Net interest margin 2.53% 2.63%

10

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Analysis of Barclays UK Nine months ended Nine months ended
30.09.21 30.09.20
Analysis of total income £m £m % Change
Personal Banking 2,900 2,627 10
Barclaycard Consumer UK 898 1,165 (23)
Business Banking 1,039 929 12
Total income 4,837 4,721 2
Analysis of credit impairment releases/(charges)
Personal Banking 20 (312)  
Barclaycard Consumer UK 290 (803)  
Business Banking (4) (182)  
Total credit impairment releases/(charges) 306 (1,297)  
As at 30.09.21 As at 31.12.20 As at 30.09.20
Analysis of loans and advances to customers at amortised cost £bn £bn £bn
Personal Banking 164.6 157.3 155.7
Barclaycard Consumer UK 8.6 9.9 10.7
Business Banking 35.4 38.2 37.5
Total loans and advances to customers at amortised cost 208.6 205.4 203.9
Analysis of customer deposits at amortised cost
Personal Banking 193.3 179.7 173.2
Barclaycard Consumer UK 0.1 0.1
Business Banking 63.5 60.7 58.7
Total customer deposits at amortised cost 256.8 240.5 232.0

11

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Barclays International Nine months ended Nine months ended
30.09.21 30.09.20
Income statement information £m £m % Change
Net interest income 2,308 2,668 (13)
Net trading income 4,904 5,548 (12)
Net fee, commission and other income 4,943 4,219 17
Total income 12,155 12,435 (2)
Credit impairment releases/(charges) 311 (2,989)  
Net operating income 12,466 9,446 32
Operating expenses (6,916) (6,632) (4)
Litigation and conduct (87) (39)  
Total operating expenses (7,003) (6,671) (5)
Other net income 37 19 95
Profit before tax 5,500 2,794 97
Attributable profit 3,961 1,779  
As at 30.09.21 As at 31.12.20 As at 30.09.20
Balance sheet information £bn £bn £bn
Loans and advances at amortised cost 125.9 122.7 128.0
Trading portfolio assets 144.8 127.7 122.3
Derivative financial instrument assets 257.0 301.8 295.9
Financial assets at fair value through the income statement 200.5 170.7 178.2
Cash collateral and settlement balances 115.9 97.5 121.8
Other assets 231.8 221.4 261.7
Total assets 1,075.9 1,041.8 1,107.9
Deposits at amortised cost 253.3 240.5 262.4
Derivative financial instrument liabilities 252.3 300.4 293.3
Loan: deposit ratio 50% 51% 49%
Risk weighted assets 222.7 222.3 224.7
Nine months ended Nine months ended
Performance measures 30.09.21 30.09.20
Return on average allocated equity 16.1% 7.3%
Return on average allocated tangible equity 16.4% 7.5%
Average allocated equity (£bn) 32.9 32.4
Average allocated tangible equity (£bn) 32.2 31.8
Cost: income ratio 58% 54%
Loan loss rate (bps) 300
Net interest margin 3.96% 3.71%
Analysis of Barclays International
Corporate and Investment Bank Nine months ended Nine months ended
30.09.21 30.09.20
Income statement information £m £m % Change
Net interest income 919 974 (6)
Net trading income 4,878 5,578 (13)
Net fee, commission and other income 3,905 3,286 19
Total income 9,702 9,838 (1)
Credit impairment releases/(charges) 400 (1,507)  
Net operating income 10,102 8,331 21
Operating expenses (5,256) (5,086) (3)
Litigation and conduct (4) (6) 33
Total operating expenses (5,260) (5,092) (3)
Other net income 1 4 (75)
Profit before tax 4,843 3,243 49
Attributable profit 3,469 2,141 62
As at 30.09.21 As at 31.12.20 As at 30.09.20
Balance sheet information £bn £bn £bn
Loans and advances at amortised cost 93.8 92.4 96.8
Trading portfolio assets 144.7 127.5 122.2
Derivative financial instrument assets 256.9 301.7 295.9
Financial assets at fair value through the income statement 200.4 170.4 177.9
Cash collateral and settlement balances 115.1 96.7 121.0
Other assets 200.4 194.9 228.9
Total assets 1,011.3 983.6 1,042.7
Deposits at amortised cost 185.8 175.2 195.6
Derivative financial instrument liabilities 252.2 300.3 293.2
Risk weighted assets 192.5 192.2 193.3
Nine months ended Nine months ended
Performance measures 30.09.21 30.09.20
Return on average allocated equity 16.4% 10.5%
Return on average allocated tangible equity 16.4% 10.5%
Average allocated equity (£bn) 28.2 27.2
Average allocated tangible equity (£bn) 28.2 27.2
Cost: income ratio 54% 52%
Analysis of total income £m £m % Change
FICC 2,902 4,326 (33)
Equities 2,466 1,929 28
Global Markets 5,368 6,255 (14)
Advisory 634 329 93
Equity capital markets 655 369 78
Debt capital markets 1,414 1,279 11
Investment Banking fees 2,703 1,977 37
Corporate lending 412 404 2
Transaction banking 1,219 1,202 1
Corporate 1,631 1,606 2
Total income 9,702 9,838 (1)

