Edgar Filing: BARCLAYS PLC

6-K

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

April 26, 2018

Barclays PLC

Q1 2018 Results Announcement

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 is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENTS ON FORM S-8 (NO. 333-153723, 333-167232, 333-173899, 333-183110, 333-195098 AND 333-216361) AND FORM F-3 (333-223156) OF BARCLAYS PLC AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.


Barclays PLC		1

The Report comprises the following:


Exhibit 99.1		Results of Barclays PLC Group as of, and for the three months ended, 31 March 2018.

Exhibit 99.2		A table setting forth the issued share capital of Barclays PLC and the Barclays PLC Group’s total shareholders’ equity, indebtedness and contingent liabilities as at 31 December 2017, the most recent reported statement of position, and updated for any significant or material items since that reporting date.


Barclays PLC		2

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 authorised.


		BARCLAYS PLC

		(Registrant)

Date: April 26, 2018	By:	/s/ Garth Wright
		Name: Garth Wright

		Title: Assistant Secretary


Barclays PLC		3

Exhibit 99.1

Barclays PLC

This exhibit includes portions from the previously published Results Announcement of Barclays PLC relating to the three months ended 31 March 2018, as amended in part to comply with the requirements of Regulation G and Item 10(e) of Regulation S-K promulgated by the US Securities and Exchange Commission (SEC), including the reconciliation of certain financial information to comparable measures prepared in accordance with International Financial Reporting Standards (IFRS). The purpose of this document is to provide such additional disclosure as required by Regulation G and Regulation S-K item 10(e), to delete certain information not in compliance with SEC regulations and to include reconciliations of certain non-IFRS figures to the most directly equivalent IFRS figures for the periods presented. This document does not update or otherwise supplement the information contained in the previously published Results Announcement. Any reference to a website in this document is made for informational purposes only, and information found at such websites is not incorporated by reference into this document.

An audit opinion has not been rendered in respect of this document.


Barclays PLC		4

Notes

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2018 to the corresponding three months of 2017 and balance sheet analysis as at 31 March 2018 with comparatives relating to 31 December 2017 and 31 March 2017. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary that can be accessed at home.barclays/results.

The information in this announcement, which was approved by the Board of Directors on 25 April 2018, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2017, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

Non-IFRS performance measures

Barclays’ management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays’ management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to pages 33-41 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

Key non-IFRS measures included in this document, and the most directly comparable IFRS measures, are:

– Attributable profit excluding litigation and conduct represents attributable profit excluding litigation and conduct charges. The comparable IFRS measure is attributable profit. A reconciliation to IFRS is provided on pages 35-37;

– Average allocated equity represents the average shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is average equity. A reconciliation is provided on page 39;

– Average allocated tangible equity is calculated as the average of the previous month’s period end allocated tangible equity and the current month’s period end allocated tangible equity. The average allocated tangible equity for the quarter/year is the average of the monthly averages within that quarter/year. Period end allocated tangible equity is calculated as 13.0% (2017: 12.0%) of weighted assets for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. The comparable IFRS measure is average equity. A reconciliation is provided on page 39;

– Average tangible shareholders’ equity is calculated as the average of the previous month’s period end tangible equity and the current month’s period end tangible equity. Period end tangible shareholders’ equity excludes goodwill and intangible assets. The average tangible shareholders’ equity for the quarter/year is the average of the monthly averages within that quarter/year. The comparable IFRS measure is average equity. A reconciliation is provided on page 39;

– Basic earnings per share excluding litigation and conduct is calculated by dividing statutory profit after tax attributable to ordinary shareholders excluding litigation and conduct charges, including an adjustment for the tax credit in reserves in respect of other equity instruments, by the basic weighted average number of shares. The comparable IFRS measure is basic earnings per share. A reconciliation to IFRS is provided on page 35;

– Cost: income ratio excluding litigation and conduct represents operating expenses excluding litigation and conduct charges, divided by total income. The comparable IFRS measure is cost: income ratio. A reconciliation to IFRS is provided on pages 35-37;

– Operating expenses excluding litigation and conduct represents operating expenses excluding litigation and conduct charges. The comparable IFRS measure is operating expenses. A reconciliation to IFRS is provided on pages 35-37;

– Profit before tax excluding litigation and conduct represents profit before tax excluding litigation and conduct charges. The comparable IFRS measure is profit before tax. A reconciliation to IFRS is provided on page 35-37;

– Return on average allocated equity represents the return on shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is return on equity. A reconciliation is provided on page 40;

– Return on average allocated tangible equity is calculated as the annualised statutory profit after tax attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average allocated tangible equity. The comparable IFRS measure is return on equity. A reconciliation is provided on page 40;


Barclays PLC		5

Notes

– Return on average allocated tangible equity excluding litigation and conduct is calculated as the annualised statutory profit after tax attributable to ordinary shareholders excluding litigation and conduct charges, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average allocated tangible equity. The comparable IFRS measure is return on equity. A reconciliation is provided on page 41;

– Return on average tangible shareholders’ equity is calculated as the annualised statutory profit after tax attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average tangible shareholders’ equity. The comparable IFRS measure is return on equity. A reconciliation is provided on page 40; and

– Tangible net asset value per share is calculated by dividing shareholders’ equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 38.

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. 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 or guidance regarding or relating to the Group’s future financial position, income growth, assets, impairment charges, provisions, business strategy, structural reform, capital, leverage and other regulatory ratios, payment of dividends (including dividend payout ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets and the impact of any regulatory deconsolidation resulting from the sell down of the Group’s interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers, IFRS 9 impacts 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 including the implementation of IFRS 9, 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, US, 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 any entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implications of the exercise by the United Kingdom of Article 50 of the Treaty of Lisbon and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union 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, expectations and guidance set forth in the Group’s forward-looking statements. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in our filings with the SEC (including, without limitation, our annual report on form 20-F for the fiscal year ended 31 December 2017), which are available on the SEC’s website at www.sec.gov.

