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
 
February 23, 2017
 
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
 
Final Results dated 23 February 2017 
 
 


 
 



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: February 23, 2017
 
 
By: /s/ Marie Smith
----------------------
Marie Smith
Assistant Secretary
 
 
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: February 23, 2017
 
 
By: /s/ Marie Smith
----------------------
Marie Smith
Assistant Secretary
 
 
Barclays PLC
Results Announcement
 
31 December 2016
 
Table of Contents
Results Announcement
 
Page
 
Notes
 
1
 
Performance Highlights
 
2-6
 
Group Finance Director’s Review
 
7-11
 
Results by Business
 
 
● Barclays UK
 
12-14
 
● Barclays International
 
15-17
 
● Head Office
 
18
 
● Barclays Non-Core
● Discontinued Operation – Africa Banking
 
19-20
21
 
Quarterly Results Summary
 
22-24
 
Quarterly Core Results by Business
Quarterly Discontinued Operation Results
 
25-29
30
 
Performance Management
 
 
● Margins and Balances
 
31
 
● Remuneration
 
32-33
 
Risk Management
 
 
● Liquidity
 
34-37
 
● Capital
 
38-44
 
● Credit Risk
 
45-49
 
Statement of Director’s Responsibilities
 
50
 
Condensed Consolidated Financial Statements
 
51-55
 
Financial Statement Notes
 
56-64
 
Appendix: Non-IFRS performance measures
 
65-75
 
Shareholder Information
 
76
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839
Notes
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the year ended 31 December 2016 to the corresponding twelve months of 2015 and balance sheet analysis as at 31 December 2016 with comparatives relating to 31 December 2015. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.
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.
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.
Notable items as set out on page 5 are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Results excluding notable items have been included in the appendix.
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 22 February 2017, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2016, 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 20-F to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 20-F 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.
Non-IFRS performance measures
Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the business’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays’ management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.
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, structural reform, 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 2016), 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.
 
Performance Highlights
 
Transatlantic Consumer, Corporate and Investment Bank with Global Reach
Our strategy is on track with good progress in 2016
● Core returns:
● Core business performed well reflecting the benefits of diversification across customers and clients, geographies and products, with a 4% growth in profit before tax excluding notable items1 to £6,436m, delivering a 9.4% return on average allocated tangible equity that was £4bn higher at £41bn
● Return on average allocated tangible equity (RoTE) excluding notable items in Barclays UK was 19.3% and in Barclays International was 8.0%
● Non-Core rundown:
● £22bn reduction in risk weighted assets (RWAs) to £32bn, despite adverse foreign exchange (FX) movements
● Completed the sale of a number of businesses during the year, including the Asia wealth and investment management, and Southern European cards businesses in Q416, and signed the agreement for the sale of the French retail business in the quarter
● Good progress on the accelerated rundown of Non-Core; decision taken to close the unit six months ahead of plan on 30 June 2017 with RWAs expected to be approximately £25bn at this date
● Common Equity Tier 1 (CET1) ratio:
● Profit before tax of £3,230m drove strong organic capital ratio growth with 100bps of CET1 ratio accretion to 12.4%
● In Q416, the CET1 ratio increased 80bps through reduced RWAs, and an increase in reserves, including from the £1.1bn improvement in the deficit of the UK Retirement Fund (UKRF) defined benefit pension scheme
● On track to meeting revised end-state CET1 capital ratio of 150bps to 200bps above the minimum regulatory level
● Core costs:
● Decision taken in Q416, relating to 2016 compensation awards, to more closely align income statement recognition with performance awards and harmonise deferral structures across the Group
● The total incentive awards granted reduced 1% to £1,533m, with the changes to awards resulting in a £395m income statement charge in Q416, of which £390m was in Core. As a result, Core costs for 2016 exceeded the guidance of £13.0bn2 by that amount
● Core cost: income ratio excluding notable items improved from 62% to 61%
● 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
● Separation terms now agreed with BAGL, subject to regulatory approval. These terms include contributions totalling £765m payable over the period through to completion of the next sale of Barclays’ stake in BAGL to below 50%
● Remain on track to achieve regulatory deconsolidation, with further sell down subject to regulatory approval. Estimate in excess of 75bps Group CET1 ratio accretion on regulatory deconsolidation based on the 31 December 2016 BAGL share price and ZAR exchange rate
● Holding Company (HoldCo) transition:
● Progressed the transition to HoldCo funding with £12.1bn of issuance and £7.4bn of Operating Company (OpCo) capital and debt repurchased or redeemed
● Moody's upgraded the HoldCo’s long-term senior rating one notch to Baa2 on 12 December 2016
 
 
1
Notable items in Core totalled a net loss before tax of £420m (2015: £2,442m), as detailed on page 5. Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
2
Guidance excluded litigation and conduct charges and was adjusted for FX at Q316.
 
Group Chief Executive Officer’s Review
“A year ago we laid out our intention to accelerate the restructuring of Barclays and refocus our business as a transatlantic, consumer, corporate and investment bank, anchored in London and New York.
 
We have made strong progress against this agenda in 2016.
 
Our Core businesses, Barclays UK and Barclays International, are doing well, with profit before tax excluding notable items up 4% to £6.4bn.
 
Barclays UK produced an impressive RoTE of 19.3% excluding notable items, and continues to deliver market-leading innovation for customers, including voice security, contactless cash, a new direct investing platform, and in airing the first fraud prevention TV ad campaign from a major UK bank.
 
Barclays International delivered a RoTE of 8.0% excluding notable items. We brought further focus to the Corporate and Investment Bank, with income growing 6%, solidifying our position in the bulge bracket. We also saw strong growth in Consumer, Cards and Payments, as income increased 21%, driven by improvements in all key businesses.
 
Combined, the Core RoTE, excluding notable items, was 9.4%.
 
Accelerating the closure of Barclays Non-Core is a key part of realising the potential of Barclays. In 2016 we reduced Non-Core RWAs by £22bn, with £12bn of that reduction coming in the final quarter alone. Today, we are announcing that we will close Non-Core on 30 June 2017, six months earlier than previously targeted.
 
We reduced our ownership of Barclays Africa with an initial sale of 12.2% in May. In the fourth quarter we agreed with local management and submitted to regulators our proposed separation arrangements for Barclays Africa. This is a key milestone before a further reduction in our stake at the appropriate time.
 
The progress on our priorities resulted in organic profit generation which strengthened our CET1 capital ratio by 100 basis points in 2016 to 12.4%. This puts us well on track to meet our end-state target and we are well positioned to absorb headwinds over the next few years. Certain legacy conduct issues remain and we intend to make further progress on them.
 
In short, we have accomplished a lot in a year, and I am thankful to each and every one of our colleagues who have made this possible. Their efforts mean that, in 2017, we can begin to move on from the restructuring of Barclays, shifting our focus solely to the future, and in particular to how we can generate attractive, sustainable, and distributable returns for our shareholders.
 
This means increasing management focus on Barclays UK and Barclays International, the future of this firm. Together, they encompass a diverse set of market leading consumer and wholesale businesses, giving us growth opportunities across a wide waterfront, and resilience in earnings.
 
And we intend to build these businesses on a foundation of world class operations and technology, where core functions for our Group are standardised across the company, streamlining costs, driving high quality analytics, and hugely improving the experience of our customers and clients, which is key to driving loyalty and long term growth.
 
We are now just months away from completing the restructuring of Barclays, and I am more optimistic than ever for our prospects in 2017, and beyond.”
 
James E Staley, Group Chief Executive Officer
 
Barclays Group results
 
for the year ended
31.12.16
31.12.15
YoY
 
£m
£m
% Change
Total income
21,451
22,040
(3)
Credit impairment charges and other provisions
(2,373)
(1,762)
(35)
Net operating income 
19,078
20,278
(6)
Operating expenses
(14,565)
(13,723)
(6)
UK bank levy
(410)
(426)
4
Litigation and conduct
(1,363)
(4,387)
69
Total operating expenses
(16,338)
(18,536)
12
Other net income/(expenses)
490
(596)
 
Profit before tax
3,230
1,146
 
Tax charge
(993)
(1,149)
14
Profit/(loss) after tax in respect of continuing operations
2,237
(3)
 
Profit after tax in respect of discontinued operation1
591
626
(6)
Non-controlling interests in respect of continuing operations
(346)
(348)
1
Non-controlling interests in respect of discontinued operation1
(402)
(324)
(24)
Other equity holders2
(457)
(345)
(32)
Attributable profit/(loss)
1,623
(394)
 
 
 
 
 
Performance measures
 
 
 
Return on average tangible shareholders' equity2
3.6%
(0.7%)
 
Average tangible shareholders' equity (£bn)
48.7
47.7
 
Cost: income ratio
76%
84%
 
Loan loss rate (bps)
53
42
 
 
 
 
 
Basic earnings/(loss) per share2
10.4p
(1.9p)
 
Dividend per share 
3.0p
6.5p
 
 
 
 
 
Balance sheet and capital management
 
 
 
Tangible net asset value per share
290p
275p
 
Common equity tier 1 ratio
12.4%
11.4%
 
Common equity tier 1 capital
£45.2bn
£40.7bn
 
Risk weighted assets
£366bn
£358bn
 
Leverage ratio
4.6%
4.5%
 
Fully loaded tier 1 capital
£52.0bn
£46.2bn
 
Leverage exposure
£1,125bn
£1,028bn
 
 
 
 
 
Funding and liquidity
 
 
 
Group liquidity pool 
£165bn
£145bn
 
CRD IV liquidity coverage ratio
131%
133%
 
Loan: deposit ratio3
83%
86%
 
 
1
Refer to page 21 for further information on the Africa Banking discontinued operation.
2
The profit after tax attributable to other equity holders of £457m (2015: £345m) is offset by a tax credit recorded in reserves of £128m (2015: £70m). The net amount of £329m (2015: £275m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders’ equity.
3
Loan: deposit ratio for Barclays UK, Barclays International and Non-Core, excluding investment banking businesses.
 
