6-K 1 a1007e.htm 3RD QUARTER RESULTS a1007e
 
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
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
October 26, 2022
 
Barclays PLC
(Name of Registrant)
 
1 Churchill Place
London E14 5HP
England
(Address of Principal Executive Office)
 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F
 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes No x
 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
 
This Report on Form 6-K is filed by Barclays PLC.
 
This Report comprises:
 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.
 
 
EXHIBIT INDEX
 
 
 
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
 
 
 
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 authorized.
 
 
 
BARCLAYS PLC
 
(Registrant)
 
 
 
Date: October 26, 2022
 
 
 
By: /s/ Garth Wright
--------------------------------
 
Garth Wright
 
Assistant Secretary
 
 
 
 
 
 
Barclays PLC
 
Q3 2022 Results Announcement
 
 
30 September 2022
 
 
 
Notes
 
The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2022 to the corresponding nine months of 2021 and the three months ended 30 September 2022 to the corresponding three months in 2021 and balance sheet analysis as at 30 September 2022 with comparatives relating to 31 December 2021 and 30 September 2021. The historical financial information used for the purposes of such analysis has been restated. Please refer to Supplementary Information contained herein for further information. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.
 
There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.
 
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, which can be accessed at home.barclays/investor-relations.
 
The information in this announcement, which was approved by the Board of Directors on 25 October 2022, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2021, 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.
 
These results will be furnished on Form 6-K with the US Securities and Exchange Commission (SEC) as soon as practicable following their publication. Once furnished with the SEC, a copy of the Form 6-K will be available from the SEC’s website at www.sec.gov.
 
Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal 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 53 to 59 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.
 
  
Forward-looking statements
 
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by 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 levels, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions (including dividend pay-out ratios and expected payment strategies), projected levels of growth in banking and financial markets, projected expenditures, costs or savings, any commitments and targets (including, without limitation, environmental, social and governance (ESG) commitments and targets), business strategy, plans and objectives for future operations, group structure, IFRS impacts and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulation and the interpretation thereof, the development of IFRS and other accounting standards, including evolving practices with regard to the interpretation and application of accounting standards, emerging and developing ESG reporting standards, the outcome of current and future legal proceedings and regulatory investigations and any related impact on 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, environmental, social and geopolitical risks and incidents or similar events beyond the Group’s control, 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, including inflation; volatility in credit and capital markets; market-related risks such as changes in interest rates and foreign exchange rates; changes in valuation of credit market exposures; changes in valuation of issued securities; changes in credit ratings of any entity within the Group or any securities issued by such entities; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the Russia-Ukraine war on European and global macroeconomic conditions, political stability and financial markets; 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; the Group’s ability to access funding; and the success of 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 or ability to meet commitments and targets 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 financial year ended 31 December 2021, as amended, and Interim Results Announcement for the six months ended 30 June 2022 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.
 
 
 
Performance Highlights
 
 
 
Strong Q3 performance with profit before tax of £2.0bn and return on tangible equity (RoTE) of 12.5%, contributing to Q3 year to date profit before tax of £5.7bn and RoTE of 10.9%
 
 
 
C. S. Venkatakrishnan, Group Chief Executive, commented
“We delivered another quarter of strong returns, and achieved income growth in each of our three businesses1, with a 17% increase in Group income to £6.4bn1. Our performance in FICC was particularly strong and we continued to build momentum in our consumer businesses in the UK and US.
We are ready to provide support for customers and clients facing an uncertain economic environment and higher cost pressures. Whether helping retail customers to manage their finances or corporate clients navigate markets volatility, we will continue to be focused on meeting their needs.”
 
 
Key financial metrics:
 
 
 
 
Income
Cost: income ratio
Profit before tax
Attributable profit
RoTE
EPS
CET1
ratio
TNAV per share
Q322
£6.0bn
60%
£2.0bn
£1.5bn
12.5%
9.4p
13.8%
286p
Q322 YTD
£19.2bn
66%
£5.7bn
£4.0bn
10.9%
24.2p
 
 
Q322 Performance highlights2:
 
 
 
●
Attributable profit was £1.5bn (Q321: £1.4bn) and RoTE was 12.5% (Q321: 11.4%)
●
Excluding the impact of the Over-issuance of Securities in the US (Over-issuance of Securities)3
 
–
Group income was £6.4bn, up 17% year-on-year, with continued momentum in both Consumer, Cards and Payments (CC&P) and Barclays UK. Within Corporate and Investment Bank (CIB), strong client activity in Markets more than offset the impact of a reduced fee pool in Investment Banking. Group income benefited from the appreciation of USD against GBP
 
–
Group operating expenses were £4.1bn, up 18% year-on-year. Within this, operating costs (which exclude all litigation and conduct) were £3.9bn, up 14% year-on-year driven by the appreciation of USD against GBP, impact of inflation and investment in the business
● 
On a statutory basis, including the impact of the Over-issuance of Securities:
 
–
Group income was £6.0bn, up 9% year-on-year, including an income reduction of £0.5bn from hedging arrangements in relation to the Over-issuance of Securities
 
–
Total Group operating expenses were £3.6bn (Q321: £3.6bn), including a provision reduction of £0.5bn in relation to the Over-issuance of Securities (Q321: £0.1bn charge)
 
–
The total impact of the Over-issuance of Securities, net of tax, was £29m positive in Q322
●
Credit impairment charges were £0.4bn (Q321: £0.1bn). Delinquencies remained below historical levels and coverage levels have been broadly maintained at the portfolio level in light of an uncertain macroeconomic backdrop. The deteriorating macroeconomic forecast resulted in an increased charge, partially offset by consuming economic uncertainty post-model adjustments (PMAs), which were established in prior periods in anticipation of the future deterioration, which is now captured within the modelled output
●
Capital: Common Equity Tier 1 (CET1) ratio of 13.8% (December 2021: 15.1% and June 2022: 13.6%) and tangible net asset value (TNAV) per share of 286p (December 2021: 291p and June 2022: 297p)
●
Capital distributions: Barclays paid a half-year dividend of 2.25p per share on 16 September 2022, and completed a share buyback of £0.5bn on 3 October 2022, bringing the total capital return equivalent to c.5.25p per share as announced at H122 results
 
 
1
Excluding the Q322 income reduction of £0.5bn from hedging arrangements related to the Over-issuance of Securities, CIB income was up 5% to £3.3bn and Group income was up 17% to £6.4bn in Q322
2
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
3
Denotes the Over-issuance of Securities under Barclays Bank PLC’s US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019.
 
 
Outlook:
 
 
 
●
Returns: targeting a RoTE of greater than 10% in 2022
●
Income: diversified income streams position the Group well for the current economic and market environment including rising interest rates
●
Costs: FY22 total operating expenses are expected to be in line with the outlook given at H122 results of around £16.7bn1, with a reduction in litigation and conduct charges of around £0.3bn broadly offset by headwinds from FX and other movements
●
Impairment: expect the credit impairment charges at a portfolio level to trend towards a through-the-cycle loan loss rate, acknowledging the risk of further deterioration in the economic outlook
●
Capital: targeting a CET1 ratio within the range of 13-14%
●
Capital returns: capital distribution policy incorporates a progressive ordinary dividend, supplemented with 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
 
 
1
Group cost outlook is based on an average USD/GBP FX rate of 1.12 in Q422 and subject to foreign currency movements.
 
 
Barclays Group results
Nine months ended
 
Three months ended
30.09.22
Restated1
30.09.21
 
 
30.09.22
Restated1
30.09.21
 
 
£m
£m
% Change
 
£m
£m
% Change
Barclays UK
5,289
4,837
9
 
1,916
1,638
17
Corporate and Investment Bank
10,792
9,702
11
 
2,821
3,129
(10)
Consumer, Cards and Payments
3,213
2,453
31
 
1,244
808
54
Barclays International
14,005
12,155
15
 
4,065
3,937
3
Head Office
(139)
(212)
34
 
(30)
(110)
73
Total income
19,155
16,780
14
 
5,951
5,465
9
Credit impairment (charges)/releases
(722)
622
 
 
(381)
(120)
 
Net operating income
18,433
17,402
6
 
5,570
5,345
4
Operating costs
(11,209)
(10,578)
(6)
 
(3,939)
(3,446)
(14)
Litigation and conduct
(1,518)
(305)
 
 
339
(129)
 
Total operating expenses
(12,727)
(10,883)
(17)
 
(3,600)
(3,575)
(1)
Other net (expenses)/ income
(4)
247
 
 
(1)
94
 
Profit before tax
5,702
6,766
(16)
 
1,969
1,864
6
Tax charge
(1,072)
(1,034)
(4)
 
(249)
(292)
15
Profit after tax
4,630
5,732
(19)
 
1,720
1,572
9
Non-controlling interests
(23)
(20)
(15)
 
(2)
(1)
 
Other equity instrument holders
(620)
(586)
(6)
 
(206)
(197)
(5)
Attributable profit
3,987
5,126
(22)
 
1,512
1,374
10
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
10.9%
14.5%
 
 
12.5%
11.4%
 
Average tangible shareholders' equity (£bn)
48.8
47.1
 
 
48.6
48.3
 
Cost: income ratio
66%
65%
 
 
60%
65%
 
Loan loss rate (bps)
23
(23)
 
 
36
13
 
Basic earnings per share
24.2p
30.0p
 
 
9.4p
8.0p
 
Basic weighted average number of shares (m)
16,503
17,062
(3)
 
16,148
17,062
(5)
Period end number of shares (m)
15,888
16,851
(6)
 
15,888
16,851
(6)
 
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
As at 30.06.22
Restated1
 As at 31.12.21
Restated1
 As at 30.09.21
Balance sheet and capital management2
£bn
£bn
£bn
£bn
Loans and advances at amortised cost
413.7
395.8
361.5
353.0
Loans and advances at amortised cost impairment coverage ratio
1.4%
1.4%
1.6%
1.7%
Total assets
1,726.9
1,589.2
1,384.3
1,406.5
Deposits at amortised cost
574.4
568.7
519.4
510.2
Tangible net asset value per share
286p
297p
291p
286p
Common equity tier 1 ratio
13.8%
13.6%
15.1%
15.3%
Common equity tier 1 capital
48.6
46.7
47.3
47.2
Risk weighted assets
350.8
344.5
314.1
307.7
UK leverage ratio
5.0%
5.1%
5.2%
5.1%
UK leverage exposure
1,232.1
1,151.2
1,137.9
1,162.7
Average UK leverage ratio
4.8%
4.7%
4.9%
4.9%
Average UK leverage exposure
1,259.6
1,233.5
1,229.0
1,201.1
 
 
 
 
 
Funding and liquidity
 
 
 
 
Group liquidity pool (£bn)
326
343
291
293
Liquidity coverage ratio
151%
156%
168%
161%
Loan: deposit ratio
72%
70%
70%
69%
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
2
Refer to pages 39 to 45 for further information on how capital, Risk Weighted Assets (RWAs) and leverage are calculated.
 
 
Reconciliation of financial results excluding the impact of the Over-issuance of Securities
 
 
 
 
Nine months ended 30.09.22
 
Restated1
Nine months ended 30.09.21
 
 
 
Statutory
Impact of the Over-issuance of Securities
Excluding impact of the Over-issuance of Securities
 
Statutory
Impact of the Over-issuance of Securities
Excluding impact of the Over-issuance of Securities
 
 
 
£m
£m
£m
 
£m
£m
£m
 
% Change
Barclays UK
5,289
—
5,289
 
4,837
—
4,837
 
9
Corporate and Investment Bank
10,792
292
10,500
 
9,702
—
9,702
 
8
Consumer, Cards and Payments
3,213
—
3,213
 
2,453
—
2,453
 
31
Barclays International
14,005
292
13,713
 
12,155
—
12,155
 
13
Head Office
(139)
—
(139)
 
(212)
—
(212)
 
34
Total income
19,155
292
18,863
 
16,780
—
16,780
 
12
Credit impairment (charges)/releases
(722)
—
(722)
 
622
—
622
 
 
Operating costs
(11,209)
—
(11,209)
 
(10,578)
—
(10,578)
 
(6)
Litigation and conduct
(1,518)
(966)
(552)
 
(305)
(174)
(131)
 
 
Total operating expenses
(12,727)
(966)
(11,761)
 
(10,883)
(174)
(10,709)
 
(10)
Other net (expenses)/ income
(4)
—
(4)
 
247
—
247
 
 
Profit before tax
5,702
(674)
6,376
 
6,766
(174)
6,940
 
(8)
Attributable profit
3,987
(552)
4,539
 
5,126
(132)
5,258
 
(14)
 
 
 
 
 
 
 
 
 
 
Average tangible shareholders' equity
48.8
 
48.8
 
47.1
 
47.1
 
 
Return on average tangible shareholders' equity
10.9%
 
12.4%
 
14.5%
 
14.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended 30.09.22
 
Restated1
Three months ended 30.09.21
 
 
 
Statutory
Impact of the Over-issuance of Securities
Excluding impact of the Over-issuance of Securities
 
Statutory
Impact of the Over-issuance of Securities
Excluding impact of the Over-issuance of Securities
 
 
 
£m
£m
£m
 
£m
£m
£m
 
% Change
Barclays UK
1,916
—
1,916
 
1,638
—
1,638
 
17
Corporate and Investment Bank
2,821
(466)
3,287
 
3,129
—
3,129
 
5
Consumer, Cards and Payments
1,244
—
1,244
 
808
—
808
 
54
Barclays International
4,065
(466)
4,531
 
3,937
—
3,937
 
15
Head Office
(30)
—
(30)
 
(110)
—
(110)
 
73
Total income
5,951
(466)
6,417
 
5,465
—
5,465
 
17
Credit impairment charges
(381)
—
(381)
 
(120)
—
(120)
 
 
Operating costs
(3,939)
—
(3,939)
 
(3,446)
—
(3,446)
 
(14)
Litigation and conduct
339
503
(164)
 
(129)
(97)
(32)
 
 
Total operating expenses
(3,600)
503
(4,103)
 
(3,575)
(97)
(3,478)
 
(18)
Other net (expenses)/ income
(1)
—
(1)
 
94
—
94
 
 
Profit before tax
1,969
37
1,932
 
1,864
(97)
1,961
 
(1)
Attributable profit
1,512
29
1,483
 
1,374
(72)
1,446
 
3
 
 
 
 
 
 
 
 
 
 
Average tangible shareholders' equity
48.6
 
48.6
 
48.3
 
48.3
 
 
Return on average tangible shareholders' equity
12.5%
 
12.2%
 
11.4%
 
12.0%
 
 
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Group Finance Director's Review
 
 
 
Group performance Q322 YTD1
 
 
 
●
Barclays delivered a profit before tax of £5,702m (Q321 YTD: £6,766m), RoTE of 10.9% (Q321 YTD: 14.5%), and earnings per share (EPS) of 24.2p (Q321 YTD: 30.0p)
●
The Group has a diverse income profile across businesses and geographies including a significant presence in the US. The 9% appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and total operating expenses
●
Total income increased to £19,155m (Q321 YTD: £16,780m). Barclays UK income increased to £5,289m (Q321 YTD: £4,837m). Barclays International income increased to £14,005m (Q321 YTD: £12,155m), with CIB income increasing to £10,792m (Q321 YTD: £9,702m) and CC&P income increasing to £3,213m (Q321 YTD £2,453m). Excluding the income benefit of £292m from hedging arrangements related to the Over-issuance of Securities, total Group income was £18,863m, up 12% year-on-year, Barclays International income was £13,713m, up 13% year-on-year and CIB income was £10,500m, up 8% year-on-year
●
Credit impairment charges were £722m (Q321 YTD: £622m net release). Whilst delinquencies remained below historical levels, the deterioration in the macroeconomic forecast has been reflected in the total impairment provision as at 30 September 2022 of £6.4bn. The YTD credit impairment charges reflect consumption of £1.0bn of the PMAs for economic uncertainty, which is now captured in the modelled output, leaving a balance of £0.7bn
●
Total Group operating expenses increased to £12,727m (Q321 YTD: £10,883m) mainly due to higher litigation and conduct charges:
 
–
Operating costs (which exclude litigation and conduct charges) increased 6% to £11,209m, reflecting continued investment and business growth, the impact of inflation and the appreciation of average USD against GBP, partially offset by efficiency savings and the non-recurrence of structural cost actions primarily relating to the real estate review in June 2021
 
–
Litigation and conduct charges were £1,518m (Q321 YTD: £305m) including £966m impact from the Over-issuance of Securities, £282m of customer remediation costs relating to legacy loan portfolios in CC&P and £165m related to the Devices Settlements2 recognised in Q222
●
The effective tax rate (ETR) was 18.8% (Q321 YTD: 15.3%). The tax charge included £346m for the re-measurement of the Group’s UK deferred tax assets (DTAs) due to the enactment of legislation in Q122 to reduce the UK banking surcharge rate from 8% to 3% effective from 1 April 2023. The ETR excluding the impact of this downward re-measurement of UK DTAs was 12.7%, reflecting the impact of tax benefits arising in the current year as well as beneficial adjustments in respect of prior years
●
Attributable profit was £3,987m (Q321 YTD: £5,126m) despite the £552m impact of the Over-issuance of Securities, delivering EPS of 24.2p for the year to date
●
Total assets increased to £1,726.9bn (December 2021: £1,384.3bn) reflecting higher levels of activity as we supported our clients through a period of market volatility, and the appreciation of USD against GBP
●
TNAV per share decreased to 286p (December 2021: 291p) with EPS of 24.2p and currency movements more than offset by net negative reserve movements due to higher interest rates, primarily in the cash flow hedging reserve
 
 
Capital distributions
 
 
 
●
Barclays paid a half-year dividend of 2.25p per share on 16 September 2022, and completed a share buyback of £0.5bn on 3 October 2022, bringing the total capital return equivalent to c.5.25p per share as announced at H122 results
●
Barclays is committed to maintaining an appropriate balance between delivering attractive 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 as appropriate, including with share buybacks
●
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
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
2
Refers to the settlements with the SEC and Commodity Futures Trading Commission (CFTC) in connection with their investigations of the use of unauthorised devices for business communications. See Other matters on page 10.
 
