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Results Announcement
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Page
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Group Chief Executive Officer - Strategy Update
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2-4
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Performance Highlights
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6-8
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Group Chief Executive Officer's Review
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9
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Group Finance Director's Review
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10-12
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Results by Business
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· Personal and Corporate Banking
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14-15
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· Barclaycard
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16-17
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· Africa Banking
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18-19
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· Investment Bank
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20-21
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· Head Office
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22
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· Barclays Non-Core
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24-25
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Quarterly Results Summary
|
26-27
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Quarterly Core Results by Business
|
28-32
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Performance Management
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· Returns and equity by Business
|
33-34
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· Margins and balances
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35
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· Remuneration
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36-37
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Risk Management
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· Funding Risk - Liquidity
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38-40
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· Funding Risk - Capital
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41-44
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· Credit Risk
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45
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|
Statement of Director's Responsibilities
|
46
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Condensed Consolidated Financial Statements
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47-50
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Financial Statement Notes
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51-54
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Shareholder Information
|
55
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•
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2015 results show our Core business is a strong base on which to build, with Core adjusted earnings per share of 25.7p, as detailed in the rest of this results release
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|
|
•
|
Barclays has a clear path to deliver strong returns to shareholders whilst maintaining focus on our values
|
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|
•
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Simplification of the Group to focus on two core divisions - Barclays UK and Barclays Corporate & International
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|
|
•
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Package of measures to deliver our strategy and manage through remaining legacy headwinds:
|
|
|
−
|
Intention to sell down stake in Barclays Africa Group Limited (BAGL) to a level which permits accounting and regulatory deconsolidation over the next two to three years
|
|
|
−
|
One-time enlargement of Non-Core, with transfer of approximately £8bn risk weighted assets (RWAs): accelerated run down particularly in 2016, reconfirming guidance of around £20bn RWAs for Non-Core by end of 2017 despite perimeter enlargement
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|
|
−
|
Full year 2015 dividend of 6.5p; intention to pay 3.0p dividend for 2016 and 2017. Expect to pay out a significant proportion of earnings in dividends to shareholders over time
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|
−
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Cost guidance for 2016 of £12.8bn for new core (excluding BAGL)
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|
|
•
|
New Group financial targets focused on Return on Tangible Equity, Common Equity Tier 1 ratio, and Cost:Income ratio
|
|
|
1. Barclays UK
|
|
2. Barclays Corporate & International
|
|
−
|
Return on Tangible Equity (RoTE): As we reduce the Non-Core drag on Group returns, the Group's RoTE will converge towards the Core RoTE, and achieve attractive returns for shareholders
|
|
−
|
CET1 ratio: Our target will be to run the Group's CET1 ratio at 100-150 basis points above our regulatory minimum level
|
|
−
|
Cost:Income ratio: Our target is to reduce the Group's Cost:Income ratio to below 60%
|
|
2015 results were characterised by the continued execution of the strategy
|
|
|
·
|
Group adjusted total income net of insurance claims decreased 5% to £24,528m, with Core total income in line at £24,692m (2014: £24,678m) and Non-Core total income reducing to a net expense of £164m (2014: income of £1,050m)
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|
·
|
Driving efficiency remains a significant focus for the Group, with total adjusted operating expenses reducing 6% to £16,998m. Adjusted operating expenses excluding costs to achieve reduced 4% to £16,205m, driven by savings from strategic cost programmes
|
|
·
|
The Core business performed well reflecting continued good progress. This resulted in a 3% increase in profit before tax to £6,862m, with improvements in all Core operating businesses, including Africa Banking on a constant currency basis
|
|
·
|
The improved profit before tax in the Core business was driven by positive cost to income jaws across all Core operating businesses. Combined with the increase in average allocated equity of £5bn to £47bn, the return on average equity for the Core business was 9.0% (2014: 9.2%) and the return on average tangible equity was 10.9% (2014: 11.3%)
|
|
·
|
The accelerated rundown of the Non-Core business resulted in a 2% reduction in Group adjusted profit before tax to £5,403m due to a 24% increase in the Non-Core loss before tax to £1,459m
|
|
·
|
Strong progress in the rundown of the Non-Core business continued, with a further reduction in risk weighted assets of £29bn to £47bn contributing to the increase in the CET1 ratio. Non-Core leverage exposure decreased to £121bn (2014: £277bn). The announced sales of the Portuguese and Italian retail businesses in H215, due to be completed in H116, are expected to result in a further £2.5bn reduction in Non-Core risk weighted assets. Non-Core period end allocated equity reduced to £7bn (2014: £11bn)
|
|
·
|
Group capital and leverage ratios continued to strengthen. The fully loaded common equity tier 1 (CET1) ratio increased 110 basis points to 11.4% driven by a reduction in risk weighted assets of £44bn to £358bn. The leverage ratio increased 80 basis points to 4.5% driven by a reduction in leverage exposure of £205bn to £1,028bn
|
|
·
|
Statutory profit before tax reduced 8% to £2,073m after absorbing net losses on adjusting items of £3,330m (2014: £3,246m)
|
|
·
|
A final dividend for 2015 of 3.5p per share will be paid, resulting in a total 6.5p dividend per share for the year
|
|
Significant adjusting items:
|
|
|
·
|
Additional provisions relating to payment protection insurance (PPI) of £1,450m were made in Q415 based on an updated estimate of future redress and associated costs following a slower than expected decline in claims volumes during H215. It also reflects the Financial Conduct Authority's proposals for the introduction of the proposed 2018 complaints deadline, and proposed rules and guidance concerning the handling of PPI complaints in the light of the 2014 Supreme Court ruling in Plevin v Paragon Personal Finance Ltd. Total provisions for UK customer redress in 2015 were £2,772m (2014: £1,110m), of which £2,200m (2014: £1,270m) related to PPI redress
|
|
·
|
A loss of £261m was recognised in Q415 relating to the announced sale of the Italian retail banking branch network, which is due to complete in Q216. Total losses on sale relating to the Spanish, Portuguese and Italian businesses in 2015 were £580m (2014: £446m)
|
|
·
|
Additional provisions of £167m for ongoing investigations and litigation including Foreign Exchange were made in Q415, including the settlement reached with the New York Department of Financial Services in November 2015, in respect of its investigation into electronic trading of Foreign Exchange. Total provisions Performance Highlights in 2015 were £1,237m (2014: £1,250m)
|
|
Barclays Group results
|
Adjusted
|
Statutory
|
|||||
|
for the year ended
|
31.12.15
|
31.12.14
|
31.12.15
|
31.12.14
|
|||
|
£m
|
£m
|
% Change
|
£m
|
£m
|
% Change
|
||
|
Total income net of insurance claims
|
24,528
|
25,728
|
(5)
|
25,454
|
25,288
|
1
|
|
|
Credit impairment charges and other provisions
|
(2,114)
|
(2,168)
|
2
|
(2,114)
|
(2,168)
|
2
|
|
|
Net operating income
|
22,414
|
23,560
|
(5)
|
23,340
|
23,120
|
1
|
|
|
Operating expenses
|
(15,351)
|
(15,993)
|
4
|
(15,021)
|
(15,993)
|
6
|
|
|
UK bank levy
|
(476)
|
(462)
|
(3)
|
(476)
|
(462)
|
(3)
|
|
|
Litigation and conduct
|
(378)
|
(449)
|
16
|
(4,387)
|
(2,809)
|
(56)
|
|
|
Operating expenses excluding costs to achieve
|
(16,205)
|
(16,904)
|
4
|
(19,884)
|
(19,264)
|
(3)
|
|
|
Costs to achieve
|
(793)
|
(1,165)
|
32
|
(793)
|
(1,165)
|
32
|
|
|
Total operating expenses
|
(16,998)
|
(18,069)
|
6
|
(20,677)
|
(20,429)
|
(1)
|
|
|
Other net (expenses)/income
|
(13)
|
11
|
(590)
|
(435)
|
(36)
|
||
|
Profit before tax
|
5,403
|
5,502
|
(2)
|
2,073
|
2,256
|
(8)
|
|
|
Tax charge
|
(1,690)
|
(1,704)
|
1
|
(1,450)
|
(1,411)
|
(3)
|
|
|
Profit after tax
|
3,713
|
3,798
|
(2)
|
623
|
845
|
(26)
|
|
|
Non-controlling interests
|
(672)
|
(769)
|
13
|
(672)
|
(769)
|
13
|
|
|
Other equity holders1
|
(345)
|
(250)
|
(38)
|
(345)
|
(250)
|
(38)
|
|
|
Attributable profit/(loss)
|
2,696
|
2,779
|
(3)
|
(394)
|
(174)
|
||
|
Performance measures
|
|||||||
|
Return on average tangible shareholders' equity1
|
5.8%
|
5.9%
|
(0.7%)
|
(0.3%)
|
|||
|
Average tangible shareholders' equity (£bn)
|
48
|
48
|
48
|
47
|
|||
|
Return on average shareholders' equity1
|
4.9%
|
5.1%
|
(0.6%)
|
(0.2%)
|
|||
|
Average shareholders' equity (£bn)
|
56
|
56
|
56
|
55
|
|||
|
Cost: income ratio
|
69%
|
70%
|
81%
|
81%
|
|||
|
Loan loss rate (bps)
|
47
|
46
|
47
|
46
|
|||
|
Basic earnings per share1
|
16.6p
|
17.3p
|
(1.9p)
|
(0.7p)
|
|||
|
Dividend per share
|
6.5p
|
6.5p
|
6.5p
|
6.5p
|
|||
|
Balance sheet and leverage
|
|||||||
|
Net tangible asset value per share
|
275p
|
285p
|
|||||
|
Net asset value per share
|
324p
|
335p
|
|||||
|
Leverage exposure
|
£1,028bn
|
£1,233bn
|
|||||
|
Capital management
|
|||||||
|
CRD IV fully loaded
|
|||||||
|
Common equity tier 1 ratio
|
11.4%
|
10.3%
|
|||||
|
Common equity tier 1 capital
|
£40.7bn
|
£41.5bn
|
|||||
|
Tier 1 capital
|
£46.2bn
|
£46.0bn
|
|||||
|
Risk weighted assets
|
£358bn
|
£402bn
|
|||||
|
Leverage ratio
|
4.5%
|
3.7%
|
|||||
|
Funding and liquidity
|
|||||||
|
Group liquidity pool
|
£145bn
|
£149bn
|
|||||
|
Estimated CRD IV liquidity coverage ratio
|
133%
|
124%
|
|||||
|
Loan: deposit ratio2
|
86%
|
89%
|
|||||
|
Adjusted profit reconciliation
|
|||||||
|
Adjusted profit before tax
|
5,403
|
5,502
|
|||||
|
Provisions for UK customer redress
|
(2,772)
|
(1,110)
|
|||||
|
Provisions for ongoing investigations and litigation including Foreign Exchange
|
(1,237)
|
(1,250)
|
|||||
|
Losses on sale relating to the Spanish, Portuguese and Italian businesses
|
(580)
|
(446)
|
|||||
|
Gain on US Lehman acquisition assets
|
496
|
461
|
|||||
|
Own credit
|
430
|
34
|
|||||
|
Gain on valuation of a component of the defined retirement benefit liability
|
429
|
-
|
|||||
|
Impairment of goodwill and other assets relating to businesses being disposed
|
(96)
|
-
|
|||||
|
Revision of ESHLA valuation methodology
|
-
|
(935)
|
|||||
|
Statutory profit before tax
|
2,073
|
2,256
|
|||||
|
1
|
The profit after tax attributable to other equity holders of £345m (2014: £250m) is offset by a tax credit recorded in reserves of £70m (2014: £54m). The net amount of £275m (2014: £196m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share, return on average tangible shareholders' equity and return on average shareholders' equity.
