Barclays PLC
Q1 2024 Results Announcement
31 March 2024
Notes
The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2024 to the corresponding three months of 2023 and balance sheet analysis as at 31 March 2024 with comparatives relating to 31 December 2023 and 31 March 2023. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively; and the abbreviations '€m' and '€bn' represent millions and thousands of millions of Euros respectively.
There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, which can be accessed at home.barclays/investor-relations.
The information in this announcement, which was approved by the Board of Directors on 24 April 2024, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2023, which contain an unmodified audit report under Section 495 of the Companies Act 2006 (which does not make any statements under Section 498 of the Companies Act 2006) has been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
These results will be furnished on Form 6-K to the US Securities and Exchange Commission (SEC) as soon as practicable following its publication. Once furnished to the SEC, a copy of the Form 6-K will be available 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 roadshows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.
Non-IFRS performance measures
Barclays' management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 39 to 43 for definitions and calculations of non-IFRS performance measures included throughout this document, and reconciliations to 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. 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. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital leverage and other regulatory ratios, capital distributions (including policy on dividends and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), plans and objectives for future operations, and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents and similar events beyond the Group's control; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and requirements applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates reforms to benchmark interest rates and indices; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and global macroeconomic conditions, political stability and financial markets; political elections; developments in the UK's relationship with the European Union ("EU"); the risk of cyberattacks, information or security breaches, technology failures or operational disruptions and any subsequent impact on the Group's reputation, business or operations; the Group's ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group's control. As a result, the Group's actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group's forward-looking statements. In setting its targets and outlook for the period 2024-2026, Barclays has made certain assumptions about the macroeconomic environment, including, without limitation, inflation, interest and unemployment rates, the different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Additional risks and factors which may impact the Group's future financial condition and performance are identified in Barclays PLC's filings with the US Securities and Exchange Commission ("SEC") (including, without limitation, Barclays PLC's Annual Report on Form 20-F for the financial year ended 31 December 2023), which are available on the SEC's website at www.sec.gov.
Subject to Barclays PLC's obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US) 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
In Q124 Barclays delivered a return on tangible equity (RoTE) of 12.3% and a tangible net asset value (TNAV) per share of 335p. RoTE target of greater than 10% in 2024 remains unchanged
C. S. Venkatakrishnan, Group Chief Executive, commented "In Q124 Barclays delivered a RoTE of 12.3% as we progress towards our targets of >10% RoTE in 2024, and >12% in 2026. We are focused on disciplined execution of the plan that we presented at our Investor Update on 20th February. We have now announced the sale of our performing Italian mortgage book and are investing in our higher returning UK consumer businesses, including through the expected completion of the Tesco Bank acquisition in Q424. We continue to exercise cost discipline and remain well capitalised with a Common Equity Tier 1 (CET1) ratio at the end of the quarter of 13.5%." |
• Group cost: income ratio of 60%. Target of c.63% in 2024 remains unchanged
- Delivered £0.2bn of the c.£1bn 2024 gross cost efficiency savings
• Loan loss rate (LLR) of 51bps, within the expected through the cycle range of 50-60bps
• CET1 ratio of 13.5%, in the middle of the target range of 13-14%
• Announced acquisition of Tesco Bank's retail banking business1, expected to complete in Q424
• Announced sale of the performing Italian mortgage portfolio, expected to complete in Q224
Key financial metrics:
| Income | Profit before tax | Attributable profit | Cost: income ratio | LLR | RoTE | EPS | TNAV per share | CET1 ratio |
Q124 | £7.0bn | £2.3bn | £1.6bn | 60% | 51bps | 12.3% | 10.3p | 335p | 13.5% |
Q124 Performance highlights:
• Group RoTE was 12.3% (Q123: 15.0%) with profit before tax of £2.3bn (Q123: £2.6bn)
• Group income of £7.0bn down 4% year-on-year, with Group net interest income (NII) excluding Barclays Investment Bank (IB) and Head Office of £2.7bn, of which Barclays UK NII of £1.5bn
- Barclays UK income decreased 7%, as higher structural hedge income was more than offset by adverse product dynamics in deposits and mortgages, in addition to the transfer of Wealth Management & Investments (WM&I) to Barclays Private Bank and Wealth Management (PBWM)2
- Barclays UK Corporate Bank (UKCB) income decreased 6%, reflecting lower liquidity pool income whilst maintaining stable average deposits
- PBWM income increased 20%, reflecting the transfer of WM&I from Barclays UK, partially offset by lower NII due to adverse deposit dynamics
- IB income decreased 7%. Within Global Markets, strong performance in Equities was more than offset by lower FICC income. In Investment Banking, increased fee income in Debt and Equity capital markets were more than offset by lower fee income in Advisory and lower income in Transaction banking
- Barclays US Consumer Bank (USCB) income increased 4%, reflecting higher cards balances
• Group total operating expenses were £4.2bn, up 2% year-on-year, including the £120m impact of the Bank of England (BoE) levy scheme
- Group operating costs decreased 3%, reflecting £0.2bn of efficiency savings, more than offsetting the impact of inflation, investment spend and business growth
• Credit impairment charges were £0.5bn (Q123: £0.5bn) with an LLR of 51bps (Q123: 52bps)
• CET1 ratio of 13.5% (December 2023: 13.8%), with Risk Weighted Assets (RWAs) of £349.6bn (December 2023: £342.7bn) and TNAV per share of 335p (December 2023: 331p)
1 | See Other matters on page 6 for further details on the acquisition of Tesco Bank's retail banking business. |
2 | WM&I was transferred out of Barclays UK in Q223. |
Group Financial Targets and Outlook:
2024
• Returns: targeting RoTE of greater than 10% and c.10.5% excluding inorganic activity
• Income: targeting Barclays Group NII excluding IB and Head Office of c.£10.7bn, of which Barclays UK NII of c.£6.1bn1
• Costs: targeting Group cost: income ratio of c.63%, which includes c.£1bn of gross efficiency savings in 2024
• Impairment: expect an LLR of 50-60bps through the cycle
• Capital: expect to operate within the CET1 ratio target range of 13-14%
2026
• Returns: targeting a greater than 12% RoTE
• Capital returns: plan to return at least £10bn of capital to shareholders between 2024 and 2026, through dividends and share buybacks, with a continued preference for buybacks. Plan to keep total dividend stable at 2023 level in absolute terms, with progressive dividend per share growth driven through share count reduction as a result of increased share buybacks. Dividends will continue to be paid semi-annually. This multi-year plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14%
• Income: targeting Group total income of c.£30bn
• Costs: targeting total Group operating expenses of c.£17.0bn and a Group cost: income ratio of high 50s in percentage terms. This includes total gross efficiency savings of c.£2bn by 2026
• Impairment: expect an LLR of 50-60bps through the cycle
• Capital: expect to operate within the CET1 ratio target range of 13-14%
- Targeting IB RWAs of c.50% of Group RWAs in 2026
- Impact of regulatory change on RWAs in line with prior guidance, expected to be at lower end of 5-10% of Group RWAs. This includes c.£16bn RWAs expected in H224 due to USCB moving to Internal Ratings-Based (IRB) models
Prior period segmental comparators:
• Barclays segmental reporting now reflects five operating divisions, in addition to Head Office:
- Barclays UK
- Barclays UK Corporate Bank
- Barclays Private Bank and Wealth Management
- Barclays Investment Bank
- Barclays US Consumer Bank
• Prior period segmental comparators shown in this document were re-presented in the 2023 Results Resegmentation Document, which may be accessed via the Barclays website at home.barclays/investor-relations
1 | This excludes the impact of the acquisition of Tesco Bank's retail banking business, which is expected to generate annualised NII of c.£400m in the first year post-completion. See Other Matters on page 6 for further details of the acquisition. |
Barclays Group results | | ||
for the three months ended | 31.03.24 | 31.03.23 | |
| £m | £m | % Change |
Barclays UK | 1,826 | 1,961 | (7) |
Barclays UK Corporate Bank | 434 | 463 | (6) |
Barclays Private Bank and Wealth Management | 312 | 259 | 20 |
Barclays Investment Bank | 3,328 | 3,569 | (7) |
Barclays US Consumer Bank | 859 | 826 | 4 |
Head Office | 194 | 159 | 22 |
Total income | 6,953 | 7,237 | (4) |
Operating costs | (3,998) | (4,111) | 3 |
UK regulatory levies1 | (120) | - | |
Litigation and conduct | (57) | 1 | |
Total operating expenses | (4,175) | (4,110) | (2) |
Other net income/(expenses) | 12 | (5) | |
Profit before impairment | 2,790 | 3,122 | (11) |
Credit impairment charges | (513) | (524) | 2 |
Profit before tax | 2,277 | 2,598 | (12) |
Tax charge | (465) | (561) | 17 |
Profit after tax | 1,812 | 2,037 | (11) |
Non-controlling interests | (3) | (8) | 63 |
Other equity instrument holders | (259) | (246) | (5) |
Attributable profit | 1,550 | 1,783 | (13) |
| | | |
Performance measures | | | |
Return on average tangible shareholders' equity | 12.3% | 15.0% | |
Average tangible shareholders' equity (£bn) | 50.5 | 47.6 | |
Cost: income ratio | 60% | 57% | |
Loan loss rate (bps) | 51 | 52 | |
Basic earnings per ordinary share | 10.3p | 11.3p | |
Basic weighted average number of shares (m) | 14,983 | 15,770 | (5) |
Period end number of shares (m) | 15,091 | 15,701 | (4) |
Period end tangible shareholders' equity (£bn) | 50.6 | 47.3 | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet and capital management2 | £bn | £bn | £bn |
Loans and advances at amortised cost | 397.9 | 399.5 | 403.5 |
Loans and advances at amortised cost impairment coverage ratio | 1.4% | 1.4% | 1.4% |
Total assets | 1,577.1 | 1,477.5 | 1,539.1 |
Deposits at amortised cost | 552.3 | 538.8 | 555.7 |
Tangible net asset value per share | 335p | 331p | 301p |
Common equity tier 1 ratio | 13.5% | 13.8% | 13.6% |
Common equity tier 1 capital | 47.1 | 47.3 | 46.0 |
Risk weighted assets | 349.6 | 342.7 | 338.4 |
UK leverage ratio | 4.9% | 5.2% | 5.1% |
UK leverage exposure | 1,226.5 | 1,168.3 | 1,168.9 |
| | | |
Funding and liquidity | | | |
Group liquidity pool (£bn) | 323.5 | 298.1 | 333.0 |
Liquidity coverage ratio3 | 163% | 161% | 157% |
Net stable funding ratio4 | 136% | 138% | 139% |
Loan: deposit ratio | 72% | 74% | 73% |
1 | Comprises the impact of the BoE levy scheme and the UK bank levy. |
2 | Refer to pages 31 to 35 for further information on how capital, RWAs and leverage are calculated. |
3 | The liquidity coverage ratio (LCR) is now shown on an average basis, based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency. |
4 | Represents average of the last four spot quarter end positions. |
Group Finance Director's Review
Group performance
• Barclays delivered a profit before tax of £2,277m (Q123: £2,598m), RoTE of 12.3% (Q123: 15.0%) and earnings per share (EPS) of 10.3p (Q123: 11.3p)
• Group income decreased 4% to £6,953m as higher structural hedge income, strong performance in Equities and balance growth in USCB were more than offset by lower FICC income in IB, lower inflation linked income as well as adverse product dynamics in Barclays UK deposits and mortgages
• Group total operating expenses increased to £4,175m (Q123: £4,110m) including the £120m impact of the BoE levy scheme
- Group operating costs decreased 3% to £3,998m, reflecting efficiency savings, partially offset by the impact of inflation, investment spend and business growth
• Credit impairment charges were £513m (Q123: £524m), driven by the anticipated higher delinquencies in USCB, which led to a higher coverage ratio of 11.0% in that portfolio. Total coverage ratio remains stable at 1.4% (December 2023: 1.4%)
• The effective tax rate (ETR) was 20.4% (Q123: 21.6%)
• Attributable profit was £1,550m (Q123: £1,783m)
• Total assets increased to £1,577.1bn (December 2023: £1,477.5bn) driven by an increase in trading securities and secured lending in IB, and an increase in the liquidity pool due to increased deposits
• TNAV per share increased to 335p (December 2023: 331p) as EPS of 10.3p was partially offset by negative cash flow hedge reserve movements of 2p, and net negative other reserve movements
Group capital and leverage
• The CET1 ratio decreased to 13.5% (December 2023: 13.8%) as RWAs increased by £6.9bn to £349.6bn and CET1 capital decreased by £0.2bn to £47.1bn:
- c.40bps increase from attributable profit generated in the quarter
- c.40bps decrease driven by shareholder distributions including the £1.0bn share buyback announced with FY23 results and an accrual towards the FY24 dividend
- c.30bps decrease as a result of a £6.9bn increase in RWAs primarily driven by expected seasonal activity in the Investment Bank and regulatory model changes in Barclays UK which are expected to be partially offset for the full year
• The UK leverage ratio decreased to 4.9% (December 2023: 5.2%) primarily due to a £58.2bn increase in leverage exposure to £1,226.5bn, largely driven by an increase in trading securities and secured lending in Global Markets
Group funding and liquidity
• The liquidity metrics remain well above regulatory requirements, underpinned by well-diversified sources of funding, a stable global deposit franchise and a highly liquid balance sheet
• The liquidity pool was £323.5bn (December 2023: £298.1bn). The increase in the liquidity pool was driven by the expected increase in short term bank deposits after a drop at the year-end and a strong deposit growth in International Corporate Bank which is partially offset by a slight seasonal decline in Barclays UK deposits
• The average1 Liquidity Coverage Ratio (LCR) increased to 163% (December 2023: 161%), equivalent to a surplus of £117.8bn (December 2023: £117.7bn)
• Total deposits increased by £13.5bn to £552.3bn (December 2023: £538.8bn)
• The average2 Net Stable Funding Ratio (NSFR) was 136% (December 2023: 138%), which represents a £160.4bn (December 2023: £167.1bn) surplus above the 100% regulatory requirement
• Wholesale funding outstanding, excluding repurchase agreements, was £190.6bn (December 2023: £176.8bn)
• The Group issued £5.4bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) in Q124. The Group has a strong MREL position with a ratio of 33.4%, which is in excess of the regulatory requirement of 30.1% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer
1 | Represents average of the last 12 spot month end ratios. |
2 | Represents average of the last four spot quarter end ratios. |
Other matters
• Acquisition of Tesco Bank's retail banking business: on 9 February 2024, Barclays entered into an agreement with Tesco Personal Finance plc (operating using the trading name "Tesco Bank") to acquire its retail banking business. The acquisition is expected to reduce Barclays' CET1 ratio by c.30bps on completion, which is expected to occur in Q424, subject to court sanction and regulatory approvals
• FCA motor finance review: in January 2024, the UK Financial Conduct Authority (FCA) announced that it was appointing a skilled person to undertake a review of the historical use of discretionary commission arrangements and sales in the motor finance market across several firms. The FCA plans to set out next steps on this matter by the end of September 2024. Clydesdale Financial Services Limited (CFS), a member of the Group, ceased operating in the motor finance market in late 2019 but is co-operating fully with the FCA's skilled person review, the outcome of which is unknown, including any potential financial impact. The FCA intervention followed two final decisions by the UK Financial Ombudsman Service (FOS), including one upholding a complaint against CFS in relation to commission arrangements and disclosure in the sale of motor finance products and a number of complaints and court claims, including some against CFS. We have commenced a judicial review challenge to the FOS in the High Court in relation to this decision
• BoE levy scheme: following parliamentary approval, the new levy process commenced in Q124 replacing the Cash Ratio Deposit scheme as a means of funding the Bank of England's monetary policy and financial stability operations. This change in scheme moves the charge from negative income recognised over the course of the year to an annual operating expense at the start of the levy year (running from 1 March to 28 February). Barclays' estimated contribution for the 2024/2025 financial year is £120m, reported in the UK regulatory levies account line, reducing Q124 Group RoTE by c.0.7%. This will be partially offset by increased income of c.£75m through lower funding costs during 2024, with an expected overall net full year Group RoTE impact of c.0.1%. The final charge is expected to be confirmed during Q324
• Disposal of Italian retail mortgages: on 24 April 2024, Barclays announced a transaction under which Barclays Bank Ireland PLC intends to dispose of its performing Italian retail mortgage book currently held in Head Office. The sale is expected to complete in Q224. It is expected to generate a pre-tax loss of c.£225m for the year to 31 December 2024 and reduce RWAs by c.£0.8bn at completion. The transaction is expected to be broadly neutral to Barclays' CET1 ratio
- In addition, Barclays is in discussion with respect to the disposals of the remaining non-performing and Swiss-Franc linked Italian retail mortgage portfolios. Should such sales occur, they are together expected to generate a small pre-tax loss on sale, but also be broadly neutral to Barclays' CET1 ratio
• Sale of German consumer finance business: Barclays is currently engaged in a process to sell its German consumer finance business (comprising credit cards, unsecured personal loans and deposits), held in Head Office, as part of our ambition to simplify Barclays and support our focus on growing our key businesses. The sale is expected to complete in H224, and be accretive to Barclays' CET1 ratio
Anna Cross, Group Finance Director
Results by Business
Barclays UK | Three months ended | ||
| 31.03.24 | 31.03.23 | |
Income statement information | £m | £m | % Change |
Net interest income | 1,549 | 1,618 | (4) |
Net fee, commission and other income | 277 | 343 | (19) |
Total income | 1,826 | 1,961 | (7) |
Operating costs | (1,007) | (1,092) | 8 |
UK regulatory levies | (54) | - | |
Litigation and conduct | (2) | (2) | |
Total operating expenses | (1,063) | (1,094) | 3 |
Other net income | - | - | |
Profit before impairment | 763 | 867 | (12) |
Credit impairment charges | (58) | (113) | 49 |
Profit before tax | 705 | 754 | (6) |
Attributable profit | 479 | 515 | (7) |
| | | |
Performance measures | | | |
Return on average allocated tangible equity | 18.5% | 20.0% | |
Average allocated tangible equity (£bn) | 10.4 | 10.3 | |
Cost: income ratio | 58% | 56% | |
Loan loss rate (bps) | 11 | 20 | |
Net interest margin | 3.09% | 3.18% | |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet information | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 200.8 | 202.8 | 208.2 |
Total assets | 293.3 | 293.1 | 308.6 |
Customer deposits at amortised cost | 237.2 | 241.1 | 254.3 |
Loan: deposit ratio | 92% | 92% | 90% |
Risk weighted assets | 76.5 | 73.5 | 74.6 |
Period end allocated tangible equity | 10.7 | 10.2 | 10.3 |
Analysis of Barclays UK | Three months ended | ||
31.03.24 | 31.03.23 | | |
Analysis of total income | £m | £m | % Change |
Personal Banking | 1,128 | 1,253 | (10) |
Barclaycard Consumer UK | 229 | 247 | (7) |
Business Banking | 469 | 461 | 2 |
Total income | 1,826 | 1,961 | (7) |
| | | |
Analysis of credit impairment charges | | | |
Personal Banking | (14) | (28) | 50 |
Barclaycard Consumer UK | (38) | (83) | 54 |
Business Banking | (6) | (2) | |
Total credit impairment charges | (58) | (113) | 49 |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Analysis of loans and advances to customers at amortised cost | £bn | £bn | £bn |
Personal Banking | 169.0 | 170.1 | 173.6 |
Barclaycard Consumer UK | 9.8 | 9.7 | 9.0 |
Business Banking | 22.0 | 23.0 | 25.6 |
Total loans and advances to customers at amortised cost | 200.8 | 202.8 | 208.2 |
| | | |
Analysis of customer deposits at amortised cost | | | |
Personal Banking | 183.4 | 185.4 | 194.3 |
Barclaycard Consumer UK | - | - | - |
Business Banking | 53.8 | 55.7 | 60.0 |
Total customer deposits at amortised cost | 237.2 | 241.1 | 254.3 |
Barclays UK delivered a RoTE of 18.5% supported by resilient returns and the continued investment in our transformation into a simpler, better and more balanced retail bank.
Income statement - Q124 compared to Q123
• Profit before tax decreased 6% to £705m with a RoTE of 18.5% (Q123: 20.0%)
• Total income decreased 7% to £1,826m. NII decreased 4% to £1,549m, as continued structural hedge momentum was more than offset by mortgage margin pressure and adverse deposit dynamics reflecting wider market trends. Net fee, commission and other income decreased 19% to £277m primarily from the impact of the transfer of WM&I to PBWM
• Total operating expenses decreased 3% to £1,063m driven by the transfer of WM&I to PBWM partially offset by the impact of inflation and the impact of the BoE levy scheme. Ongoing efficiency savings continue to be reinvested, including in our transformation programme to support sustainable improvement to the cost: income ratio
• Credit impairment charges were £58m (Q123: £113m), consistent with low delinquencies in UK cards, high quality mortgage lending portfolio and the improved macroeconomic outlook. UK cards 30 and 90 day arrears remained low at 0.9% (Q123: 0.9%) and 0.2% (Q123: 0.2%) respectively. The UK cards total coverage ratio was 6.5% (December 2023: 6.8%)
Balance sheet - 31 March 2024 compared to 31 December 2023
• Loans and advances to customers at amortised cost decreased by 1% to £200.8bn (December 2023: £202.8bn), reflecting subdued mortgage lending amid lower market demand and continued repayment of government scheme lending in Business Banking
• Customer deposits at amortised cost decreased 2% to £237.2bn (December 2023: £241.1bn), driven by reduced current account balances, reflecting broader market trends. The loan: deposit ratio remained stable at 92% (December 2023: 92%)
• RWAs increased to £76.5bn (December 2023: £73.5bn) driven by regulatory model changes which are expected to be partially offset for the full year
Barclays UK Corporate Bank | Three months ended | ||
| 31.03.24 | 31.03.23 | |
Income statement information | £m | £m | % Change |
Net interest income | 277 | 310 | (11) |
Net fee, commission, trading and other income | 157 | 153 | 3 |
Total income | 434 | 463 | (6) |
Operating costs | (221) | (210) | (5) |
UK regulatory levies | (30) | - | |
Litigation and conduct | - | - | |
Total operating expenses | (251) | (210) | (20) |
Other net income | - | 1 | |
Profit before impairment | 183 | 254 | (28) |
Credit impairment charges | (15) | (24) | 38 |
Profit before tax | 168 | 230 | (27) |
Attributable profit | 113 | 157 | (28) |
| | | |
Performance measures | | | |
Return on average allocated tangible equity | 15.2% | 21.7% | |
Average allocated tangible equity (£bn) | 3.0 | 2.9 | |
Cost: income ratio | 58% | 45% | |
Loan loss rate (bps) | 23 | 36 | |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet information | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 25.7 | 26.4 | 27.2 |
Deposits at amortised cost | 81.7 | 84.9 | 83.6 |
Risk weighted assets | 21.4 | 20.9 | 20.2 |
Period end allocated tangible equity | 3.0 | 3.0 | 2.9 |
| | | |
| Three months ended | ||
| 31.03.24 | 31.03.23 | |
Analysis of total income | £m | £m | % Change |
Corporate lending | 72 | 61 | 18 |
Transaction banking | 362 | 402 | (10) |
Total income | 434 | 463 | (6) |
UKCB delivered a RoTE of 15.2%, with stable average deposits supporting strong returns despite lower liquidity pool income, the impact of the BoE levy scheme and continued investment to support future growth ambitions.
Income statement - Q124 compared to Q123
• Profit before tax decreased 27% to £168m with a RoTE of 15.2% (Q123: 21.7%)
• Total income decreased 6% to £434m. NII decreased 11% to £277m reflecting lower liquidity pool income. Net fee, commission, trading and other income was stable at £157m (Q123: £153m)
• Total operating expenses increased 20% to £251m, reflecting the impact of the BoE levy scheme and higher investment spend to support future growth ambitions
• Credit impairment charges were £15m (Q123: £24m), driven by resilient underlying credit performance and the improved macroeconomic outlook
Balance sheet - 31 March 2024 compared to 31 December 2023
• RWAs were broadly stable at £21.4bn (December 2023: £20.9bn)
Barclays Private Bank and Wealth Management | Three months ended | ||
| 31.03.24 | 31.03.23 | |
Income statement information | £m | £m | % Change |
Net interest income | 175 | 181 | (3) |
Net fee, commission and other income | 137 | 78 | 76 |
Total income | 312 | 259 | 20 |
Operating costs | (214) | (144) | (49) |
UK regulatory levies | (3) | - | |
Litigation and conduct | - | - | |
Total operating expenses | (217) | (144) | (51) |
Other net income | - | - | |
Profit before impairment | 95 | 115 | (17) |
Credit impairment charges | - | (3) | |
Profit before tax | 95 | 112 | (15) |
Attributable profit | 74 | 90 | (18) |
| | | |
Performance measures | | | |
Return on average allocated tangible equity | 28.7% | 34.5% | |
Average allocated tangible equity (£bn) | 1.0 | 1.0 | |
Cost: income ratio | 70% | 56% | |
Loan loss rate (bps) | - | 7 | |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet information | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 13.7 | 13.6 | 14.3 |
Deposits at amortised cost | 61.9 | 60.3 | 60.8 |
Risk weighted assets | 7.2 | 7.2 | 7.5 |
Period end allocated tangible equity | 1.0 | 1.0 | 1.0 |
Client assets and liabilities1 | 189.1 | 182.9 | 141.5 |
PBWM delivered a RoTE of 28.7%, supported by growth in client balances of c.£48bn, which is predominantly invested assets2 as a result of WM&I transfer and underlying growth.
Income statement - Q124 compared to Q123
• Profit before tax decreased 15% to £95m with a RoTE of 28.7% (Q123: 34.5%)
• Total income increased 20% to £312m. NII decreased 3% to £175m mainly due to adverse deposit dynamics reflecting wider market trends. Net fee, commission and other income increased 76% to £137m reflecting the transfer of WM&I from Barclays UK and client balance growth
• Total operating expenses increased 51% to £217m, reflecting the transfer of WM&I from Barclays UK and higher investment spend to support growth
Balance sheet - 31 March 2024 compared to 31 December 2023
• RWAs were stable at £7.2bn (December 2023: £7.2bn)
1 | Client assets and liabilities refers to customer deposits, lending and invested assets, including c.£28bn WM&I invested assets transferred from Barclays UK in May 2023. |
2 | Invested assets represent assets under management and supervision. |
Barclays Investment Bank | Three months ended | ||
| 31.03.24 | 31.03.23 | |
Income statement information | £m | £m | % Change |
Net interest income | 197 | 159 | 24 |
Net trading income | 1,982 | 2,435 | (19) |
Net fee, commission and other income | 1,149 | 975 | 18 |
Total income | 3,328 | 3,569 | (7) |
Operating costs | (1,957) | (2,032) | 4 |
UK regulatory levies | (33) | - | |
Litigation and conduct | (9) | 2 | |
Total operating expenses | (1,999) | (2,030) | 2 |
Other net expenses | - | (1) | |
Profit before impairment | 1,329 | 1,538 | (14) |
Credit impairment releases/(charges) | 10 | (25) | |
Profit before tax | 1,339 | 1,513 | (12) |
Attributable profit | 899 | 1,048 | (14) |
| | | |
Performance measures | | | |
Return on average allocated tangible equity | 12.0% | 14.4% | |
Average allocated tangible equity (£bn) | 30.0 | 29.1 | |
Cost: income ratio | 60% | 57% | |
Loan loss rate (bps) | (4) | 10 | |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet information | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 64.6 | 62.7 | 63.1 |
Loans and advances to banks at amortised cost | 7.6 | 7.3 | 9.1 |
Debt securities at amortised cost | 40.4 | 38.9 | 30.7 |
Loans and advances at amortised cost | 112.6 | 108.9 | 102.9 |
Trading portfolio assets | 195.3 | 174.5 | 137.6 |
Derivative financial instrument assets | 248.9 | 255.1 | 256.5 |
Financial assets at fair value through the income statement | 225.1 | 202.5 | 243.8 |
Cash collateral and settlement balances | 129.8 | 102.3 | 124.3 |
Other assets | 200.4 | 175.8 | 198.8 |
Total assets | 1,112.1 | 1,019.1 | 1,063.9 |
Deposits at amortised cost | 151.1 | 132.7 | 137.3 |
Derivative financial instrument liabilities | 241.5 | 249.7 | 246.7 |
Risk weighted assets | 200.4 | 197.3 | 198.0 |
Period end allocated tangible equity | 29.6 | 29.0 | 28.9 |
| Three months ended | ||
| 31.03.24 | 31.03.23 | |
Analysis of total income | £m | £m | % Change |
FICC | 1,404 | 1,788 | (21) |
Equities | 883 | 704 | 25 |
Global Markets | 2,287 | 2,492 | (8) |
Advisory | 148 | 212 | (30) |
Equity capital markets | 68 | 50 | 36 |
Debt capital markets | 401 | 341 | 18 |
Fees | 617 | 603 | 2 |
Corporate lending | 42 | 33 | 27 |
Transaction banking | 382 | 441 | (13) |
International Corporate Bank | 424 | 474 | (11) |
Investment Banking | 1,041 | 1,077 | (3) |
Total income | 3,328 | 3,569 | (7) |
IB delivered a RoTE of 12.0% reflecting the benefit of diversified income streams with an increase in Equities and Investment Banking fee income, offset by a decrease in FICC income from lower client activity, lower costs and a net credit impairment release following improvements in macro economic outlook.
Income statement - Q124 compared to Q123
• IB RoTE was 12.0% (Q123: 14.4%) with a profit before tax of £1,339m (Q123: £1,513m)
• Total income decreased 7% to £3,328m
- Global Markets income decreased 8% to £2,287m as a strong performance in Equities was more than offset by lower income in FICC. Equities income increased 25% to £883m, driven by growth in Derivatives, Cash and Prime financing balances, additionally supported by a £125m fair value gain on Visa B shares. FICC income decreased 21% to £1,404m, reflecting lower client activity in Macro and the non-repeat of inflation benefit from prior year, partially offset by strong performance in securitised products
- Investment Banking income decreased 3% to £1,041m
- Investment Banking fee income increased 2% to £617m driven by Equity and Debt capital markets. Equity and Debt capital markets fees increased 36% and 18% respectively, reflecting improved fee pool and market share1 with Advisory income decreasing 30% against a strong prior year comparator2
- International Corporate Bank income decreased 11% to £424m, mainly driven by Transaction banking which decreased 13% to £382m due to margin compression as customers migrate to higher interest returning products whilst total deposit balances remained stable and lower liquidity pool income. Corporate lending income increased to £42m (Q123: £33m) mainly from lower costs of hedging
• Total operating expenses decreased 2% to £1,999m reflecting efficiency savings, partially offset by the impact of the BoE levy scheme and the impact of inflation
• Credit impairment net release of £10m (Q123: £25m charge), driven by the improved macroeconomic outlook and the benefit of credit protection with limited single name charges in the period
Balance sheet - 31 March 2024 compared to 31 December 2023
• RWAs increased to £200.4bn (December 2023: £197.3bn) driven by expected seasonal activity across Global Markets and Investment Banking
1 | Data source: Dealogic for the period covering 1 January to 31 March 2024. |
2 | On a comparable basis, period covering 2014-Q124. |
Barclays US Consumer Bank | Three months ended | ||
| 31.03.24 | 31.03.23 | |
Income statement information | £m | £m | % Change |
Net interest income | 688 | 634 | 9 |
Net fee, commission and other income | 171 | 192 | (11) |
Total income | 859 | 826 | 4 |
Operating costs | (387) | (427) | 9 |
UK regulatory levies | - | - | |
Litigation and conduct | (3) | - | |
Total operating expenses | (390) | (427) | 9 |
Other net income | - | - | |
Profit before impairment | 469 | 399 | 18 |
Credit impairment charges | (410) | (321) | (28) |
Profit before tax | 59 | 78 | (24) |
Attributable profit | 44 | 59 | (25) |
| | | |
Performance measures | | | |
Return on average allocated tangible equity | 5.3% | 7.5% | |
Average allocated tangible equity (£bn) | 3.3 | 3.1 | |
Cost: income ratio | 46% | 52% | |
Loan loss rate (bps) | 610 | 515 | |
Net interest margin | 11.12% | 10.97% | |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet information | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 23.6 | 24.2 | 22.5 |
Deposits at amortised cost | 20.3 | 19.7 | 18.1 |
Risk weighted assets | 23.9 | 24.8 | 22.5 |
Period end allocated tangible equity | 3.3 | 3.4 | 3.1 |
USCB delivered a RoTE of 5.3%, with growth in cards balances, and sold c.£0.9bn ($1.1bn) of the outstanding credit card receivables to Blackstone, which reduced our capital requirements.
Income statement - Q124 compared to Q123
• Profit before tax was £59m (Q123: £78m) with a RoTE of 5.3% (Q123: 7.5%)
• Total income increased 4% to £859m. NII increased of 9% to £688m reflecting higher cards balances. Net fee, commission and other income decreased 11% to £171m as increased profit drove a higher partner profit share
• Total operating expenses decreased 9% to £390m, driven by efficiency savings and lower marketing costs
• Credit impairment charges increased to £410m (Q123: £321m), driven by the anticipated higher delinquencies, which led to higher coverage ratios. 30 and 90 day arrears were 3.1% (Q123: 2.3%) and 1.7% (Q123: 1.2%) respectively. The US cards total coverage ratio was 11.0% (December 2023: 10.2%)
Balance sheet - 31 March 2024 compared to 31 December 2023
• RWAs decreased to £23.9bn (December 2023: £24.8bn), reflecting the Blackstone sale and the seasonal decline in receivables
Head Office | Three months ended | ||
| 31.03.24 | 31.03.23 | |
Income statement information | £m | £m | % Change |
Net interest income | 186 | 150 | 24 |
Net fee, commission and other income | 8 | 8 | - |
Total income | 194 | 159 | 22 |
Operating costs | (211) | (206) | (2) |
UK regulatory levies | - | - | |
Litigation and conduct | (44) | (1) | |
Total operating expenses | (255) | (205) | |
Other net income/(expenses) | 12 | (5) | |
Loss before impairment | (49) | (51) | 4 |
Credit impairment charges | (40) | (38) | (5) |
Loss before tax | (89) | (89) | - |
Attributable loss | (59) | (86) | 31 |
| | | |
Performance measures | | | |
Average allocated tangible equity (£bn) | 2.8 | 1.2 | |
| | | |
| As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
Balance sheet information | £bn | £bn | £bn |
Risk weighted assets | 20.2 | 19.0 | 15.6 |
Period end allocated tangible equity | 3.0 | 3.6 | 1.1 |
Income statement - Q124 compared to Q123
• Loss before tax was £89m (Q123: £89m)
• Total income increased to £194m (Q123: £159m) driven by a gain on disposal of a legacy investment and increased German cards income, partially offset by lower Payments income, hedge accounting and treasury items
• Total operating expenses increased to £255m (Q123: £205m) driven by higher litigation and conduct charges
• Credit impairment charges were £40m (Q123: £38m), reflecting stable credit performance
Balance sheet - 31 March 2024 compared to 31 December 2023
• RWAs increased to £20.2bn (December 2023: £19.0bn)
Quarterly Results Summary
Barclays Group | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 3,072 | | 3,139 | 3,247 | 3,270 | 3,053 | | 2,741 | 3,068 | 2,422 |
Net fee, commission and other income | 3,881 | | 2,459 | 3,011 | 3,015 | 4,184 | | 3,060 | 2,883 | 4,286 |
Total income | 6,953 | | 5,598 | 6,258 | 6,285 | 7,237 | | 5,801 | 5,951 | 6,708 |
Operating costs | (3,998) | | (4,735) | (3,949) | (3,919) | (4,111) | | (3,748) | (3,939) | (3,682) |
UK regulatory levies | (120) | | (180) | - | - | - | | (176) | - | - |
Litigation and conduct | (57) | | (5) | - | (33) | 1 | | (79) | 339 | (1,334) |
Total operating expenses | (4,175) | | (4,920) | (3,949) | (3,952) | (4,110) | | (4,003) | (3,600) | (5,016) |
Other net income/(expenses) | 12 | | (16) | 9 | 3 | (5) | | 10 | (1) | 7 |
Profit before impairment | 2,790 | | 662 | 2,318 | 2,336 | 3,122 | | 1,808 | 2,350 | 1,699 |
Credit impairment charges | (513) | | (552) | (433) | (372) | (524) | | (498) | (381) | (200) |
Profit before tax | 2,277 | | 110 | 1,885 | 1,964 | 2,598 | | 1,310 | 1,969 | 1,499 |
Tax (charges)/credit | (465) | | 23 | (343) | (353) | (561) | | 33 | (249) | (209) |
Profit after tax | 1,812 | | 133 | 1,542 | 1,611 | 2,037 | | 1,343 | 1,720 | 1,290 |
Non-controlling interests | (3) | | (25) | (9) | (22) | (8) | | (22) | (2) | (20) |
Other equity instrument holders | (259) | | (219) | (259) | (261) | (246) | | (285) | (206) | (199) |
Attributable profit/(loss) | 1,550 | | (111) | 1,274 | 1,328 | 1,783 | | 1,036 | 1,512 | 1,071 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Return on average tangible shareholders' equity | 12.3% | | (0.9)% | 11.0% | 11.4% | 15.0% | | 8.9% | 12.5% | 8.7% |
Average tangible shareholders' equity (£bn) | 50.5 | | 48.9 | 46.5 | 46.7 | 47.6 | | 46.7 | 48.6 | 49.0 |
Cost: income ratio | 60% | | 88% | 63% | 63% | 57% | | 69% | 60% | 75% |
Loan loss rate (bps) | 51 | | 54 | 42 | 37 | 52 | | 49 | 36 | 20 |
Basic earnings per ordinary share | 10.3p | | (0.7)p | 8.3p | 8.6p | 11.3p | | 6.5p | 9.4p | 6.4p |
Basic weighted average number of shares (m) | 14,983 | | 15,092 | 15,405 | 15,523 | 15,770 | | 15,828 | 16,148 | 16,684 |
Period end number of shares (m) | 15,091 | | 15,155 | 15,239 | 15,556 | 15,701 | | 15,871 | 15,888 | 16,531 |
Period end tangible shareholders' equity (£bn) | 50.6 | | 50.2 | 48.2 | 45.3 | 47.3 | | 46.8 | 45.4 | 49.0 |
| | | | | | | | | | |
Balance sheet and capital management1 | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 332.1 | | 333.3 | 339.6 | 337.4 | 343.6 | | 343.3 | 346.3 | 337.2 |
Loans and advances to banks at amortised cost | 8.5 | | 9.5 | 11.5 | 10.9 | 11.0 | | 10.0 | 12.5 | 12.5 |
Debt securities at amortised cost | 57.4 | | 56.7 | 54.3 | 53.1 | 48.9 | | 45.5 | 54.8 | 46.1 |
Loans and advances at amortised cost | 397.9 | | 399.5 | 405.4 | 401.4 | 403.5 | | 398.8 | 413.7 | 395.8 |
Loans and advances at amortised cost impairment coverage ratio | 1.4% | | 1.4% | 1.4% | 1.4% | 1.4% | | 1.4% | 1.4% | 1.4% |
Total assets | 1,577.1 | | 1,477.5 | 1,591.7 | 1,549.7 | 1,539.1 | | 1,513.7 | 1,726.9 | 1,589.2 |
Deposits at amortised cost | 552.3 | | 538.8 | 561.3 | 554.7 | 555.7 | | 545.8 | 574.4 | 568.7 |
Tangible net asset value per share | 335p | | 331p | 316p | 291p | 301p | | 295p | 286p | 297p |
Common equity tier 1 ratio | 13.5% | | 13.8% | 14.0% | 13.8% | 13.6% | | 13.9% | 13.8% | 13.6% |
Common equity tier 1 capital | 47.1 | | 47.3 | 48.0 | 46.6 | 46.0 | | 46.9 | 48.6 | 46.7 |
Risk weighted assets | 349.6 | | 342.7 | 341.9 | 336.9 | 338.4 | | 336.5 | 350.8 | 344.5 |
UK leverage ratio | 4.9% | | 5.2% | 5.0% | 5.1% | 5.1% | | 5.3% | 5.0% | 5.1% |
UK leverage exposure | 1,226.5 | | 1,168.3 | 1,202.4 | 1,183.7 | 1,168.9 | | 1,130.0 | 1,232.1 | 1,151.2 |
| | | | | | | | | | |
Funding and liquidity | | | | | | | | | | |
Group liquidity pool (£bn) | 323.5 | | 298.1 | 335.0 | 330.7 | 333.0 | | 318.0 | 325.8 | 342.5 |
Liquidity coverage ratio2 | 163% | | 161% | 159% | 157% | 157% | | 156% | 156% | 157% |
Net stable funding ratio3 | 136% | | 138% | 138% | 139% | 139% | | 137% | | |
Loan: deposit ratio | 72% | | 74% | 72% | 72% | 73% | | 73% | 72% | 70% |
1 | Refer to pages 31 to 35 for further information on how capital, RWAs and leverage are calculated. |
2 | The Liquidity Coverage Ratio is based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency. |
3 | Represents average of the last four spot quarter end positions. |
Quarterly Results by Business
Barclays UK | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 1,549 | | 1,575 | 1,578 | 1,660 | 1,618 | | 1,600 | 1,561 | 1,393 |
Net fee, commission and other income | 277 | | 217 | 295 | 301 | 343 | | 370 | 355 | 331 |
Total income | 1,826 | | 1,792 | 1,873 | 1,961 | 1,961 | | 1,970 | 1,916 | 1,724 |
Operating costs | (1,007) | | (1,153) | (1,058) | (1,090) | (1,092) | | (1,108) | (1,069) | (1,085) |
UK regulatory levies | (54) | | (30) | - | - | - | | (26) | - | - |
Litigation and conduct | (2) | | (4) | 9 | 5 | (2) | | (13) | (3) | (16) |
Total operating expenses | (1,063) | | (1,187) | (1,049) | (1,085) | (1,094) | | (1,147) | (1,072) | (1,101) |
Other net income/(expenses) | - | | - | - | - | - | | 1 | (1) | - |
Profit before impairment | 763 | | 605 | 824 | 876 | 867 | | 824 | 843 | 623 |
Credit impairment charges | (58) | | (37) | (59) | (95) | (113) | | (157) | (81) | - |
Profit before tax | 705 | | 568 | 765 | 781 | 754 | | 667 | 762 | 623 |
Attributable profit | 479 | | 382 | 531 | 534 | 515 | | 474 | 549 | 458 |
| | | | | | | | | | |
Balance sheet information | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 200.8 | | 202.8 | 204.9 | 206.8 | 208.2 | | 205.1 | 205.1 | 205.9 |
Customer deposits at amortised cost | 237.2 | | 241.1 | 243.2 | 249.8 | 254.3 | | 258.0 | 261.0 | 261.5 |
Loan: deposit ratio | 92% | | 92% | 92% | 90% | 90% | | 87% | 86% | 85% |
Risk weighted assets | 76.5 | | 73.5 | 73.2 | 73.0 | 74.6 | | 73.1 | 73.2 | 72.2 |
Period end allocated tangible equity | 10.7 | | 10.2 | 10.1 | 10.1 | 10.3 | | 10.1 | 10.1 | 9.9 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Return on average allocated tangible equity | 18.5% | | 14.9% | 21.0% | 20.9% | 20.0% | | 18.7% | 22.1% | 18.4% |
Average allocated tangible equity (£bn) | 10.4 | | 10.2 | 10.1 | 10.2 | 10.3 | | 10.2 | 9.9 | 10.0 |
Cost: income ratio | 58% | | 66% | 56% | 55% | 56% | | 58% | 56% | 64% |
Loan loss rate (bps) | 11 | | 7 | 10 | 17 | 20 | | 27 | 14 | - |
Net interest margin | 3.09% | | 3.07% | 3.04% | 3.22% | 3.18% | | 3.10% | 3.01% | 2.71% |
Analysis of Barclays UK | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Analysis of total income | £m | | £m | £m | £m | £m | | £m | £m | £m |
Personal Banking | 1,128 | | 1,067 | 1,165 | 1,244 | 1,253 | | 1,229 | 1,212 | 1,077 |
Barclaycard Consumer UK | 229 | | 242 | 238 | 237 | 247 | | 269 | 283 | 265 |
Business Banking | 469 | | 483 | 470 | 480 | 461 | | 472 | 421 | 382 |
Total income | 1,826 | | 1,792 | 1,873 | 1,961 | 1,961 | | 1,970 | 1,916 | 1,724 |
| | | | | | | | | | |
Analysis of credit impairment charges | | | | | | | | | | |
Personal Banking | (14) | | 35 | (85) | (92) | (28) | | (120) | (26) | (42) |
Barclaycard Consumer UK | (38) | | (73) | 29 | (35) | (83) | | (12) | 2 | 84 |
Business Banking | (6) | | 1 | (3) | 32 | (2) | | (25) | (57) | (42) |
Total credit impairment charges | (58) | | (37) | (59) | (95) | (113) | | (157) | (81) | - |
| | | | | | | | | | |
Analysis of loans and advances to customers at amortised cost | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Personal Banking | 169.0 | | 170.1 | 172.3 | 173.3 | 173.6 | | 169.7 | 168.7 | 167.1 |
Barclaycard Consumer UK | 9.8 | | 9.7 | 9.6 | 9.3 | 9.0 | | 9.2 | 9.0 | 8.8 |
Business Banking | 22.0 | | 23.0 | 23.0 | 24.2 | 25.6 | | 26.2 | 27.4 | 30.0 |
Total loans and advances to customers at amortised cost | 200.8 | | 202.8 | 204.9 | 206.8 | 208.2 | | 205.1 | 205.1 | 205.9 |
| | | | | | | | | | |
Analysis of customer deposits at amortised cost | | | | | | | | | | |
Personal Banking | 183.4 | | 185.4 | 186.1 | 191.1 | 194.3 | | 195.6 | 197.3 | 197.0 |
Barclaycard Consumer UK | - | | - | - | - | - | | - | - | - |
Business Banking | 53.8 | | 55.7 | 57.1 | 58.7 | 60.0 | | 62.4 | 63.7 | 64.5 |
Total customer deposits at amortised cost | 237.2 | | 241.1 | 243.2 | 249.8 | 254.3 | | 258.0 | 261.0 | 261.5 |
Barclays UK Corporate Bank | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 277 | | 247 | 304 | 299 | 310 | | 324 | 309 | 266 |
Net fee, commission, trading and other income | 157 | | 148 | 136 | 173 | 153 | | 153 | 124 | 139 |
Total income | 434 | | 395 | 440 | 472 | 463 | | 477 | 433 | 405 |
Operating costs | (221) | | (258) | (224) | (213) | (210) | | (213) | (209) | (198) |
UK regulatory levies | (30) | | (8) | - | - | - | | (7) | - | - |
Litigation and conduct | - | | (1) | 2 | - | - | | - | - | - |
Total operating expenses | (251) | | (267) | (222) | (213) | (210) | | (220) | (209) | (198) |
Other net (expenses)/income | - | | (5) | - | 1 | 1 | | 1 | - | - |
Profit before impairment | 183 | | 123 | 218 | 260 | 254 | | 258 | 224 | 207 |
Credit impairment (charges)/releases | (15) | | (18) | (15) | 84 | (24) | | (52) | 32 | 29 |
Profit before tax | 168 | | 105 | 203 | 344 | 230 | | 206 | 256 | 236 |
Attributable profit | 113 | | 59 | 129 | 239 | 157 | | 131 | 172 | 166 |
| | | | | | | | | | |
Balance sheet information | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 25.7 | | 26.4 | 26.9 | 26.9 | 27.2 | | 26.9 | 27.2 | 27.1 |
Deposits at amortised cost | 81.7 | | 84.9 | 82.7 | 82.6 | 83.6 | | 84.4 | 86.1 | 87.1 |
Risk weighted assets | 21.4 | | 20.9 | 19.5 | 20.6 | 20.2 | | 21.1 | 20.4 | 21.0 |
Period end allocated tangible equity | 3.0 | | 3.0 | 2.8 | 2.9 | 2.9 | | 3.0 | 2.9 | 3.0 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Return on average allocated tangible equity | 15.2% | | 8.4% | 18.3% | 32.9% | 21.7% | | 17.8% | 23.4% | 22.3% |
Average allocated tangible equity (£bn) | 3.0 | | 2.8 | 2.8 | 2.9 | 2.9 | | 2.9 | 2.9 | 3.0 |
Cost: income ratio | 58% | | 68% | 50% | 45% | 45% | | 46% | 48% | 49% |
Loan loss rate (bps) | 23 | | 27 | 21 | (123) | 36 | | 74 | (45) | (42) |
| | | | | | | | | | |
Analysis of total income | £m | | £m | £m | £m | £m | | £m | £m | £m |
Corporate lending | 72 | | 64 | 69 | 68 | 61 | | 66 | 56 | 63 |
Transaction banking | 362 | | 331 | 371 | 404 | 402 | | 411 | 377 | 342 |
Total income | 434 | | 395 | 440 | 472 | 463 | | 477 | 433 | 405 |
Barclays Private Bank and Wealth Management | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 175 | | 182 | 219 | 186 | 181 | | 205 | 197 | 167 |
Net fee, commission and other income | 137 | | 131 | 118 | 113 | 78 | | 81 | 72 | 78 |
Total income | 312 | | 313 | 337 | 299 | 259 | | 286 | 269 | 245 |
Operating costs | (214) | | (255) | (214) | (182) | (144) | | (153) | (135) | (138) |
UK regulatory levies | (3) | | (4) | - | - | - | | (4) | - | - |
Litigation and conduct | - | | 2 | - | - | - | | - | - | - |
Total operating expenses | (217) | | (257) | (214) | (182) | (144) | | (157) | (135) | (138) |
Other net income | - | | - | - | - | - | | - | - | - |
Profit before impairment | 95 | | 56 | 123 | 117 | 115 | | 129 | 134 | 107 |
Credit impairment releases/(charges) | - | | 4 | 2 | (7) | (3) | | (10) | - | 3 |
Profit before tax | 95 | | 60 | 125 | 110 | 112 | | 119 | 134 | 110 |
Attributable profit | 74 | | 47 | 102 | 91 | 90 | | 92 | 108 | 85 |
| | | | | | | | | | |
Balance sheet information | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 13.7 | | 13.6 | 13.4 | 13.8 | 14.3 | | 14.4 | 14.6 | 14.3 |
Deposits at amortised cost | 61.9 | | 60.3 | 59.7 | 59.2 | 60.8 | | 62.3 | 62.9 | 59.1 |
Risk weighted assets | 7.2 | | 7.2 | 7.2 | 7.2 | 7.5 | | 7.8 | 7.9 | 7.4 |
Period end allocated tangible equity | 1.0 | | 1.0 | 1.0 | 1.0 | 1.0 | | 1.1 | 1.1 | 1.0 |
Client assets and liabilities | 189.1 | | 182.9 | 178.7 | 174.1 | 141.5 | | 139.4 | 138.4 | 131.2 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Return on average allocated tangible equity | 28.7% | | 19.1% | 41.2% | 35.9% | 34.5% | | 34.9% | 41.7% | 33.5% |
Average allocated tangible equity (£bn) | 1.0 | | 1.0 | 1.0 | 1.0 | 1.0 | | 1.1 | 1.0 | 1.0 |
Cost: income ratio | 70% | | 82% | 63% | 61% | 56% | | 55% | 50% | 56% |
Loan loss rate (bps) | - | | (10) | (7) | 20 | 7 | | 26 | 1 | (7) |
Barclays Investment Bank | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 197 | | 282 | 397 | 555 | 159 | | 228 | 304 | 147 |
Net trading income | 1,982 | | 757 | 1,497 | 1,351 | 2,435 | | 1,197 | 1,346 | 2,734 |
Net fee, commission and other income | 1,149 | | 998 | 792 | 837 | 975 | | 731 | 794 | 801 |
Total income | 3,328 | | 2,037 | 2,686 | 2,743 | 3,569 | | 2,156 | 2,444 | 3,682 |
Operating costs | (1,957) | | (1,934) | (1,840) | (1,813) | (2,032) | | (1,619) | (1,869) | (1,704) |
UK regulatory levies | (33) | | (123) | - | - | - | | (119) | - | - |
Litigation and conduct | (9) | | (2) | 6 | (1) | 2 | | (55) | 498 | (1,314) |
Total operating expenses | (1,999) | | (2,059) | (1,834) | (1,814) | (2,030) | | (1,793) | (1,371) | (3,018) |
Other net (expenses)/income | - | | (1) | 2 | - | (1) | | 1 | 1 | (1) |
Profit/(loss) before impairment | 1,329 | | (23) | 854 | 929 | 1,538 | | 364 | 1,074 | 663 |
Credit impairment releases/(charges) | 10 | | (23) | 23 | (77) | (25) | | (22) | (93) | (106) |
Profit/(loss) before tax | 1,339 | | (46) | 877 | 852 | 1,513 | | 342 | 981 | 557 |
Attributable profit/(loss) | 899 | | (149) | 580 | 562 | 1,048 | | 313 | 847 | 418 |
| | | | | | | | | | |
Balance sheet information | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 64.6 | | 62.7 | 62.3 | 59.1 | 63.1 | | 64.6 | 67.5 | 60.5 |
Loans and advances to banks at amortised cost | 7.6 | | 7.3 | 9.5 | 9.0 | 9.1 | | 8.1 | 10.1 | 10.0 |
Debt securities at amortised cost | 40.4 | | 38.9 | 36.3 | 35.1 | 30.7 | | 27.2 | 36.2 | 29.3 |
Loans and advances at amortised cost | 112.6 | | 108.9 | 108.1 | 103.2 | 102.9 | | 99.9 | 113.8 | 99.8 |
Trading portfolio assets | 195.3 | | 174.5 | 155.3 | 165.0 | 137.6 | | 133.7 | 126.1 | 126.7 |
Derivative financial instrument assets | 248.9 | | 255.1 | 280.4 | 264.8 | 256.5 | | 301.6 | 415.5 | 343.4 |
Financial assets at fair value through the income statement | 225.1 | | 202.5 | 237.2 | 231.1 | 243.8 | | 209.4 | 243.6 | 208.0 |
Cash collateral and settlement balances | 129.8 | | 102.3 | 134.6 | 122.1 | 124.3 | | 106.2 | 162.2 | 127.1 |
Deposits at amortised cost | 151.1 | | 132.7 | 154.2 | 142.9 | 137.3 | | 121.5 | 143.4 | 142.5 |
Derivative financial instrument liabilities | 241.5 | | 249.7 | 268.3 | 254.5 | 246.7 | | 288.9 | 394.2 | 321.2 |
Risk weighted assets | 200.4 | | 197.3 | 201.1 | 197.2 | 198.0 | | 195.9 | 211.4 | 207.7 |
Period end allocated tangible equity | 29.6 | | 29.0 | 29.0 | 28.7 | 28.9 | | 28.6 | 30.8 | 30.3 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Return on average allocated tangible equity | 12.0% | | (2.1)% | 8.0% | 7.7% | 14.4% | | 4.0% | 10.9% | 5.6% |
Average allocated tangible equity (£bn) | 30.0 | | 28.9 | 28.8 | 29.0 | 29.1 | | 30.9 | 31.2 | 29.9 |
Cost: income ratio | 60% | | 101% | 68% | 66% | 57% | | 83% | 56% | 82% |
Loan loss rate (bps) | (4) | | 8 | (8) | 30 | 10 | | 9 | 32 | 42 |
| | | | | | | | | | |
Analysis of total income | £m | | £m | £m | £m | £m | | £m | £m | £m |
FICC | 1,404 | | 724 | 1,147 | 1,186 | 1,788 | | 976 | 1,546 | 1,529 |
Equities | 883 | | 431 | 675 | 563 | 704 | | 440 | 246 | 1,411 |
Global Markets | 2,287 | | 1,155 | 1,822 | 1,749 | 2,492 | | 1,416 | 1,792 | 2,940 |
Advisory | 148 | | 171 | 80 | 130 | 212 | | 197 | 150 | 236 |
Equity capital markets | 68 | | 38 | 62 | 69 | 50 | | 40 | 42 | 37 |
Debt capital markets | 401 | | 301 | 233 | 273 | 341 | | 243 | 341 | 281 |
Fees | 617 | | 510 | 375 | 472 | 603 | | 480 | 533 | 554 |
Corporate lending | 42 | | (23) | 103 | 100 | 33 | | (194) | (237) | (110) |
Transaction banking | 382 | | 395 | 386 | 422 | 441 | | 454 | 356 | 298 |
International Corporate Banking | 424 | | 372 | 489 | 522 | 474 | | 260 | 119 | 188 |
Investment Banking | 1,041 | | 882 | 864 | 994 | 1,077 | | 740 | 652 | 742 |
Total income | 3,328 | | 2,037 | 2,686 | 2,743 | 3,569 | | 2,156 | 2,444 | 3,682 |
Barclays US Consumer Bank | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 688 | | 686 | 662 | 622 | 634 | | 639 | 616 | 389 |
Net fee, commission, trading and other income | 171 | | 180 | 147 | 145 | 192 | | 149 | 137 | 240 |
Total income | 859 | | 866 | 809 | 767 | 826 | | 788 | 753 | 629 |
Operating costs | (387) | | (418) | (404) | (401) | (427) | | (425) | (429) | (365) |
UK regulatory levies | - | | - | - | - | - | | - | - | - |
Litigation and conduct | (3) | | (2) | - | (4) | - | | (3) | - | - |
Total operating expenses | (390) | | (420) | (404) | (405) | (427) | | (428) | (429) | (365) |
Other net income | - | | - | - | - | - | | - | - | - |
Profit before impairment | 469 | | 446 | 405 | 362 | 399 | | 360 | 324 | 264 |
Credit impairment charges | (410) | | (449) | (404) | (264) | (321) | | (224) | (172) | (108) |
Profit/(loss) before tax | 59 | | (3) | 1 | 98 | 78 | | 136 | 152 | 156 |
Attributable profit/(loss) | 44 | | (3) | 3 | 72 | 59 | | 101 | 107 | 118 |
| | | | | | | | | | |
Balance sheet information | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Loans and advances to customers at amortised cost | 23.6 | | 24.2 | 24.3 | 22.9 | 22.5 | | 23.6 | 23.6 | 21.0 |
Deposits at amortised cost | 20.3 | | 19.7 | 19.3 | 17.9 | 18.1 | | 18.3 | 19.8 | 17.8 |
Risk weighted assets | 23.9 | | 24.8 | 24.1 | 22.5 | 22.5 | | 23.9 | 23.6 | 21.7 |
Period end allocated tangible equity | 3.3 | | 3.4 | 3.3 | 3.1 | 3.1 | | 3.3 | 3.2 | 3.0 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Return on average allocated tangible equity | 5.3% | | (0.3)% | 0.4% | 9.3% | 7.5% | | 12.6% | 13.9% | 18.2% |
Average allocated tangible equity (£bn) | 3.3 | | 3.3 | 3.1 | 3.1 | 3.1 | | 3.2 | 3.1 | 2.6 |
Cost: income ratio | 46% | | 48% | 50% | 53% | 52% | | 54% | 57% | 58% |
Loan loss rate (bps) | 610 | | 636 | 582 | 411 | 515 | | 337 | 257 | 179 |
Net interest margin | 11.12% | | 10.88% | 10.88% | 10.66% | 10.97% | | 10.64% | 10.81% | 8.37% |
Head Office | | | | | | | | | | |
| Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
Income statement information | £m | | £m | £m | £m | £m | | £m | £m | £m |
Net interest income | 186 | | 168 | 87 | (52) | 150 | | (253) | 80 | 61 |
Net fee, commission and other income | 8 | | 27 | 26 | 96 | 8 | | 378 | 55 | (38) |
Total income | 194 | | 195 | 113 | 43 | 159 | | 124 | 136 | 23 |
Operating costs | (211) | | (717) | (209) | (220) | (206) | | (230) | (228) | (192) |
UK regulatory levies | - | | (14) | - | - | - | | (20) | - | - |
Litigation and conduct | (44) | | 1 | (16) | (32) | (1) | | (9) | (155) | (4) |
Total operating expenses | (255) | | (730) | (226) | (253) | (205) | | (258) | (384) | (196) |
Other net income/(expenses) | 12 | | (10) | 7 | 2 | (5) | | 7 | (1) | 8 |
Loss before impairment | (49) | | (545) | (106) | (208) | (51) | | (127) | (249) | (165) |
Credit impairment (charges)/releases | (40) | | (29) | 20 | (13) | (38) | | (33) | (67) | (18) |
Loss before tax | (89) | | (574) | (86) | (221) | (89) | | (160) | (316) | (183) |
Attributable loss | (59) | | (447) | (71) | (170) | (86) | | (75) | (271) | (174) |
| | | | | | | | | | |
Balance sheet information | £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Risk weighted assets | 20.2 | | 19.0 | 16.8 | 16.4 | 15.6 | | 14.7 | 14.3 | 14.5 |
Period end allocated tangible equity | 3.0 | | 3.6 | 2.0 | (0.5) | 1.1 | | 0.7 | (2.6) | 1.9 |
| | | | | | | | | | |
Performance measures | | | | | | | | | | |
Average allocated tangible equity (£bn) | 2.8 | | 2.7 | 0.7 | 0.5 | 1.2 | | (1.6) | 0.5 | 2.5 |
Performance Management
Margins and balances | ||||||
| Three months ended 31.03.24 | Three months ended 31.03.23 | ||||
| Net interest income | Average customer assets | Net interest margin | Net interest income | Average customer assets | Net interest margin |
| £m | £m | % | £m | £m | % |
Barclays UK | 1,549 | 201,669 | 3.09 | 1,618 | 206,241 | 3.18 |
Barclays UK Corporate Bank | 277 | 22,257 | 5.00 | 310 | 23,151 | 5.42 |
Barclays Private Bank and Wealth Management | 175 | 13,593 | 5.17 | 181 | 14,445 | 5.08 |
Barclays US Consumer Bank | 688 | 24,880 | 11.12 | 634 | 23,451 | 10.97 |
Group excluding IB and Head Office | 2,689 | 262,399 | 4.12 | 2,743 | 267,288 | 4.16 |
Barclays Investment Bank | 197 | | | 159 | | |
Head Office | 186 | | | 150 | | |
Total Barclays Group net interest income | 3,072 | | | 3,053 | | |
The Group excluding IB and Head Office NIM has decreased 4bps from 4.16% in Q123 to 4.12% in Q124, driven by adverse product dynamics in Barclays UK deposits and mortgages, partially offset by continued structural hedge income momentum across the Group.
The Group's combined product and equity structural hedge notional amount at 31 March 2024 was £243bn (31 December 2023: £246bn), with an average duration of close to 2.5 years. Gross structural hedge contributions of £1,066m (Q123: £773m) and net structural hedge contributions of £(2,097)m (Q123: £(1,709)m) are included in Group net interest income. Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.
Quarterly analysis | | | |||
| Q124 | Q423 | Q323 | Q223 | Q123 |
Net interest income | £m | £m | £m | £m | £m |
Barclays UK | 1,549 | 1,575 | 1,578 | 1,660 | 1,618 |
Barclays UK Corporate Bank | 277 | 247 | 304 | 299 | 310 |
Barclays Private Bank and Wealth Management | 175 | 182 | 219 | 186 | 181 |
Barclays US Consumer Bank | 688 | 686 | 662 | 622 | 634 |
Group excluding IB and Head Office | 2,689 | 2,690 | 2,763 | 2,767 | 2,743 |
| | | | | |
Average customer assets | £m | £m | £m | £m | £m |
Barclays UK | 201,669 | 203,646 | 205,693 | 207,073 | 206,241 |
Barclays UK Corporate Bank | 22,257 | 23,354 | 23,225 | 23,094 | 23,151 |
Barclays Private Bank and Wealth Management | 13,593 | 13,525 | 13,594 | 14,173 | 14,445 |
Barclays US Consumer Bank | 24,880 | 25,012 | 24,128 | 23,404 | 23,451 |
Group excluding IB and Head Office | 262,399 | 265,537 | 266,640 | 267,744 | 267,288 |
| | | | | |
Net interest margin | % | % | % | % | % |
Barclays UK | 3.09 | 3.07 | 3.04 | 3.22 | 3.18 |
Barclays UK Corporate Bank | 5.00 | 4.19 | 5.19 | 5.19 | 5.42 |
Barclays Private Bank and Wealth Management | 5.17 | 5.33 | 6.40 | 5.26 | 5.08 |
Barclays US Consumer Bank | 11.12 | 10.88 | 10.88 | 10.66 | 10.97 |
Group excluding IB and Head Office | 4.12 | 4.02 | 4.11 | 4.15 | 4.16 |
Credit Risk
Loans and advances at amortised cost by geography
Total loans and advances at amortised cost in the credit risk performance section includes loans and advances at amortised cost to banks and loans and advances at amortised cost to customers.
The table below presents a product and geographical breakdown by stages of loans and advances at amortised cost. Also included are stage allocation of debt securities and off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio as at 31 March 2024.
Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to gross loans and advances to the extent allowance does not exceed the drawn exposure and any excess is reported on the liabilities side of the balance sheet as a provision. For corporate portfolios, impairment allowance on undrawn exposure is reported on the liability side of the balance sheet as a provision.
| Gross exposure | | Impairment allowance | ||||||
| Stage 1 | Stage 2 | Stage 3 | Total | | Stage 1 | Stage 2 | Stage 3 | Total |
As at 31.03.24 | £m | £m | £m | £m | | £m | £m | £m | £m |
Retail mortgages | 144,156 | 20,168 | 1,702 | 166,026 | | 41 | 79 | 94 | 214 |
Retail credit cards | 8,214 | 2,083 | 200 | 10,497 | | 115 | 475 | 97 | 687 |
Retail other | 6,959 | 1,229 | 196 | 8,384 | | 56 | 116 | 144 | 316 |
Corporate loans1 | 52,204 | 8,264 | 1,618 | 62,086 | | 179 | 214 | 336 | 729 |
Total UK | 211,533 | 31,744 | 3,716 | 246,993 | | 391 | 884 | 671 | 1,946 |
Retail mortgages | 4,086 | 366 | 652 | 5,104 | | 7 | 31 | 314 | 352 |
Retail credit cards | 21,131 | 3,385 | 1,708 | 26,224 | | 395 | 1,109 | 1,374 | 2,878 |
Retail other | 1,560 | 79 | 202 | 1,841 | | 3 | 1 | 27 | 31 |
Corporate loans | 61,022 | 4,128 | 957 | 66,107 | | 93 | 175 | 271 | 539 |
Total Rest of the World | 87,799 | 7,958 | 3,519 | 99,276 | | 498 | 1,316 | 1,986 | 3,800 |
Total loans and advances at amortised cost | 299,332 | 39,702 | 7,235 | 346,269 | | 889 | 2,200 | 2,657 | 5,746 |
Debt securities at amortised cost | 53,478 | 3,941 | - | 57,419 | | 10 | 10 | - | 20 |
Total loans and advances at amortised cost including debt securities | 352,810 | 43,643 | 7,235 | 403,688 | | 899 | 2,210 | 2,657 | 5,766 |
Off-balance sheet loan commitments and financial guarantee contracts2 | 386,834 | 21,184 | 1,025 | 409,043 | | 196 | 289 | 23 | 508 |
Total3,4 | 739,644 | 64,827 | 8,260 | 812,731 | | 1,095 | 2,499 | 2,680 | 6,274 |
| | | | | | | | | |
| Net exposure | | Coverage ratio | ||||||
| Stage 1 | Stage 2 | Stage 3 | Total | | Stage 1 | Stage 2 | Stage 3 | Total |
As at 31.03.24 | £m | £m | £m | £m | | % | % | % | % |
Retail mortgages | 144,115 | 20,089 | 1,608 | 165,812 | | - | 0.4 | 5.5 | 0.1 |
Retail credit cards | 8,099 | 1,608 | 103 | 9,810 | | 1.4 | 22.8 | 48.5 | 6.5 |
Retail other | 6,903 | 1,113 | 52 | 8,068 | | 0.8 | 9.4 | 73.5 | 3.8 |
Corporate loans1 | 52,025 | 8,050 | 1,282 | 61,357 | | 0.3 | 2.6 | 20.8 | 1.2 |
Total UK | 211,142 | 30,860 | 3,045 | 245,047 | | 0.2 | 2.8 | 18.1 | 0.8 |
Retail mortgages | 4,079 | 335 | 338 | 4,752 | | 0.2 | 8.5 | 48.2 | 6.9 |
Retail credit cards | 20,736 | 2,276 | 334 | 23,346 | | 1.9 | 32.8 | 80.4 | 11.0 |
Retail other | 1,557 | 78 | 175 | 1,810 | | 0.2 | 1.3 | 13.4 | 1.7 |
Corporate loans | 60,929 | 3,953 | 686 | 65,568 | | 0.2 | 4.2 | 28.3 | 0.8 |
Total Rest of the World | 87,301 | 6,642 | 1,533 | 95,476 | | 0.6 | 16.5 | 56.4 | 3.8 |
Total loans and advances at amortised cost | 298,443 | 37,502 | 4,578 | 340,523 | | 0.3 | 5.5 | 36.7 | 1.7 |
Debt securities at amortised cost | 53,468 | 3,931 | - | 57,399 | | - | 0.3 | - | - |
Total loans and advances at amortised cost including debt securities | 351,911 | 41,433 | 4,578 | 397,922 | | 0.3 | 5.1 | 36.7 | 1.4 |
Off-balance sheet loan commitments and financial guarantee contracts2 | 386,638 | 20,895 | 1,002 | 408,535 | | 0.1 | 1.4 | 2.2 | 0.1 |
Total3,4 | 738,549 | 62,328 | 5,580 | 806,457 | | 0.1 | 3.9 | 32.4 | 0.8 |
1 | Includes Business Banking, which has a gross exposure of £14.6bn and an impairment allowance of £411m. This comprises £91m impairment allowance on £9.7bn Stage 1 exposure, £76m on £3.7bn Stage 2 exposure and £244m on £1.3bn Stage 3 exposure. Excluding this, total coverage for corporate loans in UK is 0.7%. |
2 | Excludes loan commitments and financial guarantees of £15.4bn carried at fair value and includes exposures relating to financial assets classified as assets held for sale. |
3 | Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £220.1bn and impairment allowance of £150m. This comprises £17m impairment allowance on £219.5bn Stage 1 exposure, £2m on £0.4bn Stage 2 exposure and £131m on £141m Stage 3 exposure. |
4 | The annualised loan loss rate is 51bps after applying the total impairment charge of £513m. |
| Gross exposure | | Impairment allowance | ||||||
| Stage 1 | Stage 2 | Stage 3 | Total | | Stage 1 | Stage 2 | Stage 3 | Total |
As at 31.12.23 | £m | £m | £m | £m | | £m | £m | £m | £m |
Retail mortgages | 146,001 | 19,123 | 1,812 | 166,936 | | 43 | 77 | 112 | 232 |
Retail credit cards | 8,094 | 2,128 | 198 | 10,420 | | 111 | 492 | 107 | 710 |
Retail other | 6,832 | 1,252 | 264 | 8,348 | | 56 | 117 | 144 | 317 |
Corporate loans1 | 54,257 | 8,673 | 1,692 | 64,622 | | 191 | 214 | 346 | 751 |
Total UK | 215,184 | 31,176 | 3,966 | 250,326 | | 401 | 900 | 709 | 2,010 |
Retail mortgages | 4,201 | 346 | 612 | 5,159 | | 7 | 28 | 316 | 351 |
Retail credit cards | 22,315 | 3,450 | 1,522 | 27,287 | | 412 | 1,138 | 1,226 | 2,776 |
Retail other | 1,637 | 91 | 229 | 1,957 | | 3 | 1 | 32 | 36 |
Corporate loans | 58,248 | 4,629 | 862 | 63,739 | | 96 | 200 | 252 | 548 |
Total Rest of the World | 86,401 | 8,516 | 3,225 | 98,142 | | 518 | 1,367 | 1,826 | 3,711 |
Total loans and advances at amortised cost | 301,585 | 39,692 | 7,191 | 348,468 | | 919 | 2,267 | 2,535 | 5,721 |
Debt securities | 52,869 | 3,907 | - | 56,776 | | 11 | 16 | - | 27 |
Total loans and advances at amortised cost including debt securities | 354,454 | 43,599 | 7,191 | 405,244 | | 930 | 2,283 | 2,535 | 5,748 |
Off-balance sheet loan commitments and financial guarantee contracts2 | 374,063 | 24,208 | 1,037 | 399,308 | | 173 | 287 | 44 | 504 |
Total3,4 | 728,517 | 67,807 | 8,228 | 804,552 | | 1,103 | 2,570 | 2,579 | 6,252 |
| | | | ||||||
| Net exposure | | Coverage ratio | ||||||
| Stage 1 | Stage 2 | Stage 3 | Total | | Stage 1 | Stage 2 | Stage 3 | Total |
As at 31.12.23 | £m | £m | £m | £m | | % | % | % | % |
Retail mortgages | 145,958 | 19,046 | 1,700 | 166,704 | | - | 0.4 | 6.2 | 0.1 |
Retail credit cards | 7,983 | 1,636 | 91 | 9,710 | | 1.4 | 23.1 | 54.0 | 6.8 |
Retail other | 6,776 | 1,135 | 120 | 8,031 | | 0.8 | 9.3 | 54.5 | 3.8 |
Corporate loans1 | 54,066 | 8,459 | 1,346 | 63,871 | | 0.4 | 2.5 | 20.4 | 1.2 |
Total UK | 214,783 | 30,276 | 3,257 | 248,316 | | 0.2 | 2.9 | 17.9 | 0.8 |
Retail mortgages | 4,194 | 318 | 296 | 4,808 | | 0.2 | 8.1 | 51.6 | 6.8 |
Retail credit cards | 21,903 | 2,312 | 296 | 24,511 | | 1.8 | 33.0 | 80.6 | 10.2 |
Retail other | 1,634 | 90 | 197 | 1,921 | | 0.2 | 1.1 | 14.0 | 1.8 |
Corporate loans | 58,152 | 4,429 | 610 | 63,191 | | 0.2 | 4.3 | 29.2 | 0.9 |
Total Rest of the World | 85,883 | 7,149 | 1,399 | 94,431 | | 0.6 | 16.1 | 56.6 | 3.8 |
Total loans and advances at amortised cost | 300,666 | 37,425 | 4,656 | 342,747 | | 0.3 | 5.7 | 35.3 | 1.6 |
Debt securities | 52,858 | 3,891 | - | 56,749 | | - | 0.4 | - | - |
Total loans and advances at amortised cost including debt securities | 353,524 | 41,316 | 4,656 | 399,496 | | 0.3 | 5.2 | 35.3 | 1.4 |
Off-balance sheet loan commitments and financial guarantee contracts2 | 373,890 | 23,921 | 993 | 398,804 | | - | 1.2 | 4.2 | 0.1 |
Total3,4 | 727,414 | 65,237 | 5,649 | 798,300 | | 0.2 | 3.8 | 31.3 | 0.8 |
1 | Includes Business Banking, which has a gross exposure of £15.2bn and an impairment allowance of £431m. This comprises £99m impairment allowance on £9.8bn Stage 1 exposure, £81m on £4.1bn Stage 2 exposure and £251m on £1.3bn Stage 3 exposure. Excluding this, total coverage for corporate loans in UK is 0.6%. |
2 | Excludes loan commitments and financial guarantees of £16.5bn carried at fair value and includes exposures relating to financial assets classified as assets held for sale. |
3 | Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £183.6bn and impairment allowance of £151m. This comprises £16m impairment allowance on £182.8bn Stage 1 exposure, £2m on £0.6bn Stage 2 exposure and £133m on £140m Stage 3 exposure. |
4 | The annualised loan loss rate is 46bps after applying the total impairment charge of £1,881m. |
Assets held for sale
During 2023, gross loans and advances and related impairment allowances for the German consumer finance business portfolio were reclassified from loans and advances to customers to assets held for sale in the balance sheet.
Loans and advances to customers classified as assets held for sale | |||||||||||||||
| Stage 1 | | Stage 2 | | Stage 3 | | Total | ||||||||
| Gross | ECL | Coverage | | Gross | ECL | Coverage | | Gross | ECL | Coverage | | Gross | ECL | Coverage |
As at 31.03.24 | £m | £m | % | | £m | £m | % | | £m | £m | % | | £m | £m | % |
Retail credit cards | 1,555 | 14 | 0.9 | | 504 | 45 | 8.9 | | 94 | 70 | 74.5 | | 2,153 | 129 | 6.0 |
Retail other | 1,432 | 20 | 1.4 | | 285 | 36 | 12.6 | | 82 | 58 | 70.7 | | 1,799 | 114 | 6.3 |
Total Rest of the World | 2,987 | 34 | 1.1 | | 789 | 81 | 10.3 | | 176 | 128 | 72.7 | | 3,952 | 243 | 6.1 |
As at 31.12.23 | | | | | | | | | | | | | | | |
Retail credit cards | 1,621 | 15 | 0.9 | | 445 | 41 | 9.2 | | 92 | 68 | 73.9 | | 2,158 | 124 | 5.7 |
Retail other | 1,561 | 20 | 1.3 | | 288 | 32 | 11.1 | | 84 | 60 | 71.4 | | 1,933 | 112 | 5.8 |
Total Rest of the World | 3,182 | 35 | 1.1 | | 733 | 73 | 10.0 | | 176 | 128 | 72.7 | | 4,091 | 236 | 5.8 |
Loans and advances at amortised cost by product
The table below presents a product breakdown by stages of loans and advances at amortised cost. Also included is a breakdown of Stage 2 past due balances.
| | Stage 2 | | | |||
As at 31.03.24 | Stage 1 | Not past due | <=30 days past due | >30 days past due | Total | Stage 3 | Total |
Gross exposure | £m | £m | £m | £m | £m | £m | £m |
Retail mortgages | 148,242 | 17,741 | 1,992 | 801 | 20,534 | 2,354 | 171,130 |
Retail credit cards | 29,345 | 4,759 | 394 | 315 | 5,468 | 1,908 | 36,721 |
Retail other | 8,519 | 1,063 | 153 | 92 | 1,308 | 398 | 10,225 |
Corporate loans | 113,226 | 12,095 | 149 | 148 | 12,392 | 2,575 | 128,193 |
Total | 299,332 | 35,658 | 2,688 | 1,356 | 39,702 | 7,235 | 346,269 |
| | | | | | | |
Impairment allowance | | | | | | | |
Retail mortgages | 48 | 75 | 17 | 18 | 110 | 408 | 566 |
Retail credit cards | 510 | 1,224 | 164 | 196 | 1,584 | 1,471 | 3,565 |
Retail other | 59 | 81 | 18 | 18 | 117 | 171 | 347 |
Corporate loans | 272 | 372 | 8 | 9 | 389 | 607 | 1,268 |
Total | 889 | 1,752 | 207 | 241 | 2,200 | 2,657 | 5,746 |
| | | | | | | |
Net exposure | | | | | | | |
Retail mortgages | 148,194 | 17,666 | 1,975 | 783 | 20,424 | 1,946 | 170,564 |
Retail credit cards | 28,835 | 3,535 | 230 | 119 | 3,884 | 437 | 33,156 |
Retail other | 8,460 | 982 | 135 | 74 | 1,191 | 227 | 9,878 |
Corporate loans | 112,954 | 11,723 | 141 | 139 | 12,003 | 1,968 | 126,925 |
Total | 298,443 | 33,906 | 2,481 | 1,115 | 37,502 | 4,578 | 340,523 |
| | | | | | | |
Coverage ratio | % | % | % | % | % | % | % |
Retail mortgages | - | 0.4 | 0.9 | 2.2 | 0.5 | 17.3 | 0.3 |
Retail credit cards | 1.7 | 25.7 | 41.6 | 62.2 | 29.0 | 77.1 | 9.7 |
Retail other | 0.7 | 7.6 | 11.8 | 19.6 | 8.9 | 43.0 | 3.4 |
Corporate loans | 0.2 | 3.1 | 5.4 | 6.1 | 3.1 | 23.6 | 1.0 |
Total | 0.3 | 4.9 | 7.7 | 17.8 | 5.5 | 36.7 | 1.7 |
As at 31.12.23 | | | | | | | |
Gross exposure | £m | £m | £m | £m | £m | £m | £m |
Retail mortgages | 150,202 | 16,834 | 1,971 | 664 | 19,469 | 2,424 | 172,095 |
Retail credit cards | 30,409 | 4,858 | 392 | 328 | 5,578 | 1,720 | 37,707 |
Retail other | 8,469 | 1,094 | 126 | 123 | 1,343 | 493 | 10,305 |
Corporate loans | 112,505 | 12,960 | 179 | 163 | 13,302 | 2,554 | 128,361 |
Total | 301,585 | 35,746 | 2,668 | 1,278 | 39,692 | 7,191 | 348,468 |
| | | | | | | |
Impairment allowance | | | | | | | |
Retail mortgages | 50 | 73 | 20 | 12 | 105 | 428 | 583 |
Retail credit cards | 523 | 1,257 | 166 | 207 | 1,630 | 1,333 | 3,486 |
Retail other | 59 | 82 | 18 | 18 | 118 | 176 | 353 |
Corporate loans | 287 | 399 | 8 | 7 | 414 | 598 | 1,299 |
Total | 919 | 1,811 | 212 | 244 | 2,267 | 2,535 | 5,721 |
| | | | | | | |
Net exposure | | | | | | | |
Retail mortgages | 150,152 | 16,761 | 1,951 | 652 | 19,364 | 1,996 | 171,512 |
Retail credit cards | 29,886 | 3,601 | 226 | 121 | 3,948 | 387 | 34,221 |
Retail other | 8,410 | 1,012 | 108 | 105 | 1,225 | 317 | 9,952 |
Corporate loans | 112,218 | 12,561 | 171 | 156 | 12,888 | 1,956 | 127,062 |
Total | 300,666 | 33,935 | 2,456 | 1,034 | 37,425 | 4,656 | 342,747 |
| | | | | | | |
Coverage ratio | % | % | % | % | % | % | % |
Retail mortgages | - | 0.4 | 1.0 | 1.8 | 0.5 | 17.7 | 0.3 |
Retail credit cards | 1.7 | 25.9 | 42.3 | 63.1 | 29.2 | 77.5 | 9.2 |
Retail other | 0.7 | 7.5 | 14.3 | 14.6 | 8.8 | 35.7 | 3.4 |
Corporate loans | 0.3 | 3.1 | 4.5 | 4.3 | 3.1 | 23.4 | 1.0 |
Total | 0.3 | 5.1 | 7.9 | 19.1 | 5.7 | 35.3 | 1.6 |
Measurement uncertainty
Scenarios used to calculate the Group's expected credit losses charge were refreshed in Q124 with the Baseline scenario reflecting the latest consensus macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, GDP growth remains weak in the coming quarters and beyond as restrictive monetary policies, which impact economies with a lag, continue to restrain growth. Having peaked in 2022, consumer price inflation in the UK and the euro area eases back to around 2% in 2024. In the US, this adjustment takes a few additional quarters. The UK unemployment rate rises over 2024, and then remains in the 4.5-5.0% range. US unemployment rises to 4.2% at Q324 and then stabilises. With the significant decline in inflationary pressures, major central banks begin to cut rates in Q224. UK house prices remain weak in 2024 before stabilising and resuming the upward trend from 2025. The housing market in the US remains more resilient, with house prices continuing to grow.
In the Downside 2 scenario, inflationary pressures are assumed to intensify again, mainly driven by strong wage growth. Central banks raise rates further, with the UK bank rate and the US federal funds rate each reaching 8.5% in Q424. Major economies experience a rapid tightening of financial conditions alongside a significant increase in market volatility resulting in a sharp repricing of assets and higher credit losses. Central banks are forced to cut interest rates aggressively. Falling demand reduces UK and US GDP and headline inflation drops significantly. In the Upside 2 scenario, a rise in labour force participation and higher productivity contribute to accelerated economic growth without creating new inflationary pressures. With inflation continuing to fall, central banks lower interest rates, further stimulating aggregate demand, leading to reduced unemployment and GDP growth.
The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the Baseline attracting a lower weighting before the five weights are normalised to total 100%. The increases in the Upside scenario weightings were driven by the improvement in GDP in the Baseline scenario, bringing the Baseline scenario closer to the Upside scenarios. For further details see page 30.
The following tables show the key macroeconomic variables used in the five scenarios (5 year annual paths) and the probability weights applied to each scenario.
Macroeconomic variables used in the calculation of ECL | |||||
As at 31.03.24 | 2024 | 2025 | 2026 | 2027 | 2028 |
Baseline | % | % | % | % | % |
UK GDP1 | 0.1 | 1.2 | 1.6 | 1.7 | 1.7 |
UK unemployment2 | 4.6 | 4.6 | 4.6 | 4.7 | 4.9 |
UK HPI3 | (1.4) | 0.8 | 3.4 | 3.7 | 3.7 |
UK bank rate | 4.9 | 3.9 | 3.6 | 3.5 | 3.5 |
US GDP1 | 1.9 | 1.6 | 1.9 | 1.9 | 1.9 |
US unemployment4 | 4.1 | 4.2 | 4.2 | 4.2 | 4.2 |
US HPI5 | 3.4 | 3.0 | 3.3 | 3.3 | 3.3 |
US federal funds rate | 5.0 | 3.9 | 3.8 | 3.8 | 3.8 |
| | | | | |
Downside 2 | | | | | |
UK GDP1 | (0.9) | (3.4) | 1.8 | 1.8 | 1.2 |
UK unemployment2 | 4.7 | 7.4 | 6.6 | 5.4 | 5.1 |
UK HPI3 | (8.6) | (22.9) | 9.7 | 13.9 | 7.0 |
UK bank rate | 6.8 | 2.1 | 1.0 | 1.0 | 1.0 |
US GDP1 | 1.0 | (3.0) | 2.6 | 2.3 | 1.7 |
US unemployment4 | 4.6 | 6.9 | 6.1 | 5.2 | 4.9 |
US HPI5 | (2.5) | (9.2) | 4.9 | 7.6 | 4.7 |
US federal funds rate | 6.6 | 2.4 | 1.5 | 1.5 | 1.5 |
| | | | | |
Downside 1 | | | | | |
UK GDP1 | (0.4) | (1.2) | 1.7 | 1.8 | 1.5 |
UK unemployment2 | 4.6 | 6.0 | 5.6 | 5.1 | 5.0 |
UK HPI3 | (5.0) | (11.6) | 6.5 | 8.7 | 5.4 |
UK bank rate | 5.8 | 3.0 | 2.3 | 2.3 | 2.3 |
US GDP1 | 1.4 | (0.7) | 2.2 | 2.1 | 1.8 |
US unemployment4 | 4.4 | 5.5 | 5.2 | 4.7 | 4.6 |
US HPI5 | 0.4 | (3.2) | 4.1 | 5.4 | 4.0 |
US federal funds rate | 5.8 | 3.2 | 2.6 | 2.6 | 2.6 |
| | | | | |
Upside 2 | | | | | |
UK GDP1 | 1.1 | 4.0 | 3.1 | 2.5 | 2.3 |
UK unemployment2 | 4.1 | 3.6 | 3.6 | 3.6 | 3.6 |
UK HPI3 | 8.0 | 11.0 | 5.8 | 3.4 | 3.0 |
UK bank rate | 4.7 | 2.9 | 2.5 | 2.5 | 2.5 |
US GDP1 | 2.7 | 3.2 | 2.8 | 2.8 | 2.8 |
US unemployment4 | 3.7 | 3.6 | 3.5 | 3.5 | 3.5 |
US HPI5 | 6.0 | 3.9 | 4.7 | 4.6 | 4.6 |
US federal funds rate | 4.8 | 3.1 | 2.8 | 2.8 | 2.8 |
| | | | | |
Upside 1 | | | | | |
UK GDP1 | 0.6 | 2.6 | 2.3 | 2.1 | 2.0 |
UK unemployment2 | 4.3 | 4.1 | 4.1 | 4.2 | 4.3 |
UK HPI3 | 3.3 | 5.8 | 4.6 | 3.6 | 3.3 |
UK bank rate | 4.8 | 3.4 | 3.1 | 3.0 | 3.0 |
US GDP1 | 2.3 | 2.4 | 2.4 | 2.4 | 2.4 |
US unemployment4 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 |
US HPI5 | 4.7 | 3.4 | 4.0 | 3.9 | 3.9 |
US federal funds rate | 4.9 | 3.5 | 3.3 | 3.3 | 3.3 |
1 | Average Real GDP seasonally adjusted change in year. |
2 | Average UK unemployment rate 16-year+. |
3 | Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. |
4 | Average US civilian unemployment rate 16-year+. |
5 | Change in year end US HPI = FHFA House Price Index, relative to prior year end. |
As at 31.12.23 | 2023 | 2024 | 2025 | 2026 | 2027 |
Baseline | % | % | % | % | % |
UK GDP1 | 0.5 | 0.3 | 1.2 | 1.6 | 1.6 |
UK unemployment2 | 4.2 | 4.7 | 4.7 | 4.8 | 5.0 |
UK HPI3 | (3.3) | (5.1) | 0.7 | 3.1 | 5.3 |
UK bank rate | 4.7 | 4.9 | 4.1 | 3.8 | 3.5 |
US GDP1 | 2.4 | 1.3 | 1.7 | 1.9 | 1.9 |
US unemployment4 | 3.7 | 4.3 | 4.3 | 4.3 | 4.3 |
US HPI5 | 5.4 | 3.4 | 3.0 | 3.3 | 3.3 |
US federal funds rate | 5.1 | 5.0 | 3.9 | 3.8 | 3.8 |
| | | | | |
Downside 2 | | | | | |
UK GDP1 | 0.5 | (1.5) | (2.6) | 2.4 | 1.6 |
UK unemployment2 | 4.2 | 5.2 | 7.9 | 6.3 | 5.5 |
UK HPI3 | (3.3) | (19.3) | (16.8) | 14.5 | 12.4 |
UK bank rate | 4.7 | 6.6 | 1.3 | 1.0 | 1.0 |
US GDP1 | 2.4 | (0.6) | (2.0) | 3.1 | 2.0 |
US unemployment4 | 3.7 | 5.2 | 7.2 | 5.9 | 5.2 |
US HPI5 | 5.4 | (6.5) | (5.7) | 7.2 | 6.4 |
US federal funds rate | 5.1 | 6.3 | 1.8 | 1.5 | 1.5 |
| | | | | |
Downside 1 | | | | | |
UK GDP1 | 0.5 | (0.6) | (0.7) | 2.0 | 1.6 |
UK unemployment2 | 4.2 | 4.9 | 6.3 | 5.6 | 5.2 |
UK HPI3 | (3.3) | (12.4) | (8.3) | 8.7 | 8.8 |
UK bank rate | 4.7 | 5.8 | 2.7 | 2.5 | 2.3 |
US GDP1 | 2.4 | 0.3 | (0.2) | 2.5 | 1.9 |
US unemployment4 | 3.7 | 4.7 | 5.8 | 5.1 | 4.8 |
US HPI5 | 5.4 | (1.7) | (1.4) | 5.2 | 4.8 |
US federal funds rate | 5.1 | 5.7 | 2.9 | 2.8 | 2.8 |
| | | | | |
Upside 2 | | | | | |
UK GDP1 | 0.5 | 2.4 | 3.7 | 2.9 | 2.4 |
UK unemployment2 | 4.2 | 3.9 | 3.5 | 3.6 | 3.6 |
UK HPI3 | (3.3) | 7.8 | 7.6 | 4.5 | 5.6 |
UK bank rate | 4.7 | 4.3 | 2.7 | 2.5 | 2.5 |
US GDP1 | 2.4 | 2.8 | 3.1 | 2.8 | 2.8 |
US unemployment4 | 3.7 | 3.5 | 3.6 | 3.6 | 3.6 |
US HPI5 | 5.4 | 6.1 | 4.3 | 4.5 | 4.6 |
US federal funds rate | 5.1 | 4.3 | 2.9 | 2.8 | 2.8 |
| | | | | |
Upside 1 | | | | | |
UK GDP1 | 0.5 | 1.4 | 2.5 | 2.3 | 2.0 |
UK unemployment2 | 4.2 | 4.3 | 4.1 | 4.2 | 4.3 |
UK HPI3 | (3.3) | 1.2 | 4.1 | 3.8 | 5.4 |
UK bank rate | 4.7 | 4.6 | 3.4 | 3.3 | 3.0 |
US GDP1 | 2.4 | 2.0 | 2.4 | 2.4 | 2.4 |
US unemployment4 | 3.7 | 3.9 | 3.9 | 4.0 | 4.0 |
US HPI5 | 5.4 | 4.7 | 3.7 | 3.9 | 3.9 |
US federal funds rate | 5.1 | 4.7 | 3.5 | 3.3 | 3.3 |
1 | Average Real GDP seasonally adjusted change in year. |
2 | Average UK unemployment rate 16-year+. |
3 | Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. |
4 | Average US civilian unemployment rate 16-year+. |
5 | Change in year end US HPI = FHFA House Price Index, relative to prior year end. |
Scenario probability weighting | Upside 2 | Upside 1 | Baseline | Downside 1 | Downside 2 |
| % | % | % | % | % |
As at 31.03.24 | | | | | |
Scenario probability weighting | 14.6 | 25.5 | 32.6 | 17.6 | 9.7 |
As at 31.12.23 | | | | | |
Scenario probability weighting | 13.8 | 24.7 | 32.4 | 18.3 | 10.8 |
Treasury and Capital Risk
Regulatory minimum requirements
Capital
The Group's Overall Capital Requirement for CET1 remained 12.0% comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.6% Pillar 2A requirement and a 0.9% Countercyclical Capital Buffer (CCyB).
The Group's CCyB is based on the buffer rate applicable for each jurisdiction in which the Group has exposures. The buffer rates set by other national authorities for non-UK exposures are not currently material.
The Group's Pillar 2A requirement as per the PRA's Individual Capital Requirement is 4.6% of which at least 56.25% needs to be met with CET1 capital, equating to 2.6% of RWAs. The Pillar 2A requirement, based on a point in time assessment, has been set as a proportion of RWAs and is subject to at least annual review.
The Group's CET1 target ratio of 13-14% takes into account headroom above requirements which includes a confidential institution-specific PRA buffer. The Group remains above its minimum capital regulatory requirements including the PRA buffer.
Leverage
The Group is subject to a UK leverage ratio requirement of 4.1%. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer (CCLB) of 0.3%. The Group is also required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter.
MREL
The Group is required to meet the higher of: (i) two times the sum of 8% Pillar 1 and 4.6% Pillar 2A equating to 25.2% of RWAs; and (ii) 6.75% of leverage exposures. In addition, the higher of regulatory capital and leverage buffers apply. CET1 capital cannot be counted towards both MREL and the buffers, meaning that the buffers, including the above mentioned confidential institution-specific PRA buffer, will effectively be applied above MREL requirements.
In the disclosures that follow, references to CRR, as amended by CRR II, mean the capital regulatory requirements, as they form part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.
Capital ratios1,2 | As at 31.03.24 | As at 31.12.23 |
CET1 | 13.5% | 13.8% |
T1 | 17.3% | 17.7% |
Total regulatory capital | 19.6% | 20.1% |
MREL ratio as a percentage of total RWAs | 33.4% | 33.6% |
| | |
Own funds and eligible liabilities | £m | £m |
Total equity excluding non-controlling interests per the balance sheet | 71,680 | 71,204 |
Less: other equity instruments (recognised as AT1 capital) | (13,241) | (13,259) |
Adjustment to retained earnings for foreseeable ordinary share dividends | (1,123) | (795) |
Adjustment to retained earnings for foreseeable repurchase of shares | (796) | - |
Adjustment to retained earnings for foreseeable other equity coupons | (46) | (43) |
| | |
Other regulatory adjustments and deductions | | |
Additional value adjustments (PVA) | (1,834) | (1,901) |
Goodwill and intangible assets | (7,807) | (7,790) |
Deferred tax assets that rely on future profitability excluding temporary differences | (1,558) | (1,630) |
Fair value reserves related to gains or losses on cash flow hedges | 4,049 | 3,707 |
Excess of expected losses over impairment | (299) | (296) |
Gains or losses on liabilities at fair value resulting from own credit | 378 | 136 |
Defined benefit pension fund assets | (2,509) | (2,654) |
Direct and indirect holdings by an institution of own CET1 instruments | (3) | (20) |
Adjustment under IFRS 9 transitional arrangements | 137 | 288 |
Other regulatory adjustments | 116 | 357 |
CET1 capital | 47,144 | 47,304 |
| | |
AT1 capital | | |
Capital instruments and related share premium accounts | 13,263 | 13,263 |
Other regulatory adjustments and deductions | (22) | (60) |
AT1 capital | 13,241 | 13,203 |
| | |
T1 capital | 60,385 | 60,507 |
| | |
T2 capital | | |
Capital instruments and related share premium accounts | 7,704 | 7,966 |
Qualifying T2 capital (including minority interests) issued by subsidiaries | 401 | 569 |
Other regulatory adjustments and deductions | (35) | (160) |
Total regulatory capital | 68,455 | 68,882 |
| | |
Less : Ineligible T2 capital (including minority interests) issued by subsidiaries | (401) | (569) |
Eligible liabilities | 48,770 | 46,995 |
| | |
Total own funds and eligible liabilities3 | 116,824 | 115,308 |
| | |
Total RWAs | 349,635 | 342,717 |
1 | CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR II non-compliant capital instruments. |
2 | The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC AT1 securities, was 13.4%, with £47.0bn of CET1 capital and £349.6bn of RWAs calculated without applying the transitional arrangements of the CRR as amended by CRR II. |
3 | As at 31 March 2024, the Group's MREL requirement, excluding the PRA buffer, was to hold £105.2bn of own funds and eligible liabilities equating to 30.1% of RWAs. The Group remains above its MREL regulatory requirement including the PRA buffer. |
Movement in CET1 capital | Three months ended 31.03.24 |
| £m |
Opening CET1 capital | 47,304 |
| |
Profit for the period attributable to equity holders | 1,809 |
Own credit relating to derivative liabilities | 19 |
Ordinary share dividends paid and foreseen | (328) |
Purchased and foreseeable share repurchase | (1,000) |
Other equity coupons paid and foreseen | (262) |
Increase in retained regulatory capital generated from earnings | 238 |
| |
Net impact of share schemes | (241) |
Fair value through other comprehensive income reserve | (169) |
Currency translation reserve | 37 |
Other reserves | 2 |
Decrease in other qualifying reserves | (371) |
| |
Pension remeasurements within reserves | (153) |
Defined benefit pension fund asset deduction | 145 |
Net impact of pensions | (8) |
| |
Additional value adjustments (PVA) | 67 |
Goodwill and intangible assets | (17) |
Deferred tax assets that rely on future profitability excluding those arising from temporary differences | 72 |
Excess of expected loss over impairment | (3) |
Direct and indirect holdings by an institution of own CET1 instruments | 17 |
Adjustment under IFRS 9 transitional arrangements | (151) |
Other regulatory adjustments | (4) |
Decrease in regulatory capital due to adjustments and deductions | (19) |
| |
Closing CET1 capital | 47,144 |
CET1 capital decreased £0.2bn to £47.1bn (December 2023: £47.3bn), primarily due to:
• £1.8bn of capital generated from profit partially offset by distributions of £1.6bn comprising:
- £1.0bn of share buybacks announced with FY23 results
- £0.3bn accrual towards the FY24 dividend
- £0.3bn of equity coupons paid and foreseen
• £0.4bn decrease in other qualifying reserves including a reduction in the fair value through other comprehensive reserve and vesting of shares in employee share schemes
RWAs by risk type and business | |||||||||||||
| Credit risk | | Counterparty credit risk | | Market Risk | | Operational risk | Total RWAs | |||||
| STD | IRB | | STD | IRB | Settlement Risk | CVA | | STD | IMA | | | |
As at 31.03.24 | £m | £m | | £m | £m | £m | £m | | £m | £m | | £m | £m |
Barclays UK | 10,220 | 54,103 | | 184 | - | - | 109 | | 190 | - | | 11,715 | 76,521 |
Barclays UK Corporate Bank | 3,453 | 13,966 | | 105 | 364 | - | 34 | | 2 | 484 | | 3,024 | 21,432 |
Barclays Private Bank & Wealth Management | 4,678 | 452 | | 173 | 28 | - | 19 | | - | 292 | | 1,546 | 7,188 |
Barclays Investment Bank | 39,230 | 53,204 | | 20,182 | 23,437 | 48 | 2,789 | | 13,727 | 23,631 | | 24,179 | 200,427 |
Barclays US Consumer Bank | 18,817 | 1,001 | | - | - | - | - | | - | - | | 4,051 | 23,869 |
Head Office | 6,409 | 12,535 | | 1 | 18 | - | 4 | | 1 | 187 | | 1,043 | 20,198 |
Barclays Group | 82,807 | 135,261 | | 20,645 | 23,847 | 48 | 2,955 | | 13,920 | 24,594 | | 45,558 | 349,635 |
As at 31.12.23 | | | | | | | | | | | | | |
Barclays UK | 10,472 | 50,761 | | 178 | - | - | 94 | | 274 | - | | 11,715 | 73,494 |
Barclays UK Corporate Bank | 3,458 | 13,415 | | 262 | 167 | - | 14 | | 2 | 541 | | 3,024 | 20,883 |
Barclays Private Bank & Wealth Management | 4,611 | 455 | | 182 | 27 | - | 30 | | 1 | 322 | | 1,546 | 7,174 |
Barclays Investment Bank | 37,749 | 52,190 | | 18,512 | 21,873 | 159 | 3,248 | | 14,623 | 24,749 | | 24,179 | 197,282 |
Barclays US Consumer Bank | 19,824 | 966 | | - | - | - | - | | - | - | | 4,051 | 24,841 |
Head Office | 6,772 | 10,951 | | 1 | 21 | - | 6 | | 1 | 248 | | 1,043 | 19,043 |
Barclays Group | 82,886 | 128,738 | | 19,135 | 22,088 | 159 | 3,392 | | 14,901 | 25,860 | | 45,558 | 342,717 |
Movement analysis of RWAs | Credit risk | Counterparty credit risk | Market risk | Operational risk | Total RWAs |
| £m | £m | £m | £m | £m |
Opening RWAs (as at 31.12.23) | 211,624 | 44,774 | 40,761 | 45,558 | 342,717 |
Book size | 2,968 | 2,567 | (2,281) | - | 3,254 |
Acquisitions and disposals | - | - | - | - | - |
Book quality | (653) | (134) | - | - | (787) |
Model updates | - | - | - | - | - |
Methodology and policy | 3,903 | 399 | - | - | 4,302 |
Foreign exchange movements1 | 226 | (111) | 34 | - | 149 |
Total RWA movements | 6,444 | 2,721 | (2,247) | - | 6,918 |
Closing RWAs (as at 31.03.24) | 218,068 | 47,495 | 38,514 | 45,558 | 349,635 |
1 | Foreign exchange movements does not include the impact of foreign exchange for modelled market risk or operational risk. |
Overall RWAs increased £6.9bn to £349.6bn (December 2023: £342.7bn).
Credit risk RWAs increased £6.4bn:
• A £3.0bn increase in book size primarily driven by expected seasonal activity in the Investment Bank
• A £3.9bn increase in methodology and policy primarily driven by regulatory model changes in Barclays UK
Counterparty Credit risk RWAs increased £2.7bn:
• A £2.6bn increase in book size primarily due to expected seasonal activity in Global Markets
Market risk RWAs decreased £2.2bn:
• A £2.3bn decrease in book size including a reduction of the Stressed Value at Risk (SVaR) model adjustment as a result of changes in portfolio composition
Leverage ratios1,2 | As at 31.03.24 | As at 31.12.23 |
£m | £m | |
UK leverage ratio3 | 4.9% | 5.2% |
T1 capital | 60,385 | 60,507 |
UK leverage exposure | 1,226,450 | 1,168,275 |
Average UK leverage ratio | 4.7% | 4.8% |
Average T1 capital | 60,466 | 60,343 |
Average UK leverage exposure | 1,295,509 | 1,266,880 |
1 | Capital and leverage measures are calculated applying the transitional arrangements of the CRR as amended by CRR II. |
2 | Fully loaded UK leverage ratio was 4.9%, with £60.2bn of T1 capital and £1,226.3bn of leverage exposure. Fully loaded average UK leverage ratio was 4.7% with £60.3bn of T1 capital and £1,295.4bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements of the CRR as amended by CRR II. |
3 | Although the leverage ratio is expressed in terms of T1 capital, the leverage ratio buffers and 75% of the minimum requirement must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £6.4bn and against the 0.3% CCLB was £3.7bn. |
The UK leverage ratio decreased to 4.9% (December 2023: 5.2%) primarily due to a £58.2bn increase in leverage exposure to £1,226.5bn, largely driven by an increase in trading securities and secured lending in Global Markets.
Condensed Consolidated Financial Statements
Condensed consolidated income statement (unaudited) | ||
| Three months ended 31.03.24 | Three months ended 31.03.23 |
| £m | £m |
Total income | 6,953 | 7,237 |
Operating expenses excluding litigation and conduct | (4,118) | (4,111) |
Litigation and conduct | (57) | 1 |
Operating expenses | (4,175) | (4,110) |
Other net income/(expenses) | 12 | (5) |
Profit before impairment | 2,790 | 3,122 |
Credit impairment charges | (513) | (524) |
Profit before tax | 2,277 | 2,598 |
Tax charge | (465) | (561) |
Profit after tax | 1,812 | 2,037 |
| | |
Attributable to: | | |
Shareholders of the parent | 1,550 | 1,783 |
Other equity holders | 259 | 246 |
Equity holders of the parent | 1,809 | 2,029 |
Non-controlling interests | 3 | 8 |
Profit after tax | 1,812 | 2,037 |
| | |
Earnings per share | | |
Basic earnings per ordinary share | 10.3p | 11.3p |
| | |
Condensed consolidated balance sheet (unaudited) | ||
| As at 31.03.24 | As at 31.12.23 |
Assets | £m | £m |
Cash and balances at central banks | 251,267 | 224,634 |
Cash collateral and settlement balances | 137,467 | 108,889 |
Debt securities at amortised cost | 57,399 | 56,749 |
Loans and advances at amortised cost to banks | 8,471 | 9,459 |
Loans and advances at amortised cost to customers | 332,052 | 333,288 |
Reverse repurchase agreements and other similar secured lending at amortised cost | 2,860 | 2,594 |
Trading portfolio assets | 195,542 | 174,605 |
Financial assets at fair value through the income statement | 228,724 | 206,651 |
Derivative financial instruments | 250,869 | 256,836 |
Financial assets at fair value through other comprehensive income | 78,180 | 71,836 |
Investments in associates and joint ventures | 872 | 879 |
Goodwill and intangible assets | 7,813 | 7,794 |
Current tax assets | 252 | 121 |
Deferred tax assets | 6,165 | 5,960 |
Other assets | 19,185 | 17,192 |
Total assets | 1,577,118 | 1,477,487 |
| | |
Liabilities | | |
Deposits at amortised cost from banks | 23,525 | 14,472 |
Deposits at amortised cost from customers | 528,794 | 524,317 |
Cash collateral and settlement balances | 132,604 | 94,084 |
Repurchase agreements and other similar secured borrowings at amortised cost | 42,848 | 41,601 |
Debt securities in issue | 108,247 | 96,825 |
Subordinated liabilities | 10,543 | 10,494 |
Trading portfolio liabilities | 69,951 | 58,669 |
Financial liabilities designated at fair value | 326,195 | 297,539 |
Derivative financial instruments | 241,815 | 250,044 |
Current tax liabilities | 650 | 529 |
Deferred tax liabilities | 22 | 22 |
Other liabilities | 19,584 | 17,027 |
Total liabilities | 1,504,778 | 1,405,623 |
| | |
Equity | | |
Called up share capital and share premium | 4,302 | 4,288 |
Other reserves | (733) | (77) |
Retained earnings | 54,870 | 53,734 |
Shareholders' equity attributable to ordinary shareholders of the parent | 58,439 | 57,945 |
Other equity instruments | 13,241 | 13,259 |
Total equity excluding non-controlling interests | 71,680 | 71,204 |
Non-controlling interests | 660 | 660 |
Total equity | 72,340 | 71,864 |
| | |
Total liabilities and equity | 1,577,118 | 1,477,487 |
Condensed consolidated statement of changes in equity (unaudited) | |||||||
| Called up share capital and share premium | Other equity instruments | Other reserves |
Retained earnings |
Total | Non-controlling interests |
Total equity |
Three months ended 31.03.2024 | £m | £m | £m | £m | £m | £m | £m |
Balance as at 1 January 2024 | 4,288 | 13,259 | (77) | 53,734 | 71,204 | 660 | 71,864 |
Profit after tax | - | 259 | - | 1,550 | 1,809 | 3 | 1,812 |
Retirement benefit remeasurements | - | - | - | (153) | (153) | - | (153) |
Other comprehensive profit after tax for the period | - | - | (696) | - | (696) | - | (696) |
Total comprehensive income for the period | - | 259 | (696) | 1,397 | 960 | 3 | 963 |
Employee share schemes and hedging thereof | 40 | - | - | 417 | 457 | - | 457 |
Other equity instruments coupon paid | - | (259) | - | - | (259) | - | (259) |
Vesting of employee share schemes | - | - | 14 | (476) | (462) | - | (462) |
Dividends paid | - | - | - | - | - | (3) | (3) |
Repurchase of shares | (26) | - | 26 | (205) | (205) | - | (205) |
Other movements | - | (18) | - | 3 | (15) | - | (15) |
Balance as at 31 March 2024 | 4,302 | 13,241 | (733) | 54,870 | 71,680 | 660 | 72,340 |
| As at 31.03.24 | As at 31.12.23 |
Other Reserves | £m | £m |
Currency translation reserve | 3,708 | 3,671 |
Fair value through other comprehensive income reserve | (1,535) | (1,366) |
Cash flow hedging reserve | (4,048) | (3,707) |
Own credit reserve | (463) | (240) |
Other reserves and treasury shares | 1,605 | 1,565 |
Total | (733) | (77) |
Appendix: Non-IFRS Performance Measures
The Group's management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements, as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by 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.
Non-IFRS performance measures glossary
Measure | Definition |
Loan: deposit ratio | Total loans and advances at amortised cost divided by total deposits at amortised cost. |
Attributable profit | Profit after tax attributable to ordinary shareholders of the parent. |
Period end tangible equity refers to: | |
Period end tangible shareholders' equity (for Barclays Group) | Shareholders' equity attributable to ordinary shareholders of the parent, adjusted for the deduction of intangible assets and goodwill. |
Period end allocated tangible equity (for businesses) | Allocated tangible equity is calculated as 13.5% (2023: 13.5%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Barclays Group's tangible shareholders' equity and the amounts allocated to businesses. |
Average tangible equity refers to: | |
Average tangible shareholders' equity (for Barclays Group) | Calculated as the average of the previous month's period end tangible shareholders' equity and the current month's period end tangible shareholders' equity. The average tangible shareholders' equity for the period is the average of the monthly averages within that period. |
Average allocated tangible equity (for businesses) | Calculated as the average of the previous month's period end allocated tangible equity and the current month's period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period. |
Return on tangible equity (RoTE) refers to: | |
Return on average tangible shareholders' equity (for Barclays Group) | Annualised Group attributable profit, as a proportion of average tangible shareholders' equity. The components of the calculation have been included on pages 40 to 41. |
Return on average allocated tangible equity (for businesses) | Annualised business attributable profit, as a proportion of that business's average allocated tangible equity. The components of the calculation have been included on pages 40 to 42. |
Operating expenses excluding litigation and conduct | A measure of total operating expenses excluding litigation and conduct charges. |
Operating costs | A measure of total operating expenses excluding litigation and conduct charges and UK regulatory levies. |
Cost: income ratio | Total operating expenses divided by total income. |
Loan loss rate | Quoted in basis points and represents total impairment charges divided by total gross loans and advances held at amortised cost at the balance sheet date. |
Net interest margin | Annualised net interest income divided by the sum of average customer assets. The components of the calculation have been included on page 23. |
Tangible net asset value per share | Calculated by dividing shareholders' equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 43. |
Profit before impairment | Calculated by excluding credit impairment charges or releases from profit before tax. |
Structural cost actions | Cost actions taken to improve future financial performance. |
Group net interest income excluding Barclays Investment Bank and Head Office | A measure of Barclays Group net interest income, excluding the net interest income reported in Barclays Investment Bank and Head Office. |
Returns
| Three months ended 31.03.24 | | |||||
| Barclays UK | Barclays UK Corporate Bank | Barclays Private Bank and Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Group |
Return on average tangible equity | £m | £m | £m | £m | £m | £m | £m |
Attributable profit/(loss) | 479 | 113 | 74 | 899 | 44 | (59) | 1,550 |
| | | | | | | |
| £bn | £bn | £bn | £bn | £bn | £bn | £bn |
Average equity | 14.3 | 3.0 | 1.1 | 30.0 | 3.6 | 6.3 | 58.3 |
Average goodwill and intangibles | (3.9) | - | (0.1) | - | (0.3) | (3.5) | (7.8) |
Average tangible equity | 10.4 | 3.0 | 1.0 | 30.0 | 3.3 | 2.8 | 50.5 |
| | | | | | | |
Return on average tangible equity | 18.5% | 15.2% | 28.7% | 12.0% | 5.3% | n/m | 12.3% |
|
|
|
|
|
| |
|
| Three months ended 31.03.23 | | |||||
| Barclays UK | Barclays UK Corporate Bank | Barclays Private Bank and Wealth Management | Barclays Investment Bank | Barclays US Consumer Bank | Head Office | Barclays Group |
Return on average tangible equity | £m | £m | £m | £m | £m | £m | £m |
Attributable profit/(loss) | 515 | 157 | 90 | 1,048 | 59 | (86) | 1,783 |
| | | | | | | |
| | | | | | | |
Average equity | 13.9 | 2.9 | 1.1 | 29.1 | 3.9 | 5.0 | 55.9 |
Average goodwill and intangibles | (3.6) | - | (0.1) | - | (0.8) | (3.8) | (8.3) |
Average tangible equity | 10.3 | 2.9 | 1.0 | 29.1 | 3.1 | 1.2 | 47.6 |
| | | | | | | |
Return on average tangible equity | 20.0% | 21.7% | 34.5% | 14.4% | 7.5% | n/m | 15.0% |
Barclays Group | | | | | | | | | | |
Return on average tangible shareholders' equity | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
£m | | £m | £m | £m | £m | | £m | £m | £m | |
Attributable profit/(loss) | 1,550 | | (111) | 1,274 | 1,328 | 1,783 | | 1,036 | 1,512 | 1,071 |
| | | | | | | | | | |
| £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Average shareholders' equity | 58.3 | | 57.1 | 55.1 | 55.4 | 55.9 | | 54.9 | 56.8 | 57.1 |
Average goodwill and intangibles | (7.8) | | (8.2) | (8.6) | (8.7) | (8.3) | | (8.2) | (8.2) | (8.1) |
Average tangible shareholders' equity | 50.5 | | 48.9 | 46.5 | 46.7 | 47.6 | | 46.7 | 48.6 | 49.0 |
| | | | | | | | | | |
Return on average tangible shareholders' equity | 12.3% | | (0.9)% | 11.0% | 11.4% | 15.0% | | 8.9% | 12.5% | 8.7% |
Barclays UK | | | | | | | | | | |
Return on average allocated tangible equity | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
£m | | £m | £m | £m | £m | | £m | £m | £m | |
Attributable profit | 479 | | 382 | 531 | 534 | 515 | | 474 | 549 | 458 |
| | | | | | | | | | |
| £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Average allocated equity | 14.3 | | 14.1 | 14.0 | 14.2 | 13.9 | | 13.7 | 13.5 | 13.6 |
Average goodwill and intangibles | (3.9) | | (3.9) | (3.9) | (4.0) | (3.6) | | (3.5) | (3.6) | (3.6) |
Average allocated tangible equity | 10.4 | | 10.2 | 10.1 | 10.2 | 10.3 | | 10.2 | 9.9 | 10.0 |
| | | | | | | | | | |
Return on average allocated tangible equity | 18.5% | | 14.9% | 21.0% | 20.9% | 20.0% | | 18.7% | 22.1% | 18.4% |
Barclays UK Corporate Bank | | | | | | | | | | |
Return on average allocated tangible equity | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
£m | | £m | £m | £m | £m | | £m | £m | £m | |
Attributable profit | 113 | | 59 | 129 | 239 | 157 | | 131 | 172 | 166 |
| | | | | | | | | | |
| £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Average allocated equity | 3.0 | | 2.8 | 2.8 | 2.9 | 2.9 | | 2.9 | 2.9 | 3.0 |
Average goodwill and intangibles | - | | - | - | - | - | | - | - | - |
Average allocated tangible equity | 3.0 | | 2.8 | 2.8 | 2.9 | 2.9 | | 2.9 | 2.9 | 3.0 |
| | | | | | | | | | |
Return on average allocated tangible equity | 15.2% | | 8.4% | 18.3% | 32.9% | 21.7% | | 17.8% | 23.4% | 22.3% |
Barclays Private Bank and Wealth Management | | | | | | | | | | |
Return on average allocated tangible equity | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
£m | | £m | £m | £m | £m | | £m | £m | £m | |
Attributable profit | 74 | | 47 | 102 | 91 | 90 | | 92 | 108 | 85 |
| | | | | | | | | | |
| | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Average allocated equity | 1.1 | | 1.1 | 1.1 | 1.1 | 1.1 | | 1.2 | 1.1 | 1.1 |
Average goodwill and intangibles | (0.1) | | (0.1) | (0.1) | (0.1) | (0.1) | | (0.1) | (0.1) | (0.1) |
Average allocated tangible equity | 1.0 | | 1.0 | 1.0 | 1.0 | 1.0 | | 1.1 | 1.0 | 1.0 |
| | | | | | | | | | |
Return on average allocated tangible equity | 28.7% | | 19.1% | 41.2% | 35.9% | 34.5% | | 34.9% | 41.7% | 33.5% |
Barclays Investment Bank | | | | | | | | | | |
Return on average allocated tangible equity | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
£m | | £m | £m | £m | £m | | £m | £m | £m | |
Attributable profit/(loss) | 899 | | (149) | 580 | 562 | 1,048 | | 313 | 847 | 418 |
| | | | | | | | | | |
| £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Average allocated equity | 30.0 | | 28.9 | 28.8 | 29.0 | 29.1 | | 30.9 | 31.2 | 29.9 |
Average goodwill and intangibles | - | | - | - | - | - | | - | - | - |
Average allocated tangible equity | 30.0 | | 28.9 | 28.8 | 29.0 | 29.1 | | 30.9 | 31.2 | 29.9 |
| | | | | | | | | | |
Return on average allocated tangible equity | 12.0% | | (2.1)% | 8.0% | 7.7% | 14.4% | | 4.0% | 10.9% | 5.6% |
Barclays US Consumer Bank | | | | | | | | | | |
Return on average allocated tangible equity | Q124 | | Q423 | Q323 | Q223 | Q123 | | Q422 | Q322 | Q222 |
£m | | £m | £m | £m | £m | | £m | £m | £m | |
Attributable profit/(loss) | 44 | | (3) | 3 | 72 | 59 | | 101 | 107 | 118 |
| | | | | | | | | | |
| £bn | | £bn | £bn | £bn | £bn | | £bn | £bn | £bn |
Average allocated equity | 3.6 | | 3.6 | 3.8 | 3.9 | 3.9 | | 4.1 | 4.0 | 3.4 |
Average goodwill and intangibles | (0.3) | | (0.3) | (0.7) | (0.8) | (0.8) | | (0.9) | (0.9) | (0.8) |
Average allocated tangible equity | 3.3 | | 3.3 | 3.1 | 3.1 | 3.1 | | 3.2 | 3.1 | 2.6 |
| | | | | | | | | | |
Return on average allocated tangible equity | 5.3% | | (0.3)% | 0.4% | 9.3% | 7.5% | | 12.6% | 13.9% | 18.2% |
Tangible net asset value per share | As at 31.03.24 | As at 31.12.23 | As at 31.03.23 |
| £m | £m | £m |
Total equity excluding non-controlling interests | 71,680 | 71,204 | 69,699 |
Other equity instruments | (13,241) | (13,259) | (13,784) |
Goodwill and intangibles | (7,813) | (7,794) | (8,664) |
Tangible shareholders' equity attributable to ordinary shareholders of the parent | 50,626 | 50,151 | 47,251 |
| | | |
| m | m | m |
Shares in issue | 15,091 | 15,155 | 15,701 |
| | | |
| p | p | p |
Tangible net asset value per share | 335 | 331 | 301 |
Shareholder Information
Results timetable1 | | | Date | | | |
2024 Interim Results Announcement | | | 1 August 2024 | | ||
| | | ||||
| | | ||||
| | | ||||
| | | | | % Change3 | |
Exchange rates2 | 31.03.24 | 31.12.23 | 31.03.23 | | 31.12.23 | 31.03.23 |
Period end - USD/GBP | 1.26 | 1.28 | 1.23 | | (2)% | 2% |
3 month average - USD/GBP | 1.27 | 1.24 | 1.22 | | 2% | 4% |
Period end - EUR/GBP | 1.17 | 1.15 | 1.14 | | 2% | 3% |
3 month average - EUR/GBP | 1.17 | 1.15 | 1.13 | | 2% | 4% |
| | | | | | |
Share price data | | | | | | |
Barclays PLC (p) | 183.20 | 153.78 | 145.80 | | | |
Barclays PLC number of shares (m)4 | 15,091 | 15,155 | 15,701 | | | |
| | | | | | |
| | | | | | |
For further information please contact | | | | | | |
| | | | | | |
Investor relations | Media relations | |||||
Marina Shchukina +44 (0) 20 7116 2526 | Tom Hoskin +44 (0) 20 7116 4755 | |||||
| | |||||
More information on Barclays can be found on our website: home.barclays | ||||||
| | | | | | |
Registered office | | | | | | |
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839. | ||||||
| | | | | | |
Registrar | | | | | | |
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom. | | |||||
Tel: +44 (0)371 384 2055 (UK and International telephone number)5. | | |||||
| | | | | | |
American Depositary Receipts (ADRs) | | | | | | |
EQ Shareowner Services | ||||||
P.O. Box 64504 | ||||||
St. Paul, MN 55164-0504 | ||||||
United States of America | ||||||
shareowneronline.com | | | | | | |
Toll Free Number: +1 800-990-1135 | | | | | | |
Outside the US +1 651-453-2128 | | | | | | |
| | | | | | |
Delivery of ADR certificates and overnight mail | | | | | | |
EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100, USA. |
1 | Note that this date is provisional and subject to change. |
2 | The average rates shown above are derived from daily spot rates during the year. |
3 | The change is the impact to GBP reported information. |
4 | The number of shares of 15,091m as at 31 March 2024 is different from the 15,080m quoted in the 2 April 2024 announcement entitled "Total Voting Rights" because the share buyback transactions executed on 27 and 28 March 2024 did not settle until 2 April 2024 and 3 April 2024 respectively. |
5 | Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public holidays in England and Wales. |
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.