barc201405066k.htm
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
May 06, 2014
 
Barclays PLC and

Barclays Bank PLC
(Names of Registrants)
 
 
 1 Churchill Place

London E14 5HP
England
(Address of Principal Executive Offices)

 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

 
Form 20-F x           Form 40-F

 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 
Yes           No x

 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):

 
This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays
Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is
owned by Barclays PLC.

 
This Report comprises:

 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.


 
 
EXHIBIT INDEX
Interim Management Statement - dated 06 May 2014

 




SIGNATURES

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
BARCLAYS PLC
(Registrant)

 
Date: May 06, 2014
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Deputy Secretary
 
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: May 06, 2014
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Joint Secretary
 
 
 
 
Barclays PLC
Interim Management Statement
 
 
31 March 2014
 
 
 
 
 

 
Table of Contents
 
Interim Management Statement
Page
Performance Highlights
4
Group Performance Review
8
Results by Business
  
·      UK Retail and Business Banking
11
·      Europe Retail and Business Banking
12
·      Africa Retail and Business Banking
13
·      Barclaycard
15
·      Investment Bank
16
·      Corporate Banking
18
·      Wealth and Investment Management
19
·      Head Office and Other Operations
20
Appendix I - Quarterly Results Summary
21
Appendix II - Performance Management
  
·      Returns and Equity by Business
25
·      Transform Update
27
·      Exit Quadrant Business Units
28
·      Margins and Balances
29
Appendix III - Consolidated Summary Income Statement and Balance Sheet
31
Appendix IV - Net Tangible Asset Value per Share
33
Appendix V - Capital
34
Appendix VI - Leverage
37
Appendix VII - Credit Risk
38
Appendix VIII - Other Information
39
 
 
 
 
 
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839
 
 
Notes
 
 
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analyses compares the three months to 31 March 2014 to the corresponding three months of 2013 and balance sheet analysis as at 31 March 2014 with comparatives relating to 31 December 2013. Balance sheet comparative figures have been revised to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation. The abbreviations £m and £bn represent millions and thousands of millions of Pounds Sterling respectively; and the abbreviations $m and $bn represent millions and thousands of millions of US Dollars respectively.
 
Adjusted profit before tax and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant and not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; disposal of the investment in BlackRock, Inc; the provision for Payment Protection Insurance redress payments and claims management costs (PPI redress); the provision for interest rate hedging products redress and claims management costs (interest rate hedging products redress); and goodwill impairment.
 
All capital measures, risk weighted assets and leverage disclosures are on a CRD IV basis unless otherwise stated.
 
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the Results glossary that can be accessed at www.Barclays.com/results.
 
In accordance with Barclays' policy to provide meaningful disclosures that help investors and other stakeholders understand the financial position, performance and changes in the financial position of the Group, and having regard to the British Bankers' Association Disclosure Code and the Enhanced Disclosure Task Force recommendations, the information provided in this report goes beyond minimum requirements. Barclays continues to develop its financial reporting considering best practice and welcomes feedback from investors, regulators and other stakeholders on the disclosures that they would find most useful. The One Africa disclosure provided in the Results Announcement for the year ended 31 December 2013 will be provided on a half-yearly basis.
 
The information in this announcement, which was approved by the Board of Directors on 5 May 2014 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the SEC and which contained an unqualified audit report under Section 495 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
 
Forward-looking statements
 
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "may", "will", "seek", "continue", "aim", "anticipate", "target", "projected", "expect", "estimate", "intend", "plan", "goal", "believe", "achieve" or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges and provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of growth in the banking and financial markets, projected costs, original and revised commitments and targets in connection with the Transform Programme, deleveraging actions, estimates of capital expenditures and plans and objectives for future operations and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards (IFRS), evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, United States, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of the Group; the potential for one or more countries exiting the Eurozone; the implementation of the Transform Programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Additional risks and factors are identified in our filings with the SEC including our Annual Report on Form 20-F for the fiscal year ended 31 December 2013, which is available on the SEC's website at http://www.sec.gov.
 
Any forward-looking statements made herein speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information or future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange plc (LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Barclays' expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has published or may publish via the Regulatory News Service of the LSE and/or has filed or may file with the SEC.
 
 
 
Performance Highlights
 
"A continued strong momentum across our retail, cards and corporate banking franchises, all of which generated higher returns year on year, offset by a significant decline in FICC income within the Investment Bank, resulting in Group adjusted profit before tax decreasing 5%.
 
UK Retail, Barclaycard and Corporate together drove approximately half of the Group's income this quarter and we remain well positioned to benefit from further improvements in the economic environment. Investment Bank income reduced 28% primarily driven by a significant decline in FICC income of 41% on Q113 driven by lower client volumes, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relative strong performance in Q113. Performance in Equities and Investment Banking income was broadly stable year on year.
 
I am pleased to report the lowest operating expenses, excluding cost to achieve Transform (CTA) spend, since 2009. This reflects the results of our cost programme. The outcome is higher adjusted profit before tax across most businesses, with the principal exception being the Investment Bank where income weakness offset cost reduction. We will continue to focus on operating expenses as a central element of Transform.
 
Building on the strong progress made last quarter on leverage reduction, we remain focused on balance sheet and capital. This was demonstrated by the fully loaded CRD IV CET1 ratio increasing 37bps to 9.6% and the estimated PRA leverage ratio increasing 16bps to 3.1% this quarter, exceeding the PRA's expected leverage ratio of 3%. Net tangible asset value per share increased 1p to 284p.
 
As previously announced, I will update the market on Barclays strategy to deliver improved and sustainable returns and growth for our shareholders on 8 May 2014. This plan will address issues underlying the performance challenges we have recently experienced, including positioning the Investment Bank for the new operating and regulatory environment."
 
 
Antony Jenkins, Group Chief Executive


Performance Highlights
 
 
Income Statement
 
 
·     Adjusted profit before tax was down 5% to £1,693m driven by a reduction in Investment Bank income, in particular FICC, and currency movements partially offset by a reduction in operating expenses of 16% to £4,435m
 
·     Statutory profit before tax improved 18% to £1,812m, including an own credit gain of £119m (Q113: loss of £251m)
 
Income Performance
 
·     Adjusted income decreased 14% to £6,650m, primarily reflecting a reduction in the Investment Bank partially offset by growth in UK RBB and Barclaycard. Customer net interest income for RBB, Barclaycard, Corporate Banking
       and Wealth and Investment Management increased 4% to £2,613m reflecting business growth and stable margins
 
·     Investment Bank income was down 28% to £2,490m driven primarily by a 41% decrease in FICC income due to challenging trading conditions resulting in subdued client activity across Rates and Credit, changes in business mix in
       light of the ongoing strategic review of the Investment Bank, and a relatively strong performance in Q113
 
 
Credit Impairment
 
·     Credit impairment charges improved 22% to £548m, principally reflecting lower charges in Africa RBB and Corporate Banking. As a result the loan loss rate improved to 45bps (Q113: 56bps)
 
Cost Performance
 
·     Operating expenses decreased £861m to £4,435m reflecting a £274m reduction in CTA charges and savings attributable to prior year Transform initiatives, in particular the restructuring programmes, and currency movements
 
Balance Sheet, Leverage and Capital Management
 
·     Fully loaded CRD IV Common Equity Tier 1 (CET1) ratio increased 37bps to 9.6% and the estimated PRA leverage ratio increased 16bps to 3.1%, largely reflecting the capital generated from earnings; and for the leverage ratio, a
       £39bn reduction in PRA leverage exposure to £1,326bn. The estimated fully loaded CRD IV leverage ratio increased to 3.3% (2013: 3.1%)
 
·     Total equity excluding non-controlling interest increased £1bn to £56.4bn
 
·     Net tangible asset value per share improved 1p to 284p and net asset value per share was stable at 331p
 
Returns                          
 
·     Adjusted return on average shareholders' equity decreased to 6.4% (Q113: 7.6%) principally reflecting the equity raised from the rights issue in Q413 and a decrease in profit before tax. Adjusted return on average tangible
       shareholders' equity decreased to 7.5% (2013: 9.0%). Statutory return on average shareholders' equity improved to 7.1% (Q113: 6.5%)

 
 
Performance Highlights
 
Barclays Unaudited Results  
Adjusted
  
Statutory
 
 
for the Three Months Ended
31.03.14
31.03.13
    
31.03.14
31.03.13
  
 
£m
£m
% Change
  
£m
£m
% Change
Total income net of insurance claims
6,650 
7,734 
(14)
  
6,769 
7,483 
(10)
Credit impairment charges and other provisions
(548)
(706)
22 
  
(548)
(706)
22 
Net operating income  
6,102 
7,028 
(13)
  
6,221 
6,777 
(8)
Operating expenses (excluding costs to achieve Transform)
(4,195)
(4,782)
12 
  
(4,195)
(4,782)
12 
Costs to achieve Transform
(240)
(514)
53 
  
(240)
(514)
53 
Operating expenses
(4,435)
(5,296)
16 
  
(4,435)
(5,296)
16 
Other net income
26 
54 
(52)
  
26 
54 
(52)
Profit before tax  
1,693 
1,786 
(5)
  
1,812 
1,535 
18 
Tax charge
(561)
(571)
2 
  
(597)
(491)
(22)
Profit after tax   
1,132 
1,215 
(7)
  
1,215 
1,044 
16 
Non-controlling interests
(201)
(205)
2 
  
(201)
(205)
2 
Other equity interests
(49)
- 
-
  
(49)
- 
-
Attributable profit
882 
1,010 
(13)
  
965 
839 
15 
               
Performance Measures
              
Return on average tangible shareholders' equity
7.5%
9.0%
    
8.3%
7.6%
  
Return on average shareholders' equity
6.4%
7.6%
    
7.1%
6.5%
  
Return on average risk weighted assets1 
1.0%
1.0%
    
1.1%
0.9%
  
Cost: income ratio
67%
68%
    
66%
71%
  
Loan loss rate (bps)
45 
56 
    
45 
56 
  
               
Basic earnings per share  
5.4p
7.5p
    
5.9p
6.3p
  
Dividend per share  
1.0p
1.0p
    
1.0p
1.0p
  
   
              
Balance Sheet and Leverage
        
31.03.14
31.12.13
  
Net tangible asset value per share2 
        
284p
283p
  
Net asset value per share2 
        
331p
331p
  
Estimated PRA leverage exposure
        
£1,326bn
£1,365bn
  
               
Capital Management
              
Fully loaded CRD IV
              
Common equity tier 1 ratio
        
9.6%
9.3%
  
Common equity tier 1 capital
        
£41.4bn
£40.4bn
  
Risk weighted assets
        
£429bn
£436bn
  
Estimated leverage ratio
        
3.3%
3.1%
  
Estimated PRA leverage ratio  
        
3.1%
3.0%
  
               
Funding and Liquidity
              
Group liquidity pool  
        
£134bn
£127bn
  
Loan: deposit ratio  
        
101%
101%
  
Estimated liquidity coverage ratio
        
109%
102%
  
   
              
Adjusted Profit Reconciliation
        
31.03.14
31.03.13
  
Adjusted profit before tax
        
1,693 
1,786 
  
Own credit
        
119 
(251)
  
Statutory profit before tax
        
1,812 
1,535 
  
 
 
1       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
2       Net tangible asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, less goodwill and intangible assets, by the number of issued ordinary shares. Net asset
          value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, by the number of issued ordinary shares.



