|
BARCLAYS
BANK PLC
|
|
(Registrant)
|
|
By: /s/
Garth Wright
--------------------------------
|
|
Garth
Wright
|
|
Assistant
Secretary
|
|
a
|
Basis:
Ranking by revolving balances. Sources: Bankenfachverband,
Statistisches Bundesamt, own calculations
|
a
|
Source:
Coalition FY19 vs FY18 Preliminary Competitor Analysis of total
industry revenue pool
|
b
|
Source:
Dealogic
|
a
|
Source:
Coalition FY19 vs FY18 Preliminary Competitor Analysis. Market
share represents Barclays’ share of the total industry
revenue pool
|
b
|
Source:
Dealogic
|
c
|
Source:
UK Finance
|
d
|
Source:
Nilson Report #1153
|
e
|
Source:
Nilson Report #1161
|
|
|||
The ERMF defines eight Principal Risks
|
How risks are managed
|
||
Financial Principal Risks
|
Credit Risk
|
The
risk of loss to the Barclays Bank Group from the failure of
clients, customers or counterparties, including sovereigns, to
fully honour their obligations to Barclays Bank Group, including
the whole and timely payment of principal, interest, collateral and
other receivables.
|
Credit
risk teams identify, evaluate, sanction, limit and monitor various
forms of credit exposure, individually and in
aggregate.
|
Market Risk
|
The
risk of loss arising from potential adverse changes in the value of
the Barclays Bank Group’s assets and liabilities from
fluctuation in market variables including, but not limited to,
interest rates, foreign exchange, equity prices, commodity prices,
credit spreads, implied volatilities and asset
correlations.
|
A range
of complementary approaches to identify and evaluate market risk
are used to capture exposure to market risk. These are measured,
limited and monitored by market risk specialists.
|
|
Treasury and Capital Risk
|
Liquidity risk:
The
risk that the Barclays Bank Group is unable to meet its contractual
or contingent obligations or that it does not have the appropriate
amount, tenor and composition of funding and liquidity to support
its assets.
Capital risk:
The
risk that the Barclays Bank Group has an insufficient level or
composition of capital to support its normal business activities
and to meet its regulatory capital requirements under normal
operating environments or stressed conditions (both actual and as
defined for internal planning or regulatory testing purposes). This
includes the risk from the Barclays Bank Group’s pension
plans.
Interest rate risk in the Banking Book:
The
risk that the Barclays Bank Group is exposed to capital or income
volatility because of a mismatch between the interest rate
exposures of its (non-traded) assets and liabilities.
|
Treasury
and capital risk is identified and managed by specialists in
Capital Planning, Liquidity, Asset and Liability Management and
Market risk. A range of approaches are used appropriate to the
risk, such as; limits; plan monitoring; internal and external
stress testing.
|
|
Non-Financial Principal Risks
|
Operational Risk
|
The
risk of loss to the Barclays Bank Group from inadequate or failed
processes or systems, human factors or due to external events (for
example fraud) where the root cause is not due to credit or market
risks.
|
Operational
risk comprises the following risks; data management and
information, execution risk, financial reporting, fraud, payments
processing, people, physical security, premises, prudential
regulation, supplier, tax, technology and transaction
operations.
It is
not always cost effective or possible to attempt to eliminate all
operational risks.
Operational
risk is managed across the businesses and functions through an
internal control environment with a view to limiting the risk to
acceptable residual levels.
|
Model Risk
|
The
risk of the potential adverse consequences from financial
assessments or decisions based on incorrect or misused model
outputs and reports.
|
Models
are independently validated and approved prior to implementation
and their performance is monitored on a continual
basis.
|
|
Conduct Risk
|
The
risk of detriment to customers, clients, market integrity,
effective competition or the Barclays Bank Group from the
inappropriate supply of financial services, including instances of
wilful or negligent misconduct.
|
The
Compliance function sets the minimum standards required, and
provides oversight to monitor that these risks are effectively
managed and escalated where appropriate.
|
|
Reputation Risk
|
The risk that an action, transaction, investment or event, decision
or business relationship will reduce trust in the Barclays Bank
Group’s integrity and/or competence.
|
Reputation risk is managed by embedding our purpose and values and
maintaining a controlled culture within the Barclays Bank Group,
with the objective of acting with integrity, enabling strong and
trusted relationships with customers and clients, colleagues and
broader society.
|
|
Legal Risk
|
The
risk of loss or imposition of penalties, damages or fines from the
failure of the Barclays Bank Group to meet its legal obligations
including regulatory or contractual requirements.
|
The
Legal function supports colleagues in identifying and limiting
legal risks.
|
Income Statement
|
|
|
|
Barclays Bank Group results
|
2019
|
2018
|
2017
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Total income
|
14,151
|
13,600
|
13,730
|
Credit impairment charges
|
(1,202)
|
(643)
|
(1,553)
|
Net operating income
|
12,949
|
12,957
|
12,177
|
Operating expenses
|
(9,718)
|
(9,893)
|
(10,230)
|
GMP chargea
|
-
|
(140)
|
-
|
Litigation and conduct
|
(264)
|
(1,706)
|
(448)
|
Total operating expenses
|
(9,982)
|
(11,739)
|
(10,678)
|
Other net income
|
145
|
68
|
259
|
Profit before tax
|
3,112
|
1,286
|
1,758
|
Tax chargeb
|
(332)
|
(229)
|
(1,352)
|
Profit after tax in respect of continuing operations
|
2,780
|
1,057
|
406
|
(Loss)/profit after tax in respect of discontinued
operationsc
|
-
|
(47)
|
(1,386)
|
Non-controlling interests in respect of continuing
operations
|
-
|
-
|
(4)
|
Non-controlling interests in respect of discontinued
operationsc
|
-
|
-
|
(140)
|
Other equity instrument holders
|
(660)
|
(647)
|
(639)
|
Attributable profit/(loss)
|
2,120
|
363
|
(1,763)
|
a
|
A
£140m charge for Guaranteed Minimum Pensions in relation to
the equalisation of obligations for members of the Barclays Bank
UKRF. There was no capital impact of this charge as at 31 December
2018, as the Barclays Bank UKRF remained in accounting
surplus.
|
b
|
From
2019, due to an IAS 12 update, the tax relief on payments in
relation to equity instruments has been recognised in the tax
charge of the income statement, whereas it was previously recorded
within retained earnings. Comparatives have been restated, reducing
the tax charge for FY18 and FY17 by £175m and £174m
respectively. Further detail can be found in Note 1.
|
c
|
Barclays
Bank PLC transferred its UK banking business on 1 April 2018 to
Barclays Bank UK PLC. Results relating to the UK banking business
for the three months ended 31 March 2018 and for the year ended 31
December 2017 have been reported as a discontinued operation. 2017
also included results relating to Barclays Africa Group Limited
(BAGL) for the five months ended 31 May 2017.
|
a
|
Data
Source: Coalition, FY19 Preliminary Competitor Analysis. Market
share represents Barclays share of the total industry Revenue Pool.
Analysis is based on Barclays internal business structure and
internal revenues.
|
b
|
Data
Source: Dealogic, for the period covering 1 January to 31 December
2019.
|
Balance Sheet Information
|
|
|
The
following assets and liabilities represent key balance sheet items
for Barclays Bank Group.
|
|
|
|
|
|
|
2019
|
2018
|
As at 31 December
|
£m
|
£m
|
Assets
|
|
|
Cash and balances at central banks
|
125,940
|
136,359
|
Loans and advances at amortised cost
|
141,636
|
136,959
|
Trading portfolio assets
|
113,337
|
104,038
|
Financial assets at fair value through the income
statement
|
129,470
|
145,250
|
Derivative financial instruments
|
229,641
|
222,683
|
Liabilities
|
|
|
Deposits at amortised cost
|
213,881
|
199,337
|
Financial liabilities designated at fair value
|
204,446
|
217,741
|
Derivative financial instruments
|
228,940
|
219,592
|
●
|
Cash
and balances at central banks decreased £10.4bn to
£125.9bn predominantly due to a reduction in cash at central
banks held as part of the liquidity pool
|
●
|
Loans
and advances increased £4.7bn to £141.6bn mainly due to
an increase in debt securities
|
●
|
Trading
portfolio assets increased £9.3bn to £113.3bn due to
increased trading activity, principally relating to the Equities
business
|
●
|
Financial
assets at fair value through the income statement decreased
£15.8bn to £129.5bn driven by a focus on
capital-efficient secured financing
|
●
|
Derivative
financial instrument assets and liabilities increased £7.0bn
to £229.6bn and £9.3bn to £228.9bn respectively
driven by a decrease in major interest rate curves, partially
offset by a decrease in foreign exchange volumes
|
●
|
Deposits
at amortised cost increased £14.5bn to £213.9bn due to
increased deposits within CIB including the broadening of the
business across Europe
|
●
|
Financial
liabilities designated at fair value decreased £13.3bn to
£204.4bn as a result of more capital-efficient secured lending
partially offset by increased issuances of equity linked
notes.
|
Other Metrics and
Capitala
|
|
|
|
|
|
|
|
Barclays Bank PLC is regulated by the Prudential Regulation
Authority (PRA) on a solo-consolidated basis. Barclays Bank PLC
solo-consolidated comprises Barclays Bank PLC plus certain
additional subsidiaries, subject to PRA approval. The disclosures
below provide key metrics for Barclays Bank PLC
solo-consolidated.
|
|||
|
|
|
|
|
2019
|
2018
|
2017
|
Common equity tier 1 (CET1) ratio
|
13.9%
|
13.5%
|
13.6%
|
Total risk weighted assets (RWAs)
|
£158.4bn
|
£173.2bn
|
£261.4bn
|
Capital Requirements Regulation (CRR) leverage ratio
|
3.9%
|
4.0%
|
4.5%
|
a
|
Capital,
RWAs and leverage are calculated applying the IFRS 9 transitional
arrangement of the Capital Requirement Regulation (CRR) as amended
by the Capital Requirements Regulation II (CRR II) applicable as at
the reporting date. For further information on the implementation
of CRR II see page 100.
|
●
|
the
likely consequences of any decision in the long term,
|
●
|
the
interests of the Company's employees,
|
●
|
the
need to foster the Company's business relationships with suppliers,
customers and others,
|
●
|
the
impact of the Company's operations on the community and the
environment
|
●
|
the
desirability of the Company maintaining a reputation for high
standards of business conduct, and
|
●
|
the
need to act fairly as between members of the Company.
|
(a)
|
the
financial statements, prepared in accordance with the applicable
set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
Company and the undertakings included in the consolidation taken as
a whole; and
|
(b)
|
the
management report, on pages 1 to 9, which is incorporated in the
Directors’ Report, includes a fair review of the development
and performance of the business and the position of the Company and
the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
|
i)
|
Business conditions, general economy and geopolitical
issues
|
●
|
In the
UK, the decision to leave the European Union (EU) may give rise to
further economic and political consequences including for
investment and market confidence in the UK and the remainder of EU.
See “(ii) Process of UK withdrawal from the EU” below
for further details.
|
●
|
A
significant proportion of the Barclays Bank Group’s portfolio
is located in the US, including a major credit card portfolio and a
range of corporate and investment banking exposures. The
possibility of significant continued changes in US policy in
certain sectors (including trade, healthcare and commodities), may
have an impact on the Barclays Bank Group’s associated
portfolios. Stress in the US economy, weakening GDP and the
associated exchange rate fluctuations, heightened trade tensions
(such as the current dispute between the US and China), an
unexpected rise in unemployment and/or an increase in interest
rates could lead to increased levels of impairment, resulting in a
negative impact on the Barclays Bank Group’s
profitability.
|
●
|
Global
GDP growth weakened in 2019, as elevated policy uncertainty weighed
on manufacturing activity and investment. As a result, a number of
central banks, most notably the Federal Reserve and European
Central Bank (ECB), pursued monetary easing. Growth is expected to
stabilise in 2020, but macroeconomic risks remain skewed to the
downside, while concerns around the efficacy of existing policy
tools to counter these risks persist. An escalation in geopolitical
tensions, increased use of protectionist measures or a disorderly
withdrawal from the EU may negatively impact the Barclays Bank
Group’s business in the affected regions.
|
●
|
In
China the pace of credit growth remains a concern, given the high
level of leverage and despite government and regulatory action. A
stronger than expected slowdown could result if authorities fail to
appropriately manage growth during the transition from
manufacturing towards services and the end of the investment and
credit-led boom. Deterioration in emerging markets could affect the
Barclays Bank Group if it results in higher impairment charges via
sovereign or counterparty defaults.
|
ii)
|
Process of UK withdrawal from the EU
|
●
|
Market
volatility, including in currencies and interest rates, might
increase which could have an impact on the value of the Barclays
Bank Group’s trading book positions.
|
●
|
Credit
spreads could widen leading to reduced investor appetite for the
Barclays Bank Group’s debt securities. This could negatively
impact the Barclays Bank Group’s cost of and/or access to
funding. In addition, market and interest rate volatility could
affect the underlying value of assets in the banking book and
securities held by the Barclays Bank Group for liquidity
purposes.
|
●
|
A
credit rating agency downgrade applied directly to the Barclays
Bank Group, or indirectly as a result of a credit rating agency
downgrade to the UK Government, could significantly increase the
Barclays Bank Group’s cost of and/or reduce its access to
funding, widen credit spreads and materially adversely affect the
Barclays Bank Group’s interest margins and liquidity
position.
|
●
|
A UK
recession with lower growth, higher unemployment and falling UK
property prices could lead to increased impairments in relation to
a number of the Barclays Bank Group’s portfolios, including,
but not limited to, its corporate portfolios and commercial real
estate exposures.
|
●
|
The
ability to attract, or prevent the departure of, qualified and
skilled employees may be impacted by the UK’s and the
EU’s future approach to the EU freedom of movement and
immigration from the EU countries and this may impact the Barclays
Bank Group’s access to the EU talent pool.
|
●
|
A
disorderly exit from the EU may put a strain on the capabilities of
the Barclays Bank Group’s systems, increasing the risk of
failure of those systems and potentially resulting in losses and
reputational damage for the Barclays Bank Group.
|
●
|
Changes
to current EU ‘Passporting’ rights may require further
adjustment to the current model for the Barclays Bank Group’s
cross-border banking operation which could increase operational
complexity and/or costs for the Barclays Bank Group.
|
●
|
The
legal framework within which the Barclays Bank Group operates could
change and become more uncertain if the UK takes steps to replace
or repeal certain laws currently in force, which are based on EU
legislation and regulation (including EU regulation of the banking
sector) following its withdrawal from the EU. Certainty around the
ability to maintain existing contracts, enforceability of certain
legal obligations and uncertainty around the jurisdiction of the UK
courts may be affected until the impacts of the loss of the current
legal and regulatory arrangements between the UK and EU and the
enforceability of UK judgements across the EU are fully
known.
|
●
|
Should
the UK see reduced access to financial markets infrastructures
(including exchanges, central counterparties and payments services,
or other support services provided by third party suppliers)
service provision for clients could be impacted, likely resulting
in reduced market share and revenue and increased operating costs
for the Barclays Bank Group.
|
iii)
|
The impact of interest rate changes on the Barclays Bank
Group’s profitability
|
iv)
|
The competitive environments of the banking and financial services
industry
|
v)
|
Regulatory change agenda and impact on business model
|
●
|
|
Changes
in prudential requirements may impact minimum requirements for own
funds and eligible liabilities (MREL) (including requirements for
internal MREL), leverage, liquidity or funding requirements,
applicable buffers and/or add-ons to such minimum requirements and
risk weighted assets calculation methodologies all as may be set by
international, EU or national authorities. Such or similar changes
to prudential requirements or additional supervisory and prudential
expectations, either individually or in aggregate, may result in,
among other things, a need for further management actions to meet
the changed requirements, such as:
|
|
●
|
increasing
capital, MREL or liquidity resources, reducing leverage and risk
weighted assets;
|
|
●
|
restricting
distributions on capital instruments;
|
|
●
|
modifying
the terms of outstanding capital instruments;
|
|
●
|
modifying
legal entity structure (including with regard to issuance and
deployment of capital, MREL and funding);
|
|
●
|
changing
the Barclays Bank Group’s business mix or exiting other
businesses;
|
|
●
|
and/or
undertaking other actions to strengthen the Barclays Bank
Group’s position.
|
●
|
|
The
derivatives market has been the subject of particular focus for
regulators in recent years across the G20 countries and beyond,
with regulations introduced which require the reporting and
clearing of standardised over the counter (OTC) derivatives and the
mandatory margining of non-cleared OTC derivatives. These
regulations may increase costs for market participants, as well as
reduce liquidity in the derivatives markets. More broadly, changes
to the regulatory framework (in particular, the review of the
second Markets in Financial Instruments Directive and the
implementation of the Benchmarks Regulation) could entail
significant costs for market participants and may have a
significant impact on certain markets in which the Barclays Bank
Group operates.
|
●
|
|
The
Barclays Group and certain of its members including Barclays Bank
PLC are subject to supervisory stress testing exercises in a number
of jurisdictions. These exercises currently include the programmes
of the Bank of England (BoE), the European Banking Authority (EBA),
the Federal Deposit Insurance Corporation (FDIC) and the Federal
Reserve Board (FRB). Failure to meet the requirements of regulatory
stress tests, or the failure by regulators to approve the stress
test results and capital plans of the Barclays Group, could result
in the Barclays Group or certain of its members including Barclays
Bank PLC being required to enhance their capital position, limit
capital distributions or position additional capital in specific
subsidiaries.
|
vi)
|
The impact of climate change on the Barclays Bank Group’s
business
|
vii)
|
Impact of benchmark interest rate reforms on the Barclays Bank
Group
|
●
|
Conduct risk: in undertaking actions to transition away from
using certain reference rates (including LIBOR), the Barclays Bank
Group faces conduct risks, which may lead to customer complaints,
regulatory sanctions or reputational impact if the Barclays Bank
Group is (i) considered to be undertaking market activities that
are manipulative or create a false or misleading impression, (ii)
misusing sensitive information or not identifying or appropriately
managing or mitigating conflicts of interest, (iii) providing
customers with inadequate advice, misleading information,
unsuitable products or unacceptable service, (iv) not taking an
appropriate or consistent response to remediation activity or
customer complaints, (v) providing regulators with inaccurate
regulatory reporting or (vi) colluding or inappropriately sharing
information with competitors;
|
●
|
Financial risks: the valuation of certain Barclays Bank
Group’s financial assets and liabilities may change.