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Barclays PLC		6

Performance Highlights


Barclays Group results
for the three months ended	31.03.18		31.03.17
		£m		£m	% Change
Total income		5,358		5,823	(8)
Credit impairment charges and other provisions		(288)		(527)	45
Net operating income		5,070		5,296	(4)
Operating expenses excluding litigation and conduct		(3,364)		(3,591)	6
Litigation and conduct¹		(1,961)		(28)
Operating expenses		(5,325)		(3,619)	(47)
Other net income		19		5
(Loss)/profit before tax		(236)		1,682
Tax charge		(304)		(473)	36
(Loss)/profit after tax in respect of continuing operations		(540)		1,209
Loss after tax in respect of discontinued operation		-		(658)
Non-controlling interests in respect of continuing operations		(53)		(79)	33
Non-controlling interests in respect of discontinued operation		-		(143)
Other equity instrument holders²		(171)		(139)	(23)
Attributable (loss)/profit		(764)		190

Performance measures
Return on average shareholders’ equity¹		(5.5%)		1.6%
Return on average tangible shareholders’ equity²		(6.5%)		1.8%
Average shareholders’ equity (£bn)		52.0		58.5
Average tangible shareholders’ equity (£bn)		44.2		49.4
Cost: income ratio		99%		62%
Loan loss rate (bps)		36		47
Basic (loss)/earnings per share²		(4.2p)		1.3p
Basic (loss)/earnings per share in respect of continuing operations²		(4.2p)		6.1p

Performance measures excluding litigation and conduct¹
Profit before tax		1,725		1,710	1
Attributable profit		1,166		209
Return on average shareholders’ equity¹		9.3%		1.7%
Return on average tangible shareholders’ equity²		11.0%		2.0%
Cost: income ratio		63%		62%
Basic earnings per share²		7.1p		1.5p

Balance sheet and capital management³		As at 31.03.18		As at 31.12.17	As at 31.03.17
Net asset value per share		296p		322p	341p
Tangible net asset value per share		251p		276p	292p
Common equity tier 1 ratio		12.7%		13.3%	12.5%
Common equity tier 1 capital (£bn)		40.2		41.6	44.9
Risk weighted assets (£bn)		317.9		313.0	360.9
Average UK leverage ratio⁴		4.6%		4.9%	4.6%
Average tier 1 capital⁴ (£bn)		50.0		51.2	52.3
Average UK leverage exposure⁴ (£bn)		1,090		1,045	1,130

Funding and liquidity
Group liquidity pool(£bn)		207		220	185
CRD IV liquidity coverage ratio		147%		154%	140%
Loan: deposit ratio⁵		84%		81%	85%

1	Refer to pages 33-37 for further information and calculations of performance measures excluding litigation and conduct.

The profit after tax attributable to other equity instrument holders of £171m (Q117: £139m) is offset by a tax credit recorded in reserves of £46m (Q117: £38m). The net amount of £125m (Q117: £101m), along with non-controlling interests, is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders’ equity.

3	Capital, RWAs and leverage measures are calculated applying the IFRS 9 transitional arrangements under Article 473a of the CRR. For more information refer to page 19 and the Barclays PLC Pillar 3 Report Q1 2018, located at home.barclays/results.

The average UK leverage ratio uses capital based on the last day of each month in the quarter and an exposure measure based on each day in the quarter. The comparatives for the average UK leverage exposure were calculated based on the last day of each month in the quarter. Both exclude qualifying central bank claims from the leverage exposure. The UK leverage ratio was 4.8% (December 2017: 5.1%).

5	Loan: deposit ratio is calculated as loans and advances at amortised cost divided by deposits at amortised cost. Comparatives have been restated based on this approach.


Barclays PLC		7

Group Performance Review

Group performance

●

RoE was negative 5.5% (Q117: positive 1.6%) and loss per share was 4.2p (Q117: earnings per share of 1.3p)

●

RoTE was 11.0% (Q117: 2.0%) and earnings per share was 7.1p (Q117: 1.5p), excluding litigation and conduct

●

Loss before tax of £236m (Q117: profit of £1,682m) included litigation and conduct charges of £1,961m (Q117: £28m), principally reflecting the £1.4bn settlement relating to RMBS and additional charges of £400m relating to PPI. Excluding these items, profit before tax increased 1% to £1,725m driven by a 45% decrease in credit impairment charges and a 6% reduction in operating expenses, partially offset by an 8% reduction in income. The 12% depreciation of average USD against GBP adversely impacted profits and income, and positively affected credit impairment charges and operating expenses

●

Total income decreased to £5,358m (Q117: £5,823m) driven by a £330m decrease in Barclays International, primarily due to the non-recurrence of a £192m gain relating to an asset sale in US Cards and a £74m valuation gain on Barclays’ preference shares in Visa Inc. in Q117, and a £156m decrease in Head Office

●

Credit impairment charges decreased 45% to £288m primarily reflecting single name recoveries in wholesale and the improved macroeconomic forecasts in the US. Impairment declined 73% in Barclays International and increased 13% in Barclays UK. The Group loan loss rate decreased 11bps to 36bps

●

The cost: income ratio was 99% (Q117: 62%)

●

Operating expenses of £5,325m (Q117: £3,619m) included litigation and conduct charges of £1,961m (Q117: £28m), excluding which, Group operating expenses decreased to £3,364m. This was driven by a 6% reduction in Barclays International and the non-recurrence of costs associated with the former Non-Core division. The cost: income ratio, excluding litigation and conduct, was 63% (Q117: 62%)

Barclays UK

●

RoE was negative 0.8% (Q117: positive 14.1%)

●

RoTE declined to negative 1.1% (Q117: positive 21.6%) due to additional charges of £400m (Q117: £nil) relating to PPI. Excluding litigation and conduct charges, RoTE was 15.7% (Q117: 21.5%) as profit before tax decreased 17% to £581m

●

Total income decreased 3% to £1,788m reflecting the non-recurrence of a valuation gain on Barclays’ preference shares in Visa Inc. in Q117 and customer remediation provisions

–

Personal Banking income decreased 6% to £889m driven by the non-recurrence of the Visa gain and a customer remediation provision

–

Barclaycard Consumer UK income increased 6% to £527m

–

Wealth, Entrepreneurs & Business Banking (WEBB) income decreased 7% to £372m driven by a customer remediation provision

●

Net interest margin decreased 42bps to 3.27% reflecting the integration of the Education, Social Housing and Local Authority (ESHLA) portfolio

