barc201410306k.htm
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
October 30, 2014
 
Barclays PLC and

Barclays Bank PLC
(Names of Registrants)
 
 
 1 Churchill Place

London E14 5HP
England
(Address of Principal Executive Offices)

 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

 
Form 20-F x           Form 40-F

 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 
Yes           No x

 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):

 
This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays
Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is
owned by Barclays PLC.

 
This Report comprises:

 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.


 
 
EXHIBIT INDEX




 

 Interim Management Statement - dated 30 October 2014
 
 
 
 




SIGNATURES

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
BARCLAYS PLC
(Registrant)

 
Date: October 30, 2014
 
 
By: /s/ Marie Smith
----------------------
Marie Smith
Assistant Secretary
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: October 30, 2014
 
By: /s/ Marie Smith
----------------------
Marie Smith
Assistant Secretary


 

 
Barclays PLC
Interim Management Statement
30 September 2014

Table of Contents
 
Interim Management Statement
Page
Performance Highlights
4-6
Group Performance Review
7-9
Results by Business
  
· Personal and Corporate Banking
10
· Barclaycard
11
· Africa Banking
12
· Investment Bank
13-14
· Head Office
15
· Barclays Non-Core
16-17
Appendix I - Quarterly Results Summary
18-19
Appendix II - Performance Management
  
· Returns and Equity by Business
20-21
· Margins and Balances
22
Appendix III - Consolidated Summary Income Statement, Balance Sheet and Statement of Changes in Equity
23-25
Appendix IV - Capital
26-27
Appendix V - Leverage
28
Appendix VI - Credit Risk
29
Appendix VII - Other Information
30
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839
 
Notes
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months to 30 September 2014 to the corresponding nine months of 2013 and balance sheet analysis as at 30 September with comparatives relating to 30 June 2014. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; and the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively. The comparatives have been restated to reflect the implementation of the Group structure changes and the reallocation of elements of the Head Office results under the revised business structure. These restatements were detailed in our announcement on 10 July 2014, accessible at http://www.barclays.com/barclays-investor-relations/results-and-reports.
 
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 but not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; provisions for Payment Protection Insurance and claims management costs (PPI) and interest rate hedging redress; gain on US Lehman acquisition assets; provision for ongoing investigations into Foreign Exchange; loss on announced sale of the Spanish business; and goodwill impairment. As management reviews adjusting items at a Group level, results by business are presented excluding these items. The reconciliation of adjusted to statutory performance is done at a Group level only.
 
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, which was approved by the Board of Directors on 29 October 2014 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 US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
 
These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished to the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website www.barclays.com/investorrelations and from the SEC's website at http://www.sec.gov.
 
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 Group's 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 impact of EU and US sanctions on Russia; 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 SEC including our Annual Report on Form 20-F for the fiscal year ended 31 December 2013, 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 SEC.
Performance Highlights
 
Chief Executive's Statement
 
"These results, with a 5% increase in profits before tax, show further steady progress towards our Transform financial commitments for 2016, and demonstrate how our strategic decision to rebalance Barclays has created greater resilience in the Group. Our Core businesses - the future of Barclays - have delivered an ROE of 10.5%, driven by our powerhouse Personal and Corporate Banking business and continued strong growth in Barclaycard. The strength of our Africa Banking franchise is clearly visible despite currency headwinds. The Investment Bank's performance in the quarter was disappointing, but we have been able to offset that within the rebalanced Group and still deliver good Core performance. We have strengthened capital and leverage, net tangible asset value per share is up, and we continue to drive costs lower. Equity is being released from our Non-Core as RWAs come down, and we saw good progress in business disposals such as the sale of the Spanish business. In aggregate, this is a good performance from the Group, our strategy is working, and we expect to see continued progress as we go forward."
 
Antony Jenkins, Group Chief Executive
 
 
Progress on Transform: Higher Group adjusted PBT, driven by positive cost to income jaws across the majority of the Core business and continued Non-Core run down resulting in improved Group capital and leverage ratios
 
· Group adjusted profit before tax increased 5% to £4,939m with Core adjusted profit before tax broadly stable at £5,587m (2013: £5,682m) and an improvement in Non-Core loss before tax of 33% to £648m
 
· Total adjusted operating expenses decreased7% to £13,186m, with a reduction in headcount of 7,800 since September 2013
 
· Fully loaded Common Equity Tier 1 (CET1) ratio increased to 10.2% (June 2014: 9.9%) and the estimated BCBS leverage ratio increased to 3.5% (June 2014: 3.4%). Subject to completion, the announced Spanish business sale would result in an increase in the CRD IV fully loaded CET1 ratio to 10.4% as at 30 September 2014
 
· Net tangible asset value per share increased 8p from June 2014 to 287p
 
Other notable items:
 
· A £461m gain on US Lehman acquisition assets has been recognised as an adjusting item. 2013 adjusted profit before tax has been restated to exclude the Q213 £259m gain for comparability
 
· A £500m provision has been recognised relating to ongoing investigations into Foreign Exchange with certain regulatory authorities
 
· Provision release of £160m for interest rate hedging redress, for which outcomes have been communicated to 99% of customers covered by the redress exercise
 
· Additional PPI redress provision of £170m based on an updated current best estimate of future redress and associated costs
 
· Loss on the announced sale of the Spanish business of £364m
 
Performance Highlights
 
Barclays Unaudited Results
Adjusted
  
Statutory
for the Nine Months Ended
30.09.14
30.09.131
    
30.09.14
30.09.13
  
 
£m
£m
% Change
  
£m
£m
% Change
Total income net of insurance claims
19,710
21,257
(7)
  
20,267
21,391
(5)
Credit impairment charges and other provisions
(1,595)
(2,353)
32
  
(1,595)
(2,353)
32
Net operating income
18,115
18,904
(4)
  
18,672
19,038
(2)
Operating expenses
(12,051)
(13,239)
9
  
(12,051)
(13,239)
9
Litigation and conduct
(309)
(164)
(88)
  
(1,719)
(2,164)
21
Operating expenses excluding costs to achieve Transform
(12,360)
(13,403)
8
  
(13,770)
(15,403)
11
Costs to achieve Transform
(826)
(741)
(11)
  
(826)
(741)
(11)
Total operating expenses
(13,186)
(14,144)
7
  
(14,596)
(16,144)
10
Loss on announced sale of the Spanish business2
-
-
    
(364)
-
  
Other net income/(expenses)
10
(43)
    
10
(43)
  
Profit before tax
4,939
4,717
5
  
3,722
2,851
31
Tax charge
(1,630)
(1,505)
(8)
  
(1,496)
(1,040)
(44)
Profit after tax
3,309
3,212
3
  
2,226
1,811
23
Non-controlling interests
(551)
(629)
12
  
(551)
(629)
12
Other equity interests3
(170)
-
    
(170)
-
  
Attributable profit
2,588
2,583
-
  
1,505
1,182
27
               
Performance Measures
              
Return on average tangible shareholders' equity3
7.4%
7.7%
    
4.4%
3.6%
  
Return on average shareholders' equity3
6.3%
6.6%
    
3.8%
3.1%
  
Cost: income ratio
67%
67%
    
72%
75%
  
Loan loss rate (bps)
43
64
    
43
64
  
               
Basic earnings per share3
16.1p
19.0p
    
9.4p
8.7p
  
Dividend per share
3.0p
3.0p
    
3.0p
3.0p
  
               
         
Balance Sheet and Leverage
        
30.09.14
30.06.14
  
Net tangible asset value per share
        
287p
279p
  
Net asset value per share
        
336p
327p
  
Estimated BCBS 270 leverage exposure
        
£1,324bn
£1,353bn
  
               
Capital Management
        
30.09.14
30.06.14
  
CRD IV fully loaded
              
Common equity tier 1 ratio
        
10.2%
9.9%
  
Common equity tier 1 capital
        
£42.0bn
£40.8bn
  
Tier 1 capital
        
£46.6bn
£45.4bn
  
Risk weighted assets
        
£413bn
£411bn
  
Estimated BCBS 270 leverage ratio
        
3.5%
3.4%
  
               
Funding and Liquidity
        
30.09.14
30.06.14
  
Group liquidity pool
        
£146bn
£134bn
  
Estimated CRD IV liquidity coverage ratio
        
115%
107%
  
Loan: deposit ratio4
        
90%
92%
  
               
Adjusted Profit Reconciliation
Nine Months Ended
        
30.09.14
30.09.13
  
Adjusted profit before tax
        
4,939
4,717
  
Own credit
        
96
(125)
  
Provisions for PPI and interest rate hedging redress
  
(910)
(2,000)
  
Gain on US Lehman acquisition assets1
  
461
259
  
Provision for ongoing investigations into Foreign Exchange
    
(500)
-
  
Loss on announced sale of the Spanish business2
  
(364)
-
  
Statutory profit before tax
        
3,722
2,851
  
 
 
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year.
2 The loss on the announced sale of the Spanish business of £364m represents a £680m impairment of assets in the Spanish businesses agreed for sale subject to completion at or shortly after the end of the year, partially offset by a £316m gain on related hedging instruments. There are also accumulated currency translation reserve losses of approximately £100m, subject to movements in the EUR exchange rate, which will be recognised on completion.
3 The profit after tax attributable to other equity holders of £170m (2013: £nil) is offset by a tax credit recorded in reserves of £36m (2013: £nil). The net amount of £134m, along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share, return on average tangible shareholders' equity and return on average shareholders' equity.
4 Loan: deposit ratio for PCB, Barclaycard, Africa Banking and Non-Core retail.