 
Barclays UK
 
 
 
Barclays UK delivered a RoTE of 18.7% (Q321 YTD: 17.9%) and a lower cost: income ratio of 60% (Q321 YTD: 66%), reflecting improved income performance whilst maintaining broadly stable total operating expenses. Barclays UK continues to navigate a challenging operating environment with a focus on supporting customers through affordability challenges and retaining elevated unsecured lending coverage ratios, while remaining well positioned to benefit from rising rates
 
 
 
●
Profit before tax was broadly in line at £1,979m (Q321 YTD: £1,957m), with the non-recurrence of a prior year credit impairment release offsetting benefits from the rising rate environment in the UK
●
Total income increased 9% to £5,289m. Net interest income increased 10% to £4,293m with a net interest margin of 2.78% (Q321 YTD: 2.53%) primarily driven by the rising interest rate environment in the UK. Net fee, commission and other income increased 5% to £996m
 
–
Personal Banking income increased 14% to £3,311m, driven by rising interest rates and the benefit of strong mortgage origination in 2021, partially offset by mortgage margin compression
 
–
Barclaycard Consumer UK income decreased 8% to £824m as higher transaction based revenues from improved customer spend volumes were more than offset by lower interest earning lending (IEL) balances. Lower IEL balances were impacted by higher customer repayments and reduced borrowing
 
–
Business Banking income increased 11% to £1,154m driven by rising interest rates alongside improved transaction based revenues, partially offset by lower government scheme lending income as repayments continue
●
Credit impairment charges were £129m (Q321 YTD: £306m net release) driven by a deteriorating macroeconomic forecast, in particular from customer vulnerability to high inflation and rising interest rates. This was partially offset by consuming economic uncertainty PMAs which were established in prior periods in anticipation of the future deterioration, which is now captured within the modelled output. As at 30 September 2022, 30 and 90 day arrears rates in UK cards were 1.0% (Q321: 1.0%) and 0.3% (Q321: 0.3%) respectively. The arrears rates in the UK cards business remain below historical levels although provision levels remain elevated in light of affordability headwinds as reflected in the UK credit card and consumer loan business total coverage ratio of 8.3% (December 2021: 10.9%)
●
Total operating expenses was broadly stable at £3,180m (Q321 YTD: £3,187m) driven by increased investment spend and the impact of inflation, offset by efficiency savings
●
Loans and advances to customers at amortised cost decreased 2% to £205.1bn as £3.1bn of mortgage growth was more than offset by a £7.3bn decrease in Business Banking balances due to the repayment of government scheme lending and the yield curve impact from rising interest rates on the Education, Social Housing and Local Authority portfolio carrying value
●
Customer deposits at amortised cost remained stable at £261.0bn (December 2021: £260.6bn), maintaining a strong loan: deposit ratio of 86% (December 2021: 85%)
●
RWAs remained broadly stable at £73.2bn (December 2021: £72.3bn)
 
 
Barclays International1
 
 
 
Barclays International delivered a RoTE of 11.5%, with a CIB RoTE of 11.9% reflecting the benefits of income diversification and continued investment in the business. CC&P delivered a RoTE of 8.9% as continued momentum across the business, including the GAP portfolio acquisition, was impacted by a provision for customer remediation costs relating to a legacy loan portfolio.
●
Profit before tax decreased 22% to £4,169m with a RoTE of 11.5% (Q321 YTD: 15.9%), reflecting a RoTE of 11.9% (Q321 YTD: 15.8%) in CIB and 8.9% (Q321 YTD: 16.2%) in CC&P
●
Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US. The 9% appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges, total operating expenses and RWAs
●
Total income increased to £14,005m (Q321 YTD: £12,155m)
 
–
CIB income increased 11% to £10,792m
 
–
Global Markets income increased 38% to £7,428m representing the best Q3 YTD for both Markets and FICC on a comparable basis2. FICC income increased 63% to £4,719m, mainly in macro, reflecting higher levels of activity as we supported our clients through a period of market volatility. Equities income of £2,709m (Q321 YTD: £2,466m) included £292m of income related to hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities
 
–
Investment Banking fees income decreased 36% to £1,735m due to the reduced fee pool, particularly in Equity and Debt capital markets3, and a strong prior year comparative
 
–
Within Corporate, Transaction banking income increased 42% to £1,732m driven by improved margins and balance growth in deposits, and higher fee income. Corporate lending income was an expense of £103m (Q321 YTD: £412m income) due to fair value losses on leverage finance lending of c.£255m net of mark to market gains on related hedges, of which c.£190m fair value losses was recognised in Q322, and higher costs of hedging and credit protection
 
–
CC&P income increased 31% to £3,213m
 
–
International Cards and Consumer Bank income increased 33% to £2,053m as higher average cards balances, including the impact of the GAP portfolio acquisition, were partially offset by higher customer acquisition costs
 
–
Private Bank income increased 25% to £729m, reflecting client balance growth and improved margins partially offset by the non-recurrence of a gain on a property sale in the prior year
 
–
Payments income increased 30% to £431m driven by turnover growth following the easing of lockdown restrictions in the past year
●
Credit impairment charges were £605m (Q321 YTD: £311m net release) driven by a deteriorating economic forecast
 
–
CIB credit impairment charge of £78m (Q321 YTD: £400m net release) was driven by a net increase in modelled impairment and single name wholesale loan charges partially offset by the benefit of credit protection. The prior year included a net release resulting from an improved macroeconomic outlook scenario refresh
 
–
CC&P credit impairment charges increased to £527m (Q321 YTD: £89m) driven by higher balances in US cards, including the day one impact of acquiring the GAP portfolio, and the deteriorating macroeconomic forecast, in particular from customer vulnerability to high inflation and rising interest rates. This was partially offset by consuming economic uncertainty PMAs which were established in prior periods in anticipation of the future deterioration, which is now captured within the modelled output . As at 30 September 2022, 30 and 90 day arrears in US cards were 2.0% (Q321: 1.5%) and 0.8% (Q321: 0.7%) respectively. The arrears rates in the US cards business remain below historical levels and continue to be supported by elevated provision levels in light of affordability headwinds as reflected in the total coverage ratio of 8.3% (December 2021: 10.6%)
●
Total operating expenses increased 29% to £9,254m
 
–
CIB total operating expenses increased 28% to £6,968m. Operating costs increased 11% to £5,834m driven by investment in talent, systems and technology, and the impact of inflation. Litigation and conduct charges were £1,134m (Q321 YTD: £178m) including £966m of rescission offer costs in relation to the Over-issuance of Securities and the £165m provision relating to the Devices Settlements4 recognised in Q222
 
–
CC&P total operating expenses increased 31% to £2,286m primarily driven by £302m of litigation and conduct costs, mainly relating to provisions for higher customer remediation costs relating to a legacy loan portfolio. Operating costs increased 20% to £1,984m, including the impact of higher investment spend reflecting an increase in marketing and costs for existing and new partnerships
●
RWAs increased to £269.3bn (December 2021: £230.9bn) resulting from the impact of the appreciation of USD against GBP, increased client activity within CIB, regulatory changes that took effect from 1 January 2022 and higher CC&P balances driven mainly by the GAP portfolio acquisition
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
2
Period covering Q114-Q322. Pre 2014 data was not restated following re-segmentation in Q116.
3
Data source: Dealogic for the period covering 1 January to 30 September 2022.
4
Refers to the settlements with the SEC and CFTC in connection with their investigations of the use of unauthorised devices for business communications. See Other matters on page 10.
 
 
Head Office
 
 
 
●
Loss before tax was £446m (Q321 YTD: £517m)
●
Total income was an expense of £139m (Q321 YTD: £212m) which primarily reflected hedge accounting, funding costs on legacy capital instruments, treasury items, as well as a £74m loss on sale arising from disposals of Barclays’ equity stake in Absa Group Limited (Absa) in April 2022 and September 2022. This was partially offset by the gain of £86m from the sale and leaseback of UK data centres and the receipt of dividends from Absa prior to disposal
●
Total operating expenses reduced to £293m (Q321 YTD: £519m) reflecting the non-recurrence of the £266m charge related to structural cost actions taken as part of the real estate review in June 2021, partially offset by higher litigation and conduct charges
●
Other net income was an expense of £26m (Q321 YTD: £209m income) driven by a fair value loss on investments held by the Business Growth Fund in which Barclays has an associate interest
●
RWAs reduced to £8.2bn (December 2021: £11.0bn) reflecting the disposals of Barclays' equity stake in Absa in April 2022 and September 2022
 
 
Group capital and leverage1
 
 
 
●
The reported CET1 ratio decreased by c.130bps to 13.8% (December 2021: 15.1%) as RWAs increased by £36.6bn to £350.8bn partially offset by a CET1 capital increase of £1.2bn to £48.6bn
 
–
c.90bps largely driven by returns to shareholders including the 2.25p dividend paid in September 2022 and £1.5bn of share buybacks which have now completed. It also included £0.6bn of AT1 coupon payments and an accrual towards a FY22 dividend
 
–
c.80bps reduction to the CET1 ratio due to the impact of regulatory change on 1 January 2022 as CET1 capital decreased by £1.7bn and RWAs increased by £6.6bn
 
–
c.20bps reduction due to the impact of the Over-issuance of Securities reflecting the £0.6bn net of tax impact to CET1 capital
 
–
Excluding the impacts above, the CET1 ratio increased by c.60bps reflecting an increase in CET1 capital of £6.5bn partially offset by a £30.0bn increase in RWAs:
 
 
–
The £6.5bn increase in CET1 capital largely reflects profits offset by a decrease in the fair value through other comprehensive income reserve. An increase in the currency translation reserve was broadly offset by increases in RWAs due to the appreciation of USD against GBP
 
 
–
The £30.0bn increase in RWAs was primarily due to foreign exchange movements, increased client activity within CIB and higher CC&P balances mainly driven by the GAP portfolio acquisition. This was marginally offset by the disposal of Barclays' equity stake in Absa
●
The UK leverage ratio decreased to 5.0% (December 2021: 5.2%) primarily due to an increase in the leverage exposure of £94.2bn to £1,232.1bn partially offset by an increase in Tier 1 Capital of £2.3bn to £61.8bn
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Group funding and liquidity
 
 
 
●
The liquidity pool was £326bn (December 2021: £291bn) and the liquidity coverage ratio (LCR) remained significantly above the 100% regulatory requirement at 151% (December 2021: 168%), equivalent to a surplus of £107bn (December 2021: £116bn). The increase in the liquidity pool, due to increased deposits and wholesale funding, was more than offset by increased net stress outflows resulting in a lower LCR ratio
●
Wholesale funding outstanding, excluding repurchase agreements, was £188.9bn (December 2021: £167.5bn). The Group issued £9.3bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) in the year to date. The Group has a strong MREL position with a ratio of 31.9% of RWAs which is in excess of its regulatory requirement of 28.4%, excluding the confidential institution specific PRA buffer. The Group remains above its MREL regulatory requirement including the PRA buffer
 
 
Other matters
 
 
 
●
 Over-issuance of Securities: consistent with Barclays' announcement on 30 September 2022
 
–
Barclays recognised a net attributable loss of £0.6bn year to date (Q322 attributable profit of £29m), materially in line with the financial impact disclosed in the Barclays PLC (BPLC) and Barclays Bank PLC (BBPLC) H122 results. This included a monetary penalty of $200m (£165m1) following the resolution of the SEC’s investigation of BPLC and BBPLC relating to the Over-issuance of Securities
 
–
The external counsel-led review (the Review) of the facts and circumstances relating to the over-issuance and the control environment related to such issuances is now complete. The Review found that the over-issuance occurred because Barclays did not put in place a mechanism to track issuances after BBPLC was subjected to a limit on issuance. Among the principal causes of the over-issuance were, first, the failure to identify and escalate to senior executives the consequences of the loss of well-known seasoned issuer status, and, secondly, a decentralised ownership structure for securities issuance
 
–
The Review further concluded that the over-issuance was not the result of a general lack of attention to controls by Barclays, and that Barclays’ management has consistently emphasised the importance of maintaining effective controls
 
As previously disclosed, Barclays has a contingent liability in relation to current and potential private civil claims and other potential enforcement actions relating to the Over-issuance of Securities
 
For further details see the “Update on related litigation and conduct matters” on page 52.
●
SEC and CFTC devices investigation: further to the previously disclosed settlements in principle by BBPLC and Barclays Capital Inc. (BCI) with the SEC and CFTC in relation to their investigations of compliance with recordkeeping obligations in connection with business-related communications sent over unapproved electronic messaging platforms, in September 2022 the SEC and CFTC announced the final terms of the settlements, under which Barclays Bank PLC and BCI have agreed to pay a combined $125m (£103m1) civil monetary penalty to the SEC and a $75m (£62m1) civil monetary penalty to the CFTC
●
Legacy Loan Portfolio: a customer remediation provision of £282m has been recognised, of which £181m was recognised in Q122 relating to a legacy timeshare loan portfolio brokered by Azure Services Limited, and £101m was recognised in Q322 in relation to other legacy loan portfolios. Barclays continues to review complaints regarding these loans
●
Financial Conduct Authority (FCA) proceedings: further to the disclosures in the H122 results in relation to the FCA investigation into disclosure-related matters arising out of BPLC’s June and November 2008 capital raisings:
 
–
In September 2022, the FCA’s Regulatory Decisions Committee (RDC) issued Decision Notices finding that BPLC and BBPLC breached certain disclosure-related listing rules. The RDC also found that in relation to the disclosures made in the capital raising of November 2008, BPLC and BBPLC acted recklessly, and that BPLC breached Listing Principle 3. The RDC upheld the combined penalty of £50m on BPLC and BBPLC, the same penalty as in the Warning Notices issued by the FCA in relation to this matter in 2013
 
–
BPLC and BBPLC have referred the RDC’s findings to the Upper Tribunal for reconsideration
 
–
A provision for £50m has been recognised as at 30 September 2022 in relation to this matter and it is reported as a litigation and conduct expense within Head Office
●
GAP portfolio acquisition: on 21 June 2022 Barclays completed the acquisition of a US credit card portfolio of $3.3bn (£2.7bn2) of receivables, in partnership with GAP Inc. The acquisition reduced the Group CET1 ratio by approximately 15bps at Q222. The partnership broadens Barclays product offering in the retail sector and store cards, advancing our strategy and growth ambitions in the United States
●
Kensington Mortgage Company acquisition: on 24 June 2022 Barclays PLC announced that Barclays Bank UK PLC has agreed to acquire UK specialist mortgage lender Kensington Mortgage Company Limited, thereby broadening Barclays' capabilities and product offering in the UK mortgage market. The transaction is subject to regulatory approval and is expected to complete in late Q422 or early Q123
●
Absa sale: on 21 April 2022, Barclays sold 63m ordinary shares in Absa (7.4% of Absa’s issued share capital) at a price of ZAR 164.0 per share, raising aggregate gross sale proceeds of ZAR 10.3bn (£516m3). On 1 September 2022, Barclays sold its remaining shareholding of 63m ordinary shares in Absa at a price of ZAR 169.0 per share raising aggregate gross sale proceeds of ZAR 10.7bn (£535m4)
●
Pensions: during 2019 and 2020, the UK Retirement Fund, the Group’s main pension scheme, subscribed for non-transferable listed senior fixed rate notes for £1.25bn. Following the PRA's statement on 13 April 2022, Barclays is planning to unwind these transactions in Q422, which is expected to result in an accelerated c.30bps reduction to the CET1 ratio, which otherwise would have been reflected in subsequent periods
●
UK Corporation Tax: an increase in the UK corporation tax rate from 19% to 25% was enacted in 2021 and a reduction in the UK banking surcharge from 8% to 3% was enacted in Q122, both to be effective from 1 April 2023. On 14 October 2022 the UK Government announced that it intended to proceed with the increase in the corporation tax rate and that an update on the banking surcharge will be provided as part of its Medium-Term Fiscal Plan currently scheduled for 31 October 2022. It is therefore expected that from 1 April 2023 the corporation tax rate will be 25%, while the future rate of banking surcharge remains uncertain
 
 
1
Exchange rate GBP/USD 1.22 as at 30 June 2022.
2
Exchange rate GBP/USD 1.23 as at 21 June 2022
3
Exchange rate GBP/ZAR 20.04 as at 21 April 2022.
4
Exchange rate GBP/ZAR 19.93 as at 1 September 2022.
 