●

Credit impairment charges increased 13% to £201m driven by increased impairment in Personal Banking and a single name case in WEBB, however 30 and 90 day arrears rates in UK cards remained flat at 2.0% (Q117: 2.0%) and 0.9% (Q117: 0.9%), respectively

●

Operating expenses increased to £1,416m, resulting in a cost: income ratio of 79% (Q117: 52%)

●

Operating expenses excluding litigation and conduct increased to £1,005m due to continued investment in digitising the bank, resulting in a cost: income ratio of 56% (Q117: 52%)

●

RWAs increased to £72.5bn (December 2017: £70.9bn) predominantly as a result of IFRS 9 implementation and asset transfers in preparation for structural reform


Barclays PLC		8

Group Performance Review

Barclays International

●

RoE was 12.8% (Q117: 11.3%). CIB RoE was 12.9% (Q117: 7.8%) and Consumer, Cards and Payments RoE was 12.6% (Q117: 26.6%)

●

Profit before tax increased 4% to £1,413m resulting in a RoTE of 13.4% (Q117: 12.5%), reflecting double digit returns in both CIB and Consumer, Cards and Payments of 13.0% (Q117: 8.2%) and 15.6% (Q117: 36.4%), respectively

●

The 12% depreciation of average USD against GBP adversely impacted profits and income, and positively affected credit impairment charges and operating expenses

●

Total income decreased 8% to £3,808m

–

CIB income increased 1% to £2,799m as Markets income increased 8% to £1,459m, partially offset by a decrease in Banking income of 4% to £1,337m

–

FICC income decreased 2% to £869m as a strong performance in foreign exchange was offset by a decline in credit

–

Equities income increased 28% to £590m reflecting an improved performance in derivatives as a result of increased client activity and market volatility, and a strong performance in equity financing

–

Banking fee income decreased 6% to £683m from a strong Q117. Global fee share increased across all products compared to Q417 and FY17

–

Corporate lending declined 11% to £240m driven by the reallocation of RWAs within CIB and lower lending balances due to the realignment of clients between Barclays UK and Barclays International in preparation for structural reform, partially offset by lower losses on fair value hedges

–

Transaction banking increased 4% to £414m driven by higher average deposit balances

–

Consumer, Cards and Payments income decreased 26% to £1,009m driven by the non-recurrence of a £192m gain relating to an asset sale in US Cards and a £74m valuation gain on Barclays’ preference shares in Visa Inc. in Q117. Excluding these items, income declined 7% reflecting the impact of repositioning the US Cards portfolio towards a lower risk mix, partially offset by underlying growth in US Cards

●

Credit impairment charges decreased 73% to £93m

–

CIB credit impairment charges decreased to a release of £159m (Q117: charge of £51m) primarily due to write-backs and updated macroeconomic forecasts

–

Consumer, Cards and Payments credit impairment charges decreased 15% to £252m due to the impact of repositioning the US Cards portfolio towards a lower risk mix and the improved macroeconomic forecasts in the US, partially offset by increased delinquency rates in US Cards. 30 and 90 day arrears rates within US Cards increased to 2.6% (Q117: 2.3%) and 1.4% (Q117: 1.2%), respectively

●

Operating expenses decreased 5% to £2,315m

–

CIB operating expenses decreased 8% to £1,786m driven by the reduction of restructuring and structural reform costs, and the reduced impact of the change in compensation awards introduced in Q416

–

Consumer, Cards and Payments operating expenses increased 4% to £529m reflecting continued growth and investment

●

RWAs increased to £214.2bn (December 2017: £210.3bn) due to increased trading activity

Head Office

●

Loss before tax was £1,819m (Q117: £141m)

●

Total income reduced to an expense of £238m (Q117: expense of £82m) reflecting certain legacy capital instrument funding costs now charged to Head Office of £88m in Q118, hedge accounting and an increased net expense from treasury operations

●

Operating expenses increased to £1,594m (Q117: £59m) reflecting an increase in litigation and conduct charges, including the settlement relating to RMBS, and costs associated with former Non-Core assets and businesses which were integrated on 1 July 2017. Excluding litigation and conduct charges, operating expenses were £59m (Q117: £49m)

●

RWAs decreased to £31.2bn (December 2017: £31.8bn)


Barclays PLC		9

Group Performance Review

Group capital and leverage

●

The CET1 ratio decreased to 12.7% (December 2017: 13.3%) due to a decrease in CET1 capital of £1.3bn to £40.2bn and an increase in RWAs of £4.9bn to £317.9bn

–

Organic capital generation from profits of £1.3bn were more than offset by litigation and conduct charges, including £1.4bn from the settlement relating to RMBS and additional charges of £0.4bn relating to PPI

–

The implementation of IFRS 9 on 1 January 2018 resulted in a net increase in CET1 capital as the £2.2bn decrease in shareholders’ equity on initial adoption was more than offset by the application of transitional relief of £1.3bn and the removal of the £1.2bn excess of expected loss over impairment capital deduction

–

The increase in RWAs was principally due to business growth in investment banking businesses, offset by the depreciation of period end USD against GBP

●

The average UK leverage ratio decreased to 4.6% (December 2017: 4.9%) primarily driven by increased exposures due to securities financing transactions and trading portfolio assets trading activity, as well as the decrease in capital

●

Net asset value per share decreased to 296p (December 2017: 322p)

●

Tangible net asset value per share decreased to 251p (December 2017: 276p) primarily due to the impact of the implementation of IFRS 9, litigation and conduct charges in the quarter, and adverse movements across the currency translation and cash flow hedging reserves

Group funding and liquidity

●

The Group continued to maintain surpluses to its internal and regulatory requirements. The liquidity pool decreased to £207bn (December 2017: £220bn) driven largely by the deployment of funding to support business growth. The liquidity coverage ratio decreased to 147% (December 2017: 154%), equivalent to a surplus of £65bn (December 2017: £75bn) to the 100% requirement

●

Wholesale funding outstanding excluding repurchase agreements was £147bn (December 2017: £144bn). The Group issued £2.4bn equivalent of term senior unsecured debt from Barclays PLC and £2.1bn from Barclays Bank PLC (BBPLC). In the same period, £0.7bn of Barclays PLC senior unsecured debt and £2.2bn of BBPLC subordinated debt were either called or matured