12

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Analysis of Barclays International
Consumer, Cards and Payments Nine months ended Nine months ended
30.09.21 30.09.20
Income statement information £m £m % Change
Net interest income 1,390 1,694 (18)
Net fee, commission, trading and other income 1,063 903 18
Total income 2,453 2,597 (6)
Credit impairment charges (89) (1,482) 94
Net operating income 2,364 1,115  
Operating expenses (1,660) (1,546) (7)
Litigation and conduct (83) (33)  
Total operating expenses (1,743) (1,579) (10)
Other net income 36 15  
Profit/(loss) before tax 657 (449)  
Attributable profit/(loss) 492 (362)  
As at 30.09.21 As at 31.12.20 As at 30.09.20
Balance sheet information £bn £bn £bn
Loans and advances at amortised cost 32.1 30.3 31.2
Total assets 64.6 58.2 65.2
Deposits at amortised cost 67.5 65.3 66.8
Risk weighted assets 30.2 30.1 31.4
Nine months ended Nine months ended
Performance measures 30.09.21 30.09.20
Return on average allocated equity 13.9% (9.3)%
Return on average allocated tangible equity 16.2% (10.6)%
Average allocated equity (£bn) 4.7 5.2
Average allocated tangible equity (£bn) 4.0 4.6
Cost: income ratio 71% 61%
Loan loss rate (bps) 35 577
Analysis of total income £m £m % Change
International Cards and Consumer Bank 1,540 1,857 (17)
Private Bank 581 533 9
Unified Payments 332 207 60
Total income 2,453 2,597 (6)

13

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Head Office Nine months ended Nine months ended
30.09.21 30.09.20
Income statement information £m £m % Change
Net interest income (354) (307) (15)
Net fee, commission and other income 142 (24)  
Total income (212) (331) 36
Credit impairment releases/(charges) 5 (60)  
Net operating income (207) (391) 47
Operating expenses (507) (186)  
Litigation and conduct (12) (31) 61
Total operating expenses (519) (217)  
Other net income/(expenses) 209 (31)  
Loss before tax (517) (639) 19
Attributable loss (39) (638) 94
As at 30.09.21 As at 31.12.20 As at 30.09.20
Balance sheet information £bn £bn £bn
Total assets 18.5 18.6 19.3
Risk weighted assets 11.5 10.2 9.8
Nine months ended Nine months ended
Performance measures 30.09.21 30.09.20
Average allocated equity (£bn) 8.7 10.5
Average allocated tangible equity (£bn) 5.0 6.5