Performance Highlights
 
Barclays Core and Non-Core Results
Barclays Core
  
Barclays Non-Core
for the Nine Months Ended
30.09.14
30.09.131
    
30.09.14
30.09.13
  
 
£m
£m
% Change
  
£m
£m
% Change
Total income net of insurance claims
18,682
19,414
(4)
  
1,028
1,843
(44)
Credit impairment charges and other provisions
(1,429)
(1,629)
12
  
(166)
(724)
77
Net operating income
17,253
17,785
(3)
  
862
1,119
(23)
Operating expenses
(10,870)
(11,764)
8
  
(1,181)
(1,475)
20
Litigation and conduct
(194)
(104)
(87)
  
(115)
(60)
(92)
Costs to achieve Transform
(655)
(306)
    
(171)
(435)
61
Total operating expenses
(11,719)
(12,174)
4
  
(1,467)
(1,970)
26
Other net income/(expenses)
53
71
(25)
  
(43)
(114)
62
Profit/(loss) before tax
5,587
5,682
(2)
  
(648)
(965)
33
Tax charge
(1,774)
(1,666)
(6)
  
144
161
(11)
Profit/(loss) after tax
3,813
4,016
(5)
  
(504)
(804)
37
Non-controlling interests
(458)
(537)
15
  
(93)
(92)
(1)
Other equity interests
(129)
-
    
(41)
-
  
Attributable profit/(loss)
3,226
3,479
(7)
  
(638)
(896)
29
               
Performance Measures
              
Return on average tangible shareholders' equity2
12.8%
16.9%
    
(5.4%)
(9.2%)
  
Average allocated tangible equity (£bn)
£34bn
£27bn
    
£14bn
£17bn
  
Return on average shareholders' equity2
10.5%
13.3%
    
(4.2%)
(6.7%)
  
Average allocated equity (£bn)
£41bn
£35bn
    
£14bn
£17bn
  
Cost: income ratio
63%
63%
    
143%
107%
  
Basic earnings per share contribution
20.0p
25.6p
    
(3.9p)
(6.6p)
  
               
Capital Management
30.09.14
30.06.14
    
30.09.14
30.06.14
  
CRD IV fully loaded
              
Risk weighted assets
£332bn
£324bn
    
£81bn
£87bn
  

 
 
30.09.14
30.09.131
  
Income by Business
£m
£m
% Change
Personal and Corporate Banking (PCB)
6,597
6,557
1
Barclaycard
3,247
3,069
6
Africa Banking3
2,701
3,059
(12)
Investment Bank1
5,922
6,814
(13)
Head Office
215
(85)
  
Barclays Core
18,682
19,414
(4)
Barclays Non-Core
1,028
1,843
(44)
Barclays Group adjusted income
19,710
21,257
(7)
       
 
   
 
30.09.14
30.09.131
  
Profit/(Loss) Before Tax by Business
£m
£m
% Change
Personal and Corporate Banking (PCB)
2,257
1,907
18
Barclaycard
1,126
927
21
Africa Banking3
756
846
(11)
Investment Bank1
1,342
2,156
(38)
Head Office
106
(154)
  
Barclays Core
5,587
5,682
(2)
Barclays Non-Core
(648)
(965)
33
Barclays Group adjusted profit before tax
4,939
4,717
5
       
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year.
2 Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays Group returns and Barclays Core returns. This does not represent the return on average equity and average tangible equity of the Non-Core business.
3 Africa Banking income increased 8% and profit before tax increased 11% on a constant currency basis.


Group Performance Review
 
Income Statement
 
Group performance
 
· Adjusted profit before tax increased 5% to £4,939m as improvements in Personal and Corporate Banking (PCB) and Barclaycard were partly offset by a reduction in the Investment Bank and adverse currency movements in Africa Banking
 
· Adjusted income decreased 7% to £19,710m whilst impairment reduced by 32% to £1,595m, resulting in a 4% decrease in net operating income to £18,115m. We anticipate a modest increase in the impairment run rate in Q414, but our expectations are for 2014 full year impairment to be slightly below guidance provided at the 2014 Interim Results
 
· Adjusted total operating expenses were down 7% to £13,186m, with a reduction in headcount of 7,800 since September 2013, as a result of restructuring savings associated with Transform initiatives, and currency movements. This included costs to achieve Transform of £826m (2013: £741m) and litigation and conduct charges of £309m (2013: £164m). Costs to achieve Transform are expected to be £1.3bn for 2014 full year, £700m in 2015 and £200m in 2016
 
· Statutory profit before tax was £3,722m (2013: £2,851m), also reflecting a gain on own credit of £96m (2013: loss of £125m), an additional £910m (2013: £2,000m) net provision for PPI and interest rate hedging redress, a gain on US Lehman acquisition assets of £461m (2013: £259m), a £500m provision for ongoing investigations into Foreign Exchange with certain regulatory authorities and a £364m loss on the announced sale of the Spanish business
 
· The effective tax rate on adjusted profit before tax increased to 33.0% (2013: 31.9%) and the effective tax rate on statutory profit before tax increased to 40.2% (2013: 36.5%)
 
· Adjusted Group attributable profit was £2,588m (2013: £2,583m), resulting in an adjusted Group return on average shareholders' equity of 6.3% (2013: 6.6%)
 
 
Core performance
 
· Profit before tax remained broadly in line at £5,587m (2013: £5,682m), as a 38% reduction in the Investment Bank was largely offset by improved performance across the majority of the Core business
 
· Income decreased 4% to £18,682m, reflecting a reduction in the Investment Bank and a reduction in Africa Banking, due to currency movements, partially offset by growth in Barclaycard and PCB. Investment Bank income was down 13% year to date to £5,922m and down 10% to £1,665m in Q314 relative to Q313 due to lower Investment Banking fees and lower client volumes in Credit and Equities
 
- Net interest income of PCB, Barclaycard and Africa Banking increased 4% to £8,513m driven by strong savings income growth in PCB and volume growth in Barclaycard, partially offset by a reduction in Africa Banking due to currency movements
 
· Credit impairment charges improved 12% to £1,429m, reflecting lower impairments across most of the businesses, particularly PCB, due to the improving UK economic environment
 
· Total operating expenses decreased 4% to £11,719m, reflecting improvements across most of the businesses as a result of savings associated with Transform initiatives partially offset by higher costs to achieve Transform charges of £655m (2013: £306m) and higher litigation and conduct charges of £194m (2013: £104m)
 
· Attributable profit decreased to £3,226m (2013: £3,479m) and the Core return on equity decreased to 10.5% (2013: 13.3%), principally as a result of the increased shareholders' equity
 
 
Non-Core performance
 
· Loss before tax reduced 33% to £648m, reflecting:
 
- Lower income of £1,028m (2013: £1,843m) following assets and securities run down, and business disposals, partially offset by a £119m gain on sale of the UAE retail banking portfolio
 
- An improvement in impairment of £558m to £166m
 
- A 26% reduction in total operating expenses to £1,467m due to benefits from Transform cost programmes, including lower non-retail headcount and the effects of the previously announced European retail restructuring, in addition to reduced costs to achieve Transform
 
· Non-Core return on equity dilution improved to 4.2% (2013: 6.7%)
 
Group Performance Review
 
Balance Sheet and Leverage
 
Balance sheet
 
· Total assets as at 30 September 2014 increased 4% from 30 June 2014 to £1,365bn
 
 
- Derivative assets increased £49bn to £383bn, consistent with the movement in derivative liabilities, which increased £53bn to £379bn, due to an increase in foreign exchange derivatives of £36bn, following volatility in the USD market, and an increase in interest rate derivatives of £14bn due to a reduction in the major interest rate forward curves
 
 
- Reverse repurchase agreements and other similar secured lending decreased £14bn to £158bn primarily driven by lower matched book trading due to balance sheet deleveraging
 
· Total loans and advances remained broadly stable at £483bn (June 2014: £486bn) primarily due to a £14bn reclassification of loans to other assets relating to the Spanish business which are now held for sale, partially offset by a £13bn increase in settlement and cash collateral balances, and £2bn growth in Barclaycard
 
· Customer accounts decreased to £442bn (June 2014: £444bn) as a result of the reclassification of £8bn in relation to the Spanish business to other liabilities, partially offset by £5bn higher settlement balances
 
· Total shareholders' equity including non-controlling interests was £67bn (June 2014: £65bn). Excluding non-controlling interests, shareholders' equity increased to £60bn (June 2014: £58bn), reflecting a £0.8bn increase in the translation reserve as GBP weakened against USD and an increase in retained earnings of £0.5bn
 
· Net asset value per share increased to 336p (June 2014: 327p) and net tangible asset value per share was 287p (June 2014: 279p)
 
Leverage exposure
 
· The estimated Basel Committee on Banking Supervision (BCBS) 270 leverage exposure decreased to £1,324bn (June 2014: £1,353bn) primarily driven by a reduction in reverse repurchase agreements and derivative exposures
 
Capital Management
 
· The fully loaded CRD IV CET1 ratio increased to 10.2% (June 2014: 9.9%) primarily due to an increase in the fully loaded CRD IV CET1 capital of £1.3bn to £42.0bn. Excluding the loss on the announced sale of the Spanish business, profits in the period generated £0.8bn of CET1 capital. RWAs remained broadly stable at £413bn (June 2014: £411bn), with growth across Core businesses, partially offset by a decrease in Non-Core. Subject to completion, the announced Spanish business sale would result in an increase in the CRD IV fully loaded CET1 ratio to 10.4% as at 30 September 2014
 
· The estimated BCBS 270 leverage ratio increased to 3.5% (June 2014: 3.4%), reflecting the reduction in the estimated BCBS 270 leverage exposure of £29bn to £1,324bn and an increase in Tier 1 capital of £1.2bn to £46.6bn. Subject to completion, the announced sale of the Spanish businesses is expected to increase the estimated BCBS 270 leverage ratio by 2bps
 
