3rd Quarter Results

· Core returns:

· Core business performed well, with a 4% growth in profit before tax to £4,898m delivering a Core return on tangible equity (RoTE) excluding notable items1 of 10.7%

· Non-Core rundown:

· Remain on track to close Non-Core in 2017 with strong progress on business disposals

· £10bn reduction in RWAs to £44bn, despite adverse Foreign Exchange (FX) movements

· Completed sale of the Barclays Risk Analytics and Index Solutions Ltd. business in Q316, resulting in a pre-tax gain of £535m

· Common Equity Tier 1 (CET1) ratio:

· CET1 ratio of 11.6% with strong organic capital growth offset by headwinds from the UK Retirement Fund (UKRF) defined benefit pension deficit and £1,000m of provisions for UK customer redress in the nine months to September 2016

· On track to meet end-state capital requirements

· Core costs:

· On track to meet the £12.8bn 2016 Core cost guidance2 adjusted for FX. Based on an average USD/GBP exchange rate of 1.30 for H216 this equates to £13.0bn

· We are reducing the real estate footprint resulting in restructuring costs in Barclays International of £150m in Q316 with a structurally lower cost base going forward

· Barclays Africa Group Limited (BAGL) sell down:

· First sale of 12.2% stake completed in May 2016, resulting in a c.10bps benefit to the CET1 ratio

· Remain on track to achieve regulatory deconsolidation within 2 to 3 years

· Holding Company (HoldCo) transition:

· Progressed the HoldCo transition with £10.9bn equivalent of issuance and £7.4bn equivalent of Operating Company (OpCo) capital and debt bought back or redeemed

· Q316 included the redemption of $750m USD preference shares, the second such redemption in 2016, and a £0.6bn equivalent liability management exercise

·

Core profit before tax increased 4% to £4,898m reflecting diversification benefits from consumer and wholesale customers and clients, geographies and products, and the appreciation of USD and EUR against GBP

·

Double digit Core RoTE of 10.7% (Q315 YTD: 12.9%) excluding notable items based on an increased average tangible equity base of £40bn (Q315 YTD: £36bn) with a basic earnings per share contribution of 19.4p (Q315 YTD: 21.3p) excluding notable items

·

Strong Barclays UK RoTE of 20.0% (Q315 YTD: 23.2%) excluding notable items. Net interest margin (NIM) increased 7bps to 3.63% on increased customer deposit balances, offset by lower interchange fee income in Barclaycard Consumer UK and higher credit impairment charges following a one-off impact from a management review of the cards portfolio impairment modelling

·

Double digit Barclays International RoTE of 10.5% (Q315 YTD: 11.5%) excluding notable items. Strong growth in Consumer, Cards and Payments products and encouraging CIB performance, particularly in Q316

·

Group profit before tax decreased 10% to £2,900m driven by the acceleration of Non-Core rundown resulting in a 33% increase in loss before tax to £1,998m

·

Group RoTE decreased to 4.4% (Q315 YTD: 5.8%)

·

Tangible net asset value per share decreased modestly to 287p (June 2016: 289p) in the quarter driven by the UKRF defined benefit pension net assets moving from a £0.1bn surplus to a £1.1bn deficit and £600m of provisions for UK customer redress, partially offset by favourable currency translation reserve movements and profit generated in the period

1

References to underlying performance exclude the impact of notable items. Notable items in Core resulted in a net loss before tax of £465m (Q315 YTD: £693m), as detailed on page 3.

2

Guidance excludes litigation and conduct charges.

Barclays Group results

for the nine months ended

30.09.16

30.09.15

£m

£m

% Change

Total income net of insurance claims

16,459

17,592

(6)

Credit impairment charges and other provisions

(1,720)

(1,208)

(42)

Net operating income

14,739

16,384

(10)

Operating expenses

(10,753)

(10,176)

(6)

Litigation and conduct

(1,266)

(2,665)

52

Total operating expenses

(12,019)

(12,841)

6

Other net income/(expenses)

180

(322)

Profit before tax

2,900

3,221

(10)

Tax charge

(1,043)

(985)

(6)

Profit after tax in respect of continuing operations

1,857

2,236

(17)

Profit after tax in respect of discontinued operation1

520

525

(1)

Non-controlling interests in respect of continuing operations

(255)

(247)

(3)

Non-controlling interests in respect of discontinued operation1

(280)

(248)

(13)

Other equity holders2

(318)

(238)

(34)

Attributable profit

1,524

2,028

(25)

Performance measures

Return on average tangible shareholders' equity2

4.4%

5.8%

Average tangible shareholders' equity (£bn)

49

48

Cost: income ratio

73%

73%

Loan loss rate (bps)

48

35

Basic earnings per share2

9.6p

12.4p

Dividend per share

1.0p

3.0p

As at

As at

As at

Balance sheet and capital management

30.09.16

30.06.16

31.12.15

Tangible net asset value per share

287p

289p

275p

Common equity tier 1 ratio

11.6%

11.6%

11.4%

Common equity tier 1 capital

£43.2bn

£42.4bn

£40.7bn

Risk weighted assets

£373bn

£366bn

£358bn

Leverage ratio

4.2%

4.2%

4.5%

Fully loaded tier 1 capital

£49.9bn

£47.9bn

£46.2bn

Leverage exposure

£1,185bn

£1,155bn

£1,028bn

Funding and liquidity

Group liquidity pool

£157bn

£149bn

£145bn

Estimated CRD IV liquidity coverage ratio

125%

124%

133%

Loan: deposit ratio3

85%

85%

86%

1

Refer to page 15 for further information on the Africa Banking discontinued operation.