14

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Barclays Group
Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Income statement information £m £m £m £m £m £m £m £m
Net interest income 1,940 2,052 1,851 1,845 2,055 1,892 2,331 2,344
Net fee, commission and other income 3,525 3,363 4,049 3,096 3,149 3,446 3,952 2,957
Total income 5,465 5,415 5,900 4,941 5,204 5,338 6,283 5,301
Credit impairment (charges)/releases (120) 797 (55) (492) (608) (1,623) (2,115) (523)
Net operating income 5,345 6,212 5,845 4,449 4,596 3,715 4,168 4,778
Operating costs (3,446) (3,587) (3,545) (3,480) (3,391) (3,310) (3,253) (3,308)
UK bank levy (299) (226)
Litigation and conduct (32) (66) (33) (47) (76) (20) (10) (167)
Total operating expenses (3,478) (3,653) (3,578) (3,826) (3,467) (3,330) (3,263) (3,701)
Other net income/(expenses) 94 21 132 23 18 (26) 8 20
Profit before tax 1,961 2,580 2,399 646 1,147 359 913 1,097
Tax charge (317) (263) (496) (163) (328) (42) (71) (189)
Profit after tax 1,644 2,317 1,903 483 819 317 842 908
Non-controlling interests (1) (15) (4) (37) (4) (21) (16) (42)
Other equity instrument holders (197) (194) (195) (226) (204) (206) (221) (185)
Attributable profit 1,446 2,108 1,704 220 611 90 605 681
Performance measures
Return on average shareholders’ equity 10.2% 15.5% 12.5% 1.6% 4.3% 0.6% 4.4% 5.0%
Return on average tangible shareholders’ equity 11.9% 18.1% 14.7% 1.8% 5.1% 0.7% 5.1% 5.9%
Average shareholders’ equity 56.6 54.4 54.4 55.7 56.4 58.4 55.2 54.5
Average tangible shareholders’ equity (£bn) 48.4 46.5 46.5 47.6 48.3 50.2 47.0 46.4
Cost: income ratio 64% 67% 61% 77% 67% 62% 52% 70%
Loan loss rate (bps) 13 6 56 69 179 223 60
Basic earnings per share 8.5p 12.3p 9.9p 1.3p 3.5p 0.5p 3.5p 3.9p
Basic weighted average number of shares (m) 17,062 17,140 17,293 17,300 17,298 17,294 17,278 17,200
Period end number of shares (m) 16,851 16,998 17,223 17,359 17,353 17,345 17,332 17,322

Balance sheet and capital management1

£bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 353.0 348.5 345.8 342.6 344.4 354.9 374.1 339.1
Loans and advances at amortised cost impairment coverage ratio 1.7% 1.8% 2.2% 2.4% 2.5% 2.5% 2.1% 1.8%
Total assets 1,406.5 1,376.3 1,379.7 1,349.5 1,421.7 1,385.1 1,444.3 1,140.2
Deposits at amortised cost 510.2 500.9 498.8 481.0 494.6 466.9 470.7 415.8
Net asset value per share 335p 329p 312p 315p 322p 331p 332p 309p
Tangible net asset value per share 287p 281p 267p 269p 275p 284p 284p 262p
Common equity tier 1 ratio 15.4% 15.1% 14.6% 15.1% 14.6% 14.2% 13.1% 13.8%
Common equity tier 1 capital 47.3 46.2 45.9 46.3 45.5 45.4 42.5 40.8
Risk weighted assets 307.5 306.4 313.4 306.2 310.7 319.0 325.6 295.1
Average UK leverage ratio 4.9% 4.8% 4.9% 5.0% 5.1% 4.7% 4.5% 4.5%
Average UK leverage exposure 1,199.8 1,192.0 1,174.9 1,146.9 1,111.1 1,148.7 1,176.2 1,142.8
UK leverage ratio 5.1% 5.0% 5.0% 5.3% 5.2% 5.2% 4.5% 5.1%
UK leverage exposure 1,161.0 1,153.6 1,145.4 1,090.9 1,095.1 1,071.1 1,178.7 1,007.7
Funding and liquidity
Group liquidity pool (£bn) 293 291 290 266 327 298 237 211
Liquidity coverage ratio 161% 162% 161% 162% 181% 186% 155% 160%
Loan: deposit ratio 69% 70% 69% 71% 70% 76% 79% 82%

1Refer to pages 30 to 36 for further information on how capital, RWAs and leverage are calculated.