Group Performance Review
 
Funding and Liquidity
 
· The Group strengthened its liquidity position further during the quarter, building a larger surplus to its Liquidity Risk Appetite. This resulted in an increase in the Group liquidity pool to £146bn (June 2014: £134bn). The estimated CRD IV Liquidity Coverage Ratio (LCR) increased to 115% (June 2014: 107%), equivalent to a surplus of £20bn (June 2014: £9bn)
 
· The Group funding profile remained stable and well diversified. Wholesale funding outstanding (excluding repurchase agreements) was £178bn (June 2014: £179bn). The Group issued £4bn of term funding net of early redemptions during the quarter taking total net issuance in 2014 to £14bn, excluding the £6bn participation in the Bank of England's Funding for Lending Scheme. Barclays has £4bn of term funding maturing in the remainder of 2014 and £23bn in 2015
 
Other Matters
 
· A £500m provision has been recognised relating to ongoing investigations into Foreign Exchange with certain regulatory authorities disclosed in the 2014 Half Year Results Announcement's Legal, Competition and Regulatory Matters note
 
· A gain of £461m has been recognised reflecting greater certainty around the recoverability of assets not yet received from the 2008 US Lehman acquisition. This gain follows a favourable ruling during the quarter from the US Court of Appeals for the Second Circuit
 
· As at 30 September 2014 the provision for PPI redress was £1.2bn (June 2014: £1.3bn) following Q314 utilisation of £291m and the recognition of an additional amount of £170m based on an updated estimate of future redress and associated costs. The remaining provision reflects Barclays' best current estimate of future costs
 
· As at 30 September 2014 the provision for interest rate hedging product redress was £295m (June 2014: £648m) after Q314 utilisation of £193m and a provision release of £160m. The release has been recognised as the review is now substantially complete with redress outcomes communicated to 99% of customers covered by the redress exercise
 
Dividends
 
· A third interim dividend of 1.0p will be paid on 12 December 2014
 
Outlook
 
· 2014 continues to be a transition year as we invest in the business and focus on balance sheet optimisation and cost reduction, while addressing ongoing regulatory and litigation issues
 
Tushar Morzaria, Group Finance Director
 

Results by Business
 
Personal and Corporate Banking
Nine Months Ended
Nine Months Ended
  
 
30.09.14
30.09.13
  
Income Statement Information
£m
£m
% Change
Total income
6,597
6,557
1
Credit impairment charges and other provisions
(359)
(451)
21
Net operating income
6,238
6,106
2
Operating expenses
(3,786)
(4,072)
7
Costs to achieve Transform
(205)
(165)
(24)
Total operating expenses
(3,991)
(4,237)
6
Other net income
10
38
(74)
Profit before tax
2,257
1,907
18
Attributable profit
1,617
1,399
16
       
 
As at 30.09.14
As at 30.06.14
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
215.7
216.7
  
Total assets
275.7
268.1
  
Customer deposits
295.9
298.3
  
Risk weighted assets
120.0
117.9
  
       
Performance Measures
30.09.14
30.09.13
  
Return on average tangible equity
16.7%
14.1%
  
Average allocated tangible equity (£bn)
13.0
13.2
  
Return on average equity
12.5%
10.8%
  
Average allocated equity (£bn)
17.3
17.3
  
Cost: income ratio
60%
65%
  
Loan loss rate (bps)
22
28
  
       
 
2014 compared to 2013
 
· Total income increased 1% to £6,597m driven by improved savings margins and mortgage income growth, partially offset by lower fee income
 
 
- Net interest margin improved by 8bps to 2.99% driven primarily by savings in personal banking partially offset by lower corporate banking lending margins
 
· Credit impairment charges improved 21% to £359m due to the improving economic environment in the UK. Corporate banking benefitted from higher levels of provision releases and recoveries in the UK
 
· Total operating expenses reduced 6% to £3,991m reflecting benefits from Transform programmes, including headcount reductions, partially offset by increased costs to achieve Transform of £205m (2013: £165m)
 
· Profit before tax increased 18% to £2,257m
 
 
Q314 compared to Q214
 
· Profit before tax remained stable at £789m (Q214: £780m) with higher income in personal banking and reduced operating expenses, due to benefits from Transform programmes, offset by higher costs to achieve Transform of £90m (Q214: £58m)
 
· Loans and advances to customers reduced £1.0bn to £215.7bn due to lower working capital requirements from corporate banking customers, partially offset by mortgage growth
 
· Total assets increased 3% to £275.7bn due to an increase in liquidity pool assets, partially offset by the net decrease in loans and advances to customers
 
· Customer deposits reduced £2.4bn to £295.9bn due to reduced corporate banking client deposit balances in the UK, partially offset by inflows in current accounts
 
· RWAs increased £2.1bn to £120.0bn primarily driven by increases in mortgage balances and corporate banking undrawn commitments
 
Results by Business
 
Barclaycard
Nine Months Ended
Nine Months Ended
  
 
30.09.14
30.09.13
  
Income Statement Information
£m
£m
% Change
Total income
3,247
3,069
6
Credit impairment charges and other provisions
(821)
(830)
1
Net operating income
2,426
2,239
8
Operating expenses
(1,271)
(1,329)
4
Costs to achieve Transform
(68)
(11)
  
Total operating expenses
(1,339)
(1,340)
-
Other net income
39
28
39
Profit before tax
1,126
927
21
Attributable profit
801
653
23
       
 
As at 30.09.14
As at 30.06.14
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to customers at amortised cost
34.8
33.2
  
Total assets
38.9
36.2
  
Customer deposits
6.5
5.9
  
Risk weighted assets
38.6
37.7
  
       
Performance Measures
30.09.14
30.09.13
  
Return on average tangible equity
23.0%
21.2%
  
Average allocated tangible equity (£bn)
4.7
4.1
  
Return on average equity
18.5%
16.5%
  
Average allocated equity (£bn)
5.8
5.3
  
Cost: income ratio
41%
44%
  
Loan loss rate (bps)
301
347
  
 
2014 compared to 2013
 
· Total income increased 6% to £3,247m reflecting continued net lending growth across all geographies and lower funding costs, partially offset by depreciation of USD against GBP
 
 
- Net interest margin remained broadly stable at 8.98% (2013: 9.04%) as the impact of promotional offers and a change in product mix was offset by lower funding costs
 
· Credit impairment charges remained in line at £821m (2013: £830m) despite volume growth. Favourable performance, as reflected by falling 30 day delinquency rates in the UK and US consumer cards businesses, resulted in loan loss rates reducing by 46bps to 301bps
 
· Total operating expenses remained flat at £1,339m (2013: £1,340m). The impact of volume growth and higher costs to achieve Transform was offset by depreciation of USD against GBP and VAT refunds
 
· Profit before tax increased 21% to £1,126m
 
 
Q314 compared to Q214
 
· Profit before tax reduced 9% to £362m driven by higher operating expenses due to the non-recurrence of a VAT refund in the prior quarter and higher costs to achieve Transform
 
· Total loans and advances to customers increased 5% to £34.8bn reflecting growth across all geographies
 
· Total assets increased 7% to £38.9bn due to the increase in loans and advances to customers and an increase in liquidity pool assets
 
· Customer deposits increased 10% to £6.5bn driven by funding initiatives in the US
 
· RWAs increased £0.9bn to £38.6bn primarily driven by growth in loans and advances to customers
 
Results by Business
 
Africa Banking
      
Constant Currency1
Nine Months Ended
Nine Months Ended
  
Nine Months Ended
Nine Months Ended
  
30.09.14
30.09.13
  
30.09.14
30.09.13
  
Income Statement Information
£m
£m
% Change
£m
£m
% Change
Total income net of insurance claims
2,701
3,059
(12)
3,297
3,059
8
Credit impairment charges and other provisions
(270)
(375)
28
(332)
(375)
11
Net operating income
2,431
2,684
(9)
2,965
2,684
10
Operating expenses
(1,655)
(1,835)
10
(2,004)
(1,835)
(9)
Costs to achieve Transform
(28)
(11)
  
(34)
(11)
  
Total operating expenses
(1,683)
(1,846)
9
(2,038)
(1,846)
(10)
Other net income
8
8
-
9
8
13
Profit before tax
756
846
(11)
936
846
11
Attributable profit
272
325
(16)
368
325
13
             
 
As at 30.09.14
As at 30.06.14
  
As at 30.09.14
As at 30.06.14
  
Balance Sheet Information
£bn
£bn
  
£bn
£bn
  
Loans and advances to customers at amortised cost
34.5
33.8
  
34.8
33.8
  
Total assets
54.6
52.4
  
55.2
52.4
  
Customer deposits
33.4
33.2
  
33.6
33.2
  
Risk weighted assets
37.9
36.5
        
             
Performance Measures
30.09.14
30.09.13
        
Return on average tangible equity
13.2%
13.3%
        
Average tangible equity (£bn)
2.7
3.3
        
Return on average equity
9.6%
9.6%
        
Average equity (£bn)
3.8
4.5
        
Cost: income ratio
62%
60%
        
Loan loss rate (bps)
97
130
        
             
 
2014 compared to 2013
 
 
· Based on average rates, the ZAR depreciated against GBP by 22% in 2014. The deterioration was a significant contributor to the movement in the reported results of Africa Banking
 
· Total income declined 12% to £2,701m. On a constant currency basis, total income increased 8% reflecting higher net interest income, with continued strong Corporate and Investment Banking (CIB) asset growth and the net interest margin increasing to 5.96% (2013: 5.78%). Non-interest income increased reflecting growth in Retail and Business Banking (RBB)
 
· Credit impairment charges decreased 28% to £270m. On a constant currency basis, credit impairment charges reduced 11% driven by improvements in the South Africa mortgages portfolio, partially offset by increased provisions in the Card portfolio. The loan loss rate improved from 130bps to 97bps
 
· Total operating expenses decreased 9% to £1,683m. On a constant currency basis, operating expenses increased 10% largely reflecting inflationary increases, higher staff and marketing costs, increased investment spend on key initiatives and higher costs to achieve Transform
 
· Profit before tax decreased 11% to £756m. On a constant currency basis, profit before tax increased 11%
 
 
Q314 compared to Q214
 
· The closing and average ZAR rates against GBP remained broadly stable to Q214
 
· Profit before tax increased to £272m (Q214: £244m) primarily reflecting improved income and lower impairment in RBB
 
· Loans and advances to customers increased 2% to £34.5bn primarily reflecting growth in CIB
 
· Total assets increased 4% to £54.6bn due to the increase in loans and advances to customers and an increase in CIB trading assets
 
· Customer deposits increased 1% to £33.4bn mainly reflecting continued growth in deposits in RBB
 
· RWAs increased £1.4bn to £37.9bn primarily reflecting loans and advances growth
 
1 Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the nine months ended 30 September 2013 for the income statement and the 30 June 2014 exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the two periods.