Barclays Core and Non-Core
results for the year ended
Barclays Core
 
Barclays Non-Core
31.12.16
31.12.15
YoY
 
31.12.16
31.12.15
YoY
 
£m
£m
% Change 
 
£m
£m
% Change
Total income
22,615
21,428
6
 
(1,164)
612
 
Credit impairment charges and other provisions
(2,251)
(1,628)
(38) 
 
(122)
(134)
9
Net operating income/(expenses)
20,364
19,800
3
 
(1,286)
478
 
Operating expenses
(13,056)
(11,765)
(11)
 
(1,509)
(1,958)
23
UK bank levy
(334)
(338)
1 
 
(76)
(88)
14
Litigation and conduct
(1,117)
(3,887)
71
 
(246)
(500)
51
Total operating expenses
(14,507)
(15,990)
9
 
(1,831)
(2,546)
28
Other net income/(expenses)
159
(61)
 
 
331
(535)
 
Profit/(loss) before tax
6,016
3,749
60
 
(2,786)
(2,603)
(7)
Tax (charge)/credit
(1,975)
(1,479)
(34)
 
982
330
 
Profit/(loss) after tax
4,041
2,270
78
 
(1,804)
(2,273)
21
Non-controlling interests
(297)
(266)
(12)
 
(49)
(82)
40
Other equity holders
(394)
(282)
(40)
 
(63)
(63)
-
Attributable profit/(loss)1
3,350
1,722
95
 
(1,916)
(2,418)
21
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
8.4%
4.8%
 
 
 
 
 
Average allocated tangible equity (£bn)1
41.0
36.8
 
 
7.8
10.9
 
Period end allocated tangible equity (£bn)1
43.8
37.8
 
 
5.4
8.5
 
Cost: income ratio
64%
75%
 
 
n/m
n/m
 
Loan loss rate (bps)
58
45
 
 
22
23
 
Basic earnings/(loss) per share contribution
20.5p
10.7p
 
 
(11.3p)
(14.4p)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital management
 
 
 
 
 
 
 
Risk weighted assets1
£334bn
£304bn
 
 
£32bn
£54bn
 
Leverage exposure1
£1,024bn
£879bn
 
 
£101bn
£149bn
 
 
 
 
 
 
 
 
 
Notable items
 
 
 
 
 
 
 
Total income
 
 
 
 
 
 
 
Own credit
(35)
430
 
 
-
-
 
Gain on disposal of Barclays’ share of Visa Europe Limited
615
-
 
 
-
-
 
Gains on US Lehman acquisition assets
-
496
 
 
-
-
 
Litigation and conduct
 
 
 
 
 
 
 
Provisions for UK customer redress
(1,000)
(2,649)
 
 
-
(123)
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(1,036)
 
 
-
(201)
 
Operating expenses
 
 
 
 
 
 
 
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)
 
Other net expenses
 
 
 
 
 
 
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
(112)
 
 
-
(468)
 
Total notable items
(420)
(2,442)
 
 
-
(888)
 
 
Excluding notable items, the Core return on average allocated tangible equity was 9.4% (2015: 11.2%) and the Core basic earnings per share was 23.1p (2015: 24.9p). Excluding notable items, the Non-Core basic loss per share was 11.3p (2015: 10.2p).
 
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.
 
 
 
 
 
 
Year ended
Year ended
 
 
31.12.16
31.12.15
YoY
Income by business
£m
£m
% Change
Barclays UK
7,517
7,343
2
Barclays International
14,995
13,747
9
Head Office
103
338
(70)
Barclays Core
22,615
21,428
6
Barclays Non-Core
(1,164)
612
 
Barclays Group
21,451
22,040
(3)
 
Profit/(loss) before tax by business
 
 
 
Barclays UK
1,738
585
 
Barclays International
4,211
3,278
28
Head Office
67
(114)
 
Barclays Core
6,016
3,749
60
Barclays Non-Core
(2,786)
(2,603)
(7)
Barclays Group
3,230
1,146
 
 
 
Group Finance Director’s Review
 
2016 reflected the good operational performance of Barclays UK and Barclays International with the benefits of diversification across customers and clients, geographies and products coming through. The Core business generated a RoTE excluding notable items of 9.4% (2015: 11.2%) on a £4bn increased average allocated tangible equity base of £41bn. The Core business also 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. The accelerated Non-Core rundown resulted in a reduction in RWAs of £22bn to £32bn resulting in the decision to close the unit six months ahead of plan on 30 June 2017. Capital ratio progression towards end-state target of 150bps to 200bps above the minimum regulatory level was strong with a CET1 ratio of 12.4% (December 2015: 11.4%), largely reflecting profit generation in the period.
 
Group performance
 
●
Return on average tangible shareholders’ equity was 3.6% (2015: (0.7%)) and basic earnings per share was 10.4p (2015: (1.9p))
●
Profit before tax increased to £3,230m (2015: £1,146m). The Group performance reflected good Core results whilst being impacted by the Non-Core loss before tax of £2,786m (2015: £2,603m) and provisions for UK customer redress of £1,000m (2015: £2,772m). The appreciation of average USD and EUR against GBP positively impacted income and adversely affected impairment and operating expenses
●
Total income decreased 3% to £21,451m as Non-Core income reduced £1,776m to a net expense of £1,164m due to the acceleration of the Non-Core rundown, while Core income increased 6% to £22,615m driven by Barclays International
●
Credit impairment charges increased £611m to £2,373m including a £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling. This resulted in a 11bps increase in the loan loss rate to 53bps
●
Total operating expenses reduced 12% to £16,338m reflecting lower litigation and conduct charges. This was partially offset by the non-recurrence of the prior year gain of £429m on the valuation of a component of the defined retirement benefit liability, increased structural reform implementation costs, and a £150m charge in Barclays International in Q316, relating to a reduction in the real estate footprint which will generate savings in future periods. Operating expenses also included a £395m additional charge in Q416 relating to 2016 compensation awards
●
The effective tax rate on profit before tax decreased to 30.7% (2015: 100.3%) principally as a result of a reduction in non-deductible charges
●
Profit after tax in respect of continuing operations increased to £2,237m (2015: loss of £3m). Profit after tax in relation to the Africa Banking discontinued operation decreased 6% to £591m as increased credit impairment charges and operating expenses were partially offset by income growth
●
Notable items totalled a net loss before tax of £420m (2015: £3,330m) comprising provisions for UK customer redress of £1,000m (2015: £2,772m), a £615m (2015: £nil) gain on disposal of Barclays’ share of Visa Europe Limited and an own credit loss of £35m (2015: gain of £430m)
 
All performance commentary which follows excludes the impact of notable items. Refer to pages 68-71 for a reconciliation of results excluding notable items.
 
