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 26, 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
 
3rd 2017 Quarter Results dated 26 October 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: October 26, 2017
 
 
By: /s/ Garth Wright
----------------------
Garth Wright
Assistant Secretary
 
 
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: October 26, 2017
 
 
By: /s/ Garth Wright
----------------------
Garth Wright
Assistant Secretary
 
 
 
 
 
 
 
 
 
Barclays PLC
 
Q3 2017 Results Announcement
 
30 September 2017
 
Performance Highlights
 
Transatlantic Consumer and Wholesale Bank with Global Reach
 
 
 
Improved Group profit before tax, reduced cost: income ratio and strong CET1 ratio accretion
in the nine months ended 30 September 2017
Key strategic milestones achieved with the closure of Non-Core and sell down in Africa
 
 
 
● Returns:
● Group Return on Tangible Equity (RoTE) of (1.4%) for Q317 YTD (Q316 YTD: 4.4%)
● Group RoTE was 7.1% excluding a loss on the sale of 33.7% of Barclays Africa Group Limited's (BAGL) issued share capital of £1.4bn, an impairment of Barclays' holding in BAGL of £1.1bn and charges for Payment Protection Insurance (PPI) of £700m
● Targeting Group RoTE, excluding litigation and conduct, above 10% in 2020 and above 9% in 2019, based on a Group Common Equity Tier 1 (CET1) ratio of c.13%
● Cost efficiency:
● Group cost: income ratio of 69% (Q316 YTD: 73%), included charges for PPI of £700m (Q316 YTD: £1,000m)
● Guidance for Group operating expenses, excluding litigation and conduct, of £14.2bn-£14.3bn in 2017 and £13.6bn-£13.9bn in 2019
● Common Equity Tier 1 ratio:
● CET1 ratio was 13.1% (December 2016: 12.4%), within the end-state target range, driven by organic capital generation from continuing operations and the benefit of the proportional consolidation of BAGL, partially offset by adverse movements in reserves
 
 
 
●
 
Group profit before tax increased 19% to £3,448m driven by a £932m reduction in operating expenses, primarily reflecting lower litigation and conduct and Non-Core costs. Income reduced £405m due to the non-recurrence of the £615m gain on disposal of Barclays' share of Visa Europe Limited in 2016
 
-
 
Barclays UK RoTE of 9.4% (Q316 YTD: 6.9%), with a 12% increase in profit before tax to £1,295m driven by reduced impairment and a lower cost: income ratio of 66% (Q316 YTD: 67%), including lower charges for PPI of £700m (Q316 YTD: £1,000m). Net interest income remained in line at £4,546m (Q316 YTD: £4,546m)
 
-
 
Barclays International RoTE of 10.0% (Q316 YTD: 12.9%) on profit before tax of £3,269m (Q316 YTD: £3,838m). Income decreased 3%, with an increase in Consumer, Cards and Payments more than offset by a decrease in the Corporate and Investment Bank (CIB), largely as a result of weak market conditions in Q317, while operating expenses increased 4% and credit impairment increased 21%
●
 
Group attributable loss of £628m (Q316 YTD: profit of £1,524m) included a loss after tax in respect of the discontinued operation of £2,195m reflecting an impairment of Barclays' holding in BAGL of £1,090m and a loss on the sale of 33.7% of BAGL's issued share capital of £1,435m, primarily due to recycling of currency translation reserve losses to the income statement
●
 
Group basic loss per share of 3.0p (Q316 YTD: earnings per share of 9.6p). Excluding the loss on the sale of 33.7% of BAGL's issued share capital, the impairment of Barclays' holding in BAGL and charges for PPI of £700m, earnings per share was 15.5p
●
 
Tangible net asset value per share decreased to 281p (December 2016: 290p) as profit from continuing operations was offset by decreases across reserves 
 
 
James E Staley, Group Chief Executive Officer, said:
 
"The third quarter of 2017 was particularly significant for Barclays as it was the first for many years in which we have not been in some state of restructuring.
 
Having closed the Non-Core unit, and sold our controlling interest in Barclays Africa in June, we now have the end state Transatlantic Consumer and Wholesale Bank - in Barclays UK and Barclays International - which we set out to build in March of 2016.
 
With Returns on Tangible Equity of 9.4% and 10.0% respectively, both Barclays UK and Barclays International have contributed to a Group profit before tax for the first nine months of the year which is up 19% to £3,448m. The Group's RoTE, excluding the impact of the sale of our stake in Barclays Africa Group, as well as charges taken for Payment Protection Insurance earlier in the year, was 7.1%.
 
The third quarter was clearly a difficult one for our Markets business within BI. A lack of volume and volatility in FICC hit Markets revenues hard across the industry, and we were no exception to this trend. We did however see an improvement in profitability in BUK, and a good underlying return from our Consumer, Cards and Payments business, which partially offset the under-performance in Markets.
 
The completion of our restructuring, and the strength of our capital base today - with our CET1 ratio standing at 13.3% pro forma after BAGL regulatory deconsolidation - means we can now turn our full attention towards what matters most to our shareholders: improving Group returns.
 
We now have high confidence in our capacity to assert when Barclays will start to deliver the economic performance which we know this Group is capable of, and therefore today we are announcing new targets for 2019 and 2020 for Barclays.
 
First, we have set a target of achieving a Group RoTE of greater than 9% in 2019.
 
Second, we have stated that we will improve that Group RoTE again in 2020, to be greater than 10%.
 
Third, we have set a firm target range for costs in 2019 to be between 13.6 and 13.9 billion pounds, excluding litigation and conduct charges, and depending on proactive investment choices we make in that year.
 
The returns targets are based on an assumption of running the business within our end state capital range of around 13% CET1.
 
Our experience over the past couple of years, and the multiple opportunities for revenue growth within our diversified Group, confirms for us that these targets are attainable. We have strong plans in place to achieve them, including self-funded investment to realise further efficiencies and to grow revenue.
 
Whilst working to put our remaining conduct issues behind us, we remain focused as a management team on being in a position to distribute the returns that these plans will generate, on a sustainable basis, to shareholders. Accordingly, at the full year results announcement early next year we will provide an updated capital management policy for the Group."
 
James E Staley
Group Chief Executive Officer
 
 
Barclays Group results
 
 
 
for the nine months ended
30.09.17
30.09.16
 
 
£m
£m
% Change
Total income
16,054
16,459
(2)
Credit impairment charges and other provisions
(1,763)
(1,720)
(3)
Net operating income
14,291
14,739
(3)
Operating expenses excluding litigation and conduct
(10,263)
(10,753)
5
Litigation and conduct
(824)
(1,266)
35
Operating expenses
(11,087)
(12,019)
8
Other net income
244
180
36
Profit before tax
3,448
2,900
19
Tax charge
(1,102)
(1,043)
(6)
Profit after tax in respect of continuing operations 
2,346
1,857
26
(Loss)/profit after tax in respect of discontinued operation
(2,195)
520
 
Non-controlling interests in respect of continuing operations
(181)
(255)
29
Non-controlling interests in respect of discontinued operation
(140)
(280)
50
Other equity holders1
(458)
(318)
(44)
Attributable (loss)/profit
(628)
1,524
 
 
 
 
 
Performance measures
 
 
 
Return on average tangible shareholders' equity1
(1.4%)
4.4%
 
Average tangible shareholders' equity (£bn)
49
49
 
Cost: income ratio
69%
73%
 
Loan loss rate (bps)
55
48
 
 
 
 
 
Basic (loss)/earnings per share1
(3.0p)
9.6p
 
Basic earnings per share in respect of continuing operations1
10.8p
8.1p
 
Dividend per share
1.0p
1.0p
 
 
 
 
 