 
Group targets
 
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%
 
 
Anna Cross, Group Finance Director
 
Results by Business
 
 
Barclays UK
Nine months ended
 
Three months ended
 
30.09.22
30.09.21
 
 
30.09.22
30.09.21
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
4,293
3,889
10
 
1,561
1,303
20
Net fee, commission and other income
996
948
5
 
355
335
6
Total income
5,289
4,837
9
 
1,916
1,638
17
Credit impairment (charges)/releases
(129)
306
 
 
(81)
(137)
41
Net operating income
5,160
5,143
—
 
1,835
1,501
22
Operating costs
(3,152)
(3,155)
—
 
(1,069)
(1,041)
(3)
Litigation and conduct
(28)
(32)
13
 
(3)
(10)
70
Total operating expenses
(3,180)
(3,187)
—
 
(1,072)
(1,051)
(2)
Other net (expenses)/income
(1)
1
 
 
(1)
1
 
Profit before tax
1,979
1,957
1
 
762
451
69
Attributable profit
1,403
1,336
5
 
549
317
73
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
18.7%
17.9%
 
 
22.1%
12.7%
 
Average allocated tangible equity (£bn)
10.0
9.9
 
 
9.9
10.0
 
Cost: income ratio
60%
66%
 
 
56%
64%
 
Loan loss rate (bps)
8
(18)
 
 
14
24
 
Net interest margin
2.78%
2.53%
 
 
3.01%
2.49%
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
As at 31.12.21
As at 30.09.21
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances to customers at amortised cost
205.1
208.8
208.6
 
 
 
 
Total assets
316.8
321.2
312.1
 
 
 
 
Customer deposits at amortised cost
261.0
260.6
256.8
 
 
 
 
Loan: deposit ratio
86%
85%
86%
 
 
 
 
Risk weighted assets
73.2
72.3
73.2
 
 
 
 
Period end allocated tangible equity
10.1
10.0
10.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of Barclays UK
Nine months ended
 
Three months ended
30.09.22
30.09.21
 
 
30.09.22
30.09.21
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
Personal Banking
3,311
2,900
14
 
1,212
990
22
Barclaycard Consumer UK
824
898
(8)
 
283
293
(3)
Business Banking
1,154
1,039
11
 
421
355
19
Total income
5,289
4,837
9
 
1,916
1,638
17
 
 
 
 
 
 
 
 
Analysis of credit impairment (charges)/releases
 
 
 
 
 
 
 
Personal Banking
(47)
20
 
 
(26)
(30)
13
Barclaycard Consumer UK
42
290
(86)
 
2
(108)
 
Business Banking
(124)
(4)
 
 
(57)
1
 
Total credit impairment (charges)/releases
(129)
306
 
 
(81)
(137)
41
 
 
 
 
 
 
 
 
 
As at 30.09.22
As at 31.12.21
As at 30.09.21
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
 
 
 
 
Personal Banking
168.7
165.4
164.6
 
 
 
 
Barclaycard Consumer UK
9.0
8.7
8.6
 
 
 
 
Business Banking
27.4
34.7
35.4
 
 
 
 
Total loans and advances to customers at amortised cost
205.1
208.8
208.6
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
Personal Banking
197.3
196.4
193.3
 
 
 
 
Barclaycard Consumer UK
—
—
—
 
 
 
 
Business Banking
63.7
64.2
63.5
 
 
 
 
Total customer deposits at amortised cost
261.0
260.6
256.8
 
 
 
 
 
 
 
 
Barclays International
Nine months ended
 
Three months ended
 
30.09.22
Restated1
30.09.21
 
 
30.09.22
Restated1
30.09.21
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
3,462
2,308
50
 
1,497
749
100
Net trading income
6,540
4,904
33
 
1,328
1,515
(12)
Net fee, commission and other income
4,003
4,943
(19)
 
1,240
1,673
(26)
Total income
14,005
12,155
15
 
4,065
3,937
3
Credit impairment (charges)/releases
(605)
311
 
 
(295)
18
 
Net operating income
13,400
12,466
7
 
3,770
3,955
(5)
Operating costs
(7,818)
(6,916)
(13)
 
(2,776)
(2,310)
(20)
Litigation and conduct
(1,436)
(261)
 
 
396
(100)
 
Total operating expenses
(9,254)
(7,177)
(29)
 
(2,380)
(2,410)
1
Other net income
23
37
(38)
 
10
15
(33)
Profit before tax
4,169
5,326
(22)
 
1,400
1,560
(10)
Attributable profit
3,219
3,829
(16)
 
1,136
1,191
(5)
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.5%
15.9%
 
 
11.6%
14.9%
 
Average allocated tangible equity (£bn)
37.2
32.2
 
 
39.1
31.8
 
Cost: income ratio
66%
59%
 
 
59%
61%
 
Loan loss rate (bps)
43
(32)
 
 
62
(6)
 
Net interest margin
4.78%
3.96%
 
 
5.58%
4.02%
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
As at 31.12.21
As at 30.09.21
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances at amortised cost
184.2
133.8
125.9
 
 
 
 
Trading portfolio assets
126.3
146.9
144.8
 
 
 
 
Derivative financial instrument assets
415.7
261.5
257.0
 
 
 
 
Financial assets at fair value through the income statement
244.7
188.2
200.5
 
 
 
 
Cash collateral and settlement balances
163.3
88.1
115.9
 
 
 
 
Other assets
257.2
225.6
231.8
 
 
 
 
Total assets
1,391.4
1,044.1
1,075.9
 
 
 
 
Deposits at amortised cost
313.2
258.8
253.3
 
 
 
 
Derivative financial instrument liabilities
394.2
256.4
252.3
 
 
 
 
Loan: deposit ratio
59%
52%
50%
 
 
 
 
Risk weighted assets
269.3
230.9
222.7
 
 
 
 
Period end allocated tangible equity
38.8
33.2
31.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Analysis of Barclays International
 
 
 
 
 
 
Corporate and Investment Bank
Nine months ended
 
Three months ended
 
30.09.22
Restated1
30.09.21
 
 
30.09.22
Restated1
30.09.21
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
1,401
919
52
 
606
279
 
Net trading income
6,532
4,878
34
 
1,344
1,467
(8)
Net fee, commission and other income
2,859
3,905
(27)
 
871
1,383
(37)
Total income
10,792
9,702
11
 
2,821
3,129
(10)
Credit impairment (charges)/releases
(78)
400
 
 
(46)
128
 
Net operating income
10,714
10,102
6
 
2,775
3,257
(15)
Operating costs
(5,834)
(5,256)
(11)
 
(2,043)
(1,747)
(17)
Litigation and conduct
(1,134)
(178)
 
 
498
(99)
 
Total operating expenses
(6,968)
(5,434)
(28)
 
(1,545)
(1,846)
16
Other net income
—
1
 
 
—
—
 
Profit before tax
3,746
4,669
(20)
 
1,230
1,411
(13)
Attributable profit
2,910
3,337
(13)
 
1,015
1,085
(6)
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.9%
15.8%
 
 
11.9%
15.6%
 
Average allocated tangible equity (£bn)
32.5
28.2
 
 
34.0
27.8
 
Cost: income ratio
65%
56%
 
 
55%
59%
 
Loan loss rate (bps)
7
(56)
 
 
13
(54)
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
As at 31.12.21
As at 30.09.21
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances at amortised cost
140.0
100.0
93.8
 
 
 
 
Trading portfolio assets
126.1
146.7
144.7
 
 
 
 
Derivative financial instrument assets
415.5
261.5
256.9
 
 
 
 
Financial assets at fair value through the income statement
244.6
188.1
200.4
 
 
 
 
Cash collateral and settlement balances
162.6
87.2
115.1
 
 
 
 
Other assets
220.6
195.8
200.4
 
 
 
 
Total assets
1,309.4
979.3
1,011.3
 
 
 
 
Deposits at amortised cost
229.5
189.4
185.8
 
 
 
 
Derivative financial instrument liabilities
394.2
256.4
252.2
 
 
 
 
Risk weighted assets
230.6
200.7
192.5
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
FICC
4,719
2,902
63
 
1,546
803
93
Equities
2,709
2,466
10
 
246
757
(68)
Global Markets
7,428
5,368
38
 
1,792
1,560
15
Advisory
571
634
(10)
 
150
253
(41)
Equity capital markets
126
655
(81)
 
42
186
(77)
Debt capital markets
1,038
1,414
(27)
 
341
532
(36)
Investment Banking fees
1,735
2,703
(36)
 
533
971
(45)
Corporate lending
(103)
412
 
 
(181)
168
 
Transaction banking
1,732
1,219
42
 
677
430
57
Corporate
1,629
1,631
—
 
496
598
(17)
Total income
10,792
9,702
11
 
2,821
3,129
(10)
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Analysis of Barclays International
 
 
 
 
 
 
Consumer, Cards and Payments
Nine months ended
 
Three months ended
 
30.09.22
30.09.21
 
 
30.09.22
30.09.21
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
2,061
1,390
48
 
891
471
89
Net fee, commission, trading and other income
1,152
1,063
8
 
353
337
5
Total income
3,213
2,453
31
 
1,244
808
54
Credit impairment charges
(527)
(89)
 
 
(249)
(110)
 
Net operating income
2,686
2,364
14
 
995
698
43
Operating costs
(1,984)
(1,660)
(20)
 
(733)
(563)
(30)
Litigation and conduct
(302)
(83)
 
 
(102)
(1)
 
Total operating expenses
(2,286)
(1,743)
(31)
 
(835)
(564)
(48)
Other net income
23
36
(36)
 
10
15
(33)
Profit before tax
423
657
(36)
 
170
149
14
Attributable profit
309
492
(37)
 
121
106
14
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
8.9%
16.2%
 
 
9.5%
10.5%
 
Average allocated tangible equity (£bn)
4.7
4.0
 
 
5.1
4.0
 
Cost: income ratio
71%
71%
 
 
67%
70%
 
Loan loss rate (bps)
150
35
 
 
211
127
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
As at 31.12.21
As at 30.09.21
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Loans and advances at amortised cost
44.2
33.8
32.1
 
 
 
 
Total assets
82.0
64.8
64.6
 
 
 
 
Deposits at amortised cost
83.7
69.4
67.5
 
 
 
 
Risk weighted assets
38.7
30.2
30.2
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
International Cards and Consumer Bank
2,053
1,540
33
 
824
490
68
Private Bank
729
581
25
 
270
188
44
Payments
431
332
30
 
150
130
15
Total income
3,213
2,453
31
 
1,244
808
54
 
 
 
 
Head Office
Nine months ended
 
Three months ended
 
30.09.22
30.09.21
 
 
30.09.22
30.09.21
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
76
(354)
 
 
10
(112)
 
Net fee, commission and other income
(215)
142
 
 
(40)
2
 
Total income
(139)
(212)
34
 
(30)
(110)
73
Credit impairment releases/(charges)
12
5
 
 
(5)
(1)
 
Net operating income
(127)
(207)
39
 
(35)
(111)
68
Operating costs
(239)
(507)
53
 
(94)
(95)
1
Litigation and conduct
(54)
(12)
 
 
(54)
(19)
 
Total operating expenses
(293)
(519)
44
 
(148)
(114)
(30)
Other net (expenses)/income
(26)
209
 
 
(10)
78
 
Loss before tax
(446)
(517)
14
 
(193)
(147)
(31)
Attributable loss
(635)
(39)
 
 
(173)
(134)
(29)
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
1.6
5.0
 
 
(0.4)
6.5
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
Restated1
As at 31.12.21
Restated1
As at 30.09.21
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
 
 
 
Total assets
18.7
19.0
18.5
 
 
 
 
Risk weighted assets
8.2
11.0
11.8
 
 
 
 
Period end allocated tangible equity
(3.5)
5.5
6.3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
Quarterly Results Summary
 
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
 
Q322
Q222
Q122
 
Q4211
Q3211
Q2211
Q121
 
Q420
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
3,068
2,422
2,341
 
2,230
1,940
2,052
1,851
 
1,845
Net fee, commission and other income
2,883
4,286
4,155
 
2,930
3,525
3,363
4,049
 
3,096
Total income
5,951
6,708
6,496
 
5,160
5,465
5,415
5,900
 
4,941
Credit impairment (charges)/releases
(381)
(200)
(141)
 
31
(120)
797
(55)
 
(492)
Net operating income
5,570
6,508
6,355
 
5,191
5,345
6,212
5,845
 
4,449
Operating costs
(3,939)
(3,682)
(3,588)
 
(3,514)
(3,446)
(3,587)
(3,545)
 
(3,480)
UK bank levy
—
—
—
 
(170)
—
—
—
 
(299)
Litigation and conduct
339
(1,334)
(523)
 
(92)
(129)
(143)
(33)
 
(47)
Total operating expenses
(3,600)
(5,016)
(4,111)
 
(3,776)
(3,575)
(3,730)
(3,578)
 
(3,826)
Other net (expenses)/income
(1)
7
(10)
 
13
94
21
132
 
23
Profit before tax
1,969
1,499
2,234
 
1,428
1,864
2,503
2,399
 
646
Tax charge
(249)
(209)
(614)
 
(104)
(292)
(246)
(496)
 
(163)
Profit after tax
1,720
1,290
1,620
 
1,324
1,572
2,257
1,903
 
483
Non-controlling interests
(2)
(20)
(1)
 
(27)
(1)
(15)
(4)
 
(37)
Other equity instrument holders
(206)
(199)
(215)
 
(218)
(197)
(194)
(195)
 
(226)
Attributable profit
1,512
1,071
1,404
 
1,079
1,374
2,048
1,704
 
220
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
12.5%
8.7%
11.5%
 
9.0%
11.4%
17.6%
14.7%
 
1.8%
Average tangible shareholders' equity (£bn)
48.6
49.0
48.8
 
48.0
48.3
46.5
46.5
 
47.6
Cost: income ratio
60%
75%
63%
 
73%
65%
69%
61%
 
77%
Loan loss rate (bps)
36
20
15
 
(3)
13
(90)
6
 
56
Basic earnings per share
9.4p
6.4p
8.4p
 
6.4p
8.0p
11.9p
9.9p
 
1.3p
Basic weighted average number of shares (m)
16,148
16,684
16,682
 
16,985
17,062
17,140
17,293
 
17,300
Period end number of shares (m)
15,888
16,531
16,762
 
16,752
16,851
16,998
17,223
 
17,359
 
 
 
 
 
 
 
 
 
 
 
Balance sheet and capital management2
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances at amortised cost
413.7
395.8
371.7
 
361.5
353.0
348.5
345.8
 
342.6
Loans and advances at amortised cost impairment coverage ratio
1.4%
1.4%
1.5%
 
1.6%
1.7%
1.8%
2.2%
 
2.4%
Total assets
1,726.9
1,589.2
1,496.1
 
1,384.3
1,406.5
1,376.3
1,379.7
 
1,349.5
Deposits at amortised cost
574.4
568.7
546.5
 
519.4
510.2
500.9
498.8
 
481.0
Tangible net asset value per share
286p
297p
294p
 
291p
286p
280p
267p
 
269p
Common equity tier 1 ratio
13.8%
13.6%
13.8%
 
15.1%
15.3%
15.0%
14.6%
 
15.1%
Common equity tier 1 capital
48.6
46.7
45.3
 
47.3
47.2
46.2
45.9
 
46.3
Risk weighted assets
350.8
344.5
328.8
 
314.1
307.7
307.4
313.4
 
306.2
UK leverage ratio
5.0%
5.1%
5.0%
 
5.2%
5.1%
5.0%
5.0%
 
5.3%
UK leverage exposure
1,232.1
1,151.2
1,123.5
 
1,137.9
1,162.7
1,154.9
1,145.4
 
1,090.9
Average UK leverage ratio
4.8%
4.7%
4.8%
 
4.9%
4.9%
4.8%
4.9%
 
5.0%
Average UK leverage exposure
1,259.6
1,233.5
1,179.4
 
1,229.0
1,201.1
1,192.7
1,174.9
 
1,146.9
 
 
 
 
 
 
 
 
 
 
 
Funding and liquidity
 
 
 
 
 
 
 
 
 
 
Group liquidity pool (£bn)
326
343
320
 
291
293
291
290
 
266
Liquidity coverage ratio
151%
156%
159%
 
168%
161%
162%
161%
 
162%
Loan: deposit ratio
72%
70%
68%
 
70%
69%
70%
69%
 
71%
 
 
1
The comparative capital and financial metrics relating to Q221 - Q421 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
2
Refer to pages 39 to 45 for further information on how capital, RWAs and leverage are calculated.
 
Quarterly Results by Business
 
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q322
Q222
Q122
 
Q421
Q321
Q221
Q121
 
Q420
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
1,561
1,393
1,339
 
1,313
1,303
1,305
1,281
 
1,317
Net fee, commission and other income
355
331
310
 
386
335
318
295
 
309
Total income
1,916
1,724
1,649
 
1,699
1,638
1,623
1,576
 
1,626
Credit impairment (charges)/releases
(81)
—
(48)
 
59
(137)
520
(77)
 
(170)
Net operating income
1,835
1,724
1,601
 
1,758
1,501
2,143
1,499
 
1,456
Operating costs
(1,069)
(1,085)
(998)
 
(1,202)
(1,041)
(1,078)
(1,036)
 
(1,134)
UK bank levy
—
—
—
 
(36)
—
—
—
 
(50)
Litigation and conduct
(3)
(16)
(9)
 
(5)
(10)
(19)
(3)
 
4
Total operating expenses
(1,072)
(1,101)
(1,007)
 
(1,243)
(1,051)
(1,097)
(1,039)
 
(1,180)
Other net (expenses)/income
(1)
—
—
 
(1)
1
—
—
 
6
Profit before tax
762
623
594
 
514
451
1,046
460
 
282
Attributable profit
549
458
396
 
420
317
721
298
 
160
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to customers at amortised cost
205.1
205.9
207.3
 
208.8
208.6
207.8
205.7
 
205.4
Total assets
316.8
318.8
317.2
 
321.2
312.1
311.2
309.1
 
289.1
Customer deposits at amortised cost
261.0
261.5
260.3
 
260.6
256.8
255.5
247.5
 
240.5
Loan: deposit ratio
86%
85%
85%
 
85%
86%
87%
88%
 
89%
Risk weighted assets
73.2
72.2
72.7
 
72.3
73.2
72.2
72.7
 
73.7
Period end allocated tangible equity
10.1
9.9
10.1
 
10.0
10.0
9.9
10.0
 
9.7
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
22.1%
18.4%
15.6%
 
16.8%
12.7%
29.1%
12.0%
 
6.5%
Average allocated tangible equity (£bn)
9.9
10.0
10.1
 
10.0
10.0
9.9
9.9
 
9.8
Cost: income ratio
56%
64%
61%
 
73%
64%
68%
66%
 
73%
Loan loss rate (bps)
14
—
9
 
(10)
24
(93)
14
 
31
Net interest margin
3.01%
2.71%
2.62%
 
2.49%
2.49%
2.55%
2.54%
 
2.56%
 
 
Analysis of Barclays UK
Q322
Q222
Q122
 
Q421
Q321
Q221
Q121
 
Q420
Analysis of total income
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Personal Banking
1,212
1,077
1,022
 
983
990
987
923
 
895
Barclaycard Consumer UK
283
265
276
 
352
293
290
315
 
354
Business Banking
421
382
351
 
364
355
346
338
 
377
Total income
1,916
1,724
1,649
 
1,699
1,638
1,623
1,576
 
1,626
 
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment (charges)/releases
 
 
 
 
 
 
 
 
 
 
Personal Banking
(26)
(42)
21
 
8
(30)
72
(22)
 
(68)
Barclaycard Consumer UK
2
84
(44)
 
114
(108)
434
(36)
 
(78)
Business Banking
(57)
(42)
(25)
 
(63)
1
14
(19)
 
(24)
Total credit impairment (charges)/releases
(81)
—
(48)
 
59
(137)
520
(77)
 
(170)
 
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Personal Banking
168.7
167.1
166.5
 
165.4
164.6
162.4
160.4
 
157.3
Barclaycard Consumer UK
9.0
8.8
8.4
 
8.7
8.6
8.8
8.7
 
9.9
Business Banking
27.4
30.0
32.4
 
34.7
35.4
36.6
36.6
 
38.2
Total loans and advances to customers at amortised cost
205.1
205.9
207.3
 
208.8
208.6
207.8
205.7
 
205.4
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
 
 
 
Personal Banking
197.3
197.0
196.6
 
196.4
193.3
191.0
186.0
 
179.7
Barclaycard Consumer UK
—
—
—
 
—
—
0.1
0.1
 
0.1
Business Banking
63.7
64.5
63.7
 
64.2
63.5
64.4
61.4
 
60.7
Total customer deposits at amortised cost
261.0
261.5
260.3
 
260.6
256.8
255.5
247.5
 
240.5
 
 
Barclays International
 
 
 
 
 
 
 
 
 
 
 