Results by Business
 
Investment Bank
Nine Months Ended
Nine Months Ended1
  
 
30.09.14
30.09.13
  
Income Statement Information
£m
£m
% Change
Investment Banking fees
1,584
1,589
-
Lending
306
257
19
Banking
1,890
1,846
2
Credit2
871
1,026
(15)
Equities
1,615
1,876
(14)
Macro2
1,526
2,086
(27)
Markets
4,012
4,988
(20)
Banking & Markets
5,902
6,834
(14)
Other1
20
(20)
  
Total income
5,922
6,814
(13)
Credit impairment releases and other provisions
21
28
(25)
Net operating income
5,943
6,842
(13)
Operating expenses
(4,249)
(4,566)
7
Costs to achieve Transform
(352)
(120)
  
Total operating expenses
(4,601)
(4,686)
2
Profit before tax
1,342
2,156
(38)
Attributable profit
547
1,381
(60)
       
 
As at 30.09.14
As at 30.06.141
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to banks and customers at amortised cost
123.1
117.2
  
Trading portfolio assets
98.8
101.2
  
Derivative financial instrument assets
131.4
104.2
  
Reverse repurchase agreements and other similar secured lending
82.8
83.0
  
Total assets1
488.4
446.2
  
Risk weighted assets1
127.9
123.9
  
       
Performance Measures
30.09.14
30.09.131
  
Return on average tangible equity
5.1%
11.8%
  
Average allocated tangible equity (£bn)
14.6
15.6
  
Return on average equity
4.9%
11.4%
  
Average allocated equity (£bn)
15.3
16.2
  
Cost: income ratio
78%
69%
  
 
2014 compared to 2013
 
· Total income decreased 13% to £5,922m or 6% if reported in USD3
 
 
- Banking income increased 2% to £1,890m. Within Banking, Investment Banking fee income is in line with prior year at £1,584m (2013: £1,589m) driven by increased financial advisory and equity underwriting fees, offset by lower debt underwriting fee income. Lending income increased 19% to £306m driven by lower risk management losses and higher net interest and fee income
 
 
- Markets income decreased 20% to £4,012m
 
 
- Credit decreased 15% to £871m driven by lower income in high yield and high grade products, predominantly in the US
 
 
- Equities decreased 14% to £1,615m due to declines in US cash equities and global equity derivatives, reflecting lower client volumes partially offset by higher income in equity financing
 
 
- Macro decreased 27% to £1,526m reflecting subdued client activity in rates and lower volatility in H114 currency markets
 
· Net credit impairment release of £21m (2013: £28m) arose from a number of single name exposures
 
· Total operating expenses decreased 2% to £4,601m including a reduction due to foreign currency movements, partially offset by increased costs to achieve Transform of £352m (2013: £120m) and litigation and conduct charges. Excluding these items, operating expenses decreased 3%, reflecting lower compensation costs and benefits from Transform programmes, including business restructuring and operational streamlining
 
· Profit before tax decreased 38% to £1,342m
 
 
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year. In addition, June 2014 US Lehman acquisition assets and RWAs of £1.6bn have been restated for the reclassification of these assets from the Investment Bank to Head Office to more accurately reflect responsibility for the resolution of this matter.
2 Macro represents Rates, Currencies and Commodities income. Credit represents Credit, Securitised Products and Municipals income.
3 USD variance representing monthly spot rate conversion of GBP results has been included to aid comparison to US peer banks.

 
Results by Business
 
Q314 compared to Q313
 
· Total income decreased 10% to £1,665m or 5% if reported in USD
 
 
- Banking income decreased 4% to £547m. Within Banking, Investment Banking fee income decreased 22% to £410m driven by decreased financial advisory and debt underwriting fee income. Equity underwriting fee income remained broadly in line. Lending income increased to £137m (Q313: £42m) driven by lower risk management losses in the prior year
 
 
- Markets income decreased 13% to £1,120m
 
 
- Credit decreased 17% to £255m driven by declines in high yield and high grade products in the US
 
 
- Equities decreased 25% to £395m due to declines in US cash equities and global equity derivatives, partially offset by higher income in equity financing
 
 
- Macro increased 3% to £470m reflecting stronger performance in currencies due to higher volatility, partially offset by decreased client activity in rates
 
· Total operating expenses remained in line at £1,376m (Q313: £1,376m) due to savings from Transform programmes and favourable currency movements, offset by higher costs to achieve Transform
 
· Profit before tax decreased to £284m (Q313: £465m)
 
 
Q314 compared to Q214
 
· Total income decreased 23% to £1,665m
 
 
- Banking income decreased 25% to £547m. Within Banking, Investment Banking fee income decreased 38% to £410m driven by decreased equity and debt underwriting, and financial advisory fee income. Lending income increased to £137m (Q214: £66m) driven by lower risk management losses in the prior quarter
 
 
- Markets income decreased 20% to £1,120m
 
 
- Credit decreased 6% to £255m driven by declines across high yield and high grade products in the US
 
 
- Equities decreased 37% to £395m due to declines in cash equities and equity derivatives
 
 
- Macro decreased 7% to £470m as decreased client activity in rates was partially offset by stronger performance in currencies due to higher volatility
 
· Total operating expenses decreased 14% to £1,376m due to lower litigation and conduct charges, savings from Transform programmes and lower costs to achieve Transform
 
· Profit before tax decreased to £284m (Q214: £567m)
 
· Loans and advances to banks and customers increased 5% to £123.1bn due to increased settlement balances
 
· Derivative financial instrument assets increased 26% to £131.4bn driven by decreases in major interest rate forward curves and strengthening of USD against GBP
 
· Reverse repurchase agreements and other similar secured lending were in line at £82.8bn (June 2014: £83.0bn)
 
· Total assets increased 9% to £488.4bn due to movements in derivatives financial instrument assets, loans and advances to banks and customers and an increase in allocation of the Group liquidity pool assets
 
· RWAs increased £4.0bn to £127.9bn primarily driven by an increase in loans and advances to customers and the downgrade of Russian counterparties
 
Results by Business
 
Head Office
Nine Months Ended
Nine Months Ended
 
30.09.14
30.09.13
Income Statement Information
£m
£m
Net operating income/(expense)
215
(85)
Operating expenses
(104)
(65)
Costs to achieve Transform
(2)
-
Total operating expenses
(106)
(65)
Other net expense
(3)
(4)
Profit/(loss) before tax
106
(154)
Attributable loss
(11)
(279)
     
 
As at 30.09.14
As at 30.06.141
Balance Sheet Information
£bn
£bn
Total assets1
41.5
43.3
Risk weighted assets1
7.5
7.6
 
2014 compared to 2013
 
· Net operating income increased to £215m (2013: expense of £85m) predominately due to the residual income from treasury operations and a net gain of £69m from foreign exchange recycling arising from the restructure of group subsidiaries
 
· Total operating expenses increased £41m to £106m, mainly due to litigation and conduct charges, partially offset by the non-recurrence of costs associated with the Salz Review and establishment of the Transform programme in the prior year
 
· Profit before tax of £107m moved from a loss of £154m in 2013
 
 
Q314 compared to Q214
 
· Profit before tax increased to £40m (Q214: £6m) driven by lower operating expenses, mainly due to litigation and conduct charges in the prior quarter
 
· Total assets remained broadly stable at £41.5bn (June 2014: £43.3bn)
 
· RWAs remained in line at £7.5bn (June 2014: £7.6bn), with an increase relating to the US Lehman acquisition assets offset by a reduction due to a greater proportion of high quality sovereign assets
 
1 June 2014 US Lehman acquisition assets and RWAs of £1.6bn have been restated for the reclassification of these assets from the Investment Bank to Head Office to more accurately reflect responsibility for the resolution of this matter.