 
As at
As at
As at
Balance sheet and capital management
30.09.17
30.06.17
31.12.16
Tangible net asset value per share
281p
284p
290p
Common equity tier 1 ratio
13.1%
13.1%
12.4%
Common equity tier 1 capital (£bn)
42.3
42.8
45.2
Risk weighted assets (£bn)
324
327
366
UK leverage ratio (quarterly month end average)2
4.9%
4.8%
4.5%
Fully loaded tier 1 capital (quarterly month end average)2 (£bn)
51.2
52.1
51.6
UK leverage exposure (quarterly month end average)2 (£bn)
1,035
1,092
1,137
 
 
 
 
Funding and liquidity
 
 
 
Group liquidity pool (£bn)
216
201
165
CRD IV liquidity coverage ratio
157%
149%
131%
Loan: deposit ratio3
82%
85%
89%
 
 
1
The profit after tax attributable to other equity holders of £458m (Q316 YTD: £318m) is offset by a tax credit recorded in reserves of £125m (Q316 YTD: £89m). The net amount of £333m (Q316 YTD: £229m), 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.
2
The UK leverage ratio uses capital and exposure measures based on the average of the last day of each month in the quarter; additionally the average exposure measure excludes qualifying central bank claims.
3
Loan: deposit ratio excludes Head Office and investment banking balances other than interest earning lending. Comparatives have been restated to include interest earning lending balances within the investment banking business.
 
Group Finance Director's Review
 
 
Performance in the nine months ended 30 September 2017 was encouraging, with increased profit before tax, a reduced cost: income ratio and strong capital progression. Significant progress was made on strategic objectives with the closure of Non-Core and the sale of a stake in, and consequent accounting deconsolidation of, BAGL. Given the closure of Non-Core on 1 July 2017, Group results for the nine months ended 30 September 2017 include a Non-Core loss before tax for the six months ended 30 June 2017 of £647m, with residual Non-Core assets and liabilities reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office. Focus on our core businesses provides a firm platform on which to build, as we progress towards delivering the Group's financial targets.
 
Group performance
 
●
Profit before tax increased 19% to £3,448m driven by an 8% reduction in operating expenses, partially offset by a 2% decrease in income. Group results for the nine months ended 30 September 2017 were impacted by the 8% appreciation of average USD and EUR against GBP compared to the prior year, which positively impacted income and adversely affected impairment and operating expenses
●
Total income decreased £405m to £16,054m, impacted by the non-recurrence of the £615m gain on disposal of Barclays' share of Visa Europe Limited in 2016. A 3% reduction in total income in both Barclays UK and Barclays International, and lower income in Head Office was partially offset by lower Non-Core negative income
●
Credit impairment charges increased £43m to £1,763m as lower impairment in Barclays UK was more than offset by increased impairment in Barclays International. Results included a charge of £168m in Q317 relating to deferred consideration from a Q117 asset sale in US Cards, and the non-recurrence of a £320m charge in 2016 following the management review of the UK and US cards portfolio impairment modelling. The Group loan loss rate increased 7bps to 55bps
●
Operating expenses decreased 8% to £11,087m reflecting lower Non-Core costs and a 5% reduction in Barclays UK, partially offset by a 4% increase in Barclays International. The Group's cost: income ratio of 69% (Q316 YTD: 73%) included charges for PPI of £700m (Q316 YTD: £1,000m)
●
Loss after tax in respect of the Africa Banking discontinued operation of £2,195m in H117 included a £1,090m impairment of Barclays' holding in BAGL and a £1,435m loss on the sale of 33.7% of BAGL's issued share capital, primarily due to recycling of currency translation reserve losses to the income statement on accounting deconsolidation
●
RoTE was (1.4%) (Q316 YTD: 4.4%) and basic loss per share was 3.0p (Q316 YTD: earnings per share of 9.6p). Excluding the impact of the loss on the sale of 33.7% of BAGL's issued share capital, the impairment of Barclays' holding in BAGL and charges for PPI, RoTE was 7.1% and earnings per share was 15.5p
 
Barclays UK
 
●
 
RoTE improved to 9.4% (Q316 YTD: 6.9%) with a 12% increase in profit before tax to £1,295m
●
 
Total income decreased 3% to £5,513m, of which £151m reflected the non-recurrence of the gain on disposal of Barclays' share of Visa Europe Limited in 2016
 
-
 
Personal Banking income decreased 5% to £2,803m due to the non-recurrence of the gain on disposal of Barclays' share of Visa Europe Limited and the impact of the UK base rate reduction in 2016, partially offset by deposit pricing initiatives and balance growth
 
-
 
Barclaycard Consumer UK income increased 1% to £1,532m reflecting improved margins
 
-
 
Wealth, Entrepreneurs & Business Banking (WEBB) income decreased 3% to £1,178m due to the non-recurrence of the gain on disposal of Barclays' share of Visa Europe Limited, partially offset by deposit pricing initiatives and balance growth
 
-
 
Net interest income remained in line at £4,546m (Q316 YTD: £4,546m) due to deposit pricing initiatives and balance growth, offset by the impact of the UK base rate reduction in 2016. Net interest margin decreased 8bps to 3.55% reflecting the integration of the Education, Social Housing and Local Authority (ESHLA) portfolio from Non-Core in Q317
●
 
Credit impairment charges decreased 16% to £599m principally reflecting the non-recurrence of a £200m charge in 2016 following the management review of the cards portfolio impairment modelling, partially offset by higher charges in Personal Banking. Underlying delinquency trends improved with 30 day and 90 day arrears rates in UK cards of 1.8% (Q316: 2.0%) and 0.9% (Q316: 1.0%) respectively
●
 
Total operating expenses decreased 5% to £3,619m due to lower charges for PPI of £700m (Q316 YTD: £1,000m) and cost efficiencies, partially offset by the costs of setting up the ring-fenced bank and increased investment in cyber resilience and technology
●
 
Total assets increased to £230.4bn (December 2016: £209.6bn) reflecting the integration of the ESHLA portfolio of c.£18bn from Non-Core on 1 July 2017 and growth in mortgages
 
Barclays International
 
●
 
RoTE decreased to 10.0% (Q316 YTD: 12.9%) as profit before tax decreased 15% to £3,269m reflecting a 3% decrease in income and a 4% increase in total operating expenses. Consumer, Cards and Payments RoTE was 19.3% (Q316 YTD: 38.3%) and CIB RoTE was 8.4% (Q316 YTD: 8.7%). Results were impacted by the appreciation of average USD and EUR against GBP compared to the prior year, which positively impacted income and adversely affected impairment and operating expenses
●
 
Total income decreased 3% to £11,063m as CIB income reduced 5% to £7,626m, largely as a result of weak market conditions in Q317 and the non-recurrence of treasury gains in the prior year, while Consumer, Cards and Payments income increased 1% to £3,437m
 
-
 
Markets income decreased 14% to £3,535m reflecting a 27% reduction in Macro income to £1,314m, due to lower market volatility and the impact of exiting energy-related commodities, as well as an 8% reduction in Equities income to £1,267m driven by lower equity derivatives revenue, partially offset by improved performance in cash equities and equity financing. Continued momentum in Credit income resulted in a 3% increase to £954m
 
-
 
Banking income increased 4% to £4,052 driven by a 15% increase in Banking fees to £2,007m, due to higher debt underwriting, equity underwriting and advisory fees, with increased fee share in debt and equity underwriting. Corporate lending reduced 8% to £824m primarily due to lower balances and work-out gains. Transactional banking declined 3% to £1,221m as margin compression, due to the low base rate environment, and the non-recurrence of treasury gains in the prior year were partially offset by higher deposit balances
 
-
 
Consumer, Cards and Payments income increased 1% to £3,437m driven by continued business growth, a gain of £192m relating to an asset sale in US Cards and a valuation gain on Barclays' preference shares in Visa Inc. of £74m, partially offset by the non-recurrence of the £464m gain on the disposal of Barclays' share of Visa Europe Limited in 2016
●
 