Performance Highlights
 
 
Adjusted
  
Statutory
 
 
 
31.03.14
31.03.13
    
31.03.14
31.03.13
  
Income by Business
£m
£m
% Change
  
£m
£m
% Change
UK RBB
1,145 
1,067 
7 
  
1,145 
1,067 
7 
Europe RBB
146 
176 
(17)
  
146 
176 
(17)
Africa RBB
567 
668 
(15)
  
567 
668 
(15)
Barclaycard
1,184 
1,153 
3 
  
1,184 
1,153 
3 
Investment Bank
2,490 
3,463 
(28)
  
2,490 
3,463 
(28)
Corporate Banking
722 
772 
(6)
  
722 
772 
(6)
Wealth and Investment Management
451 
469 
(4)
  
451 
469 
(4)
Head Office and Other Operations
(55)
(34)
(62)
  
64 
(285)
  
Total income
6,650 
7,734 
(14)
  
6,769 
7,483 
(10)
               
 
 
 
Adjusted
  
Statutory
 
 
 
31.03.14
31.03.13
    
31.03.14
31.03.13
  
Profit/(Loss) Before Tax by Business
£m
£m
% Change
  
£m
£m
% Change
UK RBB
360 
299 
20 
  
360 
299 
20 
Europe RBB
(88)
(462)
81 
  
(88)
(462)
81 
Africa RBB
101 
81 
25 
  
101 
81 
25 
Barclaycard
423 
363 
17 
  
423 
363 
17 
Investment Bank
668 
1,315 
(49)
  
668 
1,315 
(49)
Corporate Banking
260 
183 
42 
  
260 
183 
42 
Wealth and Investment Management
51 
60 
(15)
  
51 
60 
(15)
Head Office and Other Operations
(82)
(53)
(55)
  
37 
(304)
  
Total profit before tax
1,693 
1,786 
(5)
  
1,812 
1,535 
18 
               

 
Group Performance Review
 
Income Statement
 
·      Adjusted profit before tax was down 5% to £1,693m driven by a reduction in Investment Bank income, in particular FICC, partially offset by a reduction in operating expenses of 16% to £4,435m, including a 53% reduction to
        £240m in CTA
 
·      Statutory profit before tax improved 18% to £1,812m, including an own credit gain of £119m (2013: loss of £251m)
 
Income Performance
 
·      Adjusted income decreased 14% to £6,650m, reflecting a reduction in the Investment Bank and currency movements, partially offset by growth in UK RBB and Barclaycard
 
·      Investment Bank income was down 28% driven primarily by a 41% decrease in FICC income due to subdued client activity, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relatively
        strong first quarter comparison in 2013. Macro products and Credit Products income decreased 48% and 33% to £584m and £646m respectively. Q113 benefitted from increased activity across all products due to positive economic
        news, in particular the "fiscal cliff" resolution in the US
 
·      Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased 4% to £2,613m reflecting business growth and stable net interest margin
 
Credit Impairment
 
·      Credit impairment charges improved 22% to £548m, principally due to:
 
-    Lower charges across all RBB businesses, notably Africa RBB, reflecting generally improving delinquency and charge-off rates, particularly in the mortgage and business banking portfolios
 
-    Continued fall in charges in Corporate Europe, and higher net releases in Investment Banking relating to a number of exposures
 
·      This improvement, combined with an increase in loans and advances, resulted in a lower loan loss rate of 45bps (2013: 56bps) 
 
Cost Performance
 
·      Operating expenses decreased £861m to £4,435m reflecting a £274m reduction in CTA charges and savings attributable to prior year Transform initiatives, in particular redundancies and scale reduction delivered by restructuring
        programmes, and currency movements
 
·      Within operating expenses, total compensation costs decreased 14% to £2,365m. Total compensation costs in the Investment Bank decreased 20% to £1,136m reflecting savings attributable to Transform initiatives and reduction
        in current year bonus accruals in line with the reduction in profit before tax. The Investment Bank compensation to income ratio increased to 46% (2013: 41%) with the 20% reduction in compensation more than offset by the
        decrease in income
 
Taxation
 
·      The effective tax rate on adjusted profit before tax was stable at 33.1% (2013: 32.0%), which, for both periods primarily reflected profits outside of the UK taxed at higher local statutory tax rates. The effective tax rate on statutory
        profit before tax was stable at 32.9% (2013: 32.0%)
 
Returns
 
·      Adjusted return on average shareholders' equity decreased to 6.4% (2013: 7.6%) principally reflecting the equity raised from the rights issue in Q413 and a decrease in profit before tax. Adjusted return on average tangible
        shareholders' equity decreased to 7.5% (2013: 9.0%). Statutory return on average shareholders' equity improved to 7.1% (2013: 6.5%)
 
 
Group Performance Review
 
Balance Sheet and Leverage
 
Balance Sheet
 
·      Total assets remained stable at £1,362bn  
 
-    £35.2bn increase in loans and advances to customers and banks to £506.2bn driven by higher settlement balances of £32.8bn, and increases in UK mortgages and corporate lending
 
-    £21.9bn reduction in derivative financial instruments to £333.4bn due to further exposure reduction initiatives and market movements. This is consistent with the reduction in derivative liabilities
 
·      Customer accounts increased £28.2bn to £457.4bn primarily due to a £25.8bn increase in settlement balances and growth in UK deposits
 
·      Total equity was £64.9bn (2013: £63.9bn). Excluding non-controlling interests, equity increased £1.0bn to £56.4bn. This reflects a £0.7bn increase in share capital and share premium due to the issuance of shares under employee
        share schemes and increases of £0.2bn and £0.3bn in the available for sale reserves and cash flow hedge reserves. These increases were partially offset by a decrease in currency translation reserves of £0.3bn, driven by the
        strengthening of GBP against USD, EUR and ZAR
 
·      Net tangible asset value per share increased 1p to 284p and net asset value per share was stable at 331p
 
·      As at 31 March 2014, the provision for PPI redress was £689m (2013: £971m) following utilisation of £282m in the quarter. Overall complaint volumes reduced 8% in Q114 from Q413 as did referrals to the Financial Ombudsman
        Service, while 40-50% of the complaints received have no record of PPI having been sold. However, March 2014 saw a significant spike in PPI complaints received via claims management companies, with the majority of these
        complaints relating to PPI sold over 10 years ago. As a result of this inflow of complaints there remains a significant level of uncertainty regarding future complaint volumes, including assessing their legitimacy. This situation is
        being monitored closely including undertaking additional analysis and an assessment of the overall PPI provision
 
·      As at 31 March 2014, the provision for interest rate hedging product redress was £928m after Q114 utilisation of £241m primarily due to the payment of redress to customers. Redress outcomes have been communicated to nearly
        60% of customers covered by the review, of which 29% have been paid.  There has been no significant change to the estimate of future costs and the Group expects the provision to be sufficient to cover the cost of completing
        the redress.  No provision has been recognised in relation to possible incremental consequential loss claims
 
Leverage exposure
 
·      The estimated PRA leverage exposure reduced by £39bn to £1,326bn, including a £17bn reduction in potential future exposure (PFEs) on derivatives from trade compression and a £20bn reduction in securities financing
         transactions (SFTs) exposures primarily from collateral and netting optimisation
 
 
 
Capital Management
 
 
·      Fully loaded CRD IV CET1 ratio increased 37bps to 9.6% primarily due to an increase in CET1 capital
 
·      Fully loaded CRD IV CET1 capital increased £1.0bn to £41.4bn, principally due to regulatory capital generated from earnings after the impact of dividends paid and a decrease in regulatory deductions
 
·      CRD IV risk weighted assets (RWAs) decreased £6bn to £429bn, primarily driven by Investment Bank risk reductions and policy updates, offset by model changes
 
·      The estimated PRA leverage ratio increased 16bps to 3.1% primarily reflecting an increase in eligible PRA adjusted Tier 1 capital to £41.5bn (2013: £40.5bn) and a reduction in leverage exposure of £39bn. The estimated fully
         loaded CRD IV leverage ratio increased to 3.3% (2013: 3.1%)
 
 
 
Group Performance Review
 
Funding and Liquidity1
 
·      The Group liquidity pool was £134bn (2013: £127bn), of which £128bn (2013: £121bn) qualifies as high quality liquid assets counting towards Liquidity Coverage Ratio (LCR). The liquidity pool is within Barclays' established
         liquidity risk appetite framework and in excess of regulatory requirements
 
·      Cash and deposits with central banks accounted for £52bn (2013: £43bn) of the liquidity pool, of which over 95% was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss
        National Bank. High quality government bonds accounted for £60bn (2013: £62bn), of which over 85% comprised of UK, US, Japan, France, Germany, Denmark and the Netherlands government securities. Other available liquidity
        accounted for £22bn (2013: £22bn)
 
·      The Group estimated its LCR at 109% (2013: 102%) based on Basel standards published in January 2013. This is equivalent to a surplus of £11bn (2013: £2bn) above the 100% ratio. Going forward, the Group will report its LCR 
        based on the CRD IV rules, as implemented by the EBA. On this basis, the estimated LCR was 103% (2013: 96%)
 
·      The loan to deposit ratio for the Group was unchanged at 101% reflecting similar growth rates in loans and deposits
 
·      Total Group wholesale funding outstanding (excluding repurchase agreements) was £186bn (2013: £186bn), of which £91bn (2013: £82bn) matures in less than one year and £17bn (2013: £20bn) matures within one month
 
·      The Group issued £9bn of term funding, net of early redemptions, including £3bn of benchmark public issuances and £6bn of funding raised through participation in the Bank of England's Funding for Lending Scheme. Barclays
         has £19bn of term funding maturing in the remainder of 2014 and £22bn in 2015
 
 
Dividends
 
·      A first interim dividend for 2014 of 1.0p per share will be paid on 23 June 2014
 
Outlook
 
·      We  continue to be cautious about the trading environment in which we operate and as a consequence we remain focused on structurally reducing the cost base in order to improve returns
 
 
  
1        Liquidity risk is managed separately at BAGL Group due to local currency and funding requirements. Apart from the LCR and customer loan to deposit ratio, all disclosures in this section exclude BAGL.

 
Results by Business
 
UK Retail and Business Banking
Three Months Ended
Three Months Ended
  
 
31.03.14
31.03.13
  
Income Statement Information
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
1,145 
1,067 
7 
Credit impairment charges and other provisions
(80)
(89)
10 
Net operating income
1,065 
978 
9 
Operating expenses (excluding costs to achieve Transform)
(676)
(704)
4 
Costs to achieve Transform
(31)
- 
  
Operating expenses
(707)
(704)
-
Other net income
2 
25 
(92)
Profit before tax
360 
299 
20 
Attributable profit1 
263 
218 
21 
       
 
As at 31.03.14
As at 31.12.13
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
137.8 
136.5 
1 
Customer deposits
137.3 
135.5 
1 
Total assets
147.6 
152.9 
(3)
Risk weighted assets - fully loaded CRD IV
44.0 
44.1 
- 
       
Performance Measures
31.03.14
31.03.13
  
Return on average tangible equity2 
21.0%
19.2%
  
Return on average equity2 
12.4%
11.0%
  
Return on average risk weighted assets2 
2.5%
2.2%
  
Cost: income ratio
62%
66%
  
Loan loss rate (bps)
23 
27 
  
       
 
 
 
1        Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
 
Q114 compared to Q113
 
·      Income increased 7% to £1,145m driven by strong mortgage growth and improvement of 4bps in the net interest margin to 132bps
 
·      Credit impairment charges improved 10% to £80m driven by lower write offs within mortgages and current accounts and improved performance within business banking. 90 day arrears rates on personal loans improved to 1.1% 
        (2013: 1.4%) with arrears rates on mortgages flat at 0.3%
 
·      Operating expenses remained broadly flat at £707m, including costs to achieve Transform of £31m. Operational efficiency has been enhanced through process improvement, the rationalisation of operational sites and reductions
        in headcount, whilst continuing to invest in customer experience via our physical, telephony and digital channels
 
·      Profit before tax improved 20% to £360m primarily driven by income growth and lower impairment
 
 
Q114 compared to Q413
 
·      Profit before tax improved 70% to £360m primarily due to lower costs to achieve Transform of £31m (Q413: £119m), the 2013 UK bank levy charge in Q413 and lower operational costs
 
·      Loans and advances to customers increased to £137.8bn (2013: £136.5bn), including Barclays Direct assets of £4.0bn (2013: £4.4bn), due to mortgage growth driven by increased customer demand
 
·      Customer deposits increased to £137.3bn (2013: £135.5bn), including Barclays Direct deposits of £5.4bn (2013: £6.2bn), due to continued inflows to primary current accounts
 
·      Total assets decreased 3% to £147.6bn primarily reflecting a reduction in liquidity pool assets offset by retail lending growth
 
·      RWAs remained broadly flat at £44.0bn
 
Results by Business
 
Europe Retail and Business Banking
Three Months Ended
Three Months Ended
  
 
31.03.14
31.03.13
  
Income Statement Information
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
146 
176 
(17)
Credit impairment charges and other provisions
(49)
(70)
30 
Net operating income
97 
106 
(8)
Operating expenses (excluding costs to achieve Transform)
(185)
(215)
14 
Costs to achieve Transform
(3)
(356)
99 
Operating expenses
(188)
(571)
67 
Other net income
3 
3 
- 
Loss before tax
(88)
(462)
81 
Attributable loss1 
(69)
(363)
81 
       
 
As at 31.03.14
As at 31.12.13
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
36.0 
37.0 
(3)
Customer deposits
15.8 
16.3 
(3)
Total assets
44.0 
45.0 
(2)
Risk weighted assets - fully loaded CRD IV
15.8 
16.2 
(2)
       
Performance Measures
31.03.14
31.03.13
  
Return on average tangible equity2 
(14.2%)
(67.3%)
  
Return on average equity2 
(13.0%)
(61.9%)
  
Return on average risk weighted assets2 
(1.6%)
(8.5%)
  
Cost: income ratio
129%
324%
  
Loan loss rate (bps)
54 
70 
  
 
 
1        Attributable loss is calculated as loss after tax after deducting non-controlling interests and other equity interests.
2       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).

