barc201507296k.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
 
July 29, 2015
 
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
 
 
 Half Yearly Report - 29/07/2015







 




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: July 29, 2015
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Deputy Secretary
 
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: July 29, 2015
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Joint Secretary
 
 
 
 

 

 
 
Barclays PLC
Results Announcement
 
30 June 2015
 
 
Table of Contents
Results Announcement
 
  
Performance Highlights
 
  
Executive Chairman's Review
 
  
Group Finance Director's Review
 
  
Results by Business
 
  
·     Personal and Corporate Banking
 
  
·  Barclaycard
 
  
·  Africa Banking
 
  
·  Investment Bank
 
  
·  Head Office
 
  
·  Barclays Non-Core
 
  
Quarterly Results Summary
 
  
Quarterly Core Results by Business
 
  
Performance Management
 
  
·  Returns and equity by business
 
  
·  Margins and balances
 
  
Risk Management
 
  
·  Overview
 
  
·  Funding Risk - Liquidity
 
  
·  Funding Risk - Capital
 
  
·  Credit Risk
 
  
·  Market Risk
 
  
Statement of Directors' Responsibilities
 
  
Independent Auditors' Review Report to Barclays PLC
 
  
Condensed Consolidated Financial Statements
 
  
Financial Statement Notes
 
  
Shareholder Information
 
  




 
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 six months to 30 June 2015 to the corresponding six months of 2014 and balance sheet analysis as at 30 June with comparatives relating to 31 December 2014. The abbreviations '£m' and '£bn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively; and '€m' and '€bn' represent millions and thousands of millions of Euros respectively.
 
Comparatives pre Q214 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.
 
References throughout this document to 'provisions for ongoing investigations and litigation primarily relating to Foreign Exchange' means 'provisions held for certain aspects of ongoing investigations involving certain authorities and litigation primarily relating to Foreign Exchange.'
 
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; goodwill impairment; provisions for UK customer redress; gain on US Lehman acquisition assets; provisions for ongoing investigations and litigation primarily relating to Foreign Exchange; loss on sale of the Spanish business; Education, Social Housing, and Local Authority (ESHLA) valuation revision; and gain on valuation of a component of the defined retirement benefit liability. 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 28 July 2015 does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2014, 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 with 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.
 
Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.
 
Forward-looking statements
 
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. 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 strategic cost programme and the 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, 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 any entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implementation of the strategic cost 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 which may impact the Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2014), which are available on the SEC's website at http://www.sec.gov.
 
Subject to our obligations under the applicable  laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise.
 
Performance Highlights
 
Continued progress on our strategy:
 
·     11% growth in Group adjusted profit before tax to £3,729m reflecting improvements in all Core operating businesses. Group adjusted return on average shareholders' equity increased to 7.7% (H114: 6.5%)
 
·     Solid return on average equity performance across the businesses resulted in an increase in Core return on average equity to 11.1% (H114: 11.0%), driven by a 10% increase in profit before tax to £4,241m through         positive cost to income jaws, with an increase in average allocated equity of £6bn to £47bn
 
·     Further run down of the Non-Core business, with risk weighted assets (RWAs) decreasing to £57bn (December 2014: £75bn). Non-Core dilution of the Group's return on average equity was 3.4% (2014: 4.5%), having        reduced average allocated equity by £4bn to £10bn
 
·     Strong progress on capital and leverage, with the fully loaded common equity tier 1 (CET1) ratio increasing to 11.1% (December 2014: 10.3%) and the leverage ratio increasing to 4.1% (December 2014: 3.7%), achieving        our 2016 targets
 
·     A 7% reduction in total adjusted operating expenses to £8,262m and a 5% reduction in operating expenses excluding costs to achieve to £7,946m, driven by savings from strategic cost programmes
 
·     Progress on legacy litigation and conduct matters, with settlements of £1,608m reached with a number of authorities in Q215 in relation to industry-wide investigations into certain sales and trading practices in the Foreign       Exchange market and an industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark
 
·     Net tangible asset value per share decreased to 279p (December 2014: 285p) as profit generated for the period was more than offset by dividend distributions and the impact of changes in major forward interest rates and        currency movements on reserves
 
·     Statutory profit before tax increased 25% to £3,114m, which included a net loss in adjusting items of £615m (H114: £848m)
 
Material adjusting items:
 
·     Additional provisions of £800m (H114: £nil) were made in H115 for ongoing investigations and litigation primarily relating to Foreign Exchange, taking the total provisions to £2,050m
 
·     Additional UK customer redress provisions of £1,032m (H114: £900m) were taken based on an updated estimate of future redress and associated costs. This included an additional provision of £850m recognised in Q215
 
·     A £496m (H114: £nil) gain on US Lehman acquisition assets was recognised in Q215 reflecting a settlement to resolve outstanding litigation with the Trustee of Lehman Brothers Inc.
 
·     A £429m (H114: £nil) gain was recognised in Q115 as the valuation of a component of the defined retirement benefit liability was aligned to statutory provisions
 
·     A £118m (H114: £nil) loss was recognised in Q115 primarily relating to accumulated currency translation reserves recycled upon the completion of the Spanish business sale
 
 
Barclays Group results
Adjusted
  
Statutory
for the six months ended
30.06.15
30.06.14
    
30.06.15
30.06.14
  
 
£m
£m
% Change
  
£m
£m
% Change
Total income net of insurance claims
12,982 
13,332 
(3)
  
13,888 
13,384 
4 
Credit impairment charges and other provisions
(973)
(1,086)
10 
  
(973)
(1,086)
10 
Net operating income
12,009 
12,246 
(2)
  
12,915 
12,298 
5 
Operating expenses
(7,812)
(8,172)
4 
  
(7,383)
(8,172)
10 
Litigation and conduct
(134)
(211)
36 
  
(1,966)
(1,111)
(77)
Operating expenses excluding costs to achieve
(7,946)
(8,383)
5 
  
(9,349)
(9,283)
(1) 
Costs to achieve
(316)
(494)
36 
  
(316)
(494)
36 
Total operating expenses
(8,262)
(8,877)
7 
  
(9,665)
(9,777)
1 
Other net expenses
(18)
(20)
10 
  
(136)
(20)
  
Profit before tax
3,729 
3,349 
11 
  
3,114 
2,501 
25 
Tax charge1 
(1,077)
(1,109)
3 
  
(1,006)
(895)
(12)
Profit after tax
2,652 
2,240 
18 
  
2,108 
1,606 
31 
Non-controlling interests
(338)
(390)
13 
  
(338)
(390)
13 
Other equity interests2 
(159)
(90)
(77)
  
(159)
(90)
(77)
Attributable profit
2,155 
1,760 
22 
  
1,611 
1,126 
43 
               
Performance measures
              
Return on average tangible shareholders' equity2 
9.1%
7.5%
    
6.9%
4.9%
  
Average tangible shareholders' equity (£bn)
48 
47 
    
48 
47 
  
Return on average shareholders' equity2 
7.7%
6.5%
    
5.9%
4.2%
  
Average shareholders' equity (£bn)
56 
55 
    
56 
54 
  
Cost: income ratio
64%
67%
    
70%
73%
  
Loan loss rate (bps)
40 
45 
    
40 
45 
  
               
Basic earnings per share2 
13.1p
10.9p
    
9.9p
7.0p
  
Dividend per share
2.0p
2.0p
    
2.0p
2.0p
  
               
Balance sheet and leverage
        
30.06.15
31.12.14
  
Net tangible asset value per share
        
279p
285p
  
Net asset value per share
        
328p
335p
  
Leverage exposure
        
£1,139bn
£1,233bn
  
               
Capital management
        
30.06.15
31.12.14
  
CRD IV fully loaded
              
Common equity tier 1 ratio
        
11.1%
10.3%
  
Common equity tier 1 capital
        
£42.0bn
£41.5bn
  
Tier 1 capital
        
£46.5bn
£46.0bn
  
Risk weighted assets
        
£377bn
£402bn
  
Leverage ratio
        
4.1%
3.7%
  
               
Funding and liquidity
        
30.06.15
31.12.14
  
Group liquidity pool
        
£145bn
£149bn
  
Estimated CRD IV liquidity coverage ratio
        
121%
124%
  
Loan: deposit ratio3 
        
88%
89%
  
               
Adjusted profit reconciliation for the six months ended
    
30.06.15
30.06.14
  
Adjusted profit before tax
        
3,729 
3,349 
  
Own credit
        
410 
52 
  
Gain on US Lehman acquisition assets
        
496 
- 
  
Gain on valuation of a component of the defined retirement benefit liability
    
429 
- 
  
Provisions for ongoing investigations and litigation primarily relating to Foreign Exchange
  
(800)
- 
  
Provisions for UK customer redress
        
(1,032)
(900)
  
Loss on sale of the Spanish business
        
(118)
- 
  
Statutory profit before tax
        
3,114 
2,501 
  
 
1
The effective tax rate for H115 is the expected full year rate adjusted for the impact of significant one-off items.  The tax impacts of such items, which include adjusting items and the UK bank levy, are recognised in the period in which they occur.    
2
The profit after tax attributable to other equity holders of £159m (H114: £90m) is offset by a tax credit recorded in reserves of £32m (H114: £19m). The net amount of £127m (H114: £71m), 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.
3
Loan: deposit ratio for PCB, Barclaycard, Africa Banking and Non-Core retail.
 
Barclays Core and Non-Core
Barclays Core
  
Barclays Non-Core
results for the six months ended
30.06.15
30.06.14
    
30.06.15
30.06.14
  
 
£m
£m
% Change
  
£m
£m
% Change
Total income net of insurance claims
12,940 
12,674 
2 
  
42 
658 
(94)
Credit impairment charges and other provisions
(936)
(937)
- 
  
(37)
(149)
75 
Net operating income
12,004 
11,737 
2 
  
5 
509 
(99)
Operating expenses
(7,359)
(7,314)
(1)
  
(453)
(860)
47 
Litigation and conduct
(89)
(177)
50 
  
(45)
(33)
(36)
Costs to achieve
(293)
(453)
35 
  
(23)
(41)
44 
Total operating expenses
(7,741)
(7,944)
3 
  
(521)
(934)
44 
Other net (expenses)/income
(22)
47 
    
4 
(66)
  
Profit/(loss) before tax
4,241 
3,840 
10 
  
(512)
(491)
(4)
Tax (charge)/credit
(1,250)
(1,233)
(1)
  
173 
124 
40 
Profit/(loss) after tax 
2,991 
2,607 
15 
  
(339)
(367)
8 
Non-controlling interests
(306)
(315)
3 
  
(32)
(75)
57 
Other equity interests
(128)
(68)
(88)
  
(31)
(22)
(41)
Attributable profit/(loss)
2,557 
2,224 
15 
  
(402)
(464)
13 
               
Performance measures
              
Return on average tangible equity1 
13.4%
13.5%
    
(4.3%)
(6.0%)
  
Average allocated tangible equity (£bn)
39 
33 
    
10 
14 
  
Return on average equity1 
11.1%
11.0%
    
(3.4%)
(4.5%)
  
Average allocated equity (£bn)
47 
41 
    
10 
14 
  
Period end allocated equity (£bn)
47 
42 
    
8 
13 
  
Cost: income ratio
60%
63%
    
n/m
n/m
  
Loan loss rate (bps)
44 
46 
    
10 
45 
  
Basic earnings per share contribution
15.5p
13.8p
    
(2.4p)
(2.9p)
  
               
Capital management
30.06.15
31.12.14
    
30.06.15
31.12.14
  
Risk weighted assets
£320bn
£327bn
    
£57bn
£75bn
  
Leverage exposure
£973bn
£956bn
    
£166bn
£277bn
  
               
 

 
30.06.15
30.06.14
  
Income by business
£m
£m
% Change
Personal and Corporate Banking
4,384 
4,361 
1 
Barclaycard
2,357 
2,124 
11 
Africa Banking
1,858 
1,773 
5 
Investment Bank
4,299 
4,257 
1 
Head Office  
42 
159 
(74)
Barclays Core
12,940 
12,674 
2 
Barclays Non-Core
42 
658 
(94)
Barclays Group adjusted total income
12,982 
13,332 
(3)
       
 
30.06.15
30.06.14
  
Profit/(loss) before tax by business
£m
£m
% Change
Personal and Corporate Banking
1,528 
1,468 
4 
Barclaycard
795 
764 
4 
Africa Banking
540 
484 
12 
Investment Bank
1,440 
1,058 
36 
Head Office  
(62)
66 
  
Barclays Core
4,241 
3,840 
10 
Barclays Non-Core
(512)
(491)
(4)
Barclays Group adjusted profit before tax
3,729 
3,349 
11 
       
 
1
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.
 
 
Executive Chairman's Review
 
"The results reported today represent continued good progress for the business.
 
Group profits are up on both an adjusted and statutory basis, and our core franchises have performed well. Non-Core rundown continues, costs remain under control, and we continue to seek to put conduct issues behind us. We announced settlements with certain authorities in the first half in respect of Foreign Exchange and ISDAFIX, although there is more to resolve. I am pleased that our CET1 and leverage ratios are now above 11% and 4% respectively. These are satisfactory, although we will continue to build capital in the medium-term, balancing the need to fund growth with the need to strengthen the ratios.
 
Barclays today has a good portfolio of businesses. However, we need to accelerate the execution of the strategy. There is more that can be done to deliver better returns for shareholders, faster, and that work has begun under three Group priorities which I have established since becoming Executive Chairman earlier this month.
 
Our first priority is to deliver on our strategy, with increased focus on our core franchises: what we are good at, where we are good at it and what is financially compelling to us.
 
That means aligning our effort and investment behind our key franchises of UK personal and commercial banking, investment banking in Europe and the US, our cards business, and on Africa. We will also act quickly to curtail activity which is marginal or which will not deliver the return on equity we require.
 
A sensibly planned faster run-down of Barclays Non-Core will be implemented, resulting in it having around £20bn of RWAs in 2017 when we expect to reintegrate it into the Core.
 
I am personally pleased with recent progress in the Investment Bank.  It has generated a double-digit return in H1, and the challenge for the team is to convert this performance into sustainable economic returns through subsequent periods. 
 
The second major priority of the group is to accelerate the delivery of shareholder value.
 
It was particularly pleasing this half to a see strong recovery in earnings, broadly flat costs on a statutory basis, a CET1 ratio that has risen above 11% for the first time and a leverage ratio above 4%, both achieving our 2016 targets. 
 
However, the Group return on equity is 5.9% on a statutory basis, well short of our cost of equity, and our cost-income ratio is 70%, which is high for our business mix.
 
We need to accelerate growth in earnings, return on equity, and capital generation. To do this, we intend to grow revenues at least in line with the market, reduce our Group cost-income ratio into the mid 50s, accrete and deploy capital wisely, and thereby over time achieve a Group return on equity above our cost of equity.
 
The Board has concluded that it is appropriate to plan for a 6.5p dividend for 2015, the same level as 2014, as we focus on improving the returns of the business and accelerating the implementation of the strategy, while maintaining capital strength. Over time, rather than targeting a particular payout ratio range, we will aim to maintain a sustainable and progressive dividend policy, recognising the importance of dividend yield in delivering returns to shareholders.
 
I am not issuing new targets for the Group, but can confirm that we will adhere to our remaining targets.  Now that we have achieved an 11% CET1 ratio, we would like this to continue to improve over time so that we reach our end state. 
 
The third priority is to instil a high performance ethic and process across the Group, underpinned by an enhanced values driven culture. We need to be much more customer and client orientated in our approach, to streamline and eliminate unnecessary and cumbersome bureaucracy, and to embed direct accountability for activities within our businesses. Crucially we must do this in a way which is consistent with our values, and with strong controls in place, so that we build this business in the right way.
 
There is a lot we can do to accelerate our progress and the work has already begun."
 
John McFarlane, Executive Chairman
 
 
Group Finance Director's Review
 
 
Income statement
 
Group performance
 
·     Adjusted profit before tax increased 11% to £3,729m reflecting improvements in all Core operating businesses
 
·     Adjusted income decreased 3% to £12,982m as Non-Core income reduced £616m to £42m. This was partially offset by Core income increasing 2% to £12,940m
 
·     Impairment reduced 10% to £973m, with the Group loan loss rate improving 5bps to 40bps
 
·     Adjusted total operating expenses were down 7% to £8,262m as a result of savings from strategic cost programmes, particularly in Non-Core and the Investment Bank. Costs to achieve were £316m (H114: £494m) and litigation and        conduct charges were £134m (H114: £211m)
 
·     Statutory profit before tax was £3,114m (H114: £2,501m) which also included an additional £1,032m (H114: £900m) of provisions for UK customer redress, a £496m gain (H114: £nil) on US Lehman acquisition assets, £800m (H114:        £nil) of additional provisions for ongoing investigations and litigation primarily relating to Foreign Exchange, a £429m (H114: £nil) gain on the valuation of a component of the defined retirement benefit liability, a £118m (H114:        £nil) loss on the sale of the Spanish business and an own credit gain of £410m (H114: £52m)
 
·     The effective tax rate on adjusted profit before tax decreased to 28.9% (H114: 33.1%) and on statutory profit before tax decreased to 32.3% (H114: 35.8%). The reduction reflects the expected full year rate adjusted for the impact of        significant one-off items, including adjusting items and the UK bank levy, which is recognised in the period in which they occur
 
·     Adjusted attributable profit was £2,155m (H114: £1,760m) resulting in an adjusted return on average shareholders' equity of 7.7% (H114: 6.5%)
 
 
Core performance
 
·     Profit before tax increased 10% to £4,241m with improvements of 36% to £1,440m in the Investment Bank, 12% to £540m in Africa Banking, 4% to £1,528m in Personal and Corporate Banking (PCB) and 4% to £795m in Barclaycard 
 
·     Income increased 2% to £12,940m
 
 
-    Barclaycard income increased 11% to £2,357m reflecting growth in US cards and Business Solutions
 
 
-    Africa Banking income increased 5% to £1,858m reflecting strong growth in Retail and Business Banking (RBB) due to the continued progress on the retail banking turnaround in South Africa
 
 
-    PCB income increased 1% to £4,384m due to good growth in Corporate, partially offset by a reduction in Personal income due to mortgage margin pressure
 
 
-    Net interest income in PCB, Barclaycard and Africa Banking increased 7% to £5,975m driven by lending and deposit growth and margin improvement in PCB, and volume growth in Barclaycard and Africa Banking. Net
     interest margin increased 11bps to 4.17%
 
 
-    Investment Bank income increased 1% to £4,299m reflecting an improvement in Macro income due to higher income in rates and currency products, and an increase in Equities income, partially offset by lower Banking and
     Credit income
 
·     Credit impairment charges were in line at £936m (H114: £937m). This reflected lower impairments in PCB due to the improving UK economic environment resulting in lower default rates and charges in Corporate, offset by an
       increase of 5% in Barclaycard which was accompanied by loans and advances growth of 11% from June 2014. The loan loss rate reduced 2bps to 44bps
 