Moreover, transitioning to alternative “risk-free”
reference rates may impact the ability of members of the Barclays
Bank Group to calculate and model amounts receivable by them on
certain financial assets and determine the amounts payable on
certain financial liabilities (such as debt securities issued by
them) because currently alternative “risk-free”
reference rates (such as the Sterling Overnight Index Average
(SONIA) and the Secured Overnight Financing Rate (SOFR)) are
look-back rates whereas term rates (such as LIBOR) allow borrowers
to calculate at the start of any interest period exactly how much
is payable at the end of such interest period. This may have a
material adverse effect on the Barclays Bank Group’s
cashflows;
|
●
|
Pricing risk: changes to existing reference rates and
indices, discontinuation of any reference rate or indices and
transition to alternative “risk-free” reference rates
may impact the pricing mechanisms used by the Barclays Bank Group
on certain transactions;
|
●
|
Operational risk: changes to existing reference rates and
indices, discontinuation of any reference rate or index and
transition to alternative “risk-free” reference rates
may require changes to the Barclays Bank Group’s IT systems,
trade reporting infrastructure, operational processes, and
controls. In addition, if any reference rate or index (such as
LIBOR) is no longer available to calculate amounts payable, the
Barclays Bank Group may incur additional expenses in amending
documentation for new and existing transactions and/or effecting
the transition from the original reference rate or index to a new
reference rate or index; and
|
●
|
Accounting risk: an inability to apply hedge accounting in
accordance with IFRS could lead to increased volatility in the
Barclays Bank Group’s financial results and
performance.
|
i)
|
Credit risk
|
a)
|
Impairment
|
b)
|
Specific sectors and concentrations
|
●
|
UK retail, hospitality & leisure. Softening demand,
rising costs and a structural shift to online shopping is fuelling
pressure on the UK High Street and other sectors heavily reliant on
consumer discretionary spending. As these sectors continue to
reposition themselves, the trend represents a potential risk in the
Barclays Bank Group’s UK corporate portfolio from the
perspective of the its interactions with both retailers and their
landlords.
|
●
|
Consumer affordability has remained a key area of focus,
particularly in unsecured lending. Macroeconomic factors, such as
rising unemployment, that impact a customer’s ability to
service unsecured debt payments could lead to increased arrears in
unsecured products. Barclays Bank Group is exposed to the adverse
credit performance of unsecured products, particularly in the US
through its US Cards business.
|
●
|
UK real estate market. UK property represents a significant
portion of the Barclays Bank Group’s overall corporate credit
exposure. In 2019, property price growth across the UK has slowed,
particularly in London and the South East where the Barclays Bank
Group’s exposure has high concentration. The Barclays Bank
Group is at risk of increased impairment from a material fall in
property prices.
|
●
|
Leverage finance underwriting. The Barclays Bank Group takes
on sub-investment grade underwriting exposure, including single
name risk, particularly in the US and Europe. The Barclays Bank
Group is exposed to credit events and market volatility during the
underwriting period. Any adverse events during this period may
potentially result in loss for the Barclays Bank Group, or an
increased capital requirement should there be a need to hold the
exposure for an extended period.
|
●
|
Italian mortgage portfolio. The Barclays Bank Group is
exposed to a decline in the Italian economic environment through a
mortgage portfolio in run-off and positions to wholesale customers.
Growth in the Italian economy remained weak in 2019 and should the
economy deteriorate further, there could be a material adverse
effect on the Barclays Bank Group’s results including, but
not limited to, increased credit losses and higher impairment
charges.
|
ii)
|
Market risk
|
iii)
|
Treasury and capital risk
|
a)
|
Liquidity risk
|
●
|
The stability of the Barclays Bank Group’s current funding
profile: In particular, that part which is based on accounts
and deposits payable on demand or at short notice, could be
affected by the Barclays Bank Group failing to preserve the current
level of customer and investor confidence. The Barclays Bank Group
also regularly accesses the money and capital markets to provide
short-term and long-term funding to support its operations. Several
factors, including adverse macroeconomic conditions, adverse
outcomes in conduct and legal, competition and regulatory matters
and loss of confidence by investors, counterparties and/or
customers in the Barclays Bank Group, can affect the ability of the
Barclays Bank Group to access the capital markets and/or the cost
and other terms upon which the Barclays Bank Group is able to
obtain market funding.
|
●
|
Credit rating changes and the impact on funding costs:
Rating agencies regularly review credit ratings given to Barclays
Bank PLC and certain members of the Barclays Bank Group. Credit
ratings are based on a number of factors, including some which are
not within the Barclays Bank Group’s control (such as
political and regulatory developments, changes in rating
methodologies, macro-economic conditions and the sovereign credit
ratings of the countries in which the Barclays Bank Group
operates).
Whilst
the impact of a credit rating change will depend on a number of
factors (including the type of issuance and prevailing market
conditions), any reductions in a credit rating (in particular, any
downgrade below investment grade) may affect the Barclays Bank
Group’s access to the money or capital markets and/or terms
on which the Barclays Bank Group is able to obtain market funding,
increase costs of funding and credit spreads, reduce the size of
the Barclays Bank Group’s deposit base, trigger additional
collateral or other requirements in derivative contracts and other
secured funding arrangements or limit the range of counterparties
who are willing to enter into transactions with the Barclays Bank
Group. Any of these factors could have a material adverse effect on
the Barclays Bank Group’s business, results of operations,
financial condition and prospects.
|
b)
|
Capital risk
|
●
|
Failure to meet prudential capital requirements: This could
lead to the Barclays Bank Group being unable to support some or all
of its business activities, a failure to pass regulatory stress
tests, increased cost of funding due to deterioration in investor
appetite or credit ratings, restrictions on distributions including
the ability to meet dividend targets, and/or the need to take
additional measures to strengthen the Barclays Bank Group's capital
or leverage position.
|
●
|
Adverse changes in FX rates impacting capital ratios: The
Barclays Bank Group has capital resources, risk weighted assets and
leverage exposures denominated in foreign currencies. Changes in
foreign currency exchange rates may adversely impact the Sterling
equivalent value of these items. As a result, the Barclays Bank
Group’s regulatory capital ratios are sensitive to foreign
currency movements. Failure to appropriately manage the Barclays
Bank Group’s balance sheet to take account of foreign
currency movements could result in an adverse impact on the
Barclays Bank Group’s regulatory capital and leverage
ratios.
|
●
|
Adverse movements in the pension fund: Adverse movements in pension
assets and liabilities for defined benefit pension schemes
could result
in deficits on a funding and/or accounting basis. This could lead
to the Barclays Bank Group making substantial additional
contributions to its pension plans and/or a deterioration in its
capital position. Under IAS 19, the liabilities discount rate is
derived from the yields of high quality corporate
bonds. Therefore,
the valuation of the Barclays Bank Group’s defined benefits
schemes would be adversely affected by a prolonged fall in the
discount rate due to a persistent low interest rate and/or credit
spread environment. Inflation is another significant risk driver to
the pension fund as the liabilities are adversely impacted by an
increase in long-term inflation expectations.
|
c)
|
Interest rate risk in the banking book
|
iv)
|
Operational risk
|
a)
|
Operational resilience
The
loss of or disruption to business processing is a material inherent
risk within the Barclays Bank Group and across the financial
services industry, whether arising through impacts on the Barclays
Bank Group’s technology systems or availability of personnel
or services supplied by third parties. Failure to build resilience
and recovery capabilities into business processes or into the
services of technology, real estate or suppliers on which the
Barclays Bank Group’s business processes depend, may result
in significant customer detriment, costs to reimburse losses
incurred by the Barclays Bank Group’s customers, and
reputational damage.
|
b)
|
Cyber threats
The
frequency of cyber-attacks continues to grow and is a global threat
that is inherent across all industries. The financial sector
remains a primary target for cyber criminals, hostile nation
states, opportunists and hacktivists and there is an increasing
level of sophistication in criminal hacking for the purpose of
stealing money, stealing, destroying or manipulating data
(including customer data) and/or disrupting operations, where
multiple threats exist including threats arising from malicious
emails, distributed denial of service (DDoS) attacks, payment
system compromises, insider attackers, supply chain and
vulnerability exploitation. Cyber events have a compounding impact
on services and customers, e.g. data breaches in social networking
sites, retail companies and payments networks.
|
c)
|
New and emergent technology
Technological
advancements present opportunities to develop new and innovative
ways of doing business across the Barclays Bank Group, with new
solutions being developed both in-house and in association with
third-party companies. Introducing new forms of technology,
however, also has the potential to increase inherent risk. Failure
to evaluate, actively manage and closely monitor risk exposure
during all phases of business development could introduce new
vulnerabilities and security flaws and have a material adverse
effect on the Barclays Bank Group’s business, results of
operations, financial condition and prospects.
|
d)
|
External fraud
The
level and nature of fraud threats continues to evolve, particularly
with the increasing use of digital products and the greater
functionality available online. Criminals continue to adapt their
techniques and are increasingly focused on targeting customers and
clients through ever more sophisticated methods of social
engineering. External data breaches also provide criminals with the
opportunity to exploit the growing levels of compromised data.
These fraud threats could lead to customer detriment, loss of
business, missed business opportunity and reputational damage, all
of which could have a material adverse effect on the Barclays Bank
Group’s business, results of operations, financial condition
and prospects.
|
e)
|
Data management and information protection
The
Barclays Bank Group holds and processes large volumes of data,
including personally identifiable information, intellectual
property, and financial data. The General Data Protection
Regulation (GDPR) has strengthened the data protection rights of
customers and increased the accountability of the Barclays Bank
Group in its management of such data. Failure to accurately collect
and maintain this data, protect it from breaches of confidentiality
and interference with its availability exposes the Barclays Bank
Group to the risk of loss or unavailability of data (including
customer data discussed under “vi) Conduct risk, c) Data
protection and privacy” below) or data integrity issues. Any
of these failures could have a material adverse effect on the
Barclays Bank Group’s business, results of operations,
financial condition and prospects.
|
f)
|
Algorithmic trading
In some
areas of the investment banking business, trading algorithms are
used to price and risk manage client and principal transactions. An
algorithmic error could result in erroneous or duplicated
transactions, a system outage, or impact the Barclays Bank
Group’s pricing abilities, which could have a material
adverse effect on the Barclays Bank Group’s business, results
of operations, financial condition and prospects and
reputation.
|
g)
|
Processing error
As a
large, complex financial institution, the Barclays Bank Group faces
the risk of material errors in existing operational processes, or
from new processes as a result of on-going change activity,
including payments and client transactions. Material operational or
payment errors could disadvantage the Barclays Bank Group’s
customers, clients or counterparties and could have a material
adverse effect on the Barclays Bank Group’s business, results
of operations, financial condition and prospects.
|
h)
|
Supplier exposure
The
Barclays Bank Group depends on suppliers, including Barclays
Execution Services Limited, for the provision of many of its
services and the development of technology. Whilst the Barclays
Bank Group depends on suppliers, it remains fully accountable for
any risk arising from the actions of suppliers. The dependency on
suppliers and sub-contracting of outsourced services introduces
concentration risk where the failure of specific suppliers could
have an impact on the Barclays Bank Group’s ability to
continue to provide material services to its customers. Failure to
adequately manage supplier risk could have a material adverse
effect on the Barclays Bank Group’s business, results of
operations, financial condition and prospects.
|
i)
|
Critical accounting estimates and judgements
The
preparation of financial statements in accordance with IFRS
requires the use of estimates. It also requires management to
exercise judgement in applying relevant accounting policies. The
key areas involving a higher degree of judgement or complexity, or
areas where assumptions are significant to the consolidated and
individual financial statements, include credit impairment charges
for amortised cost assets, taxes, fair value of financial
instruments, pensions and post-retirement benefits, and provisions
including conduct and legal, competition and regulatory matters.
There is a risk that if the judgement exercised, or the estimates
or assumptions used, subsequently turn out to be incorrect, this
could result in material losses to the Barclays Bank Group, beyond
what was anticipated or provided for. Further
development of standards and interpretations under IFRS could also
materially impact the financial results, condition and prospects of
the Barclays Bank Group. For further details on the accounting
estimates and policies, see the Notes to the audited financial
statements on pages 139 to 236 of the Barclays Bank PLC Annual
Report.
|
j)
|
Tax risk
The
Barclays Bank Group is required to comply with the domestic and
international tax laws and practice of all countries in which it
has business operations. There is a risk that the Barclays Bank
Group could suffer losses due to additional tax charges, other
financial costs or reputational damage as a result of failing to
comply with such laws and practice, or by failing to manage its tax
affairs in an appropriate manner, with much of this risk
attributable to the international structure of the Barclays Bank
Group. In addition, increasing reporting and disclosure
requirements around the world and the digitisation of the
administration of tax has potential to increase the Barclays Bank
Group’s tax compliance obligations further.
|
k)
|
Ability to hire and retain appropriately qualified
employees
As a
regulated financial institution, the Barclays Bank Group requires
diversified and specialist skilled colleagues. The Barclays Bank
Group’s ability to attract, develop and retain a diverse mix
of talent is key to the delivery of its core business activity and
strategy. This is impacted by a range of external and internal
factors, such as the UK’s decision to leave the EU and the
enhanced individual accountability applicable to the banking
industry. Failure to attract or prevent the departure of
appropriately qualified and skilled employees could have a material
adverse effect on the Barclays Bank Group’s business, results
of operations, financial condition and prospects. Additionally,
this may result in disruption to service which could in turn lead
to disenfranchising certain customer groups, customer detriment and
reputational damage.
|
v)
|
Model risk
|
vi)
|
Conduct risk
|
a)
|
Employee misconduct
The
Barclays Bank Group’s businesses are exposed to risk from
potential non-compliance with its policies and instances of wilful
and negligent misconduct by employees, all of which could result in
enforcement action or reputational harm. It is not always possible
to deter employee misconduct, and the precautions we take to
prevent and detect this activity may not always be effective.
Employee misconduct could have a material adverse effect on the
Barclays Bank Group’s customers, clients, market integrity as
well as reputation, financial condition and prospects.
|
b)
|
Product governance and life cycle
The
ongoing review, management and governance of new and amended
products has come under increasing regulatory focus (for example,
the recast of the Markets in Financial Instruments Directive and
guidance in relation to the adoption of the EU Benchmarks
Regulation) and the Barclays Bank Group expects this to continue.
The following could lead to poor customer outcomes: (i) ineffective
product governance, including design, approval and review of
products, and (ii) inappropriate controls over internal and third
party sales channels and post sales services, such as complaints
handling, collections and recoveries. The Barclays Bank Group is at
risk of financial loss and reputational damage as a
result.
|
c)
|
Financial crime
The
Barclays Bank Group may be adversely affected if it fails to
effectively mitigate the risk that third parties or its employees
facilitate, or that its products and services are used to
facilitate, financial crime (money laundering, terrorist financing
and proliferation financing, breaches of economic and financial
sanctions, bribery and corruption, and the facilitation of tax
evasion). UK and US regulations covering financial institutions
continue to focus on combating financial crime. Failure to comply
may lead to enforcement action by the Barclays Bank Group’s
regulators, including severe penalties, which may have material
adverse effect on the Barclays Bank Group’s business,
financial condition and prospects.
|
d)
|
Data protection and privacy
Proper
handling of personal data is critical to sustaining long-term
relationships with our customers and clients and complying with
privacy laws and regulations. Failure to protect personal data can
lead to potential detriment to our customers and clients,
reputational damage, enforcement action and financial loss, which
may be substantial (see “iv) Operational risk, (e) Data
management and information protection” above).
|
e)
|
Regulatory focus on culture and accountability
Regulators
around the world continue to emphasise the importance of culture
and personal accountability and enforce the adoption of adequate
internal reporting and whistleblowing procedures to help to promote
appropriate conduct and drive positive outcomes for customers,
colleagues, clients and markets. The requirements and expectations
of the UK Senior Managers Regime, Certification Regime and Conduct
Rules have driven additional accountabilities for individuals
across the Barclays Bank Group with an increased focus on
governance and rigour. Failure to meet these requirements and
expectations may lead to regulatory sanctions, both for the
individuals and the Barclays Bank Group.
|
vii)
|
Reputation risk
|
viii)
|
Legal risk and legal, competition and regulatory
matters
|
|
|
2019
|
2018a
|
2017a,b
|
For the year ended 31 December
|
Notes
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
Interest income
|
3
|
8,085
|
7,459
|
6,917
|
Interest expense
|
3
|
(4,178)
|
(4,329)
|
(3,041)
|
Net interest income
|
|
3,907
|
3,130
|
3,876
|
Fee and commission income
|
4
|
7,664
|
7,392
|
7,424
|
Fee and commission expense
|
4
|
(1,992)
|
(1,785)
|
(1,726)
|
Net fee and commission income
|
|
5,672
|
5,607
|
5,698
|
Net trading income
|
5
|
4,073
|
4,364
|
3,396
|
Net investment income
|
6
|
420
|
394
|
699
|
Other income
|
|
79
|
105
|
61
|
Total income
|
|
14,151
|
13,600
|
13,730
|
Credit impairment charges
|
7
|
(1,202)
|
(643)
|
(1,553)
|
Net operating income
|
|
12,949
|
12,957
|
12,177
|
Staff costs
|
30
|
(4,565)
|
(4,874)
|
(4,393)
|
Infrastructure costs
|
8
|
(835)
|
(935)
|
(1,696)
|
Administration and general expenses
|
8
|
(4,318)
|
(4,224)
|
(4,141)
|
Provision for litigation and conduct
|
8
|
(264)
|
(1,706)
|
(448)
|
Operating expenses
|
8
|
(9,982)
|
(11,739)
|
(10,678)
|
Share of post-tax results of associates and joint
ventures
|
|
57
|
68
|
75
|
Profit on disposal of subsidiaries, associates and joint
ventures
|
|
88
|
-
|
184
|
Profit before tax
|
|
3,112
|
1,286
|
1,758
|
Taxation
|
9
|
(332)
|
(229)
|
(1,352)
|
Profit after tax in respect of continuing operations
|
|
2,780
|
1,057
|
406
|
(Loss)/profit after tax in respect of discontinued
operations
|
39
|
-
|
(47)
|
(1,386)
|
Profit/(loss) after tax
|
|
2,780
|
1,010
|
(980)
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Equity holders of the parent
|
|
2,120
|
363
|
(1,763)
|
Other equity instrument holders
|
|
660
|
647
|
639
|
Total equity holders of the parent
|
|
2,780
|
1,010
|
(1,124)
|
Non-controlling interests in respect of continuing
operations
|
29
|
-
|
-
|
4
|
Non-controlling interests in respect of discontinued
operations
|
29
|
-
|
-
|
140
|
Profit/(loss) after tax
|
|
2,780
|
1,010
|
(980)
|
|
2019
|
2018
|
2017a
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Profit/(loss) after tax
|
2,780
|
1,010
|
(980)
|
Profit after tax in respect of continuing operations
|
2,780
|
1,057
|
406
|
Loss after tax in respect of discontinuing operations
|
-
|
(47)
|
(1,386)
|
Other comprehensive income/(loss) that may be recycled to profit or
loss from continuing operations:
|
|
|
|
Currency translation reserve
|
|
|
|
Currency translation differencesb
|
(544)
|
844
|
(1,310)
|
Fair value through other comprehensive
income reserve movement relating to debt
securitiesc
|
|
|
|
Net gains/(losses) from changes in fair value
|
2,465
|
(475)
|
-
|
Net (gains)/losses transferred to net profit on
disposal
|
(454)
|
74
|
-
|
Net losses transferred to net profit due to impairment
|
1
|
4
|
-
|
Net (losses)/gains due to fair value hedging
|
(1,782)
|
165
|
-
|
Other movements
|
(8)
|
(25)
|
-
|
Tax
|
(63)
|
53
|
-
|
Cash flow hedging reserve
|
|
|
|
Net gains/(losses) from changes in fair value
|
823
|
(197)
|
(428)
|
Net gains transferred to net profit
|
(141)
|
(213)
|
(602)
|
Tax
|
(171)
|
103
|
256
|
Available for sale
reservec
|
-
|
-
|
429
|
Other
|
16
|
27
|
(7)
|
Other comprehensive income/(loss) that may be recycled to profit or
loss from continuing operations
|
142
|
360
|
(1,662)
|
|
|
|
|
Other comprehensive (loss)/income not recycled to profit or loss
from continuing operations:
|
|
|
|
Retirement benefit remeasurements
|
(280)
|
412
|
115
|
Fair value through other comprehensive income reserve movements
relating to equity instrumentsc
|
-
|
(141)
|
-
|
Own credit
|
(316)
|
77
|
(7)
|
Tax
|
150
|
(118)
|
(66)
|
Other comprehensive (loss)/income not recycled to profit or loss
from continuing operations
|
(446)
|
230
|
42
|
|
|
|
|
Other comprehensive (loss)/income for the year from continuing
operations
|
(304)
|
590
|
(1,620)
|
|
|
|
|
Other comprehensive (loss)/gains for the year from discontinued
operation
|
-
|
(3)
|
1,301
|
|
|
|
|
Total comprehensive income/(loss) for the year
|
|
|
|
Total comprehensive income/(loss) for the year, net of tax from
continuing operations
|
2,476
|
1,647
|
(1,214)
|
Total comprehensive loss for the year, net of tax from discontinued
operation
|
-
|
(50)
|
(85)
|
Total comprehensive income/(loss) for the year
|
2,476
|
1,597
|
(1,299)
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
2,476
|
1,597
|
(1,411)
|
Non-controlling interests
|
-
|
-
|
112
|
Total comprehensive income/(loss) for the year
|
2,476
|
1,597
|
(1,299)
|
a
|
Following
the sale of the UK banking business on 1 April 2018 by the Group,
the continuing operations for 2017 have been restated to disclose
the UK banking business as a discontinued operation. Further detail
on the discontinued operations can be found in Note 39 of the
Barclays Bank PLC Annual Report.