 
Core performance
 
●
The Core business generated a RoTE of 9.4% (2015: 11.2%) on an average allocated tangible equity base that was £4bn higher at £41bn, due to Core earnings generation and capital returned from the Non-Core
●
Profit before tax increased 4% to £6,436m reflecting good performance in both Barclays UK and Barclays International, with an improvement in the cost: income ratio to 61% (2015: 62%). This included the benefit of the appreciation of average USD and EUR against GBP
●
Total income increased 7% to £22,035m with Barclays International income increasing 10% to £14,531m, with growth in both Corporate and Investment Bank, and Consumer, Cards and Payments, while Barclays UK income was broadly in line at £7,366m (2015: £7,343m)
●
Credit impairment charges increased 38% to £2,251m resulting in a 13bps increase in the loan loss rate to 58bps, including a £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling, and a number of single name exposures
●
Total operating expenses increased 6% to £13,507m, including a £390m charge in Q416 relating to the 2016 compensation awards, increased structural reform implementation costs, and a £150m charge in Barclays International in Q316 relating to a reduction in the real estate footprint
 
 
Barclays UK
 
●
 
RoTE was 19.3% (2015: 21.1%) as profit before tax decreased 5% to £2,587m driven by an increase in credit impairment charges, partially offset by a reduction in total operating expenses
 
●
 
Total income was broadly in line at £7,366m (2015: £7,343m), within which:
 
–
 
Personal Banking income increased 1% to £3,762m, Barclaycard Consumer UK income decreased 2% to £2,022m and Wealth, Entrepreneurs & Business Banking (WEBB) income increased 1% to £1,582m
 
 
–
 
Net interest income increased 1% to £6,048m, with the net interest margin increasing 6bps to 3.62% reflecting higher margins on deposits, partially offset by lower mortgage margins
●
 
Credit impairment charges increased £190m to £896m due to a £200m charge in Q316 following the management review of the cards portfolio impairment modelling. Delinquency trends improved with the 30 and 90 day arrears rates on the cards portfolio reducing to 1.9% (2015: 2.3%) and 0.9% (2015: 1.2%) respectively
●
 
Total operating expenses reduced 1% to £3,882m reflecting savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, partially offset by structural reform programme implementation costs. The cost: income ratio was stable at 53% (2015: 53%)
 
Barclays International
 
●
 
RoTE was 8.0% (2015: 9.5%) as profit before tax decreased 3% to £3,747m including the impact of the appreciation of average USD and EUR against GBP. This was driven by increased credit impairment charges and operating expenses, partially offset by strong income growth in Consumer, Cards and Payments and Corporate and Investment Bank
●
 
Total income increased 10% to £14,531m, including the appreciation of average USD and EUR against GBP, within which:
 
–
 
Consumer, Cards and Payments income increased 21% to £3,998m, driven by continued growth across all key businesses
 
–
 
Corporate and Investment Bank income increased 6% to £10,533m as Markets income increased 9% to £5,279m, within which Credit increased 44% to £1,185m and Macro increased 9% to £2,304m, partially offset by a 6% reduction in Equities to £1,790m. Banking income increased 3% to £5,249m driven by strong growth in Banking fees, which increased 15% to £2,397m, partially offset by a 12% reduction in Corporate lending to £1,195m. Transactional banking was broadly in line at £1,657m (2015: £1,663m)
●
 
Credit impairment charges increased 47% to £1,355m, within which Consumer, Cards and Payments impairment increased 51% to £1,095m driven by growth in receivables, a change in portfolio mix and a £120m charge in Q316 following the management review of the cards portfolio impairment modelling. Delinquency trends in Barclaycard US worsened with the 30 and 90 day arrears rates increasing to 2.6% (2015: 2.2%) and 1.3% (2015: 1.1%) respectively. Corporate and Investment Bank impairment increased 31% to £260m primarily from impairment of a number of single name exposures
●
 
Total operating expenses increased 11% to £9,461m including an additional charge in Q416 relating to the 2016 compensation awards, higher structural reform programme implementation costs, a £150m charge in Q316 to reduce the real estate footprint and increased costs in Consumer, Cards and Payments driven by continued growth. These increases were partially offset by lower litigation and conduct costs
 
Head Office
 
●
 
Profit before tax was £102m (2015: loss of £380m) reflecting increased net income from treasury operations, structural reform programme implementation costs included in operating expenses in 2015, now included in the businesses, and increased other net income primarily due to recycling of the currency translation reserve to the income statement on completion of the sale of the Southern European cards business
 
Non-Core performance
 
●
 
Strong performance in the accelerated rundown of Non-Core resulted in RWAs decreasing £22.2bn to £32.1bn, despite the impact of the appreciation of USD and EUR against GBP, driven by a £10bn reduction in Derivatives, a £3bn reduction in Securities and loans, a £4bn reduction in Businesses RWAs and a £4bn reallocation to Head Office of operational risk RWAs associated with exited businesses and assets
 
●
 
Loss before tax increased to £2,786m (2015: £1,715m) driven by reduced income and increased losses resulting from continued progress on the rundown of Businesses, Securities and loans, and Derivatives, partially offset by lower operating expenses and an increase in other net income from business disposals
●
 
Total income reduced £1,776m to a net expense of £1,164m including fair value losses on the Education, Social Housing, and Local Authority (ESHLA) portfolio of £393m (2015: £359m). Excluding these fair value losses, negative income was £771m
 
–
 
Businesses income reduced £654m to £485m due to the completion of the sale of a number of income generating businesses
 
–
 
Securities and loans income decreased £288m to a net expense of £638m primarily driven by the impact of restructuring the ESHLA Lender Option Borrower Option (LOBO) loan terms in Q216
 
–
 
Derivatives income reduced £834m to a net expense of £1,011m primarily reflecting the costs of running down the portfolio
●
 
Credit impairment charges improved 9% to £122m driven by lower impairment charges in European businesses
●
 
Total operating expenses improved 14% to £1,831m reflecting cost savings from ceasing certain investment banking activities in a number of countries and the completion of the sale of a number of businesses, partially offset by a c.£200m increase in restructuring charges, which totalled c.£400m
●
 
Other net income of £331m (2015: net expense of £70m) included gains on the sale of Barclays Risk Analytics and Index Solutions, the Asia wealth and investment management business and the Southern European cards business, partially offset by the loss on sale of the French retail business of £455m
●
 
The intention is to close Non-Core on 30 June 2017 with approximately £25bn of RWAs
 
Group capital and leverage
 
●
 
The fully loaded CRD IV CET1 ratio increased to 12.4% (December 2015: 11.4%) reflecting an increase in CET1 capital of £4.5bn to £45.2bn, despite RWAs increasing by £7bn to £366bn
 
–
 
The increase in CET1 capital was largely driven by profits of £2.1bn 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
 
–
 
The increase in RWAs was principally due to the appreciation of ZAR, USD and EUR against GBP and business growth, which together more than offset RWA reductions in Non-Core
●
 
The leverage ratio increased to 4.6% (December 2015: 4.5%) driven by a £5.8bn increase in fully loaded Tier 1 capital to £52.0bn partially offset by an increase in leverage exposure of £97bn to £1,125bn. Total IFRS assets increased 8% to £1,213bn from December 2015 contributing to the 9% increase in leverage exposure
 
–
 
The IFRS asset increase was mainly driven by loans and advances and other assets which increased £82bn to £707bn. The increase was primarily due to the appreciation of major currencies against GBP, an increase in liquidity pool assets, and lending growth in Barclays UK and Barclays International. This was partially offset by the rundown and exit of Non-Core assets
 
–
 
Net derivative leverage exposure remained broadly flat as an increase in IFRS derivative assets of £19bn to £347bn was offset by an increase in IFRS derivative liabilities resulting in regulatory derivative netting increasing £20bn to £313bn. The increase was mainly within foreign exchange derivatives driven by an increase in trade volumes and appreciation of all major currencies against GBP
●
 
Tangible net asset value per share increased to 290p (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. The liquidity pool increased to £165bn (December 2015: £145bn), primarily driven by the appreciation of USD and EUR against GBP and a net increase in deposits and wholesale funding to support business growth. The Liquidity Coverage Ratio (LCR) was 131% (December 2015: 133%), equivalent to a surplus of £39bn (December 2015: £37bn)
●
 
Wholesale funding outstanding excluding repurchase agreements was £158bn (December 2015: £142bn). The increase was driven by the prudent management of the liquidity position, HoldCo issuance and the appreciation of USD and EUR against GBP. The Group issued £12.1bn equivalent of capital and term senior unsecured debt from the HoldCo of which £8.6bn equivalent and £0.7bn equivalent in public and private senior unsecured debt respectively, and £2.8bn of capital instruments. In the same period £7.4bn of Barclays Bank PLC (OpCo) capital and senior unsecured debt was repurchased or redeemed
●
 
On 12 December 2016, Moody’s upgraded both the HoldCo’s and OpCo’s long term senior unsecured ratings one notch to Baa2 and A1 respectively. The negative outlooks remained
 
Other matters
 
●
 
The acquisition of Barclays’ share of Visa Europe Limited by Visa Inc. completed on 21 June 2016 resulting in the recognition of a pre-tax gain on disposal of £615m in income in Q216
●
 
Additional UK customer redress provisions of £1,000m (2015: £2,772m) relating to Payment Protection Insurance (PPI) were recognised. £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. The remaining PPI provision as at December 2016 was £1,979m (December 2015: £2,106m)
●
 
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
●
 
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
●
 
The terms of the transitional services arrangements and related separation payments have been agreed with BAGL and submitted to relevant regulators as part of a request for approval for Barclays to sell down to below a 50% holding. These proposed separation terms include contributions totalling £765m, of which £27.5m was paid in 2016, with the remainder to be paid over the period through to completion of any initial sale of Barclays’ stake in BAGL to below 50%. The majority of these funds would be used by BAGL to separate from the Barclays group, including termination of the existing Master Services Agreement, making investments in branding, operations and technology, and covering separation related expenses. In addition, Barclays will contribute an amount equivalent to 1.5% of BAGL’s market capitalisation to a new Broad-Based Black Economic Empowerment scheme, equating to approximately £130m at the 31 December 2016 share price and ZAR exchange rate, and expects to incur some additional operating expenses in respect of delivering the separation of the businesses under the transitional services arrangements
●
 