15

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Quarterly Results Summary

Barclays UK
Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Income statement information £m £m £m £m £m £m £m £m
Net interest income 1,303 1,305 1,281 1,317 1,280 1,225 1,412 1,478
Net fee, commission and other income 335 318 295 309 270 242 292 481
Total income 1,638 1,623 1,576 1,626 1,550 1,467 1,704 1,959
Credit impairment (charges)/releases (137) 520 (77) (170) (233) (583) (481) (190)
Net operating income 1,501 2,143 1,499 1,456 1,317 884 1,223 1,769
Operating costs (1,041) (1,078) (1,036) (1,134) (1,095) (1,018) (1,023) (1,023)
UK bank levy (50) (41)
Litigation and conduct (10) (19) (3) 4 (25) (6) (5) (58)
Total operating expenses (1,051) (1,097) (1,039) (1,180) (1,120) (1,024) (1,028) (1,122)
Other net income/(expenses) 1 6 (1) 13
Profit/(loss) before tax 451 1,046 460 282 196 (127) 195 647
Attributable profit/(loss) 317 721 298 160 113 (123) 175 438
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances to customers at amortised cost 208.6 207.8 205.7 205.4 203.9 202.0 195.7 193.7
Total assets 312.1 311.2 309.1 289.1 294.5 287.6 267.5 257.8
Customer deposits at amortised cost 256.8 255.5 247.5 240.5 232.0 225.7 207.5 205.5
Loan: deposit ratio 86% 87% 88% 89% 91% 92% 96% 96%
Risk weighted assets 73.2 72.2 72.7 73.7 76.2 77.9 77.7 74.9
Performance measures
Return on average allocated equity 9.4% 21.4% 8.8% 4.8% 3.3% (3.6)% 5.1% 12.7%
Return on average allocated tangible equity 12.7% 29.1% 12.0% 6.5% 4.5% (4.8)% 6.9% 17.0%
Average allocated equity (£bn) 13.6 13.5 13.5 13.4 13.7 13.9 13.7 13.8
Average allocated tangible equity (£bn) 10.0 9.9 9.9 9.8 10.1 10.3 10.1 10.3
Cost: income ratio 64% 68% 66% 73% 72% 70% 60% 57%
Loan loss rate (bps) 24 14 31 43 111 96 38
Net interest margin 2.49% 2.55% 2.54% 2.56% 2.51% 2.48% 2.91% 3.03%

16

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Quarterly Results by Business
Analysis of Barclays UK Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Analysis of total income £m £m £m £m £m £m £m £m
Personal Banking 990 987 923 895 833 826 968 1,064
Barclaycard Consumer UK 293 290 315 354 362 367 436 533
Business Banking 355 346 338 377 355 274 300 362
Total income 1,638 1,623 1,576 1,626 1,550 1,467 1,704 1,959
Analysis of credit impairment (charges)/releases
Personal Banking (30) 72 (22) (68) (48) (130) (134) (71)
Barclaycard Consumer UK (108) 434 (36) (78) (106) (396) (301) (108)
Business Banking 1 14 (19) (24) (79) (57) (46) (11)
Total credit impairment (charges)/releases (137) 520 (77) (170) (233) (583) (481) (190)
Analysis of loans and advances to customers at amortised cost £bn £bn £bn £bn £bn £bn £bn £bn
Personal Banking 164.6 162.4 160.4 157.3 155.7 154.9 153.4 151.9
Barclaycard Consumer UK 8.6 8.8 8.7 9.9 10.7 11.5 13.6 14.7
Business Banking 35.4 36.6 36.6 38.2 37.5 35.6 28.7 27.1
Total loans and advances to customers at amortised cost 208.6 207.8 205.7 205.4 203.9 202.0 195.7 193.7
Analysis of customer deposits at amortised cost
Personal Banking 193.3 191.0 186.0 179.7 173.2 169.6 161.4 159.2
Barclaycard Consumer UK 0.1 0.1 0.1 0.1 0.1
Business Banking 63.5 64.4 61.4 60.7 58.7 56.0 46.1 46.3
Total customer deposits at amortised cost 256.8 255.5 247.5 240.5 232.0 225.7 207.5 205.5