·     Total operating expenses decreased 3% to £7,741m, reflecting savings from strategic cost programmes, principally in the Investment Bank and lower costs to achieve of £293m (2014: £453m). Barclaycard total operating expenses
       increased 19% to £1,017m primarily due to continued investment in business growth and the impact of one-off items, including certain marketing costs and the non-recurrence of a H114 VAT refund
 
·     Attributable profit increased 15% to £2,557m, while average allocated equity increased £6bn to £47bn as capital was redeployed from Non-Core, resulting in an increase in Core return on average equity to 11.1% (H114: 11.0%)
 
Non-Core performance
 
·     Loss before tax increased to £512m (H114: £491m) reflecting:
 
 
-    A reduction in income of £616m to £42m following assets and securities run-down, business disposals including the impact of the sale of the Spanish business, and fair value losses on the Education, Social Housing, and
     Local Authority (ESHLA) portfolio of £175m (H114: £29m)
 
 
-    An improvement in impairment to £37m (H114: £149m) primarily reflecting the sale of the Spanish business and higher recoveries in Europe
 
 
-    A 44% reduction in total operating expenses to £521m due to savings from strategic cost programmes, the sale of the Spanish business and reduced costs to achieve
 
·     Non-Core return on average equity dilution was 3.4% (H114: 4.5%) reflecting a reduction in average allocated equity to £10bn (H114: £14bn). Period end allocated equity reduced to £8bn (December 2014: £11bn)
 
Balance sheet and capital
 
Balance sheet
 
·     Total assets decreased 12% to £1,197bn compared to 31 December 2014, primarily due to reductions in derivatives and reverse repurchase agreements
 
 
-    Total loans and advances increased £5bn to £475bn as a net £8bn increase in settlement and cash collateral balances was partially offset by a £3bn decrease due to the run-down of European retail assets within Non-Core
 
·     Customer accounts increased £11bn to £438bn primarily due to a £12bn increase within the Investment Bank as a result of higher settlement balances, partially offset by a £2bn decrease in Non-Core due to the run-down of the        business  
 
·     Total shareholders' equity including non-controlling interests was £65.6bn (December 2014: £66.0bn). Excluding non-controlling interests, shareholders' equity was £59.3bn (December 2014: £59.6bn) reflecting a reduction in other        reserves of £1.4bn including a £0.6bn decrease in the cash flow hedging reserve, due to the impact of forward interest rate movements, and a £0.5bn decrease in the currency translation reserve as GBP strengthened against ZAR,        EUR and USD. This was partially offset by a £0.7bn increase in share capital and share premium, due to the issuance of shares under employee share schemes and scrip dividends, and an increase of £0.4bn in retained earnings        due to generated profit of £1.8bn offset by £0.7bn of dividends paid and £0.7bn of shares vesting in relation to employee share schemes
 
·     Net asset value and net tangible asset value per share decreased to 328p (December 2014: 335p) and 279p (December 2014: 285p) respectively as profit generated for the period was more than offset by the overall decrease in        shareholders' equity as detailed above
 
Leverage exposure
 
·     Leverage exposure decreased £94bn to £1,139bn driven by:
 
 
-    Securities Financing Transactions decreased by £40bn, primarily due to IFRS reverse repurchase agreements reducing £39bn to £93bn. This was driven by reductions in matched book trading as the balance sheet was
     deleveraged  
 
 
-    The Potential Future Exposure (PFE) on derivatives decreased £19bn to £160bn, mainly as a result of continued legacy portfolio run down and optimisation including trade compressions and tear-ups
 
 
-    Derivative leverage exposure, excluding PFE, decreased £26bn partly due to a decrease in IFRS assets of £99bn to £341bn, offset by a decrease in derivative netting of £87bn to £308bn. These decreases were primarily due
     to increases in major forward rate curves and continued legacy portfolio run down
 
Capital ratios
 
·     The fully loaded CRD IV CET1 ratio increased to 11.1% (December 2014: 10.3%) due to a £25bn reduction in RWAs to £377bn and an increase in the fully loaded CRD IV CET1 capital of £0.5bn to £42.0bn
 
 
-    The increase in CET1 capital was driven by £1.8bn profits after absorbing adjusting items. After further adjusting for the impacts of own credit and regulatory dividends paid and foreseen, capital generated from earnings
     increased CET1 capital by £0.3bn
 
 
-    The reduction in RWAs was primarily driven by the reduction in Non-Core of £19bn to £57bn including the sale of the Spanish business, run-down of legacy structured and credit products, and a £7bn reduction in the
     Investment Bank driven by risk reduction in the trading book
 
·    The leverage ratio increased to 4.1% (December 2014: 3.7%) driven by a decrease in the leverage exposure to £1,139bn (December 2014: £1,233bn) 
 
Funding and liquidity
 
·     The Group continued to maintain surpluses to its internal and regulatory requirements in H115 with a liquidity pool of £145bn (December 2014: £149bn). The Liquidity Coverage Ratio (LCR) decreased to 121% (December 2014:        124%), equivalent to a surplus of £26bn (December 2014: £30bn). The surpluses were built to position the Group for outflows associated with credit rating changes as a result of credit rating agencies' assessment of sovereign        support.  Whilst the ratings changes occurred during Q215, the expected funding impacts had not fully materialised by the end of H115
 
·     Wholesale funding outstanding excluding repurchase agreements was £157bn (December 2014: £171bn). The Group issued £6bn of term funding net of early redemptions during H115, of which £3bn was in senior unsecured debt        issued by the holding company, Barclays PLC. These proceeds have been used to subscribe for senior unsecured debt at Barclays Bank PLC, the operating company. This demonstrates further progress on the transition towards        a holding company capital and funding model
 
Other matters
 
·     Provisions of £484m (December 2014: £1,690m) are held for Legal, Competition and Regulatory matters
 
 
-    Additional provisions of £800m (H114: £nil) were made for ongoing investigations and litigation primarily relating to Foreign Exchange, taking the total provisions recognised to £2,050m. Settlements of £1,608m were reached
     in Q215 with a number of authorities in relation to industry-wide investigations into certain sales and trading practices in the Foreign Exchange market and an industry-wide investigation into the setting of the US Dollar
     ISDAFIX benchmark
 
·     Additional UK customer redress provisions of £1,032m (H114: £900m) were recognised including £850m in Q215. This includes additional charges for PPI redress based on an updated estimate of future redress costs of £750m
      (H114: £900m), £600m of which was recognised in Q215. As at June 2015 the PPI redress provision held was £1,268m (December 2014: £1,059m)
 
·     A £496m (H114: £nil) gain on US Lehman acquisition assets was recognised in Q215. Barclays has reached a settlement with the Securities Investor Protection Act Trustee for Lehman Brothers Inc. (LBI) to resolve outstanding
       litigation between the parties relating to the acquisition of most of the assets of LBI in September 2008
 
·     A £429m (H114: £nil) gain was recognised in Q115 as the valuation of a component of the defined retirement benefit liability was revised to use the long term Consumer Price Index rather than the Retail Price Index, consistent with
       statutory provisions
 
·     A £118m (H114: £nil) loss was recognised in Q115 primarily relating to accumulated currency translation reserves recycled upon the completion of the Spanish business sale
 
Dividends
 
·     The Board recognises the importance of paying returns to shareholders by way of dividends and expects to deliver, over time, a dividend that is sustainable and progressive rather than targeting a particular payout ratio range
 
·     For 2015, the Board has concluded that it is appropriate to plan for a 6.5p distribution, the same level as 2014, while we focus on improving the returns of the business and accelerating the implementation of the strategy whilst
       maintaining capital strength
 
·     A second interim dividend of 1p will be paid on 14 September 2015
 
Barclays Non-Core Guidance
 
 
·     We have made significant progress in running down Barclays Non-Core since it was established as a separate unit in 2014.  Non-Core RWAs have been reduced from £110bn in December 2013 to £57bn, resulting in an equity
       allocation of £8.3bn as at June 2015, 15% of the Group total and down from £15.1bn as at December 2013
 
·     We now have greater visibility as to the options available to us in order to reduce Non-Core's influence on the Group's financial results through lower capital requirements and operating losses.  We therefore plan to reduce Non
       Core RWAs to around £20bn by the end of 2017, at which point we expect the Non-Core unit will be reintegrated into the Core business where it will continue to be managed down.  This revised guidance replaces previous
       guidance of reducing Non-Core RWAs to £45bn at the end of 2016
 
Tushar Morzaria, Group Finance Director
 
Results by Business
Personal and Corporate Banking
Half year ended
  
Half year ended
  
 
30.06.15
  
30.06.14
YoY
Income statement information
£m
  
£m
% Change
Net interest income
3,203 
  
3,057 
5 
Net fee, commission and other income
1,181 
  
1,304 
(9)
Total income
4,384 
  
4,361 
1 
Credit impairment charges and other provisions
(178)
  
(230)
23 
Net operating income
4,206 
  
4,131 
2 
Operating expenses
(2,466)
  
(2,525)
2 
Litigation and conduct
(25)
  
(29)
14 
Costs to achieve
(139)
  
(115)
(21)
Total operating expenses
(2,630)
  
(2,669)
1 
Other net (expenses)/income
(48)
  
6 
  
Profit before tax
1,528 
  
1,468 
4 
Attributable profit
1,102 
  
1,039 
6 
         
 
As at 30.06.15
  
As at 31.12.14
As at 30.06.14
Balance sheet information
£bn
  
£bn
£bn
Loans and advances to customers at amortised cost
217.5 
  
217.0 
216.7 
Total assets
289.9 
  
285.0 
268.1 
Customer deposits
298.5 
  
299.2 
298.3 
Risk weighted assets
120.6 
  
120.2 
117.9 
         
 
Half year ended
  
Half year ended
  
Key facts
30.06.15
  
30.06.14
  
Average LTV of mortgage lending1 
51%
  
55%
  
Average LTV of new mortgage lending1 
62%
  
64%
  
Client assets2 
£142.6bn
  
£151.3bn
  
Number of branches
1,448 
  
1,546 
  
         
Performance measures
        
Return on average tangible equity
16.4%
  
16.1%
  
Average allocated tangible equity (£bn)
13.6 
  
13.0 
  
Return on average equity
12.3%
  
12.1%
  
Average allocated equity (£bn)
18.1 
  
17.3 
  
Cost: income ratio
60%
  
61%
  
Loan loss rate (bps)
16 
  
21 
  
         
       
YoY
Analysis of total income
£m
  
£m
% Change
Personal
2,014 
  
2,053 
(2)
Corporate
1,877 
  
1,768 
6 
Wealth
493 
  
540 
(9)
Total income
4,384 
  
4,361 
1 
         
 
As at 30.06.15
  
As at 31.12.14
As at 30.06.14
Analysis of loans and advances to customers at amortised cost
£bn
  
£bn
£bn
Personal
137.8 
  
136.8 
135.9 
Corporate
66.0 
  
65.1 
64.8 
Wealth
13.7 
  
15.1 
16.0 
Total loans and advances to customers at amortised cost
217.5 
  
217.0 
216.7 
         
Analysis of customer deposits
        
Personal
146.3 
  
145.8 
141.6 
Corporate
120.3 
  
122.2 
123.7 
Wealth
31.9 
  
31.2 
33.0 
Total customer deposits
298.5 
  
299.2 
298.3 
         
 
1
Average LTV of mortgage lending and new mortgage lending calculated on the balance weighted basis.
2
Includes assets managed or administered by Barclays on behalf of clients including assets under management (AUM), custody assets, assets under administration, and Wealth client deposits and client lending.
 
Personal and Corporate Banking     
 
Income statement - H115 compared to H114
 
·     Profit before tax increased 4% to £1,528m with a return on average equity of 12.3% (H114: 12.1%). Total operating expenses reduced due to increased automation and the net closure of 98 branches. Operating expenses were also
       impacted by investment in digital and the customer experience across multiple channels. Impairment reduced due to the improving economic environment in the UK
 
·     PCB results were significantly impacted by £171m of charges in Wealth relating to customer redress in the US and the announced disposal of the US business. Income was impacted by £29m, operating expenses by £87m of which
       £56m were costs to achieve, and other net expenses included a £55m loss on sale
 
·     Total income increased 1% to £4,384m
 
 
-    Personal income reduced 2% to £2,014m due to mortgage margin pressure from existing customer rate switching and lower fee income, partially offset by balance growth and improved savings margins
 
 
-    Corporate income increased 6% to £1,877m with balance growth in both average lending and deposits, and improved deposits margins, partially offset by lending margin compression
 
 
-    Wealth income reduced 9% to £493m primarily as a result of the impact of customer redress in the US
 
 
-    Net interest income increased 5% to £3,203m driven by margin improvement, lending and deposit growth and the launch of a revised overdraft proposition in H214, which recognises the majority of overdraft income as net
     interest income as opposed to fee income
 
 
-    Net interest margin improved 5bps to 3.01% due to higher deposit margins within Corporate and Personal. This was partially offset by the impact of mortgage margin pressure from existing customer rate switching
 
 
-    Net fee, commission and other income reduced 9% to £1,181m due to the launch of the revised overdraft proposition in H214 and the impact of customer redress in the US
 
·     Credit impairment charges improved 23% to £178m and the loan loss rate reduced 5bps to 16bps due to the improving economic environment in the UK, particularly impacting Corporate which benefited from lower defaults of large
       UK Corporate clients
 
·     Total operating expenses reduced 1% to £2,630m. This reflected savings realised from strategic cost programmes relating to restructuring of the branch network and technology improvements to increase automation, partially
       offset by costs to achieve of £56m relating to the announced disposal of the US Wealth business
 
·     Client assets decreased £8.7bn to £142.6bn primarily due to the announced disposal of the US Wealth business and ongoing strategic market exits 
 
 
Balance sheet - 30 June 2015 compared to 31 December 2014
 
·     Loans and advances to customers increased £0.5bn to £217.5bn due to growth in mortgages and Corporate lending
 
·     Total assets increased £4.9bn to £289.9bn primarily driven by an increase in the allocation of liquidity pool assets and the growth in loans and advances to customers
 
·     Customer deposits decreased £0.7bn to £298.5bn
 
·     RWAs increased £0.4bn to £120.6bn primarily driven by growth in mortgages and Corporate lending
 

Barclaycard
Half year ended
  
Half year ended
  
 
30.06.15
  
30.06.14
YoY
Income statement information
£m
  
£m
% Change
Net interest income
1,704 
  
1,500 
14 
Net fee, commission and other income
653 
  
624 
5 
Total income
2,357 
  
2,124 
11 
Credit impairment charges and other provisions
(563)
  
(537)
(5)
Net operating income
1,794 
  
1,587 
13 
Operating expenses
(961)
  
(822)
(17)
Costs to achieve
(56)
  
(36)
(56)
Total operating expenses
(1,017)
  
(858)
(19)
Other net income
18 
  
35 
(49)
Profit before tax
795 
  
764 
4 
Attributable profit
566 
  
539 
5 
         
 
As at 30.06.15
  
As at 31.12.14
As at 30.06.14
Balance sheet information
£bn
  
£bn
£bn
Loans and advances to customers at amortised cost
36.9 
  
36.6 
33.2 
Total assets
41.9 
  
41.3 
36.2 
Customer deposits 
7.7 
  
7.3 
5.9 
Risk weighted assets
40.3 
  
39.9 
37.7 
         
 
Half year ended
  
Half year ended
  
Key facts
30.06.15
  
30.06.14
  
30 day arrears rates - UK cards
2.4%
  
2.4%
  
30 day arrears rates - US cards
1.9%
  
1.9%
  
Total number of Barclaycard consumer customers
29.9m
  
27.8m
  
Total number of Barclaycard business clients
343,000 
  
352,000 
  
Value of payments processed
£145bn
  
£124bn
  
         
Performance measures
        
Return on average tangible equity
22.9%
  
23.6%
  
Average allocated tangible equity (£bn)
5.0 
  
4.6 
  
Return on average equity
18.2%
  
18.9%
  
Average allocated equity (£bn)
6.3 
  
5.7 
  
Cost: income ratio
43%
  
40%
  
Loan loss rate (bps)
293 
  
311 
  
 
Barclaycard
 
Income statement - H115 compared to H114
 
·     Profit before tax increased 4% to £795m. The diversified consumer and merchant business model led to income growth of 11% to £2,357m with substantial business growth in US cards. The continued focus on risk management is
       reflected in stable 30-day delinquency rates and a falling loan loss rate. Although total operating expenses increased, this was a result of continued investment for growth, as loans and advances increased 11% from June 2014 and
       the customer base increased across all geographies over the same period. Return on average equity continued to be strong at 18.2% (H114: 18.9%)
 
·     Total income increased 11% to £2,357m driven by business growth in US cards and the appreciation of average USD against GBP, partially offset by the impact of rate capping from European Interchange Fee Regulation
 
·     Net interest income increased 14% to £1,704m driven by business growth, whilst the net interest margin was maintained at 9.05% (H114: 9.05%)
 
·     Net fee, commission and other income increased 5% to £653m due to growth in US cards and Business Solutions, partially offset by the impact of changes to European Interchange Fee Regulation
 
·     Credit impairment charges increased 5% to £563m with loans and advances growth of 11% to £36.9bn over the same period. Delinquency rates remained stable and the loan loss rate improved 18bps to 293bps
 
·     Total operating expenses increased 19% to £1,017m due to continued investment in business growth, higher costs to achieve, the appreciation of average USD against GBP and the impact of one-off items, including certain        marketing costs and the non-recurrence of a VAT refund in H114
 
Balance sheet - 30 June 2015 compared to 31 December 2014
 
·     Loans and advances to customers increased 1% to £36.9bn with balance growth in US cards
 
·     Total assets increased 1% to £41.9bn mainly due to the increase in loans and advances to customers
 
·     Customer deposits increased 5% to £7.7bn driven by the deposits funding strategy in the US
 
·     RWAs increased £0.4bn to £40.3bn primarily driven by growth in loans and advances to customers
 
 
Africa Banking
Half year ended
  
Half year ended
  
 
30.06.15
  
30.06.14
YoY
Income statement information
£m
  
£m
% Change
Net interest income
1,068 
  
1,007 
6 
Net fee, commission and other income
871 
  
850 
2 
Total income
1,939 
  
1,857 
4 
Net claims and benefits incurred under insurance contracts
(81)
  
(84)
4 
Total income net of insurance claims
1,858 
  
1,773 
5 
Credit impairment charges and other provisions
(193)
  
(196)
2 
Net operating income
1,665 
  
1,577 
6 
Operating expenses
(1,116)
  
(1,082)
(3)
Costs to achieve
(13)
  
(17)
24 
Total operating expenses
(1,129)
  
(1,099)
(3)
Other net income
4 
  
6 
(33)
Profit before tax
540 
  
484 
12 
Attributable profit
208 
  
181 
15 
         
 
As at 30.06.15
  
As at 31.12.14
As at 30.06.14
Balance sheet information
£bn
  
£bn
£bn
Loans and advances to customers at amortised cost
33.8 
  
35.2 
33.8 
Total assets
54.0 
  
55.5 
52.4 
Customer deposits
34.4 
  
35.0 
33.2 
Risk weighted assets
36.4 
  
38.5 
36.5 
         
Constant currency1
        
Loans and advances to customers at amortised cost
33.8 
  
33.2 
32.1 
Total assets
54.0 
  
52.2 
49.9 
Customer deposits
34.4 
  
33.1 
31.6 
Risk weighted assets
36.4 
  
36.3 
34.7 
         
 
  Half year ended
  
  Half year ended
  
Key facts
30.06.15
  
30.06.14
  
Average LTV of mortgage lending2 
59%
  
61%
  
Average LTV of new mortgage lending2 
76%
  
75%
  
         
Performance measures
        
Return on average tangible equity
14.0%
  
13.3%
  
Average allocated tangible equity (£bn)
3.0 
  
2.7 
  
Return on average equity
10.3%
  
9.6%
  
Average allocated equity (£bn)
4.0 
  
3.8 
  
Cost: income ratio
61%
  
62%
  
Loan loss rate (bps)
105 
  
110 
  
 
 
 1
Constant currency results are calculated by converting ZAR results into GBP using the 30 June 2015 exchange rate for the balance sheet to eliminate the impact of movement in the exchange rate between the reporting periods.
2
Calculated on the balance weighted basis.  
 
