Blueprint
 
 
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
 
October 27, 2016
 
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
 
3rd Quarter Results dated 27 October 2016
 
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: October 27, 2016
 
 
 
By: /s/ Ines Watson
--------------------------------
 
Ines Watson
 
Assistant Secretary
 
 
 
 
BARCLAYS BANK PLC
 
(Registrant)
 
 
Date: October 27, 2016
 
 
By: /s/Ines Watson
--------------------------------
 
Ines Watson
 
Assistant Secretary
 
 
 
 
 
Barclays PLC
Q3 2016 Results Announcement
 
30 September 2016
 
Performance Highlights
 
Transatlantic Consumer, Corporate and Investment Bank with Global Reach
Our strategy is on track with good progress year to date
 
Core returns:
Core business performed well, with a 4% growth in profit before tax to £4,898m delivering a Core return on tangible equity (RoTE) excluding notable items1 of 10.7%
Non-Core rundown:
Remain on track to close Non-Core in 2017 with strong progress on business disposals
 
 
£10bn reduction in RWAs to £44bn, despite adverse Foreign Exchange (FX) movements
 
 
Completed sale of the Barclays Risk Analytics and Index Solutions Ltd. business in Q316, resulting in a pre-tax gain of £535m
Common Equity Tier 1 (CET1) ratio:
CET1 ratio of 11.6% with strong organic capital growth offset by headwinds from the UK Retirement Fund (UKRF) defined benefit pension deficit and £1,000m of provisions for UK customer redress in the nine months to September 2016
 
 
On track to meet end-state capital requirements
Core costs:
On track to meet the £12.8bn 2016 Core cost guidance2 adjusted for FX. Based on an average USD/GBP exchange rate of 1.30 for H216 this equates to £13.0bn
 
 
We are reducing the real estate footprint resulting in restructuring costs in Barclays International of £150m in Q316 with a structurally lower cost base going forward
Barclays Africa Group Limited (BAGL) sell down:
First sale of 12.2% stake completed in May 2016, resulting in a c.10bps benefit to the CET1 ratio
 
 
Remain on track to achieve regulatory deconsolidation within 2 to 3 years
Holding Company (HoldCo) transition:
Progressed the HoldCo transition with £10.9bn equivalent of issuance and £7.4bn equivalent of Operating Company (OpCo) capital and debt bought back or redeemed
 
 
Q316 included the redemption of $750m USD preference shares, the second such redemption in 2016, and a £0.6bn equivalent liability management exercise
 
Strong Core business performance with underlying double digit Return on Tangible Equity
 
 
Core profit before tax increased 4% to £4,898m reflecting diversification benefits from consumer and wholesale customers and clients, geographies and products, and the appreciation of USD and EUR against GBP
 
 
Double digit Core RoTE of 10.7% (Q315 YTD: 12.9%) excluding notable items based on an increased average tangible equity base of £40bn (Q315 YTD: £36bn) with a basic earnings per share contribution of 19.4p (Q315 YTD: 21.3p) excluding notable items
 
 
Strong Barclays UK RoTE of 20.0% (Q315 YTD: 23.2%) excluding notable items. Net interest margin (NIM) increased 7bps to 3.63% on increased customer deposit balances, offset by lower interchange fee income in Barclaycard Consumer UK and higher credit impairment charges following a one-off impact from a management review of the cards portfolio impairment modelling
 
 
Double digit Barclays International RoTE of 10.5% (Q315 YTD: 11.5%) excluding notable items. Strong growth in Consumer, Cards and Payments products and encouraging CIB performance, particularly in Q316
 
 
Group profit before tax decreased 10% to £2,900m driven by the acceleration of Non-Core rundown resulting in a 33% increase in loss before tax to £1,998m
 
 
Group RoTE decreased to 4.4% (Q315 YTD: 5.8%)
 
 
Tangible net asset value per share decreased modestly to 287p (June 2016: 289p) in the quarter driven by the UKRF defined benefit pension net assets moving from a £0.1bn surplus to a £1.1bn deficit and £600m of provisions for UK customer redress, partially offset by favourable currency translation reserve movements and profit generated in the period
 
 
 
James E Staley, Group Chief Executive Officer, said:
“Our strategic priorities remain: strengthening our Core businesses; closing Barclays Non-Core as fast as possible; progressing the sell down of our stake in Barclays Africa to a point where we can achieve regulatory deconsolidation; eliminating costs in both Core and Non-Core; dealing with legacy issues; and meeting our end state capital requirements. Taken together, the picture in the third quarter is one of strong progress against this agenda. Our Core businesses are performing well, Non-Core rundown is approaching the final lap toward closure, we are on top of costs, and our capital position is resilient with strong reasons for confidence in meeting our end state target.
The growing momentum in attaining our strategic goals means we can feel optimistic of our prospects of completing the restructuring of Barclays – a restructuring to a simplified transatlantic, consumer, corporate and investment bank with the capacity to deliver sustainable high quality returns for shareholders. This quarter has seen us take another important stride toward that state.”
 
1
References to underlying performance exclude the impact of notable items. Notable items in Core resulted in a net loss before tax of £465m (Q315 YTD: £693m), as detailed on page 3.
2
Guidance excludes litigation and conduct charges.
 
Barclays Group results
 
for the nine months ended
30.09.16
30.09.15
 
 
£m
£m
% Change
Total income net of insurance claims
16,459
17,592
(6)
Credit impairment charges and other provisions
(1,720)
(1,208)
(42)
Net operating income 
14,739
16,384
(10)
Operating expenses
(10,753)
(10,176)
(6)
Litigation and conduct
(1,266)
(2,665)
52
Total operating expenses
(12,019)
(12,841)
6
Other net income/(expenses)
180
(322)
 
Profit before tax
2,900
3,221
(10)
Tax charge
(1,043)
(985)
(6)
Profit after tax in respect of continuing operations
1,857
2,236
(17)
Profit after tax in respect of discontinued operation1
520
525
(1)
Non-controlling interests in respect of continuing operations
(255)
(247)
(3)
Non-controlling interests in respect of discontinued operation1
(280)
(248)
(13)
Other equity holders2
(318)
(238)
(34)
Attributable profit
1,524
2,028
(25)
 
 
 
 
Performance measures
 
 
 
Return on average tangible shareholders' equity2
4.4%
5.8%
 
Average tangible shareholders' equity (£bn)
49
48
 
Cost: income ratio
73%
73%
 
Loan loss rate (bps)
48
35
 
 
 
 
 
Basic earnings per share2
9.6p
12.4p
 
Dividend per share 
1.0p
3.0p
 
 
 
 
 
 
As at
As at
As at
Balance sheet and capital management
30.09.16
30.06.16
31.12.15
Tangible net asset value per share
287p
289p
275p
Common equity tier 1 ratio
11.6%
11.6%
11.4%
Common equity tier 1 capital
£43.2bn
£42.4bn
£40.7bn
Risk weighted assets
£373bn
£366bn
£358bn
Leverage ratio
4.2%
4.2%
4.5%
Fully loaded tier 1 capital
£49.9bn
£47.9bn
£46.2bn
Leverage exposure
£1,185bn
£1,155bn
£1,028bn
 
 
 
 
Funding and liquidity
 
 
 
Group liquidity pool 
£157bn
£149bn
£145bn
Estimated CRD IV liquidity coverage ratio
125%
124%
133%
Loan: deposit ratio3
85%
85%
86%
 
 

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

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

Loan: deposit ratio for Barclays UK, Consumer, Cards and Payments, Corporate, and Non-Core retail.
 
Barclays Core and Non-Core
results for the nine months ended
Barclays Core
 
Barclays Non-Core
30.09.16
30.09.15
 
 
30.09.16
30.09.15
 
 
£m
£m
% Change 
 
£m
£m
% Change
Total income net of insurance claims
17,204
16,912
2
 
(745)
680
 
Credit impairment charges and other provisions
(1,645)
(1,106)
(49) 
 
(75)
(102)
26
Net operating income/(expenses)
15,559
15,806
(2)
 
(820)
578
 
Operating expenses
(9,585)
(8,773)
(9)
 
(1,168)
(1,403)
17
Litigation and conduct
(1,071)
(2,254)
52
 
(195)
(411)
53
Total operating expenses
(10,656)
(11,027)
3
 
(1,363)
(1,814)
25
Other net (expenses)/income
(5)
(55)
91
 
185
(267)
 
Profit/(loss) before tax
4,898
4,724
4
 
(1,998)
(1,503)
(33)
Tax (charge)/credit
(1,703)
(1,387)
(23)
 
660
402
64
Profit/(loss) after tax
3,195
3,337
(4)
 
(1,338)
(1,101)
(22)
Non-controlling interests
(221)
(185)
(19)
 
(35)
(62)
44
Other equity holders
(273)
(191)
(43)
 
(45)
(47)
4
Attributable profit/(loss)1
2,701
2,961
(9)
 
(1,418)
(1,210)
(17)
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average tangible equity
9.1%
11.0%
 
 
 
 
 
Average allocated tangible equity (£bn)1
40
36
 
 
8
11
 
Period end allocated tangible equity (£bn)1
41
38
 
 
7
10
 
Cost: income ratio
62%
65%
 
 
n/m
n/m
 
Loan loss rate (bps)
53
37
 
 
16
21
 
Basic earnings/(loss) per share contribution
16.5p
18.0p
 
 
(8.3p)
(7.2p)
 
 
 
 
 
 
 
 
 
 
As at
As at
As at
 
As at
As at
As at
Capital management
30.09.16
30.06.16
31.12.15
 
30.09.16
30.06.16
31.12.15
Risk weighted assets1
£330bn
£320bn
£304bn
 
£44bn
£47bn
£54bn
Leverage exposure1
£1,065bn
£1,021bn
£879bn 
 
£120bn
£134bn
£149bn
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notable items for the nine months ended
30.09.16
30.09.15
 
 
30.09.16
30.09.15
 
£m
£m
 
 
£m
£m
 
Own credit
(80)
605
 
 
-
-
 
Gain on disposal of Barclays’ share of Visa Europe Limited
615
-
 
 
-
-
 
Gains on US Lehman acquisition assets
-
496
 
 
-
-
 
Provisions for UK customer redress
(1,000)
(1,257)
 
 
-
(65)
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(869)
 
 
-
(201)
 
Gains on valuation of a component of the defined retirement benefit liability
-
429
 
 
-
-
 
Losses on sale relating to the Spanish and Portuguese business
-
(97)
 
 
-
(222)
 
Total notable items
(465)
(693)
 
 
-
(488)
 
 
 
Excluding notable items, the Core return on average tangible equity was 10.7% (Q315 YTD: 12.9%) and the Core basic earnings per share was 19.4p (Q315 YTD: 21.3p).
 
Excluding notable items, the Non-Core basic loss per share was 8.3p (Q315 YTD: 5.1p).
 
1
Attributable profit in respect of the Africa Banking discontinued operation is reported at the Group level only. Allocated tangible equity, RWAs and leverage exposure are reported in Head Office within Core.
 
 
 
Nine months ended
Nine months ended
 
 
30.09.16
30.09.15
 
Income by business
£m
£m
% Change
Barclays UK
5,689
5,509
3
Barclays International
11,403
10,779
6
Head Office
112
624
(82)
Barclays Core
17,204
16,912
2
Barclays Non-Core
(745)
680
 
Barclays Group
16,459
17,592
(6)
 
 
 
 
 
Profit/(loss) before tax by business
 
 
 
Barclays UK
1,155
1,432
(19)
Barclays International
3,838
3,016
27
Head Office
(95)
276
 
Barclays Core
4,898
4,724
4
Barclays Non-Core
(1,998)
(1,503)
(33)
Barclays Group
2,900
3,221
(10)
 
Group Finance Director’s Review
 
Performance for the nine months ended September 2016 demonstrates Barclays’ diversification benefits from the mix of consumer and wholesale customers and clients, geographies and products, and the associated benefit from the appreciation of USD and EUR against GBP.
 
The Core business is performing well with a double digit RoTE excluding notable items on an increased average tangible equity base. The Non-Core rundown remains on track for closure in 2017. Capital ratio progression towards end state capital requirements is also strong, while balancing capital growth with earnings accretive actions, such as the reduction in the real estate footprint and redemption of USD preference shares. The Core business generated positive cost: income jaws and we intend to continue to reduce the Group’s structural cost base, targeting a Group cost: income ratio of less than 60% over time.
 