2

The profit after tax attributable to other equity holders of £318m (Q315 YTD: £238m) is offset by a tax credit recorded in reserves of £89m (Q315 YTD: £48m). The net amount of £229m (Q315 YTD: £190m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity.

3

Loan: deposit ratio for Barclays UK, Consumer, Cards and Payments, Corporate, and Non-Core retail.

Barclays Core and Non-Core

results for the nine months ended

Barclays Core

Barclays Non-Core

30.09.16

30.09.15

30.09.16

30.09.15

£m

£m

% Change

£m

£m

% Change

Total income net of insurance claims

17,204

16,912

2

(745)

680

Credit impairment charges and other provisions

(1,645)

(1,106)

(49)

(75)

(102)

26

Net operating income/(expenses)

15,559

15,806

(2)

(820)

578

Operating expenses

(9,585)

(8,773)

(9)

(1,168)

(1,403)

17

Litigation and conduct

(1,071)

(2,254)

52

(195)

(411)

53

Total operating expenses

(10,656)

(11,027)

3

(1,363)

(1,814)

25

Other net (expenses)/income

(5)

(55)

91

185

(267)

Profit/(loss) before tax

4,898

4,724

4

(1,998)

(1,503)

(33)

Tax (charge)/credit

(1,703)

(1,387)

(23)

660

402

64

Profit/(loss) after tax

3,195

3,337

(4)

(1,338)

(1,101)

(22)

Non-controlling interests

(221)

(185)

(19)

(35)

(62)

44

Other equity holders

(273)

(191)

(43)

(45)

(47)

4

Attributable profit/(loss)1

2,701

2,961

(9)

(1,418)

(1,210)

(17)

Performance measures

Return on average tangible equity

9.1%

11.0%

Average allocated tangible equity (£bn)1

40

36

8

11

Period end allocated tangible equity (£bn)1

41

38

7

10

Cost: income ratio

62%

65%

n/m

n/m

Loan loss rate (bps)

53

37

16

21

Basic earnings/(loss) per share contribution

16.5p

18.0p

(8.3p)

(7.2p)

As at

As at

As at

As at

As at

As at

Capital management

30.09.16

30.06.16

31.12.15

30.09.16

30.06.16

31.12.15

Risk weighted assets1

£330bn

£320bn

£304bn

£44bn

£47bn

£54bn

Leverage exposure1

£1,065bn

£1,021bn

£879bn

£120bn

£134bn

£149bn

Notable items for the nine months ended

30.09.16

30.09.15

30.09.16

30.09.15

£m

£m

£m

£m

Own credit

(80)

605

-

-

Gain on disposal of Barclays' share of Visa Europe Limited

615

-

-

-

Gains on US Lehman acquisition assets

-

496

-

-

Provisions for UK customer redress

(1,000)

(1,257)

-

(65)

Provisions for ongoing investigations and litigation including Foreign Exchange

-

(869)

-

(201)

Gains on valuation of a component of the defined retirement benefit liability

-

429

-

-

Losses on sale relating to the Spanish and Portuguese business

-

(97)

-

(222)

Total notable items

(465)

(693)

-

(488)

1

Attributable profit in respect of the Africa Banking discontinued operation is reported at the Group level only. Allocated tangible equity, RWAs and leverage exposure are reported in Head Office within Core.

Nine months ended

Nine months ended

30.09.16

30.09.15

Income by business

£m

£m

% Change

Barclays UK

5,689

5,509

3

Barclays International

11,403

10,779

6

Head Office

112

624

(82)

Barclays Core

17,204

16,912

2

Barclays Non-Core

(745)

680

Barclays Group

16,459

17,592

(6)

Profit/(loss) before tax by business

Barclays UK

1,155

1,432

(19)

Barclays International

3,838

3,016

27

Head Office

(95)

276

Barclays Core

4,898

4,724

4

Barclays Non-Core

(1,998)

(1,503)

(33)

Barclays Group

2,900

3,221

(10)

·

Profit before tax decreased 10% to £2,900m. The Group performance reflected strong Core results while being impacted by the acceleration of Non-Core rundown resulting in a loss before tax of £1,998m (Q315 YTD: £1,503m), provisions for UK customer redress of £1,000m (Q315 YTD: £1,322m) and the appreciation of average USD and EUR against GBP, positively impacting income and adversely affecting impairment and operating expenses