|
|
2
|
Loan: deposit ratio for PCB, Barclaycard, Africa Banking and Non-Core retail.
|
|
Barclays Core and Non-Core adjusted results for the year ended
|
Barclays Core
|
Barclays Non-Core
|
|||||
|
31.12.15
|
31.12.14
|
31.12.15
|
31.12.14
|
||||
|
£m
|
£m
|
% Change
|
£m
|
£m
|
% Change
|
||
|
Total income net of insurance claims
|
24,692
|
24,678
|
-
|
(164)
|
1,050
|
||
|
Credit impairment charges and other provisions
|
(2,036)
|
(2,000)
|
(2)
|
(78)
|
(168)
|
54
|
|
|
Net operating income/(expenses)
|
22,656
|
22,678
|
-
|
(242)
|
882
|
||
|
Operating expenses
|
(14,478)
|
(14,483)
|
-
|
(873)
|
(1,510)
|
42
|
|
|
UK bank levy
|
(398)
|
(371)
|
(7)
|
(78)
|
(91)
|
14
|
|
|
Litigation and conduct
|
(230)
|
(251)
|
8
|
(148)
|
(198)
|
25
|
|
|
Operating expenses excluding costs to achieve
|
(15,106)
|
(15,105)
|
-
|
(1,099)
|
(1,799)
|
39
|
|
|
Costs to achieve
|
(693)
|
(953)
|
27
|
(100)
|
(212)
|
53
|
|
|
Total operating expenses
|
(15,799)
|
(16,058)
|
2
|
(1,199)
|
(2,011)
|
40
|
|
|
Other net income/(expenses)
|
5
|
62
|
(92)
|
(18)
|
(51)
|
65
|
|
|
Profit/(loss) before tax
|
6,862
|
6,682
|
3
|
(1,459)
|
(1,180)
|
(24)
|
|
|
Tax (charge)/credit
|
(1,749)
|
(1,976)
|
11
|
59
|
272
|
(78)
|
|
|
Profit/(loss) after tax
|
5,113
|
4,706
|
9
|
(1,400)
|
(908)
|
(54)
|
|
|
Non-controlling interests
|
(610)
|
(648)
|
6
|
(62)
|
(121)
|
49
|
|
|
Other equity holders
|
(284)
|
(194)
|
(46)
|
(61)
|
(56)
|
(9)
|
|
|
Attributable profit/(loss)
|
4,219
|
3,864
|
9
|
(1,523)
|
(1,085)
|
(40)
|
|
|
Performance measures
|
|||||||
|
Return on average tangible equity1
|
10.9%
|
11.3%
|
(5.1%)
|
(5.4%)
|
|||
|
Average allocated tangible equity (£bn)
|
39
|
35
|
9
|
13
|
|||
|
Return on average equity1
|
9.0%
|
9.2%
|
(4.1%)
|
(4.1%)
|
|||
|
Average allocated equity (£bn)
|
47
|
42
|
9
|
13
|
|||
|
Period end allocated equity (£bn)
|
48
|
45
|
7
|
11
|
|||
|
Cost: income ratio
|
64%
|
65%
|
n/m
|
n/m
|
|||
|
Loan loss rate (bps)
|
51
|
49
|
14
|
31
|
|||
|
Basic earnings per share contribution
|
25.7p
|
24.0p
|
(9.1p)
|
(6.7p)
|
|||
|
Capital management
|
|||||||
|
Risk weighted assets
|
£312bn
|
£327bn
|
£47bn
|
£75bn
|
|||
|
Leverage exposure
|
£907bn
|
£956bn
|
£121bn
|
£277bn
|
|||
|
Year ended
31.12.15
|
Year ended
31.12.14
|
||
|
Income by business
|
£m
|
£m
|
% Change
|
|
Personal and Corporate Banking
|
8,726
|
8,828
|
(1)
|
|
Barclaycard
|
4,927
|
4,356
|
13
|
|
Africa Banking
|
3,574
|
3,664
|
(2)
|
|
Investment Bank
|
7,572
|
7,588
|
-
|
|
Head Office
|
(107)
|
242
|
|
|
Barclays Core
|
24,692
|
24,678
|
-
|
|
Barclays Non-Core
|
(164)
|
1,050
|
|
|
Barclays Group adjusted total income
|
24,528
|
25,728
|
(5)
|
|
Year ended
31.12.15
|
Year ended
31.12.14
|
||
|
Profit/(loss) before tax by business
|
£m
|
£m
|
% Change
|
|
Personal and Corporate Banking
|
3,040
|
2,885
|
5
|
|
Barclaycard
|
1,634
|
1,339
|
22
|
|
Africa Banking
|
979
|
984
|
(1)
|
|
Investment Bank
|
1,611
|
1,377
|
17
|
|
Head Office
|
(402)
|
97
|
|
|
Barclays Core
|
6,862
|
6,682
|
3
|
|
Barclays Non-Core
|
(1,459)
|
(1,180)
|
(24)
|
|
Barclays Group adjusted profit before tax
|
5,403
|
5,502
|
(2)
|
|
1
|
Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays Group returns and Barclays Core returns. This does not represent the return on average equity and average tangible equity of the Non-Core business.
|
|
Income statement commentary is based upon adjusted results unless otherwise stated.
|
|
·
|
Profit before tax reduced 2% to £5,403m driven by a 24% increase in the Non-Core loss before tax to £1,459m, as a result of the continued rundown, partially offset by a 3% increase in Core profit before tax to £6,862m reflecting improvements in all Core operating businesses, including Africa Banking on a constant currency basis1
|
|
|
·
|
Income decreased 5% to £24,528m as Non-Core income reduced £1,214m to a net expense of £164m. Core income remained in line at £24,692m (2014: £24,678m)
|
|
|
·
|
Credit impairment charges reduced 2% to £2,114m with the loan loss rate remaining broadly in line at 47bps (2014: 46bps)
|
|
|
-
|
Net on-balance sheet exposure to the oil and gas sector was £4.4bn (2014: £5.8bn), with contingent liabilities and commitments to this sector of £13.8bn (2014: £12.6bn). Impairment charges were £106m (2014: £1m). The ratio of the Group's net total exposures classified as strong and satisfactory was 97% (2014: 99%) of the total credit risk net exposure to this sector
|
|
|
·
|
Total operating expenses decreased 6% to £16,998m as a result of savings from strategic cost programmes, particularly in the Investment Bank and Personal and Corporate Banking (PCB), in addition to the continued rundown of Non-Core
|
|
|
-
|
Costs to achieve decreased 32% to £793m. This included £82m of costs to achieve related to the sale of the US Wealth business
|
|
|
·
|
The effective tax rate on profit before tax was 31.3% (2014: 31.0%). This was less than the effective tax rate on statutory profit before tax mainly because it excluded the impact of adjusting items such as non-deductible provisions for ongoing investigations and litigation including Foreign Exchange and provisions for UK customer redress
|
|
|
·
|
Attributable profit was £2,696m (2014: £2,779m) resulting in a return on average shareholders' equity of 4.9% (2014: 5.1%) and a return on average tangible shareholders' equity of 5.8% (2014: 5.9%)
|
|
|
·
|
Statutory profit before tax was £2,073m (2014: £2,256m) which included £2,772m (2014: £1,110m) of additional provisions for UK customer redress; £1,237m (2014: £1,250m) of additional provisions for ongoing investigations and litigation including Foreign Exchange; £580m (2014: £446m) of losses on sale relating to the Spanish, Portuguese and Italian businesses; a £496m (2014: £461m) gain on US Lehman acquisition assets; an own credit gain of £430m (2014: £34m); a £429m (2014: £nil) gain on valuation of a component of the defined retirement benefit liability; and impairment of goodwill and other assets relating to businesses being disposed of £96m (2014: £nil). 2014 statutory profit before tax also included a loss of £935m (2015: £nil) relating to a revision to the ESHLA valuation methodology
|
|
|
·
|
The tax charge of £1,450m (2014: £1,411m) on statutory profit before tax of £2,073m (2014: £2,256m) represents an effective tax rate of 69.9% (2014: 62.5%)
|
|
|
·
|
Profit before tax increased 3% to £6,862m with improvements in all Core operating businesses, including Africa Banking on a constant currency basis1, partially offset by a loss before tax in Head Office of £402m (2014: profit of £97m)
|
|
|
·
|
Income remained in line at £24,692m (2014: £24,678m)
|
|
|
-
|
Barclaycard income increased 13% to £4,927m primarily reflecting growth in US cards through continued focus on profitable asset growth
|
|
|
-
|
Investment Bank income remained broadly in line at £7,572m (2014: £7,588m) across Banking and Markets, with a 4% improvement in Macro, offset by a 5% reduction in Credit and a 2% reduction in Equities
|
|
|
-
|
PCB income decreased 1% to £8,726m. Excluding the US Wealth business, PCB income was in line with prior year, as Corporate income grew 5% from balance growth and improved deposit margins
|
|
|
-
|
Africa Banking income decreased 2% to £3,574m. On a constant currency basis1 income increased 7% reflecting good growth in Retail and Business Banking (RBB) and corporate banking in South Africa, and Wealth, Investment Management and Insurance (WIMI)
|
|
|
-
|
Net interest income in PCB, Barclaycard and Africa Banking increased 5% to £12,024m driven by margin improvement in Barclaycard and Africa Banking, and volume growth in both PCB and Barclaycard. Net interest margin increased 10bps to 4.18%
|
|
|
-
|
Head Office income decreased to a net expense of £107m (2014: income of £242m) reflecting the net expense from Treasury operations
|
|
|
·
|
Credit impairment charges increased 2% to £2,036m reflecting charges of £55m in the Investment Bank due to a number of single name exposures and a 6% increase in Barclaycard reflecting growth in the business and updates to impairment model methodologies, partially offset by a 22% reduction in PCB impairment due to the benign economic environment in the UK resulting in lower default rates and charges
|
|
|
·
|
Total operating expenses reduced 2% to £15,799m reflecting savings from strategic cost programmes, principally in the Investment Bank and PCB, and lower costs to achieve of £693m (2014: £953m). This was partially offset by increased Barclaycard operating expenses which grew 11% due to continued investment in business growth, and costs associated with the implementation of the structural reform programme in the Head Office
|
|
|
·
|
Attributable profit increased 9% to £4,219m while average allocated equity increased £5bn to £47bn as capital was redeployed from Non-Core, resulting in a Core return on average equity of 9.0% (2014: 9.2%) and return on average tangible equity of 10.9% (2014: 11.3%)
|
|
|
1
|
Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for 2015.