Group performance
 
Profit before tax decreased 10% to £2,900m. The Group performance reflected strong Core results while being impacted by the acceleration of Non-Core rundown resulting in a loss before tax of £1,998m (Q315 YTD: £1,503m), provisions for UK customer redress of £1,000m (Q315 YTD: £1,322m) and the appreciation of average USD and EUR against GBP, positively impacting income and adversely affecting impairment and operating expenses
 
 
Return on average tangible shareholders’ equity was 4.4% (Q315 YTD: 5.8%) and basic earnings per share was 9.6p (Q315 YTD: 12.4p)
 
 
Total income net of insurance claims decreased 6% to £16,459m as the acceleration of Non-Core rundown resulted in income reducing £1,425m to a net expense of £745m, while Core income increased 2% to £17,204m
 
 
While delinquency rates remained broadly stable, credit impairment charges increased 42% to £1,720m primarily driven by a one-off £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling. Q116 also included impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector. These resulted in a 13bps increase in the loan loss rate to 48bps
 
 
Total operating expenses reduced 6% to £12,019m reflecting savings from strategic cost programmes as well as lower litigation and conduct charges. Operating expenses included a £150m charge in Barclays International in Q316, relating to a reduction in the real estate footprint which will generate savings in future periods, increased structural reform implementation costs, the continued business growth in Consumer, Cards and Payments and the non-recurrence of the prior year gains of £429m on valuation of a component of the defined retirement benefit liability
 
 
The effective tax rate on profit before tax increased to 36.0% (Q315 YTD: 30.6%) principally as a result of an increase in non-deductible provisions and, with effect from January 2016, a new corporation tax surcharge of 8% on banks’ UK profits
 
 
Profit after tax in respect of continuing operations decreased 17% to £1,857m. Profit after tax in relation to the Africa Banking discontinued operation decreased 1% to £520m
 
 
In the nine months ended September 2016, notable items resulted in a net loss before tax of £465m (Q315 YTD: £1,181m) comprising provisions for UK customer redress of £1,000m (Q315 YTD: £1,322m), a £615m (Q315 YTD: £nil) gain on disposal of Barclays’ share of Visa Europe Limited and an own credit loss of £80m (Q315 YTD: gain of £605m)
 
 
All performance commentary which follows is on an underlying basis, excluding notable items.
 
Core performance
 
Profit before tax decreased 1% to £5,363m, including the benefit of the appreciation of average USD and EUR against GBP. This reflected solid performance in both Barclays UK and Barclays International, generating positive cost: income jaws and an improvement in the cost: income ratio to 58% (Q315 YTD: 59%)
 
 
The Core business generated an RoTE of 10.7% (Q315 YTD: 12.9%) based on an increased average tangible equity base of £40bn (Q315 YTD: £36bn), as capital was returned from Non-Core
 
 
Total income increased 5% to £16,669m, with Barclays UK income increasing 1% to £5,538m and Barclays International income increasing 6% to £10,939m with growth in both CIB and Consumer, Cards and Payments
 
 
Credit impairment charges increased 49% to £1,645m resulting in a 16bps increase in the loan loss rate to 53bps primarily due to a one-off £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling
 
 
Total operating expenses increased 3% to £9,656m. The 2016 Core cost guidance of £12.8bn, excluding litigation and conduct charges and adjusted for FX, remains on track. Based on an average USD/GBP exchange rate of 1.30 in H216 this equates to £13bn
 
 
Barclays UK
 
RoTE was 20.0% (Q315 YTD: 23.2%), as profit before tax decreased 8% to £2,004m driven by an increase in credit impairment charges, while the cost: income ratio improved to 51% (Q315 YTD: 52%)
 
 
Total income increased 1% to £5,538m through steady growth in balances and pricing discipline
 
 
 
Personal Banking income increased 2% to £2,828m driven by improved deposit margins and balance growth, partially offset by mortgage margin pressure
 
 
 
Barclaycard Consumer UK income decreased 3% to £1,515m reflecting the impact of the European Interchange Fee Regulation, which came into full effect from December 2015, partially offset by balance growth and a gain from a debt sale in Q316
 
 
 
Wealth, Entrepreneurs & Business Banking (WEBB) income increased 1% to £1,195m reflecting deposit growth, partially offset by reduced transactional appetite from investors and a reduction in assets under management in Wealth
 
 
 
Net interest income increased 2% to £4,546m due to deposit balance growth and pricing initiatives, partially offset by a lower mortgage margin. NIM increased 7bps to 3.63% reflecting higher margins on Personal Banking deposits and income from treasury operations in Q316
 
 
Credit impairment charges increased 47% to £716m primarily due to a one-off £200m charge in Q316 following the management review of the cards portfolio impairment modelling. Excluding this charge, impairment trends remained broadly stable, with the 30 and 90 day arrears rates on the cards portfolio improving year-on-year to 2.0% (Q315 YTD: 2.2%) and 1.0% (Q315 YTD: 1.1%) respectively
 
 
Total operating expenses decreased 1% to £2,817m driven by savings realised from strategic cost programmes, partially offset by increased structural reform programme implementation costs
 
 
Barclays International
 
RoTE was 10.5% (Q315 YTD: 11.5%), within which Consumer, Cards and Payments RoTE was 21.3% (Q315 YTD: 19.9%) and CIB RoTE was 8.7% (Q315 YTD: 10.3%)
 
 
Profit before tax decreased 2% to £3,374m reflecting strong growth in Consumer, Cards and Payments, encouraging CIB results, and the benefit from the appreciation of average USD and EUR against GBP more than offset by an increase in impairment charges
 
 
Total income increased 6% to £10,939m, as Consumer Cards and Payments income increased 21% to £2,937m and CIB income increased 2% to £8,002m
 
 
 
Markets income increased 4% to £4,103m, within which Credit income increased 47% to £924m driven by a strong performance in the fixed income credit flow businesses, Equities income decreased 13% to £1,380m following simplification of the business model, and Macro income increased 4% to £1,799m driven by continued momentum in Q316 and reflecting increased activity post the EU referendum
 
 
 
Banking income decreased 1% to £3,895m, within which Banking fee income increased 7% to £1,747m, driven by higher debt underwriting and financial advisory fees, Corporate lending income decreased 15% to £892m, due to reduced income from hedges, and Transactional banking income increased 1% to £1,256m driven by increased income from higher deposit balances and an increase in payment volumes
 
 
 
Consumer, Cards and Payments income increased 21% to £2,937m driven by continued growth in Barclaycard US, including the benefit of portfolio acquisitions, Barclaycard Germany, Barclaycard Business Solutions and the Wealth International business
 
 
 
Net interest income increased 8% to £3,466m including income from treasury operations in Q316 and NIM1 increased to 4.89% (Q315 YTD: 4.56%) driven by growth in interest earning lending in Barclaycard US
 
 
Credit impairment charges increased 50% to £929m
 
 
 
CIB impairment increased 47% to £170m primarily from impairment of a number of single name exposures in Q116, largely in respect of counterparties in the oil and gas sector
 
 
 
Consumer, Cards and Payments impairment increased 51% to £759m due to growth in receivables and a one-off £120m charge in Q316 following the management review of the cards portfolio impairment modelling. Excluding this charge, impairment trends in US cards increased modestly year-on-year, with the 30 and 90 day arrears rates of 2.4% (Q315 YTD: 2.1%) and 1.1% (Q315 YTD: 1.0%) respectively
 
 
Total operating expenses increased 6% to £6,663m
 
 
 
CIB operating expenses increased 7% to £5,337m, including higher restructuring costs, £150m of which related to reducing the real estate footprint in Q316, and higher structural reform programme implementation costs, largely relating to the incorporation of the US Intermediate Holding Company (IHC) on 1 July 2016. These increases were partially offset by lower litigation and conduct charges
 
 
 
Consumer, Cards and Payments operating expenses increased 4% to £1,326m driven by continued business growth
 
 
1
Excludes Investment Banking related balances.
 
Head Office
 
Loss before tax was £15m (Q315 YTD: £203m) reflecting increased net income from treasury operations and reduced structural reform implementation costs in operating expenses
 
 
Non-Core performance
 
The Non-Core rundown remains on track, with RWAs decreasing £10bn to £44bn in the nine months to September 2016 despite the impact of the appreciation of USD and EUR against GBP, driven by a £5bn reduction in Derivatives and a £3bn reduction in Securities and loans including the completion of the sale of the Portuguese retail and insurance businesses and Italian banking network
 
 
Good progress has been made on business disposals, with the following completions in Q316:
 
 
 
Sale of Barclays Risk Analytics and Index Solutions, resulting in a pre-tax gain of £535m in other net income
 
 
 
Sale of the Italian retail banking network, resulting in a decrease in Non-Core RWAs of £0.6bn
 
 
Underlying loss before tax increased to £1,998m (Q315 YTD: £1,015m)
 
 
Total income net of insurance claims reduced £1,425m to a net expense of £745m, including fair value losses on the ESHLA portfolio of £436m (Q315 YTD: £203m)
 
 
 
Businesses income reduced £352m to £558m primarily due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas, the European retail and UK Secured Lending businesses
 
 
 
Securities and loans income reduced £644m to a net expense of £799m primarily driven by the fair value losses on the ESHLA portfolio, the impact of restructuring the ESHLA Lender Option Borrower Option loan terms in Q216, the non-recurrence of a £91m provision release relating to a litigation matter in Q115, and the exit of historical investment banking businesses
 
 
 
Derivatives income reduced £429m to a net expense of £504m primarily reflecting the costs of running down the portfolio
 
 
Credit impairment charges improved 26% to £75m driven by lower impairment charges in Europe
 
 
Total operating expenses improved 12% to £1,363m reflecting reduced costs following the exit of businesses, partially offset by higher restructuring costs
 
 
The intention remains to close Non-Core in 2017 with c.£20bn RWAs, subject to prevailing FX rates
 
 
Group capital and leverage
 
 
The fully loaded CRD IV CET1 ratio increased to 11.6% (December 2015: 11.4%) reflecting an increase in CET1 capital of £2.4bn to £43.2bn, whilst RWAs increased by £15bn to £373bn
 
 
 
The increase in CET1 capital was largely driven by strong profits of £1.8bn generated in the period, after absorbing the impact of notable items. Other favourable movements included the currency translation reserve as a result of the appreciation of all major currencies against GBP
 
 
 
This was partially offset by the UKRF defined benefit pension scheme moving to a £1.1bn deficit from a £0.8bn surplus at December 2015, leading to a 30bps adverse CET1 ratio movement. This is a result of AA corporate bond spreads tightening and gilt yields falling, causing the discount rate for the liability values to fall 151bps to 2.31%
 
 
 
The increase in RWAs was principally due to the appreciation of USD, EUR and ZAR against GBP, which more than offset RWA reductions in Non-Core
 
 
The leverage ratio decreased to 4.2% (December 2015: 4.5%) driven by a 15% increase in the leverage exposure to £1,185bn primarily within loans and advances and other assets, as well as the impact of the appreciation of USD and EUR against GBP. Fully loaded Tier 1 capital increased £3.8bn to £49.9bn, including an Additional Tier 1 (AT1) issuance of $1.5bn in Q316
 
 
Tangible net asset value per share increased to 287p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements
 
 
Group funding and liquidity
 
 
The Group continued to maintain surpluses to its internal and regulatory requirements in the nine months to September 2016 with a liquidity pool of £157bn (December 2015: £145bn). The increase was driven by the depreciation of GBP against other currencies and higher short term funding to provide additional liquidity. The Liquidity Coverage Ratio (LCR) was 125% (December 2015: 133%), equivalent to a surplus of £31bn (December 2015: £37bn)
 
 
Wholesale funding outstanding excluding repurchase agreements was £159bn as at September 2016 (December 2015: £142bn). The increase was driven by the depreciation of GBP against other currencies, holding company issuance and higher short term funding to provide additional liquidity. The Group issued £10.9bn equivalent of capital and senior unsecured debt from the holding company in the nine months to September 2016, of which £7.4bn equivalent and £0.8bn equivalent in public and private senior unsecured debt respectively, and £2.7bn of capital instruments. In the same period £7.4bn of Barclays Bank PLC capital and senior unsecured debt was bought back or called
 