|
b
|
Includes
£15m profit (2018: £41m loss; 2017:£189m loss) on
recycling of currency translation differences.
|
c
|
Following
the adoption of IFRS 9, Financial Instruments on 1 January 2018,
the fair value through other comprehensive income reserve was
introduced replacing the available for sale reserve.
|
|
|
2019
|
2018
|
As at 31 December
|
Notes
|
£m
|
£m
|
Assets
|
|
|
|
Cash and balances at central banks
|
|
125,940
|
136,359
|
Cash collateral and settlement balances
|
|
79,486
|
74,352
|
Loans and advances at amortised cost
|
18
|
141,636
|
136,959
|
Reverse repurchase agreements and other similar secured
lending
|
|
1,731
|
1,613
|
Trading portfolio assets
|
11
|
113,337
|
104,038
|
Financial assets at fair value through the income
statement
|
12
|
129,470
|
145,250
|
Derivative financial instruments
|
13
|
229,641
|
222,683
|
Financial assets at fair value through other comprehensive
income
|
14
|
45,406
|
44,994
|
Investments in associates and joint ventures
|
35
|
295
|
762
|
Goodwill and intangible assets
|
21
|
1,212
|
1,327
|
Property, plant and equipment
|
19
|
1,631
|
947
|
Current tax assets
|
9
|
898
|
1,713
|
Deferred tax assets
|
9
|
2,460
|
2,970
|
Retirement benefit assets
|
32
|
2,108
|
1,768
|
Other assets
|
|
1,421
|
1,965
|
Total assets
|
|
876,672
|
877,700
|
Liabilities
|
|
|
|
Deposits at amortised cost
|
18
|
213,881
|
199,337
|
Cash collateral and settlement balances
|
|
67,682
|
67,736
|
Repurchase agreements and other similar secured
borrowing
|
|
2,032
|
7,378
|
Debt securities in issue
|
|
33,536
|
39,063
|
Subordinated liabilities
|
26
|
33,425
|
35,327
|
Trading portfolio liabilities
|
11
|
35,212
|
36,614
|
Financial liabilities designated at fair value
|
15
|
204,446
|
217,741
|
Derivative financial instruments
|
13
|
228,940
|
219,592
|
Current tax liabilities
|
9
|
320
|
621
|
Deferred tax liabilities
|
9
|
80
|
-
|
Retirement benefit liabilities
|
32
|
313
|
283
|
Other liabilities
|
22
|
5,239
|
5,170
|
Provisions
|
23
|
951
|
1,127
|
Total liabilities
|
|
826,057
|
829,989
|
Equity
|
|
|
|
Called up share capital and share premium
|
27
|
2,348
|
2,348
|
Other equity instruments
|
27
|
8,323
|
7,595
|
Other reserves
|
28
|
3,235
|
3,361
|
Retained earnings
|
|
36,709
|
34,405
|
Total equity excluding non-controlling interests
|
|
50,615
|
47,709
|
Non-controlling interests
|
29
|
-
|
2
|
Total equity
|
|
50,615
|
47,711
|
Total liabilities and equity
|
|
876,672
|
877,700
|
|
Called up
share
capital
and share
premiuma
|
Other
equity
instrumentsa
|
Other reservesb
|
Retained
earnings
|
Total equity excluding non-controlling interests
|
Non-
controlling
interests
|
Total
equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2019
|
2,348
|
7,595
|
3,361
|
34,405
|
47,709
|
2
|
47,711
|
Profit after tax
|
-
|
660
|
-
|
2,120
|
2,780
|
-
|
2,780
|
Currency translation movements
|
-
|
-
|
(544)
|
-
|
(544)
|
-
|
(544)
|
Fair value through other comprehensive income reserve
|
-
|
-
|
159
|
-
|
159
|
-
|
159
|
Cash flow hedges
|
-
|
-
|
511
|
-
|
511
|
-
|
511
|
Retirement benefit remeasurement
|
-
|
-
|
-
|
(194)
|
(194)
|
-
|
(194)
|
Own credit reserve
|
-
|
-
|
(252)
|
-
|
(252)
|
-
|
(252)
|
Other
|
-
|
-
|
-
|
16
|
16
|
-
|
16
|
Total comprehensive income for the year
|
-
|
660
|
(126)
|
1,942
|
2,476
|
-
|
2,476
|
Issue and exchange of other equity instruments
|
-
|
728
|
-
|
(406)
|
322
|
-
|
322
|
Other equity instruments coupons paid
|
-
|
(660)
|
-
|
-
|
(660)
|
-
|
(660)
|
Equity settled share schemes
|
-
|
-
|
-
|
392
|
392
|
-
|
392
|
Vesting of Barclays PLC shares under share-based payment
schemes
|
-
|
-
|
-
|
(349)
|
(349)
|
-
|
(349)
|
Dividends on ordinary shares
|
-
|
-
|
-
|
(233)
|
(233)
|
-
|
(233)
|
Dividends on preference shares and other shareholders
equity
|
-
|
-
|
-
|
(41)
|
(41)
|
-
|
(41)
|
Capital contribution from Barclays Plc
|
-
|
-
|
-
|
995
|
995
|
-
|
995
|
Other reserve movements
|
-
|
-
|
-
|
4
|
4
|
(2)
|
2
|
Balance as at 31 December 2019
|
2,348
|
8,323
|
3,235
|
36,709
|
50,615
|
-
|
50,615
|
a
|
For
further details refer to Note 27 of the Barclays Bank PLC Annual
Report.
|
b
|
For
further details refer to Note 28 of
the Barclays Bank PLC Annual Report.
|
|
Called up
share
capital
and share
premiuma
|
Other
equity
instrumentsa
|
Other reservesb
|
Retained
earningsc
|
Total equity excluding non-controlling interests
|
Non-
controlling
interests
|
Total
equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 31 December 2017
|
14,453
|
8,982
|
3,808
|
38,490
|
65,733
|
1
|
65,734
|
Effects of changes in accounting policiesd
|
-
|
-
|
(136)
|
(2,014)
|
(2,150)
|
-
|
(2,150)
|
Balance as at 1 January 2018
|
14,453
|
8,982
|
3,672
|
36,476
|
63,583
|
1
|
63,584
|
Profit after tax
|
-
|
647
|
-
|
410
|
1,057
|
-
|
1,057
|
Currency translation movements
|
-
|
-
|
844
|
-
|
844
|
-
|
844
|
Fair value through other comprehensive income reserve
|
-
|
-
|
(345)
|
-
|
(345)
|
-
|
(345)
|
Cash flow hedges
|
-
|
-
|
(307)
|
-
|
(307)
|
-
|
(307)
|
Retirement benefit remeasurement
|
-
|
-
|
-
|
313
|
313
|
-
|
313
|
Own credit reserve
|
-
|
-
|
58
|
-
|
58
|
-
|
58
|
Other
|
-
|
-
|
-
|
27
|
27
|
-
|
27
|
Total comprehensive income net of tax from continuing
operations
|
-
|
647
|
250
|
750
|
1,647
|
-
|
1,647
|
Total comprehensive income net of tax from discontinued
operations
|
-
|
-
|
(3)
|
(47)
|
(50)
|
-
|
(50)
|
Total comprehensive income for the year
|
-
|
647
|
247
|
703
|
1,597
|
-
|
1,597
|
Issue and exchange of other equity instruments
|
-
|
683
|
-
|
(312)
|
371
|
-
|
371
|
Capital reorganisation
|
(12,092)
|
-
|
-
|
12,092
|
-
|
-
|
-
|
Other equity instruments coupons paid
|
-
|
(647)
|
-
|
-
|
(647)
|
-
|
(647)
|
Redemption of preference shares
|
(13)
|
-
|
21
|
(2,048)
|
(2,040)
|
-
|
(2,040)
|
Equity to debt reclassificatione
|
-
|
-
|
(272)
|
-
|
(272)
|
-
|
(272)
|
Equity settled share schemes
|
-
|
-
|
-
|
373
|
373
|
-
|
373
|
Vesting of Barclays PLC shares under share-based payment
schemes
|
-
|
-
|
-
|
(418)
|
(418)
|
-
|
(418)
|
Dividends on ordinary shares
|
-
|
-
|
-
|
(14,585)
|
(14,585)
|
-
|
(14,585)
|
Dividends on preference shares and other shareholders
equity
|
-
|
-
|
-
|
(204)
|
(204)
|
-
|
(204)
|
Capital contribution from Barclays Plc
|
-
|
-
|
-
|
3,000
|
3,000
|
-
|
3,000
|
Net equity impact of intra-group transfers
|
-
|
(2,070)
|
(307)
|
(638)
|
(3,015)
|
-
|
(3,015)
|
Other reserve movements
|
-
|
-
|
-
|
(34)
|
(34)
|
1
|
(33)
|
Balance as at 31 December 2018
|
2,348
|
7,595
|
3,361
|
34,405
|
47,709
|
2
|
47,711
|
a
|
For
further details refer to Note 27 of the Barclays Bank PLC Annual
Report.
|
b
|
For
further details refer to Note 28 of the Barclays Bank PLC Annual
Report.
|
c
|
From
2019, due to an IAS 12 update, the tax relief on payments in
relation to equity instruments has been recognised in the tax
charge of the income statement, whereas it was previously recorded
in retained earnings. This change does not impact earnings per
share or return on average tangible shareholders’ equity.
Comparatives have been restated, reducing the tax charge for 2018
by £175m. Further detail can be found in Note 1.
|
d
|
Effects
of changes in accounting policies relate to the adoption of IFRS 9
Financial Instruments and IFRS 15 Revenue from Contracts with
Customers on 1 January 2018. The impact of IFRS 15 Revenue from
Contracts with Customers was an increase to retained earnings of
£67m with the remainder due to the impact of IFRS 9 Financial
Instruments.
|
e
|
Following
a review of certain equity instruments, certain instruments have
been deemed to have characteristics that would qualify them as debt
and have subsequently been reclassified.
|
|
|
2019
|
2018
|
2017a
|
For the year ended 31 December
|
Notes
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
Reconciliation of profit before tax to net cash flows from
operating activities:
|
|
|
|
|
Profit before tax
|
|
3,112
|
1,286
|
1,758
|
Adjustment for non-cash items:
|
|
|
|
|
Credit impairment charges
|
|
1,202
|
643
|
1,553
|
Depreciation, amortisation and impairment of property, plant,
equipment and intangibles
|
|
459
|
397
|
663
|
Other provisions, including pensions
|
|
417
|
2,274
|
770
|
Net profit on disposal of investments and property, plant and
equipment
|
|
(84)
|
-
|
(314)
|
Other non-cash movements including exchange rate
movements
|
|
1,060
|
(3,877)
|
1,565
|
Changes in operating assets and liabilities
|
|
-
|
|
|
Net increase in cash collateral and settlement
balances
|
|
(6,427)
|
(5,606)
|
(3,912)
|
Net (increase)/decrease in loans and advances at amortised
cost
|
|
(5,125)
|
(3,890)
|
26,062
|
Net increase in reverse repurchase agreements and other similar
secured lending
|
|
(118)
|
(434)
|
(1,827)
|
Net increase in deposits and debt securities in issue
|
|
8,782
|
16,330
|
938
|
Net (decrease)/increase in repurchase agreements and other similar
secured borrowing
|
|
(5,346)
|
2
|
16,978
|
Net decrease/(increase) in derivative financial
instruments
|
|
2,390
|
(6,419)
|
6,770
|
Net (increase)/decrease in trading assets
|
|
(9,299)
|
10,102
|
(33,179)
|
Net (decrease)/increase in trading liabilities
|
|
(1,402)
|
1,688
|
2,665
|
Net decrease/(increase) in financial assets and liabilities
designated at fair value
|
|
2,485
|
(6,284)
|
39,507
|
Net (increase)/decrease in other assets
|
|
(44)
|
949
|
(721)
|
Net decrease in other liabilities
|
|
(991)
|
(6,099)
|
(2,014)
|
Corporate income tax received/(paid)
|
9
|
894
|
(409)
|
59
|
Net cash from operating activities
|
|
(8,035)
|
653
|
57,321
|
Purchase of financial assets at fair value through other
comprehensive income
|
|
(67,056)
|
(106,330)
|
-
|
Purchase of available for sale investments
|
|
-
|
-
|
(83,233)
|
Proceeds from sale or redemption of financial assets at fair value
through other comprehensive income
|
|
67,743
|
108,038
|
-
|
Proceeds from sale or redemption of available for sale
investments
|
|
-
|
-
|
88,298
|
Purchase of property, plant and equipment and
intangibles
|
|
(610)
|
(422)
|
(714)
|
Proceeds from sale of property, plant and equipment and
intangibles
|
|
-
|
35
|
2,150
|
Disposal of discontinued operation, net of cash
disposed
|
|
-
|
(39,703)
|
(1,060)
|
Disposal of subsidiaries and associates, net of cash
disposed
|
|
617
|
-
|
358
|
Other cash flows associated with investing activities
|
|
95
|
1,191
|
693
|
Net cash from investing activities
|
|
789
|
(37,191)
|
6,492
|
Dividends paid and coupon payments on other equity
instruments
|
|
(934)
|
(1,142)
|
(1,427)
|
Issuance of subordinated debt
|
26
|
6,785
|
221
|
3,041
|
Redemption of subordinated debt
|
26
|
(6,574)
|
(3,246)
|
(1,378)
|
Issue of shares and other equity instruments
|
|
2,292
|
1,925
|
2,495
|
Redemption of shares and other equity instruments
|
|
(1,970)
|
(3,588)
|
(1,339)
|
Capital contribution from Barclays PLC
|
|
-
|
2,000
|
-
|
Vesting of shares under employee share schemes
|
|
(349)
|
(418)
|
-
|
Net cash from financing activities
|
|
(750)
|
(4,248)
|
1,392
|
Effect of exchange rates on cash and cash equivalents
|
|
(3,345)
|
4,159
|
(4,773)
|
Net (decrease)/increase in cash and cash equivalents from
continuing operations
|
|
(11,341)
|
(36,627)
|
60,432
|
Net cash from discontinued operation
|
40
|
-
|
(468)
|
88
|
Net (decrease)/increase in cash and cash equivalents
|
|
(11,341)
|
(37,095)
|
60,520
|
Cash and cash equivalents at beginning of year
|
|
167,357
|
204,452
|
143,932
|
Cash and cash equivalents at end of year
|
|
156,016
|
167,357
|
204,452
|
Cash and cash equivalents comprise:
|
|
|
|
|
Cash and balances at central banks
|
|
125,940
|
136,359
|
171,036
|
Loans and advances to banks with original maturity less than three
months
|
|
8,158
|
7,404
|
8,050
|
Cash collateral and settlement balances with banks with original
maturity less than three months
|
|
21,438
|
22,677
|
24,656
|
Treasury and other eligible bills with original maturity less than
three months
|
|
480
|
917
|
682
|
Trading portfolio assets with original maturity less than three
months
|
|
-
|
-
|
28
|
|
|
156,016
|
167,357
|
204,452
|
a
|
Following
the sale of the UK banking business on 1 April 2018 by the Group,
the continuing operations for 2017 have been restated to disclose
the UK banking business as a discontinued operation. Further detail
on the discontinued operations can be found in Note 39 of the
Barclays Bank PLC Annual Report.
|
Balance sheet
|
|
|
|
|
|
2019
|
2018
|
As at
31 December
|
Notes
|
£m
|
£m
|
Assets
|
|
|
|
Cash
and balances at central banks
|
|
112,287
|
126,002
|
Cash
collateral and settlement balances
|
|
75,822
|
66,196
|
Loans
and advances at amortised cost
|
18
|
161,663
|
156,764
|
Reverse
repurchase agreements and other similar secured
lending
|
|
4,939
|
5,766
|
Trading
portfolio assets
|
11
|
79,079
|
73,480
|
Financial
assets at fair value through the income statement
|
12
|
162,500
|
179,365
|
Derivative
financial instruments
|
13
|
229,338
|
221,247
|
Financial
assets at fair value through other comprehensive
income
|
14
|
43,760
|
43,706
|
Investments
in associates and joint ventures
|
35
|
119
|
140
|
Investment
in subsidiaries
|
|
16,105
|
14,958
|
Goodwill
and intangible assets
|
21
|
115
|
123
|
Property,
plant and equipment
|
19
|
426
|
103
|
Current
tax assets
|
9
|
946
|
1,439
|
Deferred
tax assets
|
9
|
1,115
|
1,249
|
Retirement
benefit assets
|
32
|
2,062
|
1,748
|
Other
assets
|
|
845
|
1,110
|
Total
assets
|
|
891,121
|
893,396
|
Liabilities
|
|
|
|
Deposits
at amortised cost
|
18
|
240,631
|
231,017
|
Cash
collateral and settlement balances
|
|
59,448
|
56,358
|
Repurchase
agreements and other similar secured borrowing
|
|
9,185
|
11,113
|
Debt
securities in issue
|
|
19,883
|
26,391
|
Subordinated
liabilities
|
26
|
33,205
|
35,085
|
Trading
portfolio liabilities
|
11
|
45,130
|
46,626
|
Financial
liabilities designated at fair value
|
15
|
207,765
|
216,966
|
Derivative
financial instruments
|
13
|
225,607
|
221,590
|
Current
tax liabilities
|
9
|
221
|
376
|
Deferred
tax liabilities
|
9
|
80
|
-
|
Retirement
benefit liabilities
|
32
|
104
|
124
|
Other
liabilities
|
22
|
2,807
|
3,295
|
Provisions
|
23
|
630
|
818
|
Total
liabilities
|
|
844,696
|
849,759
|
Equity
|
|
|
|
Called
up share capital and share premium
|
27
|
2,348
|
2,348
|
Other
equity instruments
|
27
|
11,089
|
10,361
|
Other
reserves
|
28
|
678
|
383
|
Retained
earnings
|
|
32,310
|
30,545
|
Total
equity
|
|
46,425
|
43,637
|
Total
liabilities and equity
|
|
891,121
|
893,396
|
a
|
As
permitted by section 408 of the Companies Act 2006 an income
statement for the parent company has not been presented. Included
in shareholders’ equity for ‘Barclays Bank PLC’
is a profit after tax for the year ended 31 December 2019 of
£2,409m (2018: £868m).