Results by Business
 
Barclays Non-Core
Nine Months Ended
Nine Months Ended
  
 
30.09.14
30.09.13
  
Income Statement Information
£m
£m
% Change
Businesses
876
1,175
(25)
Securities and Loans
251
604
(58)
Derivatives
(99)
64
  
Total income
1,028
1,843
(44)
Credit impairment charges and other provisions
(166)
(724)
77
Net operating income
862
1,119
(23)
Operating expenses
(1,296)
(1,535)
16
Costs to achieve Transform
(171)
(435)
61
Total operating expenses
(1,467)
(1,970)
26
Other net expense
(43)
(114)
62
Loss before tax
(648)
(965)
33
Attributable loss
(638)
(896)
29
       
 
As at 30.09.14
As at 30.06.14
  
Balance Sheet Information
£bn
£bn
  
Loans and advances to banks and customers at amortised cost
64.5
75.5
  
Loans and advances to customers at fair value
18.1
17.0
  
Trading portfolio assets
19.2
22.9
  
Derivative financial instrument assets
249.6
227.0
  
Reverse repurchase agreements and other similar secured lending
73.9
86.8
  
Total assets
466.5
468.6
  
Customer deposits
22.2
28.6
  
Risk weighted assets
81.0
87.5
  
       
Performance Measures
30.09.14
30.09.13
  
Return on average tangible equity impact1
(5.4%)
(9.2%)
  
Average allocated tangible equity (£bn)
13.6
17.1
  
Return on average equity impact1
(4.2%)
(6.7%)
  
Average allocated equity (£bn)
13.8
17.4
  
Cost: income ratio
143%
107%
  
       
 
2014 compared to 2013
 
· Total income reduced 44% to £1,028m
 
 
- Businesses income reduced 25% to £876m primarily driven by reduced investment banking activity, as assets are run down, adverse foreign currency movements and rationalisation of product offerings within the European retail business
 
 
- Securities and Loans income decreased 58% to £251m primarily driven by the active rundown of securities, fair value adjustments on wholesale loan portfolios and non-recurrence of prior year favourable market movements on certain securitised products, partially offset by a £119m gain on the sale of the UAE retail banking portfolio
 
 
- Derivative income reduced £163m to an expense of £99m reflecting the funding costs of the pre-CRD IV rates portfolio, hedging activities and the non-recurrence of fair value gains in the prior year
 
 
- As run down activity progresses, 2015 income is expected to reduce significantly from current levels
 
· Credit impairment charges improved 77% to £166m driven by the non-recurrence of a single name exposure, lower charges on the wholesale portfolio, including actions to reduce exposure to the Spanish property and construction sectors, and improved underlying performance in Europe
 
· Total operating expenses improved 26% to £1,467m reflecting a 16% reduction in operating expenses due to benefits from Transform programmes, including non-retail headcount reductions and results of the previously announced European retail restructuring. In addition, costs to achieve Transform were 61% lower
 
· Loss before tax reduced 33% to £648m
 
1 Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group. This does not represent the return on average equity and average tangible equity of the Non-Core business.


Results by Business
 
Q314 compared to Q214
 
· Total income increased 30% to £370m
 
 
- Businesses income increased 34% to £328m primarily driven by fair value gains and sale proceeds as part of the exit strategy
 
 
- Securities and Loans income increased to £103m (Q214: £48m), driven by income from commodities and foreign exchange trading, and a £119m gain on the sale of the UAE retail banking portfolio, partially offset by fair value adjustments on wholesale loan portfolios
 
 
- Derivative income reduced £53m to an expense of £61m due to a decline in trading income leaving a residual funding cost
 
· Credit impairment charges improved 79% to £17m driven by debt sales and provision releases within non-retail businesses
 
· Total operating expenses increased 14% to £533m due to increased costs to achieve Transform of £130m (Q214: £17m), partially offset by 11% lower operating expenses due to benefits from the run down of non-retail businesses and from Transform programmes
 
· Loss before tax reduced 53% to £157m
 
· Loans and advances to banks and customers decreased 15% to £64.5bn due to a £14.0bn reclassification of loans relating to the Spanish business which are now held for sale
 
· Total assets remained broadly stable at £466.5bn (June 2014: £468.6bn) with reduced reverse repurchase agreements and trading portfolio assets offset by an increase in derivative financial instrument assets
 
· RWAs reduced £6.5bn to £81.0bn mainly driven by securities disposals and disposals of businesses, including the UAE retail banking portfolio
 
Appendix I - Quarterly Results Summary
 
Barclays Results by Quarter1
Q314
Q214
Q114
  
Q413
Q313
Q213
Q113
  
Q412
£m
£m
£m
  
£m
£m
£m
£m
  
£m
Adjusted basis
                    
Total income net of insurance claims
6,378
6,682
6,650
  
6,639
6,445
7,078
7,734
  
6,867
Credit impairment charges and other provisions
(509)
(538)
(548)
  
(718)
(722)
(925)
(706)
  
(825)
Net operating income
5,869
6,144
6,102
  
5,921
5,723
6,153
7,028
  
6,042
Operating expenses
(3,977)
(4,188)
(4,195)
  
(4,777)
(4,262)
(4,359)
(4,782)
  
(4,345)
Costs to achieve Transform
(332)
(254)
(240)
  
(468)
(101)
(126)
(514)
  
-
UK bank levy
-
-
-
  
(504)
-
-
-
  
(345)
Total operating expenses
(4,309)
(4,442)
(4,435)
  
(5,749)
(4,363)
(4,485)
(5,296)
  
(4,690)
Other net income/(expense)
30
(46)
26
  
19
25
(122)
54
  
43
Adjusted profit before tax
1,590
1,656
1,693
  
191
1,385
1,546
1,786
  
1,395
                     
Adjusting items
                    
Own credit
44
(67)
119
  
(95)
(211)
337
(251)
  
(560)
Provisions for PPI and interest rate hedging redress
(10)
(900)
-
  
-
-
(2,000)
-
  
(1,000)
Goodwill impairment
-
-
-
  
(79)
-
-
-
  
-
Gain on US Lehman acquisition assets
461
-
-
  
-
-
259
-
  
-
Provision for ongoing investigations into Foreign Exchange
(500)
-
-
  
-
-
-
-
  
-
Loss on announced sale of the Spanish business
(364)
-
-
  
-
-
-
-
  
-
Statutory profit/(loss) before tax
1,221
689
1,812
  
17
1,174
142
1,535
  
(165)
Statutory profit/(loss) after tax
620
391
1,215
  
(514)
728
39
1,044
  
(364)
                     
Attributable to:
                    
Ordinary equity holders of the parent
379
161
965
  
(642)
511
(168)
839
  
(589)
Other equity holders
80
41
49
  
-
-
-
-
  
-
Non-controlling interests
161
189
201
  
128
217
207
205
  
225
                     
Adjusted basic earnings/(loss) per share
5.2p
5.4p
5.5p
  
(2.8p)
5.4p
7.7p
7.5p
  
6.7p
Adjusted cost: income ratio
68%
66%
67%
  
87%
68%
63%
68%
  
68%
Basic earnings/(loss) per share
2.4p
1.0p
6.0p
  
(4.5p)
3.8p
(1.2p)
6.3p
  
(4.5p)
Cost: income ratio
70%
82%
66%
  
89%
70%
85%
71%
  
90%
                     
Barclays Core1
                    
                   
Total income net of insurance claims
6,008
6,397
6,277
  
6,189
6,076
6,514
6,824
  
6,115
Credit impairment charges and other provisions
(492)
(456)
(481)
  
(542)
(554)
(558)
(517)
  
(600)
Net operating income
5,516
5,941
5,796
  
5,647
5,522
5,956
6,307
  
5,515
Operating expenses
(3,573)
(3,738)
(3,753)
  
(4,114)
(3,776)
(3,853)
(4,239)
  
(3,844)
Costs to achieve Transform
(202)
(237)
(216)
  
(365)
(84)
(64)
(158)
  
-
UK bank levy
-
-
-
  
(395)
-
-
-
  
(263)
Total operating expenses
(3,775)
(3,975)
(3,969)
  
(4,874)
(3,860)
(3,917)
(4,397)
  
(4,107)
Other net income
6
27
20
  
15
15
13
43
  
21
Profit before tax
1,747
1,993
1,847
  
788
1,677
2,052
1,953
  
1,429
Barclays Non-Core
                    
                   
Total income net of insurance claims
370
285
373
  
450
368
564
911
  
752
Credit impairment charges and other provisions
(17)
(82)
(67)
  
(176)
(168)
(367)
(189)
  
(226)
Net operating income
353
203
306
  
274
200
197
722
  
526
Operating expenses
(403)
(451)
(442)
  
(664)
(485)
(507)
(542)
  
(500)
Costs to achieve Transform
(130)
(17)
(24)
  
(103)
(17)
(62)
(356)
  
-
UK bank levy
-
-
-
  
(109)
-
-
-
  
(82)
Total operating expenses
(533)
(468)
(466)
  
(876)
(502)
(569)
(898)
  
(582)
Other net income/(expense)
23
(72)
6
  
4
10
(135)
11
  
21
Loss before tax
(157)
(337)
(154)
  
(598)
(292)
(507)
(165)
  
(35)
 
 
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year.


Appendix I - Quarterly Results Summary
 
 
Q314
Q214
Q114
  
Q413
Q313
Q213
Q113
  
Q412
Personal and Corporate Banking
£m
£m
£m
  
£m
£m
£m
£m
  
£m
Total income
2,236
2,188
2,173
  
2,166
2,252
2,192
2,113
  
2,153
Credit impairment charges and other provisions
(129)
(95)
(135)
  
(169)
(153)
(165)
(134)
  
(191)
Net operating income
2,107
2,093
2,038
  
1,997
2,099
2,027
1,979
  
1,962
Operating expenses
(1,232)
(1,256)
(1,298)
  
(1,388)
(1,318)
(1,378)
(1,376)
  
(1,337)
Costs to achieve Transform
(90)
(58)
(57)
  
(219)
(73)
(55)
(37)
  
-
UK bank levy
-
-
-
  
(66)
-
-
-
  
(49)
Total operating expenses
(1,322)
(1,314)
(1,355)
  
(1,673)
(1,391)
(1,433)
(1,413)
  
(1,386)
Other net income
4
1
5
  
3
1
7
30
  
3
Profit before tax
789
780
688
  
327
709
601
596
  
579
Barclaycard
                    
Total income
1,123
1,082
1,042
  
1,034
1,050
1,030
989
  
987
Credit impairment charges and other provisions
(284)
(268)
(269)
  
(266)
(290)
(272)
(268)
  
(265)
Net operating income
839
814
773
  
768
760
758
721
  
722
Operating expenses
(449)
(420)
(402)
  
(457)
(455)
(424)
(450)
  
(472)
Costs to achieve Transform
(32)
(23)
(13)
  
(38)
(6)
(5)
-
  
-
UK bank levy
-
-
-
  
(22)
-
-
-
  
(15)
Total operating expenses
(481)
(443)
(415)
  