It is estimated that the selldown of the Group’s interest in BAGL to a level that achieves regulatory deconsolidation will result in greater than 75bps accretion to the Group’s CET1 ratio, based on the BAGL share price of ZAR168.69 and ZAR exchange rate of 16.78 at 31 December 2016, after taking account of the separation costs referred to above
●
 
Certain legal proceedings and investigations relating to legacy issues remain outstanding, including a civil complaint filed by the DOJ against Barclays in December 2016 relating to mortgage-backed securities sold between 2005 and 2007 which Barclays is defending. Resolving outstanding legacy issues in an appropriate timeframe will continue to be a priority. Please see note 29 to the financial statements in the Annual Report for details of relevant matters
 
Dividends
 
●
 
A final dividend for 2016 of 2.0p per share will be paid on 5 April 2017, resulting in a total 3.0p dividend per share for the year
 
 
Outlook and Guidance
 
●
 
Barclays today announces the intention to close Non-Core early at 30 June 2017, at which point RWAs are expected to be approximately £25bn. The composition of the assets at that date are expected to consist primarily of residual derivatives, Italian mortgages and the ESHLA portfolio. Further information on the allocation of the residual Non-Core between Barclays UK and Barclays International will be provided on closure
 
●
 
Loss before tax in 2017 generated by Non-Core operations is expected to be approximately £1bn, excluding fair value gains or losses on the ESHLA portfolio. A greater proportion of this loss is expected to occur in H117 reflecting continued exit costs
 
●
 
The end-state CET1 capital ratio target has been revised to 150-200bps above the minimum regulatory level, providing 400-450bps buffer to the Bank of England stress test systemic reference point
 
 
Tushar Morzaria, Group Finance Director
 
Results by Business
 
 Barclays UK
Year ended
Year ended
 
 
31.12.16
31.12.15
YoY
Income statement information1
£m
£m
% Change
Net interest income
6,048
5,973
1
Net fee, commission and other income
1,469
1,370
7
Total income
7,517
7,343
2
Credit impairment charges and other provisions
(896)
(706)
(27)
Net operating income
6,621
6,637
-
Operating expenses
(3,792)
(3,464)
(9)
UK bank levy
(48)
(77)
38
Litigation and conduct
(1,042)
(2,511)
59
Total operating expenses
(4,882)
(6,052)
19
Other net expenses
(1)
-
 
Profit before tax
1,738
585
 
Attributable profit/(loss)
828
(47)
 
 
 
 
 
Balance sheet information
 
 
 
Loans and advances to customers at amortised cost (£bn)
166.4
166.1
 
Total assets (£bn)
209.6
202.5
 
Customer deposits (£bn)
189.0
176.8
 
Risk weighted assets (£bn)
67.5
69.5
 
 
 
 
 
Key facts
 
 
 
Average LTV of mortgage portfolio2
48%
49%
 
Average LTV of new mortgage lending2
63%
64%
 
Number of branches
1,305
1,362
 
Barclays mobile banking customers
5.7m
4.7m
 
30 day arrears rate - Barclaycard Consumer UK
1.9%
2.3%
 
 
 
 
 
Performance measures
 
 
 
Return on average allocated tangible equity
9.6%
(0.3%)
 
Average allocated tangible equity (£bn)
8.9
9.3
 
Cost: income ratio
65%
82%
 
Loan loss rate (bps)
52
42
 
Loan: deposit ratio
88%
94%
 
Net interest margin
3.62%
3.56%
 
 
 
 
 
Notable items
 
 
 
Total income
 
 
 
Gain on disposal of Barclays' share of Visa Europe Limited
151
-
 
Litigation and conduct
 
 
 
Provisions for UK customer redress
(1,000)
(2,431)
 
Operating expenses
 
 
 
Gain on valuation of a component of the defined retirement benefit liability
-
296
 
Total notable items
(849)
(2,135)
 
 
Excluding notable items, the Barclays UK return on average allocated tangible equity was 19.3% (2015: 21.1%).
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
2
Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.
 
Analysis of Barclays UK
Year ended
Year ended
 
 
31.12.16
31.12.15
YoY
Analysis of total income
£m
£m
% Change
Personal Banking
3,891
3,714
5
Barclaycard Consumer UK
2,022
2,065
(2)
Wealth, Entrepreneurs & Business Banking
1,604
1,564
3
Total income
7,517
7,343
2
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
Personal Banking
(183)
(194)
6
Barclaycard Consumer UK
(683)
(488)
(40)
Wealth, Entrepreneurs & Business Banking
(30)
(24)
(25)
Total credit impairment charges and other provisions
(896)
(706)
(27)
 
 
 
 
Analysis of loans and advances to customers at amortised cost (£bn)
 
 
 
Personal Banking
135.0
134.0
 
Barclaycard Consumer UK
16.5
16.2
 
Wealth, Entrepreneurs & Business Banking
14.9
15.9
 
Total loans and advances to customers at amortised cost
166.4
166.1
 
 
 
 
 
Analysis of customer deposits (£bn)
 
 
 
Personal Banking
139.3
131.0
 
Barclaycard Consumer UK
-
-
 
Wealth, Entrepreneurs & Business Banking
49.7
45.8
 
Total customer deposits
189.0
176.8
 
 
 
2016 compared to 2015
 
●
 
Profit before tax increased £1,153m to £1,738m reflecting lower provisions for UK customer redress. Profit before tax excluding notable items1 decreased 5% to £2,587m driven by an increase in credit impairment charges following the management review of the cards portfolio impairment modelling, partially offset by a reduction in total operating expenses
●
 
Total income, including a gain on disposal of Barclays’ share of Visa Europe Limited recognised in Personal Banking and Wealth, Entrepreneurs & Business Banking (WEBB) increased 2% to £7,517m. Total income excluding notable items was broadly in line at £7,366m (2015: £7,343m), within which:
 
–
 
Personal Banking income increased 1% to £3,762m driven by improved deposit margins and balance growth, partially offset by lower mortgage margins
 
–
 
Barclaycard Consumer UK income decreased 2% to £2,022m primarily as a result of the European Interchange Fee Regulation, which came into full effect from December 2015, offset by balance growth and gains from debt sales
 
–
 
WEBB income increased 1% to £1,582m reflecting improved margins and deposit growth, partially offset by reduced transactional fee income
 
–
 
Net interest income increased 1% to £6,048m due to balance growth and deposit pricing initiatives, partially offset by lower mortgage margins
 
–
 
Net interest margin increased 6bps to 3.62% reflecting higher margins on deposits, partially offset by lower mortgage margins
 
–
 
Net fee, commission and other income decreased 4% to £1,318m due to the impact of the European Interchange Fee Regulation in Barclaycard Consumer UK, which came into full effect from December 2015, and reduced fee and commission income in WEBB
●
 
Credit impairment charges increased 27% to £896m due to a £200m charge in Q316 following the management review of the cards portfolio impairment modelling. The 30 day and 90 day arrears rates on the cards portfolio improved year-on-year to 1.9% (2015: 2.3%) and 0.9% (2015: 1.2%) respectively
●
 
Total operating expenses, including provisions for UK customer redress of £1,000m (2015: £2,431m), reduced 19% to £4,882m. Total operating expenses excluding notable items reduced 1% to £3,882m reflecting savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, offset by structural reform programme implementation costs
●
 
The cost: income ratio excluding notable items was 53% (2015: 53%) and RoTE excluding notable items was 19.3% (2015: 21.1%)
●
 
Loans and advances to customers were stable at £166.4bn (December 2015: £166.1bn)
●
 
Total assets increased £7.1bn to £209.6bn primarily reflecting an increase in the allocated liquidity pool
●
 
Customer deposits increased 7% to £189.0bn primarily driven by higher balances in Personal Banking and WEBB
●
 
RWAs reduced £2.0bn to £67.5bn primarily driven by changes in the mortgages credit risk model
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
 
Barclays International
Year ended
Year ended
 
 
31.12.16
31.12.15
YoY
Income statement information1
£m
£m
% Change
Net interest income
4,512
4,324
4
Net trading income
4,580
3,782
21
Net fee, commission and other income
5,903
5,641
5
Total income
14,995
13,747
9
Credit impairment charges and other provisions
(1,355)
(922)
(47)
Net operating income
13,640
12,825
6
Operating expenses
(9,129)
(8,029)
(14)
UK bank levy
(284)
(253)
(12)
Litigation and conduct
(48)
(1,310)
96
Total operating expenses
(9,461)
(9,592)
1
Other net income
32
45
(29)
Profit before tax
4,211
3,278
28
Attributable profit
2,412
1,758
37
 
 
 
 
Balance sheet information
 
 
 