|
Statement of changes in equity
|
|
|
|
||
|
Called up
share
capital
and share
premiuma
|
Other
equity
instrumentsa
|
Other reservesb
|
Retained
earnings
|
Total equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 1 January 2019
|
2,348
|
10,361
|
383
|
30,545
|
43,637
|
Profit after tax
|
-
|
839
|
-
|
1,570
|
2,409
|
Currency translation movements
|
-
|
-
|
(198)
|
-
|
(198)
|
Fair value through other comprehensive income reserve
|
-
|
-
|
161
|
-
|
161
|
Cash flow hedges
|
-
|
-
|
526
|
-
|
526
|
Retirement benefit remeasurement
|
-
|
-
|
-
|
(184)
|
(184)
|
Own credit reserve
|
-
|
-
|
(213)
|
-
|
(213)
|
Other
|
-
|
-
|
-
|
9
|
9
|
Total comprehensive income for the year
|
-
|
839
|
276
|
1,395
|
2,510
|
Issue and exchange of other equity instruments
|
-
|
728
|
-
|
(406)
|
322
|
Other equity instruments coupons paidc
|
-
|
(839)
|
-
|
-
|
(839)
|
Equity settled share schemes
|
-
|
-
|
-
|
392
|
392
|
Vesting of Barclays PLC shares under share-based payment
schemes
|
-
|
-
|
-
|
(349)
|
(349)
|
Dividends paid on ordinary shares
|
-
|
-
|
-
|
(233)
|
(233)
|
Dividends paid on preference shares and other shareholders'
equity
|
-
|
-
|
-
|
(41)
|
(41)
|
Capital contribution from Barclays PLC
|
-
|
-
|
-
|
995
|
995
|
Net equity impact of intra-group transfers
|
-
|
-
|
19
|
(19)
|
-
|
Other reserve movements
|
-
|
-
|
-
|
31
|
31
|
Balance as at 31 December 2019
|
2,348
|
11,089
|
678
|
32,310
|
46,425
|
a
|
For
further details refer to Note 27 of the Barclays Bank PLC Annual
Report.
|
b
|
For
further details refer to Note 28 of the Barclays Bank PLC Annual
Report.
|
c
|
Other equity instruments includes AT1 securities issued by Barclays
Bank PLC and borrowings of $3.5bn from a wholly-owned, indirect
subsidiary of BBPLC. The borrowings have been recorded as equity
since, under their terms, interest payments are non cumulative and
discretionary whilst repayment of principal is perpetually
deferrable by BBPLC. Should BBPLC make a discretionary dividend
payment on its ordinary shares in the 6 months preceding the date
of an interest payment, it will be obliged to make that interest
payment. In 2019, interest paid on these borrowings was
£179m.
|
Statement of changes in equity
|
|
|
|
||
|
Called up
share
capital
and share
premiuma
|
Other
equity
instrumentsa
|
Other reservesb
|
Retained
earningsc
|
Total equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Balance as at 31 December 2017
|
14,453
|
8,982
|
1,093
|
33,506
|
58,034
|
Effects of changes in accounting policiesd
|
-
|
-
|
(117)
|
(1,335)
|
(1,452)
|
Balance as at 1 January 2018
|
14,453
|
8,982
|
976
|
32,171
|
56,582
|
Profit after tax
|
-
|
647
|
-
|
257
|
904
|
Currency translation movements
|
-
|
-
|
138
|
-
|
138
|
Fair value through other comprehensive income reserve
|
-
|
-
|
(179)
|
-
|
(179)
|
Cash flow hedges
|
-
|
-
|
(308)
|
-
|
(308)
|
Retirement benefit remeasurement
|
-
|
-
|
-
|
290
|
290
|
Own credit reserve
|
-
|
-
|
57
|
-
|
57
|
Other
|
-
|
-
|
-
|
18
|
18
|
Total comprehensive income net of tax from continuing
operations
|
-
|
647
|
(292)
|
565
|
920
|
Total comprehensive income net of tax from discontinued
operations
|
-
|
-
|
(3)
|
(36)
|
(39)
|
Total comprehensive income for the year
|
-
|
647
|
(295)
|
529
|
881
|
Issue and exchange of other equity instruments
|
-
|
3,449
|
-
|
(312)
|
3,137
|
Capital reorganisation
|
(12,092)
|
-
|
-
|
12,092
|
-
|
Other equity instruments coupons paide
|
-
|
(647)
|
-
|
-
|
(647)
|
Redemption of preference shares
|
(13)
|
-
|
21
|
(2,048)
|
(2,040)
|
Equity to debt reclassificationf
|
-
|
-
|
(335)
|
-
|
(335)
|
Equity settled share schemes
|
-
|
-
|
-
|
373
|
373
|
Vesting of Barclays PLC shares under share-based payment
schemes
|
-
|
-
|
-
|
(418)
|
(418)
|
Dividends paid on ordinary shares
|
-
|
-
|
-
|
(14,585)
|
(14,585)
|
Dividends paid on preference shares and other shareholders'
equity
|
-
|
-
|
-
|
(204)
|
(204)
|
Capital contribution from Barclays PLC
|
-
|
-
|
-
|
3,000
|
3,000
|
Net equity impact of intra-group transfers
|
-
|
(2,070)
|
16
|
(46)
|
(2,100)
|
Other reserve movements
|
-
|
-
|
-
|
(7)
|
(7)
|
Balance as at 31 December 2018
|
2,348
|
10,361
|
383
|
30,545
|
43,637
|
a
|
For
further details refer to Note 27 of the Barclays Bank PLC Annual
Report.
|
b
|
For
further details refer to Note 28 of the Barclays Bank PLC Annual
Report.
|
c
|
From
2019, due to an IAS 12 update, the tax relief on payments in
relation to equity instruments has been recognised in the tax
charge of the income statement, whereas it was previously recorded
in retained earnings. This change does not impact earnings per
share or return on average tangible shareholders’ equity.
Comparatives have been restated, reducing the tax charge for 2018
by £175m. Further detail can be found in Note 1.
|
d
|
Effects
of changes in accounting policies relate to the adoption of IFRS 9
Financial Instruments on 1 January 2018.
|
e
|
Other equity instruments includes AT1 securities issued by Barclays
Bank PLC and borrowings of $3.5bn from a wholly-owned, indirect subsidiary of
BBPLC. The borrowings have been recorded as equity since, under
their terms, interest payments are non cumulative and discretionary
whilst repayment of principal is perpetually deferrable by BBPLC.
Should BBPLC make a discretionary dividend payment on its ordinary
shares in the 6 months preceding the date of an interest payment,
it will be obliged to make that interest
payment.
|
f
|
Following
a review of certain equity instruments, certain instruments have
been deemed to have characteristics that would qualify them as debt
and have subsequently been reclassified.
|
Cash flow statement
|
|
|
||
|
|
2019
|
2018
|
2017a
|
For the year ended 31 December
|
Notes
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
|
Reconciliation of profit before tax to net cash flows from
operating activities:
|
|
|
|
|
Profit before tax
|
|
2,018
|
697
|
192
|
Adjustment for non-cash items:
|
|
|
|
|
Credit impairment charges
|
|
235
|
(123)
|
258
|
Depreciation, amortisation and impairment of property, plant,
equipment and intangibles
|
|
67
|
41
|
289
|
Other provisions, including pensions
|
|
268
|
1,312
|
766
|
Net profit on disposal of investments and property, plant and
equipment
|
|
(128)
|
-
|
(255)
|
Other non-cash movements including exchange rate
movements
|
|
1,125
|
(4,111)
|
934
|
Changes in operating assets and liabilities
|
|
|
|
|
Net (increase)/decrease in cash collateral and settlement
balances
|
|
(9,231)
|
(4,049)
|
7,407
|
Net (increase)/decrease in loans and advances
|
|
(1,895)
|
8,246
|
31,575
|
Net decrease/ (increase) in reverse repurchase agreements and other
similar lending
|
|
1,551
|
2,870
|
(11)
|
Net (decrease)/increase in deposits and debt securities in
issue
|
|
(2,840)
|
18,100
|
666
|
Net increase/(decrease) in repurchase agreements and other similar
borrowing
|
|
899
|
(6,034)
|
16,946
|
Net (increase)/decrease in derivative financial
instruments
|
|
(3,863)
|
9,242
|
6,452
|
Net (increase)/decrease in trading assets
|
|
(5,599)
|
6,751
|
(43,284)
|
Net (decrease)/ increase in trading liabilities
|
|
(1,496)
|
7,509
|
9,838
|
Net decrease/(increase) in financial assets and liabilities at fair
value through income statement
|
|
7,290
|
(30,019)
|
30,892
|
Net (increase)/decrease in other assets
|
|
(349)
|
2,444
|
2,703
|
Net (decrease) in other liabilities
|
|
(1,006)
|
(6,463)
|
(4,125)
|
Corporate income tax received/(paid)
|
9
|
919
|
(150)
|
462
|
Net cash from operating activities
|
|
(12,035)
|
6,263
|
61,705
|
Purchase of financial assets at fair value through other
comprehensive income
|
|
(61,877)
|
(101,046)
|
-
|
Purchase of available for sale investments
|
|
|
-
|
(78,524)
|
Proceeds from sale or redemption of financial assets at fair value
through other comprehensive income
|
|
62,915
|
101,683
|
-
|
Proceeds from sale or redemption of available for sale
investments
|
|
|
-
|
84,927
|
Purchase of property, plant and equipment and
intangibles
|
|
(139)
|
(235)
|
(406)
|
Proceeds from sale of property, plant and equipment and
intangibles
|
|
|
63
|
2,074
|
Disposal of discontinued operation, net of cash
disposed
|
|
-
|
(39,679)
|
-
|
Disposal of subsidiaries and/or branches and/or associates, net of
cash disposed
|
|
587
|
(2,189)
|
1,880
|
Net (increase)/decrease in investment in subsidiaries
|
|
(1,494)
|
(859)
|
(183)
|
Other cash flows associated with investing activities
|
|
-
|
-
|
569
|
Net cash from investing activities
|
|
(8)
|
(42,262)
|
10,337
|
Dividends paid
|
|
(1,113)
|
(1,142)
|
(1,428)
|
Issuance of subordinated debt
|
27
|
6,627
|
-
|
3,041
|
Redemption of subordinated debt
|
27
|
(6,402)
|
(3,246)
|
(1,371)
|
Issue of shares and other equity instruments
|
28
|
2,292
|
4,691
|
2,495
|
Redemption of shares and other equity instruments
|
|
(1,970)
|
(3,588)
|
(1,339)
|
Capital contribution from Barclays PLC
|
|
-
|
2,000
|
-
|
Vesting of shares under employee share schemes
|
|
(349)
|
(418)
|
-
|
Net cash from financing activities
|
|
(915)
|
(1,703)
|
1,398
|
Effect of exchange rates on cash and cash equivalents
|
|
(2,753)
|
3,580
|
(2,501)
|
Net (decrease)/increase in cash and cash equivalents from
continuing operations
|
|
(15,711)
|
(34,122)
|
70,939
|
Net cash from discontinued operation
|
40
|
-
|
(528)
|
604
|
Net (decrease)/increase in cash and cash equivalents
|
|
(15,711)
|
(34,650)
|
71,543
|
Cash and cash equivalents at beginning of year
|
|
159,043
|
193,693
|
122,150
|
Cash and cash equivalents at end of year
|
|
143,332
|
159,043
|
193,693
|
Cash and cash equivalents comprise:
|
|
|
|
|
Cash and balances at central banks
|
|
112,287
|
126,002
|
165,713
|
Loans and advances to banks with original maturity less than three
months
|
|
11,823
|
10,648
|
8,996
|
Cash collateral and settlement balances with banks with original
maturity less than three months
|
|
18,781
|
21,476
|
18,313
|
Treasury and other eligible bills with original maturity less than
three months
|
|
441
|
917
|
643
|
Trading portfolio assets with original maturity less than three
months
|
|
-
|
-
|
28
|
|
|
143,332
|
159,043
|
193,693
|
a
|
Following
the sale of the UK banking business on 1 April 2018 by the Group,
the continuing operations for 2017 have been restated to disclose
the UK banking business as a discontinued operation. Further detail
on the discontinued operations can be found in Note 39 of the
Barclays Bank PLC Annual Report.
|
1
|
Significant accounting policies
|
1.
|
Reporting entity
|
2.
|
Compliance with International Financial Reporting
Standards
|
3.
|
Basis of preparation
|
4.
|
Accounting policies
|
(i)
|
Consolidation
|
1)
|
power
over the relevant activities of the investee, for example through
voting or other rights
|
2)
|
exposure
to, or rights to, variable returns from its involvement with the
investee, and
|
3)
|
the
ability to affect those returns through its power over the
investee.
|
(ii)
|
Foreign currency translation
|
(iii)
|
Financial assets and liabilities
|
i)
|
the
business model within which financial assets are managed,
and
|
ii)
|
their
contractual cash flow characteristics (whether the cash flows
represent ‘solely payments of principal and interest’
(SPPI)).
|
(iv)
|
Issued debt and equity instruments
|
5.
|
New and amended standards and interpretations
|
●
|
To
calculate the right of use asset equal to the lease liability,
adjusted for prepaid or accrued payments
|
●
|
To rely
on the previous assessment of whether leases are onerous in
accordance with IAS 37 immediately before the date of initial
application as an alternative to performing an impairment review.
The Barclays Bank Group adjusted the carrying amount of the ROU
asset at the date of initial application by the previous carrying
amount of its onerous lease provision
|
●
|
To
apply the recognition exception for leases with a term not
exceeding 12 months, and
|
●
|
To use
hindsight in determining the lease term if the contract contains
options to extend or terminate the lease.
|
●
|
An
increase in the ROU asset as a result of rental prepayments of
£14m, and
|
●
|
A
decrease in the ROU asset as a result of onerous lease provisions
previously recognised of £46m, £25m of rent free
adjustments and £3m of finance sublease
arrangements.
|
|
£m
|
Operating lease commitment as at 31 December 2018 as disclosed in
the Barclays Bank Group consolidated financial
statements
|
1,071
|
Impact of discounting using the Barclays Bank Group's incremental
borrowing rate
|
(488)
|
Recognition exemption for short term leases
|
(3)
|
Extension and termination options reasonably certain to be
exercised
|
(11)
|
Lease liability recognised as at 1 January 2019
|
569
|
●
|
Highly
probable requirement
When
determining whether a forecast transaction or cash flow is highly
probable, the Barclays Bank Group assumes that the interest rate
benchmark on which the hedged cash flows are based is not altered
as a result of the reform. This amendment has also been applied
when cash flows are still expected to occur in respect of amounts
remaining in the cash flow hedge reserve.
|
●
|
Prospective
assessments
When
performing prospective assessments, the Barclays Bank Group assumes
that the interest rate benchmark on which the hedged risk and/or
hedging instrument are based is not altered as a result of the
interest rate benchmark reform.
|
●
|
Retrospective
assessments
The
Barclays Bank Group will not discontinue hedge accounting during
the period of IBOR-related uncertainty solely because the
retrospective effectiveness falls outside the required 80-125%
range.
|
●
|
Hedge
of a non-contractually specified benchmark portion of an interest
rate
The
Barclays Bank Group only considers at inception of such a hedging
relationship whether the separately identifiable requirement is
met.
|
6.
|
Critical accounting estimates and judgements
|
●
|
Credit
impairment charges on pages 149 to 153
|
●
|
Tax on
pages 154 to 160
|
●
|
Fair
value of financial instruments on pages 175 to 188
|
●
|
Pensions
and post-retirement benefits – obligations on pages 215 to
220
|
●
|
Provisions
including conduct and legal, competition and regulatory matters on
pages 199 to 205.
|
7.
|
Other disclosures
|
●
|
Credit
risk on pages 44 to 45 and on pages 52 to 86
|
●
|
Market
risk on page 45
|
●
|
Treasury
and capital risk – capital on pages 45 to 46 and on pages 90
to 99
|
●
|
Treasury
and capital risk – liquidity on page 46 to 47 and on pages
100 to 106.
|
2
|
Segmental reporting
|
●
|
Corporate and Investment Bank which includes the
international Corporate business and the Investment
Bank.
|
●
|
Consumer, Cards and Payments which includes Barclays US
Consumer Bank, Barclaycard Germany, Barclays Partner Finance,
Barclaycard Commercial Payments, Barclaycard Payment Solutions and
the international Wealth business.
|
Analysis of results by business
|
|
|
||
|
Corporate and
Investment Bank
|
Consumer, Cards
and Payments
|
Head
Office
|
Barclays Bank
Group
|
|
£m
|
£m
|
£m
|
£m
|
For the year ended 31 December 2019
|
|
|
|
|
Total income
|
10,009
|
4,462
|
(320)
|
14,151
|
Credit impairment charges
|
(157)
|
(1,016)
|
(29)
|
(1,202)
|
Net operating income/(expenses)
|
9,852
|
3,446
|
(349)
|
12,949
|
Operating expenses
|
(7,267)
|
(2,359)
|
(92)
|
(9,718)
|
Litigation and conduct
|
(108)
|
(7)
|
(149)
|
(264)
|
Total operating expenses
|
(7,375)
|
(2,366)
|
(241)
|
(9,982)
|
Other net income/(expenses)a
|
113
|
40
|
(8)
|
145
|
Profit/(loss) before tax
|
2,590
|
1,120
|
(598)
|
3,112
|
Total assets (£bn)
|
799.6
|
65.7
|
11.4
|
876.7
|
Number of employees (full time equivalent)
|
8,100
|
3,100
|
9,300
|
20,500
|
Average number of employees (full time equivalent)
|
|
|
|
|
|
Corporate and Investment Bank
|
Consumer, Cards
and Payments
|
Head
Office
|
Barclays Bank
Group
|
|
£m
|
£m
|
£m
|
£m
|
For the year ended 31 December 2018
|
|
|
|
|
Total incomeb
|
9,741
|
4,267
|
(408)
|
13,600
|
Credit impairment releases/(charges)
|
152
|
(808)
|
13
|
(643)
|
Net operating income/(expenses)
|
9,893
|
3,459
|
(395)
|
12,957
|
Operating expenses
|
(7,459)
|
(2,304)
|
(130)
|
(9,893)
|
GMP charge
|
-
|
-
|
(140)
|
(140)
|
Litigation and conduct
|
(68)
|
(59)
|
(1,579)
|
(1,706)
|
Total operating expenses
|
(7,527)
|
(2,363)
|
(1,849)
|
(11,739)
|
Other net income/(expenses)a
|
28
|
41
|
(1)
|
68
|
Profit/(loss) before tax
|
2,394
|
1,137
|
(2,245)
|
1,286
|
Total assets (£bn)
|
792.5
|
71.6
|
13.6
|
877.7
|
Number of employees (full time equivalent)
|
9,100
|
3,300
|
10,000
|
22,400
|
a
|
Other
net income/(expenses) represents the share of post-tax results of
associates and joint ventures, profit (or loss) on disposal of
subsidiaries, associates and joint ventures, and gains on
acquisitions.