 
Q114 compared to Q113
 
·      Income declined 17% to £146m reflecting lower upfront fees and commissions due to actions to run down Exit Quadrant assets and rationalise the product offering consistent with the Transform strategy, and adverse currency
        movements
 
-    Net interest margin decreased 4bps to 77bps due to higher funding costs and a change in asset mix as Exit Quadrant assets were run down, partially offset by new customer balances
 
·      Credit impairment charges improved 30% to £49m, primarily due to better mortgage portfolio collections, mainly in Spain
 
·      Operating expenses decreased to £188m (Q113: £571m), primarily due to lower costs to achieve Transform and the resulting cost savings arising from the reduction in employees and distribution points, as part of the on-going restructuring programmes, and favourable currency movements
 
·      Loss before tax decreased to £88m (Q113: £462m), principally due to the non-recurrence of costs to achieve Transform, cost savings resulting from 2013 Transform initiatives and improved credit impairment charges
 
 
Q114 compared to Q413
 
 
·      Income reduced 5% to £146m due to adverse currency movements and increased funding costs
 
·      Loss before tax decreased to £88m (Q413: £181m) due to the non-recurrence of costs to achieve Transform, and improved credit impairment charges
 
·      Loans and advances reduced 3% to £36.0bn largely driven by asset reduction activity as part of the Transform strategy and currency movements. Customer deposits reduced by 3% to £15.8bn due to customer attrition and
        currency movements
 
·      Total assets reduced 2% to £44.0bn principally due to a reduction in loans and advances and currency movements
 
·      RWAs decreased 2% to £15.8bn driven by run down of Exit Quadrant assets and the appreciation of GBP against EUR
 
 
 
Results by Business
 
Africa Retail and Business Banking
 
    
Constant Currency1 
 
 
 
Three
Months
Ended
Three
Months
Ended
  
Three
Months
Ended
Three
Months
Ended
  
 
31.03.14
31.03.13
  
31.03.14
31.03.13
  
 
 
Income Statement Information
£m
£m
% Change
£m
£m
% Change
Adjusted and statutory basis
            
Total income net of insurance claims
567 
668 
(15)
731 
668 
9 
Credit impairment charges and other provisions
(59)
(114)
48 
(76)
(114)
33 
Net operating income
508 
554 
(8)
655 
554 
18 
Operating expenses (excluding costs to achieve Transform)
(402)
(474)
15 
(507)
(474)
(7)
Costs to achieve Transform
(9)
- 
  
(11)
- 
  
Operating expenses
(411)
(474)
13 
(518)
(474)
(9)
Other net income
4 
1 
  
5 
1 
  
Profit before tax
101 
81 
25 
142 
81 
75 
Attributable profit2 
20 
9 
  
35 
9 
  
             
 
As at
31.03.14
As at
31.12.13
  
As at
31.03.14
As at
31.12.13
  
Balance Sheet Information
£bn
£bn
  
£bn
£bn
  
Loans and advances to customers at amortised cost
23.9 
24.2 
(1)
24.2 
24.2 
- 
Customer deposits
16.8 
16.9 
(1)
17.0 
16.9 
1 
Total assets
32.5 
33.5 
(3)
32.8 
33.5 
(2)
Risk weighted assets - fully loaded CRD IV
21.9 
22.8 
(4)
22.0 
22.8 
(4)
             
Performance Measures
31.03.14
 
31.03.13
        
Return on average tangible equity3 
4.1%
2.1%
        
Return on average equity3 
2.6%
1.2%
        
Return on average risk weighted assets3 
1.2%
0.9%
        
Cost: income ratio
72%
71%
        
Loan loss rate (bps)
96 
148 
        
 
 
1       Constant currency results are calculated by converting ZAR results into GBP using the Q113 exchange rate for the income statement and the Q413 exchange rate for the balance sheet to eliminate the impact of movement in
          exchange rates between the two periods.
2       Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
3       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
 
 
Q114 compared to Q113
 
·      Based on average rates the ZAR depreciated against GBP by 30% on Q113. The deterioration was a significant contributor to the movement in the reported results. Other currency movements were not significant contributors to
        results for Africa RBB
 
·      Income declined 15% to £567m driven by currency movements. On a constant currency basis, income increased 9% driven by improved performance in South Africa partly as a result of an increased interest rate environment
 
-    Net interest margin was up 36bps to 339bps primarily due to lower treasury funding costs, the benefits from an increased interest rate environment and lower non-performing loans
 
·      Credit impairment charges improved by 48% to £59m, principally due to lower charges in the South African home loans portfolio and a depreciation of ZAR against GBP. The proportion of non-performing home loans improved
        due to lower charge-off rates and a continuation of enhanced recovery strategies
 
·      Operating expenses decreased 13% to £411m. On a constant currency basis, costs increased 9% driven by inflationary pressures in South Africa and costs to achieve Transform
 
·      Profit before tax increased 25% to £101m. On a constant currency basis profit before tax increased 75% to £142m, primarily due to lower credit impairment charges and improved revenue performance in South Africa
 
 
Results by Business
 
Q114 compared to Q413
 
·      Closing ZAR rate remained broadly steady, while the average rate depreciated against GBP by 8% from Q413. Other currency movements were not significant contributors to results for Africa RBB
 
 
·      Profit before tax increased to £101m (Q413: £60m), driven by depreciation in the ZAR, the 2013 UK bank levy charge in Q413 and lower costs in South Africa
 
 
·      Loans and advances to customers and customer deposits remained broadly in line at £23.9bn and £16.8bn respectively. On a constant currency basis loans and advances growth was offset by the continued decline in the home
        loans non-performing loans book, while customer deposits were stable
 
 
·      Total assets decreased 3% to £32.5bn. On a constant currency basis total assets were broadly in line
 
 
·      RWAs decreased 4% to £21.9bn driven by risk reductions and lower operational risk RWAs
 
 
Results by Business
 
Barclaycard
Three Months Ended
Three Months Ended
  
 
31.03.14
31.03.13
  
Income Statement Information
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
1,184 
1,153 
3 
Credit impairment charges and other provisions
(311)
(303)
(3)
Net operating income
873 
850 
3 
Operating expenses (excluding costs to achieve Transform)
(447)
(496)
10 
Costs to achieve Transform
(13)
- 
  
Operating expenses
(460)
(496)
7 
Other net income
10 
9 
11 
Profit before tax
423 
363 
17 
Attributable profit1 
286 
242 
18 
       
 
As at 31.03.14
As at 31.12.13
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
35.9 
35.6 
1 
Customer deposits
5.9 
5.2 
13 
Total assets
39.4 
38.9 
1 
Risk weighted assets - fully loaded CRD IV
41.2 
40.5 
2 
       
Performance Measures
31.03.14
31.03.13
  
Return on average tangible equity2 
23.5%
22.5%
  
Return on average equity2 
18.6%
17.0%
  
Return on average risk weighted assets2 
3.1%
2.8%
  
Cost: income ratio
39%
43%
  
Loan loss rate (bps)
333 
340 
  
 
 
 
1       Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
 
Q114 compared to Q113
 
·      Income increased 3% to £1,184m reflecting continued net lending growth across the business and lower impact from structural hedges, partially offset by depreciation of ZAR and USD against GBP
 
-    Customer asset margin remained broadly stable at 9.50%
 
·      Credit impairment charges increased 3% to £311m driven by asset growth across the business. Loan loss rates reduced by 7bps to 333bps, with improved delinquency rates in the US and UK reflecting improving economic conditions. In South Africa rates increased to 632bps (Q113: 403bps) reflecting a change in product mix as a result of portfolio acquisition and targeted asset growth
 
·      Operating expenses reduced 7% to £460m driven by depreciation of USD and ZAR against GBP and improved efficiency, partially offset by business growth and costs to achieve Transform
 
·      Profit before tax increased 17% to £423m reflecting continued net lending growth and improved efficiency
 
 Q114 compared to Q413
 
·      Profit before tax increased 26% to £423m driven by the 2013 UK bank levy charge in Q413 and lower operating expenses and costs to achieve Transform
 
·      Total assets and loans and advances to customers increased 1% to £39.4bn and £35.9bn respectively. Customer deposits increased to £5.9bn (2013: £5.2bn) due to continued funding initiatives in the US
 
·      RWAs increased 2% to £41.2bn driven primarily by an increase in customer lending and the further roll out of advanced modelled approaches
 
 
 
Results by Business
 
Investment Bank
Three Months Ended
Three Months Ended
  
 
31.03.14
31.03.13
  
Income Statement Information
£m
£m
% Change
Adjusted and statutory basis
      
 Macro Products1 
584 
1,113 
(48)
 Credit Products1 
646 
960 
(33)
FICC
1,230 
2,073 
(41)
Equities and Prime Services  
674 
706 
(5)
Investment Banking  
555 
557 
-
Principal Investments
8 
9 
(11)
Exit Quadrant2 
23 
118 
(81)
Total income
2,490 
3,463 
(28)
Net credit impairment charges and other provisions release
46 
14 
  
Net operating income
2,536 
3,477 
(27)
Operating expenses (excluding costs to achieve Transform)
(1,722)
(2,054)
16 
Costs to achieve Transform
(149)
(116)
(28)
Operating expenses
(1,871)
(2,170)
14 
Other net income
3 
8 
(63)
Profit before tax
668 
1,315 
(49)
Attributable profit3 
329 
823 
(60)
       
 
As at 31.03.14
As at 31.12.13
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers and banks at amortised cost4 
179.2 
146.6 
22 
Customer deposits4 
109.9 
83.2 
32 
Total assets5 
905.6 
897.5 
1 
Risk weighted assets - fully loaded CRD IV
218.9 
221.6 
(1)
       
Performance Measures
31.03.14
31.03.13
  
Return on average tangible equity6 
4.9%
11.0%
  
Return on average equity6 
4.7%
10.7%
  
Return on average risk weighted assets6 
0.7%
1.3%
  
Cost: income ratio
75%
63%
  
Compensation: income ratio
46%
41%
  
Loan loss rate (bps)
(6)
(5)
  
       
 
 
1       Macro Products represent Rates, Currencies and Commodities income.  Credit Products represent Credit and Securitised Products income. 
2       The Exit Quadrant consists of the Investment Bank Exit Quadrant business units as detailed on page 28.
3       Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
4       As at 31 March 2014 loans and advances included £141.8bn of loans and advances to customers (including settlement balances of £63.6bn and cash collateral of £38.9bn) and loans and advances to banks of £37.4bn
         (including settlement balances of £9.8bn and cash collateral of £13.6bn). Customer deposits included £60.6bn relating to settlement balances and £29.7bn relating to cash collateral.
5       2013 total assets have been revised to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation, resulting in a £33.7bn increase to total assets. Derivative financial instruments increased £31.0bn and
         loans and advances to banks and customers increased £2.7bn. Customer deposits increased £1.3bn.
6       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
 
Results by Business
 
Q114 compared to Q113
 
·      Total income decreased 28% to £2,490m including a 4% reduction due to currency movements
 
-    FICC income decreased 41% to £1,230m due to subdued client activity, changes in business mix in light of the ongoing strategic review of the Investment Bank, and a relatively strong first quarter comparison in 2013
 
-    Macro Products and Credit Products income decreased 48% and 33% to £584m and £646m respectively, as challenging trading conditions impacted activity. Q113 benefitted from increased activity across all products on positive 
      economic news as a result of the "fiscal cliff" resolution in the US
 
-    Equities and Prime Services income decreased 5% to £674m due to declines in cash equities and equity derivatives, as the prior year benefitted from market rallies globally, partially offset by higher income from Prime Services
      reflecting increased client activity
 
-    Investment Banking income remained in line at £555m, as a significant increase in financial advisory activity across Europe, Americas and Asia was offset by a decline in activity in debt and equity underwriting
 
-    Exit Quadrant income reduced £95m to £23m as Q113 benefitted from gains on commercial real estate and US residential mortgages
 
·      Net credit impairment release of £46m (Q113: net release of £14m) included charges of £7m, more than offset by releases totalling £53m across a number of counterparties
 
·      Operating expenses decreased 14% to £1,871m due to lower compensation costs and benefits associated with Transform programmes, including business restructuring and operational streamlining, and a 4% reduction due to
        currency movements
 
-    Costs to achieve Transform of £149m primarily related to the cost of reducing the scale of activities and redundancies across Europe, Asia and America
 
·      Including costs to achieve Transform, cost: income ratio increased 12% to 75%. Compensation: income ratio increased to 46% (Q113: 41%) with a 20% reduction in compensation to £1,136m offset by reduced income
 