Loans and advances to banks and customers at amortised cost (£bn)2
211.3
184.1
 
Trading portfolio assets (£bn)
73.2
61.9
 
Derivative financial instrument assets (£bn)
156.2
111.5
 
Derivative financial instrument liabilities (£bn)
160.6
119.0
 
Reverse repurchase agreements and other similar secured lending (£bn)
13.4
24.7
 
Financial assets designated at fair value (£bn)
62.3
46.8
 
Total assets (£bn)
648.5
532.2
 
Customer deposits (£bn)3
216.2
185.6
 
Risk weighted assets (£bn)
212.7
194.8
 
 
 
 
 
Performance measures
 
 
 
Return on average allocated tangible equity
9.8%
7.2%
 
Average allocated tangible equity (£bn)
25.5
24.9
 
Cost: income ratio
63%
70%
 
Loan loss rate (bps)
63
49
 
Loan: deposit ratio
86%
88%
 
Net interest margin4
3.98%
3.80%
 
 
 
 
 
Notable items
 
 
 
Total income
 
 
 
Gain on disposal of Barclays’ share of Visa Europe Limited
464
-
 
Gains on US Lehman acquisition assets
-
496
 
Litigation and conduct
 
 
 
Provisions for UK customer redress
-
(218)
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(984)
 
Operating expenses
 
 
 
Gain on valuation of a component of the defined retirement benefit liability
-
133
 
Total notable items
464
(573)
 
 
Excluding notable items, the Barclays International return on average allocated tangible equity was 8.0% (2015: 9.5%).
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
2
As at 31 December 2016 loans and advances included £185.9bn (December 2015: £162.6bn) of loans and advances to customers (including settlement balances of £19.5bn (December 2015: £18.5bn) and cash collateral of £30.1bn (December 2015: £24.8bn)), and £25.4bn (December 2015: £21.5bn) of loans and advances to banks (including settlement balances of £1.7bn (December 2015: £1.6bn) and cash collateral of £6.3bn (December 2015: £5.7bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £39.7bn (December 2015: £32.1bn).
3
As at 31 December 2016 customer deposits included settlement balances of £16.6bn (December 2015: £16.3bn) and cash collateral of £20.8bn (December 2015: £15.9bn).
4
Barclays International margins have been restated to include interest earning lending within the investment banking business.
 
Analysis of Barclays International
 
 
 
Corporate and Investment Bank
Year ended
Year ended
 
31.12.16
31.12.15
YoY
Income statement information
£m
£m
% Change
Analysis of total income
 
 
 
Credit
1,185
824
44
Equities
1,790
1,912
(6)
Macro
2,304
2,108
9
Markets
5,279
4,844
9
Banking fees
2,397
2,087
15
Corporate lending
1,195
1,361
(12)
Transactional banking
1,657
1,663
-
Banking
5,249
5,111
3
Other
5
495
(99)
Total income
10,533
10,450
1
Credit impairment charges and other provisions
(260)
(199)
(31)
Total operating expenses
(7,624)
(7,929)
4
Profit before tax
2,650
2,322
14
 
 
 
 
Balance sheet information
 
 
 
Risk weighted assets (£bn)
178.6
167.3
 
 
 
 
 
Performance measures
 
 
 
Return on average allocated tangible equity
6.1%
5.4%
 
Average allocated tangible equity (£bn)
21.9
21.9
 
 
Excluding notable items, the CIB return on average allocated tangible equity was 6.1% (2015: 8.2%).
 
Consumer, Cards and Payments
 
 
 
Income statement information
 
 
 
Total income
4,462
3,297
35
Credit impairment charges and other provisions
(1,095)
(723)
(51)
Total operating expenses
(1,837)
(1,663)
(10)
Profit before tax
1,561
956
63
 
 
 
 
Balance sheet information
 
 
 
Loans and advances to banks and customers at amortised cost (£bn)
39.7
32.1
 
Customer deposits (£bn)
50.0
41.8
 
Risk weighted assets (£bn)
34.1
27.5
 
 
 
 
 
Key facts
 
 
 
30 days arrears rate - Barclaycard US
2.6%
2.2%
 
Total number of Barclaycard business clients
355,000
341,000
 
Value of payments processed
£296bn
£271bn
 
 
 
 
 
Performance measures
 
 
 
Return on average allocated tangible equity
31.4%
20.2%
 
Average allocated tangible equity (£bn)
3.6
3.0
 
 
Excluding notable items, the Consumer, Cards and Payments return on average allocated tangible equity was 19.1% (2015: 18.9%).
 
 2016 compared to 2015
 
●
 
Profit before tax increased 28% to £4,211m, including the gain on disposal of Barclays’ share of Visa Europe Limited. Profit before tax excluding notable items1 decreased 3% to £3,747m driven by an 11% increase in total operating expenses, and a 47% increase in impairment, partially offset by a 10% increase in total income
●
 
Total income excluding notable items increased 10% to £14,531m, including the appreciation of average USD and EUR against GBP, with Consumer, Cards and Payments income increasing 21% to £3,998m and Corporate and Investment Bank (CIB) income increasing 6% to £10,533m
–
 
Markets income increased 9% to £5,279m, within which:
 
–
 
Credit income increased 44% to £1,185m driven by strong performance in fixed income flow credit which benefitted from increased market volatility and client demand
 
 
–
 
Equities income decreased 6% to £1,790m with lower client activity in Asia and the simplification of the EMEA business, partially offset by improved performance in cash, derivatives and financing in H216
 
 
–
 
Macro income increased 9% to £2,304m driven by increased activity post the EU referendum decision and US elections
 
–
 
Banking income increased 3% to £5,249m within which:
 
 
–
 
Banking fees income increased 15% to £2,397m driven by higher debt underwriting and advisory fees, partially offset by lower equity underwriting fees
 
 
–
 
Corporate lending reduced 12% to £1,195m due to losses on fair value hedges and the non-recurrence of one-off work-out gains recognised in Q215
 
 
–
 
Transactional banking was broadly flat at £1,657m (2015: £1,663m) as income from higher deposit balances was offset by margin compression
 
–
 
Consumer, Cards and Payments income increased 21% to £3,998m driven by growth across all key businesses and the appreciation of average USD and EUR against GBP
 
●
 
Credit impairment charges increased 47% to £1,355m including the appreciation of average USD and EUR against GBP, within which:
–
 
CIB credit impairment charges increased 31% to £260m driven by the impairment of a number of single name exposures
 
–
 
Consumer, Cards and Payments credit impairment charges increased 51% to £1,095m primarily driven by balance growth, a change in portfolio mix and a £120m charge in Q316 following a management review of the cards portfolio impairment modelling
 
●
 
Total operating expenses excluding notable items increased 11%, within which:
–
 
CIB increased 12% to £7,624m. In addition to the appreciation of average USD against GBP this reflected an additional charge in Q416 relating to the 2016 compensation awards, higher restructuring costs, £150m of which related to reducing the real estate footprint in Q316, and higher structural reform programme implementation costs including those 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 costs
 
–
 
Consumer, Cards and Payments increased 7% to £1,837m due to continued business growth and the appreciation of average USD and EUR against GBP, partially offset by lower restructuring costs
 
●
 
The cost: income ratio excluding notable items was 65% (2015: 64%) and RoTE excluding notable items was 8.0% (2015: 9.5%)
●
 
Loans and advances to banks and customers at amortised cost increased £27.2bn to £211.3bn with CIB increasing £19.7bn to £171.7bn due to increased lending and cash collateral and the appreciation of USD and EUR against GBP. Consumer, Cards and Payments increased £7.6bn to £39.7bn driven by appreciation of USD and EUR against
GBP and growth in Barclaycard US, including the acquisition of the JetBlue credit card portfolio
●
 
Trading portfolio assets increased £11.3bn to £73.2bn due to an increase in client activity and appreciation of major currencies against GBP
●
 
Derivative financial instrument assets and liabilities increased £44.7bn to £156.2bn and £41.6bn to £160.6bn respectively, due to the appreciation of USD and EUR against GBP and decreases in forward interest rates
●
 
Financial assets designated at fair value increased £15.5bn to £62.3bn and reverse repurchase agreements and other similar lending decreased £11.3bn to £13.4bn. Since 2015, new reverse repurchase agreements in certain businesses have been designated at fair value to better align to the way the business manages the portfolio’s risk and
performance. On a net basis reverse repos have increased by £4.2bn as a result of increased matched book trading
●
 
Customer deposits increased £30.6bn to £216.2bn, with CIB increasing £22.6bn to £166.3bn primarily driven by increases in deposits cash collateral and the appreciation of USD and EUR against GBP. Consumer, Cards and Payments increased £8.2bn to £50.0bn driven by balance growth in Barclaycard US and Private Banking, and the
appreciation of USD and EUR against GBP
●
 
RWAs increased £17.9bn to £212.7bn, due to the appreciation of USD against GBP, and business growth, including the acquisition of the JetBlue credit card portfolio in Consumer, Cards and Payments
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
 