|
b
|
£351m
of certain capital instrument funding costs are now charged to Head
Office, the impact of which would have been materially the same if
the charges had been included in full year 2017.
|
|
Corporate and
Investment Bank
|
Consumer, Cards
and Payments
|
Head
Office
|
Barclays
Non-Corea
|
Barclays Bank Group
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
For the year ended 31 December 2017
|
|
|
|
|
|
Total income
|
9,901
|
4,504
|
(148)
|
(527)
|
13,730
|
Credit impairment charges
|
(213)
|
(1,293)
|
(17)
|
(30)
|
(1,553)
|
Net operating income/(expenses)
|
9,688
|
3,211
|
(165)
|
(557)
|
12,177
|
Operating expenses
|
(7,610)
|
(2,167)
|
(202)
|
(251)
|
(10,230)
|
Litigation and conduct
|
(267)
|
(2)
|
(151)
|
(28)
|
(448)
|
Total operating expenses
|
(7,877)
|
(2,169)
|
(353)
|
(279)
|
(10,678)
|
Other net incomeb
|
133
|
121
|
(192)
|
197
|
259
|
Profit before tax from continuing operations
|
1,944
|
1,163
|
(710)
|
(639)
|
1,758
|
Total assets (£bn)c
|
788.7
|
67.4
|
35.8
|
-
|
1,129.3
|
Number of employees (full time equivalent)
|
8,800
|
2,700
|
10,300
|
-
|
21,800
|
a
|
Barclays
Non-Core segment was closed on 1 July 2017, with financial
performance subsequently reported in Corporate and Investment Bank,
Head Office and UK banking business.
|
b
|
Other
net income/(expenses) represents the share of post-tax results of
associates and joint ventures, profit (or loss) on disposal of
subsidiaries, associates and joint ventures, and gains on
acquisitions.
|
c
|
Total
assets for UK banking business are included within Barclays Bank
Group for 2017.
|
Income by geographic
regiona
|
|
|
|
|
2019
|
2018
|
2017
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
United Kingdom
|
4,084
|
4,007
|
3,582
|
Europe
|
1,752
|
1,615
|
1,985
|
Americas
|
7,251
|
7,048
|
7,194
|
Africa and Middle East
|
62
|
44
|
137
|
Asia
|
1,002
|
886
|
832
|
Total
|
14,151
|
13,600
|
13,730
|
|
|
|
|
Income from individual countries which
represent more than 5% of total incomea
|
|
|
|
|
2019
|
2018
|
2017
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Continuing operations
|
|
|
|
United Kingdom
|
4,084
|
4,007
|
3,582
|
United States
|
7,121
|
6,916
|
7,049
|
a
|
The
geographical analysis is now based on the location of office where
the transactions are recorded, whereas it was previously based on
counterparty location. The new approach is better aligned to the
geographical view of the business following the implementation of
structural reform. Prior year comparatives have been
restated.
|
3
|
Net fee and commission income
|
|
2019
|
|||
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Head Office
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
Fee type
|
|
|
|
|
Transactional
|
391
|
2,418
|
-
|
2,809
|
Advisory
|
821
|
83
|
-
|
904
|
Brokerage and execution
|
1,082
|
49
|
-
|
1,131
|
Underwriting and syndication
|
2,358
|
-
|
-
|
2,358
|
Other
|
90
|
227
|
30
|
347
|
Total revenue from contracts with customers
|
4,742
|
2,777
|
30
|
7,549
|
Other non-contract fee income
|
110
|
5
|
-
|
115
|
Fee and commission income
|
4,852
|
2,782
|
30
|
7,664
|
Fee and commission expense
|
(743)
|
(1,249)
|
-
|
(1,992)
|
Net fee and commission income
|
4,109
|
1,533
|
30
|
5,672
|
|
2018
|
|||
|
Corporate and Investment Bank
|
Consumer, Cards and Payments
|
Head Office
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
Fee type
|
|
|
|
|
Transactional
|
366
|
2,248
|
-
|
2,614
|
Advisory
|
772
|
78
|
-
|
850
|
Brokerage and execution
|
1,002
|
71
|
-
|
1,073
|
Underwriting and syndication
|
2,462
|
-
|
-
|
2,462
|
Other
|
24
|
222
|
29
|
275
|
Total revenue from contracts with customers
|
4,626
|
2,619
|
29
|
7,274
|
Other non-contract fee income
|
114
|
4
|
-
|
118
|
Fee and commission income
|
4,740
|
2,623
|
29
|
7,392
|
Fee and commission expense
|
(657)
|
(1,128)
|
-
|
(1,785)
|
Net fee and commission income
|
4,083
|
1,495
|
29
|
5,607
|
|
2017
|
|
£m
|
Fee and commission income
|
|
Banking, investment management and credit related fees and
commissions
|
7,352
|
Foreign exchange commission
|
72
|
Fee and commission income
|
7,424
|
Fee and commission expense
|
(1,726)
|
Net fee and commission income
|
5,698
|
a
|
The
Barclays Group elected the cumulative effect transition method on
adoption of IFRS 15 for 1 January 2018, and recognised in retained
earnings without restating comparative periods. The comparative
figures are reported under IAS 18.
|
4
|
Tax
|
|
2019
|
2018
|
2017
|
|
£m
|
£m
|
£m
|
Current tax charge/(credit)
|
|
|
|
Current yeara
|
327
|
94
|
(489)
|
Adjustments in respect of prior years
|
(50)
|
(200)
|
44
|
|
277
|
(106)
|
(445)
|
Deferred tax charge/(credit)
|
|
|
|
Current year
|
157
|
372
|
1,862
|
Adjustments in respect of prior years
|
(102)
|
(37)
|
(65)
|
|
55
|
335
|
1,797
|
Tax charge
|
332
|
229
|
1,352
|
a
|
From
2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. Comparatives have been restated, reducing the
tax charge for 2018 by £175m and 2017 by £174m. Further
detail can be found in Note 1.
|
|
2019
|
2019
|
2018
|
2018
|
2017
|
2017
|
|
£m
|
%
|
£m
|
%
|
£m
|
%
|
Profit before tax from continuing operations
|
3,112
|
|
1,286
|
|
1,758
|
|
Tax charge based on the standard UK corporation tax rate of 19%
(2018: 19%, 2017: 19.25%)
|
593
|
19.0%
|
244
|
19.0%
|
339
|
19.3%
|
Impact of profits/losses earned in territories with different
statutory rates to the UK (weighted average tax rate is 26% (2018:
27.1%, 2017: 38.2%))
|
217
|
7.0%
|
104
|
8.1%
|
333
|
18.9%
|
|
|
|
|
|
|
|
Recurring items:
|
|
|
|
|
|
|
Non-creditable taxes including withholding taxes
|
146
|
4.7%
|
156
|
12.1%
|
191
|
10.9%
|
Impact of UK bank levy being non-deductible
|
35
|
1.1%
|
42
|
3.3%
|
59
|
3.4%
|
Non-deductible expenses
|
34
|
1.1%
|
67
|
5.2%
|
76
|
4.3%
|
Impact of Barclays Bank PLC's overseas branches being taxed both
locally and in the UK
|
15
|
0.5%
|
16
|
1.2%
|
(61)
|
(3.5%)
|
Tax adjustments in respect of share-based payments
|
(7)
|
(0.2%)
|
11
|
0.9%
|
2
|
0.1%
|
Changes in recognition of deferred tax and effect of unrecognised
tax losses
|
(85)
|
(2.7%)
|
(104)
|
(8.1%)
|
(72)
|
(4.1%)
|
Banking surcharge and other itemsa
|
(103)
|
(3.3%)
|
(69)
|
(5.4%)
|
(108)
|
(6.1%)
|
AT1 tax credita
|
(121)
|
(3.9%)
|
(123)
|
(9.6%)
|
(123)
|
(7.0%)
|
Adjustments in respect of prior years
|
(152)
|
(4.9%)
|
(237)
|
(18.4%)
|
(21)
|
(1.2%)
|
Non-taxable gains and income
|
(240)
|
(7.7%)
|
(232)
|
(18.0%)
|
(191)
|
(10.9%)
|
|
|
|
|
|
|
|
Non-recurring items:
|
|
|
|
|
|
|
One off re-measurement of US deferred tax assets
|
-
|
-
|
-
|
-
|
1,177
|
67.0%
|
Impact of the UK branch exemption on deferred tax
assets
|
-
|
-
|
-
|
-
|
(276)
|
(15.7%)
|
Non-deductible provisions for UK customer redress
|
-
|
-
|
8
|
0.6%
|
-
|
-
|
Non-deductible provisions for investigations and
litigation
|
-
|
-
|
346
|
26.9%
|
66
|
3.8%
|
Non-taxable gains and income on divestments
|
-
|
-
|
-
|
-
|
(39)
|
(2.2%)
|
Total tax charge
|
332
|
10.7%
|
229
|
17.8%
|
1,352
|
76.9%
|
a
|
From
2019, due to an IAS 12 update, the tax relief on payments in
relation to AT1 instruments has been recognised in the tax charge
of the income statement, whereas it was previously recorded in
retained earnings. The tax charge for the current period has been
reduced by £171m (relief at the standard UK corporation tax
rate is £121m and the relief at the banking surcharge rate is
£50m). Comparatives have been restated, reducing the tax
charge for 2018 by £175m and 2017 by £174m (relief at the
standard UK corporation tax rate is £123m (2017 and 2018) and
the relief at the banking surcharge rate is £52m (2018) and
£51m (2017)). The table above has the AT1 tax credit for the
current year and prior periods split between the AT1 tax credit
line and the banking surcharge line. Further detail can be found in
Note 1.
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
Assets
|
1,713
|
376
|
1,439
|
115
|
Liabilities
|
(621)
|
(494)
|
(376)
|
(242)
|
As at 1 January
|
1,092
|
(118)
|
1,063
|
(127)
|
Income statement from continuing operationsa
|
(277)
|
106
|
41
|
371
|
Income statement from discontinued UK banking business
|
-
|
(90)
|
-
|
(87)
|
Other comprehensive income and reservesa
|
293
|
(7)
|
288
|
(31)
|
Corporate income tax (received)/paid
|
(894)
|
409
|
(919)
|
150
|
Transfer to Barclays Bank UK PLCb
|
-
|
677
|
-
|
676
|
Other movements
|
364
|
115
|
252
|
111
|
|
578
|
1,092
|
725
|
1,063
|
Assets
|
898
|
1,713
|
946
|
1,439
|
Liabilities
|
(320)
|
(621)
|
(221)
|
(376)
|
As at 31 December
|
578
|
1,092
|
725
|
1,063
|
a
|
Due to
the IAS 12 update impacting AT1 tax credits, the 2018 comparative
has been restated to reflect the £175m tax credit in the
income statement, whereas it was previously recorded in retained
earnings. Further detail can be found in Note 1.
|
b
|
Related
to the transfer of current tax liabilities to Barclays Bank UK PLC
as part of the disposal of the UK banking business.
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
Intermediate Holding Company ("IHC Tax Group")
|
1,037
|
1,454
|
-
|
-
|
US Branch Tax Group
|
1,015
|
1,087
|
1,015
|
1,087
|
UK Tax Group
|
-
|
3
|
-
|
5
|
Other
|
408
|
426
|
100
|
157
|
Deferred tax asset
|
2,460
|
2,970
|
1,115
|
1,249
|
Deferred tax liability - UK Tax Group
|
(80)
|
-
|
(80)
|
-
|
Net deferred tax
|
2,380
|
2,970
|
1,035
|
1,249
|
Barclays Bank Group
|
Fixed asset timing differences
|
Fair value through other comprehensive income
|
Cash flow hedges
|
Retirement benefit obligations
|
Loan impairment allowance
|
Other provisions
|
Tax losses carried forward
|
Share based payments and deferred compensation
|
Other
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Assets
|
758
|
175
|
38
|
39
|
359
|
112
|
529
|
309
|
1,336
|
3,655
|
Liabilities
|
(16)
|
(35)
|
(2)
|
(434)
|
-
|
-
|
-
|
-
|
(198)
|
(685)
|
At 1 January 2019
|
742
|
140
|
36
|
(395)
|
359
|
112
|
529
|
309
|
1,138
|
2,970
|
Income statement
|
66
|
-
|
-
|
(5)
|
(55)
|
23
|
17
|
(7)
|
(94)
|
(55)
|
Other comprehensive income and reserves
|
-
|
(46)
|
(175)
|
(205)
|
(10)
|
2
|
-
|
8
|
71
|
(355)
|
Other movements
|
(118)
|
(2)
|
-
|
(4)
|
(10)
|
(10)
|
(23)
|
(5)
|
(8)
|
(180)
|
|
690
|
92
|
(139)
|
(609)
|
284
|
127
|
523
|
305
|
1,107
|
2,380
|
Assets
|
719
|
110
|
-
|
31
|
284
|
127
|
523
|
305
|
1,329
|
3,428
|
Liabilities
|
(29)
|
(18)
|
(139)
|
(640)
|
-
|
-
|
-
|
-
|
(222)
|
(1,048)
|
At 31 December 2019
|
690
|
92
|
(139)
|
(609)
|
284
|
127
|
523
|
305
|
1,107
|
2,380
|
|
|
|
|
|
|
|
|
|
|
|
Assetsa
|
1,232
|
188
|
1
|
49
|
735
|
157
|
596
|
341
|
1,346
|
4,645
|
Liabilities
|
(28)
|
(143)
|
(69)
|
(218)
|
-
|
-
|
-
|
-
|
(208)
|
(666)
|
At 1 January 2018a
|
1,204
|
45
|
(68)
|
(169)
|
735
|
157
|
596
|
341
|
1,138
|
3,979
|
Income statement from continuing operations
|
61
|
(9)
|
-
|
(124)
|
(76)
|
(62)
|
(104)
|
(28)
|
7
|
(335)
|
Income statement from discontinued UK banking business
|
(48)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(48)
|
Other comprehensive income and reserves
|
-
|
97
|
103
|
(98)
|
(18)
|
8
|
1
|
(10)
|
(8)
|
75
|
Transfer to Barclays Bank UK PLCb
|
(447)
|
-
|
-
|
-
|
(279)
|
-
|
-
|
-
|
(21)
|
(747)
|
Other movements
|
(28)
|
7
|
1
|
(4)
|
(3)
|
9
|
36
|
6
|
22
|
46
|
|
742
|
140
|
36
|
(395)
|
359
|
112
|
529
|
309
|
1,138
|
2,970
|
Assets
|
758
|
175
|
38
|
39
|
359
|
112
|
529
|
309
|
1,336
|
3,655
|
Liabilities
|
(16)
|
(35)
|
(2)
|
(434)
|
-
|
-
|
-
|
-
|
(198)
|
(685)
|
At 31 December 2018
|
742
|
140
|
36
|
(395)
|
359
|
112
|
529
|
309
|
1,138
|
2,970
|
a
|
Due to
the adoption of IFRS 9 and IFRS 15 on 1 January 2018, additional
deferred tax assets of £627m were recognised.
|
b
|
Related
to the transfer of deferred tax assets to Barclays Bank UK PLC as
part of the disposal of the UK banking business.
|
Barclays Bank PLC
|
Fixed asset timing differences
|
Fair value through other comprehensive income
|
Cash flow hedges
|
Retirement benefit obligations
|
Loan impairment allowance
|
Other provisions
|
Tax losses carried forward
|
Share based payments and deferred compensation
|
Other
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Assets
|
651
|
171
|
38
|
20
|
182
|
61
|
167
|
79
|
475
|
1,844
|
Liabilities
|
-
|
(35)
|
(2)
|
(433)
|
-
|
-
|
-
|
-
|
(125)
|
(595)
|
At 1 January 2019
|
651
|
136
|
36
|
(413)
|
182
|
61
|
167
|
79
|
350
|
1,249
|
Income statement
|
54
|
-
|
-
|
(7)
|
3
|
23
|
200
|
9
|
67
|
349
|
Other comprehensive income and reserves
|
-
|
(47)
|
(175)
|
(206)
|
(9)
|
2
|
-
|
2
|
71
|
(362)
|
Other movements
|
(115)
|
1
|
-
|
(12)
|
(4)
|
(15)
|
(15)
|
-
|
(41)
|
(201)
|
|
590
|
90
|
(139)
|
(638)
|
172
|
71
|
352
|
90
|
447
|
1,035
|
Assets
|
602
|
108
|
-
|
-
|
172
|
71
|
352
|
90
|
618
|
2,013
|
Liabilities
|
(12)
|
(18)
|
(139)
|
(638)
|
-
|
-
|
-
|
-
|
(171)
|
(978)
|
At 31 December 2019
|
590
|
90
|
(139)
|
(638)
|
172
|
71
|
352
|
90
|
447
|
1,035
|
|
|
|
|
|
|
|
|
|
|
|
Assetsa
|
1,145
|
172
|
1
|
21
|
474
|
51
|
285
|
98
|
629
|
2,876
|
Liabilities
|
-
|
(142)
|
(68)
|
(218)
|
-
|
-
|
-
|
-
|
(174)
|
(602)
|
At 1 January 2018a
|
1,145
|
30
|
(67)
|
(197)
|
474
|
51
|
285
|
98
|
455
|
2,274
|
Income statement from continuing operations
|
44
|
9
|
-
|
(124)
|
7
|
(18)
|
(119)
|
(6)
|
43
|
(164)
|
Income statement from discontinued UK banking business
|
(48)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(48)
|
Other comprehensive income and reserves
|
-
|
94
|
103
|
(93)
|
(10)
|
25
|
-
|
(4)
|
(8)
|
107
|
Transfer to Barclays Bank UK PLCb
|
(447)
|
-
|
-
|
-
|
(279)
|
-
|
-
|
-
|
(21)
|
(747)
|
Other movements
|
(43)
|
3
|
-
|
1
|
(10)
|
3
|
1
|
(9)
|
(119)
|
(173)
|
|
651
|
136
|
36
|
(413)
|
182
|
61
|
167
|
79
|
350
|
1,249
|
Assets
|
651
|
171
|
38
|
20
|
182
|
61
|
167
|
79
|
475
|
1,844
|
Liabilities
|
-
|
(35)
|
(2)
|
(433)
|
-
|
-
|
-
|
-
|
(125)
|
(595)
|
At 31 December 2018
|
651
|
136
|
36
|
(413)
|
182
|
61
|
167
|
79
|
350
|
1,249
|
a
|
Due to
the adoption of IFRS 9 and IFRS 15 on 1 January 2018, additional
deferred tax assets of £411m were recognised.
|
b
|
Related
to the transfer of deferred tax assets to Barclays Bank UK PLC as
part of the disposal of the UK banking business.