·      Profit before tax decreased 49% to £668m
 
 
Q114 compared to Q413
 
·      Income increased 16% to £2,490m
 
-    FICC income increased 13% to £1,230m driven by an increase in trading volumes, across credit and securitised products businesses
 
 
-    Equities and Prime Services income increased 36% to £674m driven by improved performance in equity derivatives across Americas and Europe, and continued strong performance in Prime Services reflecting increased client activity
 
 
-    Investment Banking income decreased 6% to £555m, reflecting lower equity underwriting and financial advisory activity against a strong Q413, partially offset by increased debt underwriting income
 
 
-    Exit Quadrant income of £23m (Q413: loss of £54m) reflected gains on US residential mortgages. Q413 losses reflected a £111m reversal of income relating to a litigation matter
 
 
·      Net credit impairment release of £46m (Q413: charge of £14m) included charges of £7m, more than offset by releases totalling £53m across a number of counterparties
 
 
·      Operating expenses decreased 24% to £1,871m due to the 2013 UK bank levy charge in Q413 of £333m, savings associated with Transform and lower compensation costs. Q413 was impacted by provisions for litigation and
        regulatory penalties of £220m mainly relating to US residential mortgage-related business
 
 
·      Profit before tax increased £997m to £668m
 
 
·      Total assets increased £8.1bn to £905.6bn primarily reflecting increases in cash and balances at central banks and loans and advances to banks and customers due to increases in settlement balances. These increases were
        partially offset by a decrease in derivative financial instruments
 
 
·      RWAs decreased 1% to £218.9bn driven by risk reductions and offsetting model and policy changes

 
Results by Business
 
Corporate Banking
Three Months Ended
Three Months Ended
  
 
31.03.14
31.03.13
  
Income Statement Information
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
722 
772 
(6)
Credit impairment charges and other provisions
(78)
(130)
40 
Net operating income
644 
642 
-
Operating expenses (excluding costs to achieve Transform)
(379)
(422)
10 
Costs to achieve Transform
(6)
(37)
84 
Operating expenses
(385)
(459)
16 
Other net income
1 
- 
  
Profit before tax
260 
183 
42 
Attributable profit1 
160 
120 
33 
       
Adjusted and statutory profit/(loss) before tax by geographic segment
      
UK
240 
269 
(11)
Europe
(17)
(114)
85 
Rest of the World
37 
28 
32 
Total  
260 
183 
42 
       
 
As at 31.03.14
As at 31.12.13
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
62.0 
61.1 
2 
Loans and advances to customers at fair value
15.9 
15.7 
1 
Customer deposits
111.7 
108.7 
3 
Total assets
113.2 
113.9 
(1)
Risk weighted assets - fully loaded CRD IV
67.9 
70.5 
(4)
       
Performance Measures
31.03.14
31.03.13
  
Return on average tangible equity2 
7.3%
5.1%
  
Return on average equity2 
7.0%
4.9%
  
Return on average risk weighted assets2 
1.1%
0.8%
  
Cost: income ratio
53%
59%
  
Loan loss rate (bps)
46 
74 
  
 
 
 
1        Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
Q114 compared to Q113
 
·      Total income reduced 6% to £722m as a £58m reduction in income related to movement in the fair value loan portfolio more than offset otherwise improved UK performance. The net interest margin was in line at 124bps
 
 
·      Credit impairment improved 40% to £78m, driven by Europe which saw charges reduce by £57m to £41m following ongoing actions to reduce exposure to the property and construction sector in Spain and fewer large impairments.
        UK impairment charges remained at a low level at £36m (Q113: £30m)
 
 
·      Operating expenses improved 16% to £385m as a result of 2013 Transform initiatives to reduce costs in all regions. Costs to achieve Transform reduced to £6m (Q113: £37m), mainly due to non-recurrence of Exit Quadrant related
        spend. Current period cost to achieve Transform was driven by investment in infrastructure efficiency in the UK
 
 
·      Adjusted profit before tax increased 42% to £260m driven by lower operating expenses and improved impairment, partially offset by reduced income following a fair value loan portfolio reduction
 
 
Q114 compared to Q413  
 
·      Adjusted profit before tax improved to £260m (Q413: £123m), reflecting lower operating expenses driven by a reduction in costs to achieve Transform and the 2013 UK bank levy charge of £51m in Q413, in addition to improved
        impairment. Income reduced 5% to £722m, reflecting a fair value loan portfolio reduction of £27m (Q413: gain £14m)
 
·      Loans and advances to customers increased £62.0bn (Q413: £61.1bn), driven primarily by an increase in client financing requirements in the UK. Customer deposits increased 3% to £111.7bn reflecting growth across all regions
 
·      RWAs decreased 4% to £67.9bn driven by run down of Exit Quadrant assets and changes to the treatment of high quality liquidity assets
 
 
 
 
Results by Business
 
Wealth and Investment Management
Three Months Ended
Three Months Ended
  
 
31.03.14
31.03.13
  
Income Statement Information
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
451 
469 
(4)
Credit impairment charges and other provisions
(17)
(14)
(21)
Net operating income
434 
455 
(5)
Operating expenses (excluding costs to achieve Transform)
(363)
(400)
9 
Costs to achieve Transform
(22)
- 
  
Operating expenses
(385)
(400)
4 
Other net income
2 
5 
(60)
Profit before tax
51 
60 
(15)
Attributable profit1 
31 
45 
(31)
       
 
As at 31.03.14
As at 31.12.13
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
23.5 
23.1 
2 
Customer deposits
60.5 
63.4 
(5)
Total assets
36.4 
37.6 
(3)
Risk weighted assets - fully loaded CRD IV
17.2 
17.3 
(1)
Total client assets
198.3 
204.8 
(3)
       
Performance Measures
31.03.14
31.03.13
  
Return on average tangible equity2 
6.5%
10.0%
  
Return on average equity2 
5.2%
7.6%
  
Return on average risk weighted assets2 
0.8%
1.1%
  
Cost: income ratio
85%
85%
  
Loan loss rate (bps)
29 
25 
  
 
 
 
1        Attributable profit is calculated as profit after tax after deducting non-controlling interests and other equity interests.
2       Comparatives have been revised for the impact of calculating returns based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
 
 
Q114 compared to Q113
 
·      Income decreased 4% to £451m primarily due to adverse foreign exchange movements
 
-       Net interest margin decreased by 5bps to 106bps, reflecting reduced contributions from structural hedges
 
·      Operating expenses decreased 4% to £385m with the increase in costs to achieve Transform of £22m offset by cost savings arising primarily from the reduction in employees as part of the Transform restructuring initiatives
 
·      Profit before tax decreased 15% to £51m as the business continued to implement Transform and other strategic initiatives to streamline target markets and client propositions
 
Q114 compared to Q413
 
·      Adjusted profit before tax increased from a loss of £73m to a profit of £51m primarily driven by a reduction in the costs to achieve Transform and reduced credit impairment charges
 
·      Credit impairment charges improved 48% to £17m reflecting non recurrence of significant impairment charges taken in Q413
 
·      Loans and advances to customers increased 2% to £23.5bn
 
·      Customer deposits decreased 5% to £60.5bn and client assets decreased 3% to £198.3bn driven primarily by reduced institutional cash deposits
 
·      RWAs remained broadly flat at £17.2bn
 
 
 
 
Results by Business
 
Head Office and Other Operations
Three Months Ended
Three Months Ended
 
31.03.14
31.03.13
Income Statement Information
£m
£m
Adjusted basis
    
Net operating expense
(55)
(34)
Operating expenses (excluding costs to achieve Transform)  
(21)
(17)
Costs to achieve Transform
(7)
(5)
Operating expenses
(28)
(22)
Other net income
1 
3 
Adjusted loss before tax  
(82)
(53)
Adjusted attributable loss1 
(138)
(84)
     
Adjusting items
    
Own credit
119 
(251)
Statutory profit/(loss) before tax  
37 
(304)
     
 
As at 31.03.14
As at 31.12.13
Balance Sheet Information  
£bn
£bn
Total assets
43.2 
26.7 
Risk weighted assets - fully loaded CRD IV
2.5 
2.5 
 
 
 
1        Adjusted attributable loss is calculated as profit after tax after deducting non-controlling interests and other equity interests.
 
Q114 compared to Q113
 
 
·      Adjusted net operating expense increased to £55m (Q113: £34m), predominately due to the residual expense from treasury operations, partially offset by a net gain of £77m as currency movements were transferred from reserves
        due to the repatriation of capital from various subsidiaries in the Group
 
·      Operating expenses increased to £28m (Q113: £22m)
 
·      Adjusted loss before tax increased to £82m (Q113: £53m). Statutory profit before tax improved to £37m (Q113: loss of £304m) including an own credit gain of £119m (Q113: charge of £251m)
 
Q114 compared to Q413
 
·      Adjusted net operating expense increased to £55m (Q413: income of £124m), principally due to the non-recurrence of an adjustment to the carrying amount of subordinated liabilities (£167m) and an increase in the residual
        expense from treasury operations, partially offset by a net gain of £77m as currency movements were transferred from reserves due to the repatriation capital from various subsidiaries in the Group
 
·      Operating expenses decreased to £28m (Q413: £86m), due to lower costs to achieve Transform and 2013 UK bank levy charge of £15m in Q413
 
·      Adjusted loss before tax increased to £82m (Q413: profit of £44m). Statutory profit before tax improved to £37m (Q413: loss of £51m) including an own credit gain of £119m (Q413: charge of £95m)
 
·      Total assets increased to £43.2bn (2013: £26.7bn) primarily reflecting an increase in surplus group liquidity pool assets
 
·      RWAs remained flat at £2.5bn
 
 
 

 
Appendix I - Quarterly Results Summary
 
Barclays Results by Quarter
Q114
  
Q413
Q313
Q213
Q113
  
Q412
Q312
Q212
 
 
 
£m
  
£m
£m
£m
£m
  
£m
£m
£m
 
 
Adjusted basis  
                    
Total income net of insurance claims  
6,650 
  
6,639 
6,445 
7,337 
7,734 
  
6,867 
7,002 
7,384 
Credit impairment charges and other provisions  
(548)
  
(718)
(722)
(925)
(706)
  
(825)
(805)
(926)
Net operating income  
6,102 
  
5,921 
5,723 
6,412 
7,028 
  
6,042 
6,197 
6,458 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(4,195)
  
(4,777)
(4,262)
(4,359)
(4,782)
  
(4,345)
(4,353)
(4,555)
Costs to achieve Transform
(240)
  
(468)
(101)
(126)
(514)
  
- 
- 
- 
UK bank levy  
- 
  
(504)
- 
- 
- 
  
(345)
- 
- 
Operating expenses
(4,435)
  
(5,749)
(4,363)
(4,485)
(5,296)
  
(4,690)
(4,353)
(4,555)
Other net income/(expense)
26 
  
19 
25 
(122)
54 
  
43 
21 
41 
Adjusted profit before tax  
1,693 
  
191 
1,385 
1,805 
1,786 
  
1,395 
1,865 
1,944 
   
                    
Adjusting items  
                    
Own credit  
119 
  
(95)
(211)
337 
(251)
  
(560)
(1,074)
(325)
Gain on disposal of BlackRock, Inc. investment
- 
  
- 
- 
- 
- 
  
- 
- 
227 
Provision for PPI redress
- 
  
- 
- 
(1,350)
- 
  
(600)
(700)
- 
Provision for interest rate hedging products redress
- 
  
- 
- 
(650)
- 
  
(400)
- 
(450)
Goodwill impairment  
- 
  
(79)
- 
- 
- 
  
- 
- 
- 
Statutory profit/(loss) before tax
1,812 
  
17 
1,174 
142 
1,535 
  
(165)
91 
1,396 
Statutory profit/(loss) after tax
1,215 
  
(514)
728 
39 
1,044 
  
(364)
(13)
943 
                     
Attributable to:
                    
Ordinary equity holders of the parent
965 
  
(642)
511 
(168)
839 
  
(589)
(183)
746 
Other equity holders
49 
  
- 
- 
- 
- 
  
- 
- 
- 
Non-controlling interests
201 
  
128 
217 
207 
205 
  
225 
170 
197 
                     
Adjusted basic earnings/(loss) per share  
5.4p
  
(3.9p)
5.4p
7.7p
7.5p
  
6.7p
7.8p
8.7p
Adjusted cost: income ratio  
67%
  
87%
68%
61%
68%
  
68%
62%
62%
Basic earnings/(loss) per share  
5.9p
  
(5.0p)
3.7p
(1.2p)
6.3p
  
(4.5p)
(1.4p)
5.7p
Cost: income ratio  
66%
  
89%
70%
85%
71%
  
90%
85%
69%
                     
 
 