(517)
(461)
(429)
(450)
  
(487)
Other net income
4
25
10
  
5
12
7
9
  
5
Profit before tax
362
396
368
  
256
311
336
280
  
240
Africa Banking
                    
Total income net of insurance claims
928
895
878
  
980
1,004
1,016
1,039
  
1,064
Credit impairment charges and other provisions
(74)
(100)
(96)
  
(104)
(101)
(131)
(143)
  
(164)
Net operating income
854
795
782
  
876
903
885
896
  
900
Operating expenses
(573)
(545)
(537)
  
(616)
(605)
(597)
(633)
  
(605)
Costs to achieve Transform
(11)
(8)
(9)
  
(15)
(2)
(9)
-
  
-
UK bank levy
-
-
-
  
(42)
-
-
-
  
(34)
Total operating expenses
(584)
(553)
(546)
  
(673)
(607)
(606)
(633)
  
(639)
Other net income
2
2
4
  
-
3
4
1
  
12
Profit before tax
272
244
240
  
203
299
283
264
  
273
Investment Bank1
                    
Investment Banking fees
410
661
513
  
571
526
488
575
  
621
Lending
137
66
103
  
68
42
141
74
  
42
Banking
547
727
616
  
639
568
629
649
  
663
Credit
255
270
346
  
231
308
239
479
  
248
Equities
395
629
591
  
421
524
750
602
  
419
Macro
470
504
552
  
494
457
689
940
  
609
Markets
1,120
1,403
1,489
  
1,146
1,289
1,678
2,021
  
1,276
Banking & Markets
1,667
2,130
2,105
  
1,785
1,857
2,307
2,670
  
1,939
Other
(2)
24
(2)
  
(3)
(6)
(7)
(7)
  
(8)
Total income
1,665
2,154
2,103
  
1,782
1,851
2,300
2,663
  
1,931
Credit impairment (charges)/releases and other provisions
(5)
7
19
  
(6)
(10)
10
28
  
21
Net operating income
1,660
2,161
2,122
  
1,776
1,841
2,310
2,691
  
1,952
Operating expenses
(1,306)
(1,442)
(1,501)
  
(1,606)
(1,373)
(1,429)
(1,764)
  
(1,360)
Costs to achieve Transform
(70)
(152)
(130)
  
(71)
(3)
-
(116)
  
-
UK bank levy
-
-
-
  
(236)
-
-
-
  
(139)
Total operating expenses
(1,376)
(1,594)
(1,631)
  
(1,913)
(1,376)
(1,429)
(1,880)
  
(1,499)
Profit/(loss) before tax
284
567
491
  
(137)
465
881
811
  
453
Head Office
                    
Total income/(expense)
56
78
81
  
227
(81)
(24)
20
  
(20)
Credit impairment releases/(charges) and other provisions
-
-
-
  
3
-
-
-
  
(1)
Net operating income/(expense)
56
78
81
  
230
(81)
(24)
20
  
(21)
Operating expenses
(13)
(76)
(15)
  
(47)
(25)
(25)
(16)
  
(70)
Costs to achieve Transform
-
5
(7)
  
(22)
-
5
(5)
  
-
UK bank levy
-
-
-
  
(29)
-
-
-
  
(26)
Total operating expenses
(13)
(71)
(22)
  
(98)
(25)
(20)
(21)
  
(96)
Other net (expense)/income
(3)
(1)
1
  
7
(1)
(5)
3
  
1
Profit/(loss) before tax
40
6
60
  
139
(107)
(49)
2
  
(116)
                     
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year.


Appendix II - Performance Management
 
Returns and Equity by Business
 
Returns on average equity and average tangible equity are calculated as annualised profit for the period attributable to ordinary equity holders of the parent (adjusted for the offset by the tax credit recorded in reserves in respect of coupons on other equity instruments) divided by average allocated equity or average allocated tangible equity for the period as appropriate, excluding non-controlling and other equity interests for businesses, apart from Africa Banking (see below). Average allocated equity has been calculated as 10.5% of average CRD IV fully loaded risk weighted assets for each business, adjusted for CRD IV fully loaded capital deductions, including goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. The excess of allocated Group equity, reflecting CRD IV fully loaded Common Equity Tier 1 capital ratio of 10.2% as at 30 September 2014 being below 10.5%, is allocated as negative equity to Head Office and Other Operations. Average allocated tangible equity is calculated using the same method but excludes goodwill and intangible assets.
For Africa Banking the equity used for return on average equity is 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 the Barclays' goodwill on acquisition of these businesses. The tangible equity for return on tangible equity uses the same basis but excludes both the Barclays' goodwill on acquisition and the goodwill and intangibles held within the BAGL statutory equity.
 
 
Nine Months Ended
Nine Months Ended
 
30.09.14
30.09.131
Return on Average Equity
%
%
Personal and Corporate Banking
12.5
10.8
Barclaycard
18.5
16.5
Africa Banking
9.6
9.6
Investment Bank
4.9
11.4
Barclays Core excluding Head Office
10.3
11.6
Head Office impact2
0.2
1.7
Barclays Core
10.5
13.3
Barclays Non-Core impact2
(4.2)
(6.7)
Barclays Group adjusted total
6.3
6.6
     
 
Nine Months Ended
Nine Months Ended
 
30.09.14
30.09.131
Return on Average Tangible Equity
%
%
Personal and Corporate Banking
16.7
14.1
Barclaycard
23.0
21.2
Africa Banking
13.2
13.3
Investment Bank
5.1
11.8
Barclays Core excluding Head Office
12.4
13.9
Head Office impact2
0.4
3.0
Barclays Core
12.8
16.9
Barclays Non-Core impact2
(5.4)
(9.2)
Barclays Group adjusted total
7.4
7.7
 
 
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year.
2 Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents their impact on Barclays Core and the Group respectively. This does not represent the return on average equity and average tangible equity of Head Office or the Non-Core business.


Appendix II - Performance Management
 
   
 
Nine Months Ended
Nine Months Ended
 
30.09.14
30.09.131
Profit/(Loss) Attributable to Ordinary Equity Holders of the Parent2
£m
£m
Personal and Corporate Banking
1,629
1,399
Barclaycard
805
653
Africa Banking
272
325
Investment Bank
559
1,381
Head Office
(11)
(279)
Barclays Core
3,254
3,479
Barclays Non-Core
(629)
(896)
Barclays Group adjusted total
2,625
2,583
     
 
Average Allocated Equity
 
Nine Months Ended
Nine Months Ended
 
30.09.14
30.09.13
 
£bn
£bn
Personal and Corporate Banking
17.3
17.3
Barclaycard
5.8
5.3
Africa Banking
3.8
4.5
Investment Bank
15.3
16.2
Head Office3
(0.8)
(8.3)
Barclays Core
41.4
35.0
Barclays Non-Core
13.8
17.4
Barclays Group adjusted total
55.2
52.4
     
 
Average Allocated Tangible Equity
 
Nine Months Ended
Nine Months Ended
 
30.09.14
30.09.13
 
£bn
£bn
Personal and Corporate Banking
13.0
13.2
Barclaycard
4.7
4.1
Africa Banking
2.7
3.3
Investment Bank
14.6
15.6
Head Office3
(1.2)
(8.8)
Barclays Core
33.8
27.4
Barclays Non-Core
13.6
17.1
Barclays Group adjusted total
47.4
44.5
 
1 2013 adjusted income and profit before tax has been restated to exclude the Q213 £259m gain relating to assets not yet received from the US Lehman acquisition to aid comparability given its material nature in the current year.
2 The profit after tax attributable to other equity holders of £170m (2013: £nil) is offset by a tax credit recorded in reserves of £36m (2013: £nil) allocated across the businesses. The net amount of £134m, along with NCI, is deducted from profit after tax in order to calculate return on average tangible shareholders' equity and return on average shareholders' equity. Hence, 2014 attributable profit of £2,588m has been adjusted for the tax credit recorded in reserves of £36m (2013: £nil).
3 Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average ordinary shareholders' equity and tangible ordinary shareholders' equity.
 
Appendix II - Performance Management
 
Margins and Balances
            
 
Nine Months Ended 30.09.14
Nine Months Ended 30.09.13
 
Net Interest Income
Average Customer Assets
Net Interest Margin
Net Interest Income
Average Customer Assets
Net Interest Margin
 
£m
£m
%
£m
£m
%
Personal and Corporate Banking
4,679
209,284
2.99
4,390
201,655
2.91
Barclaycard
2,287
34,050
8.98
2,112
31,224
9.04
Africa Banking
1,547
34,720
5.96
1,707
39,482
5.78
Total Personal and Corporate Banking, Barclaycard and Africa Banking
8,513
278,054
4.09
8,209
272,361
4.03
Other
613
    
284
    
Total Net Interest Income
9,126
    
8,493
    
 
· Total PCB, Barclaycard and Africa Banking net interest income increased 4% to £8,513m due to:
 
 
- An increase in average customer assets to £278.1bn (2013: £272.4bn) with growth in PCB mortgages and Barclaycard, partially offset by reductions in Africa Banking as the ZAR depreciated against GBP
 
- Net interest margin increased 6bps to 4.09% primarily due to savings income in Personal Banking
 
· Group net interest income increased to £9.1bn (2013: £8.5bn) including structural hedge contributions of £1.2bn (2013: £1.2bn). Equity structural hedge income increased as the weighted average life of the hedge was extended. This was offset by lower product structural hedges driven by the maintenance of the hedge in a continuing low rate environment
 
Quarterly Analysis for PCB, Barclaycard and Africa Banking
 
Quarter Ended 30.09.14
Quarter Ended 30.06.14
Quarter Ended 30.09.13
 
Net Interest Income
Average Customer Assets
Net Interest Margin
Net Interest Income
Average Customer Assets
Net Interest Margin
Net Interest Income
Average Customer Assets
Net Interest Margin
 