Africa Banking
 
Income statement - H115 compared to H114
 
·     Based on average rates, ZAR depreciated against GBP by 2% in H115 against H114. The deterioration was not a significant contributor to the movement in the reported income statement results of Africa Banking; therefore, the
      discussion of business performance below is based on reported results in GBP
 
·     Profit before tax increased 12% to £540m reflecting strong growth in Retail and Business Banking (RBB) due to the continued progress on the retail banking turnaround in South Africa. Performance in South Africa also showed
       good growth in corporate banking and Wealth, Investment Management and Insurance (WIMI), partially offset by lower trading performance. Performance outside of South Africa showed strong growth in trading performance
       and WIMI, partially offset by a small reduction in growth in corporate banking
 
·     Total income net of insurance claims increased 5% to £1,858m
 
 
-    Net interest income increased 6% to £1,068m driven by higher average loans and advances to customers in Corporate and Investment Banking (CIB) and growth in customer deposits in the South African RBB and Corporate
     businesses. Net interest margin increased 10bps to 5.97% as CIB continued the strategy of replacing swaps with currency matched funding. This has resulted in an improvement in net interest income and a reduction in
     hedging income recognised in net fee, commission and other income
 
 
-    Net fee, commission and other income increased 2% to £871m mainly reflecting increased transactional revenue in South Africa, partially offset by lower hedging income
 
·     Credit impairment charges were broadly in line at £193m (H114: £196m) and the loan loss rate improved 5bps to 105bps driven by reduced impairments in the South Africa mortgages portfolio and business banking, partially offset
       by increased impairments in CIB and additional coverage on performing loans
 
·     Total operating expenses increased 3% to £1,129m reflecting inflationary impacts on staff costs and increased investment spend on key initiatives, partially offset by savings from strategic cost programmes mainly in property and
       technology
 
Balance sheet - 30 June 2015 compared to 31 December 2014
 
·     Based on closing rates, ZAR depreciated against GBP by 6% at 30 June 2015 against 31 December 2014. The deterioration was a significant contributor to the movement in the reported balance sheet results of Africa Banking;
       therefore, the discussion of business performance below is based on results on a constant currency basis
 
·     Loans and advances to customers increased 2% to £33.8bn driven by strong CIB growth in South Africa and growth in RBB, which included a modest reduction in the South Africa mortgages portfolio
 
·     Total assets increased 3% to £54.0bn primarily due to the increase in loans and advances to customers and banks
 
·     Customer deposits increased 4% to £34.4bn reflecting strong growth in the RBB South Africa and Corporate businesses
 
·     RWAs increased £0.1bn to £36.4bn primarily driven by growth in loans and advances to customers
 

Investment Bank
Half year ended
  
Half year ended
  
 
30.06.15
  
30.06.14
YoY
Income statement information
£m
  
£m
% Change
Net interest income
276 
  
334 
(17)
Net trading income
2,423 
  
2,137 
13 
Net fee, commission and other income
1,600 
  
1,786 
(10)
Total income
4,299 
  
4,257 
1 
Credit impairment (charges)/releases and other provisions
(1)
  
26 
  
Net operating income
4,298 
  
4,283 
- 
Operating expenses
(2,738)
  
(2,848)
4 
Litigation and conduct
(57)
  
(95)
40 
Costs to achieve
(63)
  
(282)
78 
Total operating expenses
(2,858)
  
(3,225)
11 
Profit before tax
1,440 
  
1,058 
36 
Attributable profit
761 
  
435 
75 
         
 
As at 30.06.15
  
As at 31.12.14
As at 30.06.14
Balance sheet information
£bn
  
£bn
£bn
Loans and advances to banks and customers at amortised cost1 
123.1 
  
106.3 
117.2 
Trading portfolio assets
81.8 
  
94.8 
101.2 
Derivative financial instrument assets
118.5 
  
152.6 
104.2 
Derivative financial instrument liabilities
127.7 
  
160.6 
109.5 
Reverse repurchase agreements and other similar secured lending
58.4 
  
64.3 
83.0 
Total assets
420.1 
  
455.7 
446.2 
Risk weighted assets
115.3 
  
122.4 
123.9 
         
 
Half year ended
  
Half year ended
  
Performance measures
30.06.15
  
30.06.14
  
Return on average tangible equity
10.9%
  
6.0%
  
Average allocated tangible equity (£bn)
14.2 
  
14.7 
  
Return on average equity
10.2%
  
5.7%
  
Average allocated equity (£bn)
15.1 
  
15.4 
  
Cost: income ratio
66%
  
76%
  
         
 
       
YoY
Analysis of total income
£m
  
£m
% Change
Investment banking fees
1,135 
  
1,174 
(3)
Lending
205 
  
169 
21 
Banking
1,340 
  
1,343 
- 
Credit
546 
  
616 
(11)
Equities
1,235 
  
1,220 
1 
Macro
1,178 
  
1,056 
12 
Markets
2,959 
  
2,892 
2 
Banking & Markets
4,299 
  
4,235 
2 
Other
- 
  
22 
  
Total income
4,299 
  
4,257 
1 
 
1
As at 30 June 2015 loans and advances included £99.1bn (December 2014: £86.4bn) of loans and advances to customers, including settlement balances of £40.4bn (December 2014: £25.8bn) and cash collateral of £28.6bn (December 2014: £32.2bn) and loans and advances to banks of £24.0bn (December 2014: £19.9bn), including settlement balances of £5.9bn (December 2014: £2.7bn) and cash collateral of £6.4bn (December 2014: £6.9bn).
 
 
Investment Bank
 
Income statement - H115 compared to H114
 
·     Profit before tax increased 36% to £1,440m. The Investment Bank continued to build on its origination led strategy, whilst the re-sized Macro business benefited from increased market volatility in H115 reflecting uncertainty
       around Greece and the Eurozone. Higher income as well as a continued focus on driving cost savings and RWA efficiencies resulted in a return on average equity of 10.2% (H114: 5.7%)
 
·     Total income increased 1% to £4,299m
 
 
-    Banking income was in line at £1,340m (H114: £1,343m). Investment banking fee income decreased 3% to £1,135m driven by lower equity underwriting and financial advisory fees. Lending income increased 21% to £205m
     due to lower fair value losses on hedges
 
 
-    Markets income increased 2% to £2,959m
 
 
-    Equities increased 1% to £1,235m due to higher income in equity financing and cash equities, partially offset by lower income in equity derivatives
 
 
-    Macro increased 12% to £1,178m due to higher income in rates and currency products, reflecting increased market volatility
 
 
-    Credit decreased 11% to £546m driven by lower income in distressed credit and securitised products, partially offset by increased income in credit flow trading
 
·     Credit impairment charges were £1m (H114: release of £26m)
 
·     Total operating expenses decreased 11% to £2,858m reflecting lower costs to achieve, a reduction in compensation costs and savings from strategic cost programmes including business restructuring, system decommissioning
       and a reduction in real estate infrastructure
 
Balance sheet - 30 June 2015 compared to 31 December 2014
 
·     Derivative financial instrument assets and liabilities decreased 22% to £118.5bn and 20% to £127.7bn respectively, due to increases in major forward rate curves
 
·     Trading portfolio assets decreased 14% to £81.8bn due to a decrease in equity securities
 
·     Total assets decreased 8% to £420.1bn due to a decrease in derivative financial instrument assets, trading portfolio assets and reverse repurchase agreements, partially offset by an increase in settlement balances within loans and        advances to customers and banks
 
·     RWAs decreased 6% to £115.3bn primarily driven by risk reductions in the trading book
 
 
Head Office
Half year ended
  
Half year ended
    
 
30.06.15
  
30.06.14
    
Income statement information
£m
  
£m
    
Total income
42 
  
159 
    
Credit impairment charges and other provisions
(1)
  
- 
    
Net operating income
41 
  
159 
    
Operating expenses
(78)
  
(37)
    
Litigation and conduct
(7)
  
(54)
    
Costs to achieve
(22)
  
(2)
    
Total operating expenses
(107)
  
(93)
    
Other net income
4 
  
- 
    
(Loss)/profit before tax
(62)
  
66 
    
Attributable (loss)/profit
(80)
  
30 
    
           
 
As at 30.06.15
  
As at 31.12.14
  
As at 30.06.14
Balance sheet information
£bn
  
£bn
  
£bn
Total assets
52.6 
  
49.1 
  
43.3 
Risk weighted assets
7.5 
  
5.6 
  
7.6 
 
 
Head Office
 
Income statement - H115 compared to H114
 
·     Loss before tax of £62m moved from a profit of £66m in H114
 
·     Total income decreased £117m to £42m due to the non-recurrence of net gains from foreign exchange recycling arising from the restructure of Group subsidiaries and gains resulting from a liability management exercise in H114
 
·     Total operating expenses increased £14m to £107m due to costs relating to structural reform and an increase in costs to achieve, partially offset by the non-recurrence of H114 litigation and conduct charges
 
Balance sheet - 30 June 2015 compared to 31 December 2014
 
·     Total assets increased £3.5bn to £52.6bn reflecting additional cash held to meet daily treasury operational settlements
 
·     RWAs increased £1.9bn to £7.5bn primarily due to reallocations of Group-wide market and operational risk
 
 
Barclays Non-Core
Half year ended
  
Half year ended
  
 
30.06.15
  
30.06.14
YoY
Income statement information
£m
  
£m
% Change
Net interest income
128 
  
183 
(30)
Net trading income
(250)
  
116 
  
Net fee, commission and other income
331 
  
514 
(36)
Total income
209 
  
813 
(74)
Net claims and benefits incurred under insurance contracts
(167)
  
(155)
(8)
Total income net of insurance claims
42 
  
658 
(94)
Credit impairment charges and other provisions
(37)
  
(149)
75 
Net operating income
5 
  
509 
(99)
Operating expenses
(453)
  
(860)
47 
Litigation and conduct
(45)
  
(33)
(36)
Costs to achieve
(23)
  
(41)
44 
Total operating expenses
(521)
  
(934)
44 
Other net income/(expenses)
4 
  
(66)
  
Loss before tax
(512)
  
(491)
(4)
Attributable loss
(402)
  
(464)
13 
         
 
As at 30.06.15
  
As at 31.12.14
As at 30.06.14
Balance sheet information
£bn
  
£bn
£bn
Loans and advances to banks and customers at amortised cost1 
53.9 
  
63.9 
75.5 
Loans and advances to customers at fair value
17.0 
  
18.7 
17.0 
Trading portfolio assets
11.6 
  
15.9 
22.9 
Derivative financial instrument assets
220.9 
  
285.4 
227.0 
Derivative financial instrument liabilities
213.6 
  
277.1 
215.0 
Reverse repurchase agreements and other similar secured lending
15.6 
  
49.3 
86.8 
Total assets
338.2 
  
471.5 
468.6 
Customer deposits
19.6 
  
21.6 
28.6 
Risk weighted assets
56.6 
  
75.3 
87.5 
Leverage exposure
166.3 
  
277.5 
381.7 
         
 
Half year ended
  
Half year ended
  
Performance measures
30.06.15
  
30.06.14
  
Return on average tangible equity2 
(4.3%)
  
(6.0%)
  
Average allocated tangible equity (£bn)
9.7 
  
14.2 
  
Return on average equity2 
(3.4%)
  
(4.5%)
  
Average allocated equity (£bn)
9.8 
  
14.5 
  
Period end allocated equity (£bn)
8.3 
  
12.7 
  
         
       
YoY
Analysis of total income net of insurance claims
£m
  
£m
% Change
Businesses
275 
  
546 
(50)
Securities and Loans
(115)
  
153 
  
Derivatives
(118)
  
(41)
  
Total income net of insurance claims
42 
  
658 
(94)
         
 
1
As at 30 June 2015 loans and advances included £42.7bn (December 2014: £51.6bn) of loans and advances to customers (including settlement balances of £1.0bn (December 2014: £1.6bn) and cash collateral of £18.0bn (December 2014: £22.1bn) and loans and advances to banks of £11.2bn (December 2014: £12.3bn) (including settlement balances of £0.2bn (December 2014: £0.3bn) and cash collateral of £10.5bn (December 2014: £11.3bn)).
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.
 
 
Barclays Non-Core
 
Income statement - H115 compared to H114
 
·     Loss before tax increased 4% to £512m. Barclays Non-Core (BNC) continued to make good progress in exiting and running down businesses, securities and derivative assets during H115. RWAs reduced a further £18.7bn to        £56.6bn from December 2014
 
·     Total income net of insurance claims reduced 94% to £42m
 
 
-    Businesses income reduced 50% to £275m due to the impact of the sale of the Spanish business and the sale and run-down of legacy portfolio assets
 
 
-    Securities and loans income reduced £268m to an expense of £115m primarily due to fair value losses on the ESHLA portfolio of £175m (H114: £29m) and the active run-down of securities, partially offset by a £91m release of
     a litigation provision 
 
 
-    Derivatives income reduced £77m to an expense of £118m reflecting the active run-down of the portfolios and fair value movements
 
·     Credit impairment charges reduced 75% to £37m due to the sale of the Spanish business and higher recoveries in Europe
 
·     Total operating expenses improved 44% to £521m reflecting savings from the exit of the Spanish, UAE, commodities, and several principal investment businesses
 
Balance sheet - 30 June 2015 compared to 31 December 2014
 
·     Loans and advances to banks and customers reduced 16% to £53.9bn due to a reduction in Europe retail driven by the run-off of assets and a reduction in cash collateral balances
 
·     Trading portfolio assets reduced 27% to £11.6bn due to the sale and run-down of legacy portfolio assets
 
·     Derivative financial instrument assets and liabilities both decreased 23% to £220.9bn and £213.6bn respectively, driven by increases in major forward rate curves and the unwinding of trade positions
 
·     Total assets decreased 28% to £338.2bn with reduced derivative financial assets, reverse repurchase agreements and other similar secured lending, loans and advances to banks and customers, and trading portfolio assets
 
·     Leverage exposure reduced 40% to £166.3bn driven by a reduction in derivatives and reverse repurchase agreements
 
·     RWAs decreased £18.7bn to £56.6bn including the sale of the Spanish business and run down of legacy structured and credit products. Period end allocated equity decreased £2.7bn to £8.3bn
 
 
Quarterly Results Summary
Barclays results by quarter
Q215
Q1151 
  
Q414
Q314
Q214
Q114
  
Q413
Q3132 
 
£m
£m
£m
£m
£m
£m
£m
£m
Adjusted basis
                    
Total income net of insurance claims
6,552 
6,430 
  
6,018 
6,378 
6,682 
6,650 
  
6,639 
6,445 
Credit impairment charges and other provisions
(496)
(477)
  
(573)
(509)
(538)
(548)
  
(718)
(722)
Net operating income
6,056 
5,953 
  
5,445 
5,869 
6,144 
6,102 
  
5,921 
5,723 
Operating expenses
(3,897)
(3,915)
  
(3,942)
(3,879)
(4,042)
(4,130)
  
(4,500)
(4,223)
Litigation and conduct
(77)
(57)
  
(140)
(98)
(146)
(65)
  
(277)
(39)
Costs to achieve
(196)
(120)
  
(339)
(332)
(254)
(240)
  
(468)
(101)
UK bank levy
- 
- 
  
(462)
- 
- 
- 
  
(504)
- 
Total operating expenses
(4,170)
(4,092)
  
(4,883)
(4,309)
(4,442)
(4,435)
  
(5,749)
(4,363)
Other net (expenses)/income
(37)
19 
  
1 
30 
(46)
26 
  
19 
25 
Adjusted profit before tax
1,849 
1,880 
  
563 
1,590 
1,656 
1,693 
  
191 
1,385 
                     
Adjusting items
                    
Own credit
282 
128 
  
(62)
44 
(67)
119 
  
(95)
(211)
Gain on US Lehman acquisition assets
496 
- 
  
- 
461 
- 
- 
  
- 
- 
ESHLA valuation revision
- 
- 
  
(935)
- 
- 
- 
  
- 
- 
Gain on valuation of a component of the defined retirement benefit liability
- 
429 
  
- 
- 
- 
- 
  
- 
- 
Provisions for ongoing investigations and litigation primarily relating to Foreign Exchange
- 
(800)
  
(750)
(500)
- 
- 
  
- 
- 
Provisions for UK customer redress
(850)
(182)
  
(200)
(10)
(900)
- 
  
- 
- 
Goodwill impairment
- 
- 
  
- 
- 
- 
- 
  
(79)
- 
Loss on sale of the Spanish business
- 
(118)
  
(82)
(364)
- 
- 
  
- 
- 
Statutory profit/(loss) before tax
1,777 
1,337 
  
(1,466)
1,221 
689 
1,812 
  
17 
1,174 
Tax (charge)/credit
(394)
(612)
  
85 
(601)
(298)
(597)
  
(531)
(446)
Statutory profit/(loss) after tax
1,383 
725 
  
(1,381)
620 
391 
1,215 
  
(514)
728 
                     
Attributable to:
                    
Ordinary equity holders of the parent
1,146 
465 
  
(1,679)
379 
161 
965 
  
(642)
511 
Other equity holders
79 
80 
  
80 
80 
41 
49 
  
- 
- 
Non-controlling interests
158 
180 
  
218 
161 
189 
201 
  
128 
217 
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Total assets
1,196.7 
1,416.4 
  
1,357.9 
1,365.7 
1,314.9 
1,362.1 
  
1,343.6 
n/a
Risk weighted assets
376.7 
395.9 
  
401.9 
412.9 
411.1 
436.3 
  
442.5 
n/a
                     
Adjusted performance measures
                    
Return on average tangible shareholders' equity
9.1%
9.0%
  
1.7%
7.1%
7.5%
7.6%
  
(3.4%)
6.7%
Average tangible shareholders' equity (£bn)
47.7 
48.7 
  
48.9 
47.6 
47.5 
47.2 
  
47.1 
43.5 
Return on average shareholders' equity
7.8%
7.7%
  
1.5%
6.1%
6.4%
6.5%
  
(2.9%)
5.7%
Average shareholders' equity (£bn)
56.0 
57.0 
  
57.1 
55.6 
55.3 
54.8 
  
54.9 
51.3 
Cost: income ratio
64%
64%
  
81%
68%
66%
67%
  
87%
68%
Loan loss rate (bps)
41 
37 
  
48 
42 
44 
45 
  
59 
58 
Basic earnings/(loss) per share
6.5p
6.6p
  
1.3p
5.2p
5.4p
5.5p
  
(2.8p)
5.4p
                     
Statutory performance measures
                    
Return on average tangible shareholders' equity
9.8%
4.0%
  
(13.8%)
3.4%
1.4%
8.4%
  
(5.5%)
4.8%
Average tangible shareholders' equity (£bn)
47.2 
48.1 
  
48.3 
46.8 
46.7 
46.4 
  
46.3 
42.8 
Return on average shareholders' equity
8.4%
3.4%
  
(11.8%)
2.9%
1.2%
7.2%
  
(4.7%)
4.0%
Average shareholders' equity (£bn)
55.5 
56.3 
  
56.4 
54.8 
54.5 
54.0 
  
54.1 
50.6 
Cost: income ratio
68%
71%
  
116%
70%
81%
66%
  
89%
70%
Basic earnings/(loss) per share
7.0p
2.9p
  
(10.2p)
2.4p
1.0p
6.0p
  
(4.5p)
3.8p
                     
 
1
Q115 adjusted total operating expenses and profit before tax has been revised to account for the reclassification of £32m of charges relating to UK customer redress to aid comparability with Q215.
2
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis. Balance sheet comparative figures have also been restated from Q413 to adopt the offsetting amendments to IAS32, Financial Instruments: Presentation; therefore no Q313 comparative is available.  
 