·

Return on average tangible shareholders' equity was 4.4% (Q315 YTD: 5.8%) and basic earnings per share was 9.6p (Q315 YTD: 12.4p)

·

Total income net of insurance claims decreased 6% to £16,459m as the acceleration of Non-Core rundown resulted in income reducing £1,425m to a net expense of £745m, while Core income increased 2% to £17,204m

·

While delinquency rates remained broadly stable, credit impairment charges increased 42% to £1,720m primarily driven by a one-off £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling. Q116 also included impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector. These resulted in a 13bps increase in the loan loss rate to 48bps

·

Total operating expenses reduced 6% to £12,019m reflecting savings from strategic cost programmes as well as lower litigation and conduct charges. Operating expenses included a £150m charge in Barclays International in Q316, relating to a reduction in the real estate footprint which will generate savings in future periods, increased structural reform implementation costs, the continued business growth in Consumer, Cards and Payments and the non-recurrence of the prior year gains of £429m on valuation of a component of the defined retirement benefit liability

·

The effective tax rate on profit before tax increased to 36.0% (Q315 YTD: 30.6%) principally as a result of an increase in non-deductible provisions and, with effect from January 2016, a new corporation tax surcharge of 8% on banks' UK profits

·

Profit after tax in respect of continuing operations decreased 17% to £1,857m. Profit after tax in relation to the Africa Banking discontinued operation decreased 1% to £520m

·

In the nine months ended September 2016, notable items resulted in a net loss before tax of £465m (Q315 YTD: £1,181m) comprising provisions for UK customer redress of £1,000m (Q315 YTD: £1,322m), a £615m (Q315 YTD: £nil) gain on disposal of Barclays' share of Visa Europe Limited and an own credit loss of £80m (Q315 YTD: gain of £605m)

·

Profit before tax decreased 1% to £5,363m, including the benefit of the appreciation of average USD and EUR against GBP. This reflected solid performance in both Barclays UK and Barclays International, generating positive cost: income jaws and an improvement in the cost: income ratio to 58% (Q315 YTD: 59%)

·

The Core business generated an RoTE of 10.7% (Q315 YTD: 12.9%) based on an increased average tangible equity base of £40bn (Q315 YTD: £36bn), as capital was returned from Non-Core

·

Total income increased 5% to £16,669m, with Barclays UK income increasing 1% to £5,538m and Barclays International income increasing 6% to £10,939m with growth in both CIB and Consumer, Cards and Payments

·

Credit impairment charges increased 49% to £1,645m resulting in a 16bps increase in the loan loss rate to 53bps primarily due to a one-off £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling

·

Total operating expenses increased 3% to £9,656m. The 2016 Core cost guidance of £12.8bn, excluding litigation and conduct charges and adjusted for FX, remains on track. Based on an average USD/GBP exchange rate of 1.30 in H216 this equates to £13bn

·

RoTE was 20.0% (Q315 YTD: 23.2%), as profit before tax decreased 8% to £2,004m driven by an increase in credit impairment charges, while the cost: income ratio improved to 51% (Q315 YTD: 52%)

·

Total income increased 1% to £5,538m through steady growth in balances and pricing discipline

-

Personal Banking income increased 2% to £2,828m driven by improved deposit margins and balance growth, partially offset by mortgage margin pressure

-

Barclaycard Consumer UK income decreased 3% to £1,515m reflecting the impact of the European Interchange Fee Regulation, which came into full effect from December 2015, partially offset by balance growth and a gain from a debt sale in Q316

-

Wealth, Entrepreneurs & Business Banking (WEBB) income increased 1% to £1,195m reflecting deposit growth, partially offset by reduced transactional appetite from investors and a reduction in assets under management in Wealth

-

Net interest income increased 2% to £4,546m due to deposit balance growth and pricing initiatives, partially offset by a lower mortgage margin. NIM increased 7bps to 3.63% reflecting higher margins on Personal Banking deposits and income from treasury operations in Q316

·

Credit impairment charges increased 47% to £716m primarily due to a one-off £200m charge in Q316 following the management review of the cards portfolio impairment modelling. Excluding this charge, impairment trends remained broadly stable, with the 30 and 90 day arrears rates on the cards portfolio improving year-on-year to 2.0% (Q315 YTD: 2.2%) and 1.0% (Q315 YTD: 1.1%) respectively

·

Total operating expenses decreased 1% to £2,817m driven by savings realised from strategic cost programmes, partially offset by increased structural reform programme implementation costs

·

RoTE was 10.5% (Q315 YTD: 11.5%), within which Consumer, Cards and Payments RoTE was 21.3% (Q315 YTD: 19.9%) and CIB RoTE was 8.7% (Q315 YTD: 10.3%)