17

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Quarterly Results by Business
Barclays International
Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Income statement information £m £m £m £m £m £m £m £m
Net interest income 749 811 748 614 823 847 998 965
Net trading income 1,515 1,455 1,934 1,372 1,528 1,660 2,360 929
Net fee, commission and other income 1,673 1,553 1,717 1,500 1,430 1,503 1,286 1,558
Total income 3,937 3,819 4,399 3,486 3,781 4,010 4,644 3,452
Credit impairment releases/(charges) 18 271 22 (291) (370) (1,010) (1,609) (329)
Net operating income 3,955 4,090 4,421 3,195 3,411 3,000 3,035 3,123
Operating costs (2,310) (2,168) (2,438) (2,133) (2,227) (2,186) (2,219) (2,240)
UK bank levy (240) (174)
Litigation and conduct (3) (63) (21) (9) (28) (11) (86)
Total operating expenses (2,313) (2,231) (2,459) (2,382) (2,255) (2,197) (2,219) (2,500)
Other net income 15 13 9 9 9 4 6 17
Profit before tax 1,657 1,872 1,971 822 1,165 807 822 640
Attributable profit 1,263 1,267 1,431 441 782 468 529 397
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 125.9 121.9 123.5 122.7 128.0 138.1 167.0 132.8
Trading portfolio assets 144.8 147.1 131.1 127.7 122.3 109.5 101.6 113.3
Derivative financial instrument assets 257.0 255.4 269.4 301.8 295.9 306.8 341.5 228.9
Financial assets at fair value through the income statement 200.5 190.4 197.5 170.7 178.2 154.3 188.4 128.4
Cash collateral and settlement balances 115.9 108.5 109.7 97.5 121.8 130.8 153.2 79.4
Other assets 231.8 223.5 221.7 221.4 261.7 236.3 201.5 178.6
Total assets 1,075.9 1,046.8 1,052.9 1,041.8 1,107.9 1,075.8 1,153.2 861.4
Deposits at amortised cost 253.3 245.4 251.2 240.5 262.4 241.2 263.3 210.0
Derivative financial instrument liabilities 252.3 246.9 260.2 300.4 293.3 307.6 338.8 228.9
Loan: deposit ratio 50% 50% 49% 51% 49% 57% 63% 63%
Risk weighted assets 222.7 223.2 230.0 222.3 224.7 231.2 237.9 209.2
Performance measures
Return on average allocated equity 15.4% 15.4% 17.4% 5.7% 10.0% 5.5% 6.6% 5.0%
Return on average allocated tangible equity 15.9% 15.6% 17.7% 5.8% 10.2% 5.6% 6.8% 5.1%
Average allocated equity (£bn) 32.7 33.0 32.8 31.1 31.2 34.2 31.9 31.9
Average allocated tangible equity (£bn) 31.8 32.4 32.3 30.5 30.6 33.5 31.2 30.9
Cost: income ratio 59% 58% 56% 68% 60% 55% 48% 72%
Loan loss rate (bps) (7) 90 112 284 377 96
Net interest margin 4.02% 3.96% 3.92% 3.41% 3.79% 3.43% 3.93% 4.29%