Barclays Core
Q215
Q1151 
  
Q414
Q314
Q214
Q114
  
Q413
Q3132 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Total income net of insurance claims
6,520 
6,420 
  
5,996 
6,008 
6,397 
6,277 
  
6,189 
6,076 
Credit impairment charges and other provisions
(488)
(448)
  
(571)
(492)
(456)
(481)
  
(542)
(554)
Net operating income
6,032 
5,972 
  
5,425 
5,516 
5,941 
5,796 
  
5,647 
5,522 
Operating expenses
(3,663)
(3,696)
  
(3,614)
(3,557)
(3,602)
(3,710)
  
(4,045)
(3,758)
Litigation and conduct
(41)
(48)
  
(56)
(16)
(136)
(43)
  
(69)
(18)
Costs to achieve
(184)
(109)
  
(298)
(202)
(237)
(216)
  
(365)
(84)
UK bank levy
- 
- 
  
(371)
- 
- 
- 
  
(395)
- 
Total operating expenses
(3,888)
(3,853)
  
(4,339)
(3,775)
(3,975)
(3,969)
  
(4,874)
(3,860)
Other net (expenses)/income
(39)
17 
  
9 
6 
27 
20 
  
15 
15 
Profit before tax
2,105 
2,136 
  
1,095 
1,747 
1,993 
1,847 
  
788 
1,677 
Attributable profit
1,273 
1,284 
  
638 
1,002 
1,171 
1,053 
  
601 
1,009 
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Total assets
858.5 
949.6 
  
886.5 
899.3 
846.3 
863.7 
  
832.4 
n/a
Risk weighted assets
320.1 
331.1 
  
326.6 
331.9 
323.6 
330.3 
  
332.6 
n/a
                     
Performance measures
                    
Return on average tangible equity
13.3%
13.5%
  
7.0%
11.5%
13.8%
13.2%
  
7.6%
15.1%
Average allocated tangible equity (£bn)
38.6 
38.5 
  
37.0 
35.2 
34.0 
32.2 
  
31.4 
26.7 
Return on average equity
11.0%
11.1%
  
5.8%
9.5%
11.3%
10.7%
  
6.2%
11.8%
Average allocated equity (£bn)
46.7 
46.7 
  
45.0 
43.0 
41.6 
39.6 
  
38.9 
34.2 
Cost: income ratio
60%
60%
  
72%
63%
62%
63%
  
79%
64%
 
1
Q115 adjusted total operating expenses and profit before tax has been revised to account for the reclassification of £32m of charges relating to UK customer redress to aid comparability with Q215.
2
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis. Balance sheet comparative figures have also been restated from Q413 to adopt the offsetting amendments to IAS32, Financial Instruments: Presentation; therefore no Q313 comparative is available.
 
Barclays Non-Core
Q215
Q115
  
Q414
Q314
Q214
Q114
  
Q413
Q3131 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Businesses
153 
122 
  
228 
327 
245 
301 
  
322 
354 
Securities and Loans
(42)
(73)
  
(142)
106 
66 
87 
  
121 
60 
Derivatives
(79)
(39)
  
(64)
(63)
(26)
(15)
  
7 
(46)
Total income net of insurance claims
32 
10 
  
22 
370 
285 
373 
  
450 
368 
Credit impairment charges and other provisions
(8)
(29)
  
(2)
(17)
(82)
(67)
  
(176)
(168)
Net operating income/(expense)
24 
(19)
  
20 
353 
203 
306 
  
274 
200 
Operating expenses
(234)
(219)
  
(329)
(321)
(441)
(419)
  
(456)
(464)
Litigation and conduct
(36)
(9)
  
(83)
(82)
(10)
(23)
  
(208)
(21)
Costs to achieve
(12)
(11)
  
(41)
(130)
(17)
(24)
  
(103)
(17)
UK bank levy
- 
- 
  
(91)
- 
- 
- 
  
(109)
- 
Total operating expenses  
(282)
(239)
  
(544)
(533)
(468)
(466)
  
(876)
(502)
Other net income/(expense)
2 
2 
  
(8)
23 
(72)
6 
  
4 
10 
Loss before tax
(256)
(256)
  
(532)
(157)
(337)
(154)
  
(598)
(292)
Attributable loss
(203)
(199)
  
(448)
(173)
(294)
(171)
  
(997)
(274)
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Loans and advances to banks and customers at amortised cost
53.9 
65.6 
  
63.9 
64.5 
75.5 
83.4 
  
81.9 
n/a
Loans and advances to customers at fair value
17.0 
18.5 
  
18.7 
18.1 
17.0 
17.5 
  
17.6 
n/a
Trading portfolio assets
11.6 
14.6 
  
15.9 
19.2 
22.9 
29.4 
  
30.7 
n/a
Derivative financial instrument assets
220.9 
301.9 
  
285.4 
249.6 
227.0 
231.5 
  
239.3 
n/a
Derivative financial instrument liabilities
213.6 
295.6 
  
277.1 
240.0 
215.0 
220.9 
  
228.3 
n/a
Reverse repurchase agreements and other similar secured lending
15.6 
42.8 
  
49.3 
73.9 
86.8 
98.3 
  
104.7 
n/a
Total assets
338.2 
466.8 
  
471.5 
466.5 
468.6 
498.4 
  
511.2 
n/a
Customer deposits
19.6 
20.5 
  
21.6 
22.2 
28.6 
30.7 
  
29.3 
n/a
Risk weighted assets
56.6 
64.8 
  
75.3 
81.0 
87.5 
106.0 
  
109.9 
n/a
                     
Performance measures
                    
Return on average tangible equity2 
(4.2%)
(4.5%)
  
(5.3%)
(4.4%)
(6.3%)
(5.6%)
  
(11.0%)
(8.4%)
Average allocated tangible equity (£bn)
9.1 
10.2 
  
11.9 
12.4 
13.5 
15.0 
  
15.7 
16.8 
Return on average equity2 
(3.2%)
(3.4%)
  
(4.3%)
(3.4%)
(4.9%)
(4.2%)
  
(9.1%)
(6.1%)
Average allocated equity (£bn)
9.3 
10.3 
  
12.1 
12.6 
13.7 
15.2 
  
16.0 
17.1 
Period end allocated equity (£bn)
8.3 
9.7 
  
11.0 
12.1 
12.7 
14.9 
  
15.1 
16.3 
 
1
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis. Balance sheet comparative figures have also been restated from Q413 to adopt the offsetting amendments to IAS32, Financial Instruments: Presentation; therefore no Q313 comparative is available.  
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.
 
Personal and Corporate Banking
Q215
Q1151 
  
Q414
Q314
Q214
Q114
  
Q413
Q3132 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Total income
2,210 
2,174 
  
2,231 
2,236 
2,188 
2,173 
  
2,166 
2,252 
Credit impairment charges and other provisions
(99)
(79)
  
(123)
(129)
(95)
(135)
  
(169)
(153)
Net operating income
2,111 
2,095 
  
2,108 
2,107 
2,093 
2,038 
  
1,997 
2,099 
Operating expenses
(1,232)
(1,234)
  
(1,204)
(1,222)
(1,247)
(1,278)
  
(1,371)
(1,313)
Litigation and conduct
(23)
(2)
  
(15)
(10)
(9)
(20)
  
(17)
(5)
Costs to achieve
(97)
(42)
  
(195)
(90)
(58)
(57)
  
(219)
(73)
UK bank levy
- 
- 
  
(70)
- 
- 
- 
  
(66)
- 
Total operating expenses  
(1,352)
(1,278)
  
(1,484)
(1,322)
(1,314)
(1,355)
  
(1,673)
(1,391)
Other net (expenses)/income
(50)
2 
  
4 
4 
1 
5 
  
3 
1 
Profit before tax
709 
819 
  
628 
789 
780 
688 
  
327 
709 
Attributable profit
500 
602 
  
441 
578 
559 
480 
  
281 
518 
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Loans and advances to customers at amortised cost
217.5 
219.0 
  
217.0 
215.7 
216.7 
215.5 
  
212.2 
210.1 
Total assets
289.9 
294.1 
  
285.0 
275.7 
268.1 
271.5 
  
278.5 
278.3 
Customer deposits
298.5 
298.1 
  
299.2 
295.9 
298.3 
297.2 
  
295.9 
289.3 
Risk weighted assets
120.6 
122.5 
  
120.2 
120.0 
117.9 
116.1 
  
118.3 
n/a
                     
Performance measures
                    
Return on average tangible equity
14.9%
17.8%
  
13.3%
17.8%
17.5%
14.7%
  
8.6%
15.4%
Average allocated tangible equity (£bn)
13.6 
13.6 
  
13.4 
13.1 
12.9 
13.1 
  
13.1 
13.5 
Return on average equity
11.2%
13.4%
  
10.0%
13.4%
13.1%
11.1%
  
6.5%
11.8%
Average allocated equity (£bn)
18.1 
18.1 
  
17.8 
17.5 
17.2 
17.4 
  
17.4 
17.6 
Cost: income ratio
61%
59%
  
67%
59%
60%
62%
  
77%
62%
Loan loss rate (bps)
18 
14 
  
22 
23 
17 
25 
  
31 
28 
                     
Analysis of total income
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Personal
1,005 
1,009 
  
1,045 
1,061 
1,027 
1,026 
  
1,037 
1,033 
Corporate
970 
907 
  
922 
902 
889 
879 
  
866 
956 
Wealth
235 
258 
  
264 
273 
272 
268 
  
263 
263 
Total income
2,210 
2,174 
  
2,231 
2,236 
2,188 
2,173 
  
2,166 
2,252 
                     
Analysis of loans and advances to customers at amortised cost
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Personal
137.8 
137.5 
  
136.8 
136.5 
135.9 
134.9 
  
133.8 
132.7 
Corporate
66.0 
66.5 
  
65.1 
63.1 
64.8 
64.2 
  
62.5 
62.5 
Wealth
13.7 
15.0 
  
15.1 
16.1 
16.0 
16.4 
  
15.9 
14.9 
Total loans and advances to customers at amortised cost
217.5 
219.0 
  
217.0 
215.7 
216.7 
215.5 
  
212.2 
210.1 
                     
Analysis of customer deposits
                    
Personal
146.3 
145.3 
  
145.8 
143.0 
141.6 
141.3 
  
140.5 
139.2 
Corporate
120.3 
120.9 
  
122.2 
120.7 
123.7 
120.9 
  
118.5 
114.5 
Wealth
31.9 
31.9 
  
31.2 
32.2 
33.0 
35.0 
  
36.9 
35.6 
Total customer deposits
298.5 
298.1 
  
299.2 
295.9 
298.3 
297.2 
  
295.9 
289.3 
 
1
Q115 adjusted total operating expenses and profit before tax has been revised to account for the reclassification of £32m of charges relating to UK customer redress to aid comparability with Q215.
2
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis.
 
Barclaycard
Q215
Q115
  
Q414
Q314
Q214
Q114
  
Q413
Q3131 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Total income
1,222 
1,135 
  
1,109 
1,123 
1,082 
1,042 
  
1,034 
1,050 
Credit impairment charges and other provisions
(273)
(290)
  
(362)
(284)
(268)
(269)
  
(266)
(290)
Net operating income
949 
845 
  
747 
839 
814 
773 
  
768 
760 
Operating expenses
(496)
(465)
  
(456)
(449)
(420)
(402)
  
(446)
(442)
Litigation and conduct
- 
- 
  
- 
- 
- 
- 
  
(11)
(13)
Costs to achieve
(31)
(25)
  
(50)
(32)
(23)
(13)
  
(38)
(6)
UK bank levy
- 
- 
  
(29)
- 
- 
- 
  
(22)
- 
Total operating expenses  
(527)
(490)
  
(535)
(481)
(443)
(415)
  
(517)
(461)
Other net income
7 
11 
  
1 
4 
25 
10 
  
5 
12 
Profit before tax
429 
366 
  
213 
362 
396 
368 
  
256 
311 
Attributable profit
307 
259 
  
137 
262 
285 
254 
  
169 
214 
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Loans and advances to customers at amortised cost
36.9 
36.8 
  
36.6 
34.8 
33.2 
31.9 
  
31.5 
30.4 
Total assets
41.9 
42.4 
  
41.3 
38.9 
36.2 
35.0 
  
34.4 
33.4 
Customer deposits
7.7 
8.0 
  
7.3 
6.5 
5.9 
5.8 
  
5.1 
4.7 
Risk weighted assets
40.3 
39.9 
  
39.9 
38.6 
37.7 
36.4 
  
35.7 
n/a
                     
Performance measures
                    
Return on average tangible equity
24.9%
21.0%
  
11.2%
21.8%
24.7%
22.6%
  
16.1%
20.2%
Average allocated tangible equity (£bn)
5.0 
5.0 
  
4.9 
4.8 
4.6 
4.5 
  
4.2 
4.2 
Return on average equity
19.7%
16.6%
  
9.0%
17.5%
19.7%
18.2%
  
12.7%
15.9%
Average allocated equity (£bn)
6.3 
6.3 
  
6.2 
6.0 
5.8 
5.6 
  
5.3 
5.4 
Cost: income ratio
43%
43%
  
48%
43%
41%
40%
  
50%
44%
Loan loss rate (bps)
283 
305 
  
374 
309 
309 
325 
  
320 
360 
 
1
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis.
 
Africa Banking
Q215
Q115
  
Q414
Q314
Q214
Q114
  
Q413
Q3131 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Total income net of insurance claims
910 
948 
  
963 
928 
895 
878 
  
980 
1,004 
Credit impairment charges and other provisions
(103)
(90)
  
(79)
(74)
(100)
(96)
  
(104)
(101)
Net operating income
807 
858 
  
884 
854 
795 
782 
  
876 
903 
Operating expenses
(557)
(559)
  
(590)
(572)
(545)
(537)
  
(616)
(605)
Litigation and conduct
- 
- 
  
(1)
(1)
- 
- 
  
- 
- 
Costs to achieve
(7)
(6)
  
(23)
(11)
(8)
(9)
  
(15)
(2)
UK bank levy
- 
- 
  
(45)
- 
- 
- 
  
(42)
- 
Total operating expenses
(564)
(565)
  
(659)
(584)
(553)
(546)
  
(673)
(607)
Other net income
2 
2 
  
3 
2 
2 
4 
  
- 
3 
Profit before tax
245 
295 
  
228 
272 
244 
240 
  
203 
299 
Attributable profit
96 
112 
  
88 
91 
78 
103 
  
30 
104 
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Loans and advances to customers at amortised cost
33.8 
35.7 
  
35.2 
34.5 
33.8 
35.0 
  
34.9 
36.5 
Total assets
54.0 
57.8 
  
55.5 
54.6 
52.4 
54.1 
  
54.9 
57.3 
Customer deposits
34.4 
35.0 
  
35.0 
33.4 
33.2 
34.0 
  
34.6 
35.4 
Risk weighted assets
36.4 
39.3 
  
38.5 
37.9 
36.5 
36.6 
  
38.0 
n/a
                     
Performance measures
                    
Return on average tangible equity
13.2%
14.7%
  
11.9%
13.1%
11.3%
15.5%
  
4.2%
14.1%
Average allocated tangible equity (£bn)
2.9 
3.1 
  
2.9 
2.8 
2.8 
2.7 
  
2.8 
3.0 
Return on average equity
9.7%
10.8%
  
8.7%
9.5%
8.1%
11.1%
  
3.0%
10.0%
Average allocated equity (£bn)
3.9 
4.1 
  
4.0 
3.8 
3.8 
3.7 
  
4.0 
4.1 
Cost: income ratio
62%
60%
  
68%
63%
62%
62%
  
69%
60%
Loan loss rate (bps)
112 
94 
  
83 
79 
111 
104 
  
105 
104 
                     
Constant currency 2
                    
Income statement information
£m
£m
  
£m
£m
£m
£m
      
Total income net of insurance claims
910 
913 
  
919 
906 
870 
851 
      
Credit impairment charges and other provisions
(103)
(87)
  
(75)
(71)
(97)
(93)
      
Net operating income
807 
826 
  
844 
835 
773 
758 
      
Operating expenses
(557)
(539)
  
(564)
(559)
(530)
(521)
      
Litigation and conduct
- 
- 
  
(1)
(1)
- 
- 
      
Costs to achieve
(7)
(6)
  
(22)
(10)
(9)
(8)
      
UK bank levy
- 
- 
  
(45)
- 
- 
- 
      
Total operating expenses
(564)
(545)
  
(632)
(570)
(539)
(529)
      
Other net income
2 
2 
  
3 
1 
2 
4 
      
Profit before tax
245 
283 
  
215 
266 
236 
233 
      
Attributable profit
96 
107 
  
83 
88 
80 
99 
      
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
      
Loans and advances to customers at amortised cost
33.8 
33.7 
  
33.2 
33.1 
32.1 
32.1 
      
Total assets
54.0 
54.6 
  
52.2 
52.2 
49.9 
49.7 
      
Customer deposits
34.4 
33.0 
  
33.1 
32.0 
31.6 
31.3 
      
Risk weighted assets
36.4 
37.0 
  
36.3 
36.3 
34.7 
33.6 
      
 
1
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. 
2
Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the three months ended 30 June 2015 for the income statement and the 30 June 2015 closing exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the reporting periods.
 