 
Other matters
 
 
Additional UK customer redress provisions of £1,000m (Q315 YTD £1,322m) relating to Payment Protection Insurance (PPI) were recognised in the nine months to September 2016. £400m was recognised in Q216 reflecting an updated estimate of costs, primarily relating to ongoing remediation programmes, with £600m recognised in Q316 to reflect the current estimate of the impact of the revised complaints deadline proposed in Financial Conduct Authority (FCA) consultation paper 16/20 issued on 2 August 2016. We will continue to review the adequacy of the provision levels in respect of the FCA’s proposals which remain subject to consultation. The remaining PPI provision as at September 2016 was £2.3bn (December 2015: £2.1bn)
 
 
In Q216, Barclays redeemed its $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares. In Q316, Barclays redeemed its $750m 6.625% Series 2 Non-Cumulative Callable Dollar Preference Shares. These redemptions resulted in a 10bps detriment to the CET1 ratio, but will result in an ongoing reduction in preference share dividends payable of $139m per annum
 
 
The acquisition of Visa Europe Limited by Visa Inc. completed on 21 June 2016 resulted in the recognition of a pre-tax gain on disposal of £615m in income in Q216
 
 
On 5 May 2016, Barclays executed the first tranche of the sell down of the Group’s interest in BAGL with the sale of 12.2% of BAGL’s issued share capital. Following completion of this first tranche, Barclays’ holding represents 50.1% of BAGL’s issued share capital. Barclays continues to explore opportunities to reduce its shareholding to a level that would permit regulatory deconsolidation. Barclays also continues to work closely with BAGL management on arrangements for operational separation of the two businesses, including the terms of transitional services arrangements and related separation payments
 
 
The Barclays US IHC was incorporated on 1 July 2016. The associated quarterly report to the Federal Reserve (FR Y-9C) will be released on 9 November 2016
 
 
Tushar Morzaria, Group Finance Director
 
Results by Business
 
Barclays UK
Nine months ended
Nine months ended
 
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Net interest income
4,546
4,464
2
Net fee, commission and other income
1,143
1,045
9
Total income
5,689
5,509
3
Credit impairment charges and other provisions
(716)
(487)
(47)
Net operating income
4,973
5,022
(1)
Operating expenses
(2,803)
(2,544)
(10)
Litigation and conduct
(1,014)
(1,045)
3
Total operating expenses
(3,817)
(3,589)
(6)
Other net expenses
(1)
(1)
-
Profit before tax
1,155
1,432
(19)
Attributable profit
445
1,031
(57)
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Loans and advances to customers at amortised cost
166.6
166.0
166.1
Total assets
209.1
204.6
202.5
Customer deposits
185.5
181.7
176.8
Risk weighted assets
67.4
67.1
69.5
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.16
30.09.15
 
Return on average tangible equity
6.9%
14.8%
 
Average allocated tangible equity (£bn)
9.0
9.4
 
Cost: income ratio
67%
65%
 
Loan loss rate (bps)
56
38
 
Loan: deposit ratio
90%
96%
 
Net interest margin
3.63%
3.56%
 
 
 
 
 
Notable items
£m
£m
 
Gain on disposal of Barclays' share of Visa Europe Limited
151
-
 
Provisions for UK customer redress
(1,000)
(1,040)
 
Gain on valuation of a component of the defined retirement benefit liability
-
296
 
Total notable items
(849)
(744)
 
 
 
Excluding notable items, the Barclays UK return on average tangible equity was 20.0% (Q315 YTD: 23.2%).
 
Analysis of Barclays UK
Nine months ended
Nine months ended
 
30.09.16
30.09.15
 
Analysis of total income
£m
£m
% Change
Personal Banking
2,957
2,770
7
Barclaycard Consumer UK
1,515
1,560
(3)
Wealth, Entrepreneurs & Business Banking
1,217
1,179
3
Total income
5,689
5,509
3
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
Personal Banking
(133)
(155)
14
Barclaycard Consumer UK
(565)
(312)
(81)
Wealth, Entrepreneurs & Business Banking
(18)
(20)
10
Total credit impairment charges and other provisions
(716)
(487)
(47)
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
Personal Banking
135.3
134.7
134.0
Barclaycard Consumer UK
16.2
16.2
16.2
Wealth, Entrepreneurs & Business Banking
15.1
15.1
15.9
Total loans and advances to customers at amortised cost
166.6
166.0
166.1
 
 
 
 
Analysis of customer deposits
 
 
 
Personal Banking
137.2
134.8
131.0
Barclaycard Consumer UK
-
-
-
Wealth, Entrepreneurs & Business Banking
48.3
46.9
45.8
Total customer deposits
185.5
181.7
176.8
 
Barclays International
Nine months ended
Nine months ended
 
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Net interest income
3,466
3,204
8
Net trading income
3,449
3,189
8
Net fee, commission and other income
4,488
4,386
2
Total income
11,403
10,779
6
Credit impairment charges and other provisions
(929)
(619)
(50)
Net operating income
10,474
10,160
3
Operating expenses
(6,632)
(6,022)
(10)
Litigation and conduct
(31)
(1,159)
97
Total operating expenses
(6,663)
(7,181)
7
Other net income
27
37
(27)
Profit before tax
3,838
3,016
27
Attributable profit
2,369
1,782
33
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost1
233.7
230.6
184.1
Trading portfolio assets
73.8
68.1
61.9
Derivative financial instrument assets
155.6
181.4
111.5
Derivative financial instrument liabilities
160.5
187.5
119.0
Reverse repurchase agreements and other similar secured lending
17.3
19.7
24.7
Financial assets designated at fair value
72.0
68.3
46.8
Total assets
681.9
679.9
532.2
Customer deposits2
224.1
226.5
185.6
Risk weighted assets
214.6
209.3
194.8
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.16
30.09.15
 
Return on average tangible equity
12.9%
9.7%
 
Average allocated tangible equity (£bn)
25.2
24.9
 
Cost: income ratio
58%
67%
 
Loan loss rate (bps)
52
37
 
Loan: deposit ratio
92%
92%
 
Net interest margin3
4.89%
4.56%
 
 
 
 
 
Notable items
£m
£m
 
Gain on disposal of Barclays’ share of Visa Europe Limited
464
-
 
Gains on US Lehman acquisition assets
-
496
 
Provisions for UK customer redress
-
(218)
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(839)
 
Gain on valuation of a component of the defined retirement benefit liability
-
133
 
Total notable items
464
(428)
 
 
 
Excluding notable items, the Barclays International return on average tangible equity was 10.5% (Q315 YTD: 11.5%).
 
1
As at 30 September 2016 loans and advances included £206.0bn (June 2016: £204.4bn) of loans and advances to customers (including settlement balances of £37.0bn (June 2016: £39.9bn) and cash collateral of £31.1bn (June 2016: £29.8bn)), and £27.8bn (June 2016: £26.2bn) of loans and advances to banks (including settlement balances of £5.7bn (June 2016: £6.2bn) and cash collateral of £7.3bn (June 2016: £5.3bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £36.8bn (June 2016: £35.4bn).
2
As at 30 September 2016 customer deposits included settlement balances of £34.8bn (June 2016: £38.9bn) and cash collateral of £19.5bn (June 2016: £18.7bn).
3
Excludes Investment Banking related balances.
 
Analysis of Barclays International
 
 
Corporate and Investment Bank
Nine months ended
Nine months ended
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Analysis of total income
 
 
 
Credit
924
629
47
Equities
1,380
1,593
(13)
Macro
1,799
1,726
4
Markets
4,103
3,948
4
Banking fees
1,747
1,629
7
Corporate lending
892
1,049
(15)
Transactional banking
1,256
1,248
1
Banking
3,895
3,926
(1)
Other
4
479
(99)
Total income
8,002
8,353
(4)
Credit impairment charges and other provisions
(170)
(116)
(47)
Total operating expenses
(5,337)
(5,967)
11
Profit before tax
2,495
2,270
10
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Risk weighted assets
182.5
178.4
167.3
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.16
30.09.15
 
Return on average tangible equity
8.7%
8.0%
 
Average allocated tangible equity (£bn)
21.6
21.9
 
 
 
Excluding notable items, the CIB return on average tangible equity was 8.7% (Q315 YTD: 10.3%).
 
 
Consumer, Cards and Payments
Nine months ended
Nine months ended
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Total income
3,401
2,426
40
Credit impairment charges and other provisions
(759)
(503)
(51)
Total operating expenses
(1,326)
(1,214)
(9)
Profit before tax
1,343
746
80
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost
36.8
35.4
32.1
Customer deposits
48.3
46.9
41.8
Risk weighted assets
32.1
30.9
27.5
 
 
 
 
Performance measures
 
 
 
Return on average tangible equity
38.3%
21.8%
 
Average allocated tangible equity (£bn)
3.6
3.0
 
 
 
Excluding notable items, the Consumer, Cards and Payments return on average tangible equity was 21.3% (Q315 YTD: 19.9%).
 
Head Office
Nine months ended
Nine months ended
 
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Total income
112
624
(82)
Credit impairment charges and other provisions
-
-
 
Net operating income
112
624
(82)
Operating expenses
(150)
(207)
28
Litigation and conduct
(26)
(50)
48
Total operating expenses
(176)
(257)
32
Other net expenses
(31)
(91)
66
(Loss)/profit before tax
(95)
276
 
Attributable (loss)/profit
(113)
148
 
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Total assets1
73.3
87.7
59.4
Risk weighted assets1
47.5
43.2
39.7
 
 
 
 
 
Nine months ended
Nine months ended
 
 
30.09.16
30.09.15
 
Performance measures
£m
£m
 
Average allocated tangible equity (£bn)
6.3
2.0
 
 
 
 
 
Notable items
£m
£m
 
Own credit
(80)
605
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(29)
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
(97)
 
Total notable items
(80)
479
 
 
1
Includes Africa Banking assets held for sale of £61.1bn (June 2016: £56.0bn) and risk weighted assets of £39.9bn (June 2016: £36.1bn).
 
Barclays Non-Core
Nine months ended
Nine months ended
 
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Net interest income
214
444
(52)
Net trading income
(1,241)
(308)
 
Net fee, commission and other income
477
799
(40)
Total income
(550)
935
 
Net claims and benefits incurred under insurance contracts
(195)
(255)
24
Total income net of insurance claims
(745)
680
 
Credit impairment charges and other provisions
(75)
(102)
26
Net operating (expenses)/income
(820)
578
 
Operating expenses
(1,168)
(1,403)
17
Litigation and conduct
(195)
(411)
53
Total operating expenses
(1,363)
(1,814)
25
Other net income/(expenses)
185
(267)
 
Loss before tax
(1,998)
(1,503)
(33)
Attributable loss
(1,418)
(1,210)
(17)
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost1
58.7
68.5
51.8
Derivative financial instrument assets
253.2
262.8
213.7
Derivative financial instrument liabilities
243.0
253.4
202.1
Reverse repurchase agreements and other similar secured lending
0.1
0.1
3.1
Financial assets designate at fair value
15.5
15.4
21.4
Total assets
359.8
379.1
325.8
Customer deposits2
16.0
17.4
20.9
Risk weighted assets
43.9
46.7
54.3
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.16
30.09.15
 
Average allocated tangible equity (£bn)
8.2
11.3
 
Period end allocated tangible equity (£bn)
7.2
10.2
 
Loan loss rate (bps)
16
21
 
 
 
 
 
Notable items
£m
£m
 
Provisions for UK customer redress
-
(65)
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(201)
 
Losses on sale relating to the Spanish and Portuguese businesses
-
(222)
 
Total notable items
-
(488)
 
 
 
 
 
Analysis of income net of insurance claims
£m
£m
% Change
Businesses
558
910
(39)
Securities and loans
(799)
(155)
 
Derivatives
(504)
(75)
 
Total income net of insurance claims
(745)
680
 
 
 
1
As at 30 September 2016 loans and advances included £43.5bn (June 2016: £52.4bn) of loans and advances to customers (including settlement balances of £0.3bn (June 2016: £0.1bn) and cash collateral of £20.9bn (June 2016: £28.8bn) and loans and advances to banks of £15.2bn (June 2016: £16.1bn) (including settlement balances of £0.1bn (June 2016: £0.1bn) and cash collateral of £14.2bn (June 2016: £15.0bn)).
2
As at 30 September 2016 customer deposits included settlement balances of £0.2bn (June 2016: £0.1bn) and cash collateral of £14.8bn (June 2016: £14.5bn).
 