Q322
Q222
Q122
 
Q4211
Q3211
Q2211
Q121
 
Q420
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
1,497
1,029
936
 
955
749
811
748
 
614
Net trading income
1,328
2,766
2,446
 
789
1,515
1,455
1,934
 
1,372
Net fee, commission and other income
1,240
1,321
1,442
 
1,766
1,673
1,553
1,717
 
1,500
Total income
4,065
5,116
4,824
 
3,510
3,937
3,819
4,399
 
3,486
Credit impairment (charges)/releases
(295)
(209)
(101)
 
(23)
18
271
22
 
(291)
Net operating income
3,770
4,907
4,723
 
3,487
3,955
4,090
4,421
 
3,195
Operating costs
(2,776)
(2,537)
(2,505)
 
(2,160)
(2,310)
(2,168)
(2,438)
 
(2,133)
UK bank levy
—
—
—
 
(134)
—
—
—
 
(240)
Litigation and conduct
396
(1,319)
(513)
 
(84)
(100)
(140)
(21)
 
(9)
Total operating expenses
(2,380)
(3,856)
(3,018)
 
(2,378)
(2,410)
(2,308)
(2,459)
 
(2,382)
Other net income
10
5
8
 
3
15
13
9
 
9
Profit before tax
1,400
1,056
1,713
 
1,112
1,560
1,795
1,971
 
822
Attributable profit
1,136
783
1,300
 
818
1,191
1,207
1,431
 
441
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances at amortised cost
184.2
167.3
144.8
 
133.8
125.9
121.9
123.5
 
122.7
Trading portfolio assets
126.3
126.9
134.1
 
146.9
144.8
147.1
131.1
 
127.7
Derivative financial instrument assets
415.7
343.5
288.8
 
261.5
257.0
255.4
269.4
 
301.8
Financial assets at fair value through the income statement
244.7
209.3
203.8
 
188.2
200.5
190.4
197.5
 
170.7
Cash collateral and settlement balances
163.3
128.5
132.0
 
88.1
115.9
108.5
109.7
 
97.5
Other assets
257.2
275.1
255.5
 
225.6
231.8
223.5
221.7
 
221.4
Total assets
1,391.4
1,250.6
1,159.0
 
1,044.1
1,075.9
1,046.8
1,052.9
 
1,041.8
Deposits at amortised cost
313.2
307.4
286.1
 
258.8
253.3
245.4
251.2
 
240.5
Derivative financial instrument liabilities
394.2
321.2
277.2
 
256.4
252.3
246.9
260.2
 
300.4
Loan: deposit ratio
59%
54%
51%
 
52%
50%
50%
49%
 
51%
Risk weighted assets
269.3
263.8
245.1
 
230.9
222.7
223.2
230.0
 
222.3
Period end allocated tangible equity
38.8
38.0
35.6
 
33.2
31.8
31.8
32.7
 
30.2
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.6%
8.4%
14.8%
 
9.9%
14.9%
14.9%
17.7%
 
5.8%
Average allocated tangible equity (£bn)
39.1
37.3
35.1
 
32.9
31.8
32.4
32.3
 
30.5
Cost: income ratio
59%
75%
63%
 
68%
61%
60%
56%
 
68%
Loan loss rate (bps)
62
49
28
 
7
(6)
(87)
(7)
 
90
Net interest margin
5.58%
4.52%
4.15%
 
4.14%
4.02%
3.96%
3.92%
 
3.41%
 
 
1
The comparative capital and financial metrics relating to Q221 - Q421 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Analysis of Barclays International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Investment Bank
Q322
Q222
Q122
 
Q4211
Q3211
Q2211
Q121
 
Q420
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
606
410
385
 
432
279
370
270
 
110
Net trading income
1,344
2,738
2,450
 
774
1,467
1,494
1,917
 
1,397
Net fee, commission and other income
871
885
1,103
 
1,426
1,383
1,115
1,407
 
1,131
Total income
2,821
4,033
3,938
 
2,632
3,129
2,979
3,594
 
2,638
Credit impairment (charges)/releases
(46)
(65)
33
 
73
128
229
43
 
(52)
Net operating income
2,775
3,968
3,971
 
2,705
3,257
3,208
3,637
 
2,586
Operating costs
(2,043)
(1,870)
(1,921)
 
(1,562)
(1,747)
(1,623)
(1,886)
 
(1,603)
UK bank levy
—
—
—
 
(128)
—
—
—
 
(226)
Litigation and conduct
498
(1,314)
(318)
 
(59)
(99)
(78)
(1)
 
2
Total operating expenses
(1,545)
(3,184)
(2,239)
 
(1,749)
(1,846)
(1,701)
(1,887)
 
(1,827)
Other net income
—
—
—
 
1
—
—
1
 
2
Profit before tax
1,230
784
1,732
 
957
1,411
1,507
1,751
 
761
Attributable profit
1,015
579
1,316
 
695
1,085
989
1,263
 
413
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances at amortised cost
140.0
125.8
109.6
 
100.0
93.8
91.0
94.3
 
92.4
Trading portfolio assets
126.1
126.7
134.0
 
146.7
144.7
147.0
130.9
 
127.5
Derivative financial instruments assets
415.5
343.4
288.7
 
261.5
256.9
255.3
269.4
 
301.7
Financial assets at fair value through the income statement
244.6
209.2
203.8
 
188.1
200.4
190.3
197.3
 
170.4
Cash collateral and settlement balances
162.6
127.7
131.2
 
87.2
115.1
107.7
108.8
 
96.7
Other assets
220.6
237.2
222.5
 
195.8
200.4
192.5
190.8
 
194.9
Total assets
1,309.4
1,170.0
1,089.8
 
979.3
1,011.3
983.8
991.5
 
983.6
Deposits at amortised cost
229.5
229.5
214.7
 
189.4
185.8
178.2
185.2
 
175.2
Derivative financial instrument liabilities
394.2
321.2
277.1
 
256.4
252.2
246.8
260.2
 
300.3
Risk weighted assets
230.6
227.6
213.5
 
200.7
192.5
194.3
201.3
 
192.2
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.9%
7.1%
17.1%
 
9.7%
15.6%
14.0%
17.9%
 
6.3%
Average allocated tangible equity (£bn)
34.0
32.7
30.8
 
28.7
27.8
28.4
28.2
 
26.3
Cost: income ratio
55%
79%
57%
 
66%
59%
57%
53%
 
69%
Loan loss rate (bps)
13
20
(12)
 
(29)
(54)
(100)
(18)
 
22
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of total income
£m
£m
£m
 
£m
£m
£m
£m
 
£m
FICC
1,546
1,529
1,644
 
546
803
895
1,204
 
812
Equities
246
1,411
1,052
 
501
757
777
932
 
542
Global Markets
1,792
2,940
2,696
 
1,047
1,560
1,672
2,136
 
1,354
Advisory
150
236
185
 
287
253
218
163
 
232
Equity capital markets
42
37
47
 
158
186
226
243
 
104
Debt capital markets
341
281
416
 
511
532
429
453
 
418
Investment Banking fees
533
554
648
 
956
971
873
859
 
754
Corporate lending
(181)
(47)
125
 
176
168
38
206
 
186
Transaction banking
677
586
469
 
453
430
396
393
 
344
Corporate
496
539
594
 
629
598
434
599
 
530
Total income
2,821
4,033
3,938
 
2,632
3,129
2,979
3,594
 
2,638
 
 
1
The comparative capital and financial metrics relating to Q221 - Q421 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Analysis of Barclays International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer, Cards and Payments
Q322
Q222
Q122
 
Q421
Q321
Q221
Q121
 
Q420
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
891
619
551
 
522
471
441
478
 
504
Net fee, commission, trading and other income
353
464
335
 
356
337
399
327
 
344
Total income
1,244
1,083
886
 
878
808
840
805
 
848
Credit impairment (charges)/releases
(249)
(144)
(134)
 
(96)
(110)
42
(21)
 
(239)
Net operating income
995
939
752
 
782
698
882
784
 
609
Operating costs
(733)
(667)
(584)
 
(598)
(563)
(545)
(552)
 
(530)
UK bank levy
—
—
—
 
(6)
—
—
—
 
(14)
Litigation and conduct
(102)
(5)
(195)
 
(25)
(1)
(62)
(20)
 
(11)
Total operating expenses
(835)
(672)
(779)
 
(629)
(564)
(607)
(572)
 
(555)
Other net income
10
5
8
 
2
15
13
8
 
7
Profit/(loss) before tax
170
272
(19)
 
155
149
288
220
 
61
Attributable profit/(loss)
121
204
(16)
 
123
106
218
168
 
28
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances at amortised cost
44.2
41.5
35.2
 
33.8
32.1
30.9
29.2
 
30.3
Total assets
82.0
80.6
69.2
 
64.8
64.6
63.0
61.4
 
58.2
Deposits at amortised cost
83.7
77.9
71.4
 
69.4
67.5
67.2
66.0
 
65.3
Risk weighted assets
38.7
36.2
31.6
 
30.2
30.2
29.0
28.8
 
30.1
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
9.5%
17.8%
(1.5)%
 
11.7%
10.5%
21.8%
16.5%
 
2.7%
Average allocated tangible equity (£bn)
5.1
4.6
4.3
 
4.2
4.0
4.0
4.1
 
4.2
Cost: income ratio
67%
62%
88%
 
72%
70%
72%
71%
 
65%
Loan loss rate (bps)
211
132
145
 
105
127
(49)
27
 
286
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of total income
£m
£m
£m
 
£m
£m
£m
£m
 
£m
International Cards and Consumer Bank
824
691
538
 
552
490
517
533
 
576
Private Bank
270
245
214
 
200
188
214
179
 
174
Payments
150
147
134
 
126
130
109
93
 
98
Total income
1,244
1,083
886
 
878
808
840
805
 
848
 
 
Head Office
 
 
 
 
 
 
 
 
 
 
 
Q322
Q222
Q122
 
Q421
Q321
Q221
Q121
 
Q420
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
10
—
66
 
(38)
(112)
(64)
(178)
 
(86)
Net fee, commission and other income
(40)
(132)
(43)
 
(11)
2
37
103
 
(85)
Total income
(30)
(132)
23
 
(49)
(110)
(27)
(75)
 
(171)
Credit impairment (charges)/releases
(5)
9
8
 
(5)
(1)
6
—
 
(31)
Net operating income
(35)
(123)
31
 
(54)
(111)
(21)
(75)
 
(202)
Operating costs
(94)
(60)
(85)
 
(152)
(95)
(341)
(71)
 
(213)
UK bank levy
—
—
—
 
—
—
—
—
 
(9)
Litigation and conduct
(54)
1
(1)
 
(3)
(19)
16
(9)
 
(42)
Total operating expenses
(148)
(59)
(86)
 
(155)
(114)
(325)
(80)
 
(264)
Other net (expenses)/income
(10)
2
(18)
 
11
78
8
123
 
8
Loss before tax
(193)
(180)
(73)
 
(198)
(147)
(338)
(32)
 
(458)
Attributable (loss)/profit
(173)
(170)
(292)
 
(159)
(134)
120
(25)
 
(381)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets
18.7
19.8
19.9
 
19.0
18.5
18.3
17.7
 
18.6
Risk weighted assets1
8.2
8.6
11.0
 
11.0
11.8
12.0
10.7
 
10.2
Period end allocated tangible equity1
(3.5)
1.1
3.6
 
5.5
6.3
5.9
3.3
 
6.8
 
 
 
 
 
 
 
 
 
 
 
Performance measures1
 
 
 
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
(0.4)
1.7
3.6
 
5.1
6.5
4.2
4.3
 
7.3
 
 
1
The comparative capital and financial metrics relating to Q221 - Q421 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
 
Performance Management
 
 
Margins and balances
 
Nine months ended 30.09.22
Nine months ended 30.09.21
 
Net interest income
Average customer assets
Net interest margin
Net interest income
Average customer assets
Net interest margin
 
£m
£m
%
£m
£m
%
Barclays UK
4,293
206,308
2.78
3,889
205,889
2.53
Barclays International1
3,302
92,441
4.78
2,301
77,628
3.96
Total Barclays UK and Barclays International
7,595
298,749
3.40
6,190
283,517
2.92
Other2
236
 
 
(347)
 
 
Total Barclays Group
7,831
 
 
5,843
 
 
 
 
 
 
 
 
 
 
 
1
Barclays International margins include the lending related investment bank business.
2
Other includes Head Office and the non-lending related investment bank businesses not included in Barclays International margins.
 
 
The Group’s combined product and equity structural hedge notional as at 30 September 2022 was £266bn (30 September 2021: £224bn), with an average duration of close to 3 years (2021: average duration close to 3 years). Gross structural hedge contributions of £1,487m (Q321 YTD: £1,042m) and net structural hedge contributions of £(361)m (Q321 YTD: £889m) are included in Group net interest income. Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.
 
 
 
Quarterly analysis for Barclays UK and Barclays International
Net interest income
Average customer assets
Net interest margin
Three months ended 30.09.22
£m
£m
%
Barclays UK
1,561
205,881
3.01
Barclays International1
1,420
100,910
5.58
Total Barclays UK and Barclays International
2,981
306,791
3.85
 
 
 
 
Three months ended 30.06.22
 
 
 
Barclays UK
1,393
205,834
2.71
Barclays International1
1,016
92,371
4.41
Total Barclays UK and Barclays International
2,409
298,205
3.24
 
 
 
 
Three months ended 31.03.22
 
 
 
Barclays UK
1,339
207,607
2.62
Barclays International1
867
84,838
4.15
Total Barclays UK and Barclays International
2,206
292,445
3.06
 
 
 
 
Three months ended 31.12.21
 
 
 
Barclays UK
1,313
209,064
2.49
Barclays International1
848
81,244
4.14
Total Barclays UK and Barclays International
2,161
290,308
2.95
 
 
 
 
Three months ended 30.09.21
 
 
 
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
 
 
1
Barclays International margins include the lending related investment bank business.
 
 
Credit Risk
 
Loans and advances at amortised cost by stage
 
The table below presents a stage allocation and business segment analysis of loans and advances at amortised cost by gross exposure, impairment allowance, impairment charge and coverage ratio as at 30 September 2022. Also included are a stage allocation of off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage as at 30 September 2022.
 
Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to gross loans and advances to the extent allowance does not exceed the drawn exposure and any excess is reported on the liabilities side of the balance sheet as a provision. For wholesale portfolios, impairment allowance on 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 30.09.22
£m
£m
£m
£m
 
£m
£m
£m
£m
£m
Barclays UK
161,995
23,111
2,805
187,911
 
224
741
684
1,649
186,262
Barclays International
34,489
3,928
1,729
40,146
 
607
1,082
879
2,568
37,578
Head Office
3,749
233
674
4,656
 
3
21
353
377
4,279
Total Barclays Group retail
200,233
27,272
5,208
232,713
 
834
1,844
1,916
4,594
228,119
Barclays UK
35,598
2,700
842
39,140
 
146
97
88
331
38,809
Barclays International
129,621
16,710
1,136
147,467
 
282
247
324
853
146,614
Head Office
156
—
20
176
 
—
—
20
20
156
Total Barclays Group wholesale1
165,375
19,410
1,998
186,783
 
428
344
432
1,204
185,579
Total loans and advances at amortised cost
365,608
46,682
7,206
419,496
 
1,262
2,188
2,348
5,798
413,698
Off-balance sheet loan commitments and financial guarantee contracts2
396,483
30,856
1,231
428,570
 
284
282
26
592
427,978
Total3
762,091
77,538
8,437
848,066
 
1,546
2,470
2,374
6,390
841,676
 
 
 
 
 
 
 
 
 
 
 
 
As at 30.09.22
 
Nine months ended 30.09.22
 
 
Coverage ratio
 
Loan impairment charge/(release) and loan loss rate
 
 
Stage 1
Stage 2
Stage 3
Total
 
Loan impairment charge/(release)
Loan loss rate
 
 
%
%
%
%
 
£m
bps
 
Barclays UK
0.1
3.2
24.4
0.9
 
 
36
 
3
 
Barclays International
1.8
27.5
50.8
6.4
 
 
501
 
167
 
Head Office
0.1
9.0
52.4
8.1
 
 
(12)
 
—
 
Total Barclays Group retail
0.4
6.8
36.8
2.0
 
 
525
 
30
 
Barclays UK
0.4
3.6
10.5
0.8
 
 
87
 
30
 
Barclays International
0.2
1.5
28.5
0.6
 
 
79
 
7
 
Head Office
—
—
100.0
11.4
 
 
 
 
 
 
Total Barclays Group wholesale1
0.3
1.8
21.6
0.6
 
 
166
 
12
 
Total loans and advances at amortised cost
0.3
4.7
32.6
1.4
 
 
691
 
22
 
Off-balance sheet loan commitments and financial guarantee contracts2
0.1
0.9
2.1
0.1
 
 
(2)
 
 
 
Other financial assets subject to impairment3
 
 
 
 
 
 
33
 
 
 
Total4
0.2
3.2
28.1
0.8
 
 
722
 
 
 
 
 
1
Includes Wealth UK and Private Banking exposures measured on an individual customer exposure basis and excludes Business Banking exposures, including lending under the government backed Bounce Back Loan Scheme (BBLS) of £7.4bn that are managed on a collective basis and reported within Barclays UK Retail. The net impact is a difference in total exposure of £3.5bn of balances reported as wholesale loans on page 28 in the Loans and advances at amortised cost by product disclosure.
2
Excludes loan commitments and financial guarantees of £18.2bn carried at fair value.
3
Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £237.0bn and impairment allowance of £168m. This comprises £12m ECL on £234.6bn Stage 1 assets, £8m on £2.3bn Stage 2 fair value through other comprehensive income assets, cash collateral and settlement balances and £147m on £155m Stage 3 other assets.
4
The loan loss rate is 23bps after applying the total impairment charge of £722m.
 