Investment Bank
Q215
Q115
  
Q414
Q314
Q214
Q114
  
Q413
Q3131 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Investment banking fees
586 
549 
  
527 
410 
661 
513 
  
571 
526 
Lending
122 
83 
  
111 
137 
66 
103 
  
68 
42 
Banking
708 
632 
  
638 
547 
727 
616 
  
639 
568 
Credit 
272 
274 
  
173 
255 
270 
346 
  
231 
308 
Equities
616 
619 
  
431 
395 
629 
591 
  
421 
524 
Macro
554 
624 
  
424 
470 
504 
552 
  
494 
457 
Markets
1,442 
1,517 
  
1,028 
1,120 
1,403 
1,489 
  
1,146 
1,289 
Banking & Markets
2,150 
2,149 
  
1,666 
1,667 
2,130 
2,105 
  
1,785 
1,857 
Other 
- 
- 
  
- 
(2)
24 
(2)
  
(3)
(6)
Total income
2,150 
2,149 
  
1,666 
1,665 
2,154 
2,103 
  
1,782 
1,851 
Credit impairment (charges)/releases and other provisions
(12)
11 
  
(7)
(5)
7 
19 
  
(6)
(10)
Net operating income
2,138 
2,160 
  
1,659 
1,660 
2,161 
2,122 
  
1,776 
1,841 
Operating expenses
(1,328)
(1,410)
  
(1,351)
(1,305)
(1,357)
(1,491)
  
(1,575)
(1,373)
Litigation and conduct
(13)
(44)
  
(33)
(1)
(85)
(10)
  
(31)
- 
Costs to achieve
(32)
(31)
  
(22)
(70)
(152)
(130)
  
(71)
(3)
UK bank levy
- 
- 
  
(218)
- 
- 
- 
  
(236)
- 
Total operating expenses
(1,373)
(1,485)
  
(1,624)
(1,376)
(1,594)
(1,631)
  
(1,913)
(1,376)
Profit/(loss) before tax
765 
675 
  
35 
284 
567 
491 
  
(137)
465 
Attributable profit/(loss)
417 
344 
  
(150)
112 
204 
231 
  
(74)
283 
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Loans and advances to banks and customers at amortised cost
123.1 
134.4 
  
106.3 
123.1 
117.2 
129.7 
  
104.5 
n/a
Trading portfolio assets
81.8 
99.1 
  
94.8 
98.8 
101.2 
101.2 
  
96.6 
n/a
Derivative financial instrument assets
118.5 
175.9 
  
152.6 
131.4 
104.2 
99.9 
  
108.7 
n/a
Derivative financial instrument liabilities
127.7 
186.0 
  
160.6 
137.6 
109.5 
106.7 
  
116.6 
n/a
Reverse repurchase agreements and other similar secured lending
58.4 
58.0 
  
64.3 
82.8 
83.0 
86.6 
  
78.2 
n/a
Total assets
420.1 
509.6 
  
455.7 
488.4 
446.2 
469.4 
  
438.0 
n/a
Risk weighted assets
115.3 
123.0 
  
122.4 
127.9 
123.9 
125.2 
  
124.4 
n/a
                     
Performance measures
                    
Return on average tangible equity
12.2%
9.7%
  
(3.9%)
3.3%
5.6%
6.4%
  
(2.1%)
7.5%
Average allocated tangible equity (£bn)
13.9 
14.5 
  
14.7 
14.2 
14.8 
14.7 
  
14.4 
15.1 
Return on average equity
11.5%
9.1%
  
(3.7%)
3.1%
5.3%
6.1%
  
(2.0%)
7.2%
Average allocated equity (£bn)
14.8 
15.4 
  
15.6 
15.0 
15.5 
15.4 
  
15.1 
15.7 
Cost: income ratio
64%
69%
  
97%
83%
74%
78%
  
107%
74%
 
1
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis. Balance sheet comparative figures have also been restated from Q413 to adopt the offsetting amendments to IAS32, Financial Instruments: Presentation; therefore no Q313 comparative is available. 
 
 
Head Office
Q215
Q115
  
Q414
Q314
Q214
Q114
  
Q413
Q3131 
Income statement information
£m
£m
  
£m
£m
£m
£m
  
£m
£m
Total income/(expenses)
28 
14 
  
27 
56 
78 
81 
  
227 
(81)
Credit impairment (charges)/releases and other provisions
(1)
- 
  
- 
- 
- 
- 
  
3 
- 
Net operating income/(expenses)
27 
14 
  
27 
56 
78 
81 
  
230 
(81)
Operating expenses
(50)
(28)
  
(11)
(9)
(34)
(3)
  
(37)
(25)
Litigation and conduct
(5)
(2)
  
(8)
(4)
(42)
(12)
  
(10)
- 
Costs to achieve
(17)
(5)
  
(8)
- 
5 
(7)
  
(22)
- 
UK bank levy
- 
- 
  
(9)
- 
- 
- 
  
(29)
- 
Total operating expenses  
(72)
(35)
  
(36)
(13)
(71)
(22)
  
(98)
(25)
Other net income/(expenses)
2 
2 
  
- 
(3)
(1)
1 
  
7 
(1)
(Loss)/profit before tax
(43)
(19)
  
(9)
40 
6 
60 
  
139 
(107)
Attributable (loss)/profit
(47)
(33)
  
122 
(41)
45 
(15)
  
192 
(110)
                     
Balance sheet information
£bn
£bn
  
£bn
£bn
£bn
£bn
  
£bn
£bn
Total assets
52.6 
45.7 
  
49.1 
41.5 
43.3 
33.7 
  
26.6 
n/a
Risk weighted assets
7.5 
6.3 
  
5.6 
7.5 
7.6 
16.0 
  
16.2 
n/a
Average allocated tangible equity
3.2 
2.3 
  
1.1 
0.3 
(1.1)
(2.8)
  
(3.1)
(9.1)
Average allocated equity
3.6 
2.8 
  
1.4 
0.7 
(0.7)
(2.5)
  
(2.9)
(8.6)
 
1
RWAs are on a CRD IV fully loaded basis. CRD IV rules came into effect in Q413; therefore no Q313 comparative is available. Average allocated equity and tangible equity are shown on an estimated CRD IV basis. Balance sheet comparative figures have also been restated from Q413 to adopt the offsetting amendments to IAS32, Financial Instruments: Presentation; therefore no Q313 comparative is available. 
 
 
Performance Management
 
Returns and equity by business
 
Returns on average equity and average tangible equity are calculated as profit for the period attributable to ordinary equity holders of the parent (adjusted for the tax credit recorded in reserves in respect of interest payments 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). Allocated equity has been calculated as 10.5% of 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. Head Office equity includes the unallocated Group equity arising from the difference between the CRD IV CET1 ratio and 10.5%. 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.
 
 
Half year ended
Half year ended
 
30.06.15
30.06.14
Return on average tangible equity
%
%
Personal and Corporate Banking
16.4%
16.1%
Barclaycard
22.9%
23.6%
Africa Banking
14.0%
13.3%
Investment Bank
10.9%
6.0%
Barclays Core excluding Head Office
14.9%
12.6%
Head Office impact1 
(1.5%)
0.9%
Barclays Core
13.4%
13.5%
Barclays Non-Core impact1 
(4.3%)
(6.0%)
Barclays Group adjusted total
9.1%
7.5%
     
 
Half year ended
Half year ended
 
30.06.15
30.06.14
Return on average equity
%
%
Personal and Corporate Banking
12.3%
12.1%
Barclaycard
18.2%
18.9%
Africa Banking
10.3%
9.6%
Investment Bank
10.2%
5.7%
Barclays Core excluding Head Office
12.3%
10.5%
Head Office impact1 
(1.2%)
0.5%
Barclays Core
11.1%
11.0%
Barclays Non-Core impact1 
(3.4%)
(4.5%)
Barclays Group adjusted total
7.7%
6.5%
 
 
 
Half year ended
Half year ended
Profit/(loss) attributable to ordinary
30.06.15
30.06.14
equity holders of the parent 
£m
£m
Personal and Corporate Banking
1,114 
1,044 
Barclaycard
570 
540 
Africa Banking
208 
181 
Investment Bank
774 
441 
Head Office  
(83)
31 
Barclays Core
2,583 
2,237 
Barclays Non-Core
(396)
(458)
Barclays Group adjusted total
2,187 
1,779 
 
1
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.
 
 
Half year ended
Half year ended
 
30.06.15
30.06.14
Average allocated tangible equity
£bn
£bn
Personal and Corporate Banking
13.6 
13.0 
Barclaycard
5.0 
4.6 
Africa Banking
3.0 
2.7 
Investment Bank
14.2 
14.7 
Head Office1 
2.7 
(1.9)
Barclays Core
38.5 
33.1 
Barclays Non-Core
9.7 
14.2 
Barclays Group adjusted total
48.2 
47.3 
     
 
Half year ended
Half year ended
 
30.06.15
30.06.14
Average allocated equity
£bn
£bn
Personal and Corporate Banking
18.1 
17.3 
Barclaycard
6.3 
5.7 
Africa Banking
4.0 
3.8 
Investment Bank
15.1 
15.4 
Head Office1 
3.2 
(1.6)
Barclays Core
46.7 
40.6 
Barclays Non-Core
9.8 
14.5 
Barclays Group adjusted total
56.5 
55.1 
     
 
As at 30.06.15
As at 31.12.14
Period end allocated equity
£bn
£bn
Personal and Corporate Banking
17.9 
17.9 
Barclaycard
6.3 
6.2 
Africa Banking
3.9 
4.0 
Investment Bank
13.7 
14.7 
Head Office1 
5.2 
2.1 
Barclays Core
47.0 
44.9 
Barclays Non-Core
8.3 
11.0 
Barclays Group adjusted total
55.3 
55.9 
 
 
 
1
Based on 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.
 
Margins and balances
              
 
Half year ended 30.06.15
  
Half year ended 30.06.14
 
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
 3,203 
 214,906 
 3.01 
  
 3,057 
 208,160 
 2.96 
Barclaycard
 1,704 
 37,967 
 9.05 
  
 1,500 
 33,410 
 9.05 
Africa Banking
 1,068 
 36,096 
 5.97 
  
 1,007 
 34,574 
 5.87 
Total Personal and Corporate Banking, Barclaycard and Africa Banking
 5,975 
 288,969 
 4.17 
  
 5,564 
 276,144 
 4.06 
Investment Bank
 276 
      
 334 
    
Head Office
(178)
      
 1 
    
Core
 6,073 
      
 5,899 
    
Barclays Non-Core
 128 
      
 183 
    
Total net interest income
 6,201 
      
 6,082 
    
 
 
·     Total PCB, Barclaycard and Africa Banking NII increased 7% to 5,975m due to:
 
 
 
-    An increase in average customer assets to £289.0bn (2014: £276.1bn) with growth in PCB Mortgages, Barclaycard, and Africa Banking
 
 
 
-    Net interest margin increased 11bps to 4.17% primarily due to higher deposits margins within Personal and Corporate Banking, partially offset by the impact of mortgage margin pressure from existing customer rate switching
     and lower Corporate debt margins. Group NII increased to £6.2bn (2014: £6.1bn) including net structural hedge contributions of £0.7bn (2014: £0.8bn)
 
 
 
·     Net interest margin by business reflects movements in the Group's internal funding rates which are based on the cost to the Group of alternative funding in wholesale markets. The internal funding rate prices intra-group
       funding and liquidity to appropriately give credit to businesses with net surplus liquidity and to charge those businesses in need of alternative funding at a rate that is driven by prevailing market rates and includes a term
       premium
 
 
Quarterly analysis for PCB, Barclaycard and Africa Banking:
      
 
Quarter ended 30.06.15
 
Net interest income
Average customer assets
Net interest margin
 
£m
£m
%
Personal and Corporate Banking
1,602 
215,069 
2.99 
Barclaycard
883 
38,025 
9.31 
Africa Banking
521 
35,610 
5.87 
Total Personal and Corporate Banking, Barclaycard and Africa Banking
3,006 
288,704 
4.18 
       
 
Quarter ended 31.03.15
Personal and Corporate Banking
1,601 
214,645 
3.02 
Barclaycard
821 
37,909 
8.78 
Africa Banking1 
547 
36,603 
6.06 
Total Personal and Corporate Banking, Barclaycard and Africa Banking
2,969 
289,157 
4.18 
       
 
Quarter ended 31.12.14
Personal and Corporate Banking
1,619 
212,444 
3.02 
Barclaycard
757 
36,932 
8.13 
Africa Banking
546 
36,465 
5.94 
Total Personal and Corporate Banking, Barclaycard and Africa Banking
2,922 
285,841 
4.06 
       
 
Quarter ended 30.09.14
Personal and Corporate Banking
1,622 
210,859 
3.05 
Barclaycard
787 
35,308 
8.84 
Africa Banking
540 
35,026 
6.12 
Total Personal and Corporate Banking, Barclaycard and Africa Banking
2,949 
281,193 
4.16 
 
 
1
 Q115 Net Interest Income has been revised by £14m to accurately reflect the classification of income across financial statement line items.
 
 
Risk Management
 
Risk management and principal risks
 
Barclays risk management responsibilities are laid out in the Enterprise Risk Management Framework (ERMF), which creates clear ownership and accountability, with the purpose that the Group's most significant risk exposures are understood and managed in accordance with agreed risk appetite, and that there is regular reporting of both risk exposures and the operating effectiveness of controls. It includes those risks incurred by Barclays that are foreseeable, continuous, and material enough to merit establishing specific bank-wide control frameworks. These are known as Key Risks and are grouped into five Principal Risks: Credit Risk; Market Risk; Funding Risk; Operational Risk; and Conduct Risk.
 
Further detail on these risks and how they are managed is available from the 2014 Annual Report and Accounts or online at www.barclays.com/investorrelations. For 2015, reputation risk has been recognised as a Key Risk within conduct risk given the close alignment between them and the fact that as separate Principal Risks they had a common Principal Risk Officer. There has been no other significant change to the Key Risks, risk management or principal uncertainties during the period or expected for the remaining six months of the financial year.
 
While the risks to the Eurozone have receded slightly following the recent agreement for a bailout of Greece, should this agreement falter the potential for a default by Greece and subsequent Euro exit would re-emerge, which could disrupt capital markets as well as local markets and adversely impact Barclays' performance where it has larger asset and funding positions, e.g. Italy and Portugal.
 
The following section gives an overview of the performance in Funding Risk - Liquidity, Funding Risk - Capital, Credit Risk and Market Risk for the period.
 
Funding & liquidity
 
Whilst Barclays has a comprehensive framework for managing the Group's liquidity risks, liquidity risk is managed separately at Barclays Africa Group Limited (BAGL) due to local currency and funding requirements. Unless stated otherwise, all disclosures in this section exclude BAGL, which is reported on a stand-alone basis. Adjusting for local requirements, BAGL's liquidity risk is managed on a consistent basis to Barclays Group.
 
Liquidity stress testing
 
Compliance with internal and regulatory stress tests
Barclays'
LRA          (30 day Barclays specific requirement)1 
  
Estimated CRDIV LCR
 
£bn
  
£bn
Eligible liquidity buffer
145 
  
150 
Net stress outflows
122 
  
124 
Surplus
 23 
  
 26 
       
Liquidity pool as a percentage of anticipated net outflows as at 30 June 2015
119%
  
121%
Liquidity pool as a percentage of anticipated net outflows as at 31 December 2014
124%
  
124%
 
Barclays manages the Group's liquidity position against the Group's internally defined Liquidity Risk Appetite (LRA) and regulatory metrics, such as the Individual Liquidity Guidance (ILG) provided by the PRA, and the CRD IV Liquidity Coverage Ratio (LCR). As at 30 June 2015, the Group held eligible liquid assets significantly in excess of 100% of net stress outflows for both the 30 day Barclays-specific LRA and the LCR.  The surpluses were built to position the Group for outflows associated with credit rating changes as a result of revised assessment of sovereign support.  Whilst the ratings changes occurred during Q215, the expected funding impacts had not fully materialised by the end of H115. 
 
 
Barclays estimated its Net Stable Funding Ratio (NSFR) at 106% (2014: 102%) based on the final NSFR guidelines published by the BCBS in October 2014.
 
 
1
Of the three stress scenarios monitored as part of the LRA, the 30 day Barclays specific scenario results in the lowest ratio at 119% (2014: 124%). This compares to 149% (2014: 135%) under the 90 day market-wide scenario and 121% (2014: 127%) under the 30 day combined scenario.
 
 
Funding Risk - Liquidity
Composition of the Group Liquidity Pool
            
   
Liquidity pool 30.06.2015
Liquidity pool of which PRA eligible1 
Liquidity pool of which CRDIV LCR-eligible2 
Liquidity pool 31.12.2014
       
Level 1
Level 2A
  
As at 30.06.2015
  
£bn
£bn
£bn
£bn
£bn
Cash and deposits with central banks3 
  
 31 
 28 
 28 
 1 
 37 
             
Government bonds4 
            
AAA rated
  
 74 
 73 
 73 
 - 
 73 
AA+ to AA- rated
  
 9 
 8 
 9 
 - 
 12 
Other government bonds
  
 3 
 2 
 - 
 2 
 - 
Total Government bonds
  
 86 
 83 
 82 
 2 
 85 
             
Other
            
Supranational bonds and multilateral development banks
  
 7 
 3 
 7 
 - 
 9 
Agencies and agency mortgage-backed securities
  
 15 
 - 
 9 
 6 
 11 
Covered bonds (rated AA- and above)
  
 3 
 - 
 3 
 - 
 3 
Other
  
 3 
 - 
 - 
 - 
 4 
Total other
  
 28 
 3 
 19 
 6 
 27 
             
Total as at 30 June 2015
  
 145 
 114 
 129 
 9 
  
Total as at 31 December 2014
  
 149 
122 
 136 
 7 
  
 
Barclays manages the liquidity pool on a centralised basis. The liquidity pool is held unencumbered and is not used to support payment or clearing requirements. As at 30 June 2015, 93% (2014: 92%) of the liquidity pool was located in Barclays Bank PLC and was available to meet liquidity needs across the Barclays Group. The residual liquidity pool is held predominantly within Barclays Capital Inc. The portion of the liquidity pool outside of Barclays Bank PLC is held primarily against entity-specific stressed outflows and regulatory requirements.
 