|
|
·
|
Loss before tax increased £279m to £1,459m reflecting:
|
|
|
-
|
A reduction in income of £1,214m to a net expense of £164m following assets and securities rundown, business sales, including the impact of the sales of the Spanish and UAE retail businesses, and fair value losses on the ESHLA portfolio of £359m (2014: £156m), of which £156m was in Q415, as gilt swap spreads widened
|
|
|
-
|
An improvement in credit impairment charges to £78m (2014: £168m) driven by higher recoveries in Europe and the sale of the Spanish business
|
|
|
-
|
A reduction of £812m in total operating expenses to £1,199m due to continued rundown of the business, including the sales of the Spanish and UAE retail businesses, reduced costs to achieve, and litigation and conduct charges
|
|
|
·
|
Non-Core return on average equity dilution was 4.1% (2014: 4.1%) reflecting a £4bn reduction in average allocated equity to £9bn. Period end allocated equity reduced £4bn to £7bn, as risk weighted assets reduced £29bn to £47bn
|
|
|
·
|
The fully loaded CRD IV CET1 ratio increased to 11.4% (2014: 10.3%) driven by a significant reduction in risk weighted assets of £44bn to £358bn
|
|
|
-
|
Risk weighted assets reduced £29bn to £47bn in the Non-Core business due to the sale of the Spanish business and a rundown of legacy structured and credit products. The Investment Bank decreased £14bn to £108bn mainly due to a reduction in securities and derivatives, and improved RWA efficiency
|
|
|
-
|
CET1 capital decreased £0.7bn to £40.7bn after absorbing adjusting items of £3.4bn after tax and dividends paid and foreseen of £1.4bn
|
|
|
·
|
The leverage ratio increased significantly to 4.5% (2014: 3.7%) driven by a reduction in the leverage exposure of 17% to £1,028bn
|
|
|
-
|
The decrease was predominantly due to the rundown of the Non-Core business of £156bn to £121bn primarily in reverse repurchase agreements, potential future exposure on derivatives and trading portfolio assets. Core leverage exposure decreased £49bn to £907bn reflecting reductions in trading portfolio assets, settlement balances and potential future exposure on derivatives
|
|
|
·
|
Balance sheet assets decreased 18% to £1,120bn
|
|
|
-
|
Across fair value and amortised cost classifications, repurchase and reverse repurchase agreements decreased £59bn and £54bn respectively due to reduced matched book trading and general firm financing due to balance sheet deleveraging
|
|
|
-
|
Trading portfolio assets decreased £37bn to £77bn primarily driven by balance sheet deleveraging resulting in lower securities positions and exiting of positions in Non-Core
|
|
|
-
|
Derivative assets decreased £112bn to £328bn consistent with the decrease in derivative liabilities of £115bn to £324bn. The decrease was mainly within interest rate and foreign exchange derivatives due to net trade reduction and an increase in major interest rate forward curves
|
|
|
·
|
Net asset value and net tangible asset value per share decreased to 324p (2014: 335p) and 275p (2014: 285p) respectively. This decrease was primarily attributable to adjusting items of £3.1bn after tax, dividends paid and a decrease in cash flow hedging reserve reflecting a reduction in the fair value of interest rate swaps held for hedging purposes in addition to gains recycled to the income statement
|
|
|
·
|
The Group maintained a surplus to its internal and regulatory requirements. The liquidity pool was £145bn (2014: £149bn) and the Liquidity Coverage Ratio (LCR) was 133% (2014: 124%), equivalent to a surplus of £37bn (2014: £30bn). Barclays plans to maintain its surplus at an adequate level to the internal and regulatory stress requirements, whilst considering risks to market funding conditions and its liquidity position
|
|
·
|
Wholesale funding outstanding excluding repurchase agreements reduced to £142bn (2014: £171bn). The Group issued £9bn of term funding net of early redemptions, of which £4bn was in public and private senior unsecured debt issued by the holding company, Barclays PLC. During Q415, Barclays PLC also issued EUR Tier 2 securities of £1bn equivalent. All the capital and debt proceeds raised by Barclays PLC have been used to subscribe for instruments at Barclays Bank PLC, the operating company with a ranking corresponding to the securities issued by Barclays PLC
|
|
·
|
Additional UK customer redress provisions of £2,772m (2014: £1,110m) were recognised. This included:
|
|
|
-
|
Charges of £2,200m relating to PPI, including an additional provision of £1,450m in Q415 based on an updated estimate of future redress costs. This update follows a slower than expected decline in claims volumes during H215. It also reflects the Financial Conduct Authority's proposals for the introduction of the proposed 2018 complaints deadline, and proposed rules and guidance concerning the handling of PPI complaints in the light of the 2014 Supreme Court ruling in Plevin v Paragon Personal Finance Ltd
|
|
|
-
|
Q315 provision for £290m redress costs in relation to historic pricing practices associated with certain foreign exchange transactions for certain customers between 2005 and 2012
|
|
|
-
|
£282m provision for Packaged Bank Account redress costs in H115
|
|
|
·
|
Additional provisions of £1,237m (2014: £1,250m) were recognised in relation to ongoing investigations and litigation including Foreign Exchange. This included:
|
|
|
-
|
Provisions of £167m in Q415, including the settlement of £100m reached with the New York Department of Financial Services in November 2015 in respect of its investigation into electronic trading of Foreign Exchange
|
|
|
-
|
Provisions of £270m in Q315 relating to the settlement of two residential mortgage backed securities claims with the National Credit Union Administration and the settlement of certain other legacy benchmark litigation
|
|
|
-
|
Additional provisions of £800m in H115 for ongoing investigations and litigation primarily relating to Foreign Exchange. Settlements of £1,608m were reached in Q215 with a number of authorities in relation to industry-wide investigations into certain sales and trading practices in the Foreign Exchange market and an industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark
|
|
|
·
|
Losses on sale relating to the Spanish, Portuguese and Italian businesses of £580m (2014: £446m) included a loss of £261m in Q415 on the announced sale of the Italian retail banking branch network, which is due to complete in Q216. This is in addition to the £201m loss on the announced sale of the Portuguese retail business in Q315, which is due to complete in Q116 and the loss of £118m recognised in H115 relating to the sale of the Spanish business
|
|
|
·
|
£496m (2014: £461m) gain on US Lehman acquisition assets was recognised in Q215. Barclays reached a settlement with the Securities Investor Protection Act Trustee for Lehman Brothers Inc. (LBI) to resolve outstanding litigation between the parties relating to the acquisition of most of the assets of LBI in September 2008
|
|
|
·
|
Own credit gain of £430m (2014: £34m) was recognised in the year
|
|
|
·
|
£429m (2014: £nil) gain was recognised in H115 as the valuation of a component of the defined retirement benefit liability was revised to use the long term Consumer Price Index rather than the Retail Price Index, consistent with statutory provisions
|
|
|
·
|
Impairment of goodwill and other assets relating to businesses being disposed of £96m (2014: £nil)
|
|
|
·
|
2014 included a valuation revision of £935m (2015: £nil) against the ESHLA portfolio due to a change in the valuation methodology, incorporating information on external parties and the factors they may take into account when valuing these assets, thereby moving the asset valuations away from Libor-based discounting
|
|
|
·
|
A final dividend for 2015 of 3.5p per share will be paid on 5 April 2016, resulting in a total 6.5p dividend per share for the year
|
|
·
|
In the Investment Bank, income in January and February was broadly in line with the same period last year. However in light of current market conditions, and on the back of a particularly strong March in 2015, we do not expect as strong a performance for the whole of Q1 this year
|
|
·
|
Non-Core income in Q116 is expected to deteriorate further as a result of the impact of continued gilt swap spread widening on the fair valuation of the ESHLA portfolio
|
|
Personal and Corporate Banking
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
6,438
|
6,298
|
2
|
|
Net fee, commission and other income
|
2,288
|
2,530
|
(10)
|
|
Total income
|
8,726
|
8,828
|
(1)
|
|
Credit impairment charges and other provisions
|
(378)
|
(482)
|
22
|
|
Net operating income
|
8,348
|
8,346
|
-
|
|
Operating expenses
|
(4,774)
|
(4,951)
|
4
|
|
UK bank levy
|
(93)
|
(70)
|
(33)
|
|
Litigation and conduct
|
(109)
|
(54)
|
|
|
Costs to achieve
|
(292)
|
(400)
|
27
|
|
Total operating expenses
|
(5,268)
|
(5,475)
|
4
|
|
Other net (expenses)/income
|
(40)
|
14
|
|
|
Profit before tax
|
3,040
|
2,885
|
5
|
|
Attributable profit
|
2,179
|
2,058
|
6
|
|
As at 31.12.15
|
As at 31.12.14
|
||
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
218.4
|
217.0
|
|
|
Total assets
|
287.2
|
285.0
|
|
|
Customer deposits
|
305.4
|
299.2
|
|
|
Risk weighted assets
|
120.4
|