 
 
Gross exposure
 
Impairment allowance
Net exposure
 
Stage 1
Stage 2
Stage 3
Total
 
Stage 1
Stage 2
Stage 3
Total
As at 31.12.21
£m
£m
£m
£m
 
£m
£m
£m
£m
£m
Barclays UK
160,695
22,779
2,915
186,389
 
261
949
728
1,938
184,451
Barclays International
25,981
2,691
1,566
30,238
 
603
795
858
2,256
27,982
Head Office
3,735
429
705
4,869
 
2
36
347
385
4,484
Total Barclays Group retail
190,411
25,899
5,186
221,496
 
866
1,780
1,933
4,579
216,917
Barclays UK
35,571
1,917
969
38,457
 
153
43
111
307
38,150
Barclays International
92,341
13,275
1,059
106,675
 
187
192
458
837
105,838
Head Office
542
2
21
565
 
—
—
19
19
546
Total Barclays Group wholesale1
128,454
15,194
2,049
145,697
 
340
235
588
1,163
144,534
Total loans and advances at amortised cost
318,865
41,093
7,235
367,193
 
1,206
2,015
2,521
5,742
361,451
Off-balance sheet loan commitments and financial guarantee contracts2
312,142
34,815
1,298
348,255
 
217
302
23
542
347,713
Total3
631,007
75,908
8,533
715,448
 
1,423
2,317
2,544
6,284
709,164
 
 
 
 
 
 
 
 
 
 
 
 
As at 31.12.21
 
Year ended 31.12.21
 
 
Coverage ratio
 
Loan impairment charge/(release) and loan loss rate
 
 
Stage 1
Stage 2
Stage 3
Total
 
Loan impairment charge/(release)
Loan loss rate
 
 
%
%
%
%
 
£m
bps
 
Barclays UK
0.2
4.2
25.0
1.0
 
 
(227)
 
—
 
Barclays International
2.3
29.5
54.8
7.5
 
 
181
 
60
 
Head Office
0.1
8.4
49.2
7.9
 
 
—
 
—
 
Total Barclays Group retail
0.5
6.9
37.3
2.1
 
 
(46)
 
—
 
Barclays UK
0.4
2.2
11.5
0.8
 
 
122
 
32
 
Barclays International
0.2
1.4
43.2
0.8
 
 
(197)
 
—
 
Head Office
—
—
90.5
3.4
 
 
—
 
—
 
Total Barclays Group wholesale1
0.3
1.5
28.7
0.8
 
 
(75)
 
—
 
Total loans and advances at amortised cost
0.4
4.9
34.8
1.6
 
 
(121)
 
—
 
Off-balance sheet loan commitments and financial guarantee contracts2
0.1
0.9
1.8
0.2
 
 
(514)
 
 
 
Other financial assets subject to impairment3
 
 
 
 
 
 
(18)
 
 
 
Total
0.2
3.1
29.8
0.9
 
 
(653)
 
 
 
 
 
1
Includes Wealth and Private Banking exposures measured on an individual basis, and excludes Business Banking exposures, including BBLS of £9.4bn that are managed on a collective basis and reported within Barclays UK Retail. The net impact is a difference in total exposure of £6.0bn of balances reported as wholesale loans on page 28 in the Loans and advances at amortised cost by product disclosure.
2
Excludes loan commitments and financial guarantees of £18.8bn carried at fair value.
3
Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £155.2bn and impairment allowance of £114m. This comprises £6m ECL on £154.9bn Stage 1 assets, £1m on £157.0bn Stage 2 fair value through other comprehensive income assets, other assets and cash collateral and settlement balances and £107m on £110m Stage 3 other assets.
 
 
Loans and advances at amortised cost by product
 
The table below presents a breakdown of loans and advances at amortised cost and the impairment allowance with stage allocation by asset classification.
 
 
 
 
Stage 2
 
 
As at 30.09.22
Stage 1
Not past due
<=30 days past due
>30 days past due
Total
Stage 3
Total
Gross exposure
£m
£m
£m
£m
£m
£m
£m
Home loans
153,932
15,050
1,742
824
17,616
2,042
173,590
Credit cards, unsecured loans and other retail lending
46,310
6,107
310
470
6,887
2,455
55,652
Wholesale loans
165,366
21,656
375
148
22,179
2,709
190,254
Total
365,608
42,813
2,427
1,442
46,682
7,206
419,496
 
 
 
 
 
 
 
 
Impairment allowance
 
 
 
 
 
 
 
Home loans
20
34
7
6
47
405
472
Credit cards, unsecured loans and other retail lending
793
1,478
115
167
1,760
1,426
3,979
Wholesale loans
449
376
4
1
381
517
1,347
Total
1,262
1,888
126
174
2,188
2,348
5,798
 
 
 
 
 
 
 
 
Net exposure
 
 
 
 
 
 
 
Home loans
153,912
15,016
1,735
818
17,569
1,637
173,118
Credit cards, unsecured loans and other retail lending
45,517
4,629
195
303
5,127
1,029
51,673
Wholesale loans
164,917
21,280
371
147
21,798
2,192
188,907
Total
364,346
40,925
2,301
1,268
44,494
4,858
413,698
 
 
 
 
 
 
 
 
Coverage ratio
%
%
%
%
%
%
%
Home loans
—
0.2
0.4
0.7
0.3
19.8
0.3
Credit cards, unsecured loans and other retail lending
1.7
24.2
37.1
35.5
25.6
58.1
7.1
Wholesale loans
0.3
1.7
1.1
0.7
1.7
19.1
0.7
Total
0.3
4.4
5.2
12.1
4.7
32.6
1.4
 
 
 
 
 
 
 
 
As at 31.12.21
 
 
 
 
 
 
 
Gross exposure
£m
£m
£m
£m
£m
£m
£m
Home loans
148,058
17,133
1,660
707
19,500
2,122
169,680
Credit cards, unsecured loans and other retail lending
37,840
5,102
300
248
5,650
2,332
45,822
Wholesale loans
132,967
15,246
306
391
15,943
2,781
151,691
Total
318,865
37,481
2,266
1,346
41,093
7,235
367,193
 
 
 
 
 
 
 
 
Impairment allowance
 
 
 
 
 
 
 
Home loans
19
46
6
7
59
397
475
Credit cards, unsecured loans and other retail lending
824
1,493
85
123
1,701
1,504
4,029
Wholesale loans
363
248
4
3
255
620
1,238
Total
1,206
1,787
95
133
2,015
2,521
5,742
 
 
 
 
 
 
 
 
Net exposure
 
 
 
 
 
 
 
Home loans
148,039
17,087
1,654
700
19,441
1,725
169,205
Credit cards, unsecured loans and other retail lending
37,016
3,609
215
125
3,949
828
41,793
Wholesale loans
132,604
14,998
302
388
15,688
2,161
150,453
Total
317,659
35,694
2,171
1,213
39,078
4,714
361,451
 
 
 
 
 
 
 
 
Coverage ratio
%
%
%
%
%
%
%
Home loans
—
0.3
0.4
1.0
0.3
18.7
0.3
Credit cards, unsecured loans and other retail lending
2.2
29.3
28.3
49.6
30.1
64.5
8.8
Wholesale loans
0.3
1.6
1.3
0.8
1.6
22.3
0.8
Total
0.4
4.8
4.2
9.9
4.9
34.8
1.6
 
 
Measurement uncertainty
 
Scenarios used to calculate the Group’s ECL charge were refreshed in Q322 with the current Baseline scenario reflecting the latest consensus macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, further inflation increases impact household income which, along with significant monetary policy tightening, contribute to lower growth prospects. GDP growth for 2023 drops to 0.3% in the UK and 1.1% in the US. Unemployment rates increase slightly in the near term, reaching 4.5% in the UK and 4.2% in the US. Central banks continue raising interest rates as currently expected with the UK Bank Rate reaching 3.50%, while the US Federal Funds Rate peaks at 3.75%. Higher interest rates are expected to adversely impact the housing markets in major economies but house price growth remains positive over the forecast horizon.
 
In the Downside 2 scenario, increasing and persistent inflationary pressures cause the central banks to raise interest rates sharply. The UK Bank Rate and the US Federal Funds Rate both reach 5.0% in Q423. These higher borrowing costs derail economies with unemployment peaking in 2024 at 9.5% in the UK and 9.75% in the US. With already stretched valuations, the sharp increase in borrowing costs sees house prices decrease significantly. In the Upside 2 scenario, supply disruptions are resolved, and aggregate demand is supported by a release of household savings, accelerating GDP growth. Recovering labour force participation limits domestic inflationary pressures, while lower energy prices add downward pressure on prices globally. As a result of easing inflation, central banks keep interest rates lower for longer.
 
The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the Baseline attracting a lower weighting before the five weights are normalised to total 100%. The small weighting increase in the Baseline and modest reduction in the Downside was due to the slight shift in the relative position of the Downside scenarios to the Baseline scenario.
 
Management has applied economic uncertainty and other adjustments to modelled ECL outputs. The economic uncertainty adjustments of £0.7bn (30 June 2022: £1.0bn) have been determined with reference to the latest consensus macroeconomic forecasts subsequent to the modelled refresh and consist primarily of a provision for customers and clients considered most vulnerable to rising costs and supply chain disruption.
 
The tables below show the key consensus macroeconomic variables used in the scenarios (5-year annual paths) and the probability weights applied to each scenario.
 
 
 
Baseline average macroeconomic variables used in the calculation of ECL
 
2022
2023
2024
2025
2026
As at 30.09.22
%
%
%
%
%
UK GDP1
3.6
0.3
1.6
1.8
1.9
UK unemployment2
3.9
4.4
3.9
3.8
3.8
UK HPI3
6.6
0.6
0.4
2.0
2.8
UK bank rate
1.7
3.4
2.8
2.4
2.2
US GDP1
1.6
1.1
1.5
1.5
1.5
US unemployment4
3.7
4.0
4.2
4.2
4.2
US HPI5
6.4
3.4
3.4
3.4
3.4
US federal funds rate
2.1
3.4
2.8
2.3
2.3
 
2022
2023
2024
2025
2026
As at 30.06.22
%
%
%
%
%
UK GDP1
3.9
1.7
1.6
1.6
1.6
UK unemployment2
4.0
4.1
3.9
3.9
3.9
UK HPI3
4.3
1.0
2.2
2.5
2.8
UK bank rate
1.5
2.7
2.4
2.1
2.0
US GDP1
3.3
2.2
2.1
2.1
2.1
US unemployment4
3.6
3.5
3.5
3.5
3.5
US HPI5
4.1
3.4
3.4
3.4
3.4
US federal funds rate
1.5
3.2
2.9
2.7
2.5
 
2021
2022
2023
2024
2025
As at 31.12.21
%
%
%
%
%
UK GDP1
6.2
4.9
2.3
1.9
1.7
UK unemployment2
4.8
4.7
4.5
4.3
4.2
UK HPI3
4.7
1.0
1.9
1.9
2.3
UK bank rate
0.1
0.8
1.0
1.0
0.8
US GDP1
5.5
3.9
2.6
2.4
2.4
US unemployment4
5.5
4.2
3.6
3.6
3.6
US HPI5
11.8
4.5
5.2
4.9
5.0
US federal funds rate
0.2
0.3
0.9
1.2
1.3
 
 
1
Average Real GDP seasonally adjusted change in year.
2
Average UK unemployment rate 16-year+.
3
Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.
4
Average US civilian unemployment rate 16-year+.
5
Change in year end US HPI = FHFA House Price Index, relative to prior year end.
 
 
Downside 2 average economic variables used in the calculation of ECL
 
2022
2023
2024
2025
2026
As at 30.09.22
%
%
%
%
%
UK GDP1
3.4
(5.0)
(2.5)
4.0
4.3
UK unemployment2
4.4
8.1
9.0
7.0
6.0
UK HPI3
4.8
(22.3)
(14.1)
15.8
12.8
UK bank rate
1.8
4.6
4.6
3.0
2.7
US GDP1
1.4
(4.2)
(2.5)
2.6
2.3
US unemployment4
4.1
7.9
9.5
8.3
6.7
US HPI5
5.2
(7.2)
(0.3)
5.3
4.1
US federal funds rate
2.2
4.6
4.6
3.4
2.8
 
2022
2023
2024
2025
2026
As at 30.06.22
%
%
%
%
%
UK GDP1
3.1
(4.8)
(0.4)
4.3
3.6
UK unemployment2
5.2
8.4
8.6
6.8
5.9
UK HPI3
0.2
(26.2)
(3.6)
17.9
10.2
UK bank rate
1.8
4.7
4.3
2.6
2.3
US GDP1
2.4
(4.1)
(0.2)
3.4
2.7
US unemployment4
4.6
8.0
9.0
7.1
5.8
US HPI5
(0.2)
(11.7)
(0.2)
5.5
3.5
US federal funds rate
1.8
4.8
4.6
3.6
3.0
 
2021
2022
2023
2024
2025
As at 31.12.21
%
%
%
%
%
UK GDP1
6.2
0.2
(4.0)
2.8
4.3
UK unemployment2
4.8
7.2
9.0
7.6
6.3
UK HPI3
4.7
(14.3)
(21.8)
11.9
15.2
UK bank rate
0.1
2.2
3.9
3.1
2.2
US GDP1
5.5
(0.8)
(3.5)
2.5
3.2
US unemployment4
5.5
6.4
9.1
8.1
6.4
US HPI5
11.8
(6.6)
(9.0)
5.9
6.7
US federal funds rate
0.2
2.1
3.4
2.6
2.0
 
 
1
Average Real GDP seasonally adjusted change in year.
2
Average UK unemployment rate 16-year+.
3
Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.
4
Average US civilian unemployment rate 16-year+.
5
Change in year end US HPI = FHFA House Price Index, relative to prior year end.
 
 
Downside 1 average economic variables used in the calculation of ECL
 
2022
2023
2024
2025
2026
As at 30.09.22
%
%
%
%
%
UK GDP1
3.5
(2.3)
(0.4)
2.9
3.1
UK unemployment2
4.1
6.3
6.5
5.4
4.9
UK HPI3
5.7
(11.4)
(7.0)
8.8
7.7
UK bank rate
1.7
3.9
3.8
2.7
2.4
US GDP1
1.5
(1.6)
(0.5)
2.0
1.9
US unemployment4
3.9
6.0
6.9
6.3
5.5
US HPI5
5.8
(2.0)
1.5
4.3
3.8
US federal funds rate
2.2
4.1
3.8
2.9
2.5
 
2022
2023
2024
2025
2026
As at 30.06.22
%
%
%
%
%
UK GDP1
3.5
(1.6)
0.6
3.0
2.6
UK unemployment2
4.6
6.2
6.2
5.3
4.9
UK HPI3
2.3
(13.2)
(0.8)
10.0
6.5
UK bank rate
1.6
3.8
3.4
2.4
2.0
US GDP1
2.7
(1.0)
1.1
2.9
2.5
US unemployment4
4.1
5.7
6.2
5.3
4.6
US HPI5
1.9
(4.4)
1.6
4.4
3.4
US federal funds rate
1.7
3.9
3.8
3.2
2.8
 
2021
2022
2023
2024
2025
As at 31.12.21
%
%
%
%
%
UK GDP1
6.2
2.8
(0.7)
2.3
2.9
UK unemployment2
4.8
6.2
6.8
6.0
5.3
UK HPI3
4.7
(6.8)
(10.5)
6.9
8.6
UK bank rate
0.1
1.6
2.7
2.3
1.6
US GDP1
5.5
1.6
(0.4)
2.4
2.7
US unemployment4
5.5
5.4
6.6
6.1
5.2
US HPI5
11.8
(1.2)
(2.1)
4.8
5.2
US federal funds rate
0.2
1.3
2.3
2.1
1.8
 
 
1
Average Real GDP seasonally adjusted change in year.
2
Average UK unemployment rate 16-year+.
3
Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.
4
Average US civilian unemployment rate 16-year+.
5
Change in year end US HPI = FHFA House Price Index, relative to prior year end.
 
 
Upside 2 average economic variables used in the calculation of ECL
 
2022
2023
2024
2025
2026
As at 30.09.22
%
%
%
%
%
UK GDP1
4.0
4.0
3.3
2.8
2.4
UK unemployment2
3.8
3.5
3.4
3.4
3.4
UK HPI3
7.2
10.3
5.7
4.5
4.1
UK bank rate
1.6
1.9
1.4
1.3
1.3
US GDP1
1.9
3.7
3.2
2.8
2.8
US unemployment4
3.6
3.3
3.3
3.3
3.3
US HPI5
7.0
5.7
4.8
4.5
4.5
US federal funds rate
2.0
2.5
1.8
1.3
1.3
 
2022
2023
2024
2025
2026
As at 30.06.22
%
%
%
%
%
UK GDP1
5.0
5.2
3.1
2.4
2.0
UK unemployment2
3.8
3.7
3.6
3.6
3.6
UK HPI3
6.5
11.2
6.2
4.7
3.7
UK bank rate
1.2
1.5
1.4
1.3
1.3
US GDP1
4.0
4.9
3.6
3.4
3.4
US unemployment4
3.4
3.0
3.1
3.1
3.1
US HPI5
5.4
5.5
4.6
4.5
4.5
US federal funds rate
1.1
2.2
1.9
1.7
1.5
 
2021
2022
2023
2024
2025
As at 31.12.21
%
%
%
%
%
UK GDP1
6.2
7.2
4.0
2.7
2.1
UK unemployment2
4.8
4.5
4.1
4.0
4.0
UK HPI3
4.7
8.5
9.0
5.2
4.2
UK bank rate
0.1
0.2
0.5
0.5
0.3
US GDP1
5.5
5.3
4.1
3.5
3.4
US unemployment4
5.5
3.9
3.4
3.3
3.3
US HPI5
11.8
10.6
8.5
7.2
6.6
US federal funds rate
0.2
0.3
0.4
0.7
1.0
 
 
1
Average Real GDP seasonally adjusted change in year.
2
Average UK unemployment rate 16-year+.
3
Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.
4
Average US civilian unemployment rate 16-year+.
5
Change in year end US HPI = FHFA House Price Index, relative to prior year end.
 
 
Upside 1 average economic variables used in the calculation of ECL
 
2022
2023
2024
2025
2026
As at 30.09.22
%
%
%
%
%
UK GDP1
3.8
2.1
2.5
2.3
2.1
UK unemployment2
3.8
3.7
3.6
3.6
3.6
UK HPI3
6.9
5.4
3.0
3.3
3.4
UK bank rate
1.7
2.6
2.2
1.8
1.6
US GDP1
1.8
2.4
2.3
2.2
2.2
US unemployment4
3.6
3.7
3.8
3.8
3.8
US HPI5
6.7
4.5
4.1
3.9
3.9
US federal funds rate
2.0
2.9
2.3
1.8
1.8
 
2022
2023
2024
2025
2026
As at 30.06.22
%
%
%
%
%
UK GDP1
4.5
3.5
2.4
2.0
1.8
UK unemployment2
3.9
3.8
3.8
3.8
3.8
UK HPI3
5.4
6.3
4.1
3.6
3.2
UK bank rate
1.3
2.0
1.6
1.5
1.5
US GDP1
3.7
3.7
3.0
2.9
2.9
US unemployment4
3.5
3.2
3.3
3.3
3.3
US HPI5
4.7
4.4
4.0
3.9
3.9
US federal funds rate
1.3
2.4
2.2
1.9
1.8
 
2021
2022
2023
2024
2025
As at 31.12.21
%
%
%
%
%
UK GDP1
6.2
6.0
3.1
2.3
1.9
UK unemployment2
4.8
4.6
4.3
4.2
4.1
UK HPI3
4.7
5.0
5.0
3.9
3.3
UK bank rate
0.1
0.6
0.8
0.8
0.5
US GDP1
5.5
4.6
3.4
2.9
2.9
US unemployment4
5.5
4.0
3.5
3.5
3.5
US HPI5
11.8
8.3
7.0
6.0
5.7
US federal funds rate
0.2
0.3
0.6
1.0
1.1
 
 
1
Average Real GDP seasonally adjusted change in year.
2
Average UK unemployment rate 16-year+.
3
Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end.
4
Average US civilian unemployment rate 16-year+.
5
Change in year end US HPI = FHFA House Price Index, relative to prior year end.
 