Deposit funding
          
 
As at 30.06.2015
  
As at 31.12.14
Funding of loans and advances to customers
(including BAGL)
Loans and advances to customers
Customer deposits
Loan to deposit ratio
  
Loan to deposit ratio
 
£bn
£bn
%
  
%
Personal and Corporate banking
 217 
 298 
      
Barclaycard
 37 
 8 
      
Africa Banking
 34 
 34 
      
Non-Core retail
 18 
 7 
      
Total Retail funding
 306 
 347 
 88 
  
89 
           
Investment Bank, Non-core wholesale and Head Office
 37 
 14 
      
Trading settlement balances and collateral
 88 
 77 
      
Total
 431 
 438 
 98 
  
100 
 
PCB, Barclaycard, Africa Banking and Non-Core retail are largely funded by customer deposits. The loan to deposit ratio for these businesses was 88% (2014: 89%). The customer deposits in excess of loans and advances are primarily used to fund liquidity buffer requirements for these businesses. The Investment Bank is funded with wholesale liabilities and does not rely on customer deposit funding from these businesses. The loan to deposit ratio for the Group was 98% (2014: 100%).
 
 
 
1
£114bn (2014: £122bn) of the liquidity pool is PRA eligible as per BIPRU 12.7. In addition, there are £12bn  (2014: £12bn) of Level 2 assets available, as per the PRA's announcement in August 2013 that certain assets  specified by PRA as Level 2  assets can be  used on a transitional basis.
2
The LCR-eligible assets presented in this table represent only those assets which are also eligible for the Group liquidity pool and do not include any Level 2B assets as defined by the CRDIV Delegated Act.
3
Of which over 95% (2014: over 95%) was placed with the  Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.
4
Of which over 90% (2014: over 95%) are comprised of UK, US, Japanese, French, German, Danish, Swiss and Dutch securities.
 
Wholesale funding
 
Funding of other assets
As at 30.06.15
Assets
£bn
  
Liabilities
£bn
         
Trading Portfolio Assets
 33 
  
Repurchase agreements
 85 
Reverse repurchase agreements
 52 
      
         
Reverse repurchase agreements
 41 
  
Trading Portfolio Liabilities
 41 
         
Derivative Financial Instruments
 340 
  
Derivative Financial Instruments
 342 
         
Liquidity pool 1 
 105 
  
Less than 1 year wholesale debt
 68 
Other unencumbered assets 2 
 115 
  
Greater than 1 year wholesale debt and equity
 150 
 
·     Trading portfolio assets are largely funded by repurchase agreements with 57% (2014: 54%) secured against highly liquid assets3. The weighted average maturity of these repurchase agreements secured against less liquid assets        was 77 days (2014: 56 days)
 
 
·     The majority of reverse repurchase agreements are matched by repurchase agreements. As at 30 June 2015, 55% (2014: 66%) of matched book activity was secured against highly liquid assets3. The remainder of reverse repurchase        agreements are used to settle trading portfolio liabilities
 
 
·     Derivative assets and liabilities are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and the remaining portions are largely offset once netted against cash collateral        received and paid
 
 
·     The Group liquidity pool is primarily funded by wholesale debt with the remainder being funded by customer deposits and other assets are largely matched by term wholesale debt and equity
 
 
 
1
The portion of the liquidity pool estimated to be funded by wholesale funds.
2
Predominantly available for sale investments, trading portfolio assets, financial assets designated at fair value and loans and advances to banks.
3
Highly liquid assets are limited to government bonds, US agency securities and US agency mortgage-backed securities.
 
 
Composition of wholesale funding1
 
In preparation for a Single Point of Entry resolution model, the Group has started to issue debt capital and term senior unsecured funding out of Barclays PLC, the holding company. The Group expects to refinance most debt capital and term senior unsecured debt out of Barclays PLC over time.
 
Maturity profile
 
 
Not more than one month
Over one month but not more than three months
Over three months but not more than six months
Over six months but not more than nine months
Over nine months but not more than one year
Sub-total less than one year
Over one year but not more than two years
Over two years but not more than five years
Over five years
Total
 
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
£bn
Barclays PLC
                    
Senior unsecured (Public Benchmark)
- 
- 
- 
- 
- 
- 
- 
2.5 
2.0 
4.5 
Subordinated liabilities
- 
- 
- 
- 
- 
- 
- 
0.8 
- 
0.8 
Barclays Bank PLC
                    
Deposits from Banks
11.4 
6.3 
1.2 
0.7 
0.5 
20.1 
0.5 
- 
0.4 
21.0 
Certificates of Deposit and Commercial Paper
1.1 
6.2 
6.3 
4.2 
2.3 
20.1 
0.8 
1.8 
0.7 
23.4 
Asset Backed Commercial Paper
3.2 
1.9 
0.6 
- 
- 
5.7 
- 
- 
- 
5.7 
Senior unsecured (Public benchmark)
- 
1.0 
- 
1.3 
- 
2.3 
4.8 
5.4 
3.6 
16.1 
Senior unsecured (Privately placed)2 
1.8 
1.7 
2.0 
2.1 
2.7 
10.3 
6.9 
11.4 
10.5 
39.1 
Covered bonds/ABS
- 
1.1 
0.2 
0.9 
1.1 
3.3 
4.1 
6.2 
4.0 
17.6 
Subordinated liabilities
- 
- 
- 
- 
- 
- 
- 
3.0 
15.3 
18.3 
Other3 
2.9 
0.9 
1.1 
1.0 
0.2 
6.1 
1.7 
1.1 
1.6 
10.5 
Total as at 30.06.15
20.4 
19.1 
11.4 
10.2 
6.8 
67.9 
18.8 
32.2 
38.1 
157.0 
Of which secured
4.7 
3.8 
1.5 
1.4 
1.3 
12.7 
4.4 
6.3 
4.1 
27.5 
Of which unsecured
15.7 
15.3 
9.9 
8.8 
5.5 
55.2 
14.4 
25.9 
34.0 
129.5 
Total as at 31.12.14
16.8 
23.2 
14.4 
13.5 
7.5 
75.4 
14.0 
36.6 
45.4 
171.4 
Of which secured
5.3 
7.8 
1.7 
1.9 
0.3 
17.0 
2.7 
7.6 
6.0 
33.3 
Of which unsecured
11.5 
15.4 
12.7 
11.6 
7.2 
58.4 
11.3 
29.0 
39.4 
138.1 
 
Outstanding wholesale funding includes £39bn (2014: £45bn) of privately placed senior unsecured notes in issue. These notes are issued through a variety of distribution channels including intermediaries and private banks. Although not a requirement, the liquidity pool exceeded wholesale funding maturing in less than one year by £77bn (2014: £74bn).
 
The average maturity of wholesale funding net of the liquidity pool was at least 120 months (2014: 105 months).
 
Term financing
 
The Group issued £6bn of term funding net of early redemptions during H115. Barclays has £9bn of term funding maturing in the remainder of 2015 and £13bn in 20164.
 
The Group expects to issue more public wholesale debt in the remainder of 2015, in order to maintain a stable and diverse funding base by type, currency and distribution channel.
 
 
1
The composition of wholesale funds comprises the balance sheet reported Deposits from Banks, Financial liabilities at Fair Value, Debt Securities in Issue and Subordinated Liabilities, excluding cash collateral and settlement balances. It also does not include collateral swaps, including participation in the Bank of England's Funding for Lending Scheme.
2
Includes structured notes of £33bn, £9bn of which matures within one year.
3
Primarily comprised of fair value deposits £5bn and secured financing of physical gold £4bn.
4
Includes £1bn of bilateral secured funding in 2015 and £1bn in 2016.
 
 
Credit rating
 
 
Barclays Bank PLC
Standard & Poor's
Moody's
Fitch
       
Long Term (Outlook)
A- (Stable)
A2 (Stable)
A (Stable)
Short Term
A-2
P-1
F1
Standalone rating1 
bbb+
baa2
a
       
Barclays PLC
Standard & Poor's
Moody's
Fitch
       
Long Term (Outlook)
BBB (Stable)
Baa3 (Stable)
A (Stable)
Short Term
A-2
P-3
F1
 
During Q215 all three credit rating agencies took industry-wide rating actions driven by their assessment of sovereign support and/or methodology updates. S&P downgraded the long- and short-term senior unsecured ratings of Barclays Bank PLC by one notch from A/A-1 to A-/A-2. This was driven by the removal of two notches of sovereign support, partially offset by a one notch uplift to reflect "Additional Loss Absorbing Capacity". Moody's downgraded the long- and short-term senior unsecured debt ratings of Barclays PLC from A3/P-2 to Baa3/P-3 due to the removal of three sovereign support notches with no methodology driven uplift. Fitch affirmed both Barclays and Barclays Bank PLC's senior unsecured ratings at A/F1. Barclays' standalone credit ratings have not been impacted by these actions. The outlook on all credit ratings is now stable.
 
 
Barclays Africa Group Limited
 
·     Liquidity risk is managed separately at BAGL due to local currency, funding and regulatory requirements
 
·     In addition to the Group liquidity pool, BAGL held £7bn (2014: £7bn) of liquidity pool assets against BAGL-specific anticipated stressed outflows. The liquidity pool consists of South African government bonds and Treasury
       bills
 
·     The BAGL loan to deposit ratio was 100% (2014: 102%)
 
·     As at 30 June 2015, BAGL had £10bn of wholesale funding outstanding (2014: £9bn), of which £5bn matures in less than one year (2014: £5bn)
 
1
Refers to Standard & Poor's Stand-Alone Credit Profile (SACP), Moody's Baseline Credit Assessment (BCA) and Fitch's Viability Rating (VR).
 
 
Funding Risk - 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
As at
 
30.06.15
31.03.15
31.12.14
Fully loaded Common Equity Tier 1
11.1%
10.6%
10.3%
PRA Transitional Common Equity Tier 11,2
11.1%
10.6%
10.2%
PRA Transitional Tier 13,4
14.0%
13.3%
13.0%
PRA Transitional Total Capital3,4
17.4%
16.8%
16.5%
       
Capital resources
£m
£m
£m
Total equity (excluding non-controlling interests) per the balance sheet
 59,281 
60,693 
59,567 
Less: Other equity instruments (recognised as AT1 capital)
(4,325)
(4,323)
(4,322)
Adjustment to retained earnings for foreseeable dividends
(731)
(981)
(615)
       
Minority interests (amount allowed in consolidated CET1)
1,200 
1,249 
1,227 
       
Other regulatory adjustments and deductions:
      
Additional value adjustments (PVA)
(1,506)
(1,984)
(2,199)
Goodwill and intangible assets
(8,145)
(8,255)
(8,127)
Deferred tax assets that rely on future profitability excluding temporary differences
(1,132)
(1,180)
(1,080)
Fair value reserves related to gains or losses on cash flow hedges
(1,185)
(2,029)
(1,814)
Excess of expected losses over impairment
(1,536)
(1,727)
(1,772)
Gains or losses on liabilities at fair value resulting from own credit
127 
497 
658 
Direct and indirect holdings by an institution of own CET1 instruments
(57)
(56)
(25)
Other regulatory adjustments
1 
(72)
(45)
Fully loaded CET1 capital
41,992 
41,833 
41,453 
Regulatory adjustments relating to unrealised gains1 
- 
- 
(583)
PRA Transitional CET1 capital
41,992 
41,833 
40,870 
       
Additional Tier 1 (AT1) capital
      
Capital instruments and related share premium accounts
4,325 
4,323 
4,322 
Qualifying AT1 capital (including minority interests) issued by subsidiaries
6,666 
6,815 
6,870 
Other regulatory adjustments and deductions
(130)
(130)
- 
Transitional Additional Tier 1 capital
10,861 
11,008 
11,192 
PRA Transitional Tier 1 capital
52,853 
52,841 
52,062 
       
Tier 2 (T2) capital
      
Capital instruments and related share premium accounts
792 
840 
800 
Qualifying T2 capital (including minority interests) issued by subsidiaries
12,268 
13,126 
13,529 
Other regulatory adjustments and deductions
(254)
(254)
(48)
PRA Transitional total regulatory capital
65,659 
66,553 
66,343 
       
Risk weighted assets
376,683 
395,899 
401,900 
       
 
1
The transitional regulatory adjustment for unrealised gains is no longer applicable from 1 January 2015 resulting in CET 1 capital on a fully loaded basis being equal to that on a transitional basis.
2
The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays' Tier 2 Contingent Capital Notes was 12.7% based on £47.9bn of transitional CRD IV CET1 capital and £376.7bn of RWAs.
3
The PRA transitional capital is based on guidance provided in policy statement PS 7/13 on strengthening capital standards published in December 2013.
4
As at 30 June 2015, Barclays' fully loaded Tier 1 capital was £46,468m, and the fully loaded Tier 1 ratio was 12.3%. Fully loaded total regulatory capital was £60,913m and the fully loaded total capital ratio was 16.2%. 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.
 
 
Movement in Common Equity Tier 1 (CET1) capital
Three months
Six months
 
ended
ended
 
30.06.15
30.06.15
 
£m
£m
Opening CET1 capital
41,833 
41,453 
     
Profit for the period
1,225 
1,770 
Movement in own credit
(370)
(531)
Movement in dividends
(559)
(989)
Retained regulatory capital generated from earnings
296 
250 
     
Movement in reserves - net impact of share schemes
293 
313 
Movement in available for sale reserves
(240)
(295)
Movement in currency translation reserves
(1,276)
(463)
Movement in retirement benefits
220 
(94)
Other reserves movements
16 
(18)
Movement in other qualifying reserves
(987)
(557)
     
Minority interests
(49)
(27)
Additional value adjustments (PVA)
478 
693 
Goodwill and intangible assets
110 
(18)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences
48 
(52)
Excess of expected loss over impairment
191 
236 
Direct and indirect holdings by an institution of own CET1 instruments
(1)
(32)
Other regulatory adjustments
73 
46 
Movement in regulatory adjustments and deductions
850 
846 
     
Closing CET1 capital
41,992 
41,992 
 
 
·     Fully loaded CRD IV CET1 ratio increased in H115 to 11.1% (December 2014; 10.3%) reflecting an increase in CET1 capital of £0.5bn to £42.0bn and decrease in RWAs of £25.2bn to £377bn
 
 
·     Capital generated from earnings increased CET1 capital by £0.3bn after absorbing adjusting items, own credit and dividends paid and foreseen. Other material movements in CET1 capital were:
 
 
 
-    £0.6bn decrease in other qualifying reserves largely due to a £0.5bn decrease in the currency translation reserve as GBP strengthened against EUR, USD and ZAR
 
 
 
-    £0.8bn increase due to lower regulatory adjustments and deductions largely as a result of a £0.7bn decrease in the PVA deduction, which includes a tax credit of £0.4bn applied in Q2 and £0.3bn reductions across Non-Core
 
 
·     Transitional total capital decreased by £0.7bn to £65.7bn largely due to capital redemptions in the period of $225m fixed rate subordinated notes and £265m fixed rate guaranteed perpetual subordinated notes (T2 capital). Further decreases were as a result of higher capital deductions for holdings in own paper and ineligible minority interest
 
 
Risk weighted assets by risk type and business
       
Counterparty
        
Operational
  
Total
 
Credit risk
  
credit risk
  
Market risk
  
risk
  
RWAs
 
Std
IRB
  
Std
IRB
  
Std
IMA
        
                         
As at 30.06.15
£m
£m
  
£m
£m
  
£m
£m
  
£m
  
£m
Personal and Corporate Banking
31,687 
71,481 
  
268 
859 
  
108 
- 
  
16,176 
  
120,579 
Barclaycard
16,149 
18,624 
  
- 
- 
  
- 
- 
  
5,505 
  
40,278 
Africa Banking
8,003 
20,749 
  
18 
416 
  
306 
1,266 
  
5,604 
  
36,362 
Investment Bank
4,501 
36,117 
  
15,263 
11,412 
  
12,656 
15,718 
  
19,621 
  
115,288 
Head Office
487 
3,071 
  
102 
87 
  
1 
1,695 
  
2,104 
  
7,547 
Total Core
60,827 
150,042 
  
15,651 
12,774 
  
13,071 
18,679 
  
49,010 
  
320,054 
Barclays Non-Core
7,300 
13,761 
  
2,532 
13,267 
  
1,226 
10,893 
  
7,650 
  
56,629 
Total RWAs
68,127 
163,803 
  
18,183 
26,041 
  
14,297 
29,572 
  
56,660 
  
376,683 
                         
As at 31.12.14
                      
Personal and Corporate Banking
32,657 
70,080 
  
238 
1,049 
  
26 
- 
  
16,176 
  
120,226 
Barclaycard
15,910 
18,492 
  
- 
- 
  
- 
- 
  
5,505 
  
39,907 
Africa Banking
9,015 
21,794 
  
10 
562 
  
948 
588 
  
5,604 
  
38,521 
Investment Bank
5,773 
36,829 
  
13,739 
11,781 
  
18,179 
16,480 
  
19,621 
  
122,402 
Head Office
506 
2,912 
  
234 
62 
  
7 
521 
  
1,326 
  
5,568 
Total Core
63,861 
150,107 
  
14,221 
13,454 
  
19,160 
17,589 
  
48,232 
  
326,624 
Barclays Non-Core
10,679 
19,416 
  
3,023 
18,406 
  
2,236 
13,088 
  
8,428 
  
75,276 
Total RWAs
74,540 
169,523 
  
17,244 
31,860 
  
21,396 
30,677 
  
56,660 
  
401,900 
 
Movement analysis of risk weighted assets
 
Credit risk
Counterparty credit risk1 
Market risk2 
Operational risk
Total
Risk weighted assets
£bn
£bn
£bn
£bn
£bn
As at 1 January 2015
244.0 
49.1 
52.1 
56.7 
401.9 
Book size
3.0 
(6.1)
(4.4)
- 
(7.5)
Acquisitions and disposals
(9.6)
- 
(0.3)
- 
(9.9)
Book quality
(1.7)
(0.7)
0.7 
- 
(1.7)
Model updates
(1.7)
(1.3)
(2.3)
- 
(5.3)
Methodology and policy
1.9 
3.2 
(1.9)
- 
3.2 
Foreign exchange movement3 
(4.1)
- 
- 
- 
(4.1)
Other
0.1 
- 
- 
- 
0.1 
As at 30 June 2015
231.9 
44.2 
43.9 
56.7 
376.7 
 
RWAs decreased £25.2bn to £376.7bn:
 
·     Book size decreased RWAs by £7.5bn, due to risk reductions in the Investment Bank and Non-Core trading books, offset by increased PCB loans and advances to customers
 
·     Acquisitions and disposals decreased RWAs by £9.9bn, primarily driven by disposals in Non-Core, including the sale of the Spanish business
 
·     Book quality improved, resulting in a RWA reduction of £1.7bn, primarily driven by changes in risk profile within PCB and Non-Core
 
·     Model updates decreased RWAs by £5.3bn, following the implementation of diversification benefits across advanced general and specific market risk, as well as a recalibration of a credit risk model within the Investment Bank and        Non-Core
 
·     Methodology and policy changes increased RWAs by £3.2bn, due to the capture of an extended margin period of risk for securities financing transactions within the Investment Bank
 
·     Foreign exchange movements decreased RWAs by £4.1bn, as GBP appreciated against ZAR, USD and EUR
 
 
1
RWAs in relation to default fund contributions are included in counterparty credit risk.
2
RWAs in relation to CVA (£13.3bn) are included in market risk.
3
Foreign exchange movements do not include movements for counterparty credit risk or market risk.
 