Adjusted Profit/(Loss) Before Tax by Business
Q114
  
Q413
Q313
Q213
Q113
  
Q412
Q312
Q212
£m
  
£m
£m
£m
£m
  
£m
£m
£m
 
 
UK RBB
360 
  
212 
351 
333 
299 
  
275 
358 
360 
Europe RBB
(88)
  
(181)
(106)
(247)
(462)
  
(114)
(81)
(76)
Africa RBB
101 
  
60 
132 
131 
81 
  
105 
34 
51 
Barclaycard
423 
  
335 
397 
412 
363 
  
335 
396 
404 
Investment Bank
668 
  
(329)
463 
1,074 
1,315 
  
760 
988 
1,060 
Corporate Banking
260 
  
123 
276 
219 
183 
  
61 
88 
108 
Wealth and Investment Management
51 
  
(73)
7 
(13)
60 
  
105 
70 
49 
Head Office and Other Operations
(82)
  
44 
(135)
(104)
(53)
  
(132)
12 
(12)
Total profit before tax
1,693 
  
191 
1,385 
1,805 
1,786 
  
1,395 
1,865 
1,944 

 
 
 
 
Appendix I - Quarterly Results Summary
 
 
Q114
  
Q413
Q313
Q213
Q113
  
Q412
Q312
Q212
UK Retail and Business Banking
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted basis  
                    
Total income net of insurance claims  
1,145 
  
1,149 
1,172 
1,135 
1,067 
  
1,077 
1,123 
1,118 
Credit impairment charges and other provisions  
(80)
  
(88)
(81)
(89)
(89)
  
(71)
(76)
(46)
Net operating income  
1,065 
  
1,061 
1,091 
1,046 
978 
  
1,006 
1,047 
1,072 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(676)
  
(709)
(710)
(689)
(704)
  
(718)
(689)
(713)
Costs to achieve Transform
(31)
  
(119)
(29)
(27)
-
  
-
-
-
UK bank levy
- 
  
(21)
- 
-
-
  
(17)
-
-
Operating expenses   
(707)
  
(849)
(739)
(716)
(704)
  
(735)
(689)
(713)
Other net income/(expense)
2 
  
- 
(1)
3 
25 
  
4 
-
1 
Adjusted profit before tax  
360 
  
212 
351 
333 
299 
  
275 
358 
360 
   
                    
Adjusting items  
                    
Provision for PPI redress  
- 
  
- 
- 
(660)
- 
  
(330)
(550)
-
Statutory profit/(loss) before tax  
360 
  
212 
351 
(327)
299 
  
(55)
(192)
360 
                     
Europe Retail and Business Banking
                    
Adjusted and statutory basis  
                    
Total income net of insurance claims  
146 
  
154 
160 
176 
176 
  
161 
168 
191 
Credit impairment charges and other provisions  
(49)
  
(78)
(67)
(72)
(70)
  
(74)
(58)
(71)
Net operating income  
97 
  
76 
93 
104 
106 
  
87 
110 
120 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(185)
  
(188)
(203)
(207)
(215)
  
(185)
(193)
(200)
Costs to achieve Transform
(3)
  
(46)
(1)
-
(356)
  
-
-
-
UK bank levy
- 
  
(26)
- 
- 
-
  
(20)
-
-
Operating expenses   
(188)
  
(260)
(204)
(207)
(571)
  
(205)
(193)
(200)
Other net income/(expense)
3 
  
3 
5 
(144)
3 
  
4 
2 
4 
Adjusted and statutory loss before tax
(88)
  
(181)
(106)
(247)
(462)
  
(114)
(81)
(76)
                     
Africa Retail and Business Banking
                    
Adjusted and statutory basis  
                    
Total income net of insurance claims  
567 
  
622 
643 
684 
668 
  
721 
714 
729 
Credit impairment charges and other provisions  
(59)
  
(59)
(57)
(94)
(114)
  
(142)
(176)
(208)
Net operating income  
508 
  
563 
586 
590 
554 
  
579 
538 
521 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(402)
  
(462)
(454)
(452)
(474)
  
(455)
(506)
(471)
Costs to achieve Transform
(9)
  
(15)
(2)
(9)
-
  
-
-
-
UK bank levy
- 
  
(28)
- 
-
-
  
(24)
-
-
Operating expenses  
(411)
  
(505)
(456)
(461)
(474)
  
(479)
(506)
(471)
Other net income
4 
  
2 
2 
2 
1 
  
5 
2 
1 
Adjusted and statutory profit before tax  
101 
  
60 
132 
131 
81 
  
105 
34 
51 
 

 
 
Appendix I - Quarterly Results Summary
 
 
Q114
  
Q413
Q313
Q213
Q113
  
Q412
Q312
Q212
Barclaycard
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted basis  
                    
Total income net of insurance claims  
1,184 
  
1,220 
1,223 
1,190 
1,153 
  
1,140 
1,092 
1,079 
Credit impairment charges and other provisions  
(311)
  
(314)
(334)
(313)
(303)
  
(286)
(271)
(242)
Net operating income  
873 
  
906 
889 
877 
850 
  
854 
821 
837 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(447)
  
(514)
(498)
(467)
(496)
  
(508)
(432)
(441)
Costs to achieve Transform
(13)
  
(38)
(6)
(5)
-
  
-
-
-
UK bank levy
- 
  
(24)
- 
- 
-
  
(16)
-
-
Operating expenses
(460)
  
(576)
(504)
(472)
(496)
  
(524)
(432)
(441)
Other net income
10 
  
5 
12 
7 
9 
  
5 
7 
8 
Adjusted profit before tax  
423 
  
335 
397 
412 
363 
  
335 
396 
404 
   
                    
Adjusting items  
                    
Provision for PPI redress  
- 
  
- 
- 
(690)
-
  
(270)
(150)
-
Statutory profit/(loss) before tax  
423 
  
335 
397 
(278)
363 
  
65 
246 
404 
                     
Investment Bank
                    
Adjusted and statutory basis  
                    
 Macro Products
584 
  
625 
472 
900 
1,113 
  
800 
748 
1,040 
 Credit Products
646 
  
460 
494 
513 
960 
  
492 
701 
665 
FICC
1,230 
  
1,085 
966 
1,413 
2,073 
  
1,292 
1,449 
1,705 
Equities and Prime Services
674 
  
496 
645 
825 
706 
  
454 
523 
615 
Investment Banking
555 
  
590 
525 
528 
557 
  
620 
493 
509 
Principal Investments  
8 
  
32 
1 
20 
9 
  
26 
30 
139 
Exit Quadrant
23 
  
(54)
(26)
224 
118 
  
202 
226 
56 
Total income  
2,490 
  
2,149 
2,111 
3,010 
3,463 
  
2,594 
2,721 
3,024 
Credit impairment releases/(charges) and other provisions  
46 
  
(14)
(25)
(195)
14 
  
1 
(3)
(121)
Net operating income  
2,536 
  
2,135 
2,086 
2,815 
3,477 
  
2,595 
2,718 
2,903 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(1,722)
  
(2,044)
(1,622)
(1,697)
(2,054)
  
(1,644)
(1,737)
(1,849)
Costs to achieve Transform
(149)
  
(87)
(6)
(53)
(116)
  
-
-
-
UK bank levy
- 
  
(333)
- 
-
-
  
(206)
-
-
Operating expenses  
(1,871)
  
(2,464)
(1,628)
(1,750)
(2,170)
  
(1,850)
(1,737)
(1,849)
Other net income
3 
  
-
5 
9 
8 
  
15 
7 
6 
Adjusted and statutory profit/(loss) before tax
668 
  
(329)
463 
1,074 
1,315 
  
760 
988 
1,060 
                     
Corporate Banking
                    
Adjusted basis  
                    
Total income net of insurance claims  
722 
  
764 
799 
780 
772 
  
746 
717 
734 
Credit impairment charges and other provisions  
(78)
  
(134)
(118)
(128)
(130)
  
(240)
(214)
(223)
Net operating income  
644 
  
630 
681 
652 
642 
  
506 
503 
511 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(379)
  
(396)
(393)
(430)
(422)
  
(412)
(421)
(402)
Costs to achieve Transform  
(6)
  
(60)
(13)
(4)
(37)
  
-
-
-
UK bank levy
- 
  
(51)
- 
-
-
  
(39)
-
-
Operating expenses
(385)
  
(507)
(406)
(434)
(459)
  
(451)
(421)
(402)
Other net income/(expense)
1 
  
- 
1 
1 
-
  
6 
6 
(1)
Adjusted profit before tax  
260 
  
123 
276 
219 
183 
  
61 
88 
108 
   
                    
Adjusting items  
                    
Provision for interest rate hedging products redress  
- 
  
- 
- 
(650)
-
  
(400)
-
(450)
Statutory profit/(loss) before tax  
260 
  
123 
276 
(431)
183 
  
(339)
88 
(342)
 
Appendix I - Quarterly Results Summary
 
 
 
 
Q114
  
Q413
Q313
Q213
Q113
  
Q412
Q312
Q212
Wealth and Investment Management
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted basis  
                    
Total income net of insurance claims  
451 
  
459 
449 
462 
469 
  
483 
443 
442 
Credit impairment charges and other provisions  
(17)
  
(33)
(39)
(35)
(14)
  
(13)
(6)
(12)
Net operating income  
434 
  
426 
410 
427 
455 
  
470 
437 
430 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(363)
  
(415)
(361)
(410)
(400)
  
(361)
(369)
(380)
Costs to achieve Transform
(22)
  
(81)
(44)
(33)
-
  
-
-
-
UK bank levy
- 
  
(6)
- 
- 
-
  
(4)
-
-
Operating expenses   
(385)
  
(502)
(405)
(443)
(400)
  
(365)
(369)
(380)
Other net income/(expense)  
2 
  
3 
2 
3 
5 
  
- 
2 
(1)
Adjusted profit/(loss) before tax
51 
  
(73)
7 
(13)
60 
  
105 
70 
49 
   
                    
Adjusting items  
                    
Goodwill impairment
- 
  
(79)
- 
- 
- 
  
- 
- 
- 
Statutory profit/(loss) before tax  
51 
  
(152)
7 
(13)
60 
  
105 
70 
49 
                     
Head Office and Other Operations
                    
Adjusted basis  
                    
Total (expense)/income net of insurance claims  
(55)
  
122 
(112)
(100)
(34)
  
(55)
24 
68 
Credit impairment releases/(charges) and other provisions  
- 
  
2 
(1)
1 
- 
  
- 
(1)
(3)
Net operating (expense)/income  
(55)
  
124 
(113)
(99)
(34)
  
(55)
23 
65 
Operating expenses (excluding costs to achieve Transform and UK bank levy)
(21)
  
(49)
(21)
(7)
(17)
  
(61)
(6)
(99)
Costs to achieve Transform  
(7)
  
(22)
- 
5 
(5)
  
-
-
-
UK bank levy
- 
  
(15)
- 
- 
- 
  
(19)
-
-
Operating expenses   
(28)
  
(86)
(21)
(2)
(22)
  
(80)
(6)
(99)
Other net income/(expense)
1 
  
6 
(1)
(3)
3 
  
3 
(5)
23 
Adjusted (loss)/profit before tax
(82)
  
44 
(135)
(104)
(53)
  
(132)
12 
(11)
   
                    
Adjusting items  
                    
Own Credit
119 
  
(95)
(211)
337 
(251)
  
(560)
(1,074)
(325)
Gain on disposal of BlackRock, Inc. investment  
- 
  
- 
- 
-
-
  
-
-
227 
Statutory profit/(loss) before tax  
37 
  
(51)
(346)
233 
(304)
  
(692)
(1,062)
(109)

 
Appendix II - Performance Management
 
Returns and Equity by Business
 
Returns on average equity and average tangible equity are calculated as profit attributable to ordinary equity holders of the parent divided by average allocated equity or average allocated tangible equity as appropriate, excluding non-controlling and other equity interests. Average allocated equity has been calculated as 10.5% of average fully loaded CRD IV risk weighted assets for each business, adjusted for fully loaded CRD IV capital deductions, including goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. The lower capital level currently held, reflecting Common Equity Tier 1 capital ratio of 9.6% as at 31 March 2014, is allocated to Head Office and Other Operations. Average allocated tangible equity is calculated using the same method but excludes goodwill and intangible assets.
 