Other matters

●

In Q118 Barclays reached a settlement with the US Department of Justice (DoJ) to resolve the civil complaint brought by the DoJ in December 2016 relating to Residential Mortgage-Backed Securities (RMBS) sold by Barclays between 2005 and 2007. Barclays has agreed to pay a civil monetary penalty of $2,000m (£1,420m), which was recognised in Q118

●

Additional charges of £400m (Q117: £nil) relating to PPI were recognised mainly as a result of continued higher complaints flow in Q118. The remaining PPI provision as at 31 March 2018 was £1.7bn (December 2017: £1.6bn) to cover claims through to the deadline of 29 August 2019. Management views its current PPI provision as appropriate, but will continue to closely monitor complaint trends and the associated provision adequacy

Structural reform

●

On 9 March 2018 Barclays was granted approval from the Prudential Regulation Authority (PRA) and the High Court of Justice of England and Wales to implement the “ring-fencing” of Barclays’ day-to-day banking services using a legal process called a Ring-Fencing Transfer Scheme (the “Scheme”) under Part VII of the Financial Services Markets Act 2000. Barclays implemented the Scheme and established BBUKPLC on 1 April 2018

IFRS 9 Financial Instruments

●

Barclays adopted IFRS 9 Financial Instruments from 1 January 2018, replacing IAS 39 Financial Instruments: Recognition and Measurement. As a result, shareholders’ equity decreased by £2.2bn post-tax, equating to a reduction in tangible net asset value of 13p per share as at 31 March 2018. Barclays elected to apply transitional arrangements, as outlined in Capital Requirements Regulation (CRR) Article 473a. For further detail, please refer to the Barclays PLC IFRS 9 Transition Note that can be found at home.barclays/results

●

IFRS 9 requires the recognition of impairment earlier in the lifecycle of a product having considered forward-looking information. As a result, measurement involves more complex judgement with impairment likely to be more volatile as the economic outlook changes. Management continues to closely monitor observed trends


Barclays PLC		10

Quarterly Results Summary

Barclays Group


	Q118		Q417		Q317		Q217¹		Q117¹		Q416¹		Q316¹		Q216¹
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Net interest income		2,188		2,272		2,475		2,579		2,519		2,523		2,796		2,530
Net fee, commission and other income		3,170		2,750		2,698		2,479		3,304		2,469		2,650		3,442
Total income		5,358		5,022		5,173		5,058		5,823		4,992		5,446		5,972
Credit impairment charges and other provisions		(288)		(573)		(709)		(527)		(527)		(653)		(789)		(488)
Net operating income		5,070		4,449		4,464		4,531		5,296		4,339		4,657		5,484
Operating expenses excluding UK bank levy and litigation and conduct		(3,364)		(3,621)		(3,274)		(3,398)		(3,591)		(3,812)		(3,581)		(3,425)
UK bank levy		-		(365)		-		-		-		(410)		-		-
Litigation and conduct²		(1,961)		(383)		(81)		(715)		(28)		(97)		(741)		(447)
Operating expenses		(5,325)		(4,369)		(3,355)		(4,113)		(3,619)		(4,319)		(4,322)		(3,872)
Other net income/(expenses)		19		13		(2)		241		5		310		502		(342)
(Loss)/profit before tax		(236)		93		1,107		659		1,682		330		837		1,270
Tax (charge)/credit		(304)		(1,138)		(324)		(305)		(473)		50		(328)		(467)
(Loss)/profit after tax in respect of continuing operations		(540)		(1,045)		783		354		1,209		380		509		803
(Loss)/profit after tax in respect of discontinued operation		-		-		-		(1,537)		(658)		71		209		145

Attributable to:
Ordinary equity holders of the parent		(764)		(1,294)		583		(1,401)		190		99		414		677
Other equity instrument holders		171		181		157		162		139		139		110		104
Non-controlling interests in respect of continuing operations		53		68		43		59		79		90		70		92
Non-controlling interests in respect of discontinued operation		-		-		-		(3)		143		123		124		75

Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Total assets		1,142.2		1,133.2		1,149.3		1,135.3		1,203.8		1,213.1		1,324.0		1,351.3
Risk weighted assets		317.9		313.0		324.3		327.4		360.9		365.6		373.4		366.3
Average UK leverage exposure		1,089.9		1,044.6		1,035.1		1,092.2		1,130.4		1,137.3		n/a		n/a

Performance measures
Return on average shareholders’ equity		(5.5%)		(8.9%)		4.4%		(9.4%)		1.6%		1.0%		3.1%		5.0%
Return on average tangible shareholders’ equity		(6.5%)		(10.3%)		5.1%		(11.0%)		1.8%		1.1%		3.6%		5.8%
Average shareholders’ equity (£bn)		52.0		55.9		56.6		57.5		58.5		58.0		58.2		56.9
Average tangible shareholders’ equity (£bn)		44.2		48.1		48.9		49.3		49.4		48.9		49.4		48.3
Cost: income ratio		99%		87%		65%		81%		62%		87%		79%		65%
Loan loss rate (bps)		36		56		66		49		47		58		66		41
Basic (loss)/earnings per share		(4.2p)		(7.3p)		3.7p		(8.0p)		1.3p		0.8p		2.6p		4.2p
Basic (loss)/earnings per share in respect of continuing operations		(4.2p)		(7.3p)		3.7p		1.0p		6.1p		1.1p		2.1p		3.8p

Performance measures excluding litigation and conduct²	£m		£m		£m		£m		£m		£m		£m		£m
Profit before tax		1,725		476		1,188		1,374		1,710		427		1,578		1,717
Attributable profit/(loss)		1,166		(943)		660		(698)		209		151		1,140		1,124
Return on average shareholders’ equity		9.3%		(6.4%)		5.0%		(4.5%)		1.7%		1.3%		8.0%		8.1%
Return on average tangible shareholders’ equity		11.0%		(7.4%)		5.7%		(5.3%)		2.0%		1.6%		9.5%		9.5%
Cost: income ratio		63%		79%		63%		67%		62%		85%		66%		57%
Basic earnings/(loss) per share		7.1p		(5.3p)		4.1p		(3.8p)		1.5p		1.1p		6.9p		6.8p

1	Results include Barclays Non-Core and the Africa Banking discontinued operation; refer to pages 31-32 for further detail.