Leverage ratio requirements
 
In January 2014, the Basel Committee finalised its revised standards (BCBS 270) for calculating the Basel 3 leverage ratio. The European Commission has implemented the amendments into the CRR via a delegated act which came into force from January 2015. The leverage calculation below uses the end-point CRR definition of Tier 1 capital for the numerator and the CRR definition of leverage exposure as adopted by a European Union delegated act.
 
Barclays does not believe that there is a material difference between the BCBS 270 leverage exposure previously disclosed and a leverage exposure calculated in accordance with the delegated act.  
 
At 30 June 2015 Barclays leverage ratio was 4.1%, which exceeds the expected minimum fully loaded requirement outlined by the Financial Policy Committee (FPC)1 of 3.7%, comprising the 3% minimum requirement, and the fully phased-in G-SII buffer.
 
Leverage exposure and ratio
      
 
As at
As at
As at
 
 30.06.15
31.03.15
31.12.14
Leverage exposure
£bn
£bn
£bn
       
Accounting assets
      
Derivative financial instruments
 341 
 480 
 440 
Cash collateral
 60 
 80 
 73 
Reverse repurchase agreements
 93 
 124 
 132 
Loans and advances and other assets
 703 
 732 
 713 
Total IFRS assets
 1,197 
 1,416 
 1,358 
       
Regulatory consolidation adjustments
(5)
(8)
(8)
       
Derivatives adjustments
      
Derivatives netting
(308)
(436)
(395)
Adjustments to cash collateral
(47)
(63)
(53)
Net written credit protection
 20 
25 
27 
Potential Future Exposure (PFE) on derivatives
 160 
 176 
 179 
Total derivatives adjustments
(175)
(298)
(242)
       
Securities financing transactions (SFTs) adjustments
 24 
46 
25 
       
Regulatory deductions and other adjustments
(14)
(15)
(15)
Weighted off-balance sheet commitments
 112 
114 
115 
       
Total fully loaded leverage exposure
 1,139 
1,255 
1,233 
       
Fully loaded CET1 capital
 42.0 
41.8 
41.5 
Fully loaded AT1 capital
 4.5 
4.5 
4.6 
Fully loaded Tier 1 capital
 46.5 
46.3 
46.0 
       
Fully loaded leverage ratio
4.1%
3.7%
3.7%
 
During H115 leverage exposure decreased £94bn to £1,139bn:
 
 
·     SFTs decreased by £40bn, primarily due to a reduction in IFRS reverse repurchase agreements of £39bn to £93bn, driven by reductions in matched book trading as a result of balance sheet deleveraging 
 
 
·     Total derivative exposures2 decreased £45bn primarily due to a  £19bn reduction in the PFE and a £19bn net reduction in IFRS derivatives and cash collateral.
 
 
 
-    The PFE on derivatives decreased £19bn to £160bn, mainly as a result of continued legacy portfolio run down and optimisation including trade compressions and tear-ups
 
 
 
-    Other derivatives exposures decreased £19bn to £46bn, driven by a net decrease in IFRS derivatives, primarily due to increases in major forward rate curves and continued legacy portfolio run down
 
 
 
-    Net written credit protection decreased £7bn to £20bn primarily due to a reduction in business activity and improved portfolio netting
 
 
·     Loans and advances and other assets decreased by £10bn to £703bn primarily driven by a reduction in trading portfolio assets
 
1
In July 2015 the PRA set out a consultation on how it proposes to implement the FPC recommendations in the UK. The PRA is expected to publish a policy statement, finalised rules and supervisory statements by the end of 2015.
2
Total derivative exposures include IFRS derivative financial instruments, cash collateral and total derivatives adjustments.
 
 
Credit Risk
 
Analysis of loans and advances to customers and banks
 
Loans and advances at amortised cost net of impairment allowances, by industry sector and geography
             
As at 30.06.15
United Kingdom
Europe
Americas
Africa and Middle East
Asia
Total
 
£m
£m
£m
£m
£m
£m
Banks
7,092 
12,377 
14,510 
2,617 
4,374 
40,970 
Other financial institutions
24,091 
20,546 
52,379 
2,873 
5,910 
105,799 
Home loans
133,491 
17,476 
695 
12,450 
229 
164,341 
Cards, unsecured loans and other personal lending
27,863 
4,691 
15,628 
8,561 
1,413 
58,156 
Construction and property
18,207 
1,035 
1,612 
1,909 
326 
23,089 
Other
41,403 
13,266 
11,228 
12,052 
4,963 
82,912 
Net loans and advances to customers and banks
252,147 
69,391 
96,052 
40,462 
17,215 
475,267 
Impairment allowance
2,484 
1,091 
581 
957 
80 
5,193 
Gross loans and advances to customers and banks
254,631 
70,482 
96,633 
41,419 
17,295 
480,460 
             
Loans and advances at FV
16,472 
405 
666 
1,002 
1 
18,546 
             
As at 31.12.14
            
Banks
6,900 
12,611 
12,917 
2,499 
5,338 
40,265 
Other financial institutions
23,685 
22,114 
49,160 
4,123 
4,306 
103,388 
Home loans
132,775 
19,713 
769 
13,356 
361 
166,974 
Cards, unsecured loans and other personal lending
28,061 
5,226 
15,666 
8,605 
1,356 
58,914 
Construction and property
17,837 
1,175 
1,655 
1,888 
287 
22,842 
Other
39,757 
11,972 
9,621 
12,020 
4,125 
77,495 
Net loans and advances to customers and banks
249,015 
72,811 
89,788 
42,491 
15,773 
469,878 
Impairment allowance
2,653 
1,219 
499 
1,001 
83 
5,455 
Gross loans and advances to customers and banks
251,668 
74,030 
90,287 
43,492 
15,856 
475,333 
             
Loans and advances at FV
17,627 
1,041 
894 
635 
1 
20,198 
 
Analysis of retail and wholesale loans and advances and impairment
    
As at 30.06.15
Gross
L&A
Impairment allowance
L&A net of impairment
Credit
risk loans
CRLs % of gross L&A
Loan impairment charges1 
Loan loss rates
 
£m
£m
£m
£m
%
£m
bps
Personal & Corporate Banking
137,311 
730 
136,581 
1,486 
1.1 
125 
18 
Africa Banking
20,414 
649 
19,765 
1,029 
5.0 
154 
152 
Barclaycard
38,689 
1,759 
36,930 
1,735 
4.5 
563 
293 
Barclays Core
196,414 
3,138 
193,276 
4,250 
2.2 
842 
86 
               
Barclays Non-Core
17,625 
420 
17,205 
1,077 
6.1 
51 
58 
Total Group Retail
214,039 
3,558 
210,481 
5,327 
2.5 
893 
84 
               
Investment Bank
123,094 
31 
123,063 
56 
- 
(6)
(1)
Personal & Corporate Banking
86,395 
835 
85,560 
1,846 
2.1 
54 
13 
Africa Banking
16,548 
243 
16,305 
642 
3.9 
39 
48 
Head Office and Other Operations
3,169 
- 
3,169 
4 
0.1 
1 
6 
Barclays Core
229,206 
1,109 
228,097 
2,548 
1.1 
88 
8 
               
Barclays Non-Core
37,215 
526 
36,689 
754 
2.0 
(24)
(13)
Total Group Wholesale
266,421 
1,635 
264,786 
3,302 
1.2 
64 
5 
               
Group Total
480,460 
5,193 
475,267 
8,629 
1.8 
957 
40 
               
Traded Loans
2,048 
n/a
2,048 
        
Loans and advances designated at fair value
18,546 
n/a
18,546 
        
Loans and advances held at fair value
20,594 
n/a
20,594 
        
               
Total loans and advances
501,054 
5,193 
495,861 
        
               
As at 31.12.14
              
Personal & Corporate Banking2 
136,544 
766 
135,778 
1,582 
1.2 
215 
16 
Africa Banking
21,334 
681 
20,653 
1,093 
5.1 
295 
138 
Barclaycard
38,376 
1,815 
36,561 
1,765 
4.6 
1,183 
308 
Barclays Core
196,254 
3,262 
192,992 
4,440 
2.3 
1,693 
86 
               
Barclays Non-Core
20,259 
428 
19,831 
1,209 
6.0 
151 
75 
Total Group Retail
216,513 
3,690 
212,823 
5,649 
2.6 
1,844 
85 
               
Investment Bank
106,377 
44 
106,333 
71 
0.1 
(14)
(1)
Personal & Corporate Banking2 
88,192 
873 
87,319 
2,112 
2.4 
267 
30 
Africa Banking
16,312 
246 
16,066 
665 
4.1 
54 
33 
Head Office and Other Operations
3,240 
- 
3,240 
- 
- 
- 
- 
Barclays Core
214,121 
1,163 
212,958 
2,848 
1.3 
307 
14 
               
Barclays Non-Core
44,699 
602 
44,097 
841 
1.9 
53 
12 
Total Group Wholesale
258,820 
1,765 
257,055 
3,689 
1.4 
360 
14 
               
Group Total
475,333 
5,455 
469,878 
9,338 
2.0 
2,204 
46 
               
Traded Loans
2,693 
n/a
2,693 
        
Loans and advances designated at fair value
20,198 
n/a
20,198 
        
Loans and advances held at fair value
22,891 
n/a
22,891 
        
               
Total loans and advances
498,224 
5,455 
492,769 
        
 
·     Loans and advances to customers and banks at amortised cost net of impairment increased to £475.3bn (2014: £469.9bn)
 
 
 
-    Investment Bank increased by £16.7bn to £123.1bn reflecting a net increase in cash collateral and settlement balances driven principally by higher trading volumes
 
 
 
-    Non-Core decreased by £10.0bn to £53.9bn due to a net reduction in cash collateral and settlements and the run off of assets in Europe
1
Excludes impairment charges on available for sale investments and reverse repurchase agreements. H115 impairment charges represent six months charge, whereas December 2014 impairment charges represent 12 months charge.
2
UK Business Banking has been reclassified from Retail to Wholesale in line with how the business is now managed. 2014 figures have been restated to reflect this, with net loans and advances of £8.4bn, credit risk loans of £482m and impairment charges of £48m being reclassified to Wholesale.
 
Analysis of potential credit risk loans and coverage ratios
        
 
CRLs
  
PPLs
  
PCRLs
 
As at
As at
  
As at
As at
  
As at
As at
 
30.06.15
31.12.14
  
30.06.15
31.12.14
  
30.06.15
31.12.14
 
£m
£m
  
£m
£m
  
£m
£m
Personal & Corporate Banking1 
1,486 
1,582 
  
151 
143 
  
1,637 
1,725 
Africa Banking
1,029 
1,093 
  
170 
161 
  
1,199 
1,254 
Barclaycard
1,735 
1,765 
  
217 
227 
  
1,952 
1,992 
Barclays Core
4,250 
4,440 
  
538 
531 
  
4,788 
4,971 
                 
Barclays Non-Core
1,077 
1,209 
  
24 
26 
  
1,101 
1,234 
Total Group Retail
5,327 
5,649 
  
562 
557 
  
5,889 
6,205 
                 
Investment Bank
56 
71 
  
270 
107 
  
326 
178 
Personal & Corporate Banking1 
1,846 
2,112 
  
498 
614 
  
2,344 
2,726 
Africa Banking
642 
665 
  
66 
94 
  
708 
759 
Head Office and Other Operations
4 
- 
  
- 
- 
  
4 
- 
Barclays Core
2,548 
2,848 
  
834 
815 
  
3,382 
3,663 
                 
Barclays Non-Core
754 
841 
  
29 
119 
  
783 
960 
Total Group Wholesale
3,302 
3,689 
  
863 
934 
  
4,165 
4,623 
                 
Group Total
8,629 
9,338 
  
1,425 
1,491 
  
10,054 
10,828 
                 
 
Impairment allowance
  
CRL coverage
  
PCRL coverage
 
As at
As at
  
As at
As at
  
As at
As at
 
30.06.15
31.12.14
  
30.06.15
31.12.14
  
30.06.15
31.12.14
 
£m
£m
  
%
%
  
%
%
Personal & Corporate Banking1 
730 
766 
  
49.1 
48.4 
  
44.6 
 44.4 
Africa Banking
649 
681 
  
63.1 
62.3 
  
54.1 
 54.3 
Barclaycard
1,759 
1,815 
  
101.4 
102.8 
  
90.1 
 91.1 
Barclays Core
3,138 
3,262 
  
73.8 
73.5 
  
65.5 
 65.6 
                 
Barclays Non-Core
420 
428 
  
39.0 
35.4 
  
38.1 
 34.7 
Total Group Retail
3,558 
3,690 
  
66.8 
65.3 
  
60.4 
 59.5 
                 
Investment Bank
31 
44 
  
55.4 
62.0 
  
9.5 
 24.7 
Personal & Corporate Banking1 
835 
873 
  
45.2 
41.3 
  
35.6 
 32.0 
Africa Banking
243 
246 
  
37.9 
37.0 
  
34.3 
 32.4 
Head Office and Other Operations
- 
- 
  
- 
- 
  
- 
- 
Barclays Core
1,109 
1,163 
  
43.5 
40.8 
  
32.8 
 31.7 
                 
Barclays Non-Core
526 
602 
  
69.8 
71.6 
  
67.2 
 62.7 
Total Group Wholesale
1,635 
1,765 
  
49.5 
47.8 
  
39.3 
 38.2 
                 
Group Total
5,193 
5,455 
  
60.2 
58.4 
  
51.7 
 50.4 
 
            
·    Credit Risk Loans (CRLs) decreased 8% to £8.6bn with a 10% decrease to £3.3bn in wholesale portfolios and 6% to £5.3bn in retail portfolios. This is primarily driven by reductions in PCB and Non-Core Europe due to improving economic conditions
 
 
1
UK Business Banking has been reclassified from Retail to Wholesale in line with how the business is now managed. 2014 figures have been restated to reflect this, with credit risk loans of £482m, PPLs of £32m and PCRLs of £514m being reclassified to Wholesale.
 
 
Analysis of forbearance programmes
 
Balances
  
Impairment allowance
  
Allowance coverage
 
As at
As at
  
As at
As at
  
As at
As at
 
30.06.15
31.12.14
  
30.06.15
31.12.14
  
30.06.15
31.12.14
 
£m
£m
  
£m
£m
  
%
%
Personal & Corporate Banking1 
1,744 
2,011 
  
45 
46 
  
2.6 
2.3 
Africa Banking
268 
299 
  
36 
45 
  
13.4 
15.1 
Barclaycard
805 
972 
  
285 
394 
  
35.4 
40.5 
Barclays Core
2,817 
3,282 
  
366 
485 
  
13.0 
14.8 
                 
Barclays Non-Core
365 
419 
  
40 
49 
  
11.0 
11.7 
Total Retail
3,182 
3,701 
  
406 
534 
  
12.8 
14.4 
                 
Investment Bank
174 
106 
  
13 
10 
  
7.5 
9.4 
Personal & Corporate Banking1 
1,841 
1,830 
  
291 
255 
  
15.8 
13.9 
Africa Banking
152 
132 
  
11 
7 
  
7.2 
5.3 
Barclays Core
2,167 
2,068 
  
315 
272 
  
14.5 
13.2 
                 
Barclays Non-Core
265 
651 
  
104 
271 
  
39.2 
41.6 
Total Wholesale
2,432 
2,719 
  
419 
543 
  
17.2 
20.0 
                 
Group Total
5,614 
6,420 
  
825 
1,077 
  
14.7 
16.8 
 
·     Retail balances on forbearance reduced by 14% to £3.2bn primarily due to PCB and Barclaycard
 
 
 
-    PCB: UK home loans decreased, principally due to a reduction in the proportion of accounts meeting the Mortgage Current Account reserve forbearance classification criteria
 
 
 
-    Barclaycard: Reduction primarily due to an asset sale in Q115 and updated entry criteria for forbearance programmes, which reduced inflows in the UK cards portfolio
 
 
·     Wholesale balances on forbearance reduced by 11% to £2.4bn due to a reduction in Non-Core. Core balances on forbearance rose by 5% to £2.2bn reflecting small increases in all businesses
 
 
Analysis of specific core portfolios/businesses
 
Secured home loans
 
·     The principal home loan portfolios listed below primarily comprise first lien mortgages and account for 87% (2014: 86%) of total home loans in the Group's retail core portfolios
 
 
Home loans principal portfolios
        
   
Gross loans and advances
90 day arrears, excluding recoveries
Non performing
proportion of outstanding balances
Annualised gross
charge-off
rates
Recoveries
proportion of
outstanding
balances
Recoveries
impairment
coverage ratio
As at 30.06.15
£m
%
%
%
%
%
 
PCB - UK
127,551 
0.2 
0.6 
0.4 
0.4 
8.9 
 
Africa - South Africa
11,046 
0.7 
4.2 
1.7 
3.5 
27.7 
               
As at 31.12.14
            
 
PCB - UK
126,668 
0.2 
0.6 
0.4 
0.4 
8.3 
 
Africa - South Africa
11,513 
0.7 
4.8 
1.9 
4.1 
31.1 
 
1
UK Business Banking forbearance has been reclassified from Retail to Wholesale, in line with the way the business is now managed. 2014 balances of £240m and impairment allowances of £30m have been restated to reflect this.
 