Credit impairment charges increased 21% to £1,120m
 
-
 
CIB impairment charges decreased 49% to £86m primarily due to the non-recurrence of oil and gas single name charges
 
-
 
Consumer, Cards and Payments credit impairment charges increased 36% to £1,034m due to a £168m charge in Q317 relating to deferred consideration from the Q117 asset sale in US Cards, an increase in underlying delinquency trends in US Cards and business growth. This was partially offset by the non-recurrence of a £120m charge in 2016 following the management review of the cards portfolio impairment modelling. 30 day and 90 day arrears rates within US Cards were broadly stable at 2.4% (Q316: 2.4%) and 1.2% (Q316: 1.1%) respectively, including a benefit from a change in portfolio mix following the Q117 asset sale
●
 
Operating expenses increased 4% to £6,907m
 
-
 
CIB operating expenses were in line at £5,358m (Q316 YTD: £5,337m) as the impact of the change in compensation awards introduced in Q416 and higher structural reform programme costs were offset by a reduction in restructuring charges and cost efficiencies
 
-
 
Consumer, Cards and Payments operating expenses increased 17% to £1,549m reflecting continued business growth and investment, primarily within the US Cards and merchant acquiring businesses
●
 
Total assets increased to £867.1bn (December 2016: £648.5bn) driven by the integration of c.£200bn of assets, and c.£9bn of associated risk weighted assets (RWAs), from Non-Core on 1 July 2017, principally relating to derivatives. In addition, increases in financial assets designated at fair value and trading portfolio assets were partially offset by a reduction in derivative mark-to-market as a result of increased forward rates
 
Head Office
 
●
Loss before tax increased to £469m (Q316 YTD: £95m)
●
Income reduced £104m to £8m primarily reflecting lower net income from treasury operations, partially offset by the impact of the early adoption of the own credit provisions of IFRS 9. Own credit, which was previously recorded in the income statement (Q316 YTD: £80m expense), is now recognised within other comprehensive income
●
Total operating expenses of £277m (Q316 YTD: £176m) included costs in Q317 associated with reintegrated Non-Core assets and businesses
●
Other net expenses increased to £186m (Q316 YTD: £31m) driven by an expense of £180m on the recycling of the currency translation reserve to the income statement on the sale of Barclays Bank Egypt
●
Total assets reduced to £51.7bn (December 2016: £75.2bn) primarily due to the accounting deconsolidation of BAGL, which accounted for £65bn of total assets on deconsolidation from the Barclays Group. This was partially offset by an increase in the liquidity pool and the integration of Non-Core assets on 1 July 2017, of which c.£9bn related to Italian mortgages
 
Barclays Non-Core
 
●
Non-Core was closed on 1 July 2017, with the residual assets and liabilities reintegrated into Barclays UK, Barclays International and Head Office
●
Reflected in the Group's results for the nine months ended 30 September 2017 was a Non-Core loss before tax for the six months ended 30 June 2017 of £647m (Q316 YTD: £1,998m)
 
Group capital and leverage
 
●
 
The fully loaded CET1 ratio increased to 13.1% (December 2016: 12.4%) driven by organic capital generation and the benefit of the proportional consolidation of BAGL, partially offset by adverse movements in reserves. RWAs decreased £41.4bn to £324.3bn and CET1 capital decreased £2.9bn to £42.3bn
 
-
 
Profits relating to continuing operations were more than offset by decreases in other qualifying reserves as a result of the redemption of USD preference shares, the payment of pension deficit reduction contributions and dividends paid and foreseen
 
-
 
CET1 capital further decreased by £1.8bn as a result of BAGL minority interest no longer being included as a result of the proportional consolidation of BAGL following the sell down of the Barclays' holding. Losses in respect of the discontinued operation due to the impairment of Barclays' holding in BAGL allocated to goodwill and the recycling of the BAGL currency translation reserve losses to the income statement had no impact on CET1 capital
 
-
 
The decrease in RWAs principally reflected the £28.5bn reduction as a result of the proportional consolidation of BAGL, as well as reductions in Non-Core
●
 
The average UK leverage ratio increased to 4.9% (December 2016: 4.5%) driven by a decrease in the average UK leverage exposure to £1,035bn (December 2016: £1,137bn) primarily as a result of the proportional consolidation of BAGL, offset by a decrease in the average fully loaded Tier 1 capital to £51.2bn (December 2016: £51.6bn)
●
 
Tangible net asset value per share decreased to 281p (December 2016: 290p) primarily due to profit after tax from continuing operations being more than offset by the reduction in the cash flow hedging reserve, dividends paid and the redemption of USD preference shares
 
Group funding and liquidity
 
●
The Group continued to maintain surpluses to its internal and regulatory requirements as at 30 September 2017. The liquidity pool increased to £216bn (December 2016: £165bn). The increase in the liquidity pool was driven by deposit growth, higher money market balances, drawdown from the Bank of England Term Funding Scheme and a net increase in the minimum requirement for own funds and eligible liabilities (MREL) issuance. The liquidity coverage ratio (LCR) increased to 157% (December 2016: 131%), equivalent to a surplus of £78bn (December 2016: £39bn) to 100%
●
Wholesale funding outstanding excluding repurchase agreements was £172bn (December 2016: £158bn). The Group balance sheet included £10bn equivalent of capital and term senior unsecured debt from Barclays PLC (HoldCo) issued and settled as at 30 September 2017 of which £4.7bn was in public senior unsecured debt, and £5.3bn in capital instruments. In the same period, £4.7bn of Barclays Bank PLC (OpCo) capital and senior public term instruments either matured or were redeemed, including the $1.375bn 7.1% Series 3 USD preference shares
 
Other matters
 
 
●
On 1 June 2017, Barclays sold 286 million ordinary shares of BAGL, representing 33.7% of BAGL's issued share capital. The sale resulted in the accounting deconsolidation of BAGL from the Barclays Group. Following the sale, BAGL is accounted for as an Available for Sale (AFS) asset in Barclays' financial statements and is no longer reported as a discontinued operation. The contribution of a further 1.5% of BAGL's ordinary shares to a Black Economic Empowerment scheme in Q317 resulted in Barclays accounting for 126 million ordinary shares in BAGL at 30 September 2017, representing 14.9% of BAGL's issued share capital. For regulatory reporting purposes, BAGL is treated on a proportional consolidated basis
●
Additional charges of £700m (Q316 YTD: £1,000m) relating to PPI were recognised in Q217. The remaining PPI provision as at 30 September 2017 was £1.9bn (December 2016: £2.0bn)
●
Barclays Bank PLC has reached an agreement in principle with the US Federal Energy Regulatory Commission's (Commission) Office of Enforcement, subject to approval by the Commission, to resolve the civil action brought by the Commission relating to the electricity markets in the Western US. The proposed settlement, fully provisioned as at Q317, is for a total of $105m, which is comprised of a civil penalty of $70m and a disgorgement amount of $35m
●
Certain other legal proceedings and investigations relating to legacy issues remain outstanding. Resolving outstanding legacy issues in an appropriate timeframe will continue to be a priority
 
IFRS 9 Financial Instruments1
 
●
IFRS 9 Financial Instruments is effective for periods beginning on or after 1 January 2018. Barclays' estimated IFRS 9 impact, based on the portfolio as at 30 September 2017, is a decrease in shareholders' equity of approximately £2.0bn post tax. This estimated reduction in shareholders' equity equates to a decrease in tangible net asset value of 10 to 12 pence per share
●
The Group's CET1 ratio will be impacted by IFRS 9 primarily from an increase in credit impairment provisions net of tax and any deduction of deferred tax assets arising from temporary differences being in excess of the regulatory allowable threshold. This is partially offset by a reduction in the regulatory expected loss over impairment deduction and reduced RWAs
●
Based on figures as at 30 September 2017, the expected CET1 impact without transitional arrangements would be an estimated reduction of approximately 40bps. Barclays expects to implement transitional arrangements for capital purposes, currently being finalised by European regulators, which would result in only a proportion of the estimated reduction impacting the CET1 ratio during 2018. The final impact of IFRS 9 is estimated to be approximately 20bps lower than the point in time impact as deferred tax assets are expected to fall below the allowable threshold over time
●
Barclays plans to publish transitional disclosures during the first quarter of 2018 describing the 1 January 2018 impact of adoption of IFRS 9
 
Outlook and financial targets
 
 
●
The Group is targeting a RoTE, excluding litigation and conduct, above 10% in 2020 and above 9% in 2019, based on a Group CET1 ratio of c.13%
●
Guidance for Group operating expenses, excluding litigation and conduct, is £14.2bn-£14.3bn in 2017 and £13.6bn-£13.9bn in 2019
 
 
Tushar Morzaria, Group Finance Director
 
 
1
Note:
 
-
 
The estimated decrease in shareholders' equity includes the impact of both balance sheet classification and measurement changes and the increase to credit impairment provisions compared to those applied at 30 September 2017 under IAS 39. The adoption of certain classification and measurement accounting changes remain subject to endorsement by the European Union.
 
-
 
The assessment above is a point in time estimate and is not a forecast. The actual effect of the implementation of IFRS 9 on Barclays PLC could vary significantly from this estimate.
 
-
 
Barclays continues to refine models, methodologies and controls, and monitor developments in regulatory rule-making in advance of IFRS 9 adoption on 1 January 2018. All estimates are based on Barclays' current interpretation of the requirements of IFRS 9, reflecting industry guidance and discussions to date.
 
Results by Business
 
Barclays UK
Nine months ended
Nine months ended
 
 
30.09.17
30.09.16
 
Income statement information
£m
£m
% Change
Net interest income
4,546
4,546
-
Net fee, commission and other income
967
1,143
(15)
Total income
5,513
5,689
(3)
Credit impairment charges and other provisions
(599)
(716)
16
Net operating income
4,914
4,973
(1)
Operating expenses excluding litigation and conduct
(2,913)
(2,803)
(4)
Litigation and conduct
(706)
(1,014)
30
Operating expenses
(3,619)
(3,817)
5
Other net expenses
-
(1)
 
Profit before tax
1,295
1,155
12
Attributable profit
608
445
37
 
 
 
 
 
As at
As at
As at
 
30.09.17
30.06.17
31.12.16
Balance sheet information
£bn
£bn
£bn
Loans and advances to customers at amortised cost
182.2
166.6
166.4
Total assets
230.4
203.4
209.6
Customer deposits
189.3
187.4
189.0
Loan: deposit ratio
96%
89%
88%
Risk weighted assets
70.0
66.1
67.5
Period end allocated tangible equity
9.5
8.6
8.5
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.17
30.09.16
 
Return on average allocated tangible equity
9.4%
6.9%
 
Average allocated tangible equity (£bn)
9.0
9.0
 
Cost: income ratio
66%
67%
 
Loan loss rate (bps)
43
56
 
Net interest margin
3.55%
3.63%
 
 
 
Analysis of Barclays UK
Nine months ended
Nine months ended
 
 
30.09.17
30.09.16
 
Analysis of total income
£m
£m
% Change
Personal Banking
2,803
2,957
(5)
Barclaycard Consumer UK
1,532
1,515
1
Wealth, Entrepreneurs & Business Banking
1,178
1,217
(3)
Total income
5,513
5,689
(3)
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
Personal Banking
(166)
(133)
(25)
Barclaycard Consumer UK
(417)
(565)
26
Wealth, Entrepreneurs & Business Banking
(16)
(18)
11
Total credit impairment charges and other provisions
(599)
(716)
16
 
 
 
 
 
As at
As at
As at
 
30.09.17
30.06.17
31.12.16
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
Personal Banking
138.4
136.5
135.0
Barclaycard Consumer UK
16.3
16.2
16.5
Wealth, Entrepreneurs & Business Banking1
27.5
13.9
14.9
Total loans and advances to customers at amortised cost
182.2
166.6
166.4
 
 
 
 
Analysis of customer deposits
 
 
 
Personal Banking
140.1
138.5
139.3
Barclaycard Consumer UK
-
-
-
Wealth, Entrepreneurs & Business Banking
49.2
48.9
49.7
Total customer deposits
189.3
187.4
189.0
 
 
1
Includes the integration of the ESHLA portfolio at amortised cost from Non-Core.
 
 
Barclays International
Nine months ended
Nine months ended
 
 
30.09.17
30.09.16
 
Income statement information
£m
£m
% Change
Net interest income
3,320
3,466
(4)
Net trading income
3,036
3,449
(12)
Net fee, commission and other income
4,707
4,488
5
Total income
11,063
11,403
(3)
Credit impairment charges and other provisions
(1,120)
(929)
(21)
Net operating income
9,943
10,474
(5)
Operating expenses excluding litigation and conduct
(6,893)
(6,632)
(4)
Litigation and conduct
(14)
(31)
55
Operating expenses
(6,907)
(6,663)
(4)
Other net income
233
27
 
Profit before tax
3,269
3,838
(15)
Attributable profit
2,015
2,369
(15)
 
 
 
 
 
As at
As at
As at
 
30.09.17
30.06.17
31.12.16
Balance sheet information
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost1
220.7
204.8
211.3
Trading portfolio assets
91.2
83.3
73.2
Derivative financial instrument assets
242.8
108.4
156.2
Derivative financial instrument liabilities
242.9
116.8
160.6
Reverse repurchase agreements and other similar secured lending
15.5
17.2
13.4
Financial assets designated at fair value
103.7
94.1
62.3
Total assets
867.1
681.6
648.5
Customer deposits2
241.0
230.3
216.2
Loan: deposit ratio3
65%
69%
78%
Risk weighted assets
218.2
212.2
212.7
Period end allocated tangible equity
28.0
26.8
25.6
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.17
30.09.16
 
Return on average allocated tangible equity
10.0%
12.9%
 
Average allocated tangible equity (£bn)
28.0
25.2
 
Cost: income ratio
62%
58%
 
Loan loss rate (bps)
67
52
 
Net interest margin
4.10%
4.01%
 
 
 
1
As at 30 September 2017 loans and advances included £190.5bn (June 2017: £183.9bn) of loans and advances to customers (including settlement balances of £28.0bn (June 2017: £31.6bn) and cash collateral of £38.2bn (June 2017: £26.9bn)), and £30.2bn (June 2017: £20.9bn) of loans and advances to banks (including settlement balances of £4.9bn (June 2017: £5.7bn) and cash collateral of £15.2bn (June 2017: £5.4bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £39.0bn (June 2017: £38.5bn).
2
As at 30 September 2017 customer deposits included settlement balances of £29.1bn (June 2017: £29.4bn) and cash collateral of £25.9bn (June 2017: £16.2bn).
3
Loan: deposit ratio excludes investment banking balances other than interest earning lending. Comparatives have been restated to include interest earning lending balances within the investment banking business.
 
 
Analysis of Barclays International
 
 
 
Corporate and Investment Bank
Nine months ended
Nine months ended
 
30.09.17
30.09.16
 
Income statement information
£m
£m
% Change
Analysis of total income
 
 
 
Credit
954
924
3
Equities
1,267
1,380
(8)
Macro
1,314
1,799
(27)
Markets
3,535
4,103
(14)
Banking fees
2,007
1,747
15
Corporate lending
824
892
(8)
Transactional banking
1,221
1,256
(3)
Banking
4,052
3,895
4
Other
39
4
 
Total income
7,626
8,002
(5)
Credit impairment charges and other provisions
(86)
(170)
49
Operating expenses
(5,358)
(5,337)
-
Other net income
126
-
 
Profit before tax
2,308
2,495
(7)
 
 
 
 
 
As at
As at
As at
 
30.09.17
30.06.17
31.12.16
Balance sheet information
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost
181.7
166.3
171.6
Customer deposits
182.7
173.0
166.2
Risk weighted assets
185.2
178.9
178.6
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.17
30.09.16
 
Return on average allocated tangible equity
8.4%
8.7%
 
Average allocated tangible equity (£bn)
23.8
21.6
 
 
 
Consumer, Cards and Payments
Nine months ended
Nine months ended
 
30.09.17
30.09.16
 
Income statement information
£m
£m
% Change
Total income
3,437
3,401
1
Credit impairment charges and other provisions
(1,034)
(759)
(36)
Total operating expenses
(1,549)
(1,326)
(17)
Other net income
107
27
 
Profit before tax
961
1,343
(28)
 
 
 
 
 
As at
As at
As at
 
30.09.17
30.06.17
31.12.16
Balance sheet information
£bn
£bn
£bn
Loans and advances to banks and customers at amortised cost
39.0
38.5
39.7
Customer deposits
58.3
57.3
50.0
Risk weighted assets
33.0
33.3
34.1
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.17
30.09.16
 
Return on average allocated tangible equity
19.3%
38.3%
 
Average allocated tangible equity (£bn)
4.2
3.6
 
 
 
Head Office
Nine months ended
Nine months ended
 
 
30.09.17
30.09.16
 
Income statement information
£m
£m
% Change
Net interest income
(181)
(212)
15
Net fee, commission and other income
189
324
(42)
Total income
8
112
(93)
Credit impairment charges and other provisions
(14)
-
 
Net operating (expenses)/income
(6)
112
 
Operating expenses excluding litigation and conduct
(201)
(150)
(34)
Litigation and conduct
(76)
(26)
 
Operating expenses
(277)
(176)
(57)
Other net expenses
(186)
(31)
 
Loss before tax
(469)
(95)
 
Attributable loss
(497)
(113)
 
 
 
 
 
 
As at
As at
As at
 
30.09.17
30.06.17
31.12.16
Balance sheet information
£bn
£bn
£bn
Total assets
51.7
17.3
75.2
Risk weighted assets1
36.1
26.2
53.3
Period end allocated tangible equity
10.4
9.0
9.7
 
 
 
 
 
Nine months ended
Nine months ended
 
Performance measures
30.09.17
30.09.16
 
Average allocated tangible equity (£bn)
9.0
6.3
 
 
 
1
Includes Africa Banking RWAs of £8.6bn (June 2017: £9.8bn; December 2016 £42.3bn).
 
Quarterly Results Summary
 
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
 
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
2,475
2,579
2,519
 
2,523
2,796
2,530
2,688
 
2,726
Net fee, commission and other income
2,698
2,479
3,304
 
2,469
2,650
3,442
2,353
 
1,722
Total income
5,173
5,058
5,823
 
4,992
5,446
5,972
5,041
 
4,448
Credit impairment charges and other provisions
(709)
(527)
(527)
 
(653)
(789)
(488)
(443)
 
(554)
Net operating income
4,464
4,531
5,296
 
4,339
4,657
5,484
4,598
 
3,894
Operating expenses excluding UK bank levy and litigation and conduct
(3,274)
(3,398)
(3,591)
 
(3,812)
(3,581)
(3,425)
(3,747)
 
(3,547)
UK bank levy
-
-
-
 
(410)
-
-
-
 
(426)
Litigation and conduct
(81)
(715)
(28)
 
(97)
(741)
(447)
(78)
 
(1,722)
Operating expenses
(3,355)
(4,113)
(3,619)
 
(4,319)
(4,322)
(3,872)
(3,825)
 
(5,695)
Other net (expenses)/income
(2)
241
5
 
310
502
(342)
20
 
(274)
Profit/(loss) before tax
1,107
659
1,682
 
330
837
1,270
793
 
(2,075)
Tax (charge)/credit
(324)
(305)
(473)
 
50
(328)
(467)
(248)
 
(164)
Profit/(loss) after tax in respect of continuing operations
783
354
1,209
 
380
509
803
545
 
(2,239)
(Loss)/profit after tax in respect of discontinued operation
-
(1,537)
(658)
 
71
209
145
166
 
101
 
 
 
 
 
 
 
 
 
 
 
Attributable to:
 
 
 
 
 
 
 
 
 
 
Ordinary equity holders of the parent
583
(1,401)
190
 
99
414
677
433
 
(2,422)
Other equity holders
157
162
139
 
139
110
104
104
 
107
Non-controlling interests
43
56
222
 
213
194
167
174
 
177
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets
1,149.3
1,135.3
1,203.8
 
1,213.1
1,324.0
1,351.3
1,248.9
 
1,120.0
Risk weighted assets
324.3
327.4
360.9
 
365.6
373.4
366.3
363.0
 
358.4
CRR leverage exposure
1,150.6
1,122.1
1,196.9
 
1,125.5
1,185.1
1,155.4
1,082.0
 
1,027.8
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
5.1%
(11.0%)
1.8%
 
1.1%
3.6%
5.8%
3.8%
 
(20.1%)
Average tangible shareholders' equity (£bn)
48.9
49.3
49.4
 
48.9
49.4
48.3
48.3
 
47.8
Cost: income ratio
65%
81%
62%
 
87%
79%
65%
76%
 
128%
Loan loss rate (bps)
66
49
47
 
58
66
41
40
 
53
Basic earnings/(loss) per share 
3.7p
(8.0p)
1.3p
 
0.8p
2.6p
4.2p
2.7p
 
(14.4p)
Basic earnings/(loss) per share in respect of continuing operations
3.7p
1.0p
6.1p
 
1.1p
2.1p
3.8p
2.2p
 
(14.4p)
 
Quarterly Results by Business
 
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
1,501
1,534
1,511
 
1,502
1,569
1,476
1,501
 
1,509
Net fee, commission and other income
351
286
330
 
326
374
467
302
 
325
Total income
1,852
1,820
1,841
 
1,828
1,943
1,943
1,803
 
1,834
Credit impairment charges and other provisions
(201)
(220)
(178)
 
(180)
(350)
(220)
(146)
 
(219)
Net operating income
1,651
1,600
1,663
 
1,648
1,593
1,723
1,657
 
1,615
Operating expenses excluding UK bank levy and litigation and conduct
(980)
(974)
(959)
 
(989)
(904)
(947)
(952)
 
(920)
UK bank levy
-
-
-
 
(48)
-
-
-
 
(77)
Litigation and conduct
(11)
(699)
4
 
(28)
(614)
(399)
(1)
 
(1,466)
Operating expenses
(991)
(1,673)
(955)
 
(1,065)
(1,518)
(1,346)
(953)
 
(2,463)
Other net income/(expenses)
1
(1)
-
 
-
-
(1)
-
 
1
Profit/(loss) before tax 
661
(74)
708
 
583
75
376
704
 
(847)
Attributable profit/(loss)
423
(285)
470
 
383
(163)
141
467
 
(1,078)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to customers at amortised cost
182.2
166.6
164.5
 
166.4
166.6
166.0
166.2
 
166.1
Total assets
230.4
203.4
203.0
 
209.6
209.1
204.6
201.7
 
202.5
Customer deposits
189.3
187.4
184.4
 
189.0
185.5
181.7
179.1
 
176.8
Risk weighted assets
70.0
66.1
66.3
 
67.5
67.4
67.1
69.7
 
69.5
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
18.4%
(12.7%)
21.6%
 
18.2%
(7.1%)
6.6%
20.5%
 
(46.5%)
Average allocated tangible equity (£bn)
9.4
8.7
8.9
 
8.6
8.7
9.0
9.3
 
9.2
Cost: income ratio
54%
92%
52%
 
58%
78%
69%
53%
 
134%
Loan loss rate (bps)
43
52
43
 
42
82
52
34
 
51
Net interest margin
3.28%
3.70%
3.69%
 
3.56%
3.72%
3.56%
3.62%
 
3.58%
 
 
Analysis of Barclays UK
 
 
 
 
 
 
 
 
 
 
 
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Analysis of total income
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Personal Banking
926
933
944
 
934
970
1,068
919
 
945
Barclaycard Consumer UK
539
495
498
 
507
561
463
491
 
505
Wealth, Entrepreneurs & Business Banking
387
392
399
 
387
412
412
393
 
384
Total income
1,852
1,820
1,841
 
1,828
1,943
1,943
1,803
 
1,834
 
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment charges and other provisions
 
 
 
 
 
 
 
 
 
 
Personal Banking
(60)
(56)
(50)
 
(50)
(47)
(44)
(42)
 
(39)
Barclaycard Consumer UK
(145)
(149)
(123)
 
(118)
(291)
(169)
(105)
 
(176)
Wealth, Entrepreneurs & Business Banking
4
(15)
(5)
 
(12)
(12)
(7)
1
 
(4)
Total credit impairment charges and other provisions
(201)
(220)
(178)
 
(180)
(350)
(220)
(146)
 
(219)
 
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Personal Banking
138.4
136.5
134.4
 
135.0
135.3
134.7
134.7
 
134.0
Barclaycard Consumer UK
16.3
16.2
16.1
 
16.5
16.2
16.2
16.0
 
16.2
Wealth, Entrepreneurs & Business Banking
27.5
13.9
14.0
 
14.9
15.1
15.1
15.5
 
15.9
Total loans and advances to customers at amortised cost
182.2
166.6
164.5
 
166.4
166.6
166.0
166.2
 
166.1
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits
 
 
 
 
 
 
 
 
 
 
Personal Banking
140.1
138.5
137.3
 
139.3
137.2
134.8
132.9
 
131.0
Barclaycard Consumer UK
-
-
-
 
-
-
-
-
 
-
Wealth, Entrepreneurs & Business Banking
49.2
48.9
47.1
 
49.7
48.3
46.9
46.2
 
45.8
Total customer deposits
189.3
187.4
184.4
 
189.0
185.5
181.7
179.1
 
176.8
 
 
Barclays International
 
 
 
 
 
 
 
 
 
 
 
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
1,148
1,060
1,112
 
1,046
1,355
1,001
1,110
 
1,121
Net trading income
815
1,039
1,182
 
1,131
1,074
1,130
1,245
 
593
Net fee, commission and other income
1,352
1,511
1,844
 
1,415
1,422
1,908
1,158
 
1,254
Total income
3,315
3,610
4,138
 
3,592
3,851
4,039
3,513
 
2,968
Credit impairment charges and other provisions
(495)
(279)
(346)
 
(426)
(420)
(240)
(269)
 
(303)
Net operating income
2,820
3,331
3,792
 
3,166
3,431
3,799
3,244
 
2,665
Operating expenses excluding UK bank levy and litigation and conduct
(2,182)
(2,276)
(2,435)
 
(2,497)
(2,337)
(2,074)
(2,221)
 
(2,007)
UK bank levy
-
-
-
 
(284)
-
-
-
 
(253)
Litigation and conduct
(5)
4
(13)
 
(17)
(17)
(10)
(4)
 
(151)
Operating expenses
(2,187)
(2,272)
(2,448)
 
(2,798)
(2,354)
(2,084)
(2,225)
 
(2,411)
Other net income
19
202
12
 
5
8
11
8
 
8
Profit before tax
652
1,261
1,356
 
373
1,085
1,726
1,027
 
262
Attributable profit/(loss)
359
819
837
 
43
623
1,171
575
 
(24)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
220.7
204.8
226.1
 
211.3
233.7
230.6
215.9
 
184.1
Trading portfolio assets
91.2
83.3
83.0
 
73.2
73.8
68.1
64.3
 
61.9
Derivative financial instrument assets
242.8
108.4
105.3
 
156.2
155.6
181.4
150.1
 
111.5
Derivative financial instrument liabilities
242.9
116.8
112.8
 
160.6
160.5
187.5
155.4
 
119.0
Reverse repurchase agreements and other similar secured lending
15.5
17.2
17.6
 
13.4
17.3
19.7
19.1
 
24.7
Financial assets designated at fair value
103.7
94.1
81.3
 
62.3
72.0
68.3
59.6
 
46.8
Total assets
867.1
681.6
677.2
 
648.5
681.9
679.9
618.4
 
532.2
Customer deposits
241.0
230.3
241.0
 
216.2
224.1
226.5
213.1
 
185.6
Risk weighted assets
218.2
212.2
214.3
 
212.7
214.6
209.3
202.2
 
194.8
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
5.4%
12.4%
12.5%
 
1.0%
10.0%
19.2%
9.5%
 
(0.2%)
Average allocated tangible equity (£bn)
28.9
27.4
27.7
 
26.6
25.7
24.8
25.1
 
24.9
Cost: income ratio
66%
63%
59%
 
78%
61%
52%
63%
 
81%
Loan loss rate (bps)
88
54
62
 
78
71
41
50
 
65
Net interest margin
4.21%
4.07%
4.06%
 
3.91%
4.21%
3.92%
3.78%
 
3.79%
 
 
Analysis of Barclays International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Investment Bank
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Analysis of total income
 
 
 
 
 
 
 
 
 
 
Credit
259
296
399
 
261
333
269
322
 
195
Equities
350
455
462
 
410
461
406
513
 
319
Macro
368
456
490
 
505
614
612
573
 
382
Markets
977
1,207
1,351
 
1,176
1,408
1,287
1,408
 
896
Banking fees
607
674
726
 
650
644
622
481
 
458
Corporate lending
277
278
269
 
303
284
312
296
 
312
Transactional banking
419
404
398
 
401
458
390
408
 
415
Banking
1,303
1,356
1,393
 
1,354
1,386
1,324
1,185
 
1,185
Other
-
1
38
 
1
1
-
3
 
16
Total income
2,280
2,564
2,782
 
2,531
2,795
2,611
2,596
 
2,097
Credit impairment (charges)/releases and other provisions
(36)
1
(51)
 
(90)
(38)
(37)
(95)
 
(83)
Operating expenses
(1,661)
(1,756)
(1,941)
 
(2,287)
(1,872)
(1,665)
(1,800)
 
(1,962)
Other net income
10
116
-
 
1
-
-
-
 
-
Profit before tax
593
925
790
 
155
885
909
701
 
52
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
181.7
166.3
187.4
 
171.6
196.9
195.2
183.0
 
152.0
Customer deposits
182.7
173.0
183.4
 
166.2
175.8
179.6
168.9
 
143.8
Risk weighted assets
185.2
178.9
180.6
 
178.6
182.5
178.4
172.6
 
167.3
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
5.9%
11.1%
8.2%
 
(1.2%)
9.2%
9.5%
7.3%
 
(2.5%)
Average allocated tangible equity (£bn)
24.8
23.3
23.5
 
22.6
21.9
21.3
21.6
 
21.8
 
 
 
 
 
 
 
 
 
 
 
Consumer, Cards and Payments
 
 
 
 
 
 
 
 
 
 
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Total income
1,035
1,046
1,356
 
1,061
1,056
1,428
917
 
871
Credit impairment charges and other provisions
(459)
(280)
(295)
 
(336)
(382)
(203)
(174)
 
(219)
Operating expenses
(526)
(516)
(507)
 
(511)
(482)
(419)
(425)
 
(449)
Other net income
9
86
12
 
4
8
11
8
 
8
Profit before tax
59
336
566
 
218
200
817
326
 
210
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
39.0
38.5
 38.7
 
 39.7
 36.8
 35.4
 32.9
 
 32.1
Customer deposits
58.3
57.3
 57.6
 
 50.0
 48.3
 46.9
 44.2
 
 41.8
Risk weighted assets
33.0
33.3
 33.7
 
 34.1
 32.1
 30.9
 29.6
 
 27.5
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
2.2%
19.4%
36.4%
 
13.2%
14.8%
77.9%
23.4%
 
15.3%
Average allocated tangible equity (£bn)
4.2
4.1
 4.2
 
 4.0
 3.7
 3.5
 3.4
 
 3.2
 
 
Head Office
 
 
 
 
 
 
 
 
 
 
 
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
(174)
108
(115)
 
29
(206)
14
(20)
 
(75)
Net fee, commission and other income1
180
(24)
33
 
(38)
17
320
(13)
 
(210)
Total income
6
84
(82)
 
(9)
(189)
334
(33)
 
(285)
Credit impairment (charges)/releases and other provisions 
(13)
(1)
-
 
-
1
(2)
1
 
-
Net operating (expenses)/income
(7)
83
(82)
 
(9)
(188)
332
(32)
 
(285)
Operating expenses excluding UK bank levy and litigation and conduct
(112)
(40)
(49)
 
15
(29)
(36)
(85)
 
(64)
UK bank levy
-
-
-
 
(2)
-
-
-
 
(8)
Litigation and conduct
(65)
(1)
(10)
 
(1)
(8)
(11)
(7)
 
(17)
Operating expenses
(177)
(41)
(59)
 
12
(37)
(47)
(92)
 
(89)
Other net (expenses)/income
(22)
(164)
-
 
159
(4)
(28)
1
 
(14)
(Loss)/profit before tax
(206)
(122)
(141)
 
162
(229)
257
(123)
 
(388)
Attributable (loss)/profit
(199)
(175)
(123)
 
223
(203)
182
(92)
 
(140)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets
51.7
17.3
 74.5
 
 75.2
 73.3
 87.7
 63.4
 
 59.4
Risk weighted assets2
36.1
26.2
 52.9
 
53.3
47.5
43.2
 40.3
 
 39.7
 
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
10.5
8.8
 7.6
 
 7.2
 7.4
 6.6
 5.0
 
 3.9
 
 
1
Following the early adoption of the own credit provisions of IFRS 9 on 1 January 2017, own credit, which was previously reported in net fee, commission and other income, is now recognised within other comprehensive income from Q117.
2
Includes Africa Banking RWAs.
 
Barclays Non-Core Results
 
The Non-Core segment was closed on 1 July 2017 with the residual assets and liabilities reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office. Financial results up until 30 June 2017 are reflected in the Non-Core segment within the Group's results for the nine months ended 30 September 2017.
 
 
Barclays Non-Core
Six months ended
Nine months ended
 
30.06.17
30.09.16
Income statement information
£m
£m
Net interest income
(112)
214
Net trading income
(488)
(1,241)
Net fee, commission and other income
70
282
Total income
(530)
(745)
Credit impairment charges and other provisions
(30)
(75)
Net operating expenses
(560)
(820)
Operating expenses excluding litigation and conduct
(256)
(1,168)
Litigation and conduct
(28)
(195)
Operating expenses
(284)
(1,363)
Other net income
197
185
Loss before tax
(647)
(1,998)
Attributable loss
(419)
(1,418)
 
 
 
 
Q317
Q217
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
-
(123)
11
 
(54)
78
40
96
 
171
Net trading income
-
(411)
(77)
 
(462)
(288)
(463)
(490)
 
(398)
Net fee, commission and other income
-
78
(8)
 
97
51
79
152
 
159
Total income
-
(456)
(74)
 
(419)
(159)
(344)
(242)
 
(68)
Credit impairment charges and other provisions
-
(27)
(3)
 
(47)
(20)
(26)
(29)
 
(32)
Net operating expenses
-
(483)
(77)
 
(466)
(179)
(370)
(271)
 
(100)
Operating expenses excluding UK bank levy and litigation and conduct
-
(108)
(148)
 
(341)
(311)
(368)
(489)
 
(555)
UK bank levy
-
-
-
 
(76)
-
-
-
 
(88)
Litigation and conduct
-
(19)
(9)
 
(51)
(102)
(27)
(66)
 
(89)
Operating expenses
-
(127)
(157)
 
(468)
(413)
(395)
(555)
 
(732)
Other net income/(expenses)
-
204
(7)
 
146
498
(324)
11
 
(268)
Loss before tax
-
(406)
(241)
 
(788)
(94)
(1,089)
(815)
 
(1,100)
Tax credit/(charge)
-
207
75
 
322
194
229
237
 
(72)
(Loss)/profit after tax
-
(199)
(166)
 
(466)
100
(860)
(578)
 
(1,172)
Non-controlling interests
-
(8)
(9)
 
(14)
(13)
(12)
(10)
 
(19)
Other equity holders
-
(19)
(18)
 
(18)
(15)
(15)
(15)
 
(17)
Attributable (loss)/profit
-
(226)
(193)
 
(498)
72
(887)
(603)
 
(1,208)
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Loans and advances to banks and customers at amortised cost
-
48.3
 49.5
 
 51.1
 58.7
 68.5
 55.4
 
 51.8
Derivative financial instrument assets
-
150.3
 164.2
 
 188.7
 253.2
 262.8
 249.7
 
 213.7
Derivative financial instrument liabilities
-
143.0
 155.3
 
 178.6
 243.0
 253.4
 239.1
 
 202.1
Reverse repurchase agreements and other similar secured lending
-
-
 -  
 
 0.1
 0.1
 0.1
 0.7
 
 3.1
Financial assets designated at fair value
-
12.1
 13.4
 
 14.5
 15.5
 15.4
 23.4
 
 21.4
Total assets
-
233.0
 249.1
 
 279.7
 359.8
 379.1
 365.4
 
 325.8
Customer deposits
-
11.8
 12.9
 
 12.5
 16.0
 17.4
 19.3
 
 20.9
Risk weighted assets
-
22.8
 27.4
 
32.1
 43.9
 46.7
 50.9
 
 54.3
 
 
Discontinued Operation Results
 
On 1 March 2016, Barclays announced its intention to reduce the Group's 62.3% interest in BAGL to a level which would permit Barclays to deconsolidate BAGL from a regulatory perspective and, prior to that, from an accounting perspective. From this date, BAGL was treated as a discontinued operation. On 5 May 2016, Barclays sold 12.2% of the Group's interest in BAGL and on 1 June 2017 Barclays sold a further 33.7% of BAGL's issued share capital, resulting in the accounting deconsolidation of BAGL from the Barclays Group. As a result, as of 1 June 2017 BAGL was consequently no longer reported as a discontinued operation. The retained investment is reported in the Head Office segment, with Barclays' share of BAGL's dividend recognised in the Head Office income statement.
 
In Q317 Barclays contributed 1.5% of BAGL's ordinary shares to a Black Economic Empowerment scheme, resulting in Barclays accounting for 126 million ordinary shares in BAGL, representing 14.9% of BAGL's issued share capital, at 30 September 2017.
 
For regulatory reporting purposes, BAGL is treated on a proportional consolidated basis based on a holding of 21.9%. Barclays expects to proportionally consolidate BAGL based on a holding of 14.9% by 31 December 2017, following the expected delivery of 7.0% of BAGL's issued share capital as previously contracted. Subject to regulatory approval, Barclays expects to fully deconsolidate BAGL from a regulatory perspective by the end of 2018.
 
 
 Africa Banking
Nine months ended
Nine months ended
30.09.171
30.09.16
Income statement information
£m
£m
Net interest income
1,024
1,543
Net fee, commission and other income
762
1,136
Total income
1,786
2,679
Credit impairment charges and other provisions
(177)
(340)
Net operating income
1,609
2,339
Operating expenses excluding impairment of Barclays' holding in BAGL
(1,130)
(1,618)
Other net income excluding loss on sale of BAGL
5
4
Profit before tax excluding impairment of Barclays' holding in BAGL and loss on sale of BAGL
484
725
Impairment of Barclays' holding in BAGL
(1,090)
-
Loss on sale of BAGL
(1,435)
-
(Loss)/profit before tax
(2,041)
725
Tax charge
(154)
(205)
(Loss)/profit after tax
(2,195)
520
Attributable (loss)/profit
(2,335)
240
 
 
1
The Africa Banking income statement represents five months of results as a discontinued operation to 31 May 2017.
 
 
 
 
Q317
Q2171
Q117
 
Q416
Q316
Q216
Q116
 
Q415
Income statement information
£m
£m
£m
 
£m
£m
£m
£m
 
£m
Net interest income
-
407
617
 
626
561
502
480
 
468
Net fee, commission and other income
-
297
465
 
441
421
377
338
 
346
Total income
-
704
1,082
 
1,067
982
879
818
 
814
Credit impairment charges and other provisions
-
(71)
(106)
 
(105)
(96)
(133)
(111)
 
(93)
Net operating income
-
633
976
 
962
886
746
707
 
721
Operating expenses excluding UK bank levy and impairment of Barclays' holding in BAGL
-
(477)
(653)
 
(727)
(598)
(543)
(477)
 
(501)
UK bank levy
-
-
-
 
(65)
-
-
-
 
(50)
Other net income excluding loss on sale of BAGL
-
3
2
 
2
2
1
1
 
3
Profit before tax excluding impairment of Barclays' holding in BAGL and loss on sale of BAGL
-
159
325
 
172
290
204
231
 
173
Impairment of Barclays' holding in BAGL
-
(206)
(884)
 
-
-
-
-
 
-
Loss on sale of BAGL
-
(1,435)
-
 
-
-
-
-
 
-
(Loss)/profit before tax
-
(1,482)
(559)
 
172
290
204
231
 
173
(Loss)/profit after tax
-
(1,537)
(658)
 
71
209
145
166
 
101
Attributable (loss)/profit
-
(1,534)
(801)
 
(52)
85
70
86
 
25
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
 
£bn
Total assets
-
 -  
 66.0
 
 65.1
 61.1
 56.0
 52.7
 
 47.9
Risk weighted assets2
-
9.8
 41.3
 
 42.3
 39.9
 36.1
 33.9
 
 31.7
 
 
1
The Q217 Africa Banking income statement represents two months of results as a discontinued operation to 31 May 2017.
2
RWAs are reported in Head Office.
 
Performance Management
 
 
 
Margins and balances
 
 
 
 
 
 
 
 
Nine months ended 30.09.17
 
Nine months ended 30.09.16
 
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
 171,279
3.55
 
 4,546
 167,306
3.63
Barclays International1
 3,255
 106,183
4.10
 
 3,165
 105,507
4.01
Total Barclays UK and Barclays International
 7,801
 277,462
3.76
 
 7,711
 272,813
3.78
Other2
(228)
 
 
 
 303
 
 
Total net interest income3
 7,573
 
 
 
 8,014
 
 
 
 
1
Barclays International margins include interest earning lending balances within the investment banking business.
2
Other includes Head Office and non-lending related investment banking balances. Barclays Non-Core is included for the full comparative period and the first six months of the current period.
3
Group net interest income includes net structural hedge contributions of £1.1bn (Q316 YTD: £1.0bn).
 
 
 
 
 
Quarterly analysis for Barclays UK and Barclays International
Three months ended 30.09.17
 
Net interest income
Average customer assets
Net interest margin
 
£m
£m
%               
Barclays UK
1,501
181,419
3.28
Barclays International1
1,070
100,828
4.21
Total Barclays UK and Barclays International
2,571
282,247
3.61
 
 
 
 
 
Three months ended 30.06.17
Barclays UK
1,534
166,345
3.70
Barclays International1
1,064
104,899
4.07
Total Barclays UK and Barclays International
2,598
271,244
3.84
 
 
 
 
 
Three months ended 31.03.17
Barclays UK
1,511
166,065
3.69
Barclays International1
1,121
112,060
4.06
Total Barclays UK and Barclays International
2,632
278,125
3.84
 
 
 
 
 
Three months ended 31.12.16
Barclays UK
1,502
167,935
3.56
Barclays International1
1,110
112,936
3.91
Total Barclays UK and Barclays International
2,612
280,871
3.70
 
 
 
 
 
Three months ended 30.09.16
Barclays UK
1,569
167,713
3.72
Barclays International1
1,149
108,571
4.21
Total Barclays UK and Barclays International
2,718
276,284
3.91
 
 
1
Barclays International margins include interest earning lending balances within the investment banking business.
 
Credit Risk
 
 
Analysis of retail and wholesale loans and advances and impairment
 
 
Gross
loans and advances
Impairment allowance
Loans and advancesnet of impairment
Credit
risk loans
CRLs % of gross loans and advances
Loan impairment charges1
Loan loss rates
As at 30.09.17
£m
£m
£m
£m
%
£m
bps
Barclays UK
157,171
1,638
155,533
1,854
1.2
584
50
Barclays International
31,561
1,713
29,848
1,231
3.9
1,048
444
Head Office
9,537
291
9,246
713
7.5
11
15
Barclays Non-Core2
-
-
-
-
-
30
-
Total Group retail
198,269
3,642
194,627
3,798
1.9
1,673
113
 
 
 
 
 
 
 
 
Barclays UK
28,740
261
28,479
576
2.0
15
7
Barclays International
191,566
742
190,824
1,609
0.8
69
5
Head Office
7,595
118
7,477
210
2.8
4
7
Barclays Non-Core2
-
-
-
-
-
(1)
-
Total Group wholesale
227,901
1,121
226,780
2,395
1.1
87
5
 
 
 
 
 
 
 
 
Group total
426,170
4,763
421,407
6,193
1.5
1,760
55
 
 
 
 
 
 
 
 
Traded loans
3,856
n/a
3,856
n/a
 
 
 
Loans and advances designated at fair value
11,013
n/a
11,013
n/a
 
 
 
Loans and advances held at fair value
14,869
n/a
14,869
n/a
 
 
 
 
 
 
 
 
 
 
 
Total loans and advances
441,039
4,763
436,276
6,193
 
 
 
 
 
 
 
 
 
 
 
As at 31.12.16
 
 
 
 
 
 
 
Barclays UK
155,729
1,519
154,210
2,044
1.3
866
56
Barclays International
33,485
1,492
31,993
1,249
3.7
1,085
324
Barclays Non-Core
10,319
385
9,934
838
8.1
102
99
Total Group retail
199,533
3,396
196,137
4,131
2.1
2,053
103
 
 
 
 
 
 
 
 
Barclays UK
15,204
282
14,922
591
3.9
30
20
Barclays International
180,102
748
179,354
1,470
0.8
258
14
Head Office
4,410
-
4,410
-
-
-
-
Barclays Non-Core
41,406
194
41,212
299
0.7
11
3
Total Group wholesale
241,122
1,224
239,898
2,360
1.0
299
12
 
 
 
 
 
 
 
 
Group total
440,655
4,620
436,035
6,491
1.5
2,352
53
 
 
 
 
 
 
 
 
Traded loans
2,975
n/a
2,975
n/a
 
 
 
Loans and advances designated at fair value
10,519
n/a
10,519
n/a
 
 
 
Loans and advances held at fair value
13,494
n/a
13,494
n/a