2	Refer to pages 33-37 for further information and calculations of performance measures excluding litigation and conduct.


Barclays PLC		11

Quarterly Results Summary

Barclays UK


	Q118		Q417		Q317		Q217		Q117		Q416		Q316		Q216
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Net interest income		1,493		1,540		1,501		1,534		1,511		1,502		1,569		1,476
Net fee, commission and other income		295		330		351		286		330		326		374		467
Total income		1,788		1,870		1,852		1,820		1,841		1,828		1,943		1,943
Credit impairment charges and other provisions		(201)		(184)		(201)		(220)		(178)		(180)		(350)		(220)
Net operating income		1,587		1,686		1,651		1,600		1,663		1,648		1,593		1,723
Operating expenses excluding UK bank levy and litigation and conduct		(1,005)		(1,117)		(980)		(974)		(959)		(989)		(904)		(947)
UK bank levy		-		(59)		-		-		-		(48)		-		-
Litigation and conduct¹		(411)		(53)		(11)		(699)		4		(28)		(614)		(399)
Operating expenses		(1,416)		(1,229)		(991)		(1,673)		(955)		(1,065)		(1,518)		(1,346)
Other net (expenses)/income		(1)		(5)		1		(1)		-		-		-		(1)
Profit/(loss) before tax		170		452		661		(74)		708		583		75		376
Attributable (loss)/profit		(38)		245		423		(285)		470		383		(163)		141

Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances to customers at amortised cost		184.3		183.8		182.2		166.6		164.5		166.4		166.6		166.0
Total assets		235.2		237.4		230.4		203.4		203.0		209.6		209.1		204.6
Customer deposits at amortised cost		192.0		193.4		189.3		187.4		184.4		189.0		185.5		181.7
Loan: deposit ratio²		96%		95%		97%		89%		90%		89%		91%		92%
Risk weighted assets		72.5		70.9		70.0		66.1		66.3		67.5		67.4		67.1

Performance measures
Return on average allocated equity		(0.8%)		7.8%		12.3%		(8.2%)		14.1%		11.8%		(4.7%)		4.4%
Return on average allocated tangible equity		(1.1%)		10.7%		18.4%		(12.7%)		21.6%		18.2%		(7.1%)		6.6%
Average allocated equity (£bn)		13.4		13.1		14.0		13.5		13.6		13.2		13.3		13.5
Average allocated tangible equity (£bn)		9.8		9.6		9.4		8.7		8.9		8.6		8.7		9.0
Cost: income ratio		79%		66%		54%		92%		52%		58%		78%		69%
Loan loss rate (bps)		43		39		43		52		43		42		82		52
Net interest margin		3.27%		3.32%		3.28%		3.70%		3.69%		3.56%		3.72%		3.56%

Performance measures excluding litigation and conduct¹	£m		£m		£m		£m		£m		£m		£m		£m
Profit before tax		581		505		672		625		704		611		689		775
Attributable profit		373		282		431		406		467		380		464		551
Return on average allocated equity		11.5%		9.0%		12.6%		12.3%		14.0%		11.7%		14.2%		16.6%
Return on average allocated tangible equity		15.7%		12.3%		18.7%		19.1%		21.5%		18.0%		21.6%		24.9%
Cost: income ratio		56%		63%		53%		54%		52%		57%		47%		49%

1	Refer to pages 33-37 for further information and calculations of performance measures excluding litigation and conduct.

Loan: deposit ratio is calculated as loans and advances to customers at amortised cost and loans and advances to banks at amortised cost of £0.4bn (Q417: £0.5bn), divided by customer deposits at amortised cost and deposits from banks at amortised cost of £nil (Q417: £nil). Comparatives have been restated to include loans and advances to banks at amortised cost and deposits from banks at amortised cost.


Barclays PLC		12

Quarterly Results by Business

Analysis of Barclays UK


	Q118		Q417		Q317		Q217		Q117		Q416		Q316		Q216
Analysis of total income	£m		£m		£m		£m		£m		£m		£m		£m
Personal Banking		889		1,020		926		933		944		934		970		1,068
Barclaycard Consumer UK		527		445		539		495		498		507		561		463
Wealth, Entrepreneurs & Business Banking		372		405		387		392		399		387		412		412
Total income		1,788		1,870		1,852		1,820		1,841		1,828		1,943		1,943

Analysis of credit impairment (charges)/releases and other provisions
Personal Banking		(76)		(56)		(60)		(56)		(50)		(50)		(47)		(44)
Barclaycard Consumer UK		(113)		(124)		(145)		(149)		(123)		(118)		(291)		(169)
Wealth, Entrepreneurs & Business Banking		(12)		(4)		4		(15)		(5)		(12)		(12)		(7)
Total credit impairment charges and other provisions		(201)		(184)		(201)		(220)		(178)		(180)		(350)		(220)

Analysis of loans and advances to customers at amortised cost	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Personal Banking		140.5		139.8		138.4		136.5		134.4		135.0		135.3		134.7
Barclaycard Consumer UK		15.2		16.4		16.3		16.2		16.1		16.5		16.2		16.2
Wealth, Entrepreneurs & Business Banking		28.6		27.6		27.5		13.9		14.0		14.9		15.1		15.1
Total loans and advances to customers at amortised cost		184.3		183.8		182.2		166.6		164.5		166.4		166.6		166.0

Analysis of customer deposits at amortised cost
Personal Banking		141.4		141.1		140.1		138.5		137.3		139.3		137.2		134.8
Barclaycard Consumer UK		-		-		-		-		-		-		-		-
Wealth, Entrepreneurs & Business Banking		50.6		52.3		49.2		48.9		47.1		49.7		48.3		46.9
Total customer deposits at amortised cost		192.0		193.4		189.3		187.4		184.4		189.0		185.5		181.7