 
Scenario probability weighting
 
Upside 2
Upside 1
Baseline
Downside 1
Downside 2
 
%
%
%
%
%
As at 30.09.22
 
 
 
 
 
Scenario probability weighting
13.2
26.1
39.8
14.2
6.7
As at 30.06.22
 
 
 
 
 
Scenario probability weighting
14.0
25.6
37.8
15.2
7.4
As at 31.12.21
 
 
 
 
 
Scenario probability weighting
20.9
27.2
30.1
14.8
7.0
 
 
ECL under 100% weighted scenarios for modelled portfolios
 
The table below shows the modelled ECL assuming each of the five modelled scenarios are 100% weighted with the dispersion of results around the Baseline, highlighting the impact on exposure and ECL across the scenarios. Model exposure uses exposure at default (EAD) values and is not directly comparable to gross exposure used in prior disclosures.
 
The economic uncertainty adjustments of £0.7bn in the below reconciliation provides headroom for a modelled move from Weighted to Downside 1 scenario.
 
 
 
 
Scenarios
As at 30 September 2022
Weighted1
Upside 2
Upside 1
Baseline
Downside 1
Downside 2
Stage 1 Model Exposure (£m)
 
 
 
 
 
 
Home loans
145,014
146,430
145,833
145,170
144,042
142,451
Credit cards, unsecured loans and other retail lending2
49,525
49,489
49,195
48,759
47,647
46,230
Wholesale loans
190,267
194,085
192,450
190,757
187,497
180,876
Stage 1 Model ECL (£m)
 
 
 
 
 
 
Home loans
4
3
3
3
6
13
Credit cards, unsecured loans and other retail lending
456
430
439
450
481
504
Wholesale loans
295
244
265
284
347
403
Stage 1 Coverage (%)
 
 
 
 
 
 
Home loans
—
—
—
—
—
—
Credit cards, unsecured loans and other retail lending
0.9
0.9
0.9
0.9
1.0
1.1
Wholesale loans
0.2
0.1
0.1
0.1
0.2
0.2
Stage 2 Model Exposure (£m)
 
 
 
 
 
 
Home loans
17,615
16,199
16,796
17,459
18,587
20,178
Credit cards, unsecured loans and other retail lending2
7,719
6,759
7,081
7,595
8,962
10,776
Wholesale loans
27,647
23,829
25,464
27,157
30,417
37,038
Stage 2 Model ECL (£m)
 
 
 
 
 
 
Home loans
21
13
15
18
32
55
Credit cards, unsecured loans and other retail lending
1,596
1,353
1,436
1,563
1,937
2,449
Wholesale loans
559
412
457
529
779
1,303
Stage 2 Coverage (%)
 
 
 
 
 
 
Home loans
0.1
0.1
0.1
0.1
0.2
0.3
Credit cards, unsecured loans and other retail lending
20.7
20.0
20.3
20.6
21.6
22.7
Wholesale loans
2.0
1.7
1.8
1.9
2.6
3.5
Stage 3 Model Exposure (£m)3
 
 
 
 
 
 
Home loans
1,586
1,586
1,586
1,586
1,586
1,586
Credit cards, unsecured loans and other retail lending
1,790
1,790
1,790
1,790
1,790
1,790
Wholesale loans
2,671
2,671
2,671
2,671
2,671
2,671
Stage 3 Model ECL (£m)
 
 
 
 
 
 
Home loans
322
311
314
318
338
364
Credit cards, unsecured loans and other retail lending
1,207
1,191
1,199
1,205
1,225
1,240
Wholesale loans4
45
41
42
44
49
54
Stage 3 Coverage (%)
 
 
 
 
 
 
Home loans
20.3
19.6
19.8
20.1
21.3
23.0
Credit cards, unsecured loans and other retail lending
67.4
66.5
67.0
67.3
68.4
69.3
Wholesale loans4
1.7
1.5
1.6
1.6
1.8
2.0
Total Model ECL (£m)
 
 
 
 
 
 
Home loans
347
327
332
339
376
432
Credit cards, unsecured loans and other retail lending
3,259
2,974
3,074
3,218
3,643
4,193
Wholesale loans4
899
697
764
857
1,175
1,760
Total Model ECL
4,505
3,998
4,170
4,414
5,194
6,385
 
 
Reconciliation to total ECL
£m
Total weighted model ECL
4,505
ECL from individually assessed impairments4
426
ECL from non-modelled exposures and others
363
ECL from post model management adjustments
1,096
Of which: ECL from economic uncertainty adjustments
735
Total ECL
6,390
 
 
1
Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach as required for Barclays reported impairment allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage dependent on the scenario.
2
For Credit cards, unsecured loans and other retail lending, an average EAD measure is used (12-month or lifetime), depending on stage allocation for each scenario. Therefore, the model exposure movement into Stage 2 is higher than the corresponding Stage 1 reduction.
3
Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 30 September 2022 and not on macroeconomic scenario.
4
Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £426m is reported as an individually assessed impairment in the reconciliation table.
 
 
The use of five scenarios with associated weightings results in a total weighted ECL uplift from the Baseline ECL of 2.1%.
 
Home loans: Total weighted ECL of £347m represents a 2.4% increase over the Baseline ECL (£339m) with coverage ratios steady across the Upside scenarios, Baseline and Downside 1 scenario. Under the Downside 2 scenario, total ECL increases to £432m driven by a significant fall in UK HPI to 22.3% reflecting the non-linearity of the UK portfolio.
 
Credit cards, unsecured loans and other retail lending: Total weighted ECL of £3,259m represents a 1.3% increase over the Baseline ECL (£3,218m). Total ECL increases to £4,193m under the Downside 2 scenario, driven by the significant increase in UK unemployment rate to 8.1% and US unemployment rate to 7.9% in 2023.
 
Wholesale loans: Total weighted ECL of £899m represents an 4.9% increase over the Baseline ECL (£857m). Total ECL increases to £1,760m under Downside 2 scenario, driven by a significant decrease in UK GDP to (5.0)% and US GDP to (4.2)% in 2023.
 
 
 
 
Scenarios
As at 31 December 2021
Weighted1
Upside 2
Upside 1
Baseline
Downside 1
Downside 2
Stage 1 Model Exposure (£m)
 
 
 
 
 
 
Home loans
137,279
139,117
138,424
137,563
135,544
133,042
Credit cards, unsecured loans and other retail lending2
45,503
46,170
45,963
45,751
43,131
38,820
Wholesale loans
174,249
177,453
176,774
175,451
169,814
161,998
Stage 1 Model ECL (£m)
 
 
 
 
 
 
Home loans
4
2
2
3
6
14
Credit cards, unsecured loans and other retail lending
324
266
272
279
350
418
Wholesale loans
290
240
262
286
327
350
Stage 1 Coverage (%)
 
 
 
 
 
 
Home loans
—
—
—
—
—
—
Credit cards, unsecured loans and other retail lending
0.7
0.6
0.6
0.6
0.8
1.1
Wholesale loans
0.2
0.1
0.1
0.2
0.2
0.2
Stage 2 Model Exposure (£m)
 
 
 
 
 
 
Home loans
22,915
21,076
21,769
22,631
24,649
27,151
Credit cards, unsecured loans and other retail lending2
7,200
6,260
6,521
6,795
9,708
14,290
Wholesale loans
32,256
29,052
29,732
31,054
36,692
44,507
Stage 2 Model ECL (£m)
 
 
 
 
 
 
Home loans
15
10
11
12
22
47
Credit cards, unsecured loans and other retail lending
1,114
925
988
1,058
1,497
3,295
Wholesale loans
572
431
467
528
851
1,510
Stage 2 Coverage (%)
 
 
 
 
 
 
Home loans
0.1
—
0.1
0.1
0.1
0.2
Credit cards, unsecured loans and other retail lending
15.5
14.8
15.2
15.6
15.4
23.1
Wholesale loans
1.8
1.5
1.6
1.7
2.3
3.4
Stage 3 Model Exposure (£m)3
 
 
 
 
 
 
Home loans
1,724
1,724
1,724
1,724
1,724
1,724
Credit cards, unsecured loans and other retail lending
1,922
1,922
1,922
1,922
1,922
1,922
Wholesale loans
1,811
1,811
1,811
1,811
1,811
1,811
Stage 3 Model ECL (£m)
 
 
 
 
 
 
Home loans
303
292
295
299
320
346
Credit cards, unsecured loans and other retail lending
1,255
1,236
1,245
1,255
1,277
1,297
Wholesale loans4
323
321
322
323
326
332
Stage 3 Coverage (%)
 
 
 
 
 
 
Home loans
17.6
16.9
17.1
17.3
18.6
20.1
Credit cards, unsecured loans and other retail lending
65.3
64.3
64.8
65.3
66.4
67.5
Wholesale loans4
17.8
17.7
17.8
17.8
18.0
18.3
Total Model ECL (£m)
 
 
 
 
 
 
Home loans
322
304
308
314
348
407
Credit cards, unsecured loans and other retail lending
2,693
2,427
2,505
2,592
3,124
5,010
Wholesale loans4
1,185
992
1,051
1,137
1,504
2,192
Total Model ECL
4,200
3,723
3,864
4,043
4,976
7,609
 
 
Reconciliation to total ECL
£m
Total model ECL
4,200
ECL from individually assessed impairments4
524
ECL from non-modelled exposures and others
74
ECL from post model management adjustments5
1,486
Of which: ECL from economic uncertainty adjustments
1,692
Total ECL
6,284
 
 
1
Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach, as required for Barclays reported impairment allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage dependent on the scenario.
2
For Credit cards, unsecured loans and other retail lending, an average EAD measure is used (12-month or lifetime), depending on stage allocation for each scenario. Therefore, the model exposure movement into Stage 2 is higher than the corresponding Stage 1 reduction.
3
Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 30 September 2022 and not on macroeconomic scenario.
4
Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £524m is reported as an individually assessed impairment in the reconciliation table.
5
Post Model Adjustments include negative adjustments reflecting operational post model adjustments.
 
 
Treasury and Capital Risk
 
 
Regulatory minimum requirements
 
 
Capital
 
 
 
The Group’s Overall Capital Requirement for CET1 is 10.9% comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.4% Pillar 2A requirement and a 0% Countercyclical Capital Buffer (CCyB).
 
 
 
The Group’s CCyB is based on the buffer rate applicable for each jurisdiction in which the Group has exposures. On 11 March 2020, the Financial Policy Committee (FPC) set the CCyB rate for UK exposures at 0% with immediate effect. The buffer rates set by other national authorities for non-UK exposures are not currently material. Overall, this results in a 0.0% CCyB for the Group. On 13 December 2021, the FPC announced that a CCyB rate of 1% for UK exposures has been re-introduced with effect from 13 December 2022. On 5 July 2022, the FPC announced that the UK CCyB rate will be increased from 1% to 2% with effect from 5 July 2023.
 
 
 
The Group’s Pillar 2A requirement as per the PRA’s Individual Capital Requirement was set as a nominal amount. When expressed as a percentage of RWAs this was 4.2% of which at least 56.25% needed to be met with CET1 capital, equating to approximately 2.4% of RWAs. The Pillar 2A requirement is subject to at least annual review and is based on a point in time assessment.
 
 
 
The Group’s CET1 target ratio of 13-14% takes into account headroom above requirements which includes a confidential institution-specific PRA buffer. The Group remains above its minimum capital regulatory requirements including the PRA buffer.
 
 
 
Leverage
 
 
 
The Group is subject to a UK leverage ratio requirement of 3.8%. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer of 0.0%. Although the leverage ratio is expressed in terms of Tier 1 (T1) capital, 75% of the minimum requirement, equating to 2.4375%, needs to be met with CET1 capital. In addition, the G-SII ALRB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.5bn.
 
 
 
The Group is also required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter.
 
 
 
MREL
 
 
 
The Group is required to meet the higher of: (i) two times the sum of 8% Pillar 1 and 4.2% Pillar 2A; and (ii) 6.75% of leverage exposures plus capital buffers, including the above mentioned confidential institution-specific PRA buffer. CET1 capital cannot be counted towards both MREL and the capital buffers, meaning that the buffers will effectively be applied above MREL requirements.
 
 
 
Significant regulatory updates in the period
 
 
 
Capital and RWAs
 
 
 
On 1 January 2022, the PRA’s implementation of Basel III standards took effect including the re-introduction of the 100% CET1 capital deduction for qualifying software intangible assets and the introduction of the Standardised Approach for Counterparty Credit Risk (SA-CCR) which replaces the Current Exposure Method for Standardised derivative exposures as a more risk sensitive approach. In addition, the PRA also implemented IRB roadmap changes which includes revisions to the criteria for definition of default, probability of default and loss given default estimation to ensure supervisory consistency and increase transparency of IRB models.
 
 
 
Leverage
 
 
 
From 1 January 2022, UK banks became subject to a single UK leverage ratio requirement meaning that the CRR leverage ratio no longer applies. Central bank claims can be excluded from the UK leverage ratio measure as long as they are matched by qualifying liabilities (rather than deposits).
 
 
 
References to CRR, as amended by CRR II mean, the capital regulatory requirements, as they form part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.
 
 
 
 
 
 
Restated1
Capital ratios2,3,4
As at 30.09.22
As at 30.06.22
As at 31.12.21
CET1
13.8%
13.6%
15.1%
T1
17.6%
17.1%
19.1%
Total regulatory capital
20.3%
19.9%
22.2%
 
 
 
 
Capital resources
£m
£m
£m
Total equity excluding non-controlling interests per the balance sheet
67,034
69,627
69,052
Less: other equity instruments (recognised as AT1 capital)
(13,270)
(12,357)
(12,259)
Adjustment to retained earnings for foreseeable ordinary share dividends
(494)
(595)
(666)
Adjustment to retained earnings for foreseeable repurchase of shares
(9)
(568)
—
Adjustment to retained earnings for foreseeable other equity coupons
(82)
(32)
(32)
 
 
 
 
Other regulatory adjustments and deductions
 
 
 
Additional value adjustments (PVA)
(1,850)
(1,810)
(1,585)
Goodwill and intangible assets
(8,356)
(8,232)
(6,804)
Deferred tax assets that rely on future profitability excluding temporary differences
(1,034)
(1,010)
(1,028)
Fair value reserves related to gains or losses on cash flow hedges
9,451
4,673
852
Excess of expected losses over impairment
(7)
—
—
Gains or losses on liabilities at fair value resulting from own credit
(773)
(62)
892
Defined benefit pension fund assets
(3,162)
(3,785)
(2,619)
Direct and indirect holdings by an institution of own CET1 instruments
(20)
(20)
(50)
Adjustment under IFRS 9 transitional arrangements
759
642
1,229
Other regulatory adjustments
387
220
345
CET1 capital
48,574
46,691
47,327
 
 
 
 
AT1 capital
 
 
 
Capital instruments and related share premium accounts
13,270
12,357
12,259
Qualifying AT1 capital (including minority interests) issued by subsidiaries
—
—
637
Other regulatory adjustments and deductions
(60)
(60)
(80)
AT1 capital
13,210
12,297
12,816
 
 
 
 
T1 capital
61,784
58,988
60,143
 
 
 
 
T2 capital
 
 
 
Capital instruments and related share premium accounts
8,524
8,442
8,713
Qualifying T2 capital (including minority interests) issued by subsidiaries
1,176
1,277
1,113
Credit risk adjustments (excess of impairment over expected losses)
—
73
73
Other regulatory adjustments and deductions
(160)
(160)
(160)
Total regulatory capital
71,324
68,620
69,882
 
 
 
 
Total RWAs
350,774
344,516
314,136
 
 
1
Capital metrics as at 31 December 2021 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information. The transitional CET1 ratio remains unchanged at 15.1%.
2
CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR II non-compliant capital instruments. December 2021 comparatives include the grandfathering of CRR non-compliant capital instruments.
3
The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC AT1 securities, was 13.6%, with £47.8bn of CET1 capital and £350.5bn of RWAs calculated without applying the transitional arrangements of the CRR as amended by CRR II.
4
The Group’s CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays Bank PLC 7.625% Contingent Capital Notes, was 13.8%. For this calculation CET1 capital and RWAs are calculated applying the transitional arrangements under the CRR as amended by CRR II, including the IFRS 9 transitional arrangements. The benefit of the Financial Services Authority (FSA) October 2012 interpretation of the transitional provisions, relating to the implementation of CRD IV, expired in December 2017.
 
 
 
Movement in CET1 capital
Three months ended 30.09.22
Nine months ended 30.09.22
 
£m
£m
 
Opening CET1 capital1
46,691
47,327
 
 
 
 
Profit for the period attributable to equity holders
1,718
4,607
 
Own credit relating to derivative liabilities
(78)
(175)
 
Ordinary share dividends paid and foreseen
(263)
(856)
 
Purchased and foreseeable share repurchase
(500)
(1,500)
 
Other equity coupons paid and foreseen
(256)
(670)
 
Increase in retained regulatory capital generated from earnings
621
1,406
 
 
 
 
Net impact of share schemes
145
9
 
Fair value through other comprehensive income reserve
(408)
(1,167)
 
Currency translation reserve
1,730
3,433
 
Other reserves
23
58
 
Increase in other qualifying reserves
1,490
2,333
 
 
 
 
Pension remeasurements within reserves
(765)
325
 
Defined benefit pension fund asset deduction
623
(543)
 
Net impact of pensions
(142)
(218)
 
 
 
 
Additional value adjustments (PVA)
(40)
(265)
 
Goodwill and intangible assets
(124)
(1,552)
 
Deferred tax assets that rely on future profitability excluding those arising from temporary differences
(24)
(6)
 
Excess of expected loss over impairment
(7)
(7)
 
Direct and indirect holdings by an institution of own CET1 instruments
—
30
 
Adjustment under IFRS 9 transitional arrangements
117
(470)
 
Other regulatory adjustments
(8)
(4)
 
Decrease in regulatory capital due to adjustments and deductions
(86)
(2,274)
 
 
 
 
Closing CET1 capital
48,574
48,574
 
 
1
Opening balance as at 31 December 2021 has been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for further details.
 