Head Office
Year ended
Year ended
 
 
31.12.16
31.12.15
YoY
Income statement information1
£m
£m
% Change
Net interest income
(183)
(305)
40
Net fee, commission and other income
286
643
(56)
Net operating income
103
338
(70)
Operating expenses
(135)
(272)
50
UK bank levy
(2)
(8)
75
Litigation and conduct
(27)
(66)
59
Total operating expenses
(164)
(346)
53
Other net income/(expenses)
128
(106)
 
Profit/(loss) before tax
67
(114)
 
Attributable profit
110
11
 
 
 
 
 
Balance sheet information
 
 
 
Total assets (£bn)2
75.2
59.4
 
Risk weighted assets (£bn)2
53.3
39.7
 
 
 
 
 
Performance measures
 
 
 
Average allocated tangible equity (£bn)
6.5
2.6
 
 
 
 
 
Notable items
 
 
 
Total income
 
 
 
Own credit
(35)
430
 
Litigation and conduct
 
 
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(52)
 
Other net expenses
 
 
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
(112)
 
Total notable items
(35)
266
 
 
2016 compared to 2015
 
●
 
Profit before tax was £67m (2015: loss of £114m). Profit before tax excluding notable items1 improved from a loss of £380m to a profit of £102m
●
 
Net operating income excluding notable items increased to £138m (2015: loss of £92m) primarily due to changes in net income from treasury operations
●
 
Total operating expenses excluding notable items reduced to £164m (2015: £294m) primarily due to a reduction in structural reform implementation costs now allocated to the businesses
●
 
Other net income excluding notable items increased to £128m (2015: £6m) primarily due to recycling of the currency translation reserve on the disposal of the Southern European cards business
●
 
Total assets increased £15.8bn to £75.2bn primarily driven by the appreciation of ZAR against GBP
●
 
RWAs increased £13.6bn to £53.3bn primarily driven by the appreciation of ZAR against GBP and the reallocation of operational risk RWAs from Non-Core associated with exited businesses and assets
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
2
Includes Africa Banking assets held for sale of £65.1bn (December 2015: £47.9bn) and risk weighted assets of £ 42.3bn (December 2015: £31.7bn).
 
Barclays Non-Core
Year ended
Year ended
 
 
31.12.16
31.12.15
YoY
Income statement information1
£m
£m
% Change
Net interest income
160
615
(74)
Net trading income
(1,703)
(706)
 
Net fee, commission and other income
379
703
(46)
Total income
(1,164)
612
 
Credit impairment charges and other provisions
(122)
(134)
9
Net operating (expenses)/income
(1,286)
478
 
Operating expenses
(1,509)
(1,958)
23
UK bank levy
(76)
(88)
14
Litigation and conduct
(246)
(500)
51
Total operating expenses
(1,831)
(2,546)
28
Other net income/(expenses)
331
(535)
 
Loss before tax
(2,786)
(2,603)
(7)
Attributable loss
(1,916)
(2,418)
21
 
 
 
 
Balance sheet information
 
 
 
Loans and advances to banks and customers at amortised cost (£bn)2
51.1
51.8
 
Derivative financial instrument assets (£bn)
188.7
213.7
 
Derivative financial instrument liabilities (£bn)
178.6
202.1
 
Reverse repurchase agreements and other similar secured lending (£bn)
0.1
3.1
 
Financial assets designated at fair value (£bn)
14.5
21.4
 
Total assets (£bn)
279.7
325.8
 
Customer deposits (£bn)3
12.5
20.9
 
Risk weighted assets (£bn)
32.1
54.3
 
 
 
 
 
Performance measures
 
 
 
Average allocated tangible equity (£bn)
7.8
10.9
 
Period end allocated tangible equity (£bn)
5.4
8.5
 
Loan loss rate (bps)
22
23
 
 
 
 
 
Notable items
 
 
 
Litigation and conduct
 
 
 
Provisions for UK customer redress
-
(123)
 
Provisions for ongoing investigations and litigation including Foreign Exchange
-
(201)
 
Operating expenses
 
 
 
Impairment of goodwill and other assets relating to businesses being disposed
-
(96)
 
Other net expenses
 
 
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
(468)
 
Total notable items
-
(888)
 
 
 
 
 
Analysis of total income
 
 
 
Businesses
485
1,139
(57)
Securities and loans
(638)
(350)
(82)
Derivatives
(1,011)
(177)
 
Total income
(1,164)
612
 
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
2
As at 31 December 2016 loans and advances included £38.5bn (December 2015: £40.4bn) of loans and advances to customers (including settlement balances of £0.1bn (December 2015: £0.3bn) and cash collateral of £17.3bn (December 2015: £19.0bn)), and £12.6bn (December 2015: £11.4bn) of loans and advances to banks (including settlement balances of £0.1bn (December 2015: £nil) and cash collateral of £12.1bn (December 2015: £10.1bn)).
3
As at 31 December 2016 customer deposits included settlement balances of £0.1bn (December 2015: £0.2bn) and cash collateral of £11.9bn (December 2015: £12.3bn).
 
 
2016 compared to 2015
 
●
 
Loss before tax increased to £2,786m (2015: £2,603m). Loss before tax excluding notable items1 increased to £2,786m (2015: £1,715m) driven by reduced income and increased losses resulting from continued progress on the rundown of Derivatives, Businesses and Securities and loans, partially offset by lower operating expenses and
higher other net income primarily from business and country exits
●
 
Total income reduced £1,776m to a net expense of £1,164m
–
 
Businesses income reduced £654m to £485m due to the impact of lower income following the completion of the sale of a number of income generating businesses and fees paid to Head Office relating to the termination of internal hedging and funding positions no longer required
–
 
Securities and loans income decreased £288m to a net expense of £638m primarily driven by the impact of restructuring the ESHLA portfolio, the non-recurrence of a £91m provision release relating to a litigation matter in Q115 and portfolio rundown. Fair value losses on the ESHLA portfolio were £393m (2015: £359m)
–
 
Derivatives income reduced £834m to a net expense of £1,011m principally reflecting the costs of running down the portfolio
●
 
Credit impairment charges improved 9% to £122m due to lower impairment charges in European businesses
 
●
 
Total operating expenses excluding notable items improved 14% to £1,831m reflecting cost savings from ceasing certain investment banking activities in a number of countries and the completion of the sale of a number of businesses, partially offset by a c.£200m increase in restructuring charges, which totalled c.£400m
 
●
 
Other net income excluding notable items of £331m (2015: net expense of £70m) included gains on the sale of Barclays Risk Analytics and Index Solutions, the Asia wealth and investment management business and the Southern European cards business, partially offset by the loss on sale of the French retail business of £455m
 
●
 
Loans and advances to banks and customers at amortised cost decreased £0.7bn to £51.1bn due to the sale of the Asia wealth and investment management business, and the rundown and exit of historical investment bank assets, partially offset by the recognition of £8bn of ESHLA loans at amortised cost, following the restructure of LOBO loan terms
 
●
 
Total assets decreased £46.1bn to £279.7bn due to lower derivative financial instrument assets which decreased £25.0bn to £188.7bn whilst derivative financial instrument liabilities decreased £23.5bn to £178.6bn mainly on continued rundown of the derivative back book
 
●
 
Leverage exposure decreased £47bn to £101bn due to reduced potential future exposure on derivatives and trading portfolio assets
 
●
 
RWAs reduced £22.2bn to £32.1bn despite the appreciation of USD and EUR against GBP, including a £10bn reduction in Derivatives, a £3bn reduction in Securities and loans, a £4bn reduction in Businesses RWAs, and a £4bn reallocation of operational risk RWAs to Head Office associated with business disposals and exits
 
 
1
Refer to the appendix on pages 65-75 for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document.
 
 
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 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 terms of the transitional services arrangements and related separation payments have been agreed with BAGL and submitted to relevant regulators as part of a request for approval for Barclays to sell down to below a 50% holding. These proposed separation terms include contributions totalling £765m, of which £27.5m was paid in 2016, with the remainder to be paid over the period through to completion of any initial sale of Barclays’ stake in BAGL to below 50%. The majority of these funds would be used by BAGL to separate from the Barclays group, including termination of the existing Master Services Agreement, making investments in branding, operations and technology, and covering separation related expenses. In addition, Barclays will contribute an amount equivalent to 1.5% of BAGL’s market capitalisation to a new Broad-Based Black Economic Empowerment scheme, equating to approximately £130m at the 31 December 2016 share price and ZAR exchange rate, and expects to incur some additional operating expenses in respect of delivering the separation of the businesses under the transitional services arrangements.
These proposed contributions have been taken into account in assessing whether any impairment of the BAGL disposal group was required in the Group’s balance sheet. No impairment of the BAGL disposal group was required at 31 December 2016, as the market value of BAGL less estimated costs to sell at the prevailing share price and ZAR exchange rate was £8.4bn, which was greater than the carrying asset value of BAGL at that date of £7.3bn, plus the proposed costs of separation referred to above.
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
Year ended
Year ended
 
31.12.16
31.12.15
YoY
Income statement information
£m
£m
% Change
Net interest income
2,169
1,950
11
Net fee, commission and other income
1,577
1,464
8
Total income
3,746
3,414
10
Credit impairment charges and other provisions
(445)
(353)
(26)
Net operating income
3,301
3,061
8
Operating expenses
(2,345)
(2,091)
(12)
UK bank levy
(65)
(50)
(30)
Total operating expenses
(2,410)
(2,141)
(13)
Other net income
6
7
(14)
Profit before tax
897
927
(3)
Profit after tax
591
626
(6)
Attributable profit
189
302
(37)
 
 
 
 
Balance sheet information
 
 
 
Total assets (£bn)1
65.1
47.9
 
Risk weighted assets (£bn)1
42.3
31.7
 
 
 
 
 
Key Facts
 
 
 
Period end - ZAR/£
16.78
23.14
 
Average - ZAR/£²
20.04
19.57
 
Barclays Africa Group Limited share price (ZAR)
168.69
143.49
 
Barclays Africa Group Limited number of shares (m)
848
848
 
 
1
Africa Banking assets held for sale and RWAs are reported in Head Office within Core.
2
The average rate is derived from daily spot rates during the year.
 