Discontinued Operation
 
On 1 March 2016, Barclays announced its intention to sell down the Group’s interest in BAGL. This sell down is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required. On 5 May 2016 Barclays executed the first tranche of the sell down of the Group’s interest in BAGL with the sale of 12.2% of BAGL’s issued share capital. Following completion of the sale, Barclays’ holding represents 50.1% of BAGL’s issued share capital.
The Africa Banking business meets the requirements for presentation as a discontinued operation. As such, these results have been presented as two lines on the face of the Group income statement, representing the profit after tax and non-controlling interest in respect of the discontinued operation. Were the fair value of BAGL, based on its quoted share price, less estimated costs to sell, to fall below the carrying amount of the net assets of BAGL including goodwill on acquisition, a resulting impairment to Barclays’ stake in BAGL would also be recognised through these lines.
 
Africa Banking
Nine months ended
Nine months ended
 
30.09.16
30.09.15
 
Income statement information
£m
£m
% Change
Net interest income
1,543
1,482
4
Net fee, commission and other income
1,273
1,239
3
Total income
2,816
2,721
3
Net claims and benefits incurred under insurance contracts
(137)
(121)
(13)
Total income net of insurance claims
2,679
2,600
3
Credit impairment charges and other provisions
(340)
(260)
(31)
Net operating income
2,339
2,340
-
Total operating expenses
(1,618)
(1,590)
(2)
Other net income
4
4
-
Profit before tax
725
754
(4)
Profit after tax
520
525
(1)
Attributable profit
240
277
(13)
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Balance sheet information
£bn
£bn
£bn
Total assets1
61.1
56.0
47.9
Risk weighted assets1
39.9
36.1
31.7
 
 
1
Africa Banking assets held for sale and RWAs are reported in Head Office within Core.
 
Quarterly Results Summary
 
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income net of insurance claims
5,446
5,972
5,041
 
4,448
5,481
6,461
5,650
 
4,097
Credit impairment charges and other provisions
(789)
(488)
(443)
 
(554)
(429)
(393)
(386)
 
(495)
Net operating income 
4,657
5,484
4,598
 
3,894
5,052
6,068
5,264
 
3,602
Operating expenses
(3,581)
(3,425)
(3,747)
 
(3,547)
(3,552)
(3,557)
(3,067)
 
(3,696)
UK bank levy
-
-
-
 
(426)
-
-
-
 
(418)
Litigation and conduct
(741)
(447)
(78)
 
(1,722)
(699)
(927)
(1,039)
 
(1,089)
Total operating expenses
(4,322)
(3,872)
(3,825)
 
(5,695)
(4,251)
(4,484)
(4,106)
 
(5,203)
Other net income/(expenses)
502
(342)
20
 
(274)
(182)
(39)
(101)
 
(82)
Profit/(loss) before tax
837
1,270
793
 
(2,075)
619
1,545
1,057
 
(1,683)
Tax (charge)/credit
(328)
(467)
(248)
 
(164)
(133)
(324)
(528)
 
134
Profit/(loss) after tax in respect of continuing operations
509
803
545
 
(2,239)
486
1,221
529
 
(1,549)
Profit after tax in respect of discontinued operation
209
145
166
 
101
167
162
196
 
168
 
 
 
 
 
 
 
 
 
 
 
Attributable to:
 
 
 
 
 
 
 
 
 
 
Ordinary equity holders of the parent
414
677
433
 
(2,422)
417
1,146
465
 
(1,679)
Other equity holders
110
104
104
 
107
79
79
80
 
80
Non-controlling interests
194
167
174
 
177
157
158
180
 
218
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets
1,324.0
1,351.3
1,248.9
 
1,120.0
1,236.5
1,196.7
1,416.4
 
1,357.9
Risk weighted assets
373.4
366.3
363.0
 
358.4
381.9
376.7
395.9
 
401.9
Leverage exposure
1,185.1
1,155.4
1,082.0
 
1,027.8
1,140.7
1,139.3
1,254.7
 
1,233.4
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
3.6%
5.8%
3.8%
 
(20.1%)
3.6%
9.8%
4.0%
 
(13.8%)
Average tangible shareholders' equity (£bn)
49.4
48.3
48.3
 
47.8
47.6
47.2
48.1
 
48.3
Cost: income ratio
79%
65%
76%
 
128%
78%
69%
73%
 
127%
Loan loss rate (bps)
66
41
40
 
53
37
35
32
 
45
Basic earnings/(loss) per share
2.6p
4.2p
2.7p
 
(14.4p)
2.6p
7.0p
2.9p
 
(10.2p)
 
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Own credit
(264)
292
(109)
 
(175)
195
282
128
 
(62)
Gain on disposal of Barclays' share of Visa Europe Limited
-
615
-
 
-
-
-
-
 
-
Gains on US Lehman acquisition assets
-
-
-
 
-
-
496
-
 
-
Revision of ESHLA valuation methodology
-
-
-
 
-
-
-
-
 
(935)
Provisions for UK customer redress
(600)
(400)
-
 
(1,450)
(290)
(850)
(182)
 
(200)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
 
(167)
(270)
-
(800)
 
(750)
Gain on valuation of a component of the defined retirement benefit liability
-
-
-
 
-
-
-
429
 
-
Impairment of goodwill and other assets relating to businesses being disposed
-
-
-
 
(96)
-
-
-
 
-
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
-
-
 
(261)
(201)
-
(118)
 
(82)
Total notable items
(864)
507
(109)
 
(2,149)
(566)
(72)
(543)
 
(2,029)
 
Excluding notable items, the Q316 Group return on average tangible equity was 10.1% (Q315: 6.7%) and the Group basic earnings per share was 7.4p (Q315: 4.8p).
 
Barclays Core
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income net of insurance claims 
5,605
6,316
5,283
 
4,516
5,265
6,219
5,428
 
4,791
Credit impairment charges and other provisions 
(769)
(462)
(414)
 
(522)
(388)
(373)
(345)
 
(481)
Net operating income 
4,836
5,854
4,869
 
3,994
4,877
5,846
5,083
 
4,310
Operating expenses
(3,270)
(3,057)
(3,258)
 
(2,992)
(3,094)
(3,061)
(2,618)
 
(3,076)
UK bank levy 
-
-
-
 
(338)
-
-
-
 
(316)
Litigation and conduct
(639)
(420)
(12)
 
(1,634)
(419)
(819)
(1,015)
 
(1,004)
Total operating expenses
(3,909)
(3,477)
(3,270)
 
(4,964)
(3,513)
(3,880)
(3,633)
 
(4,396)
Other net income/(expenses)
4
(18)
9
 
(5)
13
14
(83)
 
6
Profit/(loss) before tax
931
2,359
1,608
 
(975)
1,377
1,980
1,367
 
(80)
Tax charge
(522)
(696)
(485)
 
(92)
(299)
(474)
(614)
 
(172)
Profit/(loss) after tax
409
1,663
1,123
 
(1,067)
1,078
1,506
753
 
(253)
Non-controlling interests
(57)
(80)
(84)
 
(81)
(54)
(64)
(68)
 
(100)
Other equity holders
(95)
(89)
(89)
 
(92)
(63)
(61)
(65)
 
(64)
Attributable profit/(loss)
257
1,494
950
 
(1,240)
961
1,381
620
 
(417)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets
964.3
972.2
883.6
 
794.2
862.0
830.5
919.4
 
855.5
Risk weighted assets
329.5
319.6
312.2
 
304.1
316.3
308.1
318.0
 
312.8
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible equity
2.7%
15.0%
9.9%
 
(12.8%)
10.4%
15.5%
7.1%
 
(4.8%)
Average tangible equity (£bn)
41.8
40.4
39.3
 
38.1
37.5
35.9
35.6
 
34.0
Cost: income ratio 
70%
55%
62%
 
110%
67%
62%
67%
 
92%
Loan loss rate (bps)
74
45
42
 
57
39
38
35
 
52
Basic earnings/(loss) per share
1.7p
9.0p
5.8p
 
(7.3p)
5.8p
8.4p
3.8p
 
(2.5p)
 
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Own credit
(264)
292
(109)
 
(175)
195
282
128
 
(62)
Gain on disposal of Barclays' share of Visa Europe Limited
-
615
-
 
-
-
-
-
 
-
Gains on US Lehman acquisition assets
-
-
-
 
-
-
496
-
 
-
Provisions for UK customer redress
(600)
(400)
-
 
(1,392)
(290)
(800)
(167)
 
(199)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
 
(167)
(69)
-
(800)
 
(750)
Gain on valuation of a component of the defined retirement benefit liability
-
-
-
 
-
-
-
429
 
-
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
-
-
 
(15)
-
-
(97)
 
-
Total notable items
(864)
507
(109)
 
(1,749)
(164)
(22)
(507)
 
(1,011)
 
 
Excluding notable items, the Q316 Core return on average tangible equity was 10.4% (Q315: 11.3%) and the Core basic earnings per share was 6.5p (Q315: 6.4p).
 
 
Barclays Non-Core
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Businesses
181
181
196
 
229
314
292
304
 
361
Securities and loans
(34)
(363)
(402)
 
(195)
(87)
-
(68)
 
(1,021)
Derivatives
(306)
(162)
(36)
 
(102)
(12)
(49)
(14)
 
(35)
Total income net of insurance claims 
(159)
(344)
(242)
 
(68)
215
243
222
 
(695)
Credit impairment charges and other provisions 
(20)
(26)
(29)
 
(32)
(41)
(20)
(41)
 
(13)
Net operating (expenses)/income 
(179)
(370)
(271)
 
(100)
174
223
181
 
(708)
Operating expenses
(311)
(368)
(489)
 
(555)
(458)
(496)
(449)
 
(618)
UK bank levy 
-
-
-
 
(88)
-
-
-
 
(102)
Litigation and conduct
(102)
(27)
(66)
 
(89)
(279)
(108)
(24)
 
(85)
Total operating expenses
(413)
(395)
(555)
 
(732)
(737)
(604)
(473)
 
(805)
Other net income/(expenses)
498
(324)
11
 
(268)
(195)
(54)
(18)
 
(90)
Loss before tax
(94)
(1,089)
(815)
 
(1,100)
(758)
(435)
(310)
 
(1,603)
Tax credit/(charge)
194
229
237
 
(72)
166
150
86
 
306
Profit/(loss) after tax
100
(860)
(578)
 
(1,172)
(592)
(285)
(224)
 
(1,297)
Non-controlling interests
(13)
(12)
(10)
 
(19)
(21)
(21)
(20)
 
(33)
Other equity holders
(15)
(15)
(15)
 
(17)
(15)
(18)
(14)
 
(17)
Attributable profit/(loss)
72
(887)
(603)
 
(1,208)
(628)
(324)
(258)
 
(1,347)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
58.7
68.5
55.4
 
51.8
57.1
60.4
73.1
 
70.7
Derivative financial instrument assets
253.2
262.8
249.7
 
213.7
243.3
223.9
305.6
 
288.9
Derivative financial instrument liabilities
243.0
253.4
239.1
 
202.1
235.0
216.7
299.6
 
280.6
Reverse repurchase agreements and other similar secured lending
0.1
0.1
0.7
 
3.1
8.5
16.7
43.7
 
50.7
Financial assets designated at fair value
15.5
15.4
23.4
 
21.4
22.8
22.1
25.0
 
25.5
Total assets
359.8
379.1
365.4
 
325.8
374.5
366.2
497.0
 
502.4
Customer deposits
16.0
17.4
19.3
 
20.9
25.8
27.9
29.9
 
30.8
Risk weighted assets
43.9
46.7
50.9
 
54.3
65.6
68.6
77.9
 
89.1
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
7.6
7.9
9.0
 
9.7
10.2
11.3
12.4
 
14.3
Period end allocated tangible equity (£bn)
7.2
7.8
8.5
 
8.5
10.2
10.1
11.7
 
13.1
Loan loss rate (bps)
13
14
21
 
25
27
13
17
 
10
Basic earnings/(loss) per share contribution
0.5p
(5.2p)
(3.6p)
 
(7.2p)
(3.7p)
(1.9p)
(1.5p)
 
(8.2p)
 
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Revision of ESHLA valuation methodology
-
-
-
 
-
-
-
-
 
(935)
Provisions for UK customer redress
-
-
-
 
(58)
-
(50)
(15)
 
(1)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
 
-
(201)
-
-
 
-
Impairment of goodwill and other assets relating to businesses being disposed
-
-
-
 
(96)
-
-
-
 
-
Losses on sale relating to the Spanish, Portuguese and Italian business
-
-
-
 
(246)
(201)
-
(21)
 
(82)
Total notable items
-
-
-
 
(400)
(402)
(50)
(36)
 
(1,018)
 
 
Excluding notable items, the Non-Core basic earnings/(loss) per share was 0.5p (Q315: (2.1p)).
 