 
 
Adjusted
  
Statutory
 
 
 
Three Months Ended
Three Months Ended1 
  
Three Months Ended
Three Months Ended1 
 
31.03.14
31.03.13
  
31.03.14
31.03.13
Return on Average Equity
%
%
  
%
%
UK RBB
12.4 
11.0 
  
12.4 
11.0 
Europe RBB
(13.0)
(61.9)
  
(13.0)
(61.9)
Africa RBB
2.6 
1.2 
  
2.6 
1.2 
Barclaycard
18.6 
17.0 
  
18.6 
17.0 
Investment Bank
4.7 
10.7 
  
4.7 
10.7 
Corporate Banking
7.0 
4.9 
  
7.0 
4.9 
Wealth and Investment Management
5.2 
7.6 
  
5.2 
7.6 
Group excluding Head Office and Other Operations
6.9 
7.1 
  
6.9 
7.1 
Head Office and Other Operations impact
(0.5)
0.5 
  
0.2 
(0.6)
Total
6.4 
7.6 
  
7.1 
6.5 
           
 
Adjusted
  
Statutory
 
 
 
Three Months Ended
Three Months Ended1 
  
Three Months Ended
Three Months Ended1 
 
31.03.14
31.03.13
  
31.03.14
31.03.13
Return on Average Tangible Equity
%
%
  
%
%
UK RBB
21.0 
19.2 
  
21.0 
19.2 
Europe RBB
(14.2)
(67.3)
  
(14.2)
(67.3)
Africa RBB2 
4.1 
2.1 
  
4.1 
2.1 
Barclaycard
23.5 
22.5 
  
23.5 
22.5 
Investment Bank
4.9 
11.0 
  
4.9 
11.0 
Corporate Banking
7.3 
5.1 
  
7.3 
5.1 
Wealth and Investment Management
6.5 
10.0 
  
6.5 
10.0 
Group excluding Head Office and Other Operations
7.9 
8.1 
  
7.9 
8.1 
Head Office and Other Operations impact
(0.4)
0.9 
  
0.4 
(0.5)
Total
7.5 
9.0 
  
8.3 
7.6 
 
 
1       Comparatives have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).
 
2       The return on average tangible equity for Africa RBB for 2013 has been revised to exclude amounts relating to Absa Group's non-controlling interests.
 
 
Appendix II - Performance Management
 
 
Adjusted
  
Statutory
 
 
 
Three Months Ended
Three Months Ended
  
Three Months Ended
Three Months Ended
 
31.03.14
31.03.13
  
31.03.14
31.03.13
Profit/(Loss) Attributable to Ordinary Equity Holders of the Parent
£m
£m
  
£m
£m
UK RBB
263 
218 
  
263 
218 
Europe RBB
(69)
(363)
  
(69)
(363)
Africa RBB
20 
9 
  
20 
9 
Barclaycard
286 
242 
  
286 
242 
Investment Bank
329 
823 
  
329 
823 
Corporate Banking
160 
120 
  
160 
120 
Wealth and Investment Management
31 
45 
  
31 
45 
Head Office and Other Operations1 
(138)
(84)
  
(55)
(255)
Total
882 
1,010 
  
965 
839 
           
 
 
 
Average Allocated Equity2 
  
Average Allocated Tangible Equity2 
 
 
 
Three Months Ended
Three Months Ended3 
  
Three Months Ended
Three Months Ended3 
 
31.03.14
31.03.13
  
31.03.14
31.03.13
 
£m
£m
  
£m
£m
UK RBB
8,484 
7,914 
  
5,001 
4,546 
Europe RBB
2,120 
2,344 
  
1,950 
2,157 
Africa RBB
3,032 
3,075 
  
1,975 
1,744 
Barclaycard
6,161 
5,697 
  
4,874 
4,311 
Investment Bank
27,732 
30,734 
  
26,978 
30,036 
Corporate Banking
9,203 
9,850 
  
8,809 
9,479 
Wealth and Investment Management
2,387 
2,369 
  
1,906 
1,809 
Head Office and Other Operations1 
(5,089)
(10,074)
  
(5,127)
(10,093)
Total1 
54,030 
51,909 
  
46,366 
43,989 
 
 
1       Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average ordinary shareholders' equity and tangible ordinary shareholders' equity.
 
2       Group average ordinary shareholders' equity and average tangible ordinary shareholders' equity exclude the cumulative impact of own credit on retained earnings for the calculation of adjusted performance measures. 
 
3       Comparatives have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).

 
Appendix II - Performance Management
 
Transform Update
 
On 12 February 2013 the Group announced a Strategic Review which included reducing operating expenses to £16.8bn by 2015.
 
Costs to achieve Transform totalled £240m in Q114, principally related to reducing the scale of activities and redundancies in the Investment Bank and UK RBB and investment in technology and process improvements that will reduce future operating costs and enhance customer and client propositions.
 
 
                     
                     
   
Adjusted performance measures excluding CTA
    
 
 
 
CTA Spend
  
Profit/(Loss) Before Tax
  
Return
on
Average
Equity1 
Cost:
Income
Ratio
  
Total
CTA
Spend
 
 
 
31.03.14
  
31.03.14
31.03.13
    
31.03.14
31.03.14
  
to Date
 
£m
  
£m
£m
% Change
  
%
%
  
£m
UK RBB
31 
  
391 
299 
31 
  
13.5%
59%
  
206 
Europe RBB
3 
  
(85)
(106)
(20)
  
(12.6%)
127%
  
406 
Africa RBB
9 
  
110 
81 
36 
  
3.5%
71%
  
35 
Barclaycard
13 
  
436 
363 
20 
  
19.2%
38%
  
62 
Investment Bank
149 
  
817 
1,431 
(43)
  
6.3%
69%
  
411 
Corporate Banking
6 
  
266 
220 
21 
  
7.1%
52%
  
120 
Wealth and Investment Management
22 
  
73 
60 
22 
  
8.1%
80%
  
180 
Head Office and Other Operations
7 
  
(75)
(48)
56 
  
(0.3%)
    
29 
Total
240 
  
1,933 
2,300 
(16)
  
7.7%
63%
  
1,449 
                     
 
1        Return on average equity for Head Office and Other Operations represents the dilution for the Group.
 
 
Appendix II - Performance Management
 
Exit Quadrant Business Units
 
·      The table below presents selected financial data for the strategic Exit Quadrant assets including 2012 comparatives to show the run down since the Transform strategy announcement
 
 
CRD IV RWAs1 
Balance Sheet
Three Months Ended 31.03.14
 
 
 
As at 31.03.14
As at 31.12.13
As at 31.12.12
As at 31.03.14
As at 31.12.13
As at 31.12.12
Income/ (Expense)
Impairment (Charge)/ Release
Net Operating (Expense)/ Income
Investment Bank
£bn
£bn
£bn
£bn
£bn
£bn
£m
£m
£m
US Residential Mortgages
0.9 
1.1 
5.3 
0.6 
0.5 
2.2 
27 
- 
27 
Commercial Mortgages and Real Estate
1.6 
2.0 
3.1 
1.7 
2.0 
4.0 
9 
- 
9 
Leveraged and Other Loans
9.5 
9.7 
10.1 
5.7 
6.0 
11.5 
(21)
- 
(21)
CLOs and Other Insured Assets
3.6 
3.7 
5.9 
11.1 
11.7 
16.3 
17 
- 
17 
Structured Credit and Other2 
1.9 
3.8 
9.4 
4.5 
5.3 
8.9 
10 
- 
10 
Monoline Derivatives
2.4 
2.2 
3.1 
0.2 
0.3 
0.6 
(16)
- 
(16)
Corporate Derivatives
2.2 
1.9 
8.3 
2.1 
2.2 
3.6 
- 
- 
- 
Portfolio Assets
22.1 
24.4 
45.2 
25.9 
28.0 
47.1 
26 
- 
26 
Pre-CRD IV Rates Portfolio
22.5 
22.2 
33.9 
            
Total Investment Bank
44.6 
46.6 
79.1 
            
                   
Corporate Banking European Assets
2.5 
3.2 
5.0 
2.3 
2.6 
3.9 
16 
(37)
(21)
                   
Europe RBB assets
8.8 
9.0 
9.7 
20.8 
21.3 
22.9 
24 
(36)
(12)
Total  
55.9 
58.8 
93.8 
            
 
31 March 2014 compared to 31 December 2013
 
·      Exit Quadrant income shown on page 16 differs from the income above due to associated litigation matters
 
·      Investment Bank RWAs decreased by £2.0bn to £44.6bn, driven by continued asset run down and reduction in averaged modelled RWAs following the sale of Structured Credit assets in Q413. This was partially offset by a
        revision to the probability of default metrics for wholesale portfolios.  RWAs in Corporate Banking and Europe RBB Exit Quadrant portfolios decreased due to continued asset run down
 
·      Portfolio Assets balance sheet assets decreased £2.1bn to £25.9bn driven by net sales and paydowns across asset classes.  Income of £26m was primarily driven by gains relating to US Residential Mortgage, Commercial
        Mortgages and Real Estate exposures and Structured Credit and Other, partially offset by the net funding cost of Leveraged and Other Loans
 
·      Corporate Banking Exit Quadrant balance sheet assets in Europe decreased £0.3bn to £2.3bn driven by reductions in Spain and Portugal
 
·      Europe RBB Exit Quadrant balance sheet assets decreased £0.5bn to £20.8bn, reflecting actions taken to reduce assets in line with the strategy to run down exit quadrant assets
 
 
 
1       The table above provides an indication of the CRD IV RWAs that are currently allocated to the Exit Quadrant businesses.  RWAs as at 31 December 2013 have been revised to reflect changes to the allocation methodology
         following the go-live of CRD IV in 2014.
2      Comparative balance sheet amounts have been revised to adopt the offsetting amendments to IAS 32, Financial Instrument; Presentation. Structured Credit and other increased by £0.1bn as at 31 December 2013 and £0.3bn
        as at 31 December 2012.
 
 
 
 
Appendix II - Performance Management
 
Margins and Balances
    
 
Three Months
Three Months
 
Ended
Ended
Analysis of Net Interest Income
31.03.14
31.03.13
 
£m
£m
RBB, Barclaycard, Corporate Banking and Wealth and Investment Management Customer Income:
    
- Customer assets
 1,788 
 1,723 
- Customer liabilities
 825 
 786 
Total
 2,613 
 2,509 
RBB, Barclaycard, Corporate Banking and Wealth and Investment Management Non-customer Income:
    
- Product structural hedge1 
 191 
 220 
- Equity structural hedge2 
 103 
72 
- Other
(22)
(26)
Total RBB, Barclaycard, Corporate Banking and Wealth and Investment Management Net Interest Income
2,885 
 2,775 
Investment Bank
261 
 57 
Head Office and Other Operations
(48)
45 
Group net interest income  
 3,098 
 2,877 
 
 
·      Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management increased 4% to £2,613m reflecting business growth in UK RBB, Barclaycard and Corporate Banking as net interest
        margin remained stable. This was partially offset by foreign exchange movements in Africa RBB and the withdrawal from certain business lines in Europe RBB
 
·      Group net interest income including contributions for the Investment Bank and Head Office and Other Operations increased 8% to £3,098m, predominantly due to higher net interest income in UK RBB and the Investment Bank, 
        partially offset by the residual net expense from treasury operations
 
·      Total contribution to Group net interest income from structured hedges was £0.4bn (2013: £0.4bn)
 
 
1       Product structural hedges convert short term interest margin volatility on product balances (such as non-interest bearing current accounts and managed rate deposits) into a more stable medium term rate and are built on 
         a monthly basis to achieve a targeted maturity profile.
2       Equity structural hedges are in place to manage the volatility in net earnings generated by businesses on the Group's equity, with the impact allocated to businesses in line with their capital usage.
 