18

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Quarterly Results by Business
Analysis of Barclays International
Corporate and Investment Bank Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Income statement information £m £m £m £m £m £m £m £m
Net interest income 279 370 270 110 305 334 335 248
Net trading income 1,467 1,494 1,917 1,397 1,535 1,812 2,231 951
Net fee, commission and other income 1,383 1,115 1,407 1,131 1,065 1,170 1,051 1,115
Total income 3,129 2,979 3,594 2,638 2,905 3,316 3,617 2,314
Credit impairment releases/(charges) 128 229 43 (52) (187) (596) (724) (30)
Net operating income 3,257 3,208 3,637 2,586 2,718 2,720 2,893 2,284
Operating costs (1,747) (1,623) (1,886) (1,603) (1,716) (1,680) (1,690) (1,691)
UK bank levy (226) (156)
Litigation and conduct (2) (1) (1) 2 (3) (3) (79)
Total operating expenses (1,749) (1,624) (1,887) (1,827) (1,719) (1,683) (1,690) (1,926)
Other net income 1 2 1 3 1
Profit before tax 1,508 1,584 1,751 761 1,000 1,040 1,203 359
Attributable profit 1,157 1,049 1,263 413 627 694 820 193
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 93.8 91.0 94.3 92.4 96.8 104.9 128.2 92.0
Trading portfolio assets 144.7 147.0 130.9 127.5 122.2 109.3 101.5 113.3
Derivative financial instruments assets 256.9 255.3 269.4 301.7 295.9 306.7 341.4 228.8
Financial assets at fair value through the income statement 200.4 190.3 197.3 170.4 177.9 153.7 187.8 127.7
Cash collateral and settlement balances 115.1 107.7 108.8 96.7 121.0 129.7 152.2 78.5
Other assets 200.4 192.5 190.8 194.9 228.9 205.5 171.4 155.3
Total assets 1,011.3 983.8 991.5 983.6 1,042.7 1,009.8 1,082.5 795.6
Deposits at amortised cost 185.8 178.2 185.2 175.2 195.6 173.9 198.4 146.2
Derivative financial instrument liabilities 252.2 246.8 260.2 300.3 293.2 307.6 338.7 228.9
Risk weighted assets 192.5 194.3 201.3 192.2 193.3 198.3 201.7 171.5
Performance measures
Return on average allocated equity 16.6% 14.8% 17.9% 6.3% 9.5% 9.5% 12.5% 3.0%
Return on average allocated tangible equity 16.6% 14.8% 17.9% 6.3% 9.5% 9.6% 12.5% 3.0%
Average allocated equity (£bn) 27.8 28.4 28.2 26.3 26.4 29.1 26.2 25.9
Average allocated tangible equity (£bn) 27.8 28.4 28.2 26.3 26.4 29.0 26.2 25.8
Cost: income ratio 56% 55% 53% 69% 59% 51% 47% 83%
Analysis of total income £m £m £m £m £m £m £m £m
FICC 803 895 1,204 812 1,000 1,468 1,858 726
Equities 757 777 932 542 691 674 564 409
Global Markets 1,560 1,672 2,136 1,354 1,691 2,142 2,422 1,135
Advisory 253 218 163 232 90 84 155 202
Equity capital markets 186 226 243 104 122 185 62 56
Debt capital markets 532 429 453 418 398 463 418 322
Investment Banking fees 971 873 859 754 610 732 635 580
Corporate lending 168 38 206 186 232 61 111 202
Transaction banking 430 396 393 344 372 381 449 397
Corporate 598 434 599 530 604 442 560 599
Total income 3,129 2,979 3,594 2,638 2,905 3,316 3,617 2,314

19

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Quarterly Results by Business
Analysis of Barclays International
Consumer, Cards and Payments Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Income statement information £m £m £m £m £m £m £m £m
Net interest income 471 441 478 504 518 513 663 717
Net fee, commission, trading and other income 337 399 327 344 358 181 364 421
Total income 808 840 805 848 876 694 1,027 1,138
Credit impairment (charges)/releases (110) 42 (21) (239) (183) (414) (885) (299)
Net operating income 698 882 784 609 693 280 142 839
Operating costs (563) (545) (552) (530) (511) (506) (529) (549)
UK bank levy (14) (18)
Litigation and conduct (1) (62) (20) (11) (25) (8) (7)
Total operating expenses (564) (607) (572) (555) (536) (514) (529) (574)
Other net income 15 13 8 7 8 1 6 16
Profit/(loss) before tax 149 288 220 61 165 (233) (381) 281
Attributable profit/(loss) 106 218 168 28 155 (226) (291) 204
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Loans and advances at amortised cost 32.1 30.9 29.2 30.3 31.2 33.2 38.8 40.8
Total assets 64.6 63.0 61.4 58.2 65.2 66.0 70.7 65.8
Deposits at amortised cost 67.5 67.2 66.0 65.3 66.8 67.3 64.9 63.8
Risk weighted assets 30.2 29.0 28.8 30.1 31.4 32.9 36.2 37.7
Performance measures
Return on average allocated equity 8.6% 19.0% 14.6% 2.4% 12.9% (17.7)% (20.7)% 13.6%
Return on average allocated tangible equity 10.5% 21.8% 16.5% 2.7% 14.7% (20.2)% (23.5)% 15.9%
Average allocated equity (£bn) 4.9 4.6 4.6 4.8 4.8 5.1 5.7 6.0
Average allocated tangible equity (£bn) 4.0 4.0 4.1 4.2 4.2 4.5 5.0 5.1
Cost: income ratio 70% 72% 71% 65% 61% 74% 52% 50%
Loan loss rate (bps) 127 27 286 211 455 846 273