 
CET1 capital increased £1.2bn to £48.6bn (December 2021: £47.3bn).
 
 
 
CET1 capital decreased by £1.7bn as a result of regulatory changes that took effect from 1 January 2022 including the re-introduction of the 100% CET1 capital deduction for qualifying software intangible assets and a reduction in IFRS9 transitional relief due to the relief applied to the pre-2020 impairment charge reducing to 25% in 2022 from 50% in 2021 and the relief applied to the post-2020 impairment charge reducing to 75% in 2022 from 100% in 2021.
 
 
 
£4.6bn of capital generated from profits, after absorbing the £0.6bn net of tax impact of the Over-issuance of Securities, was partially offset by distributions of £3bn comprising:
 
 
 
●
£1bn buyback announced with FY21 results and the £0.5bn buyback announced with H122 results, both of which have completed
●
£0.9bn of ordinary share dividend paid and foreseen reflecting £0.4bn half year 2022 dividend paid and a £0.5bn accrual towards a full year 2022 dividend
●
£0.7bn of equity coupons paid and foreseen
 
 
Other significant movements in the period were:
 
 
 
●
£1.2bn decrease in the fair value through other comprehensive income reserve primarily due to losses on bonds as a result of an increase in yields
●
£3.4bn increase in the currency translation reserves driven by the appreciation of period end USD against GBP
 
 
RWAs by risk type and business
 
Credit risk
 
Counterparty credit risk
 
Market Risk
 
Operational risk
Total RWAs
 
STD
IRB
 
STD
IRB
Settlement Risk
CVA
 
STD
IMA
 
 
 
As at 30.09.22
£m
£m
 
£m
£m
£m
£m
 
£m
£m
 
£m
£m
Barclays UK
6,487
55,121
 
246
—
—
84
 
256
—
 
11,047
73,241
Corporate and Investment Bank
38,886
75,561
 
20,115
24,735
446
3,111
 
15,596
26,879
 
25,296
230,625
Consumer, Cards and Payments
28,180
3,597
 
279
35
—
69
 
—
104
 
6,424
38,688
Barclays International
67,066
79,158
 
20,394
24,770
446
3,180
 
15,596
26,983
 
31,720
269,313
Head Office
2,785
6,431
 
—
—
—
—
 
—
—
 
(996)
8,220
Barclays Group
76,338
140,710
 
20,640
24,770
446
3,264
 
15,852
26,983
 
41,771
350,774
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at 30.06.22
 
 
 
 
 
 
 
 
 
 
 
 
 
Barclays UK
6,613
53,958
 
253
—
—
76
 
236
—
 
11,047
72,183
Corporate and Investment Bank
40,055
71,737
 
18,739
22,099
440
3,357
 
17,466
28,423
 
25,296
227,612
Consumer, Cards and Payments
25,516
3,643
 
256
34
—
64
 
28
195
 
6,424
36,160
Barclays International
65,571
75,380
 
18,995
22,133
440
3,421
 
17,494
28,618
 
31,720
263,772
Head Office
3,488
6,069
 
—
—
—
—
 
—
—
 
(996)
8,561
Barclays Group
75,672
135,407
 
19,248
22,133
440
3,497
 
17,730
28,618
 
41,771
344,516
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at 31.12.21
 
 
 
 
 
 
 
 
 
 
 
 
 
Barclays UK
7,195
53,408
 
426
—
—
138
 
100
—
 
11,022
72,289
Corporate and Investment Bank
29,420
64,416
 
15,223
19,238
105
2,289
 
17,306
27,308
 
25,359
200,664
Consumer, Cards and Payments
20,770
2,749
 
215
18
—
21
 
—
57
 
6,391
30,221
Barclays International
50,190
67,165
 
15,438
19,256
105
2,310
 
17,306
27,365
 
31,750
230,885
Head Office
4,733
7,254
 
—
—
—
—
 
—
—
 
(1,025)
10,962
Barclays Group
62,118
127,827
 
15,864
19,256
105
2,448
 
17,406
27,365
 
41,747
314,136
 
 
Movement analysis of RWAs
Credit risk
Counterparty credit risk
Market risk
Operational risk
Total RWAs
 
£m
£m
£m
£m
£m
Opening RWAs (as at 31.12.21)
189,945
37,673
44,771
41,747
314,136
Book size
10,661
2,504
(4,509)
24
8,680
Acquisitions and disposals
(1,081)
—
—
—
(1,081)
Book quality
(2,774)
944
—
—
(1,830)
Model updates
—
—
—
—
—
Methodology and policy
4,523
3,353
—
—
7,876
Foreign exchange movements1
15,774
4,646
2,573
—
22,993
Total RWA movements
27,103
11,447
(1,936)
24
36,638
Closing RWAs (as at 30.09.22)
217,048
49,120
42,835
41,771
350,774
 
 
1
Foreign exchange movements does not include foreign exchange for modelled market risk or operational risk.
 
 
Overall RWAs increased £36.6bn to £350.8bn (December 2021: £314.1bn)
 
 
 
Credit risk RWAs increased £27.1bn:
 
 
 
●
A £10.7bn increase in book size primarily driven by an increase in lending activities across CIB, CC&P and growth in mortgages within Barclays UK
●
A £1.1bn decrease in acquisitions and disposals primarily driven by the disposal of Barclays' equity stake in Absa, offset by GAP portfolio acquisition
●
A £2.7bn decrease in book quality primarily driven by the benefit in mortgages from an increase in the House Price Index (HPI)
●
A £4.5bn increase in methodology and policy primarily as a result of regulatory changes relating to implementation of IRB roadmap changes, partially offset by the reversal of the software intangibles benefit
●
A £15.8bn increase in FX primarily due to appreciation of period end USD against GBP
 
 
Counterparty Credit risk RWAs increased £11.4bn:
 
 
 
●
A £2.5bn increase in book size primarily due to an increase in trading activities within SFTs and derivatives
●
A £3.4bn increase in methodology and policy as a result of regulatory changes relating to the introduction of SA-CCR
●
A £4.6bn increase in FX primarily due to appreciation of period end USD against GBP
 
 
Market risk RWAs decreased £1.9bn:
 
 
 
●
A £4.5bn decrease in book size primarily driven by a £4.7bn decrease in Stressed Value at Risk (SVaR) model adjustment as a result of changes in portfolio composition and a £1.4bn reduction in Structural FX, partially offset by a £1.6bn increase due to client and trading activities
●
A £2.6bn increase in FX primarily due to appreciation of period end USD against GBP
 
 
 
 
 
Restated1
Leverage ratios2,3
As at 30.09.22
As at 30.06.22
As at 31.12.21
£m
£m
£m
Average UK leverage ratio
4.8%
4.7%
4.9%
Average T1 capital
60,651
57,689
59,739
Average UK leverage exposure
1,259,648
1,233,537
1,229,041
 
 
 
 
UK leverage ratio
5.0%
5.1%
5.2%
 
 
 
 
CET1 capital
48,574
46,691
47,327
AT1 capital
13,210
12,297
12,179
T1 capital
61,784
58,988
59,506
 
 
 
 
UK leverage exposure
1,232,105
1,151,214
1,137,904
 
 
 
 
UK leverage exposure
 
 
 
Accounting assets
 
 
 
Derivative financial instruments
416,908
344,855
262,572
Derivative cash collateral
90,948
66,909
58,177
Securities financing transactions (SFTs)
224,978
193,682
170,853
Loans and advances and other assets
994,065
983,784
892,683
Total IFRS assets
1,726,899
1,589,230
1,384,285
 
 
 
 
Regulatory consolidation adjustments
(6,598)
(3,546)
(3,665)
 
 
 
 
Derivatives adjustments
 
 
 
Derivatives netting
(347,999)
(288,727)
(236,881)
Adjustments to collateral
(76,083)
(53,328)
(50,929)
Net written credit protection
26,838
28,102
15,509
Potential future exposure (PFE) on derivatives
84,597
85,469
137,291
Total derivatives adjustments
(312,647)
(228,484)
(135,010)
 
 
 
 
SFTs adjustments
30,477
29,784
24,544
 
 
 
 
Regulatory deductions and other adjustments
(21,582)
(22,758)
(20,219)
 
 
 
 
Weighted off-balance sheet commitments
135,222
127,400
115,047
 
 
 
 
Qualifying central bank claims
(267,792)
(294,477)
(210,134)
 
 
 
 
Settlement netting
(51,874)
(45,935)
(16,944)
 
 
 
 
UK leverage exposure
1,232,105
1,151,214
1,137,904
 
 
1
Capital and leverage metrics as at 31 December 2021 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for further details.
2
Capital and leverage measures are calculated applying the transitional arrangements of the CRR as amended by CRR II.
3
Fully loaded average UK leverage ratio was 4.8%, with £59.9bn of T1 capital and £1,258.9bn of leverage exposure. Fully loaded UK leverage ratio was 5.0%, with £61.0bn of T1 capital and £1,231.3bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements of the CRR as amended by CRR II.
 
 
The UK leverage ratio decreased to 5.0% (December 2021: 5.2%) primarily due to a £94.2bn increase in the leverage exposure, partially offset by a £2.3bn increase in Tier 1 Capital. The UK leverage exposure increased to £1,232.1bn (December 2021: £1,137.9bn) largely due to the following movements:
 
 
 
●
£60.1bn increase in SFTs primarily driven by client activity in CIB
●
£50.8bn increase in derivative financial instruments post additional regulatory netting and adjustments for cash collateral primarily driven by client and trading activity in CIB and the application of a 1.4 multiplier introduced under SA-CCR
●
£42.7bn increase in loans and advances and other assets (excluding cash at central banks and settlement balances which are subject to regulatory exemptions) primarily due to increased lending
●
£11.3bn increase in net written credit protection largely due to the inclusion of credit default swap options from 1 January 2022
●
£52.7bn decrease in PFE on derivatives largely driven by increased netting eligibility due to the introduction of SA-CCR
●
£39.2bn decrease in cash at central banks net of the qualifying central bank claims exemption primarily due to the matching of allowable liabilities rather than deposits introduced under the UK leverage framework review and an increase in eligible Euro denominated assets and liabilities.
 
 
The average UK leverage ratio decreased to 4.8% (December 2021: 4.9%) primarily due to a £30.6bn increase in average leverage exposure partially offset by a £0.9bn increase in average T1 capital. The increase in average UK leverage exposure was due to the movements broadly in line with UK Leverage exposure that were in turn driven by increased client activity during the year and the regulatory changes that came into effect from 1 January 2022 under UK leverage ratio framework.
 
 
 
MREL
 
 
 
 
 
 
 
MREL requirements including buffers1,2,3,4
Total requirement (£m) based on
 
Requirement as a percentage of:
 
 
 
Restated1
 
 
 
Restated1
 
As at 30.09.22
As at 30.06.22
As at 31.12.21
 
As at 30.09.22
As at 30.06.22
As at 31.12.21
Requirement based on RWAs (minimum requirement)
99,596
98,096
77,302
 
28.4%
28.5%
24.6%
Requirement based on UK leverage exposure4
97,243
91,532
93,975
 
7.9%
8.0%
6.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restated1
Own funds and eligible liabilities1,3
 
 
 
 
As at 30.09.22
As at 30.06.22
As at 31.12.21
 
 
 
 
 
£m
£m
£m
CET1 capital
 
 
 
 
48,574
46,691
47,327
AT1 capital instruments and related share premium accounts5
 
 
 
 
13,210
12,297
12,179
T2 capital instruments and related share premium accounts5
 
 
 
 
8,364
8,355
8,626
Eligible liabilities
 
 
 
 
41,744
39,137
39,889
Total Barclays PLC (the Parent company) own funds and eligible liabilities
 
 
111,892
106,480
108,021
 
 
 
 
 
 
 
 
Total RWAs
 
 
 
 
350,774
344,516
314,136
Total UK leverage exposure4
 
 
 
 
1,232,105
1,151,214
1,356,191
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restated1
Own funds and eligible liabilities ratios as a percentage of:1
 
 
 
 
As at 30.09.22
As at 30.06.22
As at 31.12.21
Total RWAs
 
 
 
 
31.9%
30.9%
34.4%
Total UK leverage exposure4
 
 
 
 
9.1%
9.2%
8.0%
 
 
 
 
 
 
 
 
 
 
As at 30 September 2022, Barclays PLC (the Parent company) held £111.9bn of own funds and eligible liabilities equating to 31.9% of RWAs. This was in excess of the Group's MREL requirement, excluding the PRA buffer, to hold £99.6bn of own funds and eligible liabilities equating to 28.4% of RWAs. The Group remains above its MREL regulatory requirement including the PRA buffer.
 
 
 
1
Capital and leverage metrics as at 31 December 2021 have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for further details.
2
Minimum requirement excludes the confidential institution-specific PRA buffer.
3
CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II including IFRS 9 transitional arrangements.
4
As at 31 December 2021, MREL requirements were on a CRR leverage basis which, from 1 January 2022, was no longer applicable for UK banks.
5
Includes other AT1 capital regulatory adjustments and deductions of £60m (December 2021: £80m), and other T2 credit risk adjustments and deductions of £160m (December 2021: £87m).
 
 
Condensed Consolidated Financial Statements
 
 
Condensed consolidated income statement (unaudited)
 
 
Restated1
 
Nine months ended 30.09.22
Nine months ended 30.09.21
 
£m
£m
Total income
19,155
16,780
Credit impairment (charges)/releases
(722)
622
Net operating income
18,433
17,402
Operating expenses excluding litigation and conduct
(11,209)
(10,578)
Litigation and conduct
(1,518)
(305)
Operating expenses
(12,727)
(10,883)
Other net (expenses)/income
(4)
247
Profit before tax
5,702
6,766
Tax charge
(1,072)
(1,034)
Profit after tax
4,630
5,732
 
 
 
Attributable to:
 
 
Equity holders of the parent
3,987
5,126
Other equity instrument holders
620
586
Total equity holders of the parent
4,607
5,712
Non-controlling interests
23
20
Profit after tax
4,630
5,732
 
 
 
Earnings per share
p
p
Basic earnings per ordinary share
24.2
30.0
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 1 for more information.
 
 
Condensed consolidated balance sheet (unaudited)
 
 
Restated1
 
As at 30.09.22
As at 31.12.21
Assets
£m
£m
Cash and balances at central banks
257,070
238,574
Cash collateral and settlement balances
167,831
92,542
Loans and advances at amortised cost
413,697
361,451
Reverse repurchase agreements and other similar secured lending
1,286
3,227
Trading portfolio assets
126,374
147,035
Financial assets at fair value through the income statement
247,770
191,972
Derivative financial instruments
416,908
262,572
Financial assets at fair value through other comprehensive income
65,655
61,753
Investments in associates and joint ventures
916
999
Goodwill and intangible assets
8,371
8,061
Current tax assets
449
261
Deferred tax assets
7,272
4,619
Other assets
13,300
11,219
Total assets
1,726,899
1,384,285
 
 
 
Liabilities
 
 
Deposits at amortised cost
574,386
519,433
Cash collateral and settlement balances
145,086
79,371
Repurchase agreements and other similar secured borrowing
27,644
28,352
Debt securities in issue
119,722
98,867
Subordinated Liabilities
12,321
12,759
Trading portfolio liabilities
87,323
54,169
Financial liabilities designated at fair value
280,744
250,960
Derivative financial instruments
394,795
256,883
Current tax liabilities
533
689
Deferred tax liabilities
6
37
Other liabilities
16,336
12,724
Total liabilities
1,658,896
1,314,244
 
 
 
Equity
 
 
Called up share capital and share premium
4,358
4,536
Other reserves
(2,923)
1,770
Retained earnings
52,329
50,487
Shareholders' equity attributable to ordinary shareholders of the parent
53,764
56,793
Other equity instruments
13,270
12,259
Total equity excluding non-controlling interests
67,034
69,052
Non-controlling interests
969
989
Total equity
68,003
70,041
 
 
 
Total liabilities and equity
1,726,899
1,384,285
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Condensed consolidated statement of changes in equity (unaudited)
 
Called up share capital and share premium
Other equity instruments
Other reserves
Restated1
Retained earnings
Restated1
Total
Non-controlling interests
Restated1
Total equity
Nine months ended 30.09.22
£m
£m
£m
£m
£m
£m
£m
Balance as at 1 January 2022
4,536
12,259
1,770
50,487
69,052
989
70,041
Profit after tax
—
620
—
3,987
4,607
23
4,630
Currency translation movements
—
—
3,433
—
3,433
—
3,433
Fair value through other comprehensive income reserve
—
—
(1,167)
—
(1,167)
—
(1,167)
Cash flow hedges
—
—
(8,596)
—
(8,596)
—
(8,596)
Retirement benefit remeasurements
—
—
—
325
325
—
325
Own credit
—
—
1,526
—
1,526
—
1,526
Total comprehensive income for the period
—
620
(4,804)
4,312
128
23
151
Employee share schemes and hedging thereof
46
—
—
383
429
—
429
Issue and redemption of other equity instruments
—
1,032
—
20
1,052
(20)
1,032
Other equity instruments coupon paid
—
(620)
—
—
(620)
—
(620)
Disposal of ABSA holding
—
—
(84)
84
—
—
—
Vesting of employee share schemes
—
—
7
(473)
(466)
—
(466)
Dividends paid
—
—
—
(1,028)
(1,028)
(23)
(1,051)
Repurchase of shares
(224)
—
224
(1,491)
(1,491)
—
(1,491)
Own credit realisation
—
—
(36)
36
—
—
—
Other movements
—
(21)
—
(1)
(22)
—
(22)
Balance as at 30 September 2022
4,358
13,270
(2,923)
52,329
67,034
969
68,003
 
 
Three months ended 30.09.22
 
 
 
 
 
 
 
Balance as at 1 July 2022
4,508
12,357
(218)
52,980
69,627
969
70,596
Profit after tax
—
206
—
1,512
1,718
2
1,720
Currency translation movements
—
—
1,730
—
1,730
—
1,730
Fair value through other comprehensive income reserve
—
—
(408)
—
(408)
—
(408)
Cash flow hedges
—
—
(4,778)
—
(4,778)
—
(4,778)
Retirement benefit remeasurements
—
—
—
(765)
(765)
—
(765)
Own credit
—
—
671
—
671
—
671
Total comprehensive income for the period
—
206
(2,785)
747
(1,832)
2
(1,830)
Employee share schemes and hedging thereof
13
—
—
(34)
(21)
—
(21)
Issue and redemption of other equity instruments
—
917
—
(5)
912
—
912
Other equity instruments coupon paid
—
(206)
—
—
(206)
—
(206)
Disposal of ABSA holding
—
—
(45)
45
—
—
—
Vesting of employee share schemes
—
—
—
(9)
(9)
—
(9)
Dividends paid
—
—
—
(364)
(364)
(2)
(366)
Repurchase of shares
(163)
—
163
(1,059)
(1,059)
—
(1,059)
Own credit realisation
—
—
(36)
36
—
—
—
Other movements
—
(4)
(2)
(8)
(14)
—
(14)
Balance as at 30 September 2022
4,358
13,270
(2,923)
52,329
67,034
969
68,003
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
 
As at 30.09.22
As at 31.12.21
Other reserves
£m
£m
Currency translation reserve
6,173
2,740
Fair value through other comprehensive income reserve
(1,534)
(283)
Cash flow hedging reserve
(9,449)
(853)
Own credit reserve
530
(960)
Other reserves and treasury shares
1,357
1,126
Total
(2,923)
1,770
 
 
Over-issuance of US securities under the Barclays Bank PLC US Shelf
 
 
 
Restatement of financial statements
 
 
 
A proportion of the costs associated with the rights of rescission of certain investors are attributable to BPLC’s financial statements for the year ended 31 December 2021. The comparatives in the quarterly financial information for 2021 and for the nine months ended 30 September 2021, including those in the consolidated income statement, the consolidated balance sheet and the consolidated statement of changes in equity included in this document, have been restated to reflect a provision in respect of the impact of the Over-issuance of Securities.
 