Barclays PLC		13

Quarterly Results by Business

Barclays International


	Q118		Q417		Q317		Q217		Q117		Q416		Q316		Q216
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Net interest income		1,013		987		1,148		1,060		1,112		1,046		1,355		1,001
Net trading income		1,416		935		815		1,039		1,182		1,131		1,074		1,130
Net fee, commission and other income		1,379		1,397		1,352		1,511		1,844		1,415		1,422		1,908
Total income		3,808		3,319		3,315		3,610		4,138		3,592		3,851		4,039
Credit impairment charges and other provisions		(93)		(386)		(495)		(279)		(346)		(426)		(420)		(240)
Net operating income		3,715		2,933		2,820		3,331		3,792		3,166		3,431		3,799
Operating expenses excluding UK bank levy and litigation and conduct		(2,300)		(2,428)		(2,182)		(2,276)		(2,435)		(2,497)		(2,337)		(2,074)
UK bank levy		-		(265)		-		-		-		(284)		-		-
Litigation and conduct¹		(15)		(255)		(5)		4		(13)		(17)		(17)		(10)
Operating expenses		(2,315)		(2,948)		(2,187)		(2,272)		(2,448)		(2,798)		(2,354)		(2,084)
Other net income		13		21		19		202		12		5		8		11
Profit before tax		1,413		6		652		1,261		1,356		373		1,085		1,726
Attributable profit/(loss)		973		(1,168)		359		819		837		43		623		1,171

Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances at amortised cost²		117.5		126.8		134.4		135.2		145.5		153.7		152.7		149.4
Trading portfolio assets		114.9		113.0		91.2		83.3		83.0		73.2		73.8		68.1
Derivative financial instrument assets		214.1		236.2		242.8		108.4		105.3		156.2		155.6		181.4
Derivative financial instrument liabilities		210.8		237.8		242.9		116.8		112.8		160.6		160.5		187.5
Reverse repurchase agreements and other similar secured lending		0.4		12.4		15.5		17.2		17.6		13.4		17.3		19.7
Financial assets at fair value through the income statement		150.6		104.1		103.7		94.1		81.3		62.3		72.0		68.3
Total assets		866.6		856.1		867.1		681.6		677.2		648.5		681.9		679.9
Deposits at amortised cost²		167.2		187.3		191.9		192.0		189.4		184.7		175.7		175.0
Loan: deposit ratio³		70%		68%		70%		70%		77%		83%		87%		85%
Risk weighted assets		214.2		210.3		218.2		212.2		214.3		212.7		214.6		209.3

Performance measures
Return on average allocated equity		12.8%		(15.1%)		5.0%		11.2%		11.3%		0.9%		9.0%		17.4%
Return on average allocated tangible equity		13.4%		(15.9%)		5.4%		12.4%		12.5%		1.0%		10.0%		19.2%
Average allocated equity (£bn)		31.4		29.9		31.5		30.1		30.5		29.5		28.4		27.4
Average allocated tangible equity (£bn)		30.1		28.5		28.9		27.4		27.7		26.6		25.7		24.8
Cost: income ratio		61%		89%		66%		63%		59%		78%		61%		52%
Loan loss rate (bps)		31		76		88		54		62		78		71		41
Net interest margin		4.57%		4.31%		4.21%		4.07%		4.06%		3.91%		4.21%		3.92%

Performance measures excluding litigation and conduct¹	£m		£m		£m		£m		£m		£m		£m		£m
Profit before tax		1,428		261		657		1,257		1,369		390		1,102		1,736
Attributable profit/(loss)		985		(918)		363		816		846		57		640		1,181
Return on average allocated equity		13.0%		(11.8%)		5.0%		11.2%		11.4%		1.1%		9.3%		17.5%
Return on average allocated tangible equity		13.6%		(12.4%)		5.5%		12.3%		12.6%		1.2%		10.3%		19.3%
Cost: income ratio		60%		81%		66%		63%		59%		77%		61%		51%

1	Refer to pages 33-37 for further information and calculations of performance measures excluding litigation and conduct.

2	Loans and advances at amortised cost have been restated to exclude cash collateral and settlement balances. Deposits at amortised cost have been restated to include deposits from banks and customers at amortised cost, and exclude cash collateral and settlement balances.

3	Loan: deposit ratio is calculated as loans and advances at amortised cost divided by deposits at amortised cost. Comparatives have been restated based on this approach.


Barclays PLC		14

Quarterly Results by Business

Analysis of Barclays International


Corporate and Investment Bank	Q118		Q417		Q317		Q217		Q117		Q416		Q316		Q216
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
FICC¹		869		607		627		752		889		766		947		881
Equities		590		362		350		455		462		410		461		406
Markets		1,459		969		977		1,207		1,351		1,176		1,408		1,287
Banking fees		683		605		607		674		726		650		644		622
Corporate lending		240		269		277		278		269		303		284		312
Transaction banking		414		408		419		404		398		401		458		390
Banking		1,337		1,282		1,303		1,356		1,393		1,354		1,386		1,324
Other		3		1		-		1		38		1		1		-
Total income		2,799		2,252		2,280		2,564		2,782		2,531		2,795		2,611
Credit impairment releases/(charges) and other provisions		159		(127)		(36)		1		(51)		(90)		(38)		(37)
Operating expenses		(1,786)		(2,384)		(1,661)		(1,756)		(1,941)		(2,287)		(1,872)		(1,665)
Other net income		3		7		10		116		-		1		-		-
Profit/(loss) before tax		1,175		(252)		593		925		790		155		885		909

Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances at amortised cost²		81.3		88.2		95.4		96.7		106.8		114.0		115.9		114.0
Deposits at amortised cost²		107.6		128.0		133.4		134.1		131.0		134.0		126.7		127.4
Risk weighted assets		181.3		176.2		185.2		178.9		180.6		178.6		182.5		178.4

Performance measures
Return on average allocated equity		12.9%		(19.9%)		5.7%		10.6%		7.8%		(1.1%)		8.7%		9.0%
Return on average allocated tangible equity		13.0%		(20.2%)		5.9%		11.1%		8.2%		(1.2%)		9.2%		9.5%
Average allocated equity (£bn)		25.9		24.7		25.8		24.4		24.8		24.0		23.3		22.7
Average allocated tangible equity (£bn)		25.6		24.3		24.8		23.3		23.5		22.6		21.9		21.3