|
5
|
Dividends on ordinary shares and other equity
instruments
|
6
|
Fair value of financial instruments
|
Assets and liabilities held at fair value
|
|
|
||||||
|
2019
|
2018
|
||||||
|
Valuation technique using
|
Valuation technique using
|
||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Barclays Bank Group
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
59,968
|
51,105
|
2,264
|
113,337
|
51,029
|
49,396
|
3,613
|
104,038
|
Financial assets at fair value through the income
statement
|
10,300
|
115,008
|
4,162
|
129,470
|
8,918
|
131,682
|
4,650
|
145,250
|
Derivative financial assets
|
5,439
|
221,048
|
3,154
|
229,641
|
6,813
|
210,655
|
5,215
|
222,683
|
Financial assets at fair value through other comprehensive
income
|
11,577
|
33,400
|
429
|
45,406
|
15,751
|
28,888
|
355
|
44,994
|
Investment property
|
-
|
-
|
13
|
13
|
-
|
-
|
9
|
9
|
Total assets
|
87,284
|
420,561
|
10,022
|
517,867
|
82,511
|
420,621
|
13,842
|
516,974
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(19,645)
|
(15,567)
|
-
|
(35,212)
|
(19,401)
|
(17,210)
|
(3)
|
(36,614)
|
Financial liabilities designated at fair value
|
(82)
|
(204,021)
|
(343)
|
(204,446)
|
(76)
|
(217,404)
|
(261)
|
(217,741)
|
Derivative financial liabilities
|
(5,305)
|
(219,646)
|
(3,989)
|
(228,940)
|
(6,152)
|
(208,697)
|
(4,743)
|
(219,592)
|
Total liabilities
|
(25,032)
|
(439,234)
|
(4,332)
|
(468,598)
|
(25,629)
|
(443,311)
|
(5,007)
|
(473,947)
|
Assets and liabilities held at fair value
|
|
|
||||||
|
2019
|
2018
|
||||||
|
Valuation technique using
|
Valuation technique using
|
||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Barclays Bank PLC
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
43,897
|
33,283
|
1,899
|
79,079
|
33,925
|
36,093
|
3,462
|
73,480
|
Financial assets at fair value through the income
statement
|
3,877
|
155,714
|
2,909
|
162,500
|
3,971
|
171,381
|
4,013
|
179,365
|
Derivative financial assets
|
-
|
226,195
|
3,143
|
229,338
|
-
|
216,033
|
5,214
|
221,247
|
Financial assets at fair value through other comprehensive
income
|
9,991
|
33,340
|
429
|
43,760
|
14,571
|
28,780
|
355
|
43,706
|
Investment property
|
-
|
-
|
5
|
5
|
-
|
-
|
-
|
-
|
Total assets
|
57,765
|
448,532
|
8,385
|
514,682
|
52,467
|
452,287
|
13,044
|
517,798
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(36,851)
|
(8,279)
|
-
|
(45,130)
|
(30,425)
|
(16,201)
|
-
|
(46,626)
|
Financial liabilities designated at fair value
|
-
|
(207,444)
|
(321)
|
(207,765)
|
-
|
(216,715)
|
(251)
|
(216,966)
|
Derivative financial liabilities
|
-
|
(221,758)
|
(3,849)
|
(225,607)
|
-
|
(216,792)
|
(4,798)
|
(221,590)
|
Total liabilities
|
(36,851)
|
(437,481)
|
(4,170)
|
(478,502)
|
(30,425)
|
(449,708)
|
(5,049)
|
(485,182)
|
Level 3 Assets and liabilities held at fair value by product
type
|
||||
|
2019
|
2018
|
||
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
Barclays Bank Group
|
£m
|
£m
|
£m
|
£m
|
Interest rate derivatives
|
605
|
(812)
|
2,478
|
(2,456)
|
Foreign exchange derivatives
|
291
|
(298)
|
192
|
(185)
|
Credit derivatives
|
539
|
(342)
|
1,381
|
(331)
|
Equity derivatives
|
1,710
|
(2,528)
|
1,136
|
(1,743)
|
Commodity derivatives
|
9
|
(9)
|
28
|
(28)
|
Corporate debt
|
521
|
-
|
456
|
-
|
Reverse repurchase and repurchase agreements
|
-
|
(167)
|
768
|
-
|
Non-asset backed loans
|
3,280
|
-
|
4,452
|
-
|
Asset backed securities
|
756
|
-
|
688
|
-
|
Equity cash products
|
1,228
|
-
|
698
|
(3)
|
Private equity investments
|
112
|
-
|
190
|
-
|
Othera
|
971
|
(176)
|
1,375
|
(261)
|
Total
|
10,022
|
(4,332)
|
13,842
|
(5,007)
|
a
|
Other
includes commercial real estate loans, funds and fund-linked
products, issued debt, government sponsored debt and investment
property.
|
Analysis of movements in Level 3 assets and
liabilities
|
|
|
|
|
|
|
|||||
|
As at 1 January 2019
|
|
|
|
|
Total gains and losses in the period recognised in the income
statement
|
Total gains or losses recognised in OCI
|
Transfers
|
As at 31 December 2019
|
||
|
Purchases
|
Sales
|
Issues
|
Settlements
|
Trading income
|
Other income
|
In
|
Out
|
|||
Barclays Bank Group
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Corporate debt
|
388
|
126
|
(52)
|
-
|
(311)
|
1
|
-
|
-
|
45
|
(77)
|
120
|
Non-asset backed loans
|
2,263
|
1,844
|
(2,799)
|
-
|
(134)
|
24
|
-
|
-
|
200
|
(424)
|
974
|
Asset backed securities
|
664
|
202
|
(166)
|
-
|
-
|
(30)
|
-
|
-
|
16
|
(30)
|
656
|
Equity cash products
|
136
|
62
|
(40)
|
-
|
-
|
(31)
|
-
|
-
|
293
|
(28)
|
392
|
Other
|
162
|
-
|
-
|
-
|
(1)
|
(24)
|
-
|
-
|
-
|
(15)
|
122
|
Trading portfolio assets
|
3,613
|
2,234
|
(3,057)
|
-
|
(446)
|
(60)
|
-
|
-
|
554
|
(574)
|
2,264
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
1,836
|
235
|
-
|
-
|
(204)
|
99
|
(1)
|
-
|
-
|
(1)
|
1,964
|
Equity cash products
|
559
|
66
|
-
|
-
|
(2)
|
3
|
209
|
-
|
-
|
-
|
835
|
Private equity investments
|
191
|
5
|
(9)
|
-
|
(2)
|
-
|
(17)
|
-
|
-
|
(55)
|
113
|
Other
|
2,064
|
5,716
|
(5,720)
|
-
|
(9)
|
12
|
(33)
|
-
|
24
|
(804)
|
1,250
|
Financial assets at fair value through the income
statement
|
4,650
|
6,022
|
(5,729)
|
-
|
(217)
|
114
|
158
|
-
|
24
|
(860)
|
4,162
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
-
|
283
|
-
|
-
|
-
|
-
|
-
|
60
|
-
|
-
|
343
|
Asset backed securities
|
-
|
116
|
(30)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
86
|
Equity cash products
|
2
|
-
|
(1)
|
-
|
-
|
-
|
-
|
(1)
|
-
|
-
|
-
|
Other
|
353
|
-
|
-
|
-
|
(135)
|
-
|
-
|
-
|
-
|
(218)
|
-
|
Financial assets at fair value through other comprehensive
income
|
355
|
399
|
(31)
|
-
|
(135)
|
-
|
-
|
59
|
-
|
(218)
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property
|
9
|
5
|
-
|
-
|
-
|
-
|
(1)
|
-
|
-
|
-
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(3)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities designated at fair value
|
(261)
|
(179)
|
10
|
(42)
|
41
|
67
|
(2)
|
-
|
(27)
|
50
|
(343)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives
|
22
|
(9)
|
-
|
-
|
88
|
(92)
|
-
|
-
|
(177)
|
(38)
|
(206)
|
Foreign exchange derivatives
|
7
|
-
|
-
|
-
|
25
|
(12)
|
-
|
-
|
(32)
|
5
|
(7)
|
Credit derivatives
|
1,050
|
(59)
|
3
|
-
|
(866)
|
76
|
-
|
-
|
(9)
|
3
|
198
|
Equity derivatives
|
(607)
|
(296)
|
(35)
|
-
|
(2)
|
(296)
|
-
|
-
|
(37)
|
453
|
(820)
|
Net derivative financial
instrumentsa
|
472
|
(364)
|
(32)
|
-
|
(755)
|
(324)
|
-
|
-
|
(255)
|
423
|
(835)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
8,835
|
8,117
|
(8,839)
|
(42)
|
(1,512)
|
(203)
|
155
|
59
|
296
|
(1,176)
|
5,690
|
Analysis of movements in Level 3 assets and
liabilities
|
|
|
|
|
|
|
|
||||
|
As at 1 January 2018
|
Purchases
|
Sales
|
Issues
|
Settlements
|
Total gains and losses in the period recognised in the income
statement
|
Total gains or losses recognised in OCI
|
Transfers
|
As at 31 December 2018
|
||
Trading income
|
Other income
|
In
|
Out
|
||||||||
Barclays Bank Group
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Corporate debt
|
871
|
108
|
(88)
|
-
|
(23)
|
9
|
-
|
-
|
39
|
(528)
|
388
|
Non-asset backed loans
|
166
|
5,514
|
(3,480)
|
-
|
-
|
-
|
-
|
-
|
71
|
(8)
|
2,263
|
Asset backed securities
|
627
|
205
|
(168)
|
-
|
(2)
|
(21)
|
-
|
-
|
58
|
(35)
|
664
|
Equity cash products
|
68
|
18
|
(9)
|
-
|
-
|
(16)
|
-
|
-
|
107
|
(32)
|
136
|
Other
|
245
|
18
|
(55)
|
-
|
(20)
|
(32)
|
-
|
-
|
145
|
(139)
|
162
|
Trading portfolio assets
|
1,977
|
5,863
|
(3,800)
|
-
|
(45)
|
(60)
|
-
|
-
|
420
|
(742)
|
3,613
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-asset backed loans
|
6,073
|
364
|
(4,432)
|
-
|
(194)
|
25
|
-
|
-
|
-
|
-
|
1,836
|
Private equity investments
|
688
|
188
|
(7)
|
-
|
(231)
|
2
|
(10)
|
-
|
60
|
(499)
|
191
|
Equity cash products
|
398
|
87
|
(1)
|
-
|
-
|
1
|
74
|
-
|
-
|
-
|
559
|
Other
|
360
|
6,624
|
(4,920)
|
-
|
(47)
|
29
|
18
|
-
|
-
|
-
|
2,064
|
Financial assets at fair value through the income
statement
|
7,519
|
7,263
|
(9,360)
|
-
|
(472)
|
57
|
82
|
-
|
60
|
(499)
|
4,650
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity cash products
|
36
|
-
|
(16)
|
-
|
-
|
-
|
-
|
-
|
-
|
(18)
|
2
|
Private equity investments
|
129
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(129)
|
-
|
Other
|
40
|
-
|
-
|
-
|
-
|
-
|
-
|
(1)
|
314
|
-
|
353
|
Financial assets at fair value through other comprehensive
income
|
205
|
-
|
(16)
|
-
|
-
|
-
|
-
|
(1)
|
314
|
(147)
|
355
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment property
|
116
|
9
|
(115)
|
-
|
-
|
-
|
(1)
|
-
|
-
|
-
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading portfolio liabilities
|
(4)
|
-
|
-
|
-
|
-
|
(3)
|
-
|
-
|
-
|
4
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities designated at fair value
|
(480)
|
-
|
-
|
(4)
|
14
|
33
|
(3)
|
-
|
(225)
|
404
|
(261)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives
|
(150)
|
1
|
(1)
|
-
|
196
|
(25)
|
-
|
-
|
(71)
|
72
|
22
|
Foreign exchange derivatives
|
37
|
-
|
-
|
-
|
(9)
|
5
|
-
|
-
|
(13)
|
(13)
|
7
|
Credit derivatives
|
1,146
|
(6)
|
3
|
-
|
(12)
|
(85)
|
-
|
-
|
7
|
(3)
|
1,050
|
Equity derivatives
|
(896)
|
72
|
(570)
|
-
|
125
|
73
|
1
|
-
|
128
|
460
|
(607)
|
Commodity derivatives
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Net derivative financial
instrumentsa
|
137
|
67
|
(568)
|
-
|
300
|
(32)
|
1
|
-
|
51
|
516
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
9,470
|
13,202
|
(13,859)
|
(4)
|
(203)
|
(5)
|
79
|
(1)
|
620
|
(464)
|
8,835
|
a
|
The
derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets are £3,154m (2018:
£5,215m) and derivative financial liabilities are £3,989m
(2018: £4,743m).
|
Analysis of movements in Level 3 assets and
liabilities
|
|
|
|
|
|
|
|||||
|
As at 1 January 2019
|
|
|
|
|
Total gains and losses in the period recognised in the income
statement
|
Total gains or losses recognised in OCI
|
Transfers
|
As at 31 December 2019
|
||
|
Purchases
|
Sales
|
Issues
|
Settlements
|
Trading income
|
Other income
|
In
|
Out
|
|||
Barclays Bank PLC
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
3,462
|
2,098
|
(2,939)
|
-
|
(445)
|
(80)
|
-
|
-
|
364
|
(561)
|
1,899
|
Financial assets at fair value through the income
statement
|
4,013
|
5,903
|
(6,125)
|
-
|
(174)
|
109
|
(35)
|
-
|
23
|
(805)
|
2,909
|
Fair value through other comprehensive income
|
355
|
398
|
(30)
|
-
|
(135)
|
60
|
(1)
|
-
|
-
|
(218)
|
429
|
Investment property
|
-
|
5
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5
|
Financial liabilities designated at fair value
|
(251)
|
(221)
|
10
|
-
|
38
|
66
|
-
|
-
|
(13)
|
50
|
(321)
|
Net derivative financial instrumentsa
|
416
|
(363)
|
97
|
-
|
(785)
|
(296)
|
-
|
-
|
(127)
|
352
|
(706)
|
Total
|
7,995
|
7,820
|
(8,987)
|
-
|
(1,501)
|
(141)
|
(36)
|
-
|
247
|
(1,182)
|
4,215
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of movements in Level 3 assets and
liabilities
|
|
|
|
|
|
|
|||||
|
As at 1 January 2018
|
|
|
|
|
Total gains and losses in the period recognised in the income
statement
|
Total gains or losses recognised in OCI
|
Transfers
|
As at 31 December 2019
|
||
|
Purchases
|
Sales
|
Issues
|
Settlements
|
Trading income
|
Other income
|
In
|
Out
|
|||
Barclays Bank PLC
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
1,929
|
5,722
|
(3,724)
|
-
|
(44)
|
(45)
|
-
|
-
|
354
|
(730)
|
3,462
|
Financial assets at fair value through the income
statement
|
7,404
|
6,867
|
(9,356)
|
-
|
(78)
|
(6)
|
73
|
-
|
12
|
(903)
|
4,013
|
Fair value through other comprehensive income
|
187
|
-
|
(16)
|
-
|
-
|
-
|
-
|
(1)
|
314
|
(129)
|
355
|
Financial liabilities designated at fair value
|
(226)
|
-
|
-
|
(4)
|
6
|
33
|
-
|
-
|
(225)
|
165
|
(251)
|
Net derivative financial instrumentsa
|
(16)
|
67
|
(568)
|
-
|
354
|
11
|
1
|
-
|
51
|
516
|
416
|
Total
|
9,278
|
12,656
|
(13,664)
|
(4)
|
238
|
(7)
|
74
|
(1)
|
506
|
(1,081)
|
7,995
|
a
|
The
derivative financial instruments are represented on a net basis. On
a gross basis, derivative financial assets are £3,143m (2018:
£5,214m) and derivative financial liabilities are £3,849m
(2018: £4,798m).
|
Unrealised gains and losses recognised during the period on Level 3
assets and liabilities held at year end
|
||||||||
|
2019
|
2018
|
||||||
|
Income statement
|
Other compre-
hensive
income
|
|
Income statement
|
Other
compre-
hensive income
|
|
||
Barclays Bank Group
|
Trading income
|
Other income
|
Total
|
Trading income
|
Other income
|
Total
|
||
As at 31 December
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
(57)
|
-
|
-
|
(57)
|
(60)
|
-
|
-
|
(60)
|
Financial assets at fair value through the income
statement
|
101
|
199
|
-
|
300
|
44
|
68
|
-
|
112
|
Fair value through other comprehensive income
|
-
|
-
|
60
|
60
|
-
|
-
|
(1)
|
(1)
|
Investment property
|
-
|
(1)
|
-
|
(1)
|
-
|
(1)
|
-
|
(1)
|
Trading portfolio liabilities
|
-
|
-
|
-
|
-
|
(3)
|
-
|
-
|
(3)
|
Financial liabilities designated at fair value
|
64
|
-
|
-
|
64
|
55
|
-
|
-
|
55
|
Net derivative financial instruments
|
(459)
|
-
|
-
|
(459)
|
(14)
|
-
|
-
|
(14)
|
Total
|
(351)
|
198
|
60
|
(93)
|
22
|
67
|
(1)
|
88
|
Unrealised gains and losses recognised during the period on Level 3
assets and liabilities held at year end
|
||||||||
|
2019
|
2018
|
||||||
|
Income statement
|
Other compre-hensive income
|
Total
|
Income statement
|
Other compre-hensive income
|
Total
|
||
Barclays Bank PLC
|
Trading income
|
Other income
|
Trading income
|
Other income
|
||||
As at 31 December
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Trading portfolio assets
|
(100)
|
-
|
-
|
(100)
|
(45)
|
-
|
-
|
(45)
|
Financial assets at fair value through the income
statement
|
99
|
212
|
-
|
311
|
40
|
58
|
-
|
98
|
Fair value through other comprehensive income
|
-
|
-
|
60
|
60
|
-
|
-
|
(1)
|
(1)
|
Financial liabilities designated at fair value
|
66
|
-
|
-
|
66
|
55
|
-
|
-
|
55
|
Net derivative financial instruments
|
(430)
|
-
|
-
|
(430)
|
29
|
-
|
-
|
29
|
Total
|
(365)
|
212
|
60
|
(93)
|
79
|
58
|
(1)
|
136
|
|
Valuation technique(s) a
|
Significant unobservable inputs
|
2019
Range
|
2018
Range
|
|
||
|
Min
|
Max
|
Min
|
Max
|
Unitsb
|
||
Derivative financial
instrumentsc
|
|
|
|
|
|
|
|
Interest rate derivatives
|
Discounted cash flows
|
Inflation forwards
|
1
|
3
|
1
|
2
|
%
|
|
|
Credit spread
|
41
|
1,620
|
6
|
897
|
bps
|
|
Comparable pricing
|
Price
|
-
|
37
|
-
|
100
|
points
|
|
Option model
|
Inflation volatility
|
47
|
190
|
33
|
174
|
bps vol
|
|
|
Interest rate volatility
|
8
|
431
|
10
|
199
|
bps vol
|
|
|
IR - IR correlation
|
(30)
|
100
|
(26)
|
100
|
%
|
Credit derivatives
|
Discounted cash flows
|
Credit spread
|
72
|
200
|
142
|
209
|
bps
|
|
Comparable pricing
|
Price
|
-
|
155
|
10
|
96
|
points
|
Equity derivatives
|
Option model
|
Equity volatility
|
1
|
200
|
2
|
81
|
%
|
|
|
Equity - equity correlation
|
(20)
|
100
|
(100)
|
100
|
%
|
|
Discounted cash flow
|
Discounted margin
|
(500)
|
1,100
|
(171)
|
301
|
bps
|
Non-derivative financial instruments
|
|
|
|
|
|
|
|
Non-asset backed loans
|
Discounted cash flows
|
Loan spread
|
31
|
624
|
30
|
196
|
bps
|
|
|
Credit spread
|
180
|
1,223
|
25
|
800
|
bps
|
|
|
Price
|
-
|
133
|
-
|
118
|
points
|
|
Comparable pricing
|
Price
|
-
|
123
|
-
|
100
|
points
|
Asset backed securities
|
Comparable pricing
|
Price
|
-
|
99
|
-
|
102
|
points
|
Otherd
|
Discounted cash flows
|
Credit spread
|
126
|
649
|
143
|
575
|
bps
|
a
|
A range
has not been provided for Net Asset Value as there would be a wide
range reflecting the diverse nature of the positions.
