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Barclays PLC  -  BARC   

Barclays Q1 2014, 2013 & 2012 Results Restatement

Released 13:15 10-Jul-2014

RNS Number : 9779L
Barclays PLC
10 July 2014
 



Barclays PLC

Group Reporting Changes

Q1 2014, 2013 & 2012 Results Restatement Document


Table of Contents

 

Restatement Document

Page

Overview of Reporting Changes

4

Performance Highlights

8

Barclays Results by Quarter

11

Results by Business


- Personal and Corporate Banking

12

- Barclaycard

16

- Africa Banking

18

- Investment Bank

20

- Head Office

22

- Barclays Non-Core

24

Appendix I - Performance Management

26

Appendix II - CRD IV RWAs

29

 

BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839



 

Notes

The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Balance sheet comparative figures have been restated to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation. The abbreviations £m and £bn represent millions and thousands of millions of Pounds Sterling.

Adjusted profit before tax, adjusted attributable profit and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant and not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; disposal of the investment in BlackRock, Inc; the provision for Payment Protection Insurance redress payments and claims management costs (PPI redress); the provision for interest rate hedging products redress and claims management costs (interest rate hedging products redress); and goodwill impairment.

All capital measures, risk weighted assets and leverage disclosures are on a CRD IV basis unless otherwise stated.

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

The information in this announcement does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the SEC and which contained an unqualified audit report under Section 495 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

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 certain of the Barclays PLC's and its subsidiaries' (the Group) plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges and provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the Transform Programme and Group Strategy Update, run-down of assets and businesses within Barclays Non-Core, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards (IFRS), evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of the Group; the potential for one or more countries exiting the Eurozone; the implementation of the Transform Programme; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements. Additional risks and factors are identified in our filings with the US Securities and Exchange Commission  (SEC) including our Annual Report on Form 20-F for the fiscal year ended 31 December 2013 and our quarterly results to 31 March 2014 on form 6-K, which are available on the SEC's website at http://www.sec.gov.

 

Any forward-looking statements made herein speak only as of the date they are made and it should not be assumed that they have been revised or updated in the light of new information or future events. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange plc (the LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Barclays' expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has published or may publish via the Regulatory News Service of the LSE and/or has filed or may file with the US Securities and Exchange Commission.


Overview of reporting changes

This document provides further details of the impact on the Group's financial reporting as a result of the business reorganisation outlined in the Group Strategy Update on 8 May 2014.

 

Barclays will now focus on four Core businesses:

·      Personal and Corporate Banking;

·      Barclaycard;

·      Africa Banking; and

·      Investment Bank.

 

A Non-Core segment has also been created, consisting of businesses and assets which are no longer considered a strategic fit with the Core business of Barclays. This segment comprises three main elements:

·      Parts of the Investment Bank;

·      All of Europe Retail; and

·      Parts of the Corporate Bank in Europe and the Middle East, and certain long-dated Corporate loans.

 

The document outlines the impact on the Group's segmental results from the Group structure changes and the subsequent reallocation of elements of the Head Office results to the businesses post the resegmentation. While the Head Office allocation and resegmentation affects the reported results of the individual businesses, they have no impact on the Group's primary financial statements.

 

As Management principally reviews adjusting items at a Group level, segmental results are presented on an adjusted basis in accordance with IFRS 8 Operating Segments.  Statutory and adjusted performance is reconciled at a Group level only. 

 

A summary of the financial results for the resegmented Group for the year ended 31 December 2013 is shown in the table below:

 

2013 Barclays Results  

Adjusted

 

  

Personal & Corporate Banking

Barclaycard

Africa Banking

Investment Bank

Head Office

Barclays Core

Barclays Non-Core

Barclays Group

  

£m

£m

£m

£m

£m

£m

£m

£m

Total income net of insurance claims

8,723 

4,103 

4,039 

8,855 

142 

25,862 

2,293 

28,155 

Credit impairment (charges)/releases and other provisions  

(621)

(1,096)

(479)

22 

(2,171)

(900)

(3,071)

Net operating income  

8,102 

3,007 

3,560 

8,877 

145 

23,691 

1,393 

25,084 

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(5,460)

(1,786)

(2,451)

(6,172)

(113)

(15,982)

(2,198)

(18,180)

UK bank levy

(66)

(22)

(42)

(236)

(29)

(395)

(109)

(504)

Costs to achieve Transform

(384)

(49)

(26)

(190)

(22)

(671)

(538)

(1,209)

Operating expenses

(5,910)

(1,857)

(2,519)

(6,598)

(164)

(17,048)

(2,845)

(19,893)

Other net income/(expense)

41 

33 

86 

(110)

(24)

Profit/(loss) before tax  

2,233 

1,183 

1,049 

2,279 

(15)

6,729 

(1,562)

5,167 

Attributable profit/(loss)

1,681 

822 

356 

1,515 

(89)

4,285 

(1,890)

2,395 

  





  


  


Performance Measures





  


  


Return on average tangible equity

12.7%

19.9%

11.3%

9.8%

2.9%

15.1%

(9.8%)

5.3%

Return on average equity

9.7%

15.5%

8.1%

9.4%

1.8%

11.9%

(7.4%)

4.5%

Cost: income ratio

68%

45%

62%

75%

  

66%

124%

71%

Loan loss rate (bps)

28 

332 

128 

(2)

  

55 

107 

64 

   





  


  


Capital Management (£bn)





  


  


Risk weighted assets - fully loaded CRD IV

118 

36 

38 

126 

326 

110 

436 

Average allocated tangible equity

13 

15 

(8)

28 

17 

45 

Average allocated equity

17 

16 

(7)

36 

17 

53 

 

1        Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents the dilution for Barclays Core and the Group respectively. The change in Barclays Non-Core return on average equity dilution, as compared to the Group Strategy Update on 8 May 2014, includes the transfer, to the Investment Bank, of the £259m gain recognised in Q2 2013 in respect of assets not yet received from the 2008 US Lehman acquisition. As the majority of the activities acquired in 2008 form part of the ongoing core Investment Bank activities and as a direct consequence of the acquisition, it has been determined more appropriate to include this gain within the Investment Bank comparative.



 

Overview of reporting changes

Segmental restatements

Group Structure changes

In this document the Q1 2014, full year 2013 and full year 2012 segmental results have been restated to align to the new organisational structure announced on 8 May 2014:

Personal and Corporate Banking combines core elements of UK Retail and Business Banking, global Wealth and Investment Management, and global Corporate Banking. Transfers to the Non-Core segment include the UK retail insurance underwriting and investment businesses; selected non-core corporate banking in Europe and the Middle East and certain long-dated corporate loans; local Wealth operations in certain overseas locations; and certain asset management businesses. The African businesses of Corporate Banking and Wealth Management have been moved to Africa Banking. 

 

Barclaycard is largely unchanged, with the exception of the Africa Cards business moving to Africa Banking and the UK secured lending portfolio moving to Non-Core.

 

Africa Banking aligns the reporting of the business to how it is now managed. The previously reported Africa Retail and Business Banking has been combined with the other businesses across Africa previously reported within Barclaycard, the Investment Bank, Corporate Banking and Wealth Management.  The Africa Head Office function has also been transferred to Africa Banking.  This combined Africa Banking business is managed under three primary businesses: Retail and Business Banking; Wealth, Investment Management and Insurance; and Corporate and Investment Banking.  The resulting African business comprises the Barclays Africa Group Limited (BAGL) listed entity, together with Barclays Egypt and Zimbabwe businesses.

 

The Investment Bank now consists of origination led and returns focused markets and banking businesses. Non-strategic and lower returning businesses have been moved to the Non-Core segment and the African Investment Banking business has been moved to Africa Banking. Investment Bank treasury operations have been moved to be reported where they are now managed alongside the Group treasury operations within Head Office and Other Operations.

 

Head Office and Other Operations is largely unchanged with the exception of the addition of Investment Bank treasury operations and the transfer of the Africa Head Office function.

 

Barclays Non-Core (BNC) groups together businesses and assets that are not strategically attractive to Barclays and that will be exited over time.

 

Businesses have been placed in BNC on the basis of two criteria:

·   Strategic focus - businesses and portfolios that do not fit with our strategic customer franchise or are a poor fit with our sources of competitive advantage; and

·   Returns on CRD IV capital and leverage exposure - businesses and portfolios that are capital and/or leverage intensive, with high cost structures, and do not expect to meet our return targets over the medium term.



 

Overview of reporting changes

BNC definition and allocations

Key judgments around the allocation of activity and related financial metrics between Core segments and BNC include the following:

Income

 

Where entire business lines have been determined not to be strategically attractive, they have been placed within BNC.  In other areas, particularly within the Investment Bank, particular assets or areas of activity have been identified not to be strategically attractive and similarly placed within BNC.  In certain instances, this has involved some judgment including, in particular, the two areas outlined below:

 

Fixed Income Financing

Following the Strategic Update, the core Fixed Income Financing business has been mandated to operate within limits defined by utilisation of leverage balance sheet.  The Group's overall level of activity in this area will be reduced to come in line with these limits over time.  Until then, activity in excess of the Investment Bank's mandate is Non-Core and BNC has assumed responsibility for that activity.  This principally comprises the transfer of a proportion of the portfolio from the Investment Bank to BNC on arm's length terms.  In addition, over time, specific asset types within the Fixed Income Financing business that are not aligned to the firm's ongoing strategy will be identified and transferred to BNC in their entirety, while being run down or exited. 

 

Derivative portfolios

A number of derivative portfolios in the Investment Bank reflect activity that is no longer attractive for the bank following changes in the regulatory environment and related market behaviour and pricing.  Such changes have happened over time but in the interests of simplicity, these portfolios have been defined to comprise positions entered into before the principal implementation of CRD IV. Accordingly, responsibility for those portfolios after that point has been transferred to BNC.  The results for those portfolios prior to that point will remain in the historical Investment Bank results.

 

Expense

 

Cost allocation 

The direct costs of Non-Core activity are reported within BNC. Where it has been necessary to make allocations of such costs between operating segments, this has been done with the objective of reporting costs in the same operating segment as the related income.  Indirect costs, such as those arising from infrastructure and distribution, have been allocated by reference to the same objective, using appropriate measures of activity such as trade volume and time spent.

 

Litigation and conduct 

Provisions and contingent liabilities relating to litigation and conduct matters are reported within BNC where they relate to Non-Core businesses.  Payment Protection Insurance and Interest Rate Hedging Products redress provisions have been reported as adjusting items and are not attributed to any operating segment.

 

Tax

 

Tax is recognised within the operating segment that has recognised the associated profit or loss.  Deferred tax balances have been allocated to the operating segment that originated the related temporary difference, tax loss or tax credit.

 

RWAs

 

RWAs have been allocated to operating segments directly where possible, otherwise using judgemental allocations. Where practicable and appropriate, these methodologies calculate RWAs for Core segments on a standalone basis (such that only the netting and diversification benefits attributable to that segment are incorporated), with the residual allocated to BNC. This would mean that the BNC RWAs are lower than they would be on a standalone basis.  



 

Overview of reporting changes

Head Office Allocations

The Group allocates elements of the Head Office performance to business segments, so that the aggregate of those businesses' results is closely aligned to the Group's results, including Group return on equity.

The underlying principle of materially allocating all of the Head Office income and costs to businesses is unchanged, although the basis of allocation has been updated as part of the restatement, in particular in relation to the following:

·      In recognition of the local equity listing of the BAGL entity, the significant minority interest in the business and existing local Head Office functionality, Head Office allocations to Africa Banking have been restated to those that are deemed to be incrementally incurred as a consequence of Barclays operations in Africa. Investment Bank treasury operations have been resegmented to Head Office; and

·      Residual Group treasury funding costs have been allocated from Head Office to other segments using appropriate methodologies to reflect business accountability.

 

Barclays Performance Highlights

 

Barclays Results

for the three months ended

Adjusted


Statutory

31.03.14


31.03.14

 

  

Barclays Core

Barclays Non-Core

Barclays Group


Barclays Group

  

£m

£m

£m


£m

Total income net of insurance claims

6,277 

373 

6,650 


6,769 

Credit impairment charges and other provisions  

(481)

(67)

(548)


(548)

Net operating income  

5,796 

306 

6,102 


6,221 

Operating expenses (excluding costs to achieve Transform)

(3,753)

(442)

(4,195)


(4,195)

Costs to achieve Transform

(216)

(24)

(240)


(240)

Operating expenses

(3,969)

(466)

(4,435)


(4,435)

Other net income

20 

26 


26 

Profit/(loss) before tax  

1,847 

(154)

1,693 


1,812 

Attributable profit/(loss)

1,053 

(171)

882 


965 

  



  



Performance Measures



  



Return on average tangible shareholders' equity

13.1%

(5.6%)

7.5%


8.3%

Return on average shareholders' equity

10.6%

(4.2%)

6.4%


7.1%

Cost: income ratio

63%

125%

67%


66%

Loan loss rate (bps)



45 


45 

  



  



Basic earnings per share  

6.5p

(1.1p)

5.4p


5.9p

Dividend per share  



  


1.0p

   



  



Balance Sheet and Leverage



  



Net asset value per share



  


331p

Net tangible asset value per share



  


284p

Estimated PRA leverage exposure



  


£1,326bn

  



  



Capital Management



  



CRD IV fully loaded



  



Common equity tier 1 ratio



  


9.6%

Common equity tier 1 capital



  


£41.4bn

Risk weighted assets  

£323bn

£106bn

  


£429bn

Estimated leverage ratio



  


3.3%

Estimated PRA leverage ratio



  


3.1%

  



  



Funding and Liquidity



  



Group liquidity pool  



  


£134bn

Loan: deposit ratio  



  


101%

Estimated liquidity coverage ratio



  


109%

  



  



Adjusted Profit Reconciliation



  



Adjusted profit before tax



  


1,693 

Own credit



  


119 

Statutory profit before tax



  


1,812 

 

1        Attributable profit/(loss) comprises profit/(loss) after tax and non-controlling interests.

2       Return on average equity and average tangible equity for Barclays Non-Core represents the dilution for the Group.

3        Net asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, by the number of issued ordinary shares.  Net tangible asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, less goodwill and intangible assets, by the number of issued ordinary shares.

 

Barclays Performance Highlights

Barclays Results

for the twelve months ended

Adjusted


Statutory

31.12.13


31.12.13

 

  

Barclays Core

Barclays Non-Core

Barclays Group


Barclays Group

  

£m

£m

£m


£m

Total income net of insurance claims

25,862 

2,293 

28,155 


27,935 

Credit impairment charges and other provisions  

(2,171)

(900)

(3,071)


(3,071)

Net operating income  

23,691 

1,393 

25,084 


24,864 

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(15,982)

(2,198)

(18,180)


(20,259)

UK bank levy

(395)

(109)

(504)


(504)

Costs to achieve Transform

(671)

(538)

(1,209)


(1,209)

Operating expenses

(17,048)

(2,845)

(19,893)


(21,972)

Other net income/(expense)

86 

(110)

(24)


(24)

Profit/(loss) before tax  

6,729 

(1,562)

5,167 


2,868 

Attributable profit/(loss)

4,285 

(1,890)

2,395 


540 

  



  



Performance Measures



  



Return on average tangible shareholders' equity

15.1%

(9.8%)

5.3%


1.2%

Return on average shareholders' equity

11.9%

(7.4%)

4.5%


1.0%

Cost: income ratio

66%

124%

71%


79%

Loan loss rate (bps)

55 

107 

64 


64 

  



  



Basic earnings per share  

29.9p

(13.2p)

16.7p


3.8p

Dividend per share  



  


6.5p

   



  



Balance Sheet and Leverage



  



Net asset value per share



  


331p

Net tangible asset value per share



  


283p

Estimated PRA leverage exposure



  


£1,365bn

  



  



Capital Management



  



CRD IV fully loaded



  



Common equity tier 1 ratio



  


9.3%

Common equity tier 1 capital



  


£40.4bn

Risk weighted assets  

£326bn

£110bn

  


£436bn

Estimated leverage ratio



  


3.1%

Estimated PRA leverage ratio



  


3.0%

  



  



Funding and Liquidity



  



Group liquidity pool  



  


£127bn

Loan: deposit ratio  



  


101%

Estimated liquidity coverage ratio



  


102%

Estimated net stable funding ratio



  


110%

  



  



Adjusted Profit Reconciliation



  



Adjusted profit before tax



  


5,167 

Own credit



  


(220)

Provision for PPI redress



  


(1,350)

Provision for interest rate hedging products redress



  


(650)

Goodwill impairment



  


(79)

Statutory profit before tax



  


2,868 

 

1        Attributable profit/(loss) comprises profit/(loss) after tax and non-controlling interests.

2       Return on average equity and average tangible equity for Barclays Non-Core represents the dilution for the Group.

3        Net asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, by the number of issued ordinary shares.  Net tangible asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, less goodwill and intangible assets, by the number of issued ordinary shares.

 

Barclays Performance Highlights

 

Barclays Results

for the twelve months ended

Adjusted


Statutory

31.12.12


31.12.12

 

  

Barclays Core

Barclays Non-Core

Barclays Group


Barclays Group

  

£m

£m

£m


£m

Total income net of insurance claims

26,154 

3,207 

29,361 


25,009 

Credit impairment charges and other provisions  

(2,378)

(962)

(3,340)


(3,340)

Net operating income  

23,776 

2,245 

26,021 


21,669 

Operating expenses (excluding UK bank levy)

(16,209)

(2,008)

(18,217)


(20,667)

UK bank levy

(263)

(82)

(345)


(345)

Operating expenses

(16,472)

(2,090)

(18,562)


(21,012)

Other net income

75 

65 

140 


140 

Profit before tax  

7,379 

220 

7,599 


797 

Attributable profit/(loss)

4,120 

515 

4,635 


(624)

  






Performance Measures






Return on average tangible shareholders' equity2,3

12.4%

(1.8%)

10.6%


(1.4%)

Return on average shareholders' equity2,3

10.1%

(1.1%)

9.0%


(1.2%)

Cost: income ratio

63%

65%

63%


84%

Loan loss rate (bps)

63 

93 

70 


70 

  






Basic earnings per share  

31.6p

3.9p

35.5p


(4.8p)

Dividend per share  





6.5p

   






Balance Sheet






Net asset value per share





414p

Net tangible asset value per share





349p

  






Capital Management






CRD IV fully loaded






Risk weighted assets  





£468bn

  






Funding and Liquidity






Group liquidity pool  





£150bn

Loan: deposit ratio  





110%

Estimated liquidity coverage ratio





126%

Estimated net stable funding ratio





112%

  






Adjusted Profit Reconciliation






Adjusted profit before tax





7,599 

Own credit





(4,579)

Gain on disposal of BlackRock, Inc. investment





227 

Provision for PPI redress





(1,600)

Provision for interest rate hedging products redress





(850)

Statutory profit before tax





797 

 

1        Attributable profit/(loss) comprises profit/(loss) after tax and non-controlling interests. 

2       2012 returns calculated using average allocated equity based on CRD III RWAs and capital deductions.

3        Return on average equity and average tangible equity for Barclays Non-Core represents the dilution for the Group.

4       Net asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, by the number of issued ordinary shares.  Net tangible asset value per share is calculated by dividing shareholders' equity, excluding non-controlling and other equity interests, less goodwill and intangible assets, by the number of issued ordinary shares.


Barclays Performance Highlights

Restated Barclays Core Results by Quarter

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income net of insurance claims  

6,277 


6,189 

6,076 

6,773 

6,824 


6,115 

6,278 

6,658 

7,103 

Credit impairment charges and other provisions  

(481)


(542)

(554)

(558)

(517)


(600)

(628)

(590)

(560)

Net operating income

5,796 


5,647 

5,522 

6,215 

6,307 


5,515 

5,650 

6,068 

6,543 

Operating expenses (excluding UK bank levy and costs to achieve Transform)  

(3,753)


(4,114)

(3,776)

(3,853)

(4,239)


(3,844)

(3,906)

(4,023)

(4,436)

UK bank levy  


(395)


(263)

Costs to achieve Transform

(216)


(365)

(84)

(64)

(158)


Operating expenses

(3,969)


(4,874)

(3,860)

(3,917)

(4,397)


(4,107)

(3,906)

(4,023)

(4,436)

Other net income

20 


15 

15 

13 

43 


21 

12 

31 

11 

Profit before tax

1,847 


788 

1,677 

2,311 

1,953 


1,429 

1,756 

2,076 

2,118 

Attributable profit

1,053 


601 

1,009 

1,360 

1,315 


687 

895 

1,157 

1,381 

  












 

Restated Barclays Non-Core Results by Quarter

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income net of insurance claims  

373 


450 

368 

564 

911 


752 

724 

726 

1,005 

Credit impairment charges and other provisions  

(67)


(176)

(168)

(367)

(189)


(226)

(177)

(335)

(224)

Net operating income

306 


274 

200 

197 

722 


526 

547 

391 

781 

Operating expenses (excluding UK bank levy and costs to achieve Transform)  

(442)


(664)

(485)

(507)

(542)


(500)

(447)

(532)

(529)

UK bank levy  


(109)


(82)

Costs to achieve Transform

(24)


(103)

(17)

(62)

(356)


Operating expenses

(466)


(876)

(502)

(569)

(898)


(582)

(447)

(532)

(529)

Other net income/(expense)


10 

(135)

11 


21 

10 

25 

(Loss)/profit before tax

(154)


(598)

(292)

(507)

(165)


(35)

109 

(131)

277 

Attributable (loss)/profit

(171)


(997)

(274)

(314)

(305)


53 

179 

(83)

366 

  














Results by Business

2013 Personal and Corporate Banking



Restatement Adjustments

  

 

Income Statement Information

UK RBB (Published)

Corporate Banking (Published)

Wealth & Investment M'gment (Published)

Group Structure

Head Office Allocation

2013 as

Restated

  

£m

£m

£m

£m

£m

£m

Net interest income

3,395 

1,987 

859 

(270)

(78)

5,893 

Net fee and commission income

1,098 

992 

968 

(335)

2,723 

Net trading income

97 

17 

(60)

54 

Net investment income

12 

-

13 

Net premiums from insurance contracts

46 

(29)

17 

Other income/(expense)

27 

(6)

-

23 

Total income

4,540 

3,115 

1,839 

(693)

(78)

8,723 

Net claims and benefits incurred under insurance contracts

(17)

17 

Total income net of insurance claims

4,523 

3,115 

1,839 

(676)

(78)

8,723 

Credit impairment charges and other provisions

(347)

(510)

(121)

357 

(621)

Net operating income

4,176 

2,605 

1,718 

(319)

(78)

8,102 

  






  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(2,812)

(1,641)

(1,586)

593 

(14)

(5,460)

UK bank levy

(21)

(51)

(6)

12 

(66)

Costs to achieve Transform

(175)

(114)

(158)

63 

(384)

Operating expenses

(3,008)

(1,806)

(1,750)

656 

(2)

(5,910)

  






  

Other net income

27 

13 

(1)

41 

Profit/(loss) before tax

1,195 

801 

(19)

336 

(80)

2,233 

Attributable profit/(loss)

917 

247 

(24)

606 

(65)

1,681 

  






  

Balance Sheet Information






  

Loans and advances to customers at amortised cost

£136.5bn

£61.1bn

£23.1bn

£(8.5bn)


£212.2bn

Loans and advances to customers at fair value

-

£15.7bn

£(15.4bn)


£0.3bn

Customer deposits

£135.5bn

£108.7bn

£63.4bn

£(11.7bn)


£295.9bn

Total assets

£152.9bn

£113.9bn

£37.6bn

£(25.9bn)


£278.5bn

Risk weighted assets - fully loaded CRD IV

£44.1bn

£70.5bn

£17.3bn

£(13.6bn)


£118.3bn

  






  

Performance Measures






  

Return on average tangible equity

20.0%

3.3%

(1.4%)



12.7%

Return on average equity

11.5%

3.1%

(1.0%)



9.7%

Cost: income ratio

67%

58%

95%



68%

Loan loss rate (bps)

25 

77 

51 



28 

 

 

1        Attributable profit comprises profit after tax and non-controlling interests.

2       2013 total assets and risk weighted assets include an allocation of liquidity pool assets previously held centrally.

3        As part of the restatement, 2013 returns have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III).



 

Results by Business

2012 Personal and Corporate Banking



Restatement Adjustments

  

 

Income Statement Information

UK RBB (Published)

Corporate Banking (Published)

Wealth and Investment M'gment (Published)

Group Structure

Head Office Allocation

2012 as

Restated

  

£m

£m

£m

£m

£m

£m

Net interest income

3,190 

1,911 

856 

(235)

5,730 

Net fee and commission income

1,154 

998 

948 

(323)

2,777 

Net trading income

87 

16 

(86)

17 

Net investment income

23 

(2)

21 

Net premiums from insurance contracts

74 

(49)

25 

Other (expense)/income

(1)

27 

(17)

Total income

4,417 

3,046 

1,820 

(712)

8,579 

Net claims and benefits incurred under insurance contracts

(33)

33 

Total income net of insurance claims

4,384 

3,046 

1,820 

(679)

8,579 

Credit impairment charges and other provisions

(269)

(885)

(38)

566 

(626)

Net operating income

4,115 

2,161 

1,782 

(113)

7,953 

  






  

Operating expenses (excluding UK bank levy)

(2,877)

(1,672)

(1,505)

621 

(23)

(5,456)

UK bank levy

(17)

(39)

(4)

11 

(49)

Operating expenses

(2,894)

(1,711)

(1,509)

621 

(12)

(5,505)

  






  

Other net income

10 

(8)

Profit before tax

1,225 

460 

274 

500 

(4)

2,455 

Attributable profit

875 

228 

222 

394 

(16)

1,703 

  






  

Balance Sheet Information






  

Loans and advances to customers at amortised cost

£128.1bn

£64.3bn

£21.3bn

£(9.9bn)


£203.8bn

Loans and advances to customers at fair value

£17.6bn

£(17.2bn)


£0.4bn

Customer deposits

£116.0bn

£99.6bn

£53.8bn

£(13.0bn)


£256.4bn

Total assets

£134.6bn

£87.8bn

£24.5bn

£(31.2bn)


£215.7bn

  






  

Performance Measures






  

Return on average tangible equity

22.9%

3.1%

15.5%



15.0%

Return on average equity

12.3%

2.9%

11.2%



11.1%

Cost: income ratio

66%

56%

83%



64%

Loan loss rate (bps)

21 

127 

17 



30 

 

1        Attributable profit comprises profit after tax and non-controlling interests.

2       2012 returns calculated using average allocated equity based on CRD III RWAs and capital deductions.



 

Results by Business

Personal and Corporate Banking











  

  











  

Income Statement Information

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income net of insurance claims

2,173 


2,166 

2,252 

2,192 

2,113 


2,153 

2,151 

2,146 

2,129 

Credit impairment charges and other provisions

(135)


(169)

(153)

(165)

(134)


(191)

(152)

(118)

(165)

Net operating income

2,038 


1,997 

2,099 

2,027 

1,979 


1,962 

1,999 

2,028 

1,964 

Operating expenses (excluding UK bank levy and Costs to achieve Transform)

(1,298)


(1,388)

(1,318)

(1,378)

(1,376)


(1,337)

(1,356)

(1,329)

(1,434)

UK bank levy


(66)


(49)

Costs to achieve Transform

(57)


(219)

(73)

(55)

(37)


Operating expenses

(1,355)


(1,673)

(1,391)

(1,433)

(1,413)


(1,386)

(1,356)

(1,329)

(1,434)

Other net income/(expense)


30 


(1)

(2)

Profit before tax

688 


327 

709 

601 

596 


579 

650 

698 

528 

  











  

 

 


Results by Business

Barclaycard


Restatement Adjustments




Restatement Adjustments

  

 

Income Statement Information

2013 (Published)

Group Structure

Head Office Allocation

2013 as

Restated


2012 (Published)

Group Structure

Head Office Allocation

2012 as

Restated

  

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

3,318 

(434)

(55)

2,829 


3,009 

(347)

(30)

2,632 

Net fee and commission income

1,435 

(179)

1,256 


1,292 

(126)

1,166 

Net premiums from insurance contracts

26 

(16)

10 


36 

(21)

15 

Other income


(4)

-

Total income net of insurance claims

4,786 

(628)

(55)

4,103 


4,344 

(498)

(30)

3,816 

Credit impairment charges and other provisions

(1,264)

168 

(1,096)


(1,049)

49 

(1,000)

Net operating income

3,522 

(460)

(55)

3,007 


3,295 

(449)

(30)

2,816 

  









  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(1,975)

200 

(11)

(1,786)


(1,826)

164 

(7)

(1,669)

UK bank levy

(24)

(22)


(16)

(15)

Costs to achieve Transform

(49)

-

(49)


Operating expenses

(2,048)

200 

(9)

(1,857)


(1,842)

164 

(6)

(1,684)

  









  

Other net income

33 

-

33 


29 

29 

Profit before tax

1,507 

(260)

(64)

1,183 


1,482 

(285)

(36)

1,161 

Attributable profit

1,006 

(132)

(52)

822 


975 

(125)

(38)

812 

  









  

Balance Sheet Information









  

Loans and advances to customers at amortised cost

£35.6bn

£(4.1bn)


£31.5bn


£33.8bn

£(5.0bn)


£28.8bn

Customer deposits

£5.2bn

£(0.1bn)


£5.1bn


£2.8bn

£(0.1bn)


£2.7bn

Total assets

£38.9bn

£(4.5bn)


£34.4bn


£38.2bn

£(5.3bn)


£32.9bn

Risk weighted assets - fully loaded

CRD IV

£40.5bn

£(4.8bn)


£35.7bn





  

  









  

Performance Measures









  

Return on average tangible equity

24.5%



19.9%


26.9%



23.7%

Return on average equity

18.4%



15.5%


19.8%



18.0%

Cost: income ratio

43%



45%


42%



44%

Loan loss rate (bps)

337 



332 


294 



328 

 

 

1        Attributable profit comprises profit after tax and non-controlling interests.

2       2013 total assets and risk weighted assets include an allocation of liquidity pool assets previously held centrally.

3        As part of the restatement, 2013 returns have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III). 2012 returns remain based on CRD III.



 

Results by Business

Barclaycard











  

  











  

Income Statement Information

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income net of insurance claims

1,042 


1,034 

1,050 

1,030 

989 


987 

956 

962 

911 

Credit impairment charges and other provisions

(269)


(266)

(290)

(272)

(268)


(265)

(259)

(242)

(234)

Net operating income

773 


768 

760 

758 

721 


722 

697 

720 

677 

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(402)


(457)

(455)

(424)

(450)


(472)

(401)

(402)

(394)

UK bank levy


(22)


(15)

Costs to achieve Transform

(13)


(38)

(6)

(5)


Operating expenses

(415)


(517)

(461)

(429)

(450)


(487)

(401)

(402)

(394)

Other net income

10 


12 


Profit before tax

368 


256 

311 

336 

280 


240 

303 

326 

292 

  











  


Results by Business

Africa Banking









  

  


Restatement Adjustments




Restatement Adjustments

  

 

Income Statement Information

Africa RBB

2013 (Published)

Group Structure

Head Office Allocation

2013 as

Restated


Africa RBB

2012 (Published)

Group Structure

Head Office Allocation

2012 as

Restated

  

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

1,437 

662 

146 

2,245 


1,654 

531 

128 

2,313 

Net fee and commission income

924 

330 

1,254 


1,065 

319 

1,384 

Net premiums from insurance contracts

359 

15 

374 


417 

15 

432 

Other income/(expense)

81 

270 

-

351 


(1)

394 

393 

Total income

2,801 

1,277 

146 

4,224 


3,135 

1,259 

128 

4,522 

Net claims and benefits incurred under insurance contracts

(184)

(1)

(185)


(207)

(1)

(208)

Total income net of insurance claims

2,617 

1,276 

146 

4,039 


2,928 

1,258 

128 

4,314 

Credit impairment charges and other provisions

(324)

(155)

(479)


(632)

(63)

(695)

Net operating income

2,293 

1,121 

146 

3,560 


2,296 

1,195 

128 

3,619 

  









  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(1,842)

(665)

56 

(2,451)


(1,960)

(673)

49 

(2,584)

UK bank levy

(28)

(14)

(42)


(24)

(10)

(34)

Costs to achieve Transform

(26)

(26)


Operating expenses

(1,896)

(665)

42 

(2,519)


(1,984)

(673)

39 

(2,618)

  









  

Other net income


10 

18 

Profit before tax

404 

457 

188 

1,049 


322 

530 

167 

1,019 

Attributable profit/(loss)

189 

158 

356 


(4)

224 

127 

347 

  









  

Balance Sheet Information









  

Loans and advances to customers at amortised cost

£24.2bn

£10.7bn


£34.9bn


£29.9bn

£11.3bn


£41.2bn

Customer deposits

£16.9bn

£17.7bn


£34.6bn


£19.5bn

£20.2bn


£39.7bn

Total assets

£33.5bn

£21.4bn


£54.9bn


£42.2bn

£22.7bn


£64.9bn

Risk weighted assets - fully loaded

CRD IV

£22.8bn

£15.2bn


£38.0bn





  

  









  

Performance Measures









  

Return on average tangible equity

0.8%



11.3%


(0.2%)



10.0%

Return on average equity

0.4%



8.1%


(0.1%)



7.2%

Cost: income ratio

72%



62%


68%



61%

Loan loss rate (bps)

128 



128 


202 



158 

 

 

1        Attributable profit comprises profit after tax and non-controlling interests.

2       The equity used for return on equity has been restated to reflect Barclays' share of the statutory equity of the BAGL entity (together with that of the Barclays Egypt and Zimbabwe businesses which remain outside the BAGL corporate entity), as well as Barclays' goodwill on acquisition of these businesses. The tangible equity for return on tangible equity uses the same basis but excludes both Barclays' goodwill on acquisition and the goodwill and intangibles held within the statutory equity.



 

Results by Business

Africa Banking











  

  











  

Income Statement Information

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income net of insurance claims

878 


980 

1,004 

1,016 

1,039 


1,064 

1,043 

1,090 

1,117 

Credit impairment charges and other provisions

(96)


(104)

(101)

(131)

(143)


(164)

(192)

(222)

(117)

Net operating income

782 


876 

903 

885 

896 


900 

851 

868 

1,000 

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(537)


(616)

(605)

(597)

(633)


(605)

(660)

(624)

(695)

UK bank levy


(42)


(34)

Costs to achieve Transform

(9)


(15)

(2)

(9)


Operating expenses

(546)


(673)

(607)

(606)

(633)


(639)

(660)

(624)

(695)

Other net income



12 

Profit before tax

240 


203 

299 

283 

264 


273 

194 

245 

307 

  











  


Results by Business

Investment Bank









  

  


Restatement Adjustments




Restatement Adjustments

  

 

Income Statement Information

2013 (Published)

Group Structure

Head Office Allocation

2013 as

Restated


2012 (Published)

Group Structure

Head Office Allocation

2012 as

Restated

  

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

349 

144

(100)

393


530 

(292)

(29)

209 

Net fee and commission income

3,236 

(4)

3,232


3,029 

(5)

3,024 

Net trading income

6,610 

(1,641)

4,969


7,688 

(1,785)

5,903 

Net investment income

530 

(269)

261


521 

(558)

(37)

Other income

(8)

-

-


(2)

-

5

Total income

10,733 

(1,778)

(100)

8,855 


11,775 

(2,642)

(29)

9,104 

Credit impairment (charges)/releases and other provisions

(220)

242 

22 


(204)

154 

(50)

Net operating income

10,513 

(1,536)

(100)

8,877 


11,571 

(2,488)

(29)

9,054 

  









  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(7,417)

1,259 

(14)

(6,172)


(7,425)

1,074 

(10)

(6,361)

UK bank levy

(333)

97 

(236)


(206)

67 

(139)

Costs to achieve Transform

(262)

72 

-

(190)


Operating expenses

(8,012)

1,331 

83 

(6,598)


(7,631)

1,074 

57 

(6,500)

  









  

Other net income

22 

(22)


50 

(50)

Profit before tax

2,523 

(227)

(17)

2,279 


3,990 

(1,464)

28 

2,554 

Attributable profit

1,548 

(53)

20 

1,515 


2,680 

(1,544)

99 

1,235 

  









  

Balance Sheet Information









  

Loans and advances to banks and customers at amortised cost

£149.3bn

£(44.8bn)


£104.5bn


£151.5bn

£(58.3bn)


£93.2bn

Customer deposits

£86.0bn

£(25.5bn)


£60.5bn


£81.3bn

£(29.7bn)


£51.6bn

Total assets

£895.2bn

£(455.6bn)


£439.6bn


£1,097.7bn

£(697.4bn)


£400.3bn

Risk weighted assets - fully loaded CRD IV

£221.6bn

£(95.6bn)


£126.0bn





  

  









  

Performance Measures









  

Return on average tangible equity

8.5%



9.8%


13.1%



10.1%

Return on average equity

8.2%



9.4%


12.7%



9.6%

Cost: income ratio

75%



75%


65%



71%

Compensation: income ratio

43.2%



44.8%


39.6%



45.7%

Loan loss rate (bps)

14 



(2)


13 



  









  

Analysis of Total Income









  

   Investment Banking  




2,160





2,042  

   Lending4




325





109  

Banking




2,485





2,151  

   Macro




2,580





3,559  

   Credit




1,257





1,402  

   Equities




2,297





2.025  

Markets




6,134





6,986  

Other6




236





(33)  

Total income




8,855 





9,104 

 

1        Attributable profit comprises profit after tax and non-controlling interests.

2       2013 total assets and risk weighted assets reflect a reallocation of liquidity pool assets to other businesses.

3        As part of the restatement, 2013 returns have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions (previously based on CRD III). 2012 returns remain based on CRD III.

4       Lending income includes net interest income, fee income and risk management income or losses relating to the core loan portfolio. While net interest and fee income tends to be broadly stable over time, there is volatility in risk management income or losses.

5        Macro represent Rates, Currencies and Commodities income.  Credit represent Credit and Securitised Products income

6       Other income includes the £259m gain recognised in Q2 2013 in respect of assets not yet received from the 2008 US Lehman acquisition.

 

Results by Business

Investment Bank











  

  











  

Income Statement Information

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

   Investment Banking

513


571

526

488

575


621

461

487

473  

   Lending

103


68

42

141

74


42

(38)

121

(16)  

Banking

616


639

568

629

649


663

423

608

457  

   Macro

552


494

457

689

940


609

841

850

1,259  

   Credit    

346


231

308

239

479


248

356

330

468  

   Equities

591


421

524

750

602


419

490

603

513  

Markets

1,489


1,146

1,289

1,678

2,021


1,276

1,687

1,783

2,240  

Other1    

(2)


(3)

(6)

252

(7)


(8)

(8)

(7)

(10)  

Total income

2,103 


1,782 

1,851 

2,559 

2,663 


1,931 

2,102 

2,384 

2,687 

Credit impairment releases/(charges) and other provisions

19 


(6)

(10)

10 

28 


21 

(24)

(5)

(42)

Net operating income

2,122 


1,776 

1,841 

2,569 

2,691 


1,952 

2,078 

2,379 

2,645 

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(1,501)


(1,606)

(1,373)

(1,429)

(1,764)


(1,360)

(1,489)

(1,583)

(1,929)

UK bank levy


(236)


(139)

Costs to achieve Transform

(130)


(71)

(3)

(116)


Operating expenses

(1,631)


(1,913)

(1,376)

(1,429)

(1,880)


(1,499)

(1,489)

(1,583)

(1,929)

Profit/(loss) before tax

491 


(137)

465 

1,140 

811 


453 

589 

796 

716 

 

1          Other income includes the £259m gain recognised in Q2 2013 in respect of assets not yet received from the 2008 US Lehman acquisition.


Results by Business

Head Office and Other Operations







  

  


Restatement Adjustments




Restatement Adjustments

  

 

Income Statement Information

2013 (Published)

Group Structure

Head Office Allocation Revisions

2013 as

Restated


2012 (Published)

Group Structure

Head Office Allocation Revisions

2012 as

Restated

  

£m

£m

£m

£m


£m

£m

£m

£m

Net interest (expense)/income

(165)

34 

63 

(68)


76 

175 

(161)

90 

Net fee and commission expense

(109)

(8)

(117)


(198)

15 

(183)

Net trading income

35 

136 

-  

171 


117 

-

117 

Net investment income

57 

11 

68 


267 

(43)

224 

Net premiums from insurance contracts

25 

25 


38 

38 

Other income

33 

30 

63 


56 

(1)

55 

Total (expense)/income

(124)

203 

63 

142 


356 

146 

(161)

341 

Credit impairment releases/(charges) and other provisions

1


(6)

(1)

-

(7)

Net operating (expense)/income

(122)

204 

63 

145 


350 

145 

(161)

334 

  









  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(94)

(64)

45 

(113)


(165)

(17)

43 

(139)

UK bank levy

(15)

(14)

(29)


(19)

(8)

(26)

Costs to achieve Transform

(22)

(22)


Operating expenses

(131)

(64)

31 

(164)


(184)

(16)

35 

(165)

  









  

Other net income

(1)

-


23 

(2)

21 

(Loss)/profit before tax

(248)

139 

94 

(15)


189 

127 

(126)

190 

Attributable (loss)/profit

(344)

102 

153 

(89)


(64)

104 

(17)

23 

  









  

Balance Sheet Information









  

Total assets

£26.7bn

£(1.7bn)


£25.0bn


£41.3bn

£105.2bn


£146.5bn

Risk weighted assets - fully loaded

CRD IV

£2.5bn

£5.2bn


£7.7bn





  

 

 

1        Attributable loss/(profit) comprises (loss)/profit after tax and non-controlling interests.

2       2013 total assets and risk weighted assets reflect a reduction in the liquidity pool and a reallocation to businesses of liquidity pool assets previously held centrally.



 

Results by Business

Head Office and Other Operations

 










  

  











  

Income Statement Information

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income/(expense) net of insurance claims

81 


227 

(81)

(24)

20 


(20)

26 

76 

259 

Credit impairment releases/(charges) and other provisions


-

-


(1)

(1)

(3)

(2)

Net operating income/(expense)

81 


230 

(81)

(24)

20 


(21)

25 

73 

257 

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(15)


(47)

(25)

(25)

(16)


(70)

-

(85)

16 

UK bank levy


(29)


(26)

Costs to achieve Transform

(7)


(22)

(5)


Operating expenses

(22)


(98)

(25)

(20)

(21)


(96)

-

(85)

16 

Other net income/(expense)


(1)

(5)


(5)

23 

Profit/(loss) before tax

60 


139 

(107)

(49)


(116)

20 

11 

275 

  











  


Results by Business

Barclays Non-Core


Restatement Adjustments




Restatement Adjustments

  

 

Income Statement Information

Europe RBB 2013 (Published)

Group Structure

Head Office Allocation

2013 as restated


Europe RBB 2012 (Published)

Group Structure

Head Office Allocation

2012 as restated

  

£m

£m

£m

£m


£m

£m

£m

£m

Net interest income

420 

(138) 

25 

307 


428 

167

85 

680 

Net fee and commission income

187 

196 

383 


248 

120 

368 

Net trading income

17 

1,310 

1,327 


1,539 

-

1,546 

Net investment income

78 

224 

302 


52 

568 

620 

Net premiums from insurance contracts

276 

30 

306 


331 

55 

386 

Other (expense)/income

(4)

(4)

(8)


(2) 

-

(1) 

Total income

974 

1,618 

25 

2,617 


1,067 

2,447 

85 

3,599 

Net claims and benefits incurred under insurance contracts

(308)

(16)

(324)


(359)

(33)

(392)

Total income net of insurance claims

666 

1,602 

25 

2,293 


708 

2,414 

85 

3,207 

Credit impairment charges and other provisions

(287)

(613)

(900)


(257)

(705)

(962)

Net operating income

379 

989 

25 

1,393 


451 

1,709 

85 

2,245 

  









  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(813)

(1,323)

(62)

(2,198)


(787)

(1,170)

(51)

(2,008)

UK bank levy

(26)

(83)

(109)


(20)

(62)

(82)

Costs to achieve Transform

(403)

(135)

(538)


Operating expenses

(1,242)

(1,458)

(145)

(2,845)


(807)

(1,170)

(113)

(2,090)

  









  

Other net (expense)/income

(133)

23 

(110)


13 

52 

65 

(Loss)/profit before tax

(996)

(446)

(120)

(1,562)


(343)

591 

(28)

220 

Attributable (loss)

(964)

(713)

(213)

(1,890)


(277)

947 

(155)

515 

  









  

Balance Sheet Information  









  

Loans and advances to banks and customers at amortised cost

£37.4bn

£44.5bn


£81.9bn


£39.5bn

£59.6bn


£99.1bn

Loans and advances to customers at fair value

£17.6bn


£17.6bn


£20.2bn


£20.2bn

Customer deposits

£16.3bn

£13.0bn


£29.3bn


£17.6bn

£14.3bn


£31.9bn

Total assets

£45.0bn

£466.2bn


£511.2bn


£46.1bn

£605.7bn


£651.8bn

Risk weighted assets - fully loaded

CRD IV

£16.2bn

£93.7bn


£109.9bn





  

  









  

Performance Measures









  

Return on average tangible equity




(9.8%)





(1.8%)

Return on average equity




(7.4%)





(1.1%)

Cost: income ratio




124%





65%

Loan loss rate (bps)

75 



107 


64 



93 

 

1        Attributable loss comprises loss after tax and non-controlling interests.

2       As part of the restatement, 2013 total assets and risk weighted assets include an allocation of liquidity pool assets previously held centrally.

3        Return on average equity and average tangible equity represents the dilution for the Group. 2012 returns based on CRD III.



 

Results by Business

Barclays Non-Core











  

  











  

Income Statement Information

Q114


Q413

Q313

Q213

Q113


Q412

Q312

Q212

Q112

  

£m


£m

£m

£m

£m


£m

£m

£m

£m

Total income net of insurance claims

373 


450 

368 

564 

911 


752 

724 

726 

1,005 

Credit impairment charges and other provisions

(67)


(176)

(168)

(367)

(189)


(226)

(177)

(335)

(224)

Net operating income

306 


274 

200 

197 

722 


526 

547 

391 

781 

  











  

Operating expenses (excluding UK bank levy and costs to achieve Transform)

(442)



UK bank levy


(109)


(82)

Costs to achieve Transform

(24)


(103)

(17)

(62)

(356)


Operating expenses

(466)


(876)

(502)

(569)

(898)


(582)

(447)

(532)

(529)

Other net income/(expense)


10 

(135)

11 


21 

10 

25 

(Loss)/profit before tax

(154)


(598)

(292)

(507)

(165)


(35)

109 

(131)

277 

  











  


Appendix I - Performance Management

Restated Returns and Equity by Business

  

Adjusted

 

  

Three Months Ended

Three Months Ended


Year Ended

Year Ended

  

31.03.14

31.03.13


31.12.13

31.12.12

Return on Average Equity

%

%


%

%

Personal and Corporate Banking

11.1 

10.0 


9.7 

11.1 

Barclaycard

18.1 

15.0 


15.5 

18.0 

Africa Banking

11.1 

9.5 


8.1 

7.2 

Investment Bank

6.0 

14.3 


9.4 

9.6 

Barclays Core excluding Head Office

10.1 

12.2 


10.1 

10.9 

Head Office impact

0.5 

2.7 


1.8 

(0.8)

Barclays Core

10.6 

14.9 


11.9 

10.1 

Barclays Non-Core impact

(4.2)

(7.3)


(7.4)

(1.1)

Barclays Group

6.4 

7.6 


4.5 

9.0 

  


  



  

Return on Average Tangible Equity


  



  

Personal and Corporate Banking

14.6 

13.1 


12.7 

15.0 

Barclaycard

22.5 

19.4 


19.9 

23.7 

Africa Banking

15.5 

13.2 


11.3 

10.0 

Investment Bank

6.2 

14.8 


9.8 

10.1 

Barclays Core excluding Head Office

12.2 

14.6 


12.2 

13.4 

Head Office impact

0.9 

4.4 


2.9 

(1.0)

Barclays Core

13.1 

19.0 


15.1 

12.4 

Barclays Non-Core impact

(5.6)

(10.0)


(9.8)

(1.8)

Barclays Group  

7.5 

9.0 


5.3 

10.6 

 

 

1        As part of the restatement, 2013 returns have been revised for the impact of calculating average allocated equity based on estimated fully loaded CRD IV RWAs and capital deductions.  2012 returns remain based on CRD III.

2       Africa Banking equity used for return on equity has been restated to reflect Barclays' share of the statutory equity of the BAGL entity (together with that of the Barclays Egypt and Zimbabwe businesses which remain outside the BAGL corporate entity), as well as Barclays' goodwill on acquisition of these businesses. The tangible equity for return on tangible equity uses the same basis but excludes both Barclays' goodwill on acquisition and the goodwill and intangibles held within the statutory equity.

3        Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents the dilution for Barclays Core and the Group respectively.

 

 

Appendix I - Performance Management

Restated Returns and Equity by Business

  

Adjusted

 

  

Three Months Ended

Three Months Ended


Year ended

Year ended

  

31.03.14

31.03.13


31.12.13

31.12.12

Profit attributable to ordinary equity holders of the parent

£m

£m


£m

£m

Personal and Corporate Banking

480 

427 


1,681 

1,703 

Barclaycard

254 

195 


822 

812 

Africa Banking

103 

114 


356 

347 

Investment Bank

231 

594 


1,515 

1,235 

Head Office

(15)

(15)


(89)

23 

Barclays Core

1,053 

1,315 


4,285 

4,120 

Barclays Non-Core

(171)

(305)


(1,890)

515 

Barclays Group

882 

1,010 


2,395 

4,635 

  


  



  

  

Average Allocated Equity  

 

  

£m

£m


£m

£m

Personal and Corporate Banking

17,385 

17,062 


17,330 

15,353 

Barclaycard

5,620 

5,212 


5,289 

4,505 

Africa Banking

3,699 

4,799 


4,387 

4,855 

Investment Bank

15,553 

16,581 


16,095 

12,832 

Head Office

(2,636)

(8,377)


(7,136)

3,221 

Barclays Core

39,621 

35,277 


35,965 

40,766 

Barclays Non-Core

15,215 

17,532 


17,053 

10,805 

Barclays Group

54,836 

52,809 


53,018 

51,571 

  


  



  

  

Average Allocated Tangible Equity  

 

  

£m

£m


£m

£m

Personal and Corporate Banking

13,125 

12,998 


13,198 

11,381 

Barclaycard

4,511 

4,037 


4,130 

3,421 

Africa Banking

2,662 

3,473 


3,160 

3,465 

Investment Bank

14,889 

15,999 


15,498 

12,241 

Head Office

(3,035)

(8,872)


(7,589)

2,700 

Barclays Core

32,152 

27,635 


28,397 

33,208 

Barclays Non-Core

15,020 

17,255 


16,771 

10,523 

Barclays Group

47,172 

44,890 


45,168 

43,731 

 

1        Includes risk weighted assets and capital deductions in Head Office, plus the residual balance of average ordinary shareholders' equity and tangible ordinary shareholders' equity.

 

Appendix I - Performance Management

Restated Transform Update

 


Quarterly CTA Spend



  

 


Q113

Q213

Q313

Q413

Q114


Total CTA Spend to Date

  


£m

£m

£m

£m

£m


£m

  

Personal and Corporate Banking

(37)

(55)

(73)

(219)

(57)


(441)

  

Barclaycard

(5)

(6)

(38)

(13)


(62)

  

Africa Banking

(9)

(2)

(15)

(9)


(35)

  

Investment Bank

(116)

-

(3)

(71)

(130)


(320)

  

Head Office

(5)

(22)

(7)


(29)

  

Barclays Core

(158)

(64)

(84)

(365)

(216)


(887)

  

Barclays Non-Core

(356)

(62)

(17)

(103)

(24)


(562)

  

Barclays Group

(514)

(126)

(101)

(468)

(240)


(1,449)

  









  

 






  


  






  


  

Q1 2014 Restated Adjusted Performance Measures excluding CTA

  

 


Profit/(Loss) Before Tax


Return on Average Equity

Cost: Income Ratio

  

 


31.03.14

31.03.13



31.03.14

31.03.14

  


£m

£m

% Change


%

%

  

Personal and Corporate Banking

745 

632 

18 


12.1%

60%

  

Barclaycard

381 

280 

36 


18.7%

39%

  

Africa Banking

249 

264 

(6)


11.8%

61%

  

Investment Bank

621 

927 

(33)


8.3%

71%

  

Head Office

66 



0.7%

19%

  

Barclays Core

2,062 

2,109 

(2)


12.2%

60%

  

Barclays Non-Core

(129)

191 



(4.5%)

118%

  

Barclays Group

1,933 

2,300 

(16)


7.7%

63%

  

 






  


  






  


  

2013 and 2012 Restated Adjusted Performance Measures excluding CTA

  

 


Profit/(Loss) Before Tax


Return on Average Equity

Cost: Income Ratio

  

 


31.12.13

31.12.12



31.12.13

31.12.13

  


£m

£m

% Change


%

%

  

Personal and Corporate Banking

2,617 

2,455 


11.3%

63%

  

Barclaycard

1,232 

1,161 


16.2%

44%

  

Africa Banking

1,075 

1,019 


8.5%

62%

  

Investment Bank

2,470 

2,554 

(3)


10.2%

72%

  

Head Office

190 

(97)


2.0%

100%

  

Barclays Core

7,400 

7,379 


13.2%

63%

  

Barclays Non-Core

(1,024)

220 



(7.1%)

101%

  

Barclays Group

6,376 

7,599 

(16)


6.1%

66%

  






  


  

 

 

1        Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents the dilution for Barclays Core and the Group respectively.

 


 

Appendix II - RWAs

 

CRD IV RWAs

Q1 2014

2013 

  

£bn

£bn

Personal and Corporate Banking

116.1 

118.3 

Barclaycard

36.4 

35.7 

Africa Banking

36.6 

38.0 

Investment Bank

126.8 

126.0 

Head Office

7.5 

7.7 

Barclays Core

323.4 

325.7 

Barclays Non-Core

106.0 

109.9 

Barclays Group

429.4 

435.6 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Barclays Q1 2014, 2013 & 2012 Results Restatement - RNS