·

Profit before tax decreased 2% to £3,374m reflecting strong growth in Consumer, Cards and Payments, encouraging CIB results, and the benefit from the appreciation of average USD and EUR against GBP more than offset by an increase in impairment charges

·

Total income increased 6% to £10,939m, as Consumer Cards and Payments income increased 21% to £2,937m and CIB income increased 2% to £8,002m

-

Markets income increased 4% to £4,103m, within which Credit income increased 47% to £924m driven by a strong performance in the fixed income credit flow businesses, Equities income decreased 13% to £1,380m following simplification of the business model, and Macro income increased 4% to £1,799m driven by continued momentum in Q316 and reflecting increased activity post the EU referendum

-

Banking income decreased 1% to £3,895m, within which Banking fee income increased 7% to £1,747m, driven by higher debt underwriting and financial advisory fees, Corporate lending income decreased 15% to £892m, due to reduced income from hedges, and Transactional banking income increased 1% to £1,256m driven by increased income from higher deposit balances and an increase in payment volumes

-

Consumer, Cards and Payments income increased 21% to £2,937m driven by continued growth in Barclaycard US, including the benefit of portfolio acquisitions, Barclaycard Germany, Barclaycard Business Solutions and the Wealth International business

-

Net interest income increased 8% to £3,466m including income from treasury operations in Q316 and NIM1 increased to 4.89% (Q315 YTD: 4.56%) driven by growth in interest earning lending in Barclaycard US

·

Credit impairment charges increased 50% to £929m

-

CIB impairment increased 47% to £170m primarily from impairment of a number of single name exposures in Q116, largely in respect of counterparties in the oil and gas sector

-

Consumer, Cards and Payments impairment increased 51% to £759m due to growth in receivables and a one-off £120m charge in Q316 following the management review of the cards portfolio impairment modelling. Excluding this charge, impairment trends in US cards increased modestly year-on-year, with the 30 and 90 day arrears rates of 2.4% (Q315 YTD: 2.1%) and 1.1% (Q315 YTD: 1.0%) respectively

·

Total operating expenses increased 6% to £6,663m

-

CIB operating expenses increased 7% to £5,337m, including higher restructuring costs, £150m of which related to reducing the real estate footprint in Q316, and higher structural reform programme implementation costs, largely relating to the incorporation of the US Intermediate Holding Company (IHC) on 1 July 2016. These increases were partially offset by lower litigation and conduct charges

-

Consumer, Cards and Payments operating expenses increased 4% to £1,326m driven by continued business growth

1

Excludes Investment Banking related balances.

·

Loss before tax was £15m (Q315 YTD: £203m) reflecting increased net income from treasury operations and reduced structural reform implementation costs in operating expenses

·

The Non-Core rundown remains on track, with RWAs decreasing £10bn to £44bn in the nine months to September 2016 despite the impact of the appreciation of USD and EUR against GBP, driven by a £5bn reduction in Derivatives and a £3bn reduction in Securities and loans including the completion of the sale of the Portuguese retail and insurance businesses and Italian banking network

·

Good progress has been made on business disposals, with the following completions in Q316:

-

Sale of Barclays Risk Analytics and Index Solutions, resulting in a pre-tax gain of £535m in other net income

-

Sale of the Italian retail banking network, resulting in a decrease in Non-Core RWAs of £0.6bn

·

Underlying loss before tax increased to £1,998m (Q315 YTD: £1,015m)

·

Total income net of insurance claims reduced £1,425m to a net expense of £745m, including fair value losses on the ESHLA portfolio of £436m (Q315 YTD: £203m)

-

Businesses income reduced £352m to £558m primarily due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas, the European retail and UK Secured Lending businesses

-

Securities and loans income reduced £644m to a net expense of £799m primarily driven by the fair value losses on the ESHLA portfolio, the impact of restructuring the ESHLA Lender Option Borrower Option loan terms in Q216, the non-recurrence of a £91m provision release relating to a litigation matter in Q115, and the exit of historical investment banking businesses

-

Derivatives income reduced £429m to a net expense of £504m primarily reflecting the costs of running down the portfolio

·

Credit impairment charges improved 26% to £75m driven by lower impairment charges in Europe

·

Total operating expenses improved 12% to £1,363m reflecting reduced costs following the exit of businesses, partially offset by higher restructuring costs

·

The intention remains to close Non-Core in 2017 with c.£20bn RWAs, subject to prevailing FX rates

·

The fully loaded CRD IV CET1 ratio increased to 11.6% (December 2015: 11.4%) reflecting an increase in CET1 capital of £2.4bn to £43.2bn, whilst RWAs increased by £15bn to £373bn

-

The increase in CET1 capital was largely driven by strong profits of £1.8bn generated in the period, after absorbing the impact of notable items. Other favourable movements included the currency translation reserve as a result of the appreciation of all major currencies against GBP