120.2
|
|
|
Performance measures
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Return on average tangible equity
|
16.2%
|
15.8%
|
|
|
Average allocated tangible equity (£bn)
|
13.6
|
13.1
|
|
|
Return on average equity
|
12.1%
|
11.9%
|
|
|
Average allocated equity (£bn)
|
18.2
|
17.5
|
|
|
Cost: income ratio
|
60%
|
62%
|
|
|
Loan loss rate (bps)
|
17
|
21
|
|
|
Net interest margin
|
2.99%
|
3.00%
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
Personal
|
4,054
|
4,159
|
(3)
|
|
Corporate
|
3,754
|
3,592
|
5
|
|
Wealth
|
918
|
1,077
|
(15)
|
|
Total income
|
8,726
|
8,828
|
(1)
|
|
As at 31.12.15
|
As at 31.12.14
|
||
|
Analysis of loans and advances to customers at amortised cost
|
£bn
|
£bn
|
|
|
Personal
|
137.0
|
136.8
|
|
|
Corporate
|
67.9
|
65.1
|
|
|
Wealth
|
13.5
|
15.1
|
|
|
Total loans and advances to customers at amortised cost
|
218.4
|
217.0
|
|
|
Analysis of customer deposits
|
|||
|
Personal
|
151.3
|
145.8
|
|
|
Corporate
|
124.4
|
122.2
|
|
|
Wealth
|
29.7
|
31.2
|
|
|
Total customer deposits
|
305.4
|
299.2
|
|
·
|
Profit before tax improved 5% to £3,040m driven by the continued reduction in operating expenses and lower impairment due to the benign economic environment in the UK. The reduction in operating expenses was delivered through strategic cost programmes including the restructure of the branch network and technology improvements to increase automation. Corporate performed strongly with income increasing 5% through growth in both lending and cash management
|
||
|
·
|
PCB results were significantly impacted by customer redress in, and the sale of, the US Wealth business. Excluding the US Wealth business, profit before tax improved 12% to £3,277m
|
||
|
·
|
Total income reduced 1% to £8,726m. Excluding the US Wealth business income remained flat
|
||
|
-
|
Personal income decreased 3% to £4,054m driven by a reduction in fee income and mortgage margin pressure, partially offset by improved deposit margins and balance growth
|
||
|
-
|
Corporate income increased 5% to £3,754m due to balance growth in both lending and deposits and improved deposit margins, partially offset by reduced margins in the lending business
|
||
|
-
|
Wealth income reduced 15% to £918m primarily as a result of the impact of customer redress in, and the sale of, the US Wealth business. Excluding the US Wealth business income decreased 2%
|
||
|
-
|
Net interest income increased 2% to £6,438m driven by growth in Corporate balances and the change in the overdraft proposition in June 2014
|
||
|
-
|
Net interest margin remained broadly in line at 2.99% (2014: 3.00%) as mortgage margin pressure and lower Corporate lending margins were partially offset by increased margins on Corporate and Personal deposits, and the benefit of the change in the overdraft proposition
|
||
|
-
|
Net fee, commission and other income reduced 10% to £2,288m driven primarily by the impact of the change in the overdraft proposition and customer redress in the US
|
||
|
·
|
Credit impairment charges improved 22% to £378m due to the benign economic environment in the UK resulting in lower default rates and charges across all businesses. The loan loss rate reduced 4bps to 17bps
|
||
|
·
|
Total operating expenses reduced 4% to £5,268m reflecting savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, and lower costs to achieve, partially offset by increased litigation and conduct charges
|
||
|
·
|
Loans and advances to customers increased 1% to £218.4bn due to increased Corporate lending
|
||
|
·
|
Total assets increased 1% to £287.2bn driven by the growth in loans and advances to customers
|
||
|
·
|
Customer deposits increased 2% to £305.4bn primarily driven by the Personal and Corporate businesses
|
||
|
·
|
RWAs were broadly flat at £120.4bn (2014: £120.2bn)
|
||
|
Barclaycard
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
3,520
|
3,044
|
16
|
|
Net fee, commission and other income
|
1,407
|
1,312
|
7
|
|
Total income
|
4,927
|
4,356
|
13
|
|
Credit impairment charges and other provisions
|
(1,251)
|
(1,183)
|
(6)
|
|
Net operating income
|
3,676
|
3,173
|
16
|
|
Operating expenses
|
(1,927)
|
(1,727)
|
(12)
|
|
UK bank levy
|
(42)
|
(29)
|
(45)
|
|
Costs to achieve
|
(106)
|
(118)
|
10
|
|
Total operating expenses
|
(2,075)
|
(1,874)
|
(11)
|
|
Other net income
|
33
|
40
|
(18)
|
|
Profit before tax
|
1,634
|
1,339
|
22
|
|
Attributable profit
|
1,106
|
938
|
18
|
|
As at 31.12.15
|
As at 31.12.14
|
||
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
39.8
|
36.6
|
|
|
Total assets
|
47.4
|
41.3
|
|
|
Customer deposits
|
10.2
|
7.3
|
|
|
Risk weighted assets
|
41.3
|
39.9
|
|
|
Performance measures
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Return on average tangible equity
|
22.3%
|
19.9%
|
|
|
Average allocated tangible equity (£bn)
|
5.0
|
4.7
|
|
|
Return on average equity
|
17.7%
|
16.0%
|
|
|
Average allocated equity (£bn)
|
6.3
|
5.9
|
|
|
Cost: income ratio
|
42%
|
43%
|
|
|
Loan loss rate (bps)
|
289
|
308
|
|
|
Net interest margin
|
9.13%
|
8.75%
|
|
·
|
Profit before tax increased 22% to £1,634m. Strong growth was delivered through the diversified consumer and merchant business model with asset growth across all geographies. The cost to income ratio improved to 42% (2014: 43%) whilst investment in business growth continued. The business focus on risk management was reflected in stable 30 day delinquency rates and improved loan loss rates
|
|
|
·
|
Total income increased 13% to £4,927m driven primarily by business growth in US cards and the appreciation of the average USD rate against GBP
|
|
|
-
|
Net interest income increased 16% to £3,520m driven by business growth. Net interest margin also improved to 9.13% (2014: 8.75%) reflecting growth in interest earning lending
|
|
|
-
|
Net fee, commission and other income increased 7% to £1,407m due to growth in payment volumes, partially offset by the impact of rate capping from European Interchange Fee Regulation
|
|
|
·
|
Credit impairment charges increased 6% to £1,251m primarily reflecting asset growth and updates to impairment model methodologies, partially offset by improved performance in UK Cards. Delinquency rates remained broadly stable and the loan loss rate reduced 19bps to 289bps
|
|
|
·
|
Total operating expenses increased 11% to £2,075m due to continued investment in business growth, the appreciation of the average USD rate against GBP and the impact of one-off items, including a write-off of intangible assets of £55m relating to the withdrawal of the Bespoke product
|
|
|
·
|
Loans and advances to customers increased 9% to £39.8bn reflecting growth across all geographies
|
|
|
·
|
Total assets increased 15% to £47.4bn primarily due to the increase in loans and advances to customers
|
|
|
·
|
Customer deposits increased 40% to £10.2bn driven by the deposits funding strategy in the US
|
|
|
·
|
RWAs increased 4% to £41.3bn primarily driven by the growth in the US cards business
|
|
|
Constant currency1
|
|||||||
|
Africa Banking
|
Year ended
31.12.15
|
Year ended
31.12.14
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|||
|
Income statement information
|
£m
|
£m
|
% Change
|
£m
|
£m
|
% Change
|
|
|
Net interest income
|
2,066
|
2,093
|
(1)
|
2,066
|
1,908
|
8
|
|
|
Net fee, commission and other income
|
1,668
|
1,741
|
(4)
|
1,668
|
1,583
|
5
|
|
|
Total income
|
3,734
|
3,834
|
(3)
|
3,734
|
3,491
|
7
|
|
|
Net claims and benefits incurred under insurance contracts
|
(160)
|
(170)
|
6
|
(160)
|
(155)
|
(3)
|
|
|
Total income net of insurance claims
|
3,574
|
3,664
|
(2)
|
3,574
|
3,336
|
7
|
|
|
Credit impairment charges and other provisions
|
(352)
|
(349)
|
(1)
|
(352)
|
(317)
|
(11)
|
|
|
Net operating income
|
3,222
|
3,315
|
(3)
|
3,222
|
3,019
|
7
|
|
|
Operating expenses
|
(2,169)
|
(2,244)
|
3
|
(2,169)
|
(2,051)
|
(6)
|
|
|
UK bank levy
|
(52)
|
(45)
|
(16)
|
(52)
|
(45)
|
(16)
|
|
|
Litigation and conduct
|
-
|
(2)
|
-
|
(2)
|
|||
|
Costs to achieve
|
(29)
|
(51)
|
43
|
(29)
|
(46)
|
37
|
|
|
Total operating expenses
|
(2,250)
|
(2,342)
|
4
|
(2,250)
|
(2,144)
|
(5)
|
|
|
Other net income
|
7
|
11
|
(36)
|
7
|
10
|
(30)
|
|
|
Profit before tax
|
979
|
984
|
(1)
|
979
|
885
|
11
|
|
|
Attributable profit
|
332
|
360
|
(8)
|
332
|
320
|
4
|
|
|
As at 31.12.15
|
As at 31.12.14
|
As at 31.12.15
|
As at 31.12.14
|
||||
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
|||
|
Loans and advances to customers at amortised cost
|
29.9
|
35.2
|
29.9
|
27.6
|
|||
|
Total assets
|
49.9
|
55.5
|
49.9
|
43.8
|
|||
|
Customer deposits
|
30.6
|
35.0
|
30.6
|
27.6
|
|||
|
Risk weighted assets
|
33.9
|
38.5
|
33.9
|
31.3
|
|||
|
Performance measures
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|||||
|
Return on average tangible equity
|
11.7%
|
12.9%
|
|||||
|
Average allocated tangible equity (£bn)
|
2.8
|
2.8
|
|||||
|
Return on average equity
|
8.7%
|
9.3%
|
|||||
|
Average allocated equity (£bn)
|
3.8
|
3.9
|
|||||
|
Cost: income ratio
|
63%
|
64%
|
|||||
|
Loan loss rate (bps)
|
109
|
93
|
|||||
|
Net interest margin
|
6.06%
|
5.95%
|
|||||
|
1
|
Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the year ended 31 December 2015 for the income statement and the 31 December 2015 closing exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the reporting periods.