 
 
Appendix II - Performance Management
 
Analysis of Net Interest Margin-Quarterly
          
 
 
 
UK RBB
Europe RBB
Africa RBB
Barclaycard
Corporate Banking  
Wealth and Investment Management
Total RBB, Barclaycard, Corporate and Wealth
Quarter Ended 31.03.14
%
%
%
%
%
%
%
Customer asset margin
 1.24 
 0.38 
 3.02 
9.50 
1.44 
0.94 
2.24 
Customer liability margin
 0.97 
 0.55 
 2.76 
(0.29)
0.91 
1.01 
1.01 
               
Customer generated margin
 1.11 
 0.42 
 2.91 
8.39 
1.12 
0.99 
1.62 
Non-customer generated margin
0.21 
0.35 
0.48 
(0.20)
0.12 
0.07 
0.17 
               
Net interest margin
1.32 
0.77 
3.39 
8.19 
1.24 
1.06 
1.79 
               
Average customer assets (£m)
 137,290 
 36,533 
 23,151 
 37,208 
 66,612 
 23,292 
 324,086 
Average customer liabilities (£m)
 134,207 
 13,490 
 15,751 
 4,752 
 100,612 
 62,181 
 330,993 
               
Quarter Ended 31.12.13
              
Customer asset margin
 1.27 
 0.43 
 3.16 
 9.19 
 1.34 
 0.98 
 2.20 
Customer liability margin
 0.92 
 0.38 
 2.64 
(0.27)
 0.88 
 0.97 
 0.97 
               
Customer generated margin
 1.10 
 0.42 
 2.95 
 8.17 
 1.06 
 0.97 
 1.58 
Non-customer generated margin
 0.22 
 0.35 
 0.30 
(0.10)
 0.07 
 0.05 
 0.16 
               
Net interest margin
 1.32 
 0.77 
 3.25 
 8.07 
 1.13 
 1.02 
 1.74 
               
Average customer assets (£m)
 136,100 
 37,884 
 24,854 
 36,640 
 66,098 
 22,765 
 324,341 
Average customer liabilities (£m)
 133,019 
 13,466 
 17,014 
 4,404 
 98,973 
 63,114 
 329,990 
               
Quarter Ended 31.03.13
              
Customer asset margin
 1.10 
 0.45 
 2.92 
 9.49 
 1.24 
 0.85 
 2.12 
Customer liability margin
 0.96 
 0.42 
 2.73 
(0.35)
 1.02 
 1.02 
 1.06 
               
Customer generated margin
 1.03 
 0.44 
 2.85 
 8.77 
 1.11 
 0.97 
 1.62 
Non-customer generated margin
 0.25 
 0.37 
 0.18 
(0.28)
 0.12 
 0.14 
 0.17 
               
Net interest margin
 1.28 
 0.81 
 3.03 
 8.49 
 1.23 
 1.11 
 1.79 
               
Average customer assets (£m)
 130,546 
 40,494 
 30,451 
 35,887 
 66,741 
 22,221 
 326,340 
Average customer liabilities (£m)
 118,721 
 14,307 
 18,925 
 2,822 
 93,423 
 55,642 
 303,840 
               

 
Appendix III - Consolidated Summary Income Statement and Balance Sheet
 
Consolidated Summary Income Statement
 
 
 
Three Months Ended
Three Months Ended
Continuing Operations
31.03.14
31.03.13
 
£m
£m
Total income net of insurance claims
6,769 
7,483 
Credit impairment charges and other provisions
(548)
(706)
Net operating income
6,221 
6,777 
     
Staff costs
(2,943)
(3,543)
Administration and general expenses
(1,492)
(1,753)
Operating expenses
(4,435)
(5,296)
     
Profit on disposal of undertakings and share of results of associates and joint ventures
26 
54 
Profit before tax
1,812 
1,535 
Tax
(597)
(491)
Profit after tax
1,215 
1,044 
     
Attributable to:
    
Ordinary equity holders of the parent
965 
839 
Other equity holders
49 
-
Total equity holders
1,014 
839 
Non-controlling interests
201 
205 
Profit after tax
1,215 
1,044 
     
Earnings per Share from Continuing Operations
    
Basic earnings per ordinary share1 
5.9p
6.3p
 
 
 
 
1       Basic earnings per share is based on profit attributable to ordinary equity holders of the parent and the weighted average number of shares excluding treasury shares, and shares held in employee benefit trusts or held for
         trading. The total basic weighted average number of shares in issue used in the calculation for the three months to 31 March 2014 was 16,246m shares.  The total number of ordinary shares in issue at 31 March 2014 was
         16,390m ordinary shares.
 
 
Appendix III - Consolidated Summary Income Statement and Balance Sheet
 
 
Consolidated Summary Balance Sheet1 
    
 
As at
As at
 
31.03.14
31.12.13
Assets
£m
£m
Cash, balances at central banks and items in the course of collection
56,620 
46,969 
Trading portfolio assets
134,329 
133,069 
Financial assets designated at fair value
38,868 
38,968 
Derivative financial instruments
333,413 
355,313 
Available for sale financial investments
83,244 
91,756 
Loans and advances to banks
44,198 
39,424 
Loans and advances to customers
462,017 
431,553 
Reverse repurchase agreements and other similar secured lending
187,046 
186,779 
Goodwill and intangible assets
7,752 
7,685 
Other assets
14,461 
14,442 
Total assets
1,361,948 
1,345,958 
     
Liabilities
    
Deposits and items in the course of collection due to banks
62,345 
57,005 
Customer accounts
457,400 
429,189 
Repurchase agreements and other similar secured borrowing
196,072 
196,748 
Trading portfolio liabilities
58,031 
53,464 
Financial liabilities designated at fair value
64,310 
64,796 
Derivative financial instruments  
329,529 
352,226 
Debt securities in issue
89,540 
86,693 
Subordinated liabilities
20,760 
21,695 
Other liabilities
19,076 
20,193 
Total liabilities
1,297,063 
1,282,009 
     
Equity
    
Called up share capital and share premium
20,592 
19,887 
Other reserves
424 
249 
Retained earnings
33,314 
33,186 
Shareholders' equity attributable to ordinary shareholders of the parent
54,330 
53,322 
Other equity instruments  
2,063 
2,063 
Total equity excluding non-controlling interests
56,393 
55,385 
Non-controlling interests
8,492 
8,564 
Total equity
64,885 
63,949 
     
Total liabilities and equity
1,361,948 
1,345,958 
 
 
 
1          2013 amounts have been revised to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation. Total assets increased £33.7bn with increases of £31.0bn for Derivative financial assets, £1.6bn for
            Loans and advances to banks and £1.1bn to Loans and advances to customers. A corresponding increase of £33.7bn was noted in Total liabilities with increases of £31.6bn for Derivative financial liabilities, £0.8bn for
           Deposits and £1.3bn for Customer accounts.
 
 

 
Appendix IV - Net Tangible Asset Value per Share
 
Net Tangible Asset Value Per Share
  
 
 
       
 
31.03.14
31.12.13
Variance
 
£m
£m
£m
Share capital and share premium
20,592 
19,887 
705 
Available for sale reserve
372 
148 
224 
Cash flow hedging reserve
557 
273 
284 
Currency translation reserve
(1,428)
(1,142)
(286)
Other reserves and treasury shares
923 
970 
(47)
Retained earnings
33,314 
33,186 
128 
Shareholders' equity attributable to ordinary shareholders of the parent
54,330 
53,322 
1,008 
Goodwill and intangible assets
7,752 
7,685 
67 
Tangible shareholders' equity attributable to ordinary shareholders of the parent
46,578 
45,637 
941 
       
 
m
m
m
Total number of shares in issue
16,390 
16,113 
277 
       
 
p
p
p
Net asset value per share
331 
331 
- 
Net tangible asset value per share
284 
283 
1 
 
 
Net asset value per share of 331p and net tangible asset value per share of 284p were stable as an increase in equity was offset by an increase in shares issued.
 
The £1.0bn increase in tangible shareholders' equity attributable to ordinary shareholders to £46.6bn was due to:
 
·      Share capital and share premium increased £0.7bn due to the issuance of shares under employee share schemes
 
 
·      The available for sale reserve increased by £0.2bn largely due to gains of £1.2bn from changes in the fair value of government bonds offset  by 0.9bn of losses on the related fair value hedging instruments
 
 
·      The cash flow hedging reserve increased £0.3bn reflecting increases in the fair value of interest rate swaps held for hedging purposes
 
 
·      The currency translation reserve reduced by £0.3bn largely due to the strengthening of GBP against USD, EUR, and ZAR
 
 
·      Retained earnings increased by £0.1bn principally due to profits during the quarter of £1.0bn offset by dividends paid of £0.6bn

 
Appendix V - Capital
 
CRD IV Capital
 
The new capital requirements regulation and capital requirements directive implemented Basel 3 within the EU (collectively known as CRD IV) on 1 January 2014.  This makes the PRA transitional capital ratios the legally binding capital metrics for Barclays going forward. However, rules and guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.
 
Capital Ratios  
As at
As at
31.03.14
31.12.13
 
 
Fully Loaded Common Equity Tier 1  
9.6%
9.3%
PRA Transitional Common Equity Tier 11 
9.6%
9.2%
PRA Transitional Tier 1
11.9%
11.5%
PRA Transitional Total Capital
15.4%
15.3%
   
    
Capital Resources  
£m
£m
Shareholders' equity (excluding non controlling interests) per the balance sheet
 56,393 
55,385 
 - Less: Other equity instruments (recognised as AT1 capital)
(2,063)
(2,063)
Adjustment to retained earnings for foreseeable dividends
(411)
(640)
     
Minority interests (amount allowed in consolidated CET1)
1,178 
1,238 
     
Other regulatory adjustments and deductions:
    
Additional value adjustments
(2,550)
(2,479)
Goodwill and intangible assets2 
(7,692)
(7,618)
Deferred tax assets that rely on future profitability excluding temporary differences
(1,123)
(1,045)
Fair value reserves related to gains or losses on cash flow hedges2 
(555)
(270)
Negative amounts resulting from the calculation of expected loss amounts
(2,070)
(2,106)
Gains or losses on liabilities at fair value resulting from own credit2 
512 
600 
Other regulatory adjustments
(170)
(119)
Direct and indirect holdings by an institution of own CET1 instruments
(37)
(496)
Fully loaded Common Equity Tier 1 capital  
41,412 
40,387 
Regulatory adjustments relating to unrealised gains2 
(395)
(180)
PRA Transitional Common Equity Tier 1 capital  
41,017 
40,207 
   
    
Additional Tier 1 (AT1) capital  
    
Capital instruments and related share premium accounts
2,063 
2,063 
Qualifying AT1 capital (including minority interests) issued by subsidiaries  
9,752 
9,726 
Less instruments issued by subsidiaries subject to phase out
(1,847)
(1,849)
Other regulatory adjustments and deductions
(15)
- 
Transitional Additional Tier 1 capital
9,953 
9,940 
PRA Transitional Tier 1 capital
50,970 
50,147 
   
    
Tier 2 (T2) capital
    
Qualifying T2 capital (including minority interests) issued by subsidiaries
15,780 
16,834 
Less instruments issued by subsidiaries subject to phase out
(440)
(522)
Other regulatory adjustments and deductions
(4)
(12)
PRA Transitional Total regulatory capital
66,306 
66,447 
 
 
·      As at 31 March 2014, Barclays' fully loaded Tier 1 capital was £43,741m, and the fully loaded Tier 1 ratio was 10.2%.  Fully loaded total regulatory capital was £62,217m and the fully loaded total capital ratio was 14.5%.  The fully-
        loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV 
 
 
·      The PRA transitional total capital is based on guidance provided in the December 2013 publication of PS 7/133, reflecting the minimum Capital Requirements Regulation (CRR) transitional path for the grandfathering of existing
        capital instruments within certain limits 
 
 
 
1          The transitional CET1 ratio according to the FSA October 2012 transitional statement would be 11.7%.
2          The capital impacts of these items are net of tax.
3          PS 7/13 refers to PRA policy statement PS7/13 on strengthening capital standards published in December 2013.
 
Appendix V - Capital
 
Movement in fully loaded Common Equity Tier 1 (CET1) Capital
Three Months
Ended
31.03.14
£m
 
 
Opening Common Equity Tier 1 capital
40,387 
   
Profit for the period
1,014 
Movement in own credit1 
(88)
Movements in dividends
(373) 
Retained regulatory capital generated from earnings
553 
   
Movement in reserves - net impact of share awards
208 
Movement in available for sale reserves
224 
Movement in currency translation reserves
(286)
Movement in retirement benefits
173 
Other reserves movements
(9)
Movement in other qualifying reserves
310 
   
Movement in regulatory adjustments and deductions:
  
Minority interests
(60)
Additional value adjustments
(71)
Goodwill and intangible assets1 
(74)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences
(78)
Negative amounts resulting from the calculation of expected loss amounts
36 
Direct and indirect holdings by an institution of own CET1 instruments
459 
Other regulatory adjustments
(51)
Closing Common Equity Tier 1 capital
41,412 
 
·      The fully loaded Common Equity Tier 1 ratio increased to 9.6% (2013: 9.3%) reflecting an increase in Common Equity Tier 1 capital of £1.0bn to £41.4bn
 
·      Barclays generated £1.0bn capital from profits in the period.  After adjusting for own credit and regulatory foreseeable dividends, retained regulatory capital generated from earnings increased Common Equity Tier 1 capital by
        £0.6bn.  Other material movements in Common Equity Tier 1 were:
 
-    £0.5bn decrease in the deduction for holdings of own Common Equity Tier 1 instruments following further management actions
 
-    £0.3bn reduction due to currency movements, primarily due to strengthening of GBP against EUR, USD and ZAR
 
-    £0.2bn increase due to gains in the available for sale reserve
 
-    £0.2bn increase in the pension reserve following actuarial remeasurements on the UK Retirement Fund. The movement was largely driven by a reduction in the UK inflation rate
 
·      Transitional total capital decreased by £0.1bn to £66.3bn on a transitional basis due to the increase in fully loaded CET1 largely being offset by the removal of gains in the available for sale reserves in CET1 and a Tier 2
        redemption of dated subordinated liabilities
 