-

This was partially offset by the UKRF defined benefit pension scheme moving to a £1.1bn deficit from a £0.8bn surplus at December 2015, leading to a 30bps adverse CET1 ratio movement. This is a result of AA corporate bond spreads tightening and gilt yields falling, causing the discount rate for the liability values to fall 151bps to 2.31%

-

The increase in RWAs was principally due to the appreciation of USD, EUR and ZAR against GBP, which more than offset RWA reductions in Non-Core

·

The leverage ratio decreased to 4.2% (December 2015: 4.5%) driven by a 15% increase in the leverage exposure to £1,185bn primarily within loans and advances and other assets, as well as the impact of the appreciation of USD and EUR against GBP. Fully loaded Tier 1 capital increased £3.8bn to £49.9bn, including an Additional Tier 1 (AT1) issuance of $1.5bn in Q316

·

Tangible net asset value per share increased to 287p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements

·

The Group continued to maintain surpluses to its internal and regulatory requirements in the nine months to September 2016 with a liquidity pool of £157bn (December 2015: £145bn). The increase was driven by the depreciation of GBP against other currencies and higher short term funding to provide additional liquidity. The Liquidity Coverage Ratio (LCR) was 125% (December 2015: 133%), equivalent to a surplus of £31bn (December 2015: £37bn)

·

Wholesale funding outstanding excluding repurchase agreements was £159bn as at September 2016 (December 2015: £142bn). The increase was driven by the depreciation of GBP against other currencies, holding company issuance and higher short term funding to provide additional liquidity. The Group issued £10.9bn equivalent of capital and senior unsecured debt from the holding company in the nine months to September 2016, of which £7.4bn equivalent and £0.8bn equivalent in public and private senior unsecured debt respectively, and £2.7bn of capital instruments. In the same period £7.4bn of Barclays Bank PLC capital and senior unsecured debt was bought back or called

·

Additional UK customer redress provisions of £1,000m (Q315 YTD £1,322m) relating to Payment Protection Insurance (PPI) were recognised in the nine months to September 2016. £400m was recognised in Q216 reflecting an updated estimate of costs, primarily relating to ongoing remediation programmes, with £600m recognised in Q316 to reflect the current estimate of the impact of the revised complaints deadline proposed in Financial Conduct Authority (FCA) consultation paper 16/20 issued on 2 August 2016. We will continue to review the adequacy of the provision levels in respect of the FCA's proposals which remain subject to consultation. The remaining PPI provision as at September 2016 was £2.3bn (December 2015: £2.1bn)

·

In Q216, Barclays redeemed its $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares. In Q316, Barclays redeemed its $750m 6.625% Series 2 Non-Cumulative Callable Dollar Preference Shares. These redemptions resulted in a 10bps detriment to the CET1 ratio, but will result in an ongoing reduction in preference share dividends payable of $139m per annum

·

The acquisition of Visa Europe Limited by Visa Inc. completed on 21 June 2016 resulted in the recognition of a pre-tax gain on disposal of £615m in income in Q216

·

On 5 May 2016, Barclays executed the first tranche of the sell down of the Group's interest in BAGL with the sale of 12.2% of BAGL's issued share capital. Following completion of this first tranche, Barclays' holding represents 50.1% of BAGL's issued share capital. Barclays continues to explore opportunities to reduce its shareholding to a level that would permit regulatory deconsolidation. Barclays also continues to work closely with BAGL management on arrangements for operational separation of the two businesses, including the terms of transitional services arrangements and related separation payments

·

The Barclays US IHC was incorporated on 1 July 2016. The associated quarterly report to the Federal Reserve (FR Y-9C) will be released on 9 November 2016

Barclays UK

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Net interest income

4,546

4,464

2

Net fee, commission and other income

1,143

1,045

9

Total income

5,689

5,509

3

Credit impairment charges and other provisions

(716)

(487)

(47)

Net operating income

4,973

5,022

(1)

Operating expenses

(2,803)

(2,544)

(10)

Litigation and conduct

(1,014)

(1,045)

3

Total operating expenses

(3,817)

(3,589)

(6)

Other net expenses

(1)

(1)

-

Profit before tax

1,155

1,432

(19)

Attributable profit

445

1,031

(57)

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to customers at amortised cost

166.6

166.0

166.1

Total assets

209.1

204.6

202.5

Customer deposits

185.5

181.7

176.8

Risk weighted assets

67.4

67.1

69.5

Nine months ended

Nine months ended

Performance measures

30.09.16

30.09.15

Return on average tangible equity

6.9%

14.8%

Average allocated tangible equity (£bn)

9.0

9.4

Cost: income ratio

67%

65%

Loan loss rate (bps)

56

38

Loan: deposit ratio

90%

96%

Net interest margin

3.63%

3.56%

Notable items

£m

£m

Gain on disposal of Barclays' share of Visa Europe Limited

151

-

Provisions for UK customer redress

(1,000)

(1,040)