|
|
·
|
Profit before tax decreased 1% to £979m and total income net of insurance claims decreased 2% to £3,574m. The ZAR depreciated against GBP by 10% based on average rates and by 28% based on the closing exchange rate in 2015. The deterioration was a significant contributor to the movement in the reported results of Africa Banking and therefore the discussion of business performance below is based on results on a constant currency basis
|
|
·
|
Profit before tax increased 11% to £979m reflecting an increase of 18% in operations outside South Africa and an increase of 9% in South Africa despite the challenging macroeconomic environment. Good growth was delivered in the focus areas of Retail and Business Banking (RBB) and corporate banking in South Africa, and Wealth, Investment Management and Insurance (WIMI), whilst performance in the corporate business outside South Africa was impacted by higher impairment
|
|
|
·
|
Total income net of insurance claims increased 7% to £3,574m
|
|
|
-
|
Net interest income increased 8% to £2,066m driven by higher average customer advances in Corporate and Investment Banking (CIB) and strong growth in customer deposits in RBB. Net interest margin increased 11bps to 6.06% primarily due to improved asset margins in retail in South Africa
|
|
|
-
|
Net fee, commission and other income increased 5% to £1,668m reflecting increased transactional income in RBB, partially offset by lower investment banking income in South Africa
|
|
|
·
|
Credit impairment charges increased 11% to £352m driven by an increase in single name exposures and additional coverage on performing loans. The loan loss rate increased 16bps to 109bps
|
|
|
·
|
Total operating expenses increased 5% to £2,250m reflecting inflationary impacts, partially offset by savings from strategic cost programmes including the restructure of the branch network, technology improvements and property rationalisation
|
|
|
·
|
Loans and advances to customers increased 8% to £29.9bn driven by strong CIB growth
|
|
|
·
|
Total assets increased 14% to £49.9bn primarily due to the increase in loans and advances to customers
|
|
|
·
|
Customer deposits increased 11% to £30.6bn reflecting strong growth in the RBB business
|
|
|
·
|
RWAs increased 8% to £33.9bn primarily due to an increase in corporate lending
|
|
|
Investment Bank
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
588
|
647
|
(9)
|
|
Net trading income
|
3,859
|
3,735
|
3
|
|
Net fee, commission and other income
|
3,125
|
3,206
|
(3)
|
|
Total income
|
7,572
|
7,588
|
-
|
|
Credit impairment (charges)/releases and other provisions
|
(55)
|
14
|
|
|
Net operating income
|
7,517
|
7,602
|
(1)
|
|
Operating expenses
|
(5,362)
|
(5,504)
|
3
|
|
UK bank levy
|
(203)
|
(218)
|
7
|
|
Litigation and conduct
|
(107)
|
(129)
|
17
|
|
Costs to achieve
|
(234)
|
(374)
|
37
|
|
Total operating expenses
|
(5,906)
|
(6,225)
|
5
|
|
Profit before tax
|
1,611
|
1,377
|
17
|
|
Attributable profit
|
804
|
397
|
|
|
As at 31.12.15
|
As at 31.12.14
|
||
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances to banks and customers at amortised cost1
|
92.2
|
106.3
|
|
|
Trading portfolio assets
|
65.1
|
94.8
|
|
|
Derivative financial instrument assets
|
114.3
|
152.6
|
|
|
Derivative financial instrument liabilities
|
122.2
|
160.6
|
|
|
Reverse repurchase agreements and other similar secured lending2
|
25.5
|
64.3
|
|
|
Financial assets designated at fair value2
|
48.1
|
8.9
|
|
|
Total assets
|
375.9
|
455.7
|
|
|
Risk weighted assets
|
108.3
|
122.4
|
|
|
Performance measures
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Return on average tangible equity
|
6.0%
|
2.8%
|
|
|
Average allocated tangible equity (£bn)
|
13.9
|
14.6
|
|
|
Return on average equity
|
5.6%
|
2.7%
|
|
|
Average allocated equity (£bn)
|
14.8
|
15.4
|
|
|
Cost: income ratio
|
78%
|
82%
|
|
|
Analysis of total income
|
£m
|
£m
|
% Change
|
|
Investment banking fees
|
2,093
|
2,111
|
(1)
|
|
Lending
|
436
|
417
|
5
|
|
Banking
|
2,529
|
2,528
|
-
|
|
Credit
|
995
|
1,044
|
(5)
|
|
Equities
|
2,001
|
2,046
|
(2)
|
|
Macro
|
2,034
|
1,950
|
4
|
|
Markets
|
5,030
|
5,040
|
-
|
|
Banking & Markets
|
7,559
|
7,568
|
-
|
|
Other
|
13
|
20
|
(35)
|
|
Total income
|
7,572
|
7,588
|
-
|
|
1
|
As at 31 December 2015 loans and advances included £74.8bn (2014: £86.4bn) of loans and advances to customers (including settlement balances of £18.6bn (2014: £25.8bn) and cash collateral of £24.8bn (2014: £32.2bn)), and loans and advances to banks of £17.4bn (2014: £19.9bn) (including settlement balances of £1.6bn (2014: £2.7bn) and cash collateral of £5.7bn (2014: £6.9bn)).
|
|
2
|
During 2015, new reverse repurchase agreements and other similar secured lending in certain businesses have been designated at fair value to better align to the way the business manages the portfolio's risk and performance. Included within financial assets designated at fair value are reverse repurchase agreements designated at fair value of £42.5bn (2014: £3.4bn).