 
1        The capital impacts of these items are net of tax.
 
 
Appendix V - Capital
 
           
Movement in CRD IV RWAs
Credit
Counterparty
Market
Operational
Total
 
Risk
Credit Risk
Risk
Risk
RWAs
 
£bn
£bn
£bn
£bn
£bn
As at 1 January 2014
253.1  
59.1  
69.1  
54.3  
435.6  
Book size
4.9  
(9.2)
1.3  
- 
(3.0)
Acquisition and disposals
(1.1)
- 
- 
- 
(1.1)
Book quality
(2.0)
(0.8)
1.2 
- 
(1.6)
Model updates
6.1 
3.5
(0.2)
2.4 
11.8 
Methodology and policy
(9.1)
0.8 
(3.1)
- 
(11.4)
Foreign exchange movements
(0.7)
- 
- 
- 
(0.7)
Other
(2.5)
2.3 
- 
- 
(0.2)
As at 31 March 2014
248.7 
55.7 
68.3 
56.7 
429.4 
 
 
RWAs decreased by £6.2bn to £429.4bn, driven by:
 
 
·      Book size decreased RWAs by £3.0bn, primarily driven by risk reductions in the trading book, offset by balance sheet growth in UK RBB and Corporate Banking
 
·      Acquisitions and disposals decreased RWAs by £1.1bn, primarily driven by Exit Quadrant assets
 
·      Book quality improved, resulting in a RWA reduction of £1.6bn, primarily driven by a change in risk profile within the Investment Bank
 
·      Model updates increased RWAs by £11.8bn, driven by a revision of probability of default metrics for wholesale portfolios, including certain Exit Quadrant assets, and the annual operational risk refresh
 
·      Methodology and policy changes decreased RWAs by £11.4bn, primarily driven by changes to the treatment of high quality liquidity assets and refinements in approach relating to the trading book
 
·      Foreign exchange movements decreased RWAs by £0.7bn, primarily driven by the appreciation of GBP against EUR, USD and ZAR
 
 
Leverage ratio requirements
 
·      CRD IV introduces a non-risk based leverage ratio that is intended to act as a supplementary back stop to risk based capital measures. Under CRD IV, banks are required to report their leverage ratio for supervisory review
        purposes from 2014 and, from 2015, to publish their leverage ratios in Pillar 3 disclosures, with the expectation that a binding Pillar I requirement will be introduced across the EU from 2018
 
·      Barclays has disclosed an estimated leverage ratio based on current understanding of the requirements and guidance of CRD IV as currently published which is subject to further change as the rules are finalised and fully
        implemented
 
·      The PRA has communicated its expectation that Barclays meets a 3% estimated PRA adjusted leverage ratio by June 2014. As at 31 March 2014, Barclays exceeded the PRA's expected leverage ratio and expects to maintain this
        going forward
 
 
 
Appendix VI - Leverage
 
 
Estimated CRD IV Leverage
      
 
IFRS
Leverage  
Leverage  
 
Balance Sheet
Exposure
Exposure
 
As at 31.03.14
As at 31.03.14
As at 31.12.131 
Leverage Exposure
£bn
£bn
£bn
       
Derivatives
      
IFRS derivative financial instruments
 333 
 333 
 355 
Additional netting adjustments for derivatives
  
(264)
(285)
Potential Future Exposure on derivatives
  
 213 
 256 
Total derivatives
  
 282 
 326 
       
Securities Financing Transactions (SFTs)
      
Reverse repurchase agreements and other similar secured lending
187 
187 
187 
Remove IFRS reverse repurchase agreements and other similar secured lending
  
(187)
(187)
Add leverage exposure measures for SFTs
  
72 
92 
Total Securities Financing Transactions
  
 72 
 92 
       
Other assets and adjustments
      
Loans and advances and other assets
842 
842 
804 
Undrawn commitments
  
176 
179 
Regulatory deductions and other adjustments
  
(30)
(22)
Total other assets and adjustments
  
 988 
 961 
       
Total exposure
 1,362 
 1,342 
 1,379 
PRA adjustment to CRD IV leverage exposure
  
(16)
(14)
PRA adjusted leverage exposure
  
 1,326 
 1,365 
       
       
   
Leverage Ratio
Leverage Ratio
   
As at 31.03.14
As at 31.12.13
       
CET1 capital
  
 41.4 
40.4 
Additional Tier 1 capital
  
 2.3 
2.3 
Tier 1 capital
  
 43.7 
42.7 
PRA deductions to CET1 capital
  
(2.2)
(2.2)
PRA adjusted Tier 1 capital
  
 41.5 
40.5 
       
Fully loaded CRD IV leverage ratio
  
3.3%
3.1%
PRA leverage ratio
  
3.1%
3.0%
 
·      The estimated PRA leverage exposure decreased £39bn to £1,326bn, primarily driven by:
 
 
-     £17bn reduction in derivative PFE as a result of trade compression and tear ups
 
 
-     £20bn reduction in the leverage exposure measure for SFTs primarily driven by collateral and netting optimisations
 
 
-     £26bn reduction in derivative PFE as a result of changes to the basis of calculation, principally relating to sold options and mark-to-market resets, reflecting our latest understanding on the application of the CRR rules
 
 
-     Partially offset by a £33bn increase in settlement balances since the year end
 
 
·      The leverage exposure calculation reflects Barclays' current understanding of the regulatory requirements and guidance, and their application in the industry. A number of items, including the changes to the basis of the PFE calculation applied in Q114, have been submitted to the EBA for clarification
 
 
1        The balance sheet as at 31 December 2013 has been revised to adopt the offsetting amendments to IAS32, Financial Instruments.
 
 
Appendix VII - Credit Risk
 
Analysis of Loans and Advances and Impairment
    
 
 
As at 31.03.14
Gross
L&A
Impairment Allowance
L&A Net of Impairment
Credit
Risk Loans
CRLs % of Gross L&A
Loan Impairment Charges1 
Loan Loss Rates
 
£m
£m
£m
£m
%
£m
bps
UK RBB
139,395 
1,314 
138,081 
2,687 
 1.9 
80 
23 
Europe RBB
37,028 
685 
36,343 
1,903 
 5.1 
49 
54 
Africa RBB
19,203 
487 
18,716 
984 
 5.1 
45 
95 
Barclaycard
37,850 
1,934 
35,916 
2,050 
 5.4 
311 
333 
Corporate Banking
17 
3 
14 
3 
 17.6 
- 
- 
Wealth and Investment Management
2,851 
18 
2,833 
43 
 1.5 
- 
- 
Total retail loans and advances at amortised cost
236,344 
4,441 
231,903 
7,670 
 3.2 
485 
83 
               
Investment Bank2 
179,616 
430 
179,186 
787 
 0.4 
(25)
(6)
Corporate Banking
69,029 
1,842 
67,187 
3,475 
 5.0 
78 
46 
- UK  
53,197 
377 
52,820 
1,152 
 2.2 
36 
27 
- Europe  
6,015 
1,346 
4,669 
2,158 
 35.9 
41 
276 
- Rest of World  
9,817 
119 
9,698 
165 
 1.7 
1 
4 
Wealth and Investment Management
21,240 
188 
21,052 
752 
 3.5 
17 
32 
Africa RBB
5,773 
215 
5,558 
523 
 9.1 
14 
98 
Head Office and Other Operations
1,329 
- 
1,329 
- 
- 
- 
- 
Total wholesale loans and advances at amortised cost
276,987 
2,675 
274,312 
5,537 
 2.0 
84 
12 
Loans and advances at amortised cost
513,331 
7,116 
506,215 
13,207 
 2.6 
569 
45 
               
Traded Loans
2,966 
n/a
2,966 
        
Loans and advances designated at fair value
18,896 
n/a
18,896 
        
Loans and advances held at fair value
21,862 
n/a
21,862 
        
               
Total loans and advances
535,193 
7,116 
528,077 
        
               
As at 31.12.13
              
UK RBB
138,056 
1,308 
136,748 
2,664 
 1.9 
347 
25 
Europe RBB
38,016 
660 
37,356 
1,801 
4.7 
287 
75 
Africa RBB
19,363 
491 
18,872 
1,026 
5.3 
259 
134 
Barclaycard
37,468 
1,856 
35,612 
1,992 
5.3 
1,264 
337 
Corporate Banking
488 
39 
449 
45 
9.2 
(5)
(102)
Wealth and Investment Management
2,828 
18 
2,810 
39 
1.4 
9 
32 
Total retail loans and advances at amortised cost
236,219 
4,372 
231,847 
7,567 
3.2 
2,161 
91 
               
Investment Bank2 
147,025 
468 
146,557 
753 
0.5 
209 
14 
Corporate Banking
66,246 
1,991 
64,255 
3,694 
5.6 
517 
78 
- UK  
51,805 
369 
51,436 
1,175 
 2.3 
173 
33 
- Europe  
6,327 
1,494 
4,833 
2,343 
 37.0 
321 
507 
- Rest of World  
8,114 
128 
7,986 
176 
 2.2 
23 
28 
Wealth and Investment Management
20,995 
192 
20,803 
704 
3.4 
112 
53 
Africa RBB
5,875 
235 
5,640 
580 
9.9 
65 
111 
Head Office and Other Operations
1,875 
-
1,875 
-
-
(2)
(11)
Total wholesale loans and advances at amortised cost
242,016 
2,886 
239,130 
5,731 
2.4 
901 
37 
Loans and advances at amortised cost
478,235 
7,258 
470,977 
13,298 
2.8 
3,062 
64 
               
Traded Loans
1,647 
n/a
1,647 
        
Loans and advances designated at fair value
18,695 
n/a
18,695 
        
Loans and advances held at fair value
20,342 
n/a
20,342 
        
               
Total loans and advances
498,577 
7,258 
491,319 
        
 
 
 
 
1        Excludes impairment charges on available for sale investments and reverse repurchase agreements.
 
2       Investment Bank gross loans and advances include cash collateral and settlement balances of £125,916m as at 31 March 2014 and £94,018m as at 31 December 2013. Excluding these balances CRLs as a proportion of
         gross loans and advances were 1.5% and 1.4% respectively. 2013 amounts in the Investment Bank have been revised to adopt the implementation of IAS 32, Financial Instruments: Presentation. Gross loans and advances at
         amortised cost have increased by £2,713m with no impact on Credit Risk Loans.
 
 
Appendix VIII - Other Information
 
Other Information
  
   
Results Timetable1 
Date
Ex-dividend date
14 May 2014
Dividend Record date
16 May 2014
Scrip reference share price set and made available to shareholders2 
21 May 2014
Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or Revocation Forms (as applicable)
2 June 2014
Dividend Payment date/first day of dealing in New Shares
23 June 2014
2014 Interim Results Announcement
30 July 2014
   
 
 
For qualifying US and Canadian resident ADR holders, the first interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the first interim dividend on 23 June 2014 to ADR holders on the record at close of business on 16 May 2014.
 
 
 
 
Three Months Ended
Three Months Ended
Three Months Ended
% Change
% Change
Exchange Rates3 
31.03.14
31.12.13
31.03.13
31.12.134 
31.03.134 
Period end - USD/GBP
1.67 
1.65 
1.52 
1%
10%
Average - USD/GBP
1.66 
1.62 
1.55 
2%
7%
Period end - EUR/GBP
1.21 
1.20 
1.18 
1%
3%
Average - EUR/GBP
1.21 
1.19 
1.17 
2%
3%
Period end - ZAR/GBP
17.54 
17.37 
13.96 
1%
26%
Average - ZAR/GBP
17.97 
16.43 
13.87 
9%
30%
           
Share Price Data
      
31.03.14
31.03.13
Barclays PLC (p)
      
233.40 
291.15 
Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)
      
149.00 
155.00 
           
For further information please contact
          
           
 
 
Investor Relations
Media Relations
    
 
 
Charlie Rozes +44 (0) 20 7116 5752
Giles Croot +44 (0) 20 7116 6132
 
More information on Barclays can be found on our website: www.Barclays.com
 
           
Registered Office
          
 
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839
 
           
 
Registrar  
          
 
The Registrar to Barclays, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.
 
Tel: 0871 384 205545 from the UK or +44 121 415 7004 from overseas.
 
 
 
 
1      Note that these announcement dates are provisional and subject to change. Any changes to the Scrip Dividend Programme dates will be made available at Barclays.com/dividends.
 
2      Scrip reference share price being the average of the closing middle market quotations for ordinary shares, derived from the London Stock Exchange Daily Official List, for the five consecutive business days from Wednesday
        14 May 2014 (June 2014 ex-dividend date) to Tuesday 20 May 2014 (inclusive).
 
3      The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into GBP for accounting    purposes. 
 
4      The change is the impact to GBP reported information.
 
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