Quarterly Core Results by Business
 
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income
1,943
1,943
1,803
 
1,834
1,874
1,804
1,831
 
1,882
Credit impairment charges and other provisions 
(350)
(220)
(146)
 
(219)
(154)
(166)
(167)
 
(264)
Net operating income 
1,593
1,723
1,657
 
1,615
1,720
1,638
1,664
 
1,618
Operating expenses
(904)
(947)
(952)
 
(920)
(925)
(970)
(649)
 
(1,041)
UK bank levy 
-
-
-
 
(77)
-
-
-
 
(59)
Litigation and conduct
(614)
(399)
(1)
 
(1,466)
(76)
(801)
(168)
 
(211)
Total operating expenses
(1,518)
(1,346)
(953)
 
(2,463)
(1,001)
(1,771)
(817)
 
(1,311)
Other net (expenses)/income
-
(1)
-
 
1
1
1
(3)
 
(3)
Profit/(loss) before tax
75
376
704
 
(847)
720
(132)
844
 
304
Attributable (loss)/profit
(163)
141
467
 
(1,078)
541
(174)
664
 
208
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to customers at amortised cost
166.6
166.0
166.2
 
166.1
166.7
166.1
166.0
 
165.3
Total assets
209.1
204.6
201.7
 
202.5
204.1
202.2
199.6
 
198.0
Customer deposits
185.5
181.7
179.1
 
176.8
173.4
171.6
168.7
 
168.3
Risk weighted assets
67.4
67.1
69.7
 
69.5
71.0
71.7
72.3
 
69.3
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible equity
(7.1%)
6.6%
20.5%
 
(46.5%)
23.3%
(7.3%)
28.3%
 
9.3%
Average allocated tangible equity (£bn)
8.7
9.0
9.3
 
9.2
9.3
9.4
9.4
 
9.2
Cost: income ratio 
78%
69%
53%
 
134%
53%
98%
45%
 
70%
Loan loss rate (bps)
82
52
34
 
51
36
40
40
 
62
 
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Gain on disposal of Barclays' share of Visa Europe Limited
-
151
-
 
-
-
-
-
 
-
Provisions for UK customer redress
(600)
(400)
-
 
(1,391)
(73)
(800)
(167)
 
(199)
Gain on valuation of a component of the defined retirement benefit liability
-
-
-
 
-
-
-
296
 
-
Total notable items
(600)
(249)
-
 
(1,391)
(73)
(800)
129
 
(199)
 
 
Excluding notable items, the Q316 Barclays UK return on average tangible equity was 21.1% (Q315: 25.8%).
 
 
Analysis of Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Analysis of total income
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Personal Banking
970
1,068
919
 
945
938
905
927
 
955
Barclaycard Consumer UK
561
463
491
 
505
552
503
505
 
518
Wealth, Entrepreneurs & Business Banking
412
412
393
 
384
384
396
399
 
409
Total income
1,943
1,943
1,803
 
1,834
1,874
1,804
1,831
 
1,882
 
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
 
 
 
 
 
 
 
Personal Banking
(47)
(44)
(42)
 
(39)
(36)
(50)
(69)
 
(57)
Barclaycard Consumer UK
(291)
(169)
(105)
 
(176)
(111)
(106)
(95)
 
(185)
Wealth, Entrepreneurs & Business Banking
(12)
(7)
1
 
(4)
(7)
(10)
(3)
 
(22)
Total credit impairment charges and other provisions
(350)
(220)
(146)
 
(219)
(154)
(166)
(167)
 
(264)
 
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Personal Banking
135.3
134.7
134.7
 
134.0
134.5
134.4
134.3
 
133.8
Barclaycard Consumer UK
16.2
16.2
16.0
 
16.2
15.9
15.8
15.7
 
15.8
Wealth, Entrepreneurs & Business Banking
15.1
15.1
15.5
 
15.9
16.3
15.9
16.0
 
15.7
Total loans and advances to customers at amortised cost
166.6
166.0
166.2
 
166.1
166.7
166.1
166.0
 
165.3
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits
 
 
 
 
 
 
 
 
 
 
Personal Banking
137.2
134.8
132.9
 
131.0
128.4
126.7
123.4
 
124.5
Barclaycard Consumer UK
-
-
-
 
-
-
-
-
 
-
Wealth, Entrepreneurs & Business Banking
48.3
46.9
46.2
 
45.8
45.0
44.9
45.3
 
43.8
Total customer deposits
185.5
181.7
179.1
 
176.8
173.4
171.6
168.7
 
168.3
 
Barclays International
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income
3,851
4,039
3,513
 
2,968
3,223
4,102
3,454
 
2,945
Credit impairment charges and other provisions 
(420)
(240)
(269)
 
(303)
(235)
(206)
(178)
 
(217)
Net operating income 
3,431
3,799
3,244
 
2,665
2,988
3,896
3,276
 
2,728
Operating expenses
(2,337)
(2,074)
(2,221)
 
(2,007)
(2,059)
(2,027)
(1,936)
 
(2,014)
UK bank levy 
-
-
-
 
(253)
-
-
-
 
(248)
Litigation and conduct
(17)
(10)
(4)
 
(151)
(302)
(12)
(845)
 
(786)
Total operating expenses
(2,354)
(2,084)
(2,225)
 
(2,411)
(2,361)
(2,039)
(2,781)
 
(3,048)
Other net income
8
11
8
 
8
9
13
15
 
7
Profit/(loss) before tax
1,085
1,726
1,027
 
262
636
1,870
510
 
(313)
Attributable profit/(loss)
623
1,171
575
 
(24)
422
1,376
(16)
 
(673)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
233.7
230.6
215.9
 
184.1
220.3
210.5
224.7
 
193.6
Trading portfolio assets
73.8
68.1
64.3
 
61.9
72.8
75.3
92.7
 
87.3
Derivative financial instrument assets
155.6
181.4
150.1
 
111.5
133.7
116.0
172.8
 
149.6
Derivative financial instrument liabilities
160.5
187.5
155.4
 
119.0
142.0
124.8
182.3
 
157.3
Reverse repurchase agreements and other similar secured lending
17.3
19.7
19.1
 
24.7
68.0
57.4
57.1
 
62.9
Financial assets designated at fair value
72.0
68.3
59.6
 
46.8
5.6
5.6
5.2
 
5.7
Total assets
681.9
679.9
618.4
 
532.2
596.1
566.1
656.2
 
596.5
Customer deposits
224.1
226.5
213.1
 
185.6
207.0
197.7
206.2
 
188.2
Risk weighted assets
214.6
209.3
202.2
 
194.8
204.0
195.4
202.6
 
201.7
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible equity
10.0%
19.2%
9.5%
 
(0.2%)
7.0%
22.5%
(0.1%)
 
(10.4%)
Average allocated tangible equity (£bn)
25.7
24.8
25.1
 
24.9
24.7
24.7
25.3
 
25.6
Cost: income ratio 
61%
52%
63%
 
81%
73%
50%
81%
 
103%
Loan loss rate (bps)
71
41
50
 
65
42
38
32
 
44
 
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Gain on disposal of Barclays' share of Visa Europe Limited
-
464
-
 
-
-
-
-
 
-
Gains on US Lehman acquisition assets
-
-
-
 
-
-
496
-
 
-
Provisions for UK customer redress
-
-
-
 
-
(218)
-
-
 
-
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
 
(145)
(39)
-
(800)
 
(750)
Gain on valuation of a component of the defined retirement benefit liability
-
-
-
 
-
-
-
133
 
-
Total notable items
-
464
-
 
(145)
(257)
496
(667)
 
(750)
 
 
Excluding notable items, the Q316 Barclays International return on average tangible equity was 10.0% (Q315: 9.6%).
 
Analysis of Barclays International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Investment Bank
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Analysis of total income
 
 
 
 
 
 
 
 
 
 
Credit
333
269
322
 
195
191
218
220
 
117
Equities
461
406
513
 
319
416
588
589
 
418
Macro
614
612
573
 
382
487
582
657
 
436
Markets
1,408
1,287
1,408
 
896
1,094
1,388
1,466
 
971
Banking fees
644
622
481
 
458
501
580
548
 
529
Corporate lending
284
312
296
 
312
377
387
285
 
334
Transactional banking
458
390
408
 
415
419
416
413
 
404
Banking
1,386
1,324
1,185
 
1,185
1,297
1,383
1,246
 
1,267
Other
1
-
3
 
16
(17)
495
1
 
(4)
Total income
2,795
2,611
2,596
 
2,097
2,374
3,266
2,713
 
2,234
Credit impairment (charges)/ releases and other provisions
(38)
(37)
(95)
 
(83)
(75)
(42)
1
 
(26)
Total operating expenses
(1,872)
(1,665)
(1,800)
 
(1,962)
(1,940)
(1,605)
(2,422)
 
(2,614)
Profit/(loss) before tax
885
909
701
 
52
358
1,620
292
 
(408)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Risk weighted assets
182.5
178.4
172.6
 
167.3
177.4
170.0
177.1
 
175.2
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible equity
9.2%
9.5%
7.3%
 
(2.5%)
4.5%
22.3%
(2.5%)
 
(12.8%)
Average allocated tangible equity (£bn)
21.9
21.3
21.6
 
21.8
21.7
21.7
22.3
 
22.5
 
Excluding notable items, the Q316 CIB return on average tangible equity was 9.2% (Q315: 7.5%).
 
Consumer, Cards and Payments
 
 
 
 
 
 
 
 
 
 
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income
1,056
1,428
917
 
871
849
836
741
 
711
Credit impairment charges and other provisions
(382)
(203)
(174)
 
(219)
(160)
(165)
(179)
 
(190)
Total operating expenses
(482)
(419)
(425)
 
(449)
(421)
(434)
(359)
 
(434)
Profit before tax
200
817
326
 
210
278
250
218
 
93
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
36.8
35.4
32.9
 
32.1
30.6
29.6
29.8
 
29.7
Customer deposits
48.3
46.9
44.2
 
41.8
39.8
38.4
40.1
 
37.9
Risk weighted assets
32.1
30.9
29.6
 
27.5
26.6
25.4
25.5
 
26.6
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible equity
14.8%
77.9%
23.4%
 
15.3%
24.7%
23.4%
17.5%
 
6.6%
Average allocated tangible equity (£bn)
3.7
3.5
3.4
 
3.2
3.1
3.0
3.0
 
3.1
 
Excluding notable items, the Q316 Consumer, Cards and Payments return on average tangible equity was 14.8% (Q315: 24.7%).
 