|
|
·
|
Profit before tax increased 17% to £1,611m. Income remained flat despite reductions in RWAs. Focusing on its home markets of the UK and US, the business continued to build on existing strengths in the face of challenging market conditions. Costs decreased as a result of improved cost efficiency and a reduction in costs to achieve
|
||
|
·
|
Total income was broadly flat at £7,572m (2014: £7,588m), including the appreciation of the average USD rate against GBP
|
||
|
-
|
Banking income was flat at £2,529m (2014: £2,528m). Investment Banking fee income reduced 1% to £2,093m driven by lower equity underwriting fees, partially offset by higher financial advisory and debt underwriting fees. Lending income increased to £436m (2014: £417m) due to lower losses on fair value hedges
|
||
|
-
|
Markets income was broadly flat at £5,030m (2014: £5,040m)
|
||
|
-
|
Credit income decreased 5% to £995m driven by lower income in securitised products as a result of the accelerated strategic repositioning in this asset class and lower income from distressed credit. This was partially offset by higher income as a result of client driven credit flow trading
|
||
|
-
|
Equities income decreased 2% to £2,001m driven by lower client activity in EMEA in equity derivatives, partially offset by higher performance in cash equities
|
||
|
-
|
Macro income increased 4% to £2,034m due to higher income in rates and currency products reflecting increased market volatility and client activity
|
||
|
·
|
Credit impairment charges of £55m (2014: release of £14m) arose from a number of single name exposures
|
||
|
·
|
Total operating expenses decreased 5% to £5,906m reflecting a 5% reduction in compensation costs to £3,423m and lower costs to achieve. Further cost savings were achieved from strategic cost programmes, including business restructuring, operational streamlining and real estate rationalisation, partially offset by the appreciation of the average USD rate against GBP
|
||
|
·
|
Derivative financial instrument assets and liabilities decreased 25% to £114.3bn and 24% to £122.2bn respectively, due to net trade reduction and increases in major interest rate forward curves
|
||
|
·
|
Trading portfolio assets decreased 31% to £65.1bn primarily driven by balance sheet deleveraging, resulting in lower securities positions
|
||
|
·
|
Total assets decreased 18% to £375.9bn due to a decrease in derivative financial instrument assets, trading portfolio assets, and settlement and cash collateral balances within loans and advances to banks and customers
|
||
|
·
|
RWAs decreased 12% to £108.3bn mainly due to a reduction in securities and derivatives, and improved RWA efficiency
|
||
|
Head Office
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
Income statement information
|
£m
|
£m
|
|
Net operating (expense)/income
|
(107)
|
242
|
|
Operating expenses
|
(246)
|
(57)
|
|
UK bank levy
|
(8)
|
(9)
|
|
Litigation and conduct
|
(14)
|
(66)
|
|
Costs to achieve
|
(32)
|
(10)
|
|
Total operating expenses
|
(300)
|
(142)
|
|
Other net income/(expenses)
|
5
|
(3)
|
|
(Loss)/profit before tax
|
(402)
|
97
|
|
Attributable (loss)/profit
|
(202)
|
112
|
|
As at 31.12.15
|
As at 31.12.14
|
|
|
Balance sheet information
|
£bn
|
£bn
|
|
Total assets
|
56.4
|
49.1
|
|
Risk weighted assets
|
7.7
|
5.6
|
|
·
|
The loss before tax of £402m (2014: profit of £97m) was primarily due to the net expense from Treasury operations and costs relating to the implementation of the structural reform programme
|
|
·
|
Net operating income decreased to an expense of £107m (2014: income of £242m) primarily reflecting the net expense from Treasury operations and the non-recurrence of gains in 2014, including net gains from foreign exchange recycling arising from the restructure of Group subsidiaries
|
|
·
|
Total operating expenses increased £158m to £300m primarily due to costs relating to the implementation of the structural reform programme and an increase in costs to achieve, partially offset by reduced litigation and conduct charges
|
|
·
|
Total assets increased £7.3bn to £56.4bn due to an increase in the element of the liquidity buffer held centrally
|
|
Barclays Non-Core
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Income statement information
|
£m
|
£m
|
% Change
|
|
Net interest income
|
249
|
214
|
16
|
|
Net trading income
|
(805)
|
120
|
|
|
Net fee, commission and other income
|
765
|
1,026
|
(25)
|
|
Total income
|
209
|
1,360
|
(85)
|
|
Net claims and benefits incurred under insurance contracts
|
(373)
|
(310)
|
(20)
|
|
Total income net of insurance claims
|
(164)
|
1,050
|
|
|
Credit impairment charges and other provisions
|
(78)
|
(168)
|
54
|
|
Net operating income
|
(242)
|
882
|
|
|
Operating expenses
|
(873)
|
(1,510)
|
42
|
|
UK bank levy
|
(78)
|
(91)
|
14
|
|
Litigation and conduct
|
(148)
|
(198)
|
25
|
|
Costs to achieve
|
(100)
|
(212)
|
53
|
|
Total operating expenses
|
(1,199)
|
(2,011)
|
40
|
|
Other net expenses
|
(18)
|
(51)
|
65
|
|
Loss before tax
|
(1,459)
|
(1,180)
|
(24)
|
|
Attributable loss
|
(1,523)
|
(1,085)
|
(40)
|
|
As at 31.12.15
|
As at 31.12.14
|
||
|
Balance sheet information
|
£bn
|
£bn
|
|
|
Loans and advances to banks and customers at amortised cost1
|
45.9
|
63.9
|
|
|
Derivative financial instrument assets
|
210.3
|
285.4
|
|
|
Derivative financial instrument liabilities
|
198.7
|
277.1
|
|
|
Reverse repurchase agreements and other similar secured lending2
|
2.4
|
49.3
|
|
|
Financial assets designated at fair value2
|
20.1
|
22.2
|
|
|
Total assets
|
303.1
|
471.5
|
|
|
Customer deposits
|
14.9
|
21.6
|
|
|
Risk weighted assets
|
46.6
|
75.3
|
|
|
Leverage exposure
|
121.3
|
277.5
|
|
|
Performance measures
|
Year ended
31.12.15
|
Year ended
31.12.14
|
|
|
Return on average tangible equity impact3
|
(5.1%)
|
(5.4%)
|
|
|
Average allocated tangible equity (£bn)
|
8.9
|
13.2
|
|
|
Return on average equity impact3
|
(4.1%)
|
(4.1%)
|
|
|
Average allocated equity (£bn)
|
9.0
|
13.4
|
|
|
Period end allocated equity (£bn)
|
7.2
|
11.0
|
|
|
Analysis of total income net of insurance claims
|
£m
|
£m
|
% Change
|
|
Businesses
|
613
|
1,101
|
(44)
|
|
Securities and loans
|
(481)
|
117
|
|
|
Derivatives
|
(296)
|
(168)
|
(76)
|
|
Total income net of insurance claims
|
(164)
|
1,050
|
|
1
|
As at 31 December 2015 loans and advances included £35.2bn (2014: £51.6bn) of loans and advances to customers (including settlement balances of £0.2bn (2014: £1.6bn) and cash collateral of £19.0bn (2014: £22.1bn)) and loans and advances to banks of £10.6bn (2014: £12.3bn) (including settlement balances of £nil (2014: £0.3bn) and cash collateral of £10.1bn (2014: £11.3bn)).
|
|
2
|
During 2015, new reverse repurchase agreements and other similar secured lending in certain businesses have been designated at fair value to better align to the way the business manages the portfolio's risk and performance. Included within financial assets designated at fair value are reverse repurchase agreements designated at fair value of £1.4bn (2014: £1.0bn)
|
|
3
|
Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group. This does not represent the return on average equity and average tangible equity of the Non-Core business.
|
|
·
|
Loss before tax increased 24% to £1,459m driven by continued progress in the exit of Businesses, Securities and loans, and Derivative assets. RWAs reduced £29bn to £47bn including a £10bn reduction in Derivatives, £9bn reduction in Securities and loans, and Business reductions from the completion of the sales of the Spanish and UK Secured Lending businesses. The announced sales of the Portuguese and Italian retail businesses, which are due to be completed in H116, are expected to result in a further £2.5bn reduction in RWAs
|
|
|
·
|
Total income net of insurance claims reduced to an expense of £164m (2014: income of £1,050m)
|
|
|
-
|
Businesses income reduced 44% to £613m due to the impact of the sale of the Spanish business and the sale and rundown of legacy portfolio assets
|
|
|
-
|
Securities and loans income reduced to an expense of £481m (2014: income of £117m) primarily driven by fair value losses and funding costs on the ESHLA portfolio, the active rundown of securities, exit of historical investment bank businesses and the non-recurring gain on the sale of the UAE retail banking portfolio in 2014. Fair value losses on the ESHLA portfolio were £359m (2014: £156m), of which £156m was in Q415, as gilt swap spreads widened
|
|
|
-
|
Derivatives income reduced 76% to an expense of £296m reflecting the active rundown of the portfolios and funding costs
|
|
|
·
|
Credit impairment charges improved 54% to £78m due to higher recoveries in Europe and the sale of the Spanish business
|
|
|
·
|
Total operating expenses improved 40% to £1,199m reflecting savings from the sales of the Spanish, UAE retail, commodities, and several principal investment businesses, as well as a reduction in costs to achieve, and conduct and litigation charges
|
|
|
·
|
Loans and advances to banks and customers reduced 28% to £45.9bn due to the reclassification of £5.5bn of loans relating to the announced sales of the Portuguese and Italian businesses to assets held for sale, and the rundown and exit of historical investment bank assets
|
|
|
·
|
Derivative financial instrument assets and liabilities decreased 26% to £210.3bn and 28% to £198.7bn respectively, largely as a result of trade reduction
|
|
|
·
|
Total assets decreased 36% to £303.1bn due to reduced reverse repurchase agreements and other similar secured lending, and lower derivative financial instrument assets