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Quarterly Results by Business
Head Office
Q321 Q221 Q121 Q420 Q320 Q220 Q120 Q419
Income statement information £m £m £m £m £m £m £m £m
Net interest income (112) (64) (178) (86) (48) (180) (79) (99)
Net fee, commission and other income 2 37 103 (85) (79) 41 14 (11)
Total income (110) (27) (75) (171) (127) (139) (65) (110)
Credit impairment (charges)/releases (1) 6 (31) (5) (30) (25) (4)
Net operating expenses (111) (21) (75) (202) (132) (169) (90) (114)
Operating costs (95) (341) (71) (213) (69) (106) (11) (45)
UK bank levy (9) (11)
Litigation and conduct (19) 16 (9) (42) (23) (3) (5) (23)
Total operating expenses (114) (325) (80) (264) (92) (109) (16) (79)
Other net income/(expenses) 78 8 123 8 10 (43) 2 3
Loss before tax (147) (338) (32) (458) (214) (321) (104) (190)
Attributable (loss)/profit (134) 120 (25) (381) (284) (255) (99) (154)
Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn
Total assets 18.5 18.3 17.7 18.6 19.3 21.7 23.6 21.0
Risk weighted assets 11.5 11.1 10.7 10.2 9.8 9.9 10.0 11.0
Performance measures
Average allocated equity (£bn) 10.3 7.9 8.1 11.2 11.5 10.3 9.6 8.8
Average allocated tangible equity (£bn) 6.6 4.2 4.3 7.3 7.6 6.4 5.6 5.2

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Quarterly Results by Business

Margins and balances

Nine months ended 30.09.21 Nine months ended 30.09.20
Net interest income Average customer assets Net interest margin Net interest income Average customer assets Net interest margin
£m £m % £m £m %
Barclays UK 3,889 205,889 2.53  3,917 199,048 2.63

Barclays International1,2

2,301 77,628 3.96  2,686 96,799 3.71
Total Barclays UK and Barclays International 6,190 283,517 2.92  6,603 295,847 2.98

Other3

(347) (325)
Total Barclays Group 5,843 6,278

1Barclays International margins include IEL balances within the investment banking business.

2Barclays amended the presentation of the premium paid for purchased financial guarantees which are embedded in notes it issues directly to the market in Q420 from net investment income to interest expense within net interest income. Had the equivalent Q320 YTD interest expense been recognised in net interest income, the Barclays International and Total Barclays UK and Barclays International NIMs would have been 3.60% and 2.95% respectively.

3Other includes Head Office and non-lending related investment banking businesses not included in Barclays International margins.

The Group’s combined product and equity structural hedge notional as at 30 September 2021 was £224bn (September 2020: £181bn), with an average duration of close to 3 years (2020: average duration 2.5 to 3 years). Group net interest income includes gross structural hedge contributions of £1,042m (Q320 YTD: £1,273m) and net structural hedge contributions of £889m (Q320 YTD: £917m). Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on the basket of swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.

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Quarterly analysis for Barclays UK and Barclays International

Net interest income Average customer assets Net interest margin
Three months ended 30.09.21 £m £m %
Barclays UK 1,303  207,692  2.49

Barclays International1

783  77,364  4.02
Total Barclays UK and Barclays International 2,086  285,056  2.90
Three months ended 30.06.21
Barclays UK 1,305  205,168  2.55

Barclays International1

763  77,330  3.96
Total Barclays UK and Barclays International 2,068  282,498  2.94
Three months ended 31.03.21
Barclays UK 1,281  204,663  2.54

Barclays International1

755  78,230  3.92
Total Barclays UK and Barclays International 2,036  282,893  2.92
Three months ended 31.12.20
Barclays UK 1,317  204,315  2.56

Barclays International1,2

696  81,312  3.41
Total Barclays UK and Barclays International 2,013  285,627  2.80
Three months ended 30.09.20
Barclays UK 1,280  203,089  2.51

Barclays International1,2

838  88,032  3.79
Total Barclays UK and Barclays International 2,118  291,121  2.89

1Barclays International margins include IEL balances within the investment banking business.