Quarterly Results Summary
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
Q416
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
2,523
2,796
2,530
2,688
 
2,726
2,692
2,664
2,526
Net fee, commission and other income
2,469
2,650
3,442
2,353
 
1,722
2,789
3,797
3,124
Total income
4,992
5,446
5,972
5,041
 
4,448
5,481
6,461
5,650
Credit impairment charges and other provisions 
(653)
(789)
(488)
(443)
 
(554)
(429)
(393)
(386)
Net operating income 
4,339
4,657
5,484
4,598
 
3,894
5,052
6,068
5,264
Operating expenses
(3,812)
(3,581)
(3,425)
(3,747)
 
(3,547)
(3,552)
(3,557)
(3,067)
UK bank levy 
(410)
-
-
-
 
(426)
-
-
-
Litigation and conduct
(97)
(741)
(447)
(78)
 
(1,722)
(699)
(927)
(1,039)
Total operating expenses
(4,319)
(4,322)
(3,872)
(3,825)
 
(5,695)
(4,251)
(4,484)
(4,106)
Other net income/(expenses)
310
502
(342)
20
 
(274)
(182)
(39)
(101)
Profit/(loss) before tax
330
837
1,270
793
 
(2,075)
619
1,545
1,057
Tax credit/(charge)
50
(328)
(467)
(248)
 
(164)
(133)
(324)
(528)
Profit/(loss) after tax in respect of continuing operations
380
509
803
545
 
(2,239)
486
1,221
529
Profit after tax in respect of discontinued operation
71
209
145
166
 
101
167
162
196
 
 
 
 
 
 
 
 
 
 
Attributable to:
 
 
 
 
 
 
 
 
 
Ordinary equity holders of the parent
99
414
677
433
 
(2,422)
417
1,146
465
Other equity holders
139
110
104
104
 
107
79
79
80
Non-controlling interests
213
194
167
174
 
177
157
158
180
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Total assets
1,213.1
1,324.0
1,351.3
1,248.9
 
1,120.0
1,236.5
1,196.7
1,416.4
Risk weighted assets
365.6
373.4
366.3
363.0
 
358.4
381.9
376.7
395.9
Leverage exposure
1,125.5
1,185.1
1,155.4
1,082.0
 
1,027.8
1,140.7
1,139.3
1,254.7
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
1.1%
3.6%
5.8%
3.8%
 
(20.1%)
3.6%
9.8%
4.0%
Average tangible shareholders' equity (£bn)
48.9
49.4
48.3
48.3
 
47.8
47.6
47.2
48.1
Cost: income ratio 
87%
79%
65%
76%
 
128%
78%
69%
73%
Loan loss rate (bps)
58
66
41
40
 
53
37
35
32
Basic earnings/(loss) per share
0.8p
2.6p
4.2p
2.7p
 
(14.4p)
2.6p
7.0p
2.9p
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
£m
 
£m
£m
£m
£m
Total income
 
 
 
 
 
 
 
 
 
Own credit
46
(264)
292
(109)
 
(175)
195
282
128
Gain on disposal of Barclays' share of Visa Europe Limited
-
-
615
-
 
-
-
-
-
Gains on US Lehman acquisition assets
-
-
-
-
 
-
-
496
-
Litigation and conduct
 
 
 
 
 
 
 
 
 
Provisions for UK customer redress
-
(600)
(400)
-
 
(1,450)
(290)
(850)
(182)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
-
 
(167)
(270)
-
(800)
Operating expenses
 
 
 
 
 
 
 
 
 
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)
-
-
-
Other net expenses
 
 
 
 
 
 
 
 
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
-
-
-
 
(261)
(201)
-
(118)
Total notable items
46
(864)
507
(109)
 
(2,149)
(566)
(72)
(543)
 
Excluding notable items, the Q416 Group return on average tangible shareholders’ equity was 0.7% (Q415: (1.9%)) and basic earnings/(loss) per share was 0.5p (Q415: (1.3p)).
 
 
 Barclays Core
 
 
 
 
 
 
 
 
 
 
Q416
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
2,577
2,718
2,491
2,591
 
2,555
2,557
2,510
2,371
Net fee, commission and other income
2,834
2,887
3,825
2,692
 
1,961
2,708
3,709
3,057
Total income
5,411
5,605
6,316
5,283
 
4,516
5,265
6,219
5,428
Credit impairment charges and other provisions 
(606)
(769)
(462)
(414)
 
(522)
(388)
(373)
(345)
Net operating income 
4,805
4,836
5,854
4,869
 
3,994
4,877
5,846
5,083
Operating expenses
(3,471)
(3,270)
(3,057)
(3,258)
 
(2,992)
(3,094)
(3,061)
(2,618)
UK bank levy 
(334)
-
-
-
 
(338)
-
-
-
Litigation and conduct
(46)
(639)
(420)
(12)
 
(1,634)
(419)
(819)
(1,015)
Total operating expenses
(3,851)
(3,909)
(3,477)
(3,270)
 
(4,964)
(3,513)
(3,880)
(3,633)
Other net income/(expenses)
164
4
(18)
9
 
(5)
13
14
(83)
Profit/(loss) before tax
1,118
931
2,359
1,608
 
(975)
1,377
1,980
1,367
Tax charge
(272)
(522)
(696)
(485)
 
(92)
(299)
(474)
(614)
Profit/(loss) after tax
846
409
1,663
1,123
 
(1,067)
1,078
1,506
753
Non-controlling interests
(76)
(57)
(80)
(84)
 
(81)
(54)
(64)
(68)
Other equity holders
(121)
(95)
(89)
(89)
 
(92)
(63)
(61)
(65)
Attributable profit/(loss)
649
257
1,494
950
 
(1,240)
961
1,381
620
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Total assets
933.4
964.3
972.2
883.6
 
794.2
862.0
830.5
919.4
Risk weighted assets
333.5
329.5
319.6
312.2
 
304.1
316.3
308.1
318.0
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
6.4%
2.7%
15.0%
9.9%
 
(12.8%)
10.4%
15.5%
7.1%
Average tangible equity (£bn)
42.4
41.8
40.4
39.3
 
38.1
37.5
35.9
35.6
Cost: income ratio 
71%
70%
55%
62%
 
110%
67%
62%
67%
Loan loss rate (bps)
61
74
45
42
 
57
39
38
35
Basic earnings/(loss) per share
4.0p
1.7p
9.0p
5.8p
 
(7.3p)
5.8p
8.4p
3.8p
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
£m
 
£m
£m
£m
£m
Total income
 
 
 
 
 
 
 
 
 
Own credit
46
(264)
292
(109)
 
(175)
195
282
128
Gain on disposal of Barclays' share of Visa Europe Limited
-
-
615
-
 
-
-
-
-
Gains on US Lehman acquisition assets
-
-
-
-
 
-
-
496
-
Litigation and conduct
 
 
 
 
 
 
 
 
 
Provisions for UK customer redress
-
(600)
(400)
-
 
(1,392)
(290)
(800)
(167)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
-
 
(167)
(69)
-
(800)
Operating expenses
 
 
 
 
 
 
 
 
 
Gain on valuation of a component of the defined retirement benefit liability
-
-
-
-
 
-
-
-
429
Other net expenses
 
 
 
 
 
 
 
 
 
Losses on sale relating to the Spanish, Portuguese and Italian businesses
-
-
-
-
 
(15)
-
-
(97)
Total notable items
46
(864)
507
(109)
 
(1,749)
(164)
(22)
(507)
 
Excluding notable items, the Q416 Core return on average allocated tangible equity was 5.8% (Q415: 6.3%) and the Core basic earnings per share was 3.7p (Q415: 3.6p).
 