|
|
|
·
|
Leverage exposure reduced £156.2bn to £121.3bn primarily in reverse repurchase agreements, potential future exposure on derivatives and trading portfolio assets
|
|
|
·
|
RWAs decreased £28.7bn to £46.6bn and period end equity decreased £3.8bn to £7.2bn primarily driven by the sale of the Spanish business, the active rundown of legacy structured and credit products, and derivative trade unwinds
|
|
|
Barclays results by quarter
|
Q415
|
Q315
|
Q215
|
Q115
|
Q414
|
Q314
|
Q214
|
Q114
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Adjusted basis
|
|||||||||
|
Total income net of insurance claims
|
5,438
|
6,108
|
6,552
|
6,430
|
6,018
|
6,378
|
6,682
|
6,650
|
|
|
Credit impairment charges and other provisions
|
(646)
|
(495)
|
(496)
|
(477)
|
(573)
|
(509)
|
(538)
|
(548)
|
|
|
Net operating income
|
4,792
|
5,613
|
6,056
|
5,953
|
5,445
|
5,869
|
6,144
|
6,102
|
|
|
Operating expenses
|
(3,697)
|
(3,842)
|
(3,897)
|
(3,915)
|
(3,942)
|
(3,879)
|
(4,042)
|
(4,130)
|
|
|
UK bank levy
|
(476)
|
-
|
-
|
-
|
(462)
|
-
|
-
|
-
|
|
|
Litigation and conduct
|
(106)
|
(138)
|
(77)
|
(57)
|
(140)
|
(98)
|
(146)
|
(65)
|
|
|
Costs to achieve
|
(254)
|
(223)
|
(196)
|
(120)
|
(339)
|
(332)
|
(254)
|
(240)
|
|
|
Total operating expenses
|
(4,533)
|
(4,203)
|
(4,170)
|
(4,092)
|
(4,883)
|
(4,309)
|
(4,442)
|
(4,435)
|
|
|
Other net (expenses)/income
|
(12)
|
17
|
(37)
|
19
|
1
|
30
|
(46)
|
26
|
|
|
Adjusted profit before tax
|
247
|
1,427
|
1,849
|
1,880
|
563
|
1,590
|
1,656
|
1,693
|
|
|
Adjusting items
|
|||||||||
|
Provisions for UK customer redress
|
(1,450)
|
(290)
|
(850)
|
(182)
|
(200)
|
(10)
|
(900)
|
-
|
|
|
Provisions for ongoing investigations and litigation including Foreign Exchange
|
(167)
|
(270)
|
-
|
(800)
|
(750)
|
(500)
|
-
|
-
|
|
|
Losses on sale relating to the Spanish, Portuguese and Italian businesses
|
(261)
|
(201)
|
-
|
(118)
|
(82)
|
(364)
|
-
|
-
|
|
|
Gain on US Lehman acquisition assets
|
-
|
-
|
496
|
-
|
-
|
461
|
-
|
-
|
|
|
Own credit
|
(175)
|
195
|
282
|
128
|
(62)
|
44
|
(67)
|
119
|
|
|
Gain on valuation of a component of the defined retirement benefit liability
|
-
|
-
|
-
|
429
|
-
|
-
|
-
|
-
|
|
|
Impairment of goodwill and other assets relating to businesses being disposed
|
(96)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Revision of ESHLA valuation methodology
|
-
|
-
|
-
|
-
|
(935)
|
-
|
-
|
-
|
|
|
Statutory (loss)/profit before tax
|
(1,902)
|
861
|
1,777
|
1,337
|
(1,466)
|
1,221
|
689
|
1,812
|
|
|
Tax (charge)/credit
|
(236)
|
(208)
|
(394)
|
(612)
|
85
|
(601)
|
(298)
|
(597)
|
|
|
Statutory (loss)/profit after tax
|
(2,138)
|
653
|
1,383
|
725
|
(1,381)
|
620
|
391
|
1,215
|
|
|
Attributable to:
|
|||||||||
|
Ordinary equity holders of the parent
|
(2,422)
|
417
|
1,146
|
465
|
(1,679)
|
379
|
161
|
965
|
|
|
Other equity holders
|
107
|
79
|
79
|
80
|
80
|
80
|
41
|
49
|
|
|
Non-controlling interests
|
177
|
157
|
158
|
180
|
218
|
161
|
189
|
201
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
Total assets
|
1,120.0
|
1,236.5
|
1,196.7
|
1,416.4
|
1,357.9
|
1,365.7
|
1,314.9
|
1,362.1
|
|
|
Risk weighted assets
|
358.4
|
381.9
|
376.7
|
395.9
|
401.9
|
412.9
|
411.1
|
436.3
|
|
|
Adjusted performance measures
|
|||||||||
|
Return on average tangible shareholders' equity
|
(1.9%)
|
6.7%
|
9.1%
|
9.0%
|
1.7%
|
7.1%
|
7.5%
|
7.6%
|
|
|
Average tangible shareholders' equity (£bn)
|
48.0
|
47.9
|
47.7
|
48.7
|
48.9
|
47.6
|
47.5
|
47.2
|
|
|
Return on average shareholders' equity
|
(1.6%)
|
5.7%
|
7.8%
|
7.7%
|
1.5%
|
6.1%
|
6.4%
|
6.5%
|
|
|
Average shareholders' equity (£bn)
|
56.2
|
56.1
|
56.0
|
57.0
|
57.1
|
55.6
|
55.3
|
54.8
|
|
|
Cost: income ratio
|
83%
|
69%
|
64%
|
64%
|
81%
|
68%
|
66%
|
67%
|
|
|
Loan loss rate (bps)
|
58
|
40
|
41
|
37
|
48
|
42
|
44
|
45
|
|
|
Basic (loss)/earnings per share
|
(1.3p)
|
4.8p
|
6.5p
|
6.6p
|
1.3p
|
5.2p
|
5.4p
|
5.5p
|
|
|
Statutory performance measures
|
|||||||||
|
Return on average tangible shareholders' equity
|
(20.1%)
|
3.6%
|
9.8%
|
4.0%
|
(13.8%)
|
3.4%
|
1.4%
|
8.4%
|
|
|
Average tangible shareholders' equity (£bn)
|
47.8
|
47.6
|
47.2
|
48.1
|
48.3
|
46.8
|
46.7
|
46.4
|
|
|
Return on average shareholders' equity
|
(17.1%)
|
3.1%
|
8.4%
|
3.4%
|
(11.8%)
|
2.9%
|
1.2%
|
7.2%
|
|
|
Average shareholders' equity (£bn)
|
56.0
|
55.8
|
55.5
|
56.3
|
56.4
|
54.8
|
54.5
|
54.0
|
|
|
Cost: income ratio
|
119%
|
76%
|
68%
|
71%
|
116%
|
70%
|
81%
|
66%
|
|
|
Basic (loss)/earnings per share
|
(14.4p)
|
2.6p
|
7.0p
|
2.9p
|
(10.2p)
|
2.4p
|
1.0p
|
6.0p
|
|
Barclays Core
|
Q415
|
Q315
|
Q215
|
Q115
|
Q414
|
Q314
|
Q214
|
Q114
|
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
Total income net of insurance claims
|
5,650
|
6,102
|
6,520
|
6,420
|
5,996
|
6,008
|
6,397
|
6,277
|
|
|
Credit impairment charges and other provisions
|
(630)
|
(470)
|
(488)
|
(448)
|
(571)
|
(492)
|
(456)
|
(481)
|
|
|
Net operating income
|
5,020
|
5,632
|
6,032
|
5,972
|
5,425
|
5,516
|
5,941
|
5,796
|
|
|
Operating expenses
|
(3,493)
|
(3,626)
|
(3,663)
|
(3,696)
|
(3,614)
|
(3,557)
|
(3,602)
|
(3,710)
|
|
|
UK bank levy
|
(398)
|
-
|
-
|
-
|
(371)
|
-
|
-
|
-
|
|
|
Litigation and conduct
|
(77)
|
(64)
|
(41)
|
(48)
|
(56)
|
(16)
|
(136)
|
(43)
|
|
|
Costs to achieve
|
(199)
|
(201)
|
(184)
|
(109)
|
(298)
|
(202)
|
(237)
|
(216)
|
|
|
Total operating expenses
|
(4,167)
|
(3,891)
|
(3,888)
|
(3,853)
|
(4,339)
|
(3,775)
|
(3,975)
|
(3,969)
|
|
|
Other net income/(expenses)
|
4
|
23
|
(39)
|
17
|
9
|
6
|
27
|
20
|
|
|
Profit before tax
|
857
|
1,764
|
2,105
|
2,136
|
1,095
|
1,747
|
1,993
|
1,847
|
|
|
Attributable profit
|
547
|
1,115
|
1,273
|
1,284
|
638
|
1,002
|
1,171
|
1,053
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
Total assets
|
816.9
|
891.1
|
858.5
|
949.6
|
886.5
|
899.3
|
846.3
|
863.7
|
|
|
Risk weighted assets
|
311.8
|
327.0
|
320.1
|
331.1
|
326.6
|
331.9
|
323.6
|
330.3
|
|
|
Performance measures
|
|||||||||
|
Return on average tangible equity
|
5.7%
|
11.4%
|
13.3%
|
13.5%
|
7.0%
|
11.5%
|
13.8%
|
13.2%
|
|
|
Average allocated tangible equity (£bn)
|
40.0
|
39.6
|
38.6
|
38.5
|
37.0
|
35.2
|
34.0
|
32.2
|
|
|
Return on average equity
|
4.7%
|
9.5%
|
11.0%
|
11.1%
|
5.8%
|
9.5%
|
11.3%
|
10.7%
|
|
|
Average allocated equity (£bn)
|
48.1
|
47.7
|
46.7
|
46.7
|
45.0
|
43.0
|
41.6
|
39.6
|
|
|
Cost: income ratio
|
74%
|
64%
|
60%
|
60%
|
72%
|
63%
|
62%
|
63%
|
|
|
Loan loss rate (bps)
|
63
|
43
|
45
|
41
|
55
|
46
|
44
|
60
|
|
|
Basic earnings per share contribution
|
3.4p
|
6.8p
|
7.7p
|
7.8p
|
4.0p
|
6.2p
|
7.2p
|
6.5p
|
|
|
Barclays Non-Core
|
|||||||||
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
Businesses
|
139
|
199
|
153
|
122
|
228
|
327
|
245
|
301
|
|
|
Securities and loans
|
(228)
|
(138)
|
(42)
|
(73)
|
(142)
|
106
|
66
|
87
|
|
|
Derivatives
|
(123)
|
(55)
|
(79)
|
(39)
|
(64)
|
(63)
|
(26)
|
(15)
|
|
|
Total income net of insurance claims
|
(212)
|
6
|
32
|
10
|
22
|
370
|
285
|
373
|
|
|
Credit impairment charges and other provisions
|
(16)
|
(25)
|
(8)
|
(29)
|
(2)
|
(17)
|
(82)
|
(67)
|
|
|
Net operating (expenses)/income
|
(228)
|
(19)
|
24
|
(19)
|
20
|
353
|
203
|
306
|
|
|
Operating expenses
|
(204)
|
(216)
|
(234)
|
(219)
|
(329)
|
(321)
|
(441)
|
(419)
|
|
|
UK bank levy
|
(78)
|
-
|
-
|
-
|
(91)
|
-
|
-
|
-
|
|
|
Litigation and conduct
|
(29)
|
(74)
|
(36)
|
(9)
|
(83)
|
(82)
|
(10)
|
(23)
|
|
|
Costs to achieve
|
(55)
|
(22)
|
(12)
|
(11)
|
(41)
|
(130)
|
(17)
|
(24)
|
|
|
Total operating expenses
|
(366)
|
(312)
|
(282)
|
(239)
|
(544)
|
(533)
|
(468)
|
(466)
|
|
|
Other net (expenses)/income
|
(16)
|
(6)
|
2
|
2
|
(8)
|
23
|
(72)
|
6
|
|
|
Loss before tax
|
(610)
|
(337)
|
(256)
|
(256)
|
(532)
|
(157)
|
(337)
|
(154)
|
|
|
Attributable loss
|
(793)
|
(328)
|
(203)
|
(199)
|
(448)
|
(173)
|
(294)
|
(171)
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
Loans and advances to banks and customers at amortised cost
|
45.9
|
50.9
|
53.9
|
65.6
|
63.9
|
64.5
|
75.5
|
83.4
|
|
|
Derivative financial instrument assets
|
210.3
|
239.5
|
220.9
|
301.9
|
285.4
|
249.6
|
227.0
|
231.5
|
|
|
Derivative financial instrument liabilities
|
198.7
|
231.0
|
213.6
|
295.6
|
277.1
|
240.0
|
215.0
|
220.9
|
|
|
Reverse repurchase agreements and other similar secured lending
|
2.4
|
7.1
|
15.6
|
42.8
|
49.3
|
73.9
|
86.8
|
98.3
|
|
|
Financial assets designated at fair value
|
20.1
|
19.8
|
19.5
|
21.7
|
22.2
|
21.9
|
21.5
|
22.2
|
|
|
Total assets
|
303.1
|
345.4
|
338.2
|
466.8
|
471.5
|
466.5
|
468.6
|
498.4
|
|
|
Customer deposits
|
14.9
|
17.9
|
19.6
|
20.5
|
21.6
|
22.2
|
28.6
|
30.7
|
|
|
Risk weighted assets
|
46.6
|
54.8
|
56.6
|
64.8
|
75.3
|
81.0
|
87.5
|
106.0
|
|
|
Performance measures
|
|||||||||
|
Return on average tangible equity1
|
(7.6%)
|
(4.7%)
|
(4.2%)
|
(4.5%)
|
(5.3%)
|
(4.4%)
|
(6.3%)
|
(5.6%)
|
|
|
Average allocated tangible equity (£bn)
|
8.0
|
8.3
|
9.1
|
10.2
|
11.9
|
12.4
|
13.5
|
15.0
|
|
|
Return on average equity1
|
(6.3%)
|
(3.8%)
|
(3.2%)
|
(3.4%)
|
(4.3%)
|
(3.4%)
|
(4.9%)
|
(4.2%)
|
|
|
Average allocated equity (£bn)
|
8.1
|
8.4
|
9.3
|
10.3
|
12.1
|
12.6
|
13.7
|
15.2
|
|
|
Period end allocated equity (£bn)
|
7.2
|
8.5
|
8.3
|
9.7
|
11.0
|
12.1
|
12.7
|
14.9
|
|
|
Basic loss per share contribution
|
(4.7p)
|
(2.0p)
|
(1.2p)
|
(1.2p)
|
(2.7p)
|
(1.0p)
|
(1.8p)
|
(1.0p)
|
|
1
|
Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group. This does not represent the return on average equity and average tangible equity of the Non-Core business.