Consumer, Cards and Payments Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income		1,009		1,067		1,035		1,046		1,356		1,061		1,056		1,428
Credit impairment charges and other provisions		(252)		(259)		(459)		(280)		(295)		(336)		(382)		(203)
Operating expenses		(529)		(564)		(526)		(516)		(507)		(511)		(482)		(419)
Other net income		10		14		9		86		12		4		8		11
Profit before tax		238		258		59		336		566		218		200		817

Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances at amortised cost²		36.2		38.6		39.0		38.5		38.7		39.7		36.8		35.4
Deposits at amortised cost²		59.6		59.3		58.5		57.9		58.4		50.7		49.0		47.6
Risk weighted assets		32.9		34.1		33.0		33.3		33.7		34.1		32.1		30.9

Performance measures
Return on average allocated equity		12.6%		7.1%		1.6%		14.1%		26.6%		9.6%		10.8%		57.6%
Return on average allocated tangible equity		15.6%		8.9%		2.2%		19.4%		36.4%		13.2%		14.8%		77.9%
Average allocated equity (£bn)		5.5		5.3		5.7		5.7		5.7		5.5		5.1		4.7
Average allocated tangible equity (£bn)		4.5		4.2		4.2		4.1		4.2		4.0		3.7		3.5

1	Fixed income, currencies and commodities (FICC) is composed of Credit and Macro income which were previously reported separately.

2	Loans and advances at amortised cost have been restated to exclude cash collateral and settlement balances. Deposits at amortised cost have been restated to include deposits from banks and customers at amortised cost, and exclude cash collateral and settlement balances.


Barclays PLC		15

Quarterly Results by Business

Head Office


	Q118		Q417		Q317		Q217		Q117		Q416		Q316		Q216
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Net interest income		(318)		(254)		(174)		108		(115)		29		(206)		14
Net fee, commission and other income¹		80		87		180		(24)		33		(38)		17		320
Total income		(238)		(167)		6		84		(82)		(9)		(189)		334
Credit impairment releases/(charges) and other provisions		6		(3)		(13)		(1)		-		-		1		(2)
Net operating (expenses)/income		(232)		(170)		(7)		83		(82)		(9)		(188)		332
Operating expenses excluding UK bank levy and litigation and conduct		(59)		(76)		(112)		(40)		(49)		15		(29)		(36)
UK bank levy		-		(41)		-		-		-		(2)		-		-
Litigation and conduct²		(1,535)		(75)		(65)		(1)		(10)		(1)		(8)		(11)
Operating expenses		(1,594)		(192)		(177)		(41)		(59)		12		(37)		(47)
Other net income/(expenses)		7		(3)		(22)		(164)		-		159		(4)		(28)
(Loss)/profit before tax		(1,819)		(365)		(206)		(122)		(141)		162		(229)		257
Attributable (loss)/profit		(1,699)		(371)		(199)		(175)		(123)		223		(203)		182

Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Total assets		40.4		39.7		51.7		17.3		74.5		75.2		73.3		87.7
Risk weighted assets³		31.2		31.8		36.1		26.2		52.9		53.3		47.5		43.2

Performance measures
Average allocated equity (£bn)		7.2		12.8		11.1		9.5		9.2		8.8		8.8		8.0
Average allocated tangible equity (£bn)		4.3		10.0		10.5		8.8		7.6		7.2		7.4		6.6

Performance measures excluding litigation and conduct²	£m		£m		£m		£m		£m		£m		£m		£m
(Loss)/profit before tax		(284)		(290)		(141)		(121)		(131)		163		(221)		268
Attributable (loss)/profit		(192)		(307)		(134)		(174)		(116)		224		(195)		189

1	Following the early adoption of the own credit provisions of IFRS 9 on 1 January 2017, own credit, which was previously reported in net fee, commission and other income, is recognised within other comprehensive income from Q117.

2	Refer to pages 33-37 for further information and calculations of performance measures excluding litigation and conduct.

3	Includes Africa Banking RWAs of £6.4bn (December 2017: £6.4bn).


Barclays PLC		16

Performance Management

Margins and balances

Three months ended 31.03.18

Three months ended 31.03.17

Net interest
income

Average
customer
assets

Net interest
margin

Net interest
income

Average
customer
assets

Net interest
margin

£m

Barclays UK

1,493

185,351

3.27

1,511

166,065

3.69

Barclays International¹

1,065

94,530

4.57

1,121

112,060

4.06

Total Barclays UK and Barclays International

2,558

279,881

3.71

2,632

278,125

3.84

Other²

(370)

(113)

Total Barclays Group³

2,188

2,519

1	Barclays International margins include interest earning lending balances within the investment banking business.

2	Other includes Head Office and non-interest earning lending balances within the investment banking business. Barclays Non-Core is included in the comparative period.

3	Group net interest income includes net structural hedge contributions of £0.2bn (Q117: £0.4bn).


Quarterly analysis for Barclays UK and Barclays International	Three months ended 31.12.17
	Net interest income		Average customer assets		Net interest margin
	£m		£m		%
Barclays UK		1,540		184,058		3.32
Barclays International¹		1,071		98,500		4.31
Total Barclays UK and Barclays International		2,611		282,558		3.67
	Three months ended 30.09.17
Barclays UK		1,501		181,419		3.28
Barclays International¹		1,070		100,828		4.21
Total Barclays UK and Barclays International		2,571		282,247		3.61
	Three months ended 30.06.17
Barclays UK		1,534		166,345		3.70
Barclays International¹		1,064		104,899		4.07
Total Barclays UK and Barclays International		2,598		271,244		3.84
	Three months ended 31.03.17
Barclays UK		1,511		166,065		3.69
Barclays International¹		1,121		112,060		4.06
Total Barclays UK and Barclays International		2,632		278,125		3.84

1	Barclays International margins include interest earning lending balances within the investment banking business.


Barclays PLC		17

Credit Risk


Financial instruments subject to impairment
	As at 31.03.18						As at 01.01.18¹
	Gross exposure²		Impairment allowance²		Net exposure		Gross exposure²		Impairment allowance²		Net exposure
	£m		£m		£m		£m		£m		£m
Home loans		147,514		468		147,046		146,973		464		146,509
Cards, unsecured loans and other retail lending		56,548		5,279		51,269		58,792		5,266		53,526
Corporate loans		121,928		1,158		120,770		118,525		1,378		117,147
Loans and advances at amortised cost		325,990		6,905		319,085		324,290		7,108		317,182
Off-balance sheet loan commitments and financial guarantee contracts		331,720		252		331,468		334,573		420		334,153
Total		657,710		7,157		650,553		658,863		7,528		651,335

1	Comparatives are as at 1 January 2018 to reflect the adoption of IFRS 9 from this date.

2	Excludes gross exposure of £63.7bn (1 January 2018: £53.2bn) and impairment allowance of £4m (1 January 2018: £3m) on financial assets at fair value through other comprehensive income.