|
b
|
The
units used to disclose ranges for significant unobservable inputs
are percentages, points and basis points. Points are a percentage
of par; for example, 100 points equals 100% of par. A basis point
equals 1/100th of 1%; for example, 150 basis points equals
1.5%.
|
c
|
Certain
derivative instruments are classified as Level 3 due to a
significant unobservable credit spread input into the calculation
of the Credit Valuation Adjustment for the instruments. The range
of significant unobservable credit spreads is between 41-1,620bps
(2018: 6-897bps).
|
d
|
Other
includes commercial real estate loans, funds and fund-linked
products, issued debt, government sponsored debt and investment
property.
|
Sensitivity analysis of valuations using unobservable
inputs
|
||||||||
|
2019
|
2018
|
||||||
|
Favourable changes
|
Unfavourable changes
|
Favourable changes
|
Unfavourable changes
|
||||
|
Income statement
|
Equity
|
Income statement
|
Equity
|
Income statement
|
Equity
|
Income statement
|
Equity
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Interest rate derivatives
|
44
|
-
|
(127)
|
-
|
80
|
-
|
(162)
|
-
|
Foreign exchange derivatives
|
5
|
-
|
(7)
|
-
|
7
|
-
|
(10)
|
-
|
Credit derivatives
|
73
|
-
|
(47)
|
-
|
126
|
-
|
(73)
|
-
|
Equity derivatives
|
114
|
-
|
(119)
|
-
|
110
|
-
|
(112)
|
-
|
Commodity derivatives
|
-
|
-
|
-
|
-
|
1
|
-
|
(1)
|
-
|
Corporate debt
|
11
|
-
|
(16)
|
-
|
10
|
-
|
(2)
|
-
|
Non asset backed loans
|
125
|
8
|
(228)
|
(8)
|
141
|
-
|
(210)
|
-
|
Equity cash products
|
123
|
-
|
(175)
|
-
|
121
|
-
|
(155)
|
-
|
Private equity investments
|
16
|
-
|
(25)
|
-
|
-
|
-
|
(10)
|
-
|
Othera
|
1
|
-
|
(1)
|
-
|
2
|
-
|
(2)
|
-
|
Total
|
512
|
8
|
(745)
|
(8)
|
598
|
-
|
(737)
|
-
|
a
|
Other
includes commercial real estate loans, funds and fund-linked
products, issued debt, government sponsored debt and investment
property.
|
|
|
|
2019
|
2018
|
|
|
|
£m
|
£m
|
Exit price adjustments derived from market bid-offer
spreads
|
|
|
(420)
|
(451)
|
Uncollateralised derivative funding
|
|
|
(57)
|
(47)
|
Derivative credit valuation adjustments
|
|
|
(135)
|
(125)
|
Derivative debit valuation adjustments
|
|
|
155
|
237
|
Barclays Bank Group
|
2019
|
2018
|
||||||||
|
Carrying amount
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
Carrying amount
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
As at 31 December
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
Loans and advances at amortised costa
|
141,636
|
141,251
|
6,827
|
69,289
|
63,133
|
136,959
|
137,435
|
223
|
66,703
|
68,452
|
Reverse repurchase agreements and other similar secured
lending
|
1,731
|
1,731
|
-
|
1,731
|
-
|
1,613
|
1,613
|
-
|
1,613
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits at amortised cost
|
(213,881)
|
(213,897)
|
(135,398)
|
(78,494)
|
(5)
|
(199,337)
|
(199,337)
|
(157,440)
|
(41,897)
|
-
|
Repurchase agreements and other similar secured
borrowing
|
(2,032)
|
(2,032)
|
-
|
(2,032)
|
-
|
(7,378)
|
(7,378)
|
-
|
(7,378)
|
-
|
Debt securities in issue
|
(33,536)
|
(33,529)
|
-
|
(31,652)
|
(1,877)
|
(39,063)
|
(39,083)
|
-
|
(36,967)
|
(2,116)
|
Subordinated liabilities
|
(33,425)
|
(34,861)
|
-
|
(34,861)
|
-
|
(35,327)
|
(36,174)
|
-
|
(36,174)
|
-
|
a
|
The
fair value hierarchy for finance lease receivables presented within
loans and advances at amortised cost, with fair value amounting to
£2,002m (2018: £2,057m), is not required as part of the
standard.
|
Barclays Bank PLC
|
2019
|
2018
|
||||||||
|
Carrying amount
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
Carrying amount
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
As at 31 December
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
Loans and advances at amortised cost
|
161,663
|
161,007
|
6,827
|
124,665
|
29,515
|
156,764
|
156,012
|
223
|
118,005
|
37,784
|
Reverse repurchase agreements and other similar secured
lending
|
4,939
|
4,939
|
-
|
4,939
|
-
|
5,766
|
5,766
|
-
|
5,766
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits at amortised cost
|
(240,631)
|
(240,630)
|
(111,940)
|
(128,685)
|
(5)
|
(231,017)
|
(231,017)
|
(141,536)
|
(89,481)
|
-
|
Repurchase agreements and other similar secured
borrowing
|
(9,185)
|
(9,185)
|
-
|
(9,185)
|
-
|
(11,113)
|
(11,113)
|
-
|
(11,113)
|
-
|
Debt securities in issue
|
(19,883)
|
(19,899)
|
-
|
(19,899)
|
-
|
(26,391)
|
(26,428)
|
-
|
(26,249)
|
(179)
|
Subordinated liabilities
|
(33,205)
|
(34,616)
|
-
|
(34,616)
|
-
|
(35,085)
|
(35,894)
|
-
|
(35,894)
|
-
|
7
|
Provisions
|
|
|
|
Undrawn contractually committed
facilities and guarantees provideda
|
|
Legal, competition and regulatory matters
|
|
|
|
Onerous contracts
|
Redundancy and restructuring
|
Customer redress
|
Sundry provisions
|
Total
|
||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Barclays Bank Group
|
|
|
|
|
|
|
|
As at December 2018
|
90
|
68
|
217
|
127
|
411
|
214
|
1,127
|
Effects of changes in accounting policiesb
|
(46)
|
-
|
-
|
-
|
-
|
-
|
(46)
|
As at 1 January 2019
|
44
|
68
|
217
|
127
|
411
|
214
|
1,081
|
Additions
|
11
|
86
|
373
|
20
|
286
|
35
|
811
|
Amounts utilised
|
(30)
|
(60)
|
-
|
(66)
|
(302)
|
(48)
|
(506)
|
Unused amounts reversed
|
-
|
(29)
|
(332)
|
(15)
|
(16)
|
(13)
|
(405)
|
Exchange and other movements
|
(5)
|
(2)
|
(6)
|
5
|
(5)
|
(17)
|
(30)
|
As at 31 December 2019
|
20
|
63
|
252
|
71
|
374
|
171
|
951
|
|
|
|
|
|
|
|
|
Barclays Bank PLC
|
|
|
|
|
|
|
|
As at December 2018
|
18
|
46
|
174
|
83
|
347
|
150
|
818
|
Effects of changes in accounting policiesb
|
(5)
|
-
|
-
|
-
|
-
|
-
|
(5)
|
As at 1 January 2019
|
13
|
46
|
174
|
83
|
347
|
150
|
813
|
Additions
|
3
|
35
|
351
|
6
|
170
|
39
|
604
|
Amounts utilised
|
(10)
|
(26)
|
-
|
(31)
|
(273)
|
(45)
|
(385)
|
Unused amounts reversed
|
(1)
|
(15)
|
(300)
|
(10)
|
(14)
|
(7)
|
(347)
|
Exchange and other movements
|
(1)
|
(17)
|
(11)
|
-
|
(2)
|
(24)
|
(55)
|
As at 31 December 2019
|
4
|
23
|
214
|
48
|
228
|
113
|
630
|
a
|
Undrawn
contractually committed facilities and guarantees provisions are
accounted for under IFRS 9.
|
b
|
Upon
adoption of IFRS 16 on 1 January 2019, £46m of onerous lease
provisions in Barclays Bank Group and £5m in Barclays Bank PLC
were transferred to right of use asset impairment allowance. Please
see note 1 for further detail.
|
8
|
Contingent liabilities and commitments
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
Guarantees and letters of credit pledged as collateral
security
|
17,006
|
15,046
|
21,818
|
21,303
|
Performance guarantees, acceptances and endorsements
|
6,771
|
4,348
|
5,525
|
4,349
|
Total contingent liabilities
|
23,777
|
19,394
|
27,343
|
25,652
|
Of which: Financial guarantees carried at fair
value
|
43
|
4
|
43
|
4
|
|
|
|
|
|
Documentary credits and other short-term trade related
transactions
|
1,291
|
1,741
|
1,216
|
1,741
|
Standby facilities, credit lines and other commitments
|
268,736
|
256,027
|
189,634
|
189,991
|
Total commitments
|
270,027
|
257,768
|
190,850
|
191,732
|
Of which: Loan commitments carried at fair
value
|
17,660
|
11,703
|
17,023
|
11,703
|
9
|
Legal, competition and regulatory matters
|
10
|
Subordinated liabilities
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
As at 1 January
|
35,327
|
24,193
|
35,085
|
24,203
|
Issuances
|
6,785
|
221
|
6,627
|
-
|
Redemptions
|
(7,804)
|
(3,246)
|
(7,632)
|
(3,246)
|
Other
|
(883)
|
14,159
|
(875)
|
14,128
|
As at 31 December
|
33,425
|
35,327
|
33,205
|
35,085
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
Undated subordinated liabilities
|
1,073
|
4,313
|
1,211
|
4,454
|
Dated subordinated liabilities
|
32,352
|
31,014
|
31,994
|
30,631
|
Total subordinated liabilities
|
33,425
|
35,327
|
33,205
|
35,085
|
Undated subordinated liabilities
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
|
2019
|
2018
|
2019
|
2018
|
|
Initial call date
|
£m
|
£m
|
£m
|
£m
|
Barclays Bank PLC externally issued subordinated
liabilities
|
|
|
|
|
|
Tier One Notes (TONs)
|
|
|
|
|
|
6% Callable Perpetual Core Tier One Notes
|
2032
|
16
|
16
|
16
|
16
|
6.86% Callable Perpetual Core Tier One Notes (USD
179m)
|
2032
|
203
|
199
|
203
|
199
|
Reserve Capital Instruments (RCIs)
|
|
|
|
|
|
6.3688% Step-up Callable Perpetual Reserve Capital
Instruments
|
2019
|
-
|
34
|
-
|
34
|
14% Step-up Callable Perpetual Reserve Capital
Instruments
|
2019
|
-
|
3,189
|
-
|
3,189
|
5.3304% Step-up Callable Perpetual Reserve Capital
Instruments
|
2036
|
53
|
51
|
53
|
51
|
Undated Notes
|
|
|
|
|
|
7.125% Undated Subordinated Notes
|
2020
|
165
|
173
|
165
|
173
|
6.125% Undated Subordinated Notes
|
2027
|
42
|
42
|
42
|
42
|
Junior Undated Floating Rate Notes (USD 38m)
|
Any interest payment date
|
29
|
30
|
100
|
104
|
Undated Floating Rate Primary Capital Notes Series 1 (USD
167m)
|
Any interest payment date
|
92
|
95
|
126
|
130
|
Undated Floating Rate Primary Capital Notes Series 2 (USD
295m)
|
Any interest payment date
|
191
|
199
|
224
|
231
|
Undated Floating Rate Primary Capital Notes Series 3
|
Any interest payment date
|
21
|
21
|
21
|
21
|
Bonds
|
|
|
|
|
|
9.25% Perpetual Subordinated Bonds (ex-Woolwich Plc)
|
2021
|
81
|
83
|
81
|
83
|
9% Permanent Interest Bearing Capital Bonds
|
At any time
|
44
|
44
|
44
|
44
|
Loans
|
|
|
|
|
|
5.03% Reverse Dual Currency Undated Subordinated Loan (JPY
8,000m)
|
2028
|
55
|
56
|
55
|
56
|
5% Reverse Dual Currency Undated Subordinated Loan (JPY
12,000m)
|
2028
|
81
|
81
|
81
|
81
|
Total undated subordinated liabilities
|
|
1,073
|
4,313
|
1,211
|
4,454
|
|
|
|
|
|
|
|
|
Dated subordinated liabilities
|
|
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
|
|
|
2019
|
2018
|
2019
|
2018
|
|
|
Initial call date
|
Maturity date
|
£m
|
£m
|
£m
|
£m
|
Barclays Bank PLC externally issued subordinated
liabilities
|
|
|
|
|
|
|
|
Floating Rate Subordinated Notes (EUR 50m)
|
|
|
2019
|
-
|
45
|
-
|
45
|
5.14% Lower Tier 2 Notes (USD 1,094m)
|
|
|
2020
|
832
|
851
|
832
|
851
|
6% Fixed Rate Subordinated Notes (EUR 1,500m)
|
|
|
2021
|
1,375
|
1,474
|
1,375
|
1,474
|
9.5% Subordinated Bonds (ex-Woolwich Plc)
|
|
|
2021
|
239
|
256
|
239
|
256
|
Subordinated Floating Rate Notes (EUR 100m)
|
|
|
2021
|
85
|
89
|
85
|
89
|
10% Fixed Rate Subordinated Notes
|
|
|
2021
|
2,157
|
2,194
|
2,157
|
2,194
|
10.179% Fixed Rate Subordinated Notes (USD 1,521m)
|
|
|
2021
|
1,123
|
1,143
|
1,123
|
1,143
|
Subordinated Floating Rate Notes (EUR 50m)
|
|
|
2022
|
43
|
45
|
43
|
45
|
6.625% Fixed Rate Subordinated Notes (EUR 1,000m)
|
|
|
2022
|
957
|
1,032
|
957
|
1,032
|
7.625% Contingent Capital Notes (USD 3,000m)
|
|
|
2022
|
2,453
|
2,502
|
2,453
|
2,502
|
Subordinated Floating Rate Notes (EUR 50m)
|
|
|
2023
|
42
|
45
|
42
|
45
|
5.75% Fixed Rate Subordinated Notes
|
|
|
2026
|
350
|
351
|
350
|
351
|
5.4% Reverse Dual Currency Subordinated Loan (JPY
15,000m)
|
|
|
2027
|
105
|
107
|
105
|
107
|
6.33% Subordinated Notes
|
|
|
2032
|
62
|
61
|
62
|
61
|
Subordinated Floating Rate Notes (EUR 68m)
|
|
|
2040
|
58
|
61
|
58
|
61
|
External issuances by other subsidiaries
|
|
|
2021-2024
|
358
|
384
|
-
|
-
|
Barclays Bank PLC notes issued intra-group to Barclays
PLC
|
|
|
|
|
|
|
|
2% Fixed Rate Subordinated Callable Notes (EUR 1,500m)
|
|
2023
|
2028
|
1,309
|
1,361
|
1,309
|
1,361
|
3.75% Fixed Rate Resetting Subordinated Callable Notes (SGD
200m)
|
|
2025
|
2030
|
116
|
116
|
116
|
116
|
5.20% Fixed Rate Subordinated Notes (USD 1,367m)
|
|
|
2026
|
1,036
|
1,001
|
1,036
|
1,001
|
4.836% Fixed Rate Subordinated Callable Notes (USD
1,200m)
|
|
2027
|
2028
|
944
|
911
|
944
|
911
|
5.088% Fixed-to-Floating Rate Subordinated Callable Notes (USD
1,300m)
|
|
2029
|
2030
|
994
|
-
|
994
|
-
|
5.25% Fixed Rate Subordinated Notes (USD 827m)
|
|
|
2045
|
651
|
-
|
651
|
-
|
4.95% Fixed Rate Subordinated Notes (USD 1,250m)
|
|
|
2047
|
849
|
-
|
849
|
-
|
Floating Rate Subordinated Notes (USD 456m)
|
|
|
2047
|
350
|
-
|
350
|
-
|
Barclays Bank PLC intra-group loans from Barclays PLC
|
|
|
|
|
|
|
|
Various Fixed Rate Subordinated Loans
|
|
|
|
7,548
|
10,147
|
7,548
|
10,147
|
Various Subordinated Floating Rate Loans
|
|
|
|
1,094
|
1,023
|
1,094
|
1,023
|
Various Fixed Rate Subordinated Callable Loans
|
|
|
|
5,225
|
3,754
|
5,225
|
3,754
|
Various Subordinated Floating Rate Callable Loans
|
|
|
|
1,997
|
2,061
|
1,997
|
2,061
|
Total dated subordinated liabilities
|
|
|
|
32,352
|
31,014
|
31,994
|
30,630
|
11
|
Ordinary shares, share premium, and other equity
|
Called
up share capital, allotted and fully paid
|
|
|
|
|
|
|
Ordinary
share capital
|
Preference
share capital
|
Share
premium
|
Total
share capital and share premium
|
Other
equity instruments
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 1 January 2019
|
2,342
|
6
|
-
|
2,348
|
7,595
|
AT1 securities issuance
|
-
|
-
|
-
|
-
|
2,302
|
AT1 securities redemption
|
-
|
-
|
-
|
-
|
(1,574)
|
As at 31 December 2019
|
2,342
|
6
|
-
|
2,348
|
8,323
|
|
|
|
|
|
|
As at 1 January 2018
|
2,342
|
19
|
12,092
|
14,453
|
8,982
|
AT1 securities issuance
|
-
|
-
|
-
|
-
|
1,925
|
AT1 securities redemption
|
-
|
-
|
-
|
-
|
(1,242)
|
Redemption of preference shares
|
-
|
(13)
|
-
|
(13)
|
-
|
Capital reorganisation
|
-
|
-
|
(12,092)
|
(12,092)
|
-
|
Net equity impact of intra-group transfers
|
-
|
-
|
-
|
-
|
(2,070)
|
As at 31 December 2018
|
2,342
|
6
|
-
|
2,348
|
7,595
|
AT1 equity instruments
|
|
||
|
|
2019
|
2018
|
|
Initial call date
|
£m
|
£m
|
AT1 equity instruments - Barclays Bank Group
|
|
|
|
6.625% Perpetual Subordinated Contingent Convertible Securities
(USD 1,211m)
|
2019
|
-
|
715
|
6.5% Perpetual Subordinated Contingent Convertible Securities (EUR
1,077m)
|
2019
|
-
|
860
|
8.0% Perpetual Subordinated Contingent Convertible Securities (EUR
1,000m)
|
2020
|
836
|
836
|
7.875% Perpetual Subordinated Contingent Convertible
Securities
|
2022
|
1,000
|
1,000
|
7.875% Perpetual Subordinated Contingent Convertible Securities
(USD 1,500m)
|
2022
|
1,136
|
1,136
|
7.25% Perpetual Subordinated Contingent Convertible
Securities
|
2023
|
500
|
500
|
7.75% Perpetual Subordinated Contingent Convertible Securities (USD
2,500m)
|
2023
|
1,925
|
1,925
|
5.875% Perpetual Subordinated Contingent Convertible
Securities
|
2024
|
623
|
623
|
8% Perpetual Subordinated Contingent Convertible Securities (USD
2,000m)
|
2024
|
1,509
|
-
|
7.125% Perpetual Subordinated Contingent Convertible
Securities
|
2025
|
299
|
-
|
6.375% Perpetual Subordinated Contingent Convertible
Securities
|
2025
|
495
|
-
|
Total AT1 equity instruments
|
|
8,323
|
7,595
|
12
|
Reserves
|
|
Barclays Bank Group
|
Barclays Bank PLC
|
||
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
Currency translation reserve
|
3,383
|
3,927
|
659
|
857
|
Fair value through other comprehensive income reserve
|
(139)
|
(298)
|
(141)
|
(302)
|
Cash flow hedging reserve
|
388
|
(123)
|
403
|
(123)
|
Own credit reserve
|
(373)
|
(121)
|
(315)
|
(121)
|
Other reserves and other shareholders' equity
|
(24)
|
(24)
|
72
|
72
|
Total
|
3,235
|
3,361
|
678
|
383
|
13
|
Non-controlling interests
|
|
Profit attributable to non-controlling interest
|
Equity attributable to non-controlling interest
|
Dividends paid to non-controlling interest
|
|||
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Other non-controlling interests
|
-
|
-
|
-
|
2
|
-
|
-
|
14
|
Pensions and post-retirement benefits
|
●
|
Afterwork, which
comprises a contributory cash balance defined benefit element, and
a voluntary defined contribution element. The cash balance element
is accrued each year and revalued until Normal Retirement Age in
line with the increase in Retail Price Index (RPI) (up to a maximum
of 5% p.a.). An increase of up to 2% a year may also be added at
Barclays’ discretion. The costs of ill-health retirements and
death in service benefits for Afterwork members are borne by the
UKRF. The main risks that Barclays runs in relation to Afterwork
are limited although additional contributions are required if
pre-retirement investment returns are not sufficient to provide for
the benefits.
|
●
|
The
1964 Pension Scheme. Most employees recruited before July 1997
built up benefits in this non-contributory defined benefit scheme
in respect of service up to 31 March 2010. Pensions were calculated
by reference to service and pensionable salary. From 1 April 2010,
members became eligible to accrue future service benefits in either
Afterwork or the Pension Investment Plan (PIP), a historic defined
contribution section which is now closed to future contributions.