£m
£m
%
£m
£m
%
£m
£m
%
Personal and Corporate Banking
1,622
210,859
3.05
1,529
209,040
2.93
1,530
203,887
2.98
Barclaycard
787
35,308
8.84
754
33,904
8.92
727
31,690
9.10
Africa Banking
540
35,026
6.12
504
34,660
5.83
567
37,634
5.98
Total Personal and Corporate Banking, Barclaycard and Africa Banking
2,949
281,193
4.16
2,787
277,604
4.03
2,824
273,211
4.10


Appendix III - Consolidated Summary Income Statement, Balance Sheet and Statement of Changes in Equity
 
Consolidated Summary Income Statement
 
Nine Months Ended
Nine Months Ended
Continuing Operations
30.09.14
30.09.13
 
£m
£m
Total income net of insurance claims
20,267
21,391
Credit impairment charges and other provisions
(1,595)
(2,353)
Net operating income
18,672
19,038
     
Staff costs
(8,377)
(9,210)
Administration and general expenses
(6,219)
(6,934)
Operating expenses
(14,596)
(16,144)
     
Loss on disposal of undertakings and share of results of associates and joint ventures
(354)
(43)
Profit before tax
3,722
2,851
Tax
(1,496)
(1,040)
Profit after tax
2,226
1,811
     
Attributable to:
    
Ordinary equity holders of the parent
1,505
1,182
Other equity holders
170
-
Total equity holders
1,675
1,182
Non-controlling interests
551
629
Profit after tax
2,226
1,811
     
Earnings per Share from Continuing Operations
    
Basic earnings per ordinary share1
9.4p
8.7p
 
 
1 The profit after tax attributable to other equity holders of £170m (2013: £nil) is offset by a tax credit recorded in reserves of £36m (2013: £nil). The net amount of £134m, along with NCI, is deducted from profit after tax in order to calculate earnings per share.


Appendix III - Consolidated Summary Income Statement, Balance Sheet and Statement of Changes in Equity
 
Consolidated Summary Balance Sheet
      
 
As at
As at
As at
 
30.09.14
30.06.14
31.12.13
Assets
£m
£m
£m
Cash, balances at central banks and items in the course of collection
53,783
45,793
46,969
Trading portfolio assets
122,309
128,812
133,069
Financial assets designated at fair value
43,324
39,746
38,968
Derivative financial instruments
382,695
333,220
350,300
Available for sale financial investments
87,891
87,224
91,756
Loans and advances to banks
45,055
43,448
39,422
Loans and advances to customers
437,756
442,549
434,237
Reverse repurchase agreements and other similar secured lending
158,392
171,934
186,779
Goodwill and intangible assets
7,988
7,878
7,685
Other assets1
26,537
14,295
14,443
Total assets
1,365,730
1,314,899
1,343,628
       
Liabilities
      
Deposits and items in the course of collection due to banks
63,494
64,125
56,974
Customer accounts
441,612
443,638
431,998
Repurchase agreements and other similar secured borrowing
160,474
173,669
196,748
Trading portfolio liabilities
53,819
56,815
53,464
Financial liabilities designated at fair value
60,660
62,248
64,796
Derivative financial instruments
379,114
326,501
347,118
Debt securities in issue
87,736
83,832
86,693
Subordinated liabilities
20,418
19,301
21,695
Other liabilities1
31,875
19,745
20,193
Total liabilities
1,299,202
1,249,874
1,279,679
       
Equity
      
Called up share capital and share premium
20,730
20,655
19,887
Other reserves
827
(154)
249
Retained earnings
33,697
33,241
33,186
Shareholders' equity attributable to ordinary shareholders of the parent
55,254
53,742
53,322
Other equity instruments
4,317
4,326
2,063
Total equity excluding non-controlling interests
59,571
58,068
55,385
Non-controlling interests
6,957
6,957
8,564
Total equity
66,528
65,025
63,949
       
Total liabilities and equity
1,365,730
1,314,899
1,343,628
 
 
1 Other assets include £14bn of loans and other liabilities include £8bn of deposits relating to the Spanish business, which are now held for sale.


Appendix III - Consolidated Summary Income Statement, Balance Sheet and Statement of Changes in Equity
 
Consolidated Statement of Changes in Equity
               
Nine Months Ended 30.09.14
Called up Share Capital and Share Premium
Other Equity Instruments
Other Reserves1
Retained Earnings
Total
Non-controlling Interests
Total
Equity
 
£m
£m
£m
£m
£m
£m
£m
Balance at 1 January 2014
19,887
2,063
249
33,186
55,385
8,564
63,949
Profit after tax
-
170
-
1,505
1,675
551
2,226
Other comprehensive profit after tax for the period
-
-
625
296
921
(127)
794
Issue of shares
843
-
-
533
1,376
-
1,376
Issue and exchange of equity instruments
-
2,263
-
(155)
2,108
(1,527)
581
Dividends
-
-
-
(892)
(892)
(462)
(1,354)
Coupons paid on other equity instruments
-
(170)
-
36
(134)
-
(134)
Treasury shares
-
-
(47)
(794)
(841)
-
(841)
Other movements
-
(9)
-
(18)
(27)
(42)
(69)
Balance at 30 September 2014
20,730
4,317
827
33,697
59,571
6,957
66,528
               

 
 
               
Three Months Ended 30.09.14
Called up Share Capital and Share Premium
Other Equity Instruments
Other Reserves
Retained Earnings
Total
Non-controlling Interests
Total
Equity
 
£m
£m
£m
£m
£m
£m
£m
Balance at 1 July 2014
20,655
4,326
(154)
33,241
58,068
6,957
65,025
Profit after tax
-
80
-
379
459
161
620
Other comprehensive profit after tax for the period
-
-
961
112
1,073
(1)
1,072
Issue of shares
75
-
-
154
229
-
229
Issue and exchange of equity instruments
-
-
-
-
-
-
-
Dividends
-
-
-
(164)
(164)
(128)
(292)
Coupons paid on other equity instruments
-
(80)
-
17
(63)
-
(63)
Treasury shares
-
-
20
(19)
1
-
1
Other movements
-
(9)
-
(23)
(32)
(32)
(64)
Balance at 30 September 2014
20,730
4,317
827
33,697
59,571
6,957
66,528
               
 
1 Other Reserves includes currency translation reserve of £(1.3)bn, available for sale investments of £0.6bn, cash flow hedge reserve of £0.6bn and other reserves and treasury shares of £0.9bn.


Appendix IV - Capital
 
CRD IV Capital
 
The Capital Requirements Regulation and Capital Requirements Directive implemented Basel 3 within the EU (collectively known as CRD IV) on 1 January 2014. The rules are supplemented by Regulatory Technical Standards and the PRA's rulebook, including the implementation of transitional rules. However, rules and guidance are still subject to change as certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA and adopted by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules.
 
Capital Ratios
As at
As at
30.09.14
30.06.14
Fully Loaded Common Equity Tier 1
10.2%
9.9%
PRA Transitional Common Equity Tier 11
10.0%
9.8%
PRA Transitional Tier 1
12.9%
12.7%
PRA Transitional Total Capital
16.4%
16.0%
     
Capital Resources
£m
£m
Shareholders' equity (excluding non controlling interests) per the balance sheet
59,571
58,068
- Less: Other equity instruments (recognised as AT1 capital)
(4,317)
(4,326)
Adjustment to retained earnings for foreseeable dividends
(787)
(596)
     
Minority interests (amount allowed in consolidated CET1)
1,182
1,171
     
Other regulatory adjustments and deductions:
    
Additional value adjustments
(2,641)
(2,492)
Goodwill and intangible assets2
(7,953)
(7,828)
Deferred tax assets that rely on future profitability excluding temporary differences
(945)
(1,062)
Fair value reserves related to gains or losses on cash flow hedges2
(617)
(532)
Excess of expected losses over impairment
(1,914)
(2,036)
Gains or losses on liabilities at fair value resulting from own credit2
581
612
Other regulatory adjustments
(88)
(172)
Direct and indirect holdings by an institution of own CET1 instruments
(27)
(25)
Fully loaded CET1 capital
42,045
40,782
Regulatory adjustments relating to unrealised gains2
(604)
(513)
PRA Transitional CET1 capital
41,441
40,269
     
Additional Tier 1 (AT1) capital
    
Capital instruments and related share premium accounts
4,317
4,326
Qualifying AT1 capital (including minority interests) issued by subsidiaries
7,549
7,592
Less instruments issued by subsidiaries subject to phase out
(106)
(114)
Other regulatory adjustments and deductions
(6)
(28)
Transitional Additional Tier 1 capital
11,754
11,776
PRA Transitional Tier 1 capital
53,195
52,045
     
Tier 2 (T2) capital
    
Capital instruments and related share premium accounts
771
-
Qualifying T2 capital (including minority interests) issued by subsidiaries
13,856
13,783
Other regulatory adjustments and deductions
(93)
(85)
PRA Transitional Total regulatory capital
67,729
65,743
     
Risk weighted assets
412,892
410,987
 
 
1 The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays' Tier 2 Contingent Capital Notes was 12.1% based on £50bn of transitional CRD IV CET1 capital and £413bn RWAs.
2 The capital impacts of these items are net of tax.