Barclays Non-Core
 
 
 
 
 
 
 
 
 
 
Q416
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
(54)
78
40
96
 
171
135
154
155
Net trading income
(462)
(288)
(463)
(490)
 
(398)
(124)
(57)
(127)
Net fee, commission and other income
97
51
79
152
 
159
204
146
194
Total income
(419)
(159)
(344)
(242)
 
(68)
215
243
222
Credit impairment charges and other provisions 
(47)
(20)
(26)
(29)
 
(32)
(41)
(20)
(41)
Net operating (expenses)/income 
(466)
(179)
(370)
(271)
 
(100)
174
223
181
Operating expenses
(341)
(311)
(368)
(489)
 
(555)
(458)
(496)
(449)
UK bank levy 
(76)
-
-
-
 
(88)
-
-
-
Litigation and conduct
(51)
(102)
(27)
(66)
 
(89)
(279)
(108)
(24)
Total operating expenses
(468)
(413)
(395)
(555)
 
(732)
(737)
(604)
(473)
Other net income/(expenses)
146
498
(324)
11
 
(268)
(195)
(54)
(18)
Loss before tax
(788)
(94)
(1,089)
(815)
 
(1,100)
(758)
(435)
(310)
Tax credit/(charge)
322
194
229
237
 
(72)
166
150
86
(Loss)/profit after tax
(466)
100
(860)
(578)
 
(1,172)
(592)
(285)
(224)
Non-controlling interests
(14)
(13)
(12)
(10)
 
(19)
(21)
(21)
(20)
Other equity holders
(18)
(15)
(15)
(15)
 
(17)
(15)
(18)
(14)
Attributable (loss)/profit
(498)
72
(887)
(603)
 
(1,208)
(628)
(324)
(258)
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost
51.1
58.7
68.5
55.4
 
51.8
57.1
60.4
73.1
Derivative financial instrument assets
188.7
253.2
262.8
249.7
 
213.7
243.3
223.9
305.6
Derivative financial instrument liabilities
178.6
243.0
253.4
239.1
 
202.1
235.0
216.7
299.6
Reverse repurchase agreements and other similar secured lending
0.1
0.1
0.1
0.7
 
3.1
8.5
16.7
43.7
Financial assets designated at fair value
14.5
15.5
15.4
23.4
 
21.4
22.8
22.1
25.0
Total assets
279.7
359.8
379.1
365.4
 
325.8
374.5
366.2
497.0
Customer deposits
12.5
16.0
17.4
19.3
 
20.9
25.8
27.9
29.9
Risk weighted assets
32.1
43.9
46.7
50.9
 
54.3
65.6
68.6
77.9
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
6.5
7.6
7.9
9.0
 
9.7
10.2
11.3
12.4
Period end allocated tangible equity (£bn)
5.4
7.2
7.8
8.5
 
8.5
10.2
10.1
11.7
Loan loss rate (bps)
31
13
14
21
 
25
27
13
17
Basic (loss)/earnings per share contribution
(2.9p)
0.5p
(5.2p)
(3.6p)
 
(7.2p)
(3.7p)
(1.9p)
(1.5p)
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
£m
 
£m
£m
£m
£m
Litigation and conduct
 
 
 
 
 
 
 
 
 
Provisions for UK customer redress
-
-
-
-
 
(58)
-
(50)
(15)
Provisions for ongoing investigations and litigation including Foreign Exchange
-
-
-
-
 
-
(201)
-
-
Operating expenses
 
 
 
 
 
 
 
 
 
Impairment of goodwill and other assets relating to businesses being disposed
-
-
-
-
 
(96)
-
-
-
Other net expenses
 
 
 
 
 
 
 
 
 
Losses on sale relating to the Spanish, Portuguese and Italian business
-
-
-
-
 
(246)
(201)
-
(21)
Total notable items
-
-
-
-
 
(400)
(402)
(50)
(36)
 
 
 
 
 
 
 
 
 
 
Analysis of total income
 
 
 
 
 
 
 
 
 
Businesses
(73)
181
181
196
 
229
314
292
304
Securities and loans
161
(34)
(363)
(402)
 
(195)
(87)
-
(68)
Derivatives
(507)
(306)
(162)
(36)
 
(102)
(12)
(49)
(14)
Total income
(419)
(159)
(344)
(242)
 
(68)
215
243
222
 
Excluding notable items, the Non-Core basic loss per share was 2.9p (Q415: 5.1p).
 
Quarterly Core Results by Business
 
 
 Barclays UK
 
 
 
 
 
 
 
 
 
 
Q416
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
1,502
1,569
1,476
1,501
 
1,509
1,499
1,479
1,486
Net fee, commission and other income
326
374
467
302
 
325
375
325
345
Total income
1,828
1,943
1,943
1,803
 
1,834
1,874
1,804
1,831
Credit impairment charges and other provisions 
(180)
(350)
(220)
(146)
 
(219)
(154)
(166)
(167)
Net operating income 
1,648
1,593
1,723
1,657
 
1,615
1,720
1,638
1,664
Operating expenses
(989)
(904)
(947)
(952)
 
(920)
(925)
(970)
(649)
UK bank levy 
(48)
-
-
-
 
(77)
-
-
-
Litigation and conduct
(28)
(614)
(399)
(1)
 
(1,466)
(76)
(801)
(168)
Total operating expenses
(1,065)
(1,518)
(1,346)
(953)
 
(2,463)
(1,001)
(1,771)
(817)
Other net (expenses)/income
-
-
(1)
-
 
1
1
1
(3)
Profit/(loss) before tax
583
75
376
704
 
(847)
720
(132)
844
Attributable profit/(loss)
383
(163)
141
467
 
(1,078)
541
(174)
664
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Loans and advances to customers at amortised cost
166.4
166.6
166.0
166.2
 
166.1
166.7
166.1
166.0
Total assets
209.6
209.1
204.6
201.7
 
202.5
204.1
202.2
199.6
Customer deposits
189.0
185.5
181.7
179.1
 
176.8
173.4
171.6
168.7
Risk weighted assets
67.5
67.4
67.1
69.7
 
69.5
71.0
71.7
72.3
Net interest margin
3.56%
3.72%
3.56%
3.62%
 
3.58%
3.54%
3.54%
3.60%
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
18.2%
(7.1%)
6.6%
20.5%
 
(46.5%)
23.3%
(7.3%)
28.3%
Average allocated tangible equity (£bn)
8.6
8.7
9.0
9.3
 
9.2
9.3
9.4
9.4
Cost: income ratio 
58%
78%
69%
53%
 
134%
53%
98%
45%
Loan loss rate (bps)
42
82
52
34
 
51
36
40
40
 
 
 
 
 
 
 
 
 
 
Notable items
£m
£m
£m
£m
 
£m
£m
£m
£m
Total income
 
 
 
 
 
 
 
 
 
Gain on disposal of Barclays' share of Visa Europe Limited
-
-
151
-
 
-
-
-
-
Litigation and conduct
 
 
 
 
 
 
 
 
 
Provisions for UK customer redress
-
(600)
(400)
-
 
(1,391)
(73)
(800)
(167)
Operating expenses
 
 
 
 
 
 
 
 
 
Gain on valuation of a component of the defined retirement benefit liability
-
-
-
-
 
-
-
-
296
Total notable items
-
(600)
(249)
-
 
(1,391)
(73)
(800)
129
 
Excluding notable items, the Q416 Barclays UK return on average allocated tangible equity was 17.1% (Q415: 14.8%).
 
Analysis of Barclays UK
 
 
 
 
 
 
 
 
 
 
Q416
Q316
Q216
Q116
 
Q415
Q315
Q215
Q115
Analysis of total income
£m
£m
£m
£m
 
£m
£m
£m
£m
Personal Banking
934
970
1,068
919
 
945
938
905
927
Barclaycard Consumer UK
507
561
463
491
 
505
552
503
505
Wealth, Entrepreneurs & Business Banking
387
412
412
393
 
384
384
396
399
Total income
1,828
1,943
1,943
1,803
 
1,834
1,874
1,804
1,831
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
 
 
 
 
 
 
Personal Banking
(50)
(47)
(44)
(42)
 
(39)
(36)
(50)
(69)
Barclaycard Consumer UK
(118)
(291)
(169)
(105)
 
(176)
(111)
(106)
(95)
Wealth, Entrepreneurs & Business Banking
(12)
(12)
(7)
1
 
(4)
(7)
(10)
(3)
Total credit impairment charges and other provisions
(180)
(350)
(220)
(146)
 
(219)
(154)
(166)
(167)
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Personal Banking
135.0
135.3
134.7
134.7
 
134.0
134.5
134.4
134.3
Barclaycard Consumer UK
16.5
16.2
16.2
16.0
 
16.2
15.9
15.8
15.7
Wealth, Entrepreneurs & Business Banking
14.9
15.1
15.1
15.5
 
15.9
16.3
15.9
16.0
Total loans and advances to customers at amortised cost
166.4
166.6
166.0
166.2
 
166.1
166.7
166.1
166.0
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits