Barclays plc Interim Results Announcement

Performance Highlights

Barclays delivered return on tangible equity (RoTE) of 11.4% in Q223 and 13.2% in H123, with a half year dividend of 2.7p per share and intends to initiate a share buyback of up to £750m

C. S. Venkatakrishnan, Group Chief Executive, commented“We have positioned Barclays carefully for this mixed macroeconomic environment and delivered a consistent performance in the second quarter. Through our diverse sources of income, prudent risk management, and ongoing cost discipline we have again demonstrated the stability and strength of the franchise we have built over many years. This means we are able to distribute increased capital returns to shareholders, while providing targeted support to our customers and clients. Looking forward we are very confident of meeting our targets for the full year.”
·Q223 RoTE of 11.4% and H123 of 13.2%, with double-digit RoTE across all operating divisions in both periods
·Announced H123 dividend of 2.7p per share and a share buyback of up to £750m
·Strong balance sheet with Common Equity Tier 1 (CET1) ratio of 13.8% and Liquidity Coverage Ratio (LCR) of 158%

Key financial metrics:

IncomeCost: income ratioLLRProfit before taxAttributable profitRoTEEPSTNAV per shareCET1 ratioTotal capital return1
Q223£6.3bn63%37bps£2.0bn£1.3bn11.4%8.6p291p13.8%c.7.5p
H123£13.5bn60%44bps£4.6bn£3.1bn13.2%19.9p

Q223 Performance highlights:

·Group RoTE of 11.4% with profit before tax increased to £2.0bn (Q222: £1.5bn). The prior year includes impacts from the Over-issuance of Securities2; £0.8bn income gain and £1.1bn litigation and conduct charges. Excluding these impacts
 Group income, up 6% year-on-year to £6.3bn, reflects diverse sources of income across Barclays:
Barclays UK income increased 14% to £2.0bn, primarily driven by net interest income growth from higher rates, including continued structural hedge income, partially offset by product dynamics in deposits and mortgages
Corporate and Investment Bank (CIB) income decreased 3% to £3.2bn, reflecting lower client activity in Global Markets and Investment Banking fees, more than offsetting a strong performance in Transaction Banking from higher rates
Consumer, Cards and Payments (CC&P) increased 18% to £1.3bn reflecting higher balances in US cards (including the Gap portfolio3), growth in client assets and liabilities, and higher rates in Private Bank
Group total operating expenses were £4.0bn, up 2% year-on-year, as inflation and business growth were partially offset by efficiency savings and lower litigation and conduct charges
Cost: income ratio was 63% as the Group delivered positive cost: income jaws
·Credit impairment charges were £0.4bn, with a loss loan rate (LLR) of 37bps
·CET1 ratio of 13.8%, based on broadly stable risk weighted assets (RWAs) of £336.9bn, and tangible net asset value (TNAV) per share of 291p

H123 Performance highlights:

·Group RoTE was 13.2%, well positioned to achieve our greater than 10% target for 2023
·Excluding the impact of Over-issuance of Securities in the prior year4:
 Group income of £13.5bn, up 9% year-on-year
Group total operating expenses were £8.1bn, up 5% year-on-year. Cost: income ratio of 60%, consistent with full year guidance of low 60s in 2023
·Credit impairment charges were £0.9bn, reflecting the anticipated normalising of charges, with an LLR of 44bps; maintaining expectation of 50-60bps LLR for 2023
·On a statutory basis:
Group income was £13.5bn, up 2% year-on-year
Group total operating expenses were £8.1bn, down 12% year-on-year
1Includes dividend for H123 of 2.7p per share and share buyback announced in relation to H123 of £750m.
2Denotes the Over-issuance of Securities under Barclays Bank PLC’s US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019. See page 5 for reconciliation of ex. Over-issuance of Securities performance.
3The Gap portfolio refers to the Gap Inc. US credit card portfolio
4H122 impacts from the Over-Issuance of Securities; £0.8bn income gain and £1.5bn litigation and conduct charges.

Group Targets and Outlook:

·Returns: targeting RoTE of greater than 10% in 2023, consistent with our medium-term target  
·Income: diversified income streams continue to position the Group well for the current economic and market environment including higher interest rates. In 2023, Barclays UK Net Interest Margin (NIM) is now expected to be less than 3.20%, with a current view of around 3.15%. Guidance remains sensitive to product dynamics including the trajectory of deposit balances and further macroeconomic developments
·Costs: targeting a cost: income ratio percentage in the low 60s in 2023, investing for growth whilst progressing towards the Group’s medium-term target of below 60%
·Impairment: expect an LLR of 50-60bps in 2023, based on the current macroeconomic outlook
·Capital: expect to operate within the CET1 ratio medium-term target range of 13-14%
·Capital returns: capital distribution policy incorporates a progressive ordinary dividend, supplemented with share buybacks as appropriate
Barclays Group results Half year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
£m£m% Change£m£m% Change
Barclays UK3,9223,373161,9611,72414
Corporate and Investment Bank7,1387,971(10)3,1624,033(22)
Consumer, Cards and Payments2,5841,969311,2781,08318
Barclays International9,7229,940(2)4,4405,116(13)
Head Office(122)(109)(12)(116)(132)12
Total income13,52213,20426,2856,708(6)
Operating costs(8,030)(7,270)(10)(3,919)(3,682)(6)
Litigation and conduct(32)(1,857)98(33)(1,334)98
Total operating expenses(8,062)(9,127)12(3,952)(5,016)21
Other net (expenses)/income(2)(3)3337(57)
Profit before impairment5,4584,074342,3361,69937
Credit impairment charges(896)(341)(372)(200)(86)
Profit before tax4,5623,733221,9641,49931
Tax charge(914)(823)(11)(353)(209)(69)
Profit after tax3,6482,910251,6111,29025
Non-controlling interests(30)(21)(43)(22)(20)(10)
Other equity instrument holders(507)(414)(22)(261)(199)(31)
Attributable profit3,1112,475261,3281,07124
Performance measures
Return on average tangible shareholders’ equity13.2%10.1%11.4%8.7%
Average tangible shareholders’ equity (£bn)47.248.946.749.0
Cost: income ratio60%69%63%75%
Loan loss rate (bps)44173720
Basic earnings per share19.9p14.8p8.6p6.4p
Dividend per share2.7p2.25p
Share buyback announced (£m)750500
Total payout equivalent per sharec.7.5pc.5.25p
Basic weighted average number of shares (m)15,64516,684(6)15,52316,684(7)
Period end number of shares (m)15,55616,531(6)15,55616,531(6)
As at 30.06.23As at 31.12.22As at 30.06.22
Balance sheet and capital management1£bn£bn£bn
Loans and advances at amortised cost401.4398.8395.8
Loans and advances at amortised cost impairment coverage ratio1.4%1.4%1.4%
Total assets1,549.71,513.71,589.2
Deposits at amortised cost554.7545.8568.7
Tangible net asset value per share291p295p297p
Common equity tier 1 ratio13.8%13.9%13.6%
Common equity tier 1 capital46.646.946.7
Risk weighted assets336.9336.5344.5
UK leverage ratio5.1%5.3%5.1%
UK leverage exposure1,183.71,130.01,151.2
Funding and liquidity
Group liquidity pool (£bn)330.7318.0342.5
Liquidity coverage ratio158%165%156%
Net stable funding ratio2139%137%
Loan: deposit ratio72%73%70%
1Refer to pages 54 to 59 for further information on how capital, RWAs and leverage are calculated.
2Represents average of the last four spot quarter end positions

Reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year

Three months ended30.06.2330.06.22
StatutoryStatutoryImpact of the Over-issuance of SecuritiesExcluding impact of the Over-issuance of Securities
£m£m£m£m% Change
Barclays UK1,9611,7241,72414
Corporate and Investment Bank3,1624,0337583,275(3)
Consumer, Cards and Payments1,2781,0831,08318
Barclays International4,4405,1167584,3582
Head Office(116)(132)(132)12
Total income6,2856,7087585,9506
Operating costs(3,919)(3,682)(3,682)(6)
Litigation and conduct(33)(1,334)(1,149)(185)82
Total operating expenses(3,952)(5,016)(1,149)(3,867)(2)
Other net income377(57)
Profit before impairment2,3361,699(391)2,09012
Credit impairment charges(372)(200)(200)(86)
Profit before tax1,9641,499(391)1,8904
Attributable profit1,3281,071(341)1,412(6)
Average tangible shareholders’ equity (£bn)46.749.049.0
Return on average tangible shareholders’ equity11.4%8.7%11.5%
Half year ended30.06.2330.06.22
StatutoryStatutoryImpact of the Over-issuance of SecuritiesExcluding impact of the Over-issuance of Securities
£m£m£m£m% Change
Barclays UK3,9223,3733,37316
Corporate and Investment Bank7,1387,9717587,213(1)
Consumer, Cards and Payments2,5841,9691,96931
Barclays International9,7229,9407589,1826
Head Office(122)(109)(109)(12)
Total income13,52213,20475812,4469
Operating costs(8,030)(7,270)(7,270)(10)
Litigation and conduct(32)(1,857)(1,469)(388)92
Total operating expenses(8,062)(9,127)(1,469)(7,658)(5)
Other net expenses(2)(3)(3)33
Profit before impairment5,4584,074(711)4,78514
Credit impairment charges(896)(341)(341)
Profit before tax4,5623,733(711)4,4443
Attributable profit3,1112,475(581)3,0562
Average tangible shareholders’ equity (£bn)47.248.948.9
Return on average tangible shareholders’ equity13.2%10.1%12.5%

Group Finance Director’s Review

H123 Group performance

·Barclays delivered a profit before tax of £4,562m (H122: £3,733m), RoTE of 13.2% (H122: 10.1%) and earnings per share (EPS) of 19.9p (H122: 14.8p)
·The Group has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and total operating expenses
·Group income increased 2% to £13,522m primarily from the higher interest rate environment, including continued structural hedge income, and the benefit of higher balances in US cards, partially offset by the prior year benefit from hedging arrangements related to the Over-issuance of Securities and lower client activity in Global Markets and Investment Banking fees
·Group total operating expenses decreased to £8,062m (H122: £9,127m)
Group operating expenses excluding litigation and conduct charges increased to £8,030m (H122: £7,270m) reflecting the impact of business growth, including the Gap portfolio acquisition in US cards and the Kensington Mortgage Company (KMC) acquisition in Barclays UK, with the impact of inflation broadly offset by efficiency savings
Litigation and conduct charges decreased to £32m (H122: £1,857m). The prior year charges included £1,469m of costs related to the Over-issuance of Securities
·Credit impairment charges were £896m (H122: £341m), reflecting higher US cards balances and normalising delinquencies. Total coverage ratio remains strong at 1.4% (December 2022: 1.4%)
·The effective tax rate (ETR) was 20.0% (H122: 22.0%). The prior year included the tax charge recognised for the re-measurement of the Group’s UK deferred tax assets as a result of the UK banking surcharge rate being reduced from 8% to 3%
·Attributable profit was £3,111m (H122: £2,475m)
·Total assets increased to £1,549.7bn (December 2022: £1,513.7bn) driven by increased trading and client activity within Global Markets, partially offset by the strengthening of GBP against USD since December 2022. The Group liquidity pool was further strengthened by growth in deposits
·TNAV per share was 291p (December 2022: 295p) as EPS of 19.9p was more than offset by the 2022 full year dividend paid on 31 March 2023 and net negative reserve movements driven by currency movements and the interest rate environment

Capital distributions

·Announced a half year dividend of 2.7p per share and intention to initiate a further share buyback of up to £750m
·Barclays is committed to maintaining a balance between a strong capital position, delivering total cash returns to shareholders and investment in the business. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the Group. The Board will also continue to supplement the ordinary dividend as appropriate, including with share buybacks

Group capital and leverage

·The CET1 ratio decreased by c.10bps to 13.8% (December 2022: 13.9%) as CET1 capital decreased to £46.6bn (December 2022: £46.9bn) whilst RWAs remained broadly stable at £336.9bn:
c.90bps increase from attributable profit generated in the period
c.40bps aggregate decrease from expected capital impacts in Q123, including the £0.5bn share buyback announced at FY22 results, the impact of regulatory change on 1 January 2023 relating to IFRS 9 transitional relief, and the impact of the KMC acquisition
c.30bps decrease as a result of a £8.6bn increase in RWAs primarily driven by increased trading and credit risk RWAs within CIB
c.30bps decrease primarily due to increased regulatory capital deductions largely driven by an accrual for the FY23 dividend
An £8.8bn decrease in RWAs as a result of foreign exchange movements was broadly offset by a £1.2bn decrease in CET1 capital due to a decrease in the currency translation reserve
·The UK leverage ratio decreased to 5.1% (December 2022: 5.3%) primarily due to a £53.7bn increase in leverage exposure to £1,183.7bn (December 2022: £1,130.0bn). This is largely driven by increased trading and client activity within Global Markets

Group funding and liquidity

·The liquidity and funding position remains robust and stable in H123. The liquidity pool increased to £330.7bn (December 2022: £318.0bn) driven by deposit growth. The composition of the liquidity pool is conservative, with 80% held in cash and deposits with central banks and the remainder primarily held in high quality government bonds, materially held at fair value or hedged
·The strength of the funding and liquidity position is supported by a diverse and stable deposit franchise. Total deposits increased to £554.7bn (December 2022: £545.8bn)
·The LCR remained significantly above the 100% regulatory requirement at 158% (December 2022: 165%), equivalent to a surplus of £115.3bn (December 2022: £116.4bn)
·Net Stable Funding Ratio (average of last four quarter ends) was 139% (December 2022: 137%), which represents a £166.6bn (December 2022: £155.6bn) surplus above the 100% regulatory requirement
·Wholesale funding outstanding, excluding repurchase agreements, was £183.3bn (December 2022: £184.0bn)
·The Group issued £7.1bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) in H123. The Group has a strong MREL position with a ratio of 32.9%, which is in excess of the regulatory requirement of 29.2% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer

Other matters

·KMC acquisition: on 1 March 2023 Barclays completed the acquisition of UK specialist mortgage lender KMC, including a portfolio of mortgages totalling £2.2bn with an RWA impact of £0.8bn
·Combination of the Private Bank and Barclays UK Wealth business: on 1 May 2023, Wealth Management & Investments (WM&I) was transferred from Barclays UK to CC&P, creating a combined Private Bank and Wealth Management business. The combination seeks to improve customer and client experience and create business synergies:
The business transferred includes c.£28bn of invested assets, generating annualised income of c.£0.2bn 
Excluding the transfer, Q223 Barclays UK income would have been c.£35m higher, NIM c.2bps higher and operating costs c.£35m higher, with corresponding impacts to income and operating costs for CC&P 

Anna Cross, Group Finance Director

Results by Business

Barclays UKHalf year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Income statement information£m£m% Change£m£m% Change
Net interest income3,2782,732201,6601,39319
Net fee, commission and other income644641301331(9)
Total income3,9223,373161,9611,72414
Operating costs(2,182)(2,083)(5)(1,090)(1,085)
Litigation and conduct3(25)5(16)
Total operating expenses(2,179)(2,108)(3)(1,085)(1,101)1
Other net income
Profit before impairment1,7431,2653887662341
Credit impairment charges(208)(48)(95)
Profit before tax1,5351,2172678162325
Attributable profit1,0498542353445817
Performance measures
Return on average allocated tangible equity20.4%17.0%20.9%18.4%
Average allocated tangible equity (£bn)10.310.010.210.0
Cost: income ratio56%62%55%64%
Loan loss rate (bps)18417
Net interest margin3.20%2.67%3.22%2.71%
Key facts
UK mortgage balances (£bn)163.6159.6
Mortgage gross lending flow (£bn)12.213.9
Average loan to value of mortgage portfolio153%51%
Average loan to value of new mortgage lending163%69%
Number of branches414593
Mobile banking active customers (m)10.810.1
30 day arrears rate – Barclaycard Consumer UK0.9%1.0%
As at 30.06.23As at 31.12.22As at 30.06.22
Balance sheet information£bn£bn£bn
Loans and advances to customers at amortised cost206.8205.1205.9
Total assets304.8313.2318.8
Customer deposits at amortised cost249.8258.0261.5
Loan: deposit ratio90%87%85%
Risk weighted assets73.073.172.2
Period end allocated tangible equity10.110.19.9
1Average loan to value of mortgages is balance weighted and reflects both residential and buy-to-let mortgage portfolios within the Home Loans portfolio.
Analysis of Barclays UKHalf year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Analysis of total income£m£m% Change£m£m% Change
Personal Banking2,4972,099191,2441,07716
Barclaycard Consumer UK484541(11)237265(11)
Business Banking9417332848038226
Total income3,9223,373161,9611,72414
Analysis of credit impairment (charges)/releases
Personal Banking(120)(21)(92)(42)
Barclaycard Consumer UK(118)40(35)84
Business Banking30(67)32(42)
Total credit impairment charges(208)(48) (95)
As at 30.06.23As at 31.12.22As at 30.06.22
Analysis of loans and advances to customers at amortised cost£bn£bn£bn
Personal Banking173.3169.7167.1
Barclaycard Consumer UK9.39.28.8
Business Banking24.226.230.0
Total loans and advances to customers at amortised cost206.8205.1205.9
Analysis of customer deposits at amortised cost
Personal Banking191.1195.6197.0
Barclaycard Consumer UK
Business Banking58.762.464.5
Total customer deposits at amortised cost249.8258.0261.5

Barclays UK delivered a RoTE of 20.4% supported by the higher interest rate environment and the continued investment in our transformation into a next-generation, digitised consumer bank. The challenging environment has persisted with customer behaviour driving a reduction in the NIM outlook.

Income statement – H123 compared to H122

·Profit before tax increased 26% to £1,535m with a RoTE of 20.4% (H122: 17.0%)
·Total income increased 16% to £3,922m. Net interest income increased 20% to £3,278m with a NIM of 3.20% (H122: 2.67%), as higher interest rates and associated structural hedge benefit outweighed mortgage margin pressure and lower deposit volumes. Net fee, commission and other income was stable at £644m, including the impact of the transfer of WM&I to CC&P
Personal Banking income increased 19% to £2,497m, driven by higher interest rates, partially offset by mortgage margin compression and lower current accounts deposit volumes in line with wider market trends and cost of living pressures 
Barclaycard Consumer UK income decreased 11% to £484m as higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management 
Business Banking income increased 28% to £941m driven by higher interest rates, partially offset by lower government scheme lending as repayments continue and lower deposit volumes in line with wider market trends 
·Total operating expenses increased 3% to £2,179m from the impact of inflation, partially offset by the transfer of WM&I to CC&P. Ongoing efficiency savings continue to be reinvested in digitisation to support further improvements to the cost: income ratio over time
·Credit impairment charges increased to £208m (H122: £48m), driven by UK cards and Mortgages. The updated macroeconomic scenarios reflect improvement in GDP and unemployment outlook against a backdrop of higher interest rates and a weaker House Price Index (HPI). UK cards 30 and 90 day arrears remained low at 0.9% (H122: 1.0%) and 0.2% (H122: 0.2%) respectively. The UK cards total coverage ratio was 7.1% (December 2022: 7.6%)

Balance sheet – 30 June 2023 compared to 31 December 2022

·Loans and advances to customers at amortised cost increased 1% to £206.8bn primarily reflecting the acquisition of KMC and continued mortgage lending, which more than offset repayment of government scheme lending in Business Banking
·Customer deposits at amortised cost decreased 3% to £249.8bn. Increases in savings product balances were more than offset by reduced current account and Business Banking deposits, reflecting broader market trends. The loan: deposit ratio increased to 90% (December 2022: 87%)
·RWAs were broadly stable at £73.0bn (December 2022: £73.1bn) including a capital Loss Given Default (LGD) model update for the mortgages portfolio, partially offset by the acquisition of KMC
Barclays InternationalHalf year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Income statement information£m£m% Change£m£m% Change
Net interest income3,0841,965571,7301,02968
Net trading income3,6975,212(29)1,2782,766(54)
Net fee, commission and other income2,9412,76361,4321,3218
Total income9,7229,940(2)4,4405,116(13)
Operating costs(5,703)(5,042)(13)(2,747)(2,537)(8)
Litigation and conduct(30)(1,832)98(33)(1,319)97
Total operating expenses(5,733)(6,874)17(2,780)(3,856)28
Other net income913(31)6520
Profit before impairment3,9983,079301,6661,26532
Credit impairment charges(679)(310)(275)(209)(32)
Profit before tax3,3192,769201,3911,05632
Attributable profit2,3012,0831095378322
Performance measures
Return on average allocated tangible equity12.4%11.5%10.3%8.4%
Average allocated tangible equity (£bn)37.136.237.137.3
Cost: income ratio59%69%63%75%
Loan loss rate (bps)78376349
Net interest margin15.86%4.29%5.85%4.41%
As at 30.06.23As at 31.12.22As at 30.06.22
Balance sheet information£bn£bn£bn
Loans and advances to customers at amortised cost126.6133.7126.7
Loans and advances to banks at amortised cost9.78.711.3
Debt securities at amortised cost35.227.229.3
Loans and advances at amortised cost171.5169.6167.3
Trading portfolio assets165.1133.8126.9
Derivative financial instrument assets264.9301.7343.5
Financial assets at fair value through the income statement232.2210.5209.3
Cash collateral and settlement balances123.9107.7128.5
Other assets268.8258.0275.1
Total assets1,226.41,181.31,250.6
Deposits at amortised cost305.0287.6307.4
Derivative financial instrument liabilities254.5288.9321.2
Loan: deposit ratio56%59 %54 %
Risk weighted assets254.6254.8263.8
Period end allocated tangible equity36.736.838.0
1CIB and Barclays International margins include the lending related investment bank business.
Analysis of Barclays International
Corporate and Investment BankHalf year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Income statement information£m£m% Change£m£m% Change
Net interest income1,32179566856410
Net trading income3,7905,188(27)1,3532,738(51)
Net fee, commission and other income2,0271,98829538858
Total income7,1387,971(10)3,1624,033(22)
Operating costs(4,186)(3,791)(10)(1,984)(1,870)(6)
Litigation and conduct2(1,632)(1)(1,314)100
Total operating expenses(4,184)(5,423)23(1,985)(3,184)38
Other net income11
Profit before impairment2,9552,548161,17884939
Credit impairment (charges)/releases(20)(32)3813(65)
Profit before tax2,9352,516171,19178452
Attributable profit2,0071,895679857938
Performance measures
Return on average allocated tangible equity12.6%11.9%10.0%7.1%
Average allocated tangible equity (£bn)31.831.831.832.7
Cost: income ratio59%68%63%79%
Loan loss rate (bps)35(4)20
As at 30.06.23As at 31.12.22As at 30.06.22
Balance sheet information£bn£bn£bn
Loans and advances to customers at amortised cost84.890.586.5
Loans and advances to banks at amortised cost9.08.110.0
Debt securities at amortised cost35.127.229.3
Loans and advances at amortised cost128.9125.8125.8
Trading portfolio assets165.0133.7126.7
Derivative financial instrument assets264.8301.6343.4
Financial assets at fair value through the income statement232.1210.5209.2
Cash collateral and settlement balances122.5106.9127.7
Other assets224.6222.6237.2
Total assets1,137.91,101.11,170.0
Deposits at amortised cost225.5205.8229.5
Derivative financial instrument liabilities254.5288.9321.2
Risk weighted assets216.5215.9227.6
Half year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Analysis of total income£m£m% Change£m£m% Change
FICC2,9743,173(6)1,1861,529(22)
Equities1,2672,463(49)5631,411(60)
Global Markets4,2415,636(25)1,7492,940(41)
Advisory342421(19)130236(45)
Equity capital markets1198442693786
Debt capital markets614697(12)273281(3)
Investment Banking fees1,0751,202(11)472554(15)
Corporate lending26378168(47)
Transaction banking1,5591,0554877358632
Corporate1,8221,1336194153975
Total income7,1387,971(10)3,1624,033(22)
Analysis of Barclays International
Consumer, Cards and PaymentsHalf year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Income statement information£m£m% Change£m£m% Change
Net interest income1,7631,1705187461941
Net fee, commission, trading and other income8217993404464(13)
Total income2,5841,969311,2781,08318
Operating costs(1,517)(1,251)(21)(763)(667)(14)
Litigation and conduct(32)(200)84(32)(5)
Total operating expenses(1,549)(1,451)(7)(795)(672)(18)
Other net income813(38)55
Profit before impairment1,0435319648841617
Credit impairment charges(659)(278)(288)(144)
Profit before tax38425352200272(26)
Attributable profit29418856155204(24)
Performance measures
Return on average allocated tangible equity11.1%8.5%11.8%17.8%
Average allocated tangible equity (£bn)5.34.45.34.6
Cost: income ratio60%74%62%62%
Loan loss rate (bps)293128255132
Key facts
US cards 30 day arrears rate2.4%1.4%
US cards customer FICO score distribution
<66011%10%
>66089%90%
Total number of payments clients401k391k
Value of payments processed (£bn)1,2161150
As at 30.06.23As at 31.12.22As at 30.06.22
Balance sheet information£bn£bn£bn
Loans and advances to customers at amortised cost41.743.240.2
Total assets88.580.280.6
Deposits at amortised cost79.581.877.9
Risk weighted assets38.138.936.2
Half year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Analysis of total income£m£m% Change£m£m% Change
International Cards and Consumer Bank1,7341,2294183569121
Private Bank5544592129524520
Payments29628151481471
Total income2,5841,969311,2781,08318
1Includes £155bn (H122: £145bn) of merchant acquiring payments.
2The H122 comparative has been restated to reflect only the turnover of the Payments business to be consistent with H123

Barclays International delivered a RoTE of 12.4%. Despite the reduced banking industry fee pool and lower client activity in Global Markets, CIB delivered a RoTE of 12.6% reflecting the benefits of income diversification and investment in sustainable growth. CC&P RoTE of 11.1% reflected continued investment in the business resulting in balance growth and increased income, partially offset by higher impairment charges.

Income statement – H123 compared to H122

·Profit before tax increased 20% to £3,319m with a RoTE of 12.4% (H122: 11.5%), reflecting a RoTE of 12.6% (H122: 11.9%) in CIB and 11.1% (H122: 8.5%) in CC&P
·Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits, and adversely impacted credit impairment charges and total operating expenses
·Total income decreased to £9,722m (H122: £9,940m)
CIB income decreased 10% to £7,138m. Excluding the impact from prior year hedging arrangements related to the Over-issuance of Securities1, CIB income decreased 1%
Global Markets income of £4,241m decreased 25%, and 13% excluding the impact from prior year hedging arrangements related to the Over-issuance of Securities. FICC income decreased 6% to £2,974m, driven by macro reflecting lower market volatility and client activity, partially offset by a strong performance in credit. Equities income of £1,267m decreased 49%, and 26% excluding the impact from the Over-issuance of Securities driven by a decline in derivatives income reflecting less volatile equity market conditions
Investment Banking fees decreased 11% to £1,075m due to the reduced fee pool across Advisory and Debt capital markets2, partially offset by an improvement in Equity capital markets
Within Corporate, Transaction banking income increased 48% to £1,559m driven by improved deposit margins in the higher rate environment. Corporate lending income increased to £263m (H122: £78m) mainly driven by lower costs of hedging and the non-repeat of fair value losses on leverage finance lending net of mark to market gains on related hedges in H122
CC&P income increased 31% to £2,584m
International Cards and Consumer Bank income increased 41% to £1,734m reflecting higher cards balances and improved margins, including the Gap portfolio acquisition in Q222
Private Bank income increased 21% to £554m, reflecting client balance growth and improved margins, including the transfer of WM&I from Barclays UK
Payments income increased 5% to £296m driven by merchant acquiring turnover growth
·Total operating expenses decreased 17% to £5,733m and increased 13% to £5,703m excluding litigation and conduct, reflecting investment in the business
CIB total operating expenses decreased 23% to £4,184m. Operating expenses excluding litigation and conduct charges increased 10% to £4,186m reflecting investment in talent and technology, and the impact of inflation
CC&P total operating expenses increased 7% to £1,549m. Operating expenses excluding litigation and conduct charges increased 21% to £1,517m, driven by higher investment spend to support growth, mainly in marketing and partnership costs, including the Gap portfolio acquisition, the transfer of WM&I from Barclays UK and the impact of inflation
·Credit impairment charges were £679m (H122: £310m)
CIB credit impairment charges of £20m (H122: £32m) were driven by single name charges partially offset by the benefit of credit protection and the updated macroeconomic scenarios
CC&P credit impairment charges increased to £659m (H122: £278m), reflecting higher US cards balances, including the Gap portfolio, and normalising delinquencies. US cards 30 and 90 day arrears were 2.4% (H122: 1.4%) and 1.2% (H122: 0.7%) respectively. The US cards total coverage ratio was 9.0% (December 2022: 8.1%)
1H122 included a £758m of income related to hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities.
2Data source: Dealogic for the period covering 1 January to 30 June 2023.

Balance sheet – 30 June 2023 compared to 31 December 2022

·Loans and advances at amortised cost increased £1.9bn to £171.5bn driven by increased investment in debt securities in Treasury, offset by net loan repayments in CIB and the strengthening of GBP against USD
·Trading portfolio assets increased £31.3bn to £165.1bn driven by increased trading activity at the end of the period within Global Markets
·Derivative assets and liabilities decreased £36.8bn and £34.4bn respectively to £264.9bn and £254.5bn reflecting lower market volatility and the strengthening of GBP against USD
·Financial assets at fair value through the income statement increased £21.7bn to £232.2bn driven by increased secured lending
·Deposits at amortised costs increased £17.4bn to £305.0bn driven by increased deposits in Treasury
·RWAs decreased to £254.6bn (December 2022: £254.8bn), as a reduction from the strengthening of GBP against USD was partially offset by increased trading and credit risk RWAs within CIB
Head OfficeHalf year endedThree months ended
30.06.2330.06.2230.06.2330.06.22
Income statement information£m£m% Change£m£m% Change
Net interest income(39)66(120)
Net fee, commission and other income(83)(175)534(132)
Total income(122)(109)(12)(116)(132)12
Operating costs(145)(145)(82)(60)(37)
Litigation and conduct(5)(5)1
Total operating expenses(150)(145)(3)(87)(59)(47)
Other net (expenses)/income(11)(16)31(3)2
Loss before impairment(283)(270)(5)(206)(189)(9)
Credit impairment (charges)/releases(9)17(2)9
Loss before tax(292)(253)(15)(208)(180)(16)
Attributable loss(239)(462)48(159)(170)6
Performance measures
Average allocated tangible equity (£bn)(0.2)2.7(0.6)1.7
As at 30.06.23As at 31.12.22As at 30.06.22
Balance sheet information£bn£bn£bn
Total assets18.519.219.8
Risk weighted assets9.38.68.6
Period end allocated tangible equity(1.5)(0.2)1.1

Income statement – H123 compared to H122

·Loss before tax was £292m (H122: £253m)
·Total income was an expense of £122m (H122: £109m expense) primarily reflecting hedge accounting and treasury items. The prior year included a one-off gain of £86m from the sale and leaseback of UK data centres
·Total operating expenses were £150m (H122: £145m)

Balance sheet – 30 June 2023 compared to 31 December 2022

·RWAs were £9.3bn (December 2022: £8.6bn)

Quarterly Results Summary

Barclays Group
Q223Q123Q422Q322Q222Q122Q4211Q3211
Income statement information£m£m£m£m£m£m£m£m
Net interest income3,2703,0532,7413,0682,4222,3412,2301,940
Net fee, commission and other income3,0154,1843,0602,8834,2864,1552,9303,525
Total income6,2857,2375,8015,9516,7086,4965,1605,465
Operating costs(3,919)(4,111)(3,748)(3,939)(3,682)(3,588)(3,514)(3,446)
UK bank levy(176)(170)
Litigation and conduct(33)1(79)339(1,334)(523)(92)(129)
Total operating expenses(3,952)(4,110)(4,003)(3,600)(5,016)(4,111)(3,776)(3,575)
Other net income/(expenses)3(5)10(1)7(10)1394
Profit before impairment2,3363,1221,8082,3501,6992,3751,3971,984
Credit impairment (charges)/releases(372)(524)(498)(381)(200)(141)31(120)
Profit before tax1,9642,5981,3101,9691,4992,2341,4281,864
Tax (charge)/credit(353)(561)33(249)(209)(614)(104)(292)
Profit after tax1,6112,0371,3431,7201,2901,6201,3241,572
Non-controlling interests(22)(8)(22)(2)(20)(1)(27)(1)
Other equity instrument holders(261)(246)(285)(206)(199)(215)(218)(197)
Attributable profit1,3281,7831,0361,5121,0711,4041,0791,374
Performance measures
Return on average tangible shareholders’ equity11.4%15.0%8.9%12.5%8.7%11.5%9.0%11.4%
Average tangible shareholders’ equity (£bn)46.747.646.748.649.048.848.048.3
Cost: income ratio63%57%69%60%75%63%73%65%
Loan loss rate (bps)375249362015(3)13
Basic earnings per share8.6p11.3p6.5p9.4p6.4p8.4p6.4p8.0p
Basic weighted average number of shares (m)15,52315,77015,82816,14816,68416,68216,98517,062
Period end number of shares (m)15,55615,70115,87115,88816,53116,76216,75216,851
Balance sheet and capital management2£bn£bn£bn£bn£bn£bn£bn£bn
Loans and advances to customers at amortised cost337.4343.6343.3346.3337.2325.8319.9313.5
Loans and advances to banks at amortised cost10.911.010.012.512.511.49.710.6
Debt securities at amortised cost53.148.945.554.846.134.531.828.9
Loans and advances at amortised cost401.4403.5398.8413.7395.8371.7361.5353.0
Loans and advances at amortised cost impairment coverage ratio1.4%1.4%1.4%1.4%1.4%1.5%1.6%1.7%
Total assets1,549.71,539.11,513.71,726.91,589.21,496.11,384.31,406.5
Deposits at amortised cost554.7555.7545.8574.4568.7546.5519.4510.2
Tangible net asset value per share291p301p295p286p297p294p291p286p
Common equity tier 1 ratio13.8%13.6%13.9%13.8%13.6%13.8%15.1%15.3%
Common equity tier 1 capital46.646.046.948.646.745.347.347.2
Risk weighted assets336.9338.4336.5350.8344.5328.8314.1307.7
UK leverage ratio5.1%5.1%5.3%5.0%5.1%5.0%5.2%5.1%
UK leverage exposure1,183.71,168.91,130.01,232.11,151.21,123.51,137.91,162.7
Funding and liquidity
Group liquidity pool (£bn)330.7333.0318.0325.8342.5319.8291.0292.8
Liquidity coverage ratio158%163%165%151%156%159%168%161%
Net stable funding ratio3139%139%137%
Loan: deposit ratio72%73%73%72%70%68%70%69%
1The comparative capital and financial metrics relating to Q321 and Q421 have been restated to reflect the impact of the Over-issuance of Securities.
2Refer to pages 54 to 59 for further information on how capital, RWAs and leverage are calculated.
3.Represents average of the last four spot quarter end positions

Quarterly Results by Business

Barclays UK
Q223Q123Q422Q322Q222Q122Q421Q321
Income statement information£m£m£m£m£m£m£m£m
Net interest income1,6601,6181,6001,5611,3931,3391,3131,303
Net fee, commission and other income301343370355331310386335
Total income1,9611,9611,9701,9161,7241,6491,6991,638
Operating costs(1,090)(1,092)(1,108)(1,069)(1,085)(998)(1,202)(1,041)
UK bank levy(26)(36)
Litigation and conduct5(2)(13)(3)(16)(9)(5)(10)
Total operating expenses(1,085)(1,094)(1,147)(1,072)(1,101)(1,007)(1,243)(1,051)
Other net income/(expenses)1(1)(1)1
Profit before impairment876867824843623642455588
Credit impairment (charges)/releases(95)(113)(157)(81)(48)59(137)
Profit before tax 781754667762623594514451
Attributable profit534515474549458396420317
Balance sheet information£bn£bn£bn£bn£bn£bn£bn£bn
Loans and advances to customers at amortised cost206.8208.2205.1205.1205.9207.3208.8208.6
Total assets304.8308.6313.2316.8318.8317.2321.2312.1
Customer deposits at amortised cost249.8254.3258.0261.0261.5260.3260.6256.8
Loan: deposit ratio90%90 %87 %86%85%85%85 %86 %
Risk weighted assets73.074.673.173.272.272.772.373.2
Period end allocated tangible equity10.110.310.110.19.910.110.010.0
Performance measures
Return on average allocated tangible equity20.9%20.0 %18.7 %22.1%18.4%15.6%16.8 %12.7 %
Average allocated tangible equity (£bn)10.210.310.29.910.010.110.010.0
Cost: income ratio55%56 %58 %56%64%61%73 %64 %
Loan loss rate (bps)172027149(10)24
Net interest margin3.22%3.18 %3.10 %3.01 %2.71%2.62%2.49 %2.49 %
Analysis of Barclays UKQ223Q123Q422Q322Q222Q122Q421Q321
Analysis of total income£m£m£m£m£m£m£m£m
Personal Banking1,2441,2531,2291,2121,0771,022983990
Barclaycard Consumer UK237247269283265276352293
Business Banking480461472421382351364355
Total income1,9611,9611,9701,9161,7241,6491,6991,638
Analysis of credit impairment (charges)/releases
Personal Banking(92)(28)(120)(26)(42)218(30)
Barclaycard Consumer UK(35)(83)(12)284(44)114(108)
Business Banking32(2)(25)(57)(42)(25)(63)1
Total credit impairment (charges)/releases(95)(113)(157)(81)(48)59(137)
Analysis of loans and advances to customers at amortised cost£bn£bn£bn£bn£bn£bn£bn£bn
Personal Banking173.3173.6169.7168.7167.1166.5165.4164.6
Barclaycard Consumer UK9.39.09.29.08.88.48.78.6
Business Banking24.225.626.227.430.032.434.735.4
Total loans and advances to customers at amortised cost206.8208.2205.1205.1205.9207.3208.8208.6
Analysis of customer deposits at amortised cost
Personal Banking191.1194.3195.6197.3197.0196.6196.4193.3
Barclaycard Consumer UK
Business Banking58.760.062.463.764.563.764.263.5
Total customer deposits at amortised cost249.8254.3258.0261.0261.5260.3260.6256.8
Barclays International
Q223Q123Q422Q322Q222Q122Q4211Q3211
Income statement information£m£m£m£m£m£m£m£m
Net interest income1,7301,3541,4651,4971,029936955749
Net trading income1,2782,4191,1691,3282,7662,4467891,515
Net fee, commission and other income1,4321,5091,2281,2401,3211,4421,7661,673
Total income4,4405,2823,8624,0655,1164,8243,5103,937
Operating costs(2,747)(2,956)(2,543)(2,776)(2,537)(2,505)(2,160)(2,310)
UK bank levy(133)(134)
Litigation and conduct(33)3(67)396(1,319)(513)(84)(100)
Total operating expenses(2,780)(2,953)(2,743)(2,380)(3,856)(3,018)(2,378)(2,410)
Other net income6351058315
Profit before impairment1,6662,3321,1241,6951,2651,8141,1351,542
Credit impairment (charges)/releases(275)(404)(328)(295)(209)(101)(23)18
Profit before tax1,3911,9287961,4001,0561,7131,1121,560
Attributable profit9531,3486251,1367831,3008181,191
Balance sheet information£bn£bn£bn£bn£bn£bn£bn£bn
Loans and advances to customers at amortised cost126.6131.0133.7137.0126.7113.9106.499.9
Loans and advances to banks at amortised cost9.79.88.711.011.310.28.49.4
Debt securities at amortised cost35.230.827.236.229.320.719.016.6
Loans and advances at amortised cost171.5171.6169.6184.2167.3144.8133.8125.9
Trading portfolio assets165.1137.7133.8126.3126.9134.1146.9144.8
Derivative financial instrument assets264.9256.6301.7415.7343.5288.8261.5257.0
Financial assets at fair value through the income statement232.2245.0210.5244.7209.3203.8188.2200.5
Cash collateral and settlement balances123.9125.5107.7163.3128.5132.088.1115.9
Other assets268.8275.0258.0257.2275.1255.5225.6231.8
Total assets1,226.41,211.41,181.31,391.41,250.61,159.01,044.11,075.9
Deposits at amortised cost305.0301.6287.6313.2307.4286.1258.8253.3
Derivative financial instrument liabilities254.5246.7288.9394.2321.2277.2256.4252.3
Loan: deposit ratio56%57%59%59%54%51%52%50%
Risk weighted assets254.6255.1254.8269.3263.8245.1230.9222.7
Period end allocated tangible equity36.736.836.838.838.035.633.231.8
Performance measures
Return on average allocated tangible equity10.3%14.5%6.4%11.6%8.4%14.8%9.9%14.9%
Average allocated tangible equity (£bn)37.137.138.939.137.335.132.931.8
Cost: income ratio63%56%71%59%75%63%68%61%
Loan loss rate (bps)6394756249287(6)
Net interest margin25.85%5.87%5.71%5.58%4.41%4.15%4.14%4.02%
1The comparative capital and financial metrics relating to Q321 and Q421 have been restated to reflect the impact of the Over-issuance of Securities.
2CIB and Barclays International margins include the lending related investment bank business.
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