Gain on valuation of a component of the defined retirement benefit liability

-

296

Total notable items

(849)

(744)

Analysis of Barclays UK

Nine months ended

Nine months ended

30.09.16

30.09.15

Analysis of total income

£m

£m

% Change

Personal Banking

2,957

2,770

7

Barclaycard Consumer UK

1,515

1,560

(3)

Wealth, Entrepreneurs & Business Banking

1,217

1,179

3

Total income

5,689

5,509

3

Analysis of credit impairment charges and other provisions

Personal Banking

(133)

(155)

14

Barclaycard Consumer UK

(565)

(312)

(81)

Wealth, Entrepreneurs & Business Banking

(18)

(20)

10

Total credit impairment charges and other provisions

(716)

(487)

(47)

As at

As at

As at

30.09.16

30.06.16

31.12.15

Analysis of loans and advances to customers at amortised cost

£bn

£bn

£bn

Personal Banking

135.3

134.7

134.0

Barclaycard Consumer UK

16.2

16.2

16.2

Wealth, Entrepreneurs & Business Banking

15.1

15.1

15.9

Total loans and advances to customers at amortised cost

166.6

166.0

166.1

Analysis of customer deposits

Personal Banking

137.2

134.8

131.0

Barclaycard Consumer UK

-

-

-

Wealth, Entrepreneurs & Business Banking

48.3

46.9

45.8

Total customer deposits

185.5

181.7

176.8

Barclays International

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Net interest income

3,466

3,204

8

Net trading income

3,449

3,189

8

Net fee, commission and other income

4,488

4,386

2

Total income

11,403

10,779

6

Credit impairment charges and other provisions

(929)

(619)

(50)

Net operating income

10,474

10,160

3

Operating expenses

(6,632)

(6,022)

(10)

Litigation and conduct

(31)

(1,159)

97

Total operating expenses

(6,663)

(7,181)

7

Other net income

27

37

(27)

Profit before tax

3,838

3,016

27

Attributable profit

2,369

1,782

33

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost1

233.7

230.6

184.1

Trading portfolio assets

73.8

68.1

61.9

Derivative financial instrument assets

155.6

181.4

111.5

Derivative financial instrument liabilities

160.5

187.5

119.0

Reverse repurchase agreements and other similar secured lending

17.3

19.7

24.7

Financial assets designated at fair value

72.0

68.3

46.8

Total assets

681.9

679.9

532.2

Customer deposits2

224.1

226.5

185.6

Risk weighted assets

214.6

209.3

194.8

Nine months ended

Nine months ended

Performance measures

30.09.16

30.09.15

Return on average tangible equity

12.9%

9.7%

Average allocated tangible equity (£bn)

25.2

24.9

Cost: income ratio

58%

67%

Loan loss rate (bps)

52

37

Loan: deposit ratio

92%

92%

Net interest margin3

4.89%

4.56%

Notable items

£m

£m

Gain on disposal of Barclays' share of Visa Europe Limited

464

-

Gains on US Lehman acquisition assets

-

496

Provisions for UK customer redress

-

(218)

Provisions for ongoing investigations and litigation including Foreign Exchange

-

(839)

Gain on valuation of a component of the defined retirement benefit liability

-

133

Total notable items

464

(428)

1

As at 30 September 2016 loans and advances included £206.0bn (June 2016: £204.4bn) of loans and advances to customers (including settlement balances of £37.0bn (June 2016: £39.9bn) and cash collateral of £31.1bn (June 2016: £29.8bn)), and £27.8bn (June 2016: £26.2bn) of loans and advances to banks (including settlement balances of £5.7bn (June 2016: £6.2bn) and cash collateral of £7.3bn (June 2016: £5.3bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £36.8bn (June 2016: £35.4bn).

2

As at 30 September 2016 customer deposits included settlement balances of £34.8bn (June 2016: £38.9bn) and cash collateral of £19.5bn (June 2016: £18.7bn).

3

Excludes Investment Banking related balances.

Analysis of Barclays International

Corporate and Investment Bank

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Analysis of total income

Credit

924

629

47

Equities

1,380

1,593

(13)

Macro

1,799

1,726

4

Markets

4,103

3,948

4

Banking fees

1,747

1,629

7

Corporate lending

892

1,049

(15)

Transactional banking

1,256

1,248

1

Banking

3,895

3,926

(1)

Other

4

479

(99)

Total income

8,002

8,353

(4)

Credit impairment charges and other provisions

(170)

(116)

(47)

Total operating expenses

(5,337)

(5,967)

11

Profit before tax

2,495

2,270

10

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Risk weighted assets

182.5

178.4

167.3

Nine months ended

Nine months ended

Performance measures

30.09.16

30.09.15

Return on average tangible equity

8.7%

8.0%

Average allocated tangible equity (£bn)

21.6

21.9

Consumer, Cards and Payments

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Total income

3,401

2,426

40

Credit impairment charges and other provisions

(759)