 
 
The table below reflects each of the consolidated financial statement line items that were affected by the restatement:
 
 
 
Impact on the consolidated income statement
As reported
 
Restatement
 
As restated
Nine months ended 30.09.21
£m
 
£m
 
£m
Litigation and conduct
(131)
 
(174)
 
(305)
Operating expenses
(10,709)
 
(174)
 
(10,883)
Profit before tax
6,940
 
(174)
 
6,766
Taxation
(1,076)
 
42
 
(1,034)
Profit after tax
5,864
 
(132)
 
5,732
 
 
 
 
 
 
Year ended 31.12.21
£m
 
£m
 
£m
Litigation and conduct
(177)
 
(220)
 
(397)
Operating expenses
(14,439)
 
(220)
 
(14,659)
Profit before tax
8,414
 
(220)
 
8,194
Taxation
(1,188)
 
50
 
(1,138)
Profit after tax
7,226
 
(170)
 
7,056
 
 
 
 
 
 
Impact on the consolidated balance sheet
 
 
 
 
 
As at 31.12.21
£m
 
£m
 
£m
Current tax liabilities
739
 
(50)
 
689
Provisions
1,688
 
220
 
1,908
Total liabilities
1,314,074
 
170
 
1,314,244
 
 
 
 
 
 
Retained earnings
50,657
 
(170)
 
50,487
Total equity
70,211
 
(170)
 
70,041
 
 
This omission in the financial statements has resulted in the restatement of the prior period Capital comparatives with the following impact:
 
 
 
●
CET1 capital decreased £0.2bn from £47.5bn to £47.3bn. Both transitional and fully loaded CET1 ratios remained unchanged at 15.1% and 14.7% respectively. The transitional T1 ratio moved from 19.2% to 19.1% and Total transitional capital ratio moved from 22.3% to 22.2%
●
Leverage exposure increased by £1.9bn with the UK leverage ratio decreasing from 5.3% to 5.2% and the average UK leverage ratio remaining unchanged at 4.9%
●
Total own funds and eligible liabilities decreased £0.2bn to £108bn, which was in excess of a restated requirement to hold £94bn of own funds and eligible liabilities
 
 
Update on related litigation and conduct matters
 
 
 
Over-issuance of Securities under the Barclays Bank PLC US Shelf
 
 
 
In September 2022, the SEC announced the resolution of its investigation of BPLC and BBPLC relating to the Over-issuance of Securities by BBPLC under certain of its US shelf registration statements. Pursuant to the terms of the resolution, BPLC and BBPLC will pay a combined penalty of $200m (£165m1), without admitting or denying the SEC’s findings. The SEC has confirmed that the independent rescission offer made by BBPLC to holders of the relevant over-issued securities (which offer commenced on 1 August 2022 and expired on 12 September 2022) satisfies its requirements for disgorgement and related prejudgment interest.
 
 
 
The Group is engaged with, and responding to inquiries and requests for information from, various other regulators who may seek to impose fines, penalties and/or other sanctions as a result of this matter. Furthermore, BBPLC and/or its affiliates may incur costs and liabilities in relation to private civil claims which have been filed and may face other potential private civil claims, class actions or other enforcement actions in relation to this matter. For example, in September 2022, a purported class action claim was filed in the US District Court in Manhattan by two Florida pension plans seeking to hold BPLC and former and current executives responsible for declines in the prices of its American depositary receipts, which plaintiffs claim occurred as a result of alleged misstatements and omissions in its public disclosures.
 
 
 
Any liabilities, claims or actions in connection with the Over-issuance of Securities under BBPLC's US shelf registration statements could have an adverse effect on the Group’s business, financial condition, results of operations and reputation as a frequent issuer in the securities markets.
 
 
 
1
Exchange rate GBP/USD 1.22 as at 30 June 2022.
 
 
Appendix: Non-IFRS Performance Measures
 
 
The Group’s management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management.
 
 
 
However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well.
 
 
 
Non-IFRS performance measures glossary
 
 
 
Measure
Definition
Loan: deposit ratio
Loans and advances at amortised cost divided by deposits at amortised cost.
Period end allocated tangible equity
Allocated tangible equity is calculated as 13.5% (2021: 13.5%) 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.
Average tangible shareholders’ equity
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.
Average allocated tangible equity
Calculated as the average of the previous month’s period end allocated tangible equity and the current month’s period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period.
Return on average tangible shareholders’ equity
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 equity instruments adjusted for the deduction of intangible assets and goodwill. The components of the calculation have been included on pages 54 to 56.
Return on average allocated tangible equity
Annualised profit after tax attributable to ordinary equity holders of the parent, as a proportion of average allocated tangible equity. The components of the calculation have been included on pages 1 to 57.
Cost: income ratio
Total operating expenses divided by total income.
Loan loss rate
Quoted in basis points and represents total annualised impairment charges divided by gross loans and advances held at amortised cost at the balance sheet date.
Net interest margin
Annualised net interest income divided by the sum of average customer assets. The components of the calculation have been included on page 25.
Tangible net asset value per share
Calculated by dividing shareholders’ equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 58.
 
 
Returns
 
 
 
Return on average tangible equity is calculated as profit after tax attributable to ordinary equity holders of the parent as a proportion of average tangible equity, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 13.5% (2021: 13.5%) 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 average allocated tangible equity represents the difference between the Group’s average tangible shareholders’ equity and the amounts allocated to businesses.
 
 
 
 
Profit/(loss) attributable to ordinary equity holders of the parent
 
Average tangible equity
 
Return on average tangible equity
Nine months ended 30.09.22
£m
 
£bn
 
%
Barclays UK
1,403
 
10.0
 
18.7
    Corporate and Investment Bank
2,910
 
32.5
 
11.9
    Consumer, Cards and Payments
309
 
4.7
 
8.9
Barclays International
3,219
 
37.2
 
11.5
Head Office
(635)
 
1.6
 
n/m
Barclays Group
3,987
 
48.8
 
10.9
 
 
 
 
 
 
Nine months ended 30.09.211
 
 
 
 
 
Barclays UK
1,336
 
9.9
 
17.9
    Corporate and Investment Bank
3,337
 
28.2
 
15.8
    Consumer, Cards and Payments
492
 
4.0
 
16.2
Barclays International
3,829
 
32.2
 
15.9
Head Office
(39)
 
5.0
 
n/m
Barclays Group
5,126
 
47.1
 
14.5
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
 
 
 
 
 
 
 
 
Nine months ended 30.09.22
 
Barclays UK
Corporate and Investment Bank
Consumer, Cards and Payments
Barclays International
Head Office
Barclays Group
Return on average tangible shareholders' equity
£m
£m
£m
£m
£m
£m
Attributable profit/(loss)
1,403
2,910
309
3,219
(635)
3,987
 
 
 
 
 
 
 
 
£bn
£bn
£bn
£bn
£bn
£bn
Average shareholders' equity
13.6
32.5
5.6
38.1
5.2
56.9
Average goodwill and intangibles
(3.6)
—
(0.9)
(0.9)
(3.6)
(8.1)
Average tangible shareholders' equity
10.0
32.5
4.7
37.2
1.6
48.8
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
18.7%
11.9%
8.9%
11.5%
n/m
10.9%
 
 
 
Nine months ended 30.09.211
 
Barclays UK
Corporate and Investment Bank
Consumer, Cards and Payments
Barclays International
Head Office
Barclays Group
Return on average tangible shareholders' equity
£m
£m
£m
£m
£m
£m
Attributable profit/(loss)
1,336
3,337
492
3,829
(39)
5,126
 
 
 
 
 
 
 
 
£bn
£bn
£bn
£bn
£bn
£bn
Average shareholders' equity
13.5
28.2
4.7
32.9
8.7
55.1
Average goodwill and intangibles
(3.6)
—
(0.7)
(0.7)
(3.7)
(8.0)
Average tangible shareholders' equity
9.9
28.2
4.0
32.2
5.0
47.1
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
17.9%
15.8%
16.2%
15.9%
n/m
14.5%
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
Q322
Q222
Q122
 
Q4211
Q3211
Q2211
Q121
 
Q420
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Attributable profit
1,512
1,071
1,404
 
1,079
1,374
2,048
1,704
 
220
 
 
 
 
 
 
 
 
 
 
 
 
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Average shareholders' equity
56.8
57.1
56.9
 
56.1
56.5
54.4
54.4
 
55.7
Average goodwill and intangibles
(8.2)
(8.1)
(8.1)
 
(8.1)
(8.2)
(7.9)
(7.9)
 
(8.1)
Average tangible shareholders' equity
48.6
49.0
48.8
 
48.0
48.3
46.5
46.5
 
47.6
 
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
12.5%
8.7%
11.5%
 
9.0%
11.4%
17.6%
14.7%
 
1.8%
 
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
Q322
Q222
Q122
 
Q421
Q321
Q221
Q121
 
Q420
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Attributable profit
549
458
396
 
420
317
721
298
 
160
 
 
 
 
 
 
 
 
 
 
 
 
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Average allocated equity
13.5
13.6
13.7
 
13.6
13.6
13.5
13.5
 
13.4
Average goodwill and intangibles
(3.6)
(3.6)
(3.6)
 
(3.6)
(3.6)
(3.6)
(3.6)
 
(3.6)
Average allocated tangible equity
9.9
10.0
10.1
 
10.0
10.0
9.9
9.9
 
9.8
 
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
22.1%
18.4%
15.6%
 
16.8%
12.7%
29.1%
12.0%
 
6.5%
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Barclays International
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
Q322
Q222
Q122
 
Q4211
Q3211
Q2211
Q121
 
Q420
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Attributable profit
1,136
783
1,300
 
818
1,191
1,207
1,431
 
441
 
 
 
 
 
 
 
 
 
 
 
 
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Average allocated equity
40.1
38.2
36.0
 
33.8
32.7
33.0
32.8
 
31.1
Average goodwill and intangibles
(1.0)
(0.9)
(0.9)
 
(0.9)
(0.9)
(0.6)
(0.5)
 
(0.6)
Average allocated tangible equity
39.1
37.3
35.1
 
32.9
31.8
32.4
32.3
 
30.5
 
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.6%
8.4%
14.8%
 
9.9%
14.9%
14.9%
17.7%
 
5.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Investment Bank
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
Q322
Q222
Q122
 
Q4211
Q3211
Q2211
Q121
 
Q420
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Attributable profit
1,015
579
1,316
 
695
1,085
989
1,263
 
413
 
 
 
 
 
 
 
 
 
 
 
 
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Average allocated equity
34.0
32.7
30.8
 
28.7
27.8
28.4
28.2
 
26.3
Average goodwill and intangibles
—
—
—
 
—
—
—
—
 
—
Average allocated tangible equity
34.0
32.7
30.8
 
28.7
27.8
28.4
28.2
 
26.3
 
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
11.9%
7.1%
17.1%
 
9.7%
15.6%
14.0%
17.9%
 
6.3%
 
 
Consumer, Cards and Payments
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
Q322
Q222
Q122
 
Q421
Q321
Q221
Q121
 
Q420
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Attributable profit/(loss)
121
204
(16)
 
123
106
218
168
 
28
 
 
 
 
 
 
 
 
 
 
 
 
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Average allocated equity
6.1
5.5
5.2
 
5.1
4.9
4.6
4.6
 
4.8
Average goodwill and intangibles
(1.0)
(0.9)
(0.9)
 
(0.9)
(0.9)
(0.6)
(0.5)
 
(0.6)
Average allocated tangible equity
5.1
4.6
4.3
 
4.2
4.0
4.0
4.1
 
4.2
 
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
9.5%
17.8%
(1.5)%
 
11.7%
10.5%
21.8%
16.5%
 
2.7%
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Tangible net asset value per share
As at 30.09.22
Restated1
As at 31.12.21
Restated1
As at 30.09.21
 
£m
£m
£m
Total equity excluding non-controlling interests
67,034
69,052
68,565
Other equity instruments
(13,270)
(12,259)
(12,252)
Goodwill and intangibles
(8,371)
(8,061)
(8,147)
Tangible shareholders' equity attributable to ordinary shareholders of the parent
45,393
48,732
48,166
 
 
 
 
 
m
m
m
Shares in issue
15,888
16,752
16,851
 
 
 
 
 
p
p
p
Tangible net asset value per share
286
291
286
 
 
1
2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
Notable Items
 
 
 
 
 
Nine months ended 30.09.22
 
Three months ended 30.09.22
£m
Profit before tax
Attributable profit
 
Profit before tax
Attributable profit
Statutory
5,702
3,987
 
1,969
1,512
Net impact from the Over-issuance of Securities
(674)
(552)
 
37
29
Customer remediation costs on legacy loan portfolio
(282)
(228)
 
(101)
(81)
Settlements in principle in respect of industry-wide devices investigations by SEC and CFTC
(165)
(165)
 
—
—
Other litigation and conduct
(105)
(98)
 
(63)
(60)
Re-measurement of UK DTAs
—
(346)
 
—
—
Excluding the impact of notable items
6,928
5,376
 
2,096
1,624
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended 30.09.21
 
Three months ended 30.09.21
£m
Profit before tax
Attributable profit
 
Profit before tax
Attributable profit
Statutory1
6,766
5,126
 
1,864
1,374
Net impact from the Over-issuance of Securities
(174)
(132)
 
(97)
(73)
Structural cost action - June 2021 real estate review
(266)
(203)
 
—
—
Other litigation and conduct
(131)
(107)
 
(32)
(21)
Re-measurement of UK DTAs
—
402
 
—
10
Excluding the impact of notable items
7,337
5,166
 
1,993
1,458
 
 
 
 
 
 
 
 
1
2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Supplementary Information on page 51 for more information.
 
 
The Group’s management believes that the Non-GAAP financial measures excluding notable items, included in the table above, provide valuable information to enable users of the financial statements to assess the performance of the Group. The notable items are separately identified within the Group’s results disclosures which, when excluded from Barclays’ statutory financials, provide an underlying profit and loss performance of the Group and enables consistent comparison of performance from one period to another.
 
 
 
These non-GAAP financial measures excluding notable items are included as a reference point only and are not incorporated within any of the key financial metrics used in our Group Targets, which are measured on a statutory basis.
 
 
Shareholder Information
 
 
 
 
 
% Change2
Exchange rates1
30.09.22
30.06.22
30.09.21
 
30.06.22
30.09.21
Period end - USD/GBP
1.12
1.22
1.35
 
(8)%
(17)%
YTD average - USD/GBP
1.26
1.30
1.39
 
(3)%
(9)%
3 month average - USD/GBP
1.18
1.26
1.38
 
(6)%
(14)%
Period end - EUR/GBP
1.14
1.16
1.16
 
(2)%
(2)%
YTD average - EUR/GBP
1.18
1.19
1.16
 
(1)%
2%
3 month average - EUR/GBP
1.17
1.18
1.17
 
(1)%
—
 
 
 
 
 
 
 
Share price data
 
 
 
 
 
 
Barclays PLC (p)
144.30
153.12
189.60
 
 
 
Barclays PLC number of shares (m)3
15,888
16,531
16,851
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For further information please contact
 
 
 
 
 
 
 
 
 
 
 
 
 
Investor relations
Media relations
Chris Manners +44 (0) 20 7773 2136
Tom Hoskin +44 (0) 20 7116 4755
 
 
 
 
 
 
 
 
 
 
 
 
 
 
More information on Barclays can be found on our website: home.barclays
 
 
 
 
 
 
 
 
 
 
 
Registered office
 
 
 
 
 
 
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839.
 
 
 
 
 
 
 
 
Registrar
 
 
 
 
 
 
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.
 
Tel: 0371 384 20554 from the UK or +44 121 415 7004 from overseas.
 
 
 
 
 
 
 
 
American Depositary Receipts (ADRs)
 
 
 
 
 
 
EQ Shareowner Services
P.O. Box 64504
St. Paul, MN 55164-0854
United States of America
shareowneronline.com/information/contact-us
 
 
 
 
 
Toll Free Number: +1 800-990-1135
 
 
 
 
 
 
Outside the US +1 651-453-2128
 
 
 
 
 
 
 
 
 
 
 
 
 
Delivery of ADR certificates and overnight mail
 
 
 
 
 
 
EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100, USA.
 
 
1
The average rates shown above are derived from daily spot rates during the year.
2
The change is the impact to GBP reported information.
3
The number of shares of 15,888m as at 30 September is different from the 15,865m quoted in the 3 October 2022 announcement because the share buyback transactions executed on 29 and 30 September 2022 did not settle until 1 October 2022 and 3 October 2022 respectively.
4
Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public holidays in England and Wales.