Analysis of loans and advances at amortised cost and off-balance sheet exposures


	As at 31.03.18								Three months ended 31.03.18
	Gross exposure		Impairment allowance		Net exposure		Coverage ratio		Impairment charge¹		Loan loss rate
	£m		£m		£m		%		£m		bps
Barclays UK		159,349		2,709		156,640		1.7		180		46
Barclays International		29,277		2,583		26,694		8.8		251		348
Head Office		8,626		362		8,264		4.2		9		42
Total Group retail		197,252		5,654		191,598		2.9		440		90
Barclays UK		28,279		231		28,048		0.8		21		30
Barclays International		91,722		964		90,758		1.1		(158)		(70)
Head Office		8,737		56		8,681		0.6		(16)		(74)
Total Group wholesale		128,738		1,251		127,487		1.0		(153)		(48)
Total loans and advances at amortised cost		325,990		6,905		319,085		2.1		287		36
Off-balance sheet loan commitments and financial guarantee contracts		331,720		252		331,468		0.1
Total		657,710		7,157		650,553		1.1

	As at 01.01.18²
	Gross exposure		Impairment allowance		Net exposure		Coverage ratio
	£m		£m		£m		%
Barclays UK		158,787		2,594		156,193		1.6
Barclays International		30,944		2,676		28,268		8.6
Head Office		9,046		364		8,682		4.0
Total Group retail		198,777		5,634		193,143		2.8
Barclays UK		27,807		227		27,580		0.8
Barclays International		88,804		1,182		87,622		1.3
Head Office		8,902		65		8,837		0.7
Total Group wholesale		125,513		1,474		124,039		1.2
Total loans and advances at amortised cost		324,290		7,108		317,182		2.2
Off-balance sheet loan commitments and financial guarantee contracts		334,573		420		334,153		0.1
Total		658,863		7,528		651,335		1.1

1	Includes impairment charges on loans and advances at amortised cost, and off-balance sheet loan commitments and financial guarantee contracts. Excludes impairment charge of £1m on financial assets at fair value through other comprehensive income.

2	Comparatives are as at 1 January 2018 to reflect the adoption of IFRS 9 from this date.


Barclays PLC		18

Treasury and Capital Risk


Capital ratios	As at 31.03.18		As at 31.12.17
CET1¹,³		12.7%		13.3%
Tier 1 (T1)		16.4%		17.2%
Total capital		20.3%		21.5%


Capital resources	£m		£m
Total equity excluding non-controlling interests per the balance sheet		59,519		63,905
Less: other equity instruments (recognised as additional tier 1 (AT1) capital)		(8,941)		(8,941)
Adjustment to retained earnings for foreseeable dividends		(664)		(392)

Other regulatory adjustments and deductions:
Additional value adjustments (PVA)		(1,365)		(1,385)
Goodwill and intangible assets		(7,858)		(7,908)
Deferred tax assets that rely on future profitability excluding temporary differences		(525)		(593)
Fair value reserves related to gains or losses on cash flow hedges		(709)		(1,161)
Excess of expected losses over impairment		-		(1,239)
Gains or losses on liabilities at fair value resulting from own credit		120		83
Defined benefit pension fund assets		(565)		(732)
Direct and indirect holdings by an institution of own CET1 instruments		(50)		(50)
Adjustment under IFRS 9 transitional arrangements		1,314		-
Other regulatory adjustments		(30)		(22)
CET1 capital³		40,246		41,565

AT1 capital²
Capital instruments and related share premium accounts		8,941		8,941
Qualifying AT1 capital (including minority interests) issued by subsidiaries		3,053		3,538
Other regulatory adjustments and deductions		(130)		(130)
AT1 capital		11,864		12,349

T1 capital^1,3		52,110		53,914

Tier 2 (T2) capital²
Capital instruments and related share premium accounts		6,293		6,472
Qualifying T2 capital (including minority interests) issued by subsidiaries		6,253		7,040
Credit risk adjustments (excess of impairment over expected losses)		143		-
Other regulatory adjustments and deductions		(251)		(251)
Total regulatory capital		64,548		67,175

Total RWAs¹^,3		317,946		313,033

1	CET1 capital and RWAs are calculated applying the IFRS 9 transitional arrangements under Article 473a of the CRR. For more information refer to the Barclays PLC Pillar 3 Report Q1 2018, located at home.barclays/results.

2	AT1 and T2 capital are calculated applying the grandfathering of CRR non-compliant capital instruments. For further information on the relevant ratio for AT1 securities refer to Barclays PLC Pillar 3 Report Q1 2018.

3	Fully loaded CET1 capital and RWAs are calculated without the application of the IFRS 9 transitional arrangements under Article 473a of the CRR. On a fully loaded basis, the CET1 ratio is 12.2%, CET1 capital is £38,932m and RWAs are £317,970m.


Barclays PLC		19

Treasury and Capital Risk


Movement in CET1 capital	Three months ended 31.03.18 £m
Opening CET1 capital		41,565


Effects of changes in accounting policies		(2,150)


Loss for the period attributable to equity holders		(593)
Own credit relating to derivative liabilities		(19)
Dividends paid and foreseen		(397)
Decrease in retained regulatory capital generated from earnings		(1,009)


Net impact of share schemes		(330)
Fair value through other comprehensive income reserve		64
Currency translation reserve		(602)
Other reserves		23
Decrease in other qualifying reserves		(845)


Pension re-measurements within reserves		(165)
Defined benefit pension fund asset deduction		167
Net impact of pensions		2


Additional value adjustments (PVA)