(503)

(51)

Total operating expenses

(1,326)

(1,214)

(9)

Profit before tax

1,343

746

80

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost

36.8

35.4

32.1

Customer deposits

48.3

46.9

41.8

Risk weighted assets

32.1

30.9

27.5

Performance measures

Return on average tangible equity

38.3%

21.8%

Average allocated tangible equity (£bn)

3.6

3.0

Head Office

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Total income

112

624

(82)

Credit impairment charges and other provisions

-

-

Net operating income

112

624

(82)

Operating expenses

(150)

(207)

28

Litigation and conduct

(26)

(50)

48

Total operating expenses

(176)

(257)

32

Other net expenses

(31)

(91)

66

(Loss)/profit before tax

(95)

276

Attributable (loss)/profit

(113)

148

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Total assets1

73.3

87.7

59.4

Risk weighted assets1

47.5

43.2

39.7

Nine months ended

Nine months ended

30.09.16

30.09.15

Performance measures

£m

£m

Average allocated tangible equity (£bn)

6.3

2.0

Notable items

£m

£m

Own credit

(80)

605

Provisions for ongoing investigations and litigation including Foreign Exchange

-

(29)

Losses on sale relating to the Spanish, Portuguese and Italian businesses

-

(97)

Total notable items

(80)

479

1

Includes Africa Banking assets held for sale of £61.1bn (June 2016: £56.0bn) and risk weighted assets of £39.9bn (June 2016: £36.1bn).

Barclays Non-Core

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Net interest income

214

444

(52)

Net trading income

(1,241)

(308)

Net fee, commission and other income

477

799

(40)

Total income

(550)

935

Net claims and benefits incurred under insurance contracts

(195)

(255)

24

Total income net of insurance claims

(745)

680

Credit impairment charges and other provisions

(75)

(102)

26

Net operating (expenses)/income

(820)

578

Operating expenses

(1,168)

(1,403)

17

Litigation and conduct

(195)

(411)

53

Total operating expenses

(1,363)

(1,814)

25

Other net income/(expenses)

185

(267)

Loss before tax

(1,998)

(1,503)

(33)

Attributable loss

(1,418)

(1,210)

(17)

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Loans and advances to banks and customers at amortised cost1

58.7

68.5

51.8

Derivative financial instrument assets

253.2

262.8

213.7

Derivative financial instrument liabilities

243.0

253.4

202.1

Reverse repurchase agreements and other similar secured lending

0.1

0.1

3.1

Financial assets designate at fair value

15.5

15.4

21.4

Total assets

359.8

379.1

325.8

Customer deposits2

16.0

17.4

20.9

Risk weighted assets

43.9

46.7

54.3

Nine months ended

Nine months ended

Performance measures

30.09.16

30.09.15

Average allocated tangible equity (£bn)

8.2

11.3

Period end allocated tangible equity (£bn)

7.2

10.2

Loan loss rate (bps)

16

21

Notable items

£m

£m

Provisions for UK customer redress

-

(65)

Provisions for ongoing investigations and litigation including Foreign Exchange

-

(201)

Losses on sale relating to the Spanish and Portuguese businesses

-

(222)

Total notable items

-

(488)

Analysis of income net of insurance claims

£m

£m

% Change

Businesses

558

910

(39)

Securities and loans

(799)

(155)

Derivatives

(504)

(75)

Total income net of insurance claims

(745)

680

1

As at 30 September 2016 loans and advances included £43.5bn (June 2016: £52.4bn) of loans and advances to customers (including settlement balances of £0.3bn (June 2016: £0.1bn) and cash collateral of £20.9bn (June 2016: £28.8bn) and loans and advances to banks of £15.2bn (June 2016: £16.1bn) (including settlement balances of £0.1bn (June 2016: £0.1bn) and cash collateral of £14.2bn (June 2016: £15.0bn)).

2

As at 30 September 2016 customer deposits included settlement balances of £0.2bn (June 2016: £0.1bn) and cash collateral of £14.8bn (June 2016: £14.5bn).

Africa Banking

Nine months ended

Nine months ended

30.09.16

30.09.15

Income statement information

£m

£m

% Change

Net interest income

1,543

1,482

4

Net fee, commission and other income

1,273

1,239

3

Total income

2,816

2,721

3

Net claims and benefits incurred under insurance contracts

(137)

(121)

(13)

Total income net of insurance claims

2,679

2,600

3

Credit impairment charges and other provisions

(340)

(260)

(31)

Net operating income

2,339

2,340

-

Total operating expenses

(1,618)

(1,590)

(2)

Other net income

4

4

-

Profit before tax

725

754

(4)

Profit after tax

520

525

(1)

Attributable profit

240

277

(13)

As at

As at

As at

30.09.16

30.06.16

31.12.15

Balance sheet information

£bn

£bn

£bn

Total assets1

61.1

56.0

47.9

Risk weighted assets1

39.9

36.1

31.7

1

Africa Banking assets held for sale and RWAs are reported in Head Office within Core.