Appendix IV - Capital
 
Movement in fully loaded Common Equity Tier 1 (CET1) Capital
Three Months
Ended
30.09.14
£m
Opening Common Equity Tier 1 capital
40,782
   
Profit for the period
459
Movement in own credit1
(31)
Movement in dividends
(418)
Retained regulatory capital generated from earnings
10
   
Movement in reserves - net impact of share awards
229
Movement in available for sale reserves
93
Movement in currency translation reserves
783
Movement in retirement benefits
113
Other reserves movements
(23)
Movement in other qualifying reserves
1,195
   
Minority interests
11
Additional value adjustments
(149)
Goodwill and intangible assets1
(125)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences
117
Excess of expected loss over impairment
122
Direct and indirect holdings by an institution of own CET1 instruments
(2)
Other regulatory adjustments
84
Movement in regulatory adjustments and deductions
58
   
Closing Common Equity Tier 1 capital
42,045
   
 
· The fully loaded Common Equity Tier 1 (CET1) ratio increased to 10.2% (June 2014: 9.9%) reflecting an increase in CET1 capital of £1.3bn to £42.0bn, due to
 
 
- £0.5bn of capital generated from profits in the period, largely offset by the impact of dividends paid and regulatory foreseeable dividends
 
 
- £0.8bn increase in the currency translation reserve as GBP weakened against USD
 
· Transitional total capital increased by £2bn to £67.7bn. In addition to the increases in CET1 there was a T2 capital issuance of $1.25bn of fixed rate subordinated notes
 
· RWAs remained broadly stable at £413bn (June 2014: £411bn), with growth across Core businesses and the impact of currency movements, partially offset by a decrease in Non-Core
 
· As at 30 September 2014, Barclays' fully loaded Tier 1 capital was £46,609m, and the fully loaded Tier 1 ratio was 11.3%. Fully loaded total regulatory capital was £63,482m and the fully loaded total capital ratio was 15.4%. The fully-loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV
 
· The PRA transitional capital is based on guidance provided in the December 2013 publication of PS 7/132, reflecting the minimum Capital Requirements Regulation (CRR) transitional path for the grandfathering of existing capital instruments within certain limits
 
1 The capital impacts of these items are net of tax.
2 PS 7/13 refers to PRA policy statement PS7/13 on strengthening capital standards published in December 2013.


Appendix V - Leverage
 
Leverage ratio requirements
 
On 10 October 2014, the European Commission adopted the delegated act to reflect the Basel Committee's revised standards for calculating the leverage ratio as outlined in BCBS 270. The adoption of the delegated act by the Commission triggered a three month scrutiny period, with the possibility of a further three month extension, within which the European Parliament or European Council can reject the act.
 
In June 2014, the PRA issued Supervisory Statement 3/13 which requires certain UK Banks to meet a 3% fully loaded leverage ratio based on the revised Basel 3 leverage calculation from 1 July 2014.
 
Barclays calculates its Basel 3 leverage ratio based on its understanding of the revised Basel standards and the requirements contained in the delegated act which reflect the most current understanding of implementation of the Basel standards in the European Union. The final rules may result in a different calculation methodology should the European Parliament or European Commission reject the delegated act.
 
Estimated BCBS 270 Leverage Impact
    
     
 
As at 30.09.14
As at 30.06.14
Leverage exposure
£bn
£bn
     
Accounting assets
    
Derivative financial instruments
383
333
Cash collateral
60
60
Reverse repurchase agreements
158
172
Loans and advances and other assets
765
750
Total IFRS assets
1,366
1,315
     
Derivatives adjustments
    
Derivatives netting
(345)
(298)
Adjustments to cash collateral
(42)
(31)
Net written credit protection
28
29
Potential Future Exposure on derivatives
195
195
Total derivatives adjustments
(164)
(105)
     
Securities financing transactions adjustments
34
56
     
Regulatory deductions and other adjustments
(22)
(18)
Weighted off balance sheet commitments
110
105
     
Total fully loaded leverage exposure
1,324
1,353
     
CRD IV common equity tier 1 capital
42.0
40.8
CRD IV additional tier 1 capital
4.6
4.6
CRD IV tier 1 capital
46.6
45.4
     
Fully loaded leverage ratio
3.5%
3.4%
 
· The BCBS 270 leverage exposure decreased by £29bn to £1,324bn
 
 
- IFRS derivatives increased £50bn to £383bn, which was broadly offset by a £47bn increase in allowable netting to £345bn. Eligible cash collateral netting increased £11bn to £42bn, driven by business activity and optimisations
 
 
- IFRS reverse repurchase agreements decreased £14bn to £158bn and Securities Financing Transactions (SFT) adjustments reduced £22bn to £34bn due to lower match book trading and optimisations
 
Appendix VI - Credit Risk
 
Analysis of Loans and Advances and Impairment
    
               
As at 30.09.14
Gross
L&A
Impairment Allowance
L&A Net of Impairment
Credit
Risk Loans
CRLs % of Gross L&A
Loan Impairment Charges1
Loan Loss Rates2
 
£m
£m
£m
£m
%
£m
bps
Personal & Corporate Banking
144,466
1,143
143,323
2,490
1.7
203
19
Africa Banking
20,897
694
20,203
1,124
5.4
217
139
Barclaycard
36,506
1,703
34,803
1,723
4.7
821
301
Barclays Core
201,869
3,540
198,329
5,337
2.6
1,241
82
               
Barclays Non-Core
23,464
554
22,910
1,489
6.3
137
52
Total Group Retail
225,333
4,094
221,239
6,826
3.0
1,378
78
               
Investment Bank
123,098
37
123,061
44
-
(21)
(2)
Personal & Corporate Banking
78,324
640
77,684
1,759
2.2
156
27
Africa Banking
16,219
249
15,970
631
3.9
53
44
Head Office and Other Operations
3,294
-
3,294
-
-
-
-
Barclays Core
220,935
926
220,009
2,434
1.1
188
11
               
Barclays Non-Core
42,157
594
41,563
938
2.2
61
19
Total Group Wholesale
263,092
1,520
261,572
3,372
1.3
249
13
               
Group Total
488,425
5,614
482,811
10,198
2.1
1,627
43
               
Traded Loans
2,285
n/a
2,285
        
Loans and advances designated at fair value
19,397
n/a
19,397
        
Loans and advances held at fair value
21,682
n/a
21,682
        
               
Total loans and advances
510,107
5,614
504,493
        
               
As at 30.06.14
              
Personal & Corporate Banking
143,839
1,302
142,537
2,648
1.8
133
19
Africa Banking
20,820
700
20,120
1,175
5.6
167
162
Barclaycard
34,854
1,607
33,247
1,606
4.6
537
311
Barclays Core
199,513
3,609
195,904
5,429
2.7
837
85
               
Barclays Non-Core
37,383
823
36,560
2,233
6.0
101
54
Total Group Retail
236,896
4,432
232,464
7,662
3.2
938
80
               
Investment Bank
117,259
31
117,228
43
-
(26)
(4)
Personal & Corporate Banking
80,451
611
79,840
1,852
2.3
97
24
Africa Banking
15,263
263
15,000
633
4.1
29
38
Head Office and Other Operations
2,496
-
2,496
-
-
-
-
Barclays Core
215,469
905
214,564
2,528
1.2
100
9
               
Barclays Non-Core
40,598
1,629
38,969
2,705
6.7
72
36
Total Group Wholesale
256,067
2,534
253,533
5,233
2.0
172
14
               
Group Total
492,963
6,966
485,997
12,895
2.6
1,110
45
               
Traded Loans
3,074
n/a
3,074
        
Loans and advances designated at fair value
18,454
n/a
18,454
        
Loans and advances held at fair value
21,528
n/a
21,528
        
               
Total loans and advances
514,491
6,966
507,525
        
 
 
1 Excludes impairment charges on available for sale investments and reverse repurchase agreements.
2 Loan Loss Rate calculation includes the gross loans and advances for Barclays Non-Core (Retail: £11,777m, Wholesale: £1,694m) that have been reclassified to held for sale following the agreement to sell the Spanish businesses to Caixabank S.A.
 
Appendix VII - Other Information
 
Other Information
  
   
Results Timetable1
Date
Ex-dividend date
6 November 2014
Dividend Record date
7 November 2014
Scrip reference share price set and made available to shareholders
13 November 2014
Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or Revocation Forms (as applicable)
21 November 2014
Dividend Payment date /first day of dealing in New Shares
12 December 2014
2014 Full Year Results Release and Audited Annual Report
3 March 2015
   
For qualifying US and Canadian resident ADR holders, the third interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the third interim dividend on 12 December 2014 to ADR holders on the record at close of business on 7 November 2014. The ex-dividend date will be 5 November 2014.

 
       
 
Nine Months Ended
Nine Months Ended
% Change3
Exchange Rates2
30.09.14
30.09.13
  
Period end - USD/GBP
1.62
1.62
0%
Average - USD/GBP
1.67
1.54
8%
3 Month Average - USD/GBP
1.67
1.55
8%
Period end - EUR/GBP
1.28
1.19
8%
Average - EUR/GBP
1.23
1.17
5%
3 Month Average - EUR/GBP
1.26
1.17
8%
Period end - ZAR/GBP
18.32
16.21
13%
Average - ZAR/GBP
17.87
14.62
22%
3 Month Average - ZAR/GBP
17.98
15.48
16%
       
Share Price Data
30.09.14
30.06.14
30.09.13
Barclays PLC (p)
227.45
212.80
265.50
Barclays PLC number of shares (m)
16,453
16,417
16,113
Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)
154.13
161.50
147.40
Barclays Africa Group Limited (formerly Absa Group Limited) number of shares (m)
848
848
 
848
       
For further information please contact
      
       
Investor Relations
Media Relations
    
Charlie Rozes +44 (0) 20 7116 5752
Giles Croot +44 (0) 20 7116 6132
       
More information on Barclays can be found on our website: Barclays.com
  
       
Registered Office
      
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839
       
Registrar
      
The Registrar to Barclays, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.
Tel: 0871 384 20554 from the UK or +44 121 415 7004 from overseas.
      
       
 
1 Note that these announcement dates are provisional and subject to change. Any changes to the Scrip Dividend Programme dates will be made available at Barclays.com/dividends.
2 The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into GBP for accounting purposes.
3 The change is the impact to GBP reported information.
4 Calls cost 8p per minute plus network extras. Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding UK public holidays.