2The reclassification of expense of the premium paid for purchased financial guarantees from net investment income to net interest income was recognised in full in Q420 and resulted in a 0.48% reduction on the Q420 Barclays International NIM and 0.14% reduction on the Q420 Total Barclays UK and Barclays International NIM. Had the equivalent impact been reflected in the respective quarters, the Barclays International NIM would have been 3.68% in Q320 and 3.77% in Q420. Total Barclays UK and Barclays International NIMs would have been 2.86% in Q320 and 2.91% in Q420 respectively.

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Loans and advances at amortised cost by stage

The table below presents an analysis of loans and advances at amortised cost by gross exposure, impairment allowance, impairment charge and coverage ratio by stage allocation and business segment as at 30 September 2021. Also included are off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio by stage allocation as at 30 September 2021.

Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to the drawn exposure to the extent that the allowance does not exceed the exposure, as Expected Credit Losses (ECL) is not reported separately. Any excess is reported on the liability side of the balance sheet as a provision. For wholesale portfolios, the impairment allowance on the undrawn exposure is reported on the liability side of the balance sheet as a provision.

Gross exposure Impairment allowance Net exposure
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
As at 30.09.21 £m £m £m £m £m £m £m £m £m
Barclays UK 161,520 22,277 2,666 186,463 304 1,163 908 2,375 184,088
Barclays International 23,592 4,121 1,647 29,360 490 966 858 2,314 27,046
Head Office 3,953 431 742 5,126 3 37 356 396 4,730
Total Barclays Group retail 189,065 26,829 5,055 220,949 797 2,166 2,122 5,085 215,864
Barclays UK 34,810 1,986 1,067 37,863 55 30 25 110 37,753
Barclays International 86,196 12,372 1,273 99,841 209 260 515 984 98,857
Head Office 518 3 33 554 31 31 523

Total Barclays Group wholesale1

121,524 14,361 2,373 138,258 264 290 571 1,125 137,133
Total loans and advances at amortised cost 310,589 41,190 7,428 359,207 1,061 2,456 2,693 6,210 352,997

Off-balance sheet loan commitments and financial guarantee contracts2

306,313 41,766 750 348,829 225 298 24 547 348,282

Total3

616,902 82,956 8,178 708,036 1,286 2,754 2,717 6,757 701,279
As at 30.09.21 Nine months ended 30.09.21
Coverage ratio Loan impairment (release)/charge and loan loss rate
Stage 1 Stage 2 Stage 3 Total Loan impairment release Loan loss rate
% % % % £m bps
Barclays UK 0.2  5.2  34.1  1.3  34 2
Barclays International 2.1  23.4  52.1  7.9  88 40
Head Office 0.1  8.6  48.0  7.7  (5)
Total Barclays Group retail 0.4  8.1  42.0  2.3  117
Barclays UK 0.2  1.5  2.3  0.3  (81)
Barclays International 0.2  2.1  40.5  1.0  (125)
Head Office —  —  93.9  5.6 

Total Barclays Group wholesale1

0.2  2.0  24.1  0.8  (206)
Total loans and advances at amortised cost 0.3  6.0  36.3  1.7  (89)

Off-balance sheet loan commitments and financial guarantee contracts2

0.1  0.7  3.2  0.2  (513)

Other financial assets subject to impairment3

(20)
Total 0.2  3.3  33.2  1.0  (622)

1Includes Wealth and Private Banking exposures measured on an individual basis, and excludes Business Banking exposures that are managed on a collective basis. The net impact is a difference in total exposure of £7,229m of balances reported as wholesale loans on page 27 in the Loans and advances at amortised cost by product disclosure.

2Excludes loan commitments and financial guarantees of £20.8bn carried at fair value.

3Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £190.8bn and impairment allowance of £112m. This comprises £5m ECL on £190.6bn Stage 1 assets, Nil on £68m Stage 2 fair value through other comprehensive income assets, cash collateral and settlement balances and £107m on £113m Stage 3 other assets.

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