Barclays Group

Q316

Q216

Q116

Q415

Q315

Q215

Q115

Q414

Income statement information

£m

£m

£m

£m

£m

£m

£m

£m

Total income net of insurance claims

5,446

5,972

5,041

4,448

5,481

6,461

5,650

4,097

Credit impairment charges and other provisions

(789)

(488)

(443)

(554)

(429)

(393)

(386)

(495)

Net operating income

4,657

5,484

4,598

3,894

5,052

6,068

5,264

3,602

Operating expenses

(3,581)

(3,425)

(3,747)

(3,547)

(3,552)

(3,557)

(3,067)

(3,696)

UK bank levy

-

-

-

(426)

-

-

-

(418)

Litigation and conduct

(741)

(447)

(78)

(1,722)

(699)

(927)

(1,039)

(1,089)

Total operating expenses

(4,322)

(3,872)

(3,825)

(5,695)

(4,251)

(4,484)

(4,106)

(5,203)

Other net income/(expenses)

502

(342)

20

(274)

(182)

(39)

(101)

(82)

Profit/(loss) before tax

837

1,270

793

(2,075)

619

1,545

1,057

(1,683)

Tax (charge)/credit

(328)

(467)

(248)

(164)

(133)

(324)

(528)

134

Profit/(loss) after tax in respect of continuing operations

509

803

545

(2,239)

486

1,221

529

(1,549)

Profit after tax in respect of discontinued operation

209

145

166

101

167

162

196

168

Attributable to:

Ordinary equity holders of the parent

414

677

433

(2,422)

417

1,146

465

(1,679)

Other equity holders

110

104

104

107

79

79

80

80

Non-controlling interests

194

167

174

177

157

158

180

218

Balance sheet information

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

Total assets

1,324.0

1,351.3

1,248.9

1,120.0

1,236.5

1,196.7

1,416.4

1,357.9

Risk weighted assets

373.4

366.3

363.0

358.4

381.9

376.7

395.9

401.9

Leverage exposure

1,185.1

1,155.4

1,082.0

1,027.8

1,140.7

1,139.3

1,254.7

1,233.4

Performance measures

Return on average tangible shareholders' equity

3.6%

5.8%

3.8%

(20.1%)

3.6%

9.8%

4.0%

(13.8%)

Average tangible shareholders' equity (£bn)

49.4

48.3

48.3

47.8

47.6

47.2

48.1

48.3

Cost: income ratio

79%

65%

76%

128%

78%

69%

73%

127%

Loan loss rate (bps)

66

41

40

53

37

35

32

45

Basic earnings/(loss) per share

2.6p

4.2p

2.7p

(14.4p)

2.6p

7.0p

2.9p

(10.2p)

Notable items

£m

£m

£m

£m

£m

£m

£m

£m

Own credit

(264)

292

(109)

(175)

195

282

128

(62)

Gain on disposal of Barclays' share of Visa Europe Limited

-

615

-

-

-

-

-

-

Gains on US Lehman acquisition assets

-

-

-

-

-

496

-

-

Revision of ESHLA valuation methodology

-

-

-

-

-

-

-

(935)

Provisions for UK customer redress

(600)

(400)

-

(1,450)

(290)

(850)

(182)

(200)

Provisions for ongoing investigations and litigation including Foreign Exchange

-

-

-

(167)

(270)

-

(800)

(750)

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)

-

-

-

-

Losses on sale relating to the Spanish, Portuguese and Italian businesses

-

-

-

(261)

(201)

-

(118)

(82)

Total notable items

(864)

507

(109)

(2,149)

(566)

(72)

(543)

(2,029)

Barclays Core

Q316

Q216

Q116

Q415

Q315

Q215

Q115

Q414

Income statement information

£m

£m

£m

£m

£m

£m

£m

£m

Total income net of insurance claims

5,605

6,316

5,283

4,516

5,265

6,219

5,428

4,791

Credit impairment charges and other provisions

(769)

(462)

(414)

(522)

(388)

(373)

(345)

(481)

Net operating income

4,836

5,854

4,869

3,994

4,877

5,846

5,083

4,310

Operating expenses

(3,270)

(3,057)

(3,258)

(2,992)

(3,094)

(3,061)

(2,618)

(3,076)

UK bank levy

-

-

-

(338)

-

-

-

(316)

Litigation and conduct

(639)

(420)

(12)

(1,634)

(419)

(819)

(1,015)

(1,004)

Total operating expenses

(3,909)

(3,477)

(3,270)

(4,964)

(3,513)

(3,880)

(3,633)

(4,396)

Other net income/(expenses)

4

(18)

9

(5)

13

14

(83)

6

Profit/(loss) before tax

931

2,359

1,608

(975)

1,377

1,980

1,367

(80)

Tax charge

(522)

(696)