|
|
Personal and Corporate Banking
|
Q415
|
Q315
|
Q215
|
Q115
|
Q414
|
Q314
|
Q214
|
Q114
|
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
Total income
|
2,162
|
2,180
|
2,210
|
2,174
|
2,231
|
2,236
|
2,188
|
2,173
|
|
|
Credit impairment charges and other provisions
|
(118)
|
(82)
|
(99)
|
(79)
|
(123)
|
(129)
|
(95)
|
(135)
|
|
|
Net operating income
|
2,044
|
2,098
|
2,111
|
2,095
|
2,108
|
2,107
|
2,093
|
2,038
|
|
|
Operating expenses
|
(1,123)
|
(1,185)
|
(1,232)
|
(1,234)
|
(1,204)
|
(1,222)
|
(1,247)
|
(1,278)
|
|
|
UK bank levy
|
(93)
|
-
|
-
|
-
|
(70)
|
-
|
-
|
-
|
|
|
Litigation and conduct
|
(78)
|
(6)
|
(23)
|
(2)
|
(15)
|
(10)
|
(9)
|
(20)
|
|
|
Costs to achieve
|
(88)
|
(65)
|
(97)
|
(42)
|
(195)
|
(90)
|
(58)
|
(57)
|
|
|
Total operating expenses
|
(1,382)
|
(1,256)
|
(1,352)
|
(1,278)
|
(1,484)
|
(1,322)
|
(1,314)
|
(1,355)
|
|
|
Other net (expenses)/income
|
(5)
|
13
|
(50)
|
2
|
4
|
4
|
1
|
5
|
|
|
Profit before tax
|
657
|
855
|
709
|
819
|
628
|
789
|
780
|
688
|
|
|
Attributable profit
|
431
|
646
|
500
|
602
|
441
|
578
|
559
|
480
|
|
|
Balance sheet information
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
Loans and advances to customers at amortised cost
|
218.4
|
220.8
|
217.5
|
219.0
|
217.0
|
215.7
|
216.7
|
215.5
|
|
|
Total assets
|
287.2
|
294.0
|
289.9
|
294.1
|
285.0
|
275.7
|
268.1
|
271.5
|
|
|
Customer deposits
|
305.4
|
302.5
|
298.5
|
298.1
|
299.2
|
295.9
|
298.3
|
297.2
|
|
|
Risk weighted assets
|
120.4
|
122.2
|
120.6
|
122.5
|
120.2
|
120.0
|
117.9
|
116.1
|
|
|
Performance measures
|
|||||||||
|
Return on average tangible equity
|
12.8%
|
19.2%
|
14.9%
|
17.8%
|
13.3%
|
17.8%
|
17.5%
|
14.7%
|
|
|
Average allocated tangible equity (£bn)
|
13.7
|
13.6
|
13.6
|
13.6
|
13.4
|
13.1
|
12.9
|
13.1
|
|
|
Return on average equity
|
9.5%
|
14.4%
|
11.2%
|
13.4%
|
10.0%
|
13.4%
|
13.1%
|
11.1%
|
|
|
Average allocated equity (£bn)
|
18.4
|
18.1
|
18.1
|
18.1
|
17.8
|
17.5
|
17.2
|
17.4
|
|
|
Cost: income ratio
|
64%
|
58%
|
61%
|
59%
|
67%
|
59%
|
60%
|
62%
|
|
|
Loan loss rate (bps)
|
21
|
14
|
18
|
14
|
22
|
23
|
17
|
25
|
|
|
Net interest margin
|
3.00%
|
2.97%
|
2.99%
|
3.02%
|
3.02%
|
3.05%
|
2.93%
|
2.99%
|
|
|
Analysis of total income
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
Personal
|
1,022
|
1,018
|
1,005
|
1,009
|
1,045
|
1,061
|
1,027
|
1,026
|
|
|
Corporate
|
942
|
935
|
970
|
907
|
922
|
902
|
889
|
879
|
|
|
Wealth
|
198
|
227
|
235
|
258
|
264
|
273
|
272
|
268
|
|
|
Total income
|
2,162
|
2,180
|
2,210
|
2,174
|
2,231
|
2,236
|
2,188
|
2,173
|
|
|
Analysis of loans and advances to customers at amortised cost
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
Personal
|
137.0
|
137.7
|
137.8
|
137.5
|
136.8
|
136.5
|
135.9
|
134.9
|
|
|
Corporate
|
67.9
|
69.0
|
66.0
|
66.5
|
65.1
|
63.1
|
64.8
|
64.2
|
|
|
Wealth
|
13.5
|
14.1
|
13.7
|
15.0
|
15.1
|
16.1
|
16.0
|
16.4
|
|
|
Total loans and advances to customers at amortised cost
|
218.4
|
220.8
|
217.5
|
219.0
|
217.0
|
215.7
|
216.7
|
215.5
|
|
|
Analysis of customer deposits
|
|||||||||
|
Personal
|
151.3
|
148.7
|
146.3
|
145.3
|
145.8
|
143.0
|
141.6
|
141.3
|
|
|
Corporate
|
124.4
|
123.2
|
120.3
|
120.9
|
122.2
|
120.7
|
123.7
|
120.9
|
|
|
Wealth
|
29.7
|
30.6
|
31.9
|
31.9
|
31.2
|
32.2
|
33.0
|
35.0
|
|
|
Total customer deposits
|
305.4
|
302.5
|
298.5
|
298.1
|
299.2
|
295.9
|
298.3
|
297.2
|
|
Barclaycard
|
Q415
|
Q315
|
Q215
|
Q115
|
Q414
|
Q314
|
Q214
|
Q114
|
|
|
Income statement information
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
Total income
|
1,278
|
1,292
|
1,222
|
1,135
|
1,109
|
1,123
|
1,082
|
1,042
|
|
|
Credit impairment charges and other provisions
|
(403)
|
(285)
|
(273)
|
(290)
|
(362)
|
(284)
|
(268)
|
(269)
|
|
|
Net operating income
|
875
|
1,007
|
949
|
845
|
747
|
839
|
814
|
773
|
|
|
Operating expenses
|
(486)
|
(480)
|
(496)
|
(465)
|
(456)
|
(449)
|
(420)
|
(402)
|
|
|
UK bank levy
|
(42)
|
-
|
-
|
-
|
(29)
|
-
|
-
|
-
|
|
|
Costs to achieve
|
(23)
|
(27)
|
(31)
|
(25)
|
(50)
|
(32)
|
(23)
|
(13)
|
|
|
Total operating expenses
|
(551)
|
(507)
|
(527)
|
(490)
|
(535)
|
(481)
|
(443)
|
(415)
|
|
|
Other net income
|
7
|
8
|
7
|
11
|
1
|
4
|
25
|
10
|
|
|
Profit before tax
|
331
|
508
|
429
|
366
|
213
|
362
|
396
|
368
|
|
|
Attributable profit
|
187
|
353
|
307
|
259
|
137
|
262
|
285
|
254
|
|