 
Home loans principal portfolios - distribution of balances by LTV1
        
 
PCB  - UK
Africa - South Africa
 
30.06.15
31.12.14
30.06.15
31.12.14
 
%
%
%
%
<=75%
90.7 
90.2 
76.7 
74.6 
>75% and <=80%
4.0 
4.2 
7.2 
7.7 
>80% and <=85%
2.2 
2.3 
5.7 
5.9 
>85% and <=90%
1.5 
1.4 
3.8 
4.3 
>90% and <=95%
0.9 
1.0 
2.4 
2.5 
>95% and <=100%
0.3 
0.4 
1.5 
1.5 
>100%
0.4 
0.5 
2.7 
3.5 
         
Portfolio Marked To Market LTV:
        
Balance weighted %
51.0 
51.6 
58.5 
59.9 
Valuation weighted %
39.1 
39.8 
39.4 
40.2 
         
For > 100% LTV:
        
Balances £m
528 
641 
294 
390 
Marked to market collateral £m
439 
558 
247 
324 
Average LTV: Balance weighted %
126.2 
120.9 
122.5 
124.2 
Average LTV: Valuation weighted %
120.2 
114.8 
118.8 
120.3 
% Balances in Recovery Book
5.0 
4.4 
34.8 
37.1 
 
·     PCB - UK: Arrears and charge-off rates remained steady, reflecting the continuing low base rate and benign economic conditions. Balance weighted LTV reduced to 51.0% (2014: 51.6%) as average house prices increased. This         increase also contributed to a reduction in home loans that have LTV >100% of 18% to £528m
 
·     Africa - South Africa: The decrease in non-performing balances to 4.2% (2014: 4.8%) was due to a further reduction in the recoveries book and continued strong performance of new lending. Balances with >100% LTV reduced        25% to £294m as the recoveries book decreased, and average house price appreciated
 
Home loans principal portfolios - new lending
  
 
PCB - UK
Africa - South Africa
 
30.06.15
30.06.14
30.06.15
30.06.14
New bookings (£m)2 
9,549 
 10,162 
811 
763 
New mortgages proportion above 85% LTV (%)
8.3 
5.0 
39.2 
32.9 
Average LTV on new mortgages: balance weighted (%)
62.3 
64.4 
75.1 
75.0 
Average LTV on new mortgages: valuation weighted (%)
53.6 
57.2 
66.2 
65.6 
 
·     PCB - UK: New lending during H115 reduced by 6%, in line with the reduction in market activity in the prime residential segment. The increase in mortgages with LTV above 85% to 8.3% (2014: 5.0%) reflected increased appetite
      for higher LTV lending in the UK as confidence in the housing market improved
 
 
·     Africa - South Africa: The proportion of new home loans with LTV above 85% increased to 39.2% (2014: 32.9%) due to a revised strategy which allows a greater proportion of higher LTV loans to be booked for lower risk
       customers
 
 
Exposures to interest only home loans
 
·     The Group provides interest-only mortgages to customers, mainly in the UK. Interest-only mortgages account for £51bn (2014: £51bn) of the total balance of £128bn (2014: £127bn) of UK home loans. This comprised £41bn (2014:        £42bn) to owner-occupied customers, and £10bn (2014: £9bn) to buy-to-let customers.
 
 
·     Of the £41bn exposure to owner-occupied customers, £35bn (2014: £35bn) was interest-only, with the remaining £6bn (2014: £7bn) representing the interest-only component of Part and Part3 mortgages.
 
Exposure to interest only owner-occupied home loans
As at
As at
 
30.06.15
31.12.14
Interest only balances (£m)
34,855 
35,328 
Total Impairment Coverage (bps)
10 
8 
Marked to market LTV: Balance weighted %
47.5 
48.7 
Marked to market LTV: Valuation weighted %
36.8 
37.6 
 
1
Portfolio marked to market based on the most updated valuation including recoveries balances. Updated valuations reflect the application of the latest house price index available in the country as at 30 June 2015.
2
2014 new bookings for South Africa Home Loan was revised to include new advances to existing customers.
3
A Part and Part Home Loan is a product in which part of the loan is interest only and part is amortising. Analysis excludes the interest only portion of the part and part book which contributes £6.4bn (2014: £6.6bn) to the total interest-only balance of £41.1bn (2014: £41.9bn). Total exposure on the part and part book is £9.1bn (2014: £9.8bn) and represents 7% of total UK home loans portfolio.
 
Credit cards, overdrafts and unsecured loans
 
·     The principal portfolios listed below accounted for 94% (2014: 94%) of the Group's total credit cards, overdrafts and unsecured loans
 
 
Principal Portfolios
 
Gross Loans and Advances
30 Day
Arrears, excluding recoveries
90 Day
Arrears, excluding recoveries
Annualised Gross
Charge-off
Rates
Recoveries
Proportion of
Outstanding Balances
Recoveries Impairment Coverage Ratio
As at 30.06.15
£m
%
%
%
%
%
 
Barclaycard
            
 
UK cards1 
17,378 
2.4 
1.2 
5.6 
5.3 
85.4 
 
US cards1 
14,299 
1.9 
0.9 
3.9 
2.1 
88.2 
 
Barclays Partner Finance
3,734 
1.4 
0.6 
2.3 
2.5 
80.6 
 
Germany cards
1,300 
2.6 
1.0 
3.8 
3.0 
81.9 
 
Iberia cards
901 
6.0 
2.6 
8.0 
6.2 
84.2 
 
Personal & Corporate Banking
            
 
UK personal loans
5,232 
1.8 
0.7 
3.0 
7.9 
75.1 
 
UK overdrafts
839 
5.0 
3.7 
8.0 
11.4 
87.4 
 
Africa Banking
            
 
South Africa cards 
2,278 
9.4 
5.2 
5.4 
6.6 
74.8 
 
South Africa personal loans
972 
5.9 
3.0 
7.8 
8.0 
72.5 
               
As at 31.12.14
            
 
Barclaycard
            
 
UK cards1 
17,447 
2.5 
1.2 
4.3 
4.9 
87.6 
 
US cards1 
14,005 
2.1 
1.0 
3.7 
1.8 
87.1 
 
Barclays Partner Finance
3,399 
1.5 
0.7 
2.4 
2.7 
76.8 
 
Germany cards
1,355 
2.5 
1.1 
3.8 
3.4 
82.8 
 
Iberia cards
968 
6.0 
2.5 
8.2 
6.3 
84.9 
 
Personal & Corporate Banking
            
 
UK personal loans
4,953 
2.0 
0.9 
3.4 
10.0 
76.3 
 
UK overdrafts
902 
5.8 
4.0 
7.1 
11.0 
89.9 
 
Africa Banking
            
 
South Africa cards 
2,364 
8.1 
4.6 
7.6 
5.9 
75.7 
 
South Africa personal loans
993 
5.4 
2.6 
8.1 
7.8 
70.8 
 
 
·     UK cards: Primary driver for the increased charge-off rate to 5.6% (2014: 4.3%) was debt sale activity on legacy forbearance plans, which required early acceleration of accounts to charge-off prior to sale. The decrease in recovery        coverage ratio was due to recent improvements in cash recoveries and further refinements to modelled impairment methodologies, including the use of more granular account segmentation
 
·     US cards: Arrears rates remained stable due to a strategy focused on high quality customers and low risk partnerships
 
·     UK personal loans: Arrears and charge-off rates fell despite a 5% growth in gross loans and advances and reflected the benign economic conditions
 
·     Barclays Partner Finance: The increase in recoveries impairment coverage was due to a reclassification of management adjustments to the impairment allowance that were previously held at the portfolio level, to the recoveries        segment. The overall coverage remains unchanged
 
·     South Africa cards: Increased arrears in part reflected the growth of bookings in 2014 in line with business strategy, as well as seasonal trends. The level of arrears was in line with the same period in 2014
 
1
For UK and US cards, outstanding recoveries balances for acquired portfolios recognised at fair value (which have no related impairment allowance) have been excluded from the recoveries impairment coverage ratio. Losses have been recognised where related to additional spend from acquired accounts in the period post acquisition.
 
Group exposures to Eurozone countries
 
·     The Group recognises the credit and market risk resulting from the ongoing volatility in the Eurozone and continues to monitor events closely while taking coordinated steps to mitigate the risks associated with the challenging
       economic environment
 
·     During H115 the Group's net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece decreased by £17.7bn to £25.6bn primarily due to a £13.2bn reduction in Spain following the sale of Spanish business
 
·     As at 30 June 2015, the local net funding deficit in Italy was €4.8bn (2014: €9.9bn) and the deficit in Portugal was €1.7bn (2014: €1.9bn). The net funding surplus in Spain was €3.3bn (2014: €4.3bn)
 
·     The following table shows Barclays exposure to Eurozone countries monitored internally as being higher risk and thus being the subject of particular management focus. The basis of preparation is consistent with that described
       in the 2014 Annual Report
 
·     The net exposure provides the most appropriate measure of the credit risk to which the Group is exposed. The gross exposure is also presented below, alongside off-balance sheet contingent liabilities and commitments
 
Sovereign
Financial
institutions
Corporate
Residential
mortgages
Other
retail lending
Net on-balance
Sheet exposure
  
Gross on-balance
sheet exposure
Contingent liabilities
and commitments
As at 30.06.15
£m
£m
£m
£m
£m
£m
  
£m
£m
Spain
 173 
 697 
 1,099 
15 
 311 
 2,295 
  
 9,285 
 1,865 
Italy
 1,333 
 426 
 972 
 11,895 
 832 
 15,458 
  
 21,899 
 2,468 
Portugal
 36 
 28 
 350 
 2,641 
 1,105 
 4,160 
  
 4,420 
 1,365 
Ireland
 38 
 2,101 
 1,247 
 61 
 51 
 3,498 
  
 7,077 
 2,208 
Cyprus
 26 
 7 
 44 
 17 
 31 
 125 
  
 379 
 22 
Greece
 6 
 5 
 15 
 6 
 3 
 35 
  
 972 
 - 
Total
 1,612 
 3,264 
 3,727 
 14,635 
 2,333 
 25,571 
  
 44,032 
 7,928 
                   
As at 31.12.14
                  
Spain
 108 
 14,043 
 1,149 
 12 
 248 
 15,560 
  
 24,873 
 2,863 
Italy
 1,716 
 485 
 1,128 
 13,530 
 1,114 
 17,973 
  
 25,967 
 3,033 
Portugal
 105 
 7 
 531 
 2,995 
 1,207 
 4,845 
  
 5,050 
 1,631 
Ireland
 37 
 3,175 
 1,453 
 43 
 50 
 4,758 
  
 9,445 
 2,070 
Cyprus
 28 
 12 
 61 
 6 
 16 
 123 
  
 707 
 26 
Greece
 1 
 11 
 15 
 - 
 - 
 27 
  
 1,279 
 - 
Total
 1,995 
 17,733 
 4,337 
 16,586 
 2,635 
 43,286 
  
 67,321 
 9,623 
 
Market Risk
 
Analysis of Management VaR
 
·     The table below shows the total Management VaR on a diversified basis by risk factor. Total Management VaR includes all trading positions in the Investment Bank, Non-Core, Africa Banking and Head Office
 
·     Limits are applied against each risk factor VaR as well as total Management VaR, which are then cascaded further by risk managers to each business
 
 
Management VaR (95%) by asset class
                
Six months ended
30.06.15
  
31.12.14
  
30.06.14
 
Daily Avg
High1 
Low1 
  
Daily Avg
High1 
Low1 
  
Daily Avg
High1 
Low1 
 
£m
£m
£m
  
£m
£m
£m
  
£m
£m
£m
Credit risk
10 
13 
8 
  
10 
13 
9 
  
12 
15 
9 
Interest rate risk
7 
12 
4 
  
12 
17 
7 
  
10 
14 
6 
Spread risk
3 
6 
2 
  
4 
5 
3 
  
5 
8 
3 
Basis risk
3 
4 
3 
  
3 
5 
2 
  
6 
8 
4 
Equity risk
9 
17 
5 
  
10 
15 
6 
  
12 
23 
8 
Commodity risk
2 
2 
1 
  
2 
3 
1 
  
3 
8 
2 
Foreign exchange risk
3 
5 
1 
  
4 
23 
1 
  
4 
6 
2 
Inflation risk
3 
5 
2 
  
2 
3 
2 
  
3 
4 
2 
Diversification effect
(22)
-
-
  
(26)
-
-
  
(32)
-  
-  
Total Management VaR
18 
25 
13 
  
21 
36 
17 
  
23 
31 
18 
 
 
·     With the exception of Interest Rate Risk, all asset class VaRs remained stable during H115
 
·     Average Interest Rate Risk Management VaR decreased by 42% to £7m, as certain positions included within the liquidity pool were transferred to Head Office Treasury banking book. These high quality and liquid banking book        assets are now reported as non-traded market risk exposures to ensure consistent management of the liquidity pool
 
·     This decrease together with a reduction in exposure in Non-Core led to a fall in total Management VaR of 14% to £18m
 
 
Analysis of net interest income sensitivity
 
The table below shows sensitivity analysis on the pre-tax net interest income for the non-trading financial assets and financial liabilities held at 31 May 2015 and 31 December 2014
 
Net interest income sensitivity (AEaR) by business
      
Period ended 31.05.152,3 
Personal & Corporate Banking
£m
Barclaycard
£m
Africa
£m 
Non-core
£m
Other4
£m 
Total
£m
+200bps
302 
(28)
20 
19 
(87)
226 
+100bps
150 
(15)
10 
10 
(62)
93 
-100bps
(392)
16 
(4)
- 
63 
(317)
-200bps
(442)
19 
(4)
(1)
64 
(364)
             
Period ended 31.12.143
            
+200bps
464 
(59)
26 
6 
(97)
340 
+100bps
239 
(27)
13 
3 
(58)
170 
-100bps
(426)
26 
(9)
(1)
26 
(384)
-200bps
(430)
29 
(17)
(1)
39 
(380)
 
·     In PCB, the reduction in NII sensitivity was due to increased hedging of certain deposit products exposure to interest rate changes
 
 
1
The high and low DVaR figures reported for each category did not necessarily occur on the same day as the high and low DVaR reported as a whole. Consequently a diversification effect balance for the high and low DVaR figures would not be meaningful and is therefore omitted from the above table.
2
Based on May 2015 data, being the latest available.
3
Excluding investment banking operations.
4
Excluding the banking book assets of the liquidity pool held in Head Office.
 
 
Statement of Directors' Responsibilities
 
The Directors (who are listed below) confirm that the condensed consolidated interim financial statements set out on pages 51 to 89 have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R and 4.2.8R namely:
 
·     An indication of important events that have occurred during the six months ended 30 June 2015 and their impact on the condensed consolidated interim financial statements, and a description of the principal risks
       and uncertainties for the remaining six months of the financial year
 
·     Material related party transactions in the six months ended 30 June 2015 and any material changes in the related party transactions described in the last Annual Report
 
 
Signed on behalf of the Board by
 
 
 
 
 
John McFarlane                                                                                                                                Tushar Morzaria
 
 
Executive Chairman                                                                                                                       Group Finance Director
 
 
Barclays PLC Board of Directors:
 
Executive Directors
John McFarlane (Executive Chairman)
Tushar Morzaria (Group Finance Director)
 
Non-executive Directors
Mike Ashley
Tim Breedon
Crawford Gillies
Reuben Jeffery
Wendy Lucas-Bull
Dambisa Moyo
Frits van Paasschen
Sir Michael Rake
Diane de Saint Victor
Diane Schueneman
Steve Thieke
 
 
 
Independent Auditors' Review Report to Barclays PLC
 
Report on the condensed consolidated interim financial statements
 
Our conclusion
We have reviewed the condensed consolidated interim financial statements, defined below, in the interim results announcement of Barclays PLC for the six months ended 30 June 2015. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
 
This conclusion is to be read in the context of what we say in the remainder of this report.
 
What we have reviewed
The condensed consolidated interim financial statements, which are prepared by Barclays PLC, comprise:
 
·     the condensed consolidated Balance Sheet as at 30 June 2015;
·     the condensed consolidated Income Statement for the six months ended 30 June 2015;
·     the condensed consolidated statement of Comprehensive Income for the period then ended;
·     the condensed consolidated statement of Cash Flows for the period then ended;
·     the condensed consolidated statement of Changes in Equity for the period then ended; and
·     the related notes to the condensed consolidated interim financial statements.

As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
The condensed consolidated interim financial statements included in the interim results announcement have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
 
What a review of condensed consolidated financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the interim results announcement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial statements.
 
Responsibilities for the condensed consolidated interim financial statements and the review
 
Our responsibilities and those of the directors1,2
The interim results announcement, including the condensed consolidated interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the results announcement in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express to the company a conclusion on the condensed consolidated interim financial statements in the interim results announcement based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
 
PricewaterhouseCoopers LLP
Chartered Accountants
28 July 2015
London, United Kingdom
 
1
The maintenance and integrity of the Barclays website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
2
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
 
 
Condensed Consolidated Financial Statements
 
Condensed consolidated income statement (unaudited)
   
Half year ended
Half year ended
Continuing operations
  
30.06.15
30.06.14
 
Notes1 
£m
£m
Net interest income
  
6,201 
6,082 
Net fee and commission income
  
4,004 
4,256 
Net trading income
  
2,660 
2,575 
Net investment income
  
923 
356 
Net premiums from insurance contracts
  
351 
336 
Other income
  
(3)
19 
Total income
  
14,136 
13,624 
Net claims and benefits incurred on insurance contracts
  
(248)
(240)
Total income net of insurance claims
  
13,888 
13,384 
Credit impairment charges and other provisions
  
(973)
(1,086)
Net operating income
  
12,915 
12,298 
       
Staff costs
2
(4,864)
(5,730)
Infrastructure costs
3
(1,590)
(1,568)
Administration and general expenses
3
(3,211)
(2,479)
Operating expenses
  
(9,665)
(9,777)
       
Loss on disposal of undertakings and share of results of associates and joint ventures
  
(136)
(20)
Profit before tax
  
3,114 
2,501 
Tax
4
(1,006)
(895)
Profit after tax
  
2,108 
1,606 
       
Attributable to:
      
Ordinary equity holders of the parent:
  
1,611 
1,126 
Other equity holders2 
  
159 
90 
Total equity holders of the parent2 
  
1,770 
1,216 
Non-controlling interests
5
338 
390 
Profit after tax
  
2,108 
1,606 
       
Earnings per share from continuing operations
      
Basic earnings per ordinary share2 
6
9.9p
7.0p
Diluted earnings per ordinary share2 
6
9.7p
7.0p
 
 
1
For notes to the Financial Statements see pages 56 to 89.
2
The profit after tax attributable to other equity holders of £159m (H114: £90m) is offset by a tax credit recorded in reserves of £32m (H114: £19m).  The net amount of £127m (H114: £71m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share.
 
Condensed consolidated statement of comprehensive income (unaudited)
       
   
Half year ended
Half year ended
Continuing operations
  
30.06.15
30.06.14
 
Notes1 
£m
£m
Profit after tax
  
2,108 
1,606 
       
Other comprehensive (loss)/income that may be recycled to profit or loss:
      
Currency translation reserve
15
(590)
(1,056)
Available for sale reserve
15
(294)
341 
Cash flow hedge reserve
15
(646)
254 
Other
  
41 
(53)
Other comprehensive loss that may be recycled to profit or loss
  
(1,489)
(514)
       
Other comprehensive (loss)/income not recycled to profit or loss:
      
Retirement benefit remeasurements
12
(93)
236 
       
Other comprehensive loss for the period
  
(1,582)
(278)
       
Comprehensive income for the period
  
526 
1,328 
       
Attributable to:
      
Equity holders of the parent
  
325 
1,064 
Non-controlling interests
  
201 
264 
Total comprehensive income for the period
  
526 
1,328 
 
 
1
 For notes, see pages 56 to 89.
 
 
Condensed consolidated balance sheet (unaudited)
   
As at
As at
Assets
  
30.06.15
31.12.14
 
Notes1 
£m
£m
Cash and balances at central banks
  
33,341 
39,695 