The risks that Barclays runs in relation to the 1964 section are
typical of final salary pension schemes, principally that
investment returns fall short of expectations, that inflation
exceeds expectations, and that retirees live longer than
expected.
|
Income statement charge
|
|
|
|
2019
|
2018
|
|
£m
|
£m
|
Current service cost
|
58
|
64
|
Net finance cost
|
(48)
|
(24)
|
Past service cost
|
-
|
134
|
Other movements
|
1
|
5
|
Total
|
11
|
179
|
Balance sheet reconciliation
|
2019
|
2018
|
||||
|
Barclays Bank Group Total
|
Barclays Bank PLC Total
|
Of which relates to UKRF
|
Barclays Bank Group Total
|
Barclays Bank PLC Total
|
Of which relates to UKRF
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Benefit obligation at beginning of the year
|
(28,237)
|
(27,635)
|
(27,301)
|
(30,243)
|
(29,554)
|
(29,160)
|
Current service cost
|
(226)
|
(212)
|
(210)
|
(240)
|
(230)
|
(226)
|
Interest costs on scheme liabilities
|
(747)
|
(721)
|
(718)
|
(705)
|
(688)
|
(677)
|
Past service cost
|
-
|
-
|
-
|
(134)
|
(139)
|
(140)
|
Remeasurement (loss)/gain - financial
|
(3,087)
|
(2,987)
|
(2,964)
|
1,129
|
1,092
|
1,075
|
Remeasurement (loss)/gain - demographic
|
223
|
211
|
214
|
(242)
|
(243)
|
(245)
|
Remeasurement (loss)/gain - experience
|
277
|
275
|
266
|
(75)
|
(92)
|
(94)
|
Employee contributions
|
(5)
|
(1)
|
(1)
|
(4)
|
(1)
|
(1)
|
Benefits paid
|
1,459
|
1,427
|
1,410
|
2,205
|
2,169
|
2,167
|
Exchange and other movements
|
45
|
181
|
-
|
72
|
51
|
-
|
Benefit obligation at end of the year
|
(30,298)
|
(29,462)
|
(29,304)
|
(28,237)
|
(27,635)
|
(27,301)
|
Fair value of scheme assets at beginning of the year
|
29,722
|
29,259
|
29,036
|
30,922
|
30,364
|
30,112
|
Interest income on scheme assets
|
795
|
774
|
774
|
729
|
716
|
709
|
Employer contribution
|
755
|
740
|
731
|
754
|
746
|
741
|
Settlements
|
(2)
|
-
|
-
|
(106)
|
(58)
|
-
|
Remeasurement - return on plan assets greater than discount
rate
|
2,312
|
2,228
|
2,230
|
(400)
|
(371)
|
(360)
|
Employee contributions
|
5
|
1
|
1
|
4
|
1
|
1
|
Benefits paid
|
(1,459)
|
(1,427)
|
(1,410)
|
(2,205)
|
(2,169)
|
(2,167)
|
Exchange and other movements
|
(35)
|
(155)
|
-
|
24
|
30
|
-
|
Fair value of scheme assets at the end of the year
|
32,093
|
31,420
|
31,362
|
29,722
|
29,259
|
29,036
|
Net surplus/(deficit)
|
1,795
|
1,958
|
2,058
|
1,485
|
1,624
|
1,735
|
Retirement benefit assets
|
2,108
|
2,062
|
2,058
|
1,768
|
1,748
|
1,735
|
Retirement benefit liabilities
|
(313)
|
(104)
|
-
|
(283)
|
(124)
|
-
|
Net retirement benefit assets/(liabilities)
|
1,795
|
1,958
|
2,058
|
1,485
|
1,624
|
1,735
|
Key UKRF financial assumptions
|
2019
|
2018
|
|
% p.a.
|
% p.a.
|
Discount rate
|
1.92
|
2.71
|
Inflation rate (RPI)
|
3.02
|
3.25
|
Assumed life expectancy
|
2019
|
2018
|
2017
|
Life expectancy at 60 for current pensioners (years)
|
|
|
|
– Males
|
27.1
|
27.7
|
27.8
|
– Females
|
29.3
|
29.4
|
29.4
|
Life expectancy at 60 for future pensioners currently aged 40
(years)
|
|
|
|
– Males
|
28.9
|
29.2
|
29.3
|
– Females
|
31.1
|
31.0
|
31.0
|
Change in key assumptions
|
|
|
|
2019
|
2018
|
|
(Decrease)/Increase in UKRF defined benefit obligation
|
(Decrease)/Increase in UKRF defined benefit obligation
|
|
£bn
|
£bn
|
Discount rate
|
|
|
0.50% p.a. increase
|
(2.3)
|
(2.1)
|
0.25% p.a. increase
|
(1.2)
|
(1.1)
|
0.25% p.a. decrease
|
1.2
|
1.1
|
0.50% p.a. decrease
|
2.6
|
2.4
|
Assumed RPI
|
|
|
0.50% p.a. increase
|
1.5
|
1.3
|
0.25% p.a. increase
|
0.8
|
0.7
|
0.25% p.a. decrease
|
(0.7)
|
(0.6)
|
0.50% p.a. decrease
|
(1.4)
|
(1.3)
|
Life expectancy at 60
|
|
|
One year increase
|
1.0
|
0.9
|
One year decrease
|
(1.0)
|
(0.9)
|
Analysis of scheme assets
|
|
|
|
|
|
|
|
Barclays Bank Group Total
|
Barclays Bank PLC Total
|
Of which relates to UKRF
|
|||
|
Value
|
% of total
fair value of
scheme
assets
|
Value
|
% of total
fair value of
scheme
assets
|
Value
|
% of total
fair value of
scheme
assets
|
|
£m
|
%
|
£m
|
%
|
£m
|
%
|
As at 31 December 2019
|
|
|
|
|
|
|
Equities
|
2,349
|
7.3
|
2,184
|
7.0
|
2,174
|
6.9
|
Private equities
|
2,083
|
6.5
|
2,083
|
6.6
|
2,083
|
6.6
|
Bonds - fixed government
|
3,447
|
10.7
|
3,193
|
10.2
|
3,175
|
10.1
|
Bonds - index-linked government
|
11,036
|
34.4
|
11,027
|
35.1
|
11,027
|
35.2
|
Bonds - corporate and other
|
9,234
|
28.8
|
9,056
|
28.8
|
9,042
|
28.8
|
Property
|
1,644
|
5.1
|
1,633
|
5.2
|
1,633
|
5.2
|
Infrastructure
|
1,558
|
4.9
|
1,558
|
5.0
|
1,558
|
5.0
|
Cash and liquid assets
|
742
|
2.3
|
686
|
2.1
|
670
|
2.2
|
Fair value of scheme assets
|
32,093
|
100.0
|
31,420
|
100.0
|
31,362
|
100.0
|
|
|
|
|
|
|
|
As at 31 December 2018
|
|
|
|
|
|
|
Equities
|
3,349
|
11.3
|
3,246
|
11.1
|
3,211
|
11.1
|
Private equities
|
1,995
|
6.7
|
1,995
|
6.8
|
1,995
|
6.9
|
Bonds - fixed government
|
3,320
|
11.2
|
3,149
|
10.8
|
3,062
|
10.5
|
Bonds - index-linked government
|
10,945
|
36.8
|
10,936
|
37.4
|
10,936
|
37.7
|
Bonds - corporate and other
|
6,371
|
21.4
|
6,261
|
21.4
|
6,197
|
21.3
|
Property
|
1,712
|
5.8
|
1,702
|
5.8
|
1,702
|
5.9
|
Infrastructure
|
1,196
|
4.0
|
1,196
|
4.1
|
1,196
|
4.1
|
Cash and liquid assets
|
834
|
2.8
|
774
|
2.6
|
737
|
2.5
|
Fair value of scheme assets
|
29,722
|
100.0
|
29,259
|
100.0
|
29,036
|
100.0
|
|
Deficit reduction contributions under the
|
Deficit reduction contributions under the
|
|
30 September 2016 valuation
|
30 September 2019 valuation
|
Year
|
£m
|
£m
|
Cash paid:
|
|
|
2019 - paid in two installments of £250m in April and
September
|
500
|
-
|
2019 - paid in December
|
-
|
500
|
Future Commitments:
|
|
|
2020
|
500
|
500
|
2021
|
1,000
|
700
|
2022
|
1,000
|
294
|
2023
|
1,000
|
286
|
2024 - 2026
|
1,000 each year
|
-
|
Contributions paid
|
|
|
£m
|
2019
|
1,231
|
2018
|
741
|
2017
|
1,124
|
15
|
Related party transactions and Directors’
remuneration
|
|
Parent
|
Fellow subsidiaries
|
Associates
|
Joint ventures
|
Pension funds
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
For the year ended and as at 31 December 2019
|
|
|
|
|
|
Total income
|
(717)
|
53
|
-
|
12
|
3
|
Credit impairment charges
|
-
|
-
|
-
|
-
|
-
|
Operating expenses
|
(90)
|
(3,023)
|
(5)
|
-
|
-
|
Total assets
|
2,097
|
2,165
|
-
|
1,303
|
3
|
Total liabilities
|
24,876
|
1,600
|
-
|
-
|
75
|
For the year ended and as at 31 December 2018
|
|
|
|
|
|
Total income
|
(416)
|
(3)
|
-
|
7
|
3
|
Credit impairment charges
|
-
|
-
|
-
|
-
|
-
|
Operating expenses
|
(122)
|
(3,630)
|
(1)
|
(7)
|
-
|
Total assets
|
727
|
1,091
|
12
|
1,288
|
3
|
Total liabilities
|
21,405
|
2,058
|
85
|
2
|
139
|
|
Parent
|
Subsidiaries
|
Fellow subsidiaries
|
Associates
|
Joint ventures
|
Pension funds
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
As at 31 December 2019
|
|
|
|
|
|
|
Total assets
|
2,096
|
209,910
|
2,155
|
-
|
1,303
|
-
|
Total liabilities
|
24,876
|
147,472
|
1,480
|
-
|
-
|
72
|
As at 31 December 2018
|
|
|
|
|
|
|
Total assets
|
721
|
178,571
|
1,069
|
8
|
1,282
|
3
|
Total liabilities
|
21,405
|
122,546
|
2,000
|
85
|
2
|
139
|
Loans outstanding
|
|
|
|
2019
|
2018
|
|
£m
|
£m
|
As at 1 January
|
14.6
|
4.8
|
Loans issued during the yeara
|
0.1
|
12.6
|
Loan repayments during the yearb
|
(14.7)
|
(2.8)
|
As at 31 December
|
-
|
14.6
|
a
|
Includes
loans issued to existing Key Management Personnel and new or
existing loans issued to newly appointed Key Management
Personnel.
|
b
|
Includes
loan repayments by existing Key Management Personnel and loans to
former Key Management Personnel.
|
Deposits outstanding
|
|
|
|
2019
|
2018
|
|
£m
|
£m
|
As at 1 January
|
2.9
|
6.9
|
Deposits received during the yeara
|
11.5
|
17.4
|
Deposits repaid during the yearb
|
(10.2)
|
(21.4)
|
As at 31 December
|
4.2
|
2.9
|
a
|
Includes
deposits received from existing Key Management Personnel and new or
existing deposits received from newly appointed Key Management
Personnel.
|
b
|
Includes
deposits repaid by existing Key Management Personnel and deposits
of former Key Management Personnel.
|
|
2019
|
2018
|
|
£m
|
£m
|
Salaries and other short-term benefits
|
37.6
|
50.7
|
Pension costs
|
0.2
|
0.3
|
Other long-term benefits
|
9.1
|
12.6
|
Share-based payments
|
14.2
|
24.8
|
Employer social security charges on emoluments
|
6.0
|
8.5
|
Costs recognised for accounting purposes
|
67.1
|
96.9
|
Employer social security charges on emoluments
|
(6.0)
|
(8.5)
|
Other long-term benefits – difference between awards granted
and costs recognised
|
(1.0)
|
4.5
|
Share-based payments – difference between awards granted and
costs recognised
|
(0.7)
|
(2.1)
|
Total remuneration awarded
|
59.4
|
90.8
|
|
2019
|
2018
|
|
£m
|
£m
|
Aggregate emolumentsa
|
7.6
|
10.5
|
Amounts paid under LTIPsb
|
0.2
|
0.6
|
|
7.8
|
11.1
|
a
|
The
aggregate emoluments include amounts paid for the 2019 year. In
addition, deferred cash and share awards for 2019 with a total
value at grant of £1.9m will be made to Directors which will
only vest subject to meeting certain conditions.
|
b
|
The
figure above for ‘Amounts paid under LTIPs’ for 2019
relates to an LTIP award released to a Director in 2019. Dividend
shares released on the award are excluded.
|
|
2019
|
2018
|
|
£m
|
£m
|
Aggregate emolumentsa
|
3.2
|
3.6
|
Amounts paid under LTIPs
|
-
|
-
|
|
3.2
|
3.6
|
a
|
The
aggregate emoluments include amounts paid for the 2019 year. In
addition, a deferred share award for 2019 with a value at grant of
£1.2m will be made to the highest paid Director which will
only vest subject to meeting certain conditions.
|
16
|
Discontinued operations and assets included in disposal groups
classified as held for sale and associated liabilities
|
UK banking business disposal group income statement
|
|
|
|
|
2019
|
2018
|
2017
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Net interest income
|
-
|
1,449
|
5,872
|
Net fee and commission income
|
-
|
296
|
1,176
|
Net trading income
|
-
|
(5)
|
(9)
|
Net investment income
|
-
|
6
|
160
|
Other income
|
-
|
2
|
8
|
Total income
|
-
|
1,748
|
7,207
|
Credit impairment charges and other provisions
|
-
|
(201)
|
(783)
|
Net operating income
|
-
|
1,547
|
6,424
|
Staff costs
|
-
|
(321)
|
(2,052)
|
Administration and general expenses
|
-
|
(1,135)
|
(2,959)
|
Operating expenses
|
-
|
(1,456)
|
(5,011)
|
Share of post-tax results of associates and joint
ventures
|
-
|
-
|
(5)
|
Profit before tax
|
-
|
91
|
1,408
|
Taxation
|
-
|
(138)
|
(599)
|
(Loss)/profit after tax
|
-
|
(47)
|
809
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
-
|
(47)
|
809
|
Non-controlling interests
|
-
|
-
|
-
|
(Loss)/profit after tax
|
-
|
(47)
|
809
|
The cash flows attributed to the UK banking business discontinued
operation are as follows:
|
|
|
|
|
|
|
|
|
2019
|
2018
|
2017
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Net cash flows from operating activities
|
-
|
(522)
|
(355)
|
Net cash flows from investing activities
|
-
|
54
|
470
|
Net cash flows from financing activities
|
-
|
-
|
(128)
|
Net (decrease)/increase in cash and cash equivalents
|
-
|
(468)
|
(13)
|
Barclays Africa disposal group income statement
|
|
|
|
|
2019
|
2018
|
2017
|
For the year ended 31 December
|
£m
|
£m
|
£m
|
Net interest income
|
-
|
-
|
1,024
|
Net fee and commission income
|
-
|
-
|
522
|
Net trading income
|
-
|
-
|
149
|
Net investment income
|
-
|
-
|
30
|
Other income
|
-
|
-
|
61
|
Total income
|
-
|
-
|
1,786
|
Credit impairment charges and other provisions
|
-
|
-
|
(177)
|
Net operating income
|
-
|
-
|
1,609
|
Staff costs
|
-
|
-
|
(586)
|
Administration and general expensesa
|
-
|
-
|
(1,634)
|
Operating expenses
|
-
|
-
|
(2,220)
|
Share of post-tax results of associates and joint
ventures
|
-
|
-
|
5
|
Loss before tax
|
-
|
-
|
(606)
|
Taxation
|
-
|
-
|
(154)
|
Loss after taxb
|
-
|
-
|
(760)
|
|
|
|
|
Attributable to:
|
|
|
|
Equity holders of the parent
|
-
|
-
|
(900)
|
Non-controlling interests
|
-
|
-
|
140
|
Loss after taxb
|
-
|
-
|
(760)
|
a
|
Includes
impairment of £1,090 in 2017.
|
b
|
Total
loss in respect of the discontinued operation in 2017 was
£2,195m, which included the £60m loss on sale and
£1,375m loss on recycling of other comprehensive loss on
reserves.
|
Investor
Relations
|
Media
Relations
|
Adam
Strachan
|
Tom
Hoskin
|
+1 212
526 8442
|
+44 (0)
20 7116 4755
|
|
|
James
Johnson
|
|
+44 (0)
20 7116 7233
|
|