Head Office
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income
(189)
334
(33)
 
(285)
169
312
142
 
(36)
Credit impairment releases/(charges) and other provisions
1
(2)
1
 
-
1
(1)
-
 
-
Net operating (expenses)/income 
(188)
332
(32)
 
(285)
170
311
142
 
(36)
Operating expenses
(29)
(36)
(85)
 
(64)
(110)
(64)
(34)
 
(21)
UK bank levy 
-
-
-
 
(8)
-
-
-
 
(9)
Litigation and conduct
(8)
(11)
(7)
 
(17)
(42)
(6)
(1)
 
(7)
Total operating expenses
(37)
(47)
(92)
 
(89)
(152)
(70)
(35)
 
(37)
Other net (expenses)/income
(4)
(28)
1
 
(14)
2
1
(95)
 
3
(Loss)/profit before tax
(229)
257
(123)
 
(388)
20
242
12
 
(70)
Attributable (loss)/profit
(203)
182
(92)
 
(140)
(1)
180
(28)
 
47
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets1
73.3
87.7
63.4
 
59.4
61.8
62.2
63.6
 
61.0
Risk weighted assets1
47.5
43.2
40.3
 
39.7
41.3
41.0
43.1
 
41.8
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
7.4
6.6
5.0
 
3.9
3.4
1.8
0.9
 
(0.8)
 
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Own credit
(264)
292
(109)
 
(175)
195
282
128
 
(62)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
 
(23)
(29)
-
-
 
-
Provisions for UK customer redress
-
-
-
 
-
-
-
-
 
-
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
-
-
 
(15)
-
-
(97)
 
-
Total notable items
(264)
292
(109)
 
(213)
166
282
31
 
(62)
 
 
1
Includes Africa Banking assets held for sale and RWAs.
 
Discontinued Quarterly Results
 
 Africa Banking
 
 
 
 
 
 
 
 
 
 
 
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
 
Q414
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income net of insurance claims
982
879
818
 
814
822
870
908
 
925
Credit impairment charges and other provisions 
(96)
(133)
(111)
 
(93)
(66)
(103)
(91)
 
(79)
Net operating income 
886
746
707
 
721
756
767
817
 
846
Operating expenses
(598)
(543)
(477)
 
(501)
(515)
(536)
(539)
 
(585)
UK bank levy 
-
-
-
 
(50)
-
-
-
 
(44)
Litigation and conduct
-
-
-
 
-
-
-
-
 
(1)
Total operating expenses
(598)
(543)
(477)
 
(551)
(515)
(536)
(539)
 
(630)
Other net income
2
1
1
 
3
1
1
2
 
2
Profit before tax
290
204
231
 
173
242
232
280
 
218
Profit after tax
209
145
166
 
101
167
162
196
 
168
Attributable profit
85
70
86
 
25
85
88
104
 
85
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets1
61.1
56.0
52.7
 
47.9
50.2
52.2
55.9
 
53.7
Risk weighted assets1
39.9
36.1
33.9
 
31.7
33.8
34.4
37.3
 
36.7
 
 
1
Africa Banking assets held for sale and RWAs are reported in Head Office within Core.
 
Performance Management
 
 Margins and balances
 
 
 
 
 
 
 
Nine months ended 30.09.16
Nine months ended 30.09.15
 
Net interest income
Average customer assets
Net interest margin
Net interest income
Average customer assets
Net interest margin
 
£m
£m
%
£m
£m
%
Barclays UK
4,546
167,306
3.63
4,464
167,663
3.56
Barclays International1
3,113
85,110
4.89
2,760
80,956
4.56
Total Barclays UK and Barclays International
7,659
252,416
4.05
7,224
248,619
3.88
Other2
355
 
 
658
 
 
Total net interest income3
8,014
 
 
7,882
 
 
 
 
1
Excludes Investment Banking related balances.
2
Other includes Investment Banking related balances, Head Office and Barclays Non-Core.
3
Group NII included net structural hedge contributions of £1.0bn (Q315 YTD: £1.0bn).
 
 
 
Quarterly analysis for Barclays UK and Barclays International
Three months ended 30.09.16
 
Net interest income
Average customer assets
Net interest margin
 
£m
£m
%
Barclays UK
1,569
167,713
3.72
Barclays International1
1,139
88,443
5.12
Total Barclays UK and Barclays International
2,708
256,156
4.21
 
 
 
 
 
Three months ended 30.06.16
Barclays UK
1,476
166,691
3.56
Barclays International1
1,000
84,628
4.75
Total Barclays UK and Barclays International
2,476
251,319
3.96
 
 
 
 
 
Three months ended 31.03.16
Barclays UK
1,501
166,727
3.62
Barclays International1
974
85,010
4.61
Total Barclays UK and Barclays International
2,475
251,737
3.95
 
 
 
 
 
Three months ended 31.12.15
Barclays UK
1,509
167,405
3.58
Barclays International1
965
83,342
4.59
Total Barclays UK and Barclays International
2,474
250,747
3.91
 
 
 
 
 
Three months ended 30.09.15
Barclays UK
1,499
167,936
3.54
Barclays International1
947
91,311
4.62
Total Barclays UK and Barclays International
2,446
249,247
3.89
 
 
1
Excludes Investment Banking related balances.
 
Credit Risk
 
Analysis of retail and wholesale loans and advances and impairment
 
As at 30.09.16
Gross
loans and advances
Impairment allowance
Loans and advances net of impairment
Credit
risk loans
CRLs % of gross loans and advances
Loan impairment charges1
Loan loss rates
 
£m
£m
£m
£m
%
£m
bps
Barclays UK
155,559
1,594
153,965
2,218
1.4
698
60
Barclays International
30,328
1,289
29,039
1,115
3.7
753
332
Head Office
-
-
-
-
-
-
-
Barclays Core
185,887
2,883
183,004
3,333
1.8
1,451
104
Barclays Non-Core
11,180
433
10,747
944
8.4
62
74
Total Group retail
197,067
3,316
193,751
4,277
2.2
1,513
103
 
 
 
 
 
 
 
 
Barclays UK
15,358
274
15,084
649
4.2
18
16
Barclays International
205,356
654
204,702
1,386
0.7
174
11
Head Office
7,682
-
7,682
-
-
-
-
Barclays Core
228,396
928
227,468
2,035
0.9
192
11
Barclays Non-Core
48,256
281
47,975
427
0.9
9
2
Total Group wholesale
276,652
1,209
275,443
2,462
0.9
201
10
 
 
 
 
 
 
 
 
Group total
473,719
4,525
469,194
6,739
1.4
1,714
48
 
 
 
 
 
 
 
 
Traded loans
3,208
n/a
3,208
 
 
 
 
Loans and advances designated at fair value
11,979
n/a
11,979
 
 
 
 
Loans and advances held at fair value
15,187
n/a
15,187
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and advances
488,906
4,525
484,381
 
 
 
 
 
 
 
 
 
 
 
 
As at 31.12.15
 
 
 
 
 
 
 
Barclays UK
153,539
1,556
151,983
2,238
1.5
682
44
Barclays International
26,041
896
25,145
863
3.3
714
274
Head Office2
-
-
-
-
-
-
-
Barclays Core
179,580
2,452
177,128
3,101
1.7
1,396
78
Barclays Non-Core
12,588
465
12,123
936
7.4
139
110
Total Group retail
192,168
2,917
189,251
4,037
2.1
1,535
80
 
 
 
 
 
 
 
 
Barclays UK
16,400
312
16,088
636
3.9
24
15
Barclays International
159,776
617
159,159
1,331
0.8
201
13
Head Office2
5,767
-
5,767
-
-
-
-
Barclays Core
181,943
929
181,014
1,967
1.1
225
12
Barclays Non-Core
39,979
336
39,643
441
1.1
(16)
(4)
Total Group wholesale
221,922
1,265
220,657
2,408
1.1
209
9
 
 
 
 
 
 
 
 
Group total
414,090
4,182
409,908
6,445
1.6
1,744
42
 
 
 
 
 
 
 
 
Traded loans
2,474
n/a
2,474
 
 
 
 
Loans and advances designated at fair value
17,913
n/a
17,913
 
 
 
 
Loans and advances held at fair value
20,387
n/a
20,387
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and advances
434,477
4,182
430,295
 
 
 
 
 
1
Excluding impairment charges on available for sale investments and reverse repurchase agreements. Q316 impairment charges represent 9 months charge, whereas December 2015 impairment charges represent 12 months charge. 
 
2
Excludes Africa Banking discontinued operation.
 
 
Condensed Consolidated Financial Statements
 
 Consolidated summary income statement
 
Nine months ended
Nine months ended
 
30.09.16
30.09.15
 
£m
£m
Total income net of insurance claims
16,459
17,592
Credit impairment charges and other provisions
(1,720)
(1,208)
Net operating income
14,739
16,384
Operating expenses
(10,753)
(10,176)
Litigation and conduct
(1,266)
(2,665)
Operating expenses
(12,019)
(12,841)
Other net income/(expenses)
180
(322)
Profit before tax
2,900
3,221
Tax charge
(1,043)
(985)
Profit after tax in respect of continuing operations
1,857
2,236
Profit after tax in respect of discontinued operation
520
525
Profit after tax
2,377
2,761
 
 
 
Attributable to:
 
 
Ordinary equity holders of the parent
1,524
2,028
Other equity holders
318
238
Total equity holders
1,842
2,266
Non-controlling interests in respect of continuing operations
255
247
Non-controlling interests in respect of discontinued operation
280
248
Profit after tax
2,377
2,761
 
 
 
Earnings per share
 
 
Basic earnings per ordinary share1
9.6p
12.4p
 
1
The profit after tax attributable to other equity holders of £318m (Q315 YTD: £238m) is offset by a tax credit recorded in reserves of £89m (Q315 YTD: £48m). The net amount of £229m (Q315 YTD: £190m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders’ equity.
 
 
Consolidated summary balance sheet
 
 
 
As at
As at
 
30.09.16
31.12.15
Assets
£m
£m
Cash and balances at central banks
91,984
49,711
Items in the course of collection from other banks
1,126
1,011
Trading portfolio assets
80,522
77,348
Financial assets designated at fair value
94,052
76,830
Derivative financial instruments
409,858
327,709
Financial investments
68,756
90,267
Loans and advances to banks
49,758
41,349
Loans and advances to customers
419,436
399,217
Reverse repurchase agreements and other similar secured lending
17,444
28,187
Goodwill and intangible assets
7,517
8,222
Non current assets classified as held for sale
72,301
7,364
Other assets
11,282
12,797
Total assets
1,324,036
1,120,012
 
 
 
Liabilities
 
 
Deposits from banks
64,515
47,080
Items in the course of collection due to other banks
863
1,013
Customer accounts
438,510
418,242
Repurchase agreements and other similar secured borrowing
23,098
25,035
Trading portfolio liabilities
35,524
33,967
Financial liabilities designated at fair value
111,579
91,745
Derivative financial instruments
404,421
324,252
Debt securities in issue1
70,297
69,150
Subordinated liabilities
23,605
21,467
Non current liabilities classified as held for sale
66,917
5,997
Other liabilities
14,587
16,200
Total liabilities
1,253,916
1,054,148
 
 
 
Equity
 
 
Called up share capital and share premium
21,812
21,586
Other reserves
6,341
1,898
Retained earnings
29,334
31,021
Shareholders' equity attributable to ordinary shareholders of the parent
57,487
54,505
Other equity instruments
6,442
5,305
Total equity excluding non-controlling interests
63,929
59,810
Non-controlling interests
6,191
6,054
Total equity
70,120
65,864
 
 
 
Total liabilities and equity
1,324,036
1,120,012
 
 
1
Debt securities in issue include covered bonds of £12,482m (December 2015: £12,300m).
 
Consolidated statement of changes in equity
 
 
Called up share capital and share premium
Other equity instruments
Other reserves
Retained earnings
Total
Non-controlling interests
Total
equity
Nine months ended 30.09.16
£m
£m
£m
£m
£m
£m
£m
Balance as at 1 January 2016
21,586
5,305
1,898
31,021
59,810
6,054
65,864
Profit after tax
-
318
-
1,284
1,602
255
1,857
Other comprehensive profit after tax for the period
-
-
3,787
(1,743)
2,044
3
2,047
Total comprehensive income net of tax from continuing operations
-
318
3,787
(459)
3,646
258
3,904
Total comprehensive income net of tax from discontinued operation
-
-
646
240
886
933
1,819
Total comprehensive income for the period
-
318
4,433
(219)
4,532
1,191
5,723
Issue of shares
226
-
-
373
599
-
599
Issue and exchange of equity instruments
-
1,132
-
-
1,132
-
1,132
Dividends
-
-
-
(757)
(757)
(464)
(1,221)
Coupons paid on other equity instruments
-
(318)
-
89
(229)
-
(229)
Redemption and buy back of capital instruments1
-
-
-
(417)
(417)
(1,170)
(1,587)
Treasury shares
-
-
10
(404)
(394)
-
(394)
Net equity impact of partial BAGL disposal
-
-
-
(349)
(349)
601
252
Other movements
-
5
-
(3)
2
(21)
(19)
Balance as at 30 September 2016
21,812
6,442
6,341
29,334
63,929
6,191
70,120
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended 30.09.16
 
 
 
 
 
 
 
Balance as at 1 July 2016
21,763
5,314
5,695
30,082
62,854
6,566
69,420
Profit after tax
-
110
-
330
440
69
509
Other comprehensive profit after tax for the period
-
-
563
(981)
(418)
1
(417)
Total comprehensive income net of tax from continuing operations
-
110
563
(651)
22
70
92
Total comprehensive income net of tax from discontinued operation
-
-
68
84
152
371
523
Total comprehensive income for the period
-
110
631
(567)
174
441
615
Issue of shares
49
-
-
147
196
-
196
Issue and exchange of equity instruments
-
1,132
-
-
1,132
-
1,132
Dividends
-
-
-
(169)
(169)
(184)
(353)
Coupons paid on other equity instruments
-
(110)
-
31
(79)
-
(79)
Redemption and buy back of capital instruments1
-
-
-
(164)
(164)
(620)
(784)
Treasury shares
-
-
15
(20)
(5)
-
(5)
Net equity impact of partial BAGL disposal
-
-
-
-
-
-
-
Other movements
-
(4)
-
(6)
(10)
(12)
(22)
Balance as at 30 September 2016
21,812
6,442
6,341
29,334
63,929
6,191
70,120
 
 
 
 
 
 
As at
As at
As at
 
30.09.16
30.06.16
31.12.15
Other reserves
£m
£m
£m
Currency translation reserve
2,414
1,699
(623)
Available for sale reserve
17
7
317
Cash flow hedging reserve
2,957
3,051
1,261
Other2
953
938
943
Total
6,341
5,695
1,898
 
 
 
1
Redemption and buy back of capital instruments is made up of £408m relating to the redemption of preference shares and £9m relating to the buy back of Upper Tier 2 notes.
2
As at 30 September 2016, there was a credit balance of £1,011m (June 2016: £1,011m credit) in other reserves relating to the excess repurchase price paid over nominal of redeemed ordinary and preference shares issued by the group and a debit balance of £58m (June 2016: £73m debit) in other reserves relating to treasury shares.
 
 
Barclays PLC Parent Company Balance Sheet
 
Barclays PLC Parent Company Summary Balance Sheet
 
 
 
As at
As at
 
30.09.16
31.12.15
Assets
£m
£m
Investments in subsidiary
36,553
35,303
Loans and advances to subsidiary
19,087
7,990
Derivative financial instrument
267
210
Other assets
61
133
Total assets
55,968
43,636
 
 
 
Liabilities
 
 
Deposits from banks
516
494
Subordinated liabilities
3,680
1,766
Debt securities in issue
15,407
6,224
Other liabilities
17
-
Total liabilities
19,620
8,484
 
 
 
Equity
 
 
Called up share capital
4,236
4,201
Share premium account
17,576
17,385
Other equity instruments
6,453
5,321
Capital redemption reserve
394
394
Retained earnings
7,689
7,851
Total shareholders' equity
36,348
35,152
Total liabilities and shareholders' equity
55,968
43,636
 
 
Investment in subsidiary
The investment in subsidiary of £36,553m (December 2015: £35,303m) represents investments made into Barclays Bank PLC, including £6,453m (December 2015: £5,321m) of Additional Tier 1 (AT1) securities. The increase of £1,250m was mainly driven by a $1.5bn AT1 issuance during the third quarter.
 
Loans and advances to subsidiary, subordinated liabilities and debt securities in issue
For the nine months ended September 2016, Barclays PLC issued $2.1bn of Fixed Rate Subordinated Notes included within the subordinated liabilities balance of £3,680m (2015: £1,766m), $6.7bn of Fixed Rate Senior Notes, Yen 20bn of Fixed Rate Senior Notes, €1.7bn Fixed and Floating Rate Senior Notes, £1.3bn of Fixed Rate Senior Notes and AUD 0.2bn of Fixed Rate Senior Notes included within the debt securities in issue balance of £15,407m (2015: £6,224m). The proceeds raised through the subordinated liabilities and debt securities issuances were used to invest in Barclays Bank PLC in each case with a ranking corresponding to the notes issued by Barclays PLC and included within the loans and advances to subsidiary balance of £19,087m (2015: £7,990m).
 
Management of internal investments, loans and advances
Barclays PLC retains the discretion to manage the nature of its internal investments in subsidiaries according to their regulatory and business needs. As we implement our structural reform programme, Barclays PLC will invest capital and funding to Barclays Bank PLC and other Group subsidiaries such as the Group service company, the US IHC and the UK ring-fenced bank
 
Capital
 
CRD IV capital
Barclays’ current regulatory requirement is to meet a fully loaded CRD IV CET1 ratio comprising the required 4.5% minimum CET1 ratio requirement and, phased in from 2016, a Combined Buffer Requirement currently expected to comprise of a Capital Conservation Buffer (CCB) of 2.5% and a Globally Systemically Important Institution (G-SII) buffer of 2%. In addition, Barclays’ Pillar 2A requirement as per the PRA’s Individual Capital Guidance (ICG) for 2016 based on a point in time assessment is 3.9% of which 56% will need to be met in CET1 form, equating to approximately 2.2% of RWAs. The Pillar 2A requirement is subject to at least annual review, and all capital, RWA and leverage calculations reflect Barclays’ interpretation of the current rules.
 
In addition, a Counter-Cyclical Capital Buffer (CCCB) is required. On 22 September 2016 the Financial Policy Committee reaffirmed that it expects to maintain a CCCB of 0% on UK exposures until at least June 2017. Other national authorities also determine the appropriate CCCBs that should be applied to exposures in their jurisdiction. During 2016, CCCBs started to apply for Barclays’ exposures to other jurisdictions; however based on current exposures these are not material.
As at 30 September 2016, Barclays’ CET1 ratio was 11.6% which exceeds the 2016 transitional minimum requirement of 7.8% including the minimum 4.5% CET1 ratio requirement, 2.2% of Pillar 2A, a 0.625% CCB buffer, a 0.5% G-SII buffer and a 0% CCCB.
 
 
Capital ratios 
As at
As at
As at
30.09.16
30.06.16
31.12.15
Fully loaded CET11,2
11.6%
11.6%
11.4%
PRA Transitional Tier 13,4
14.8%
14.6%
14.7%
PRA Transitional Total Capital3,4
18.8%
18.7%
18.6%
 
 
 
 
Capital resources 
£m
£m
£m
Shareholders' equity (excluding non-controlling interests) per the balance sheet
63,929
62,854
59,810
Less: other equity instruments (recognised as AT1 capital)
(6,442)
(5,314)
(5,305)
Adjustment to retained earnings for foreseeable dividends
(276)
(297)
(631)
Minority interests (amount allowed in consolidated CET1)
1,695
1,501
950
 
 
 
 
Other regulatory adjustments and deductions:
 
 
 
Additional value adjustments (PVA)
(1,742)
(2,092)
(1,602)
Goodwill and intangible assets
(8,847)
(8,552)
(8,234)
Deferred tax assets that rely on future profitability excluding temporary differences
(623)
(670)
(855)
Fair value reserves related to gains or losses on cash flow hedges
(2,952)
(3,046)
(1,231)
Excess of expected losses over impairment
(1,272)
(1,475)
(1,365)
Gains or losses on liabilities at fair value resulting from own credit
72
(177)
127
Defined-benefit pension fund assets
(40)
(204)
(689)
Direct and indirect holdings by an institution of own CET1 instruments
(50)
(50)
(57)
Deferred tax assets arising from temporary differences (amount above 10% threshold)
(49)
-
-
Other regulatory adjustments
(226)
(121)
(177)
Fully loaded CET1 capital 
43,177
42,357
40,741
 
 
 
 
Additional Tier 1 (AT1) capital
 
 
 
Capital instruments and related share premium accounts
6,442
5,314
5,305
Qualifying AT1 capital (including minority interests) issued by subsidiaries
5,658
5,885
6,718
Other regulatory adjustments and deductions
(130)
(130)
(130)
Transitional AT1 capital5
11,970
11,069
11,893
PRA Transitional Tier 1 capital
55,147
53,426
52,634
 
 
 
 
Tier 2 (T2) capital
 
 
 
Capital instruments and related share premium accounts
3,631
2,890
1,757
Qualifying T2 capital (including minority interests) issued by subsidiaries
11,664
12,366
12,389
Other regulatory adjustments and deductions
(254)
(254)
(253)
PRA Transitional total regulatory capital
70,188
68,428
66,527
 
 
1
The transitional regulatory adjustments to CET1 capital are no longer applicable resulting in CET1 capital on a fully loaded basis being equal to that on a transitional basis.
2
The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays’ Tier 2 Contingent Capital Notes was 12.8% based on £47.8bn of transitional CRD IV CET1 capital and £373bn of RWAs.
3
The PRA transitional capital is based on the PRA Rulebook and accompanying supervisory statements.
4
As at 30 September 2016, Barclays’ fully loaded Tier 1 capital was £49,930m, and the fully loaded Tier 1 ratio was 13.4%. Fully loaded total regulatory capital was £66,185m and the fully loaded total capital ratio was 17.7%. 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.
5
Of the £12bn transitional AT1 capital, fully loaded AT1 capital used for the leverage ratio comprises the £6.4bn capital instruments and related share premium accounts, £0.4bn qualifying minority interests and £0.1bn capital deductions. It excludes legacy Tier 1 capital instruments issued by subsidiaries that are subject to grandfathering.
 
 Movement in CET1 capital
Three months ended
Nine months ended
 
30.09.16
30.09.16
 
£m
£m
Opening CET1 capital
42,357
40,741
 
 
 
Profit for the period attributable to equity holders
524
1,842
Own credit
249
(55)
Dividends paid and foreseen
(228)
(631)
Increase in retained regulatory capital generated from earnings
545
1,156
 
 
 
Net impact of share schemes
191
205
Available for sale reserves
10
(300)
Currency translation reserves
715
3,037
Other reserves
(153)
(781)
Increase in other qualifying reserves
763
2,161
 
 
 
Retirement benefit reserve
(997)
(1,756)
Defined-benefit pension fund asset deduction
164
649
Net impact of pensions
(833)
(1,107)
 
 
 
Minority interests
194
745
Additional value adjustments (PVA)
350
(140)
Goodwill and intangible assets
(295)
(613)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences
47
232
Excess of expected loss over impairment
203
93
Direct and indirect holdings by an institution of own CET1 instruments
-
7
Deferred tax assets arising from temporary differences (amount above 10% threshold)
(49)
(49)
Other regulatory adjustments
(105)
(49)
Increase in regulatory capital due to adjustments and deductions
345
226
 
 
 
Closing CET1 capital
43,177
43,177
 
 
 
The CET1 ratio improved to 11.6% (December 2015: 11.4%) primarily driven by an increase in CET1 capital of £2.4bn to £43.2bn as a result of strong profits of £1.8bn generated in the year, after absorbing the impact of notable items. Overall, regulatory capital generated from earnings increased CET1 capital by £1.2bn. Other significant movements in the year were:
 
 
 
A £2.2bn increase in other qualifying reserves including a £3bn increase in the currency translation reserve as USD, EUR and ZAR strengthened against GBP; partially offset by a £0.4bn decrease as a result of preference share redemptions and a £0.3bn decrease in AFS reserve
 
 
 
A £1.1bn decrease, net of tax, as a result of movements relating to pensions. The UKRF, which is the Group’s main pension scheme, moved from a £0.8bn surplus to a £1.1bn deficit. The movement was driven by an increase in the liability values, mainly due to a decrease in the discount rate to 2.31%pa (2015: 3.82%pa). The increase in liabilities was partially offset by an increase in asset values driven by higher asset performance relative to the discount rate and the removal of the capital deduction for the UKRF assets in December 2015
 
 
Transitional AT1 capital remained flat in the period as the redemption of £1.2bn of end point non qualifying preference shares and tier one notes was offset by the issuance of $1.5bn of end point qualifying AT1 capital instruments
 
 
Risk Weighted Assets
 
Risk weighted assets (RWAs) by risk type and business
 
 
Credit risk
 
Counterparty credit risk
 
Market risk
 
Operational risk
Total RWAs
 
Std
IRB
 
Std
IRB
Settle-ment Risk
 
CVA
Std
IMA
 
 
 
As at 30.09.16
£m
£m
 
£m
£m
£m
 
£m
£m
£m
 
£m
£m
Barclays UK
5,886
49,183
 
9
               -
               -
 
39
               -
               -
 
12,293
67,410
Barclays International
51,498
82,020
 
14,201
13,945
82
 
4,931
11,485
8,900
 
27,538
214,600
Head Office1
8,527
25,174
 
43
1,088
-
 
844
580
2,560
 
8,685
47,501
Barclays Core
65,911
156,377
 
14,253
15,033
82
 
5,814
12,065
11,460
 
48,516
329,511
Barclays Non-Core
7,009
11,037
 
1,740
7,435
2
 
4,287
695
3,526
 
8,144
43,875
Barclays Group
72,920
167,414
 
15,993
22,468
84
 
10,101
12,760
14,986
 
56,660
373,386
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at 30.06.16
 
 
 
 
 
 
 
 
 
 
 
 
 
Barclays UK
5,795
48,656
 
10
-
-
 
83
-
-
 
12,574
67,118
Barclays International
50,607
82,219
 
11,754
14,401
57
 
4,078
9,923
9,008
 
27,257
209,304
Head Office1
8,038
22,954
 
33
935
-
 
524
414
2,279
 
8,003
43,180
Barclays Core
64,440
153,829
 
11,797
15,336
57
 
4,685
10,337
11,287
 
47,834
319,602
Barclays Non-Core
7,335
10,813
 
1,911
9,797
1
 
3,163
782
4,038
 
8,826
46,666
Barclays Group
71,775
164,642
 
13,708
25,133
58
 
7,848
11,119
15,325
 
56,660
366,268
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As at 31.12.15
 
 
 
 
 
 
 
 
 
 
 
 
 
Barclays UK
6,562
50,763
 
26
-
-
 
-
-
-
 
12,174
69,525
Barclays International
45,892
77,275
 
10,463
11,055
516
 
3,406
8,373
10,196
 
27,657
194,833
Head Office1
8,291
20,156
 
54
538
8
 
382
399
1,903
 
8,003
39,734
Barclays Core
60,745
148,194
 
10,543
11,593
524
 
3,788
8,772
12,099
 
47,834
304,092
Barclays Non-Core
8,704
12,797
 
1,653
9,430
1
 
7,480
1,714
3,679
 
8,826
54,284
Barclays Group
69,449
160,991
 
12,196
21,023
525
 
11,268
10,486
15,778
 
56,660
358,376
 
1
Includes Africa Banking discontinued operation.
 
 
Movement analysis of risk weighted assets
 
 
Credit risk
Counterparty credit risk
Market risk
Operational risk
Total RWAs
 
£bn
£bn
£bn
£bn
£bn
 
As at 01.01.16
230.4
33.7
37.6
56.7
358.4
 
Book size
1.1
6.5
0.5
-
8.1
 
Acquisitions and disposals
(4.7)
-
-
-
(4.7)
 
Book quality
(0.4)
-
0.6
-
0.2
 
Model updates
(2.9)
(2.0)
(0.3)
-
(5.2)
 
Methodology and policy
(0.2)
0.2
(0.5)
-
(0.5)
 
Foreign exchange movements1
17.0
0.1
-
-
17.1
 
As at 30.09.16
240.3
38.5
37.9
56.7
373.4
 
1
Foreign exchange movement does not include FX for modelled counterparty risk or modelled market risk.
 
RWAs increased £15.0bn to £373.4bn, due to:
 
 
Book size increased RWAs by £8.1bn primarily driven by increased trading activity as well as an increase in the fair value of derivative exposures in Barclays International and Non-Core
 
 
Acquisitions and disposals decreased RWAs by £4.7bn primarily driven by rundown in Non-Core, including the sale of Portuguese and Italian businesses
 
 
Model updates decreased RWAs by £5.2bn primarily driven by model changes in Barclays UK following approval from the PRA
 
 
Foreign exchange movements increased RWAs by £17.1bn due to the appreciation of ZAR, USD and EUR against GBP
 
 
Leverage
 
Leverage ratio and exposures
Effective 1 January 2016, Barclays is required to disclose a leverage ratio and an average leverage ratio applicable to the Group:
The leverage ratio is consistent with the December 2015 method of calculation and has been included in the table below. The calculation uses the end point CRR definition of Tier 1 capital for the numerator and the CRR definition of leverage exposure. The current expected minimum fully loaded requirement is 3%, but this could be impacted by the Basel Consultation on the Leverage Framework
 
The average leverage ratio as outlined by the PRA Supervisory Statement SS45/15 and the updated PRA rulebook is calculated as the capital measure divided by the exposure measure, where the capital and exposure measure is based on the average of the last day of each month in the quarter. The expected end point minimum requirement is 3.7% comprising of the 3% minimum requirement, a fully phased in G-SII additional leverage ratio buffer (G-SII ALRB) and a countercyclical leverage ratio buffer (CCLB)
 
At 30 September 2016, Barclays’ leverage ratio was 4.2% (December 2015: 4.5%) which was consistent with the average leverage ratio of 4.2%, which exceeds the transitional minimum requirement for Barclays of 3.175%, comprising of the 3% minimum requirement and a phased in G-SII ALRB. This already exceeds the expected end point minimum requirement of 3.7%.
 
In August 2016, the PRA implemented the Financial Policy Committee’s recommendation to allow firms to exclude claims on the central bank from the calculation of the leverage exposure measure, as long these are matched by deposits denominated in the same currency. The revised definition will flow through to firms’ obligations with regards to the minimum leverage ratio requirement, the countercyclical leverage ratio buffer and the additional leverage ratio buffer. Our reported leverage ratio and average leverage ratio disclosed below is unaffected by this announcement as firm’s are required to continue to disclose on the existing rules. The impact of the FPC’s recommendations would have been an improvement to the headroom of c.20bps for the reported leverage ratio and c.10bps for the average leverage ratio.
 
 
 
As at 30.09.16
As at 30.06.16
As at 31.12.15
Leverage exposure
£bn
£bn
£bn
Accounting assets
 
 
 
Derivative financial instruments
410
445
328
Cash collateral
74
79
62
Reverse repurchase agreements and other similar secured lending
17
20
28
Financial assets designated at fair value1
94
89
77
Loans and advances and other assets
729
718
625
Total IFRS assets
1,324
1,351
1,120
 
 
 
 
Regulatory consolidation adjustments
(8)
(10)
(10)
 
 
 
 
Derivatives adjustments
 
 
 
Derivatives netting
(373)
(402)
(293)
Adjustments to cash collateral
(59)
(64)
(46)
Net written credit protection
20
19
15
Potential Future Exposure (PFE) on derivatives
143
142
129
Total derivatives adjustments
(269)
(305)
(195)
 
 
 
 
Securities financing transactions (SFTs) adjustments
36
18
16
 
 
 
 
Regulatory deductions and other adjustments
(16)
(16)
(14)
Weighted off-balance sheet commitments
118
117
111
Total leverage exposure
1,185
1,155
1,028
 
 
 
 
Fully loaded CET 1 capital
43.2
42.4
40.7
Fully loaded AT1 capital
6.8
5.6
5.4
Fully loaded Tier 1 capital
49.9
47.9
46.2
 
 
 
 
Leverage ratio
4.2%
4.2%
4.5%
 
1
Included within financial assets designated at fair value are reverse repurchase agreements designated at fair value of £78bn (December 2015: £50bn).
 
The leverage ratio decreased to 4.2% (December 2015: 4.5%) primarily driven by an increase in the leverage exposure of £157bn to £1,185bn partially offset by a £3.8bn increase in fully loaded Tier 1 capital to £49.9bn (December 2015: £46.2bn):
 
Loans and advances and other assets increased by £104bn to £729bn. The increase was primarily driven by a £42bn increase in cash and balances at central banks due to an increase in the cash element of the Group liquidity pool, a £25bn increase in settlement balances following increased client activity, lending growth of £20bn within Barclays International and Barclays UK, and a £14bn increase in Africa banking assets held for sale reflecting the appreciation of ZAR against GBP
 
Reverse repurchase agreements increased £17bn to £95bn, primarily due to an increase in matched book trading
 
SFT adjustments increased by £20bn to £36bn, primarily as a result of a change in treatment of securities pre-positioned for use against undrawn central bank lending facilities
 
PFE on derivatives increased by £14bn to £143bn primarily driven by the appreciation of major currencies against GBP, partially offset by compression activity, sale of positions and maturity of trades
 
Weighted off balance sheet commitments increased by £7bn to £118bn primarily driven the appreciation of major currencies against GBP
 
 
The average leverage exposure measure for Q316 was £1,195bn resulting in an average leverage ratio of 4.2%. The CET1 capital held against the 0.175% transitional G-SII ALRB was £2.1bn. There is no current impact for the CCLB for the group. 
 
Shareholder Information
 
 
 
Results timetable1
Date
2016 Full Year Results and Audited Annual Report
23 February 2017
 
 
 
 
 
 
 
 
 
% Change3
Exchange rates2
30.09.16
30.06.16
30.09.15
 
30.06.16
30.09.15
Period end - USD/GBP
1.30
1.34
1.51
 
(3)
(14)
YTD Average - USD/GBP
1.39
1.43
1.53
 
(3)
(9)
3 Month average - USD/GBP
1.31
1.43
1.55
 
(8)
(15)
Period end - EUR/GBP
1.16
1.21
1.36
 
(4)
(15)
YTD average - EUR/GBP
1.25
1.29
1.37
 
(3)
(9)
3 Month average - EUR/GBP
1.18
1.27
1.39
 
(7)
(15)
Period end - ZAR/GBP
17.83
19.63
20.97
 
(9)
(15)
YTD average - ZAR/GBP
20.92
22.17
18.81
 
(6)
11
3 Month average - ZAR/GBP
18.47
21.51
20.08
 
(14)
(8)
 
 
 
 
 
 
 
Share price data
30.09.16
30.06.16
30.09.15
 
 
 
Barclays PLC (p)
167.80
138.60 
244.15 
 
 
 
Barclays PLC number of shares (m)
16,943
16,913 
16,784 
 
 
 
Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)
151.00
144.08 
170.20
 
 
 
Barclays Africa Group Limited (formerly Absa Group Limited)
number of shares (m)
848
848 
848 
 
 
 
 
 
 
 
 
 
 
For further information please contact
 
 
 
 
 
 
 
 
 
 
 
 
 
Investor relations
Media relations
 
 
Kathryn McLeland +44 (0) 20 7116 4943
Thomas Hoskin +44 (0) 20 7116 4755
 
 
 
 
 
 
 
 
 
More information on Barclays can be found on our website: home.barclays
 
 
 
 
 
 
 
 
 
Registered office
 
 
 
 
 
 
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839
 
 
 
 
 
 
 
Registrar
 
 
 
 
 
 
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.
Tel: 0371 384 20554 from the UK or +44 (0) 121 415 7004 from overseas.
 
 
 
 
 
 
 
 
 
1
Note that these announcement dates are provisional and subject to change).
2
The average rates shown above are derived from daily spot rates during the year.
3
The change is the impact to GBP reported information.
4
Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding public holidays in England and Wales.
 
Notes
 
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2016 to the corresponding nine months of 2015 and balance sheet analysis as at 30 September 2016 with comparatives relating to 30 June
Comparatives have been restated to reflect the implementation of the Group business reorganisation. These restatements were detailed in our announcement on 14 April 2016, accessible at home.barclays/results.
Notable items are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Notable items include: the impact of own credit in total income; the gain on disposal of Barclays’ share of Visa Europe Limited in total income; gains on US Lehman acquisition assets in total income; revision of the Education, Social Housing, and Local Authority (ESHLA) valuation methodology in total income; gain on valuation of a component of the defined retirement benefit liability in operating expenses; impairment of goodwill and other assets relating to businesses being disposed in operating expenses, provisions for UK customer redress in litigation and conduct; provisions for ongoing investigations and litigation including Foreign Exchange in litigation and conduct; and losses on sale relating to the Spanish, Portuguese and Italian businesses in other net income/(expenses).
References to underlying performance exclude the impact of notable items.
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 26 October 2016, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015, 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.
These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website home.barclays/results and from the SEC’s website at www.sec.gov.
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.
 
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 the Group’s future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, rundown of assets and businesses within Barclays Non-Core, 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 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, 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, future levels of notable items, 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 results of the 23 June 2016 referendum in the United Kingdom and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; the implementation of the strategic cost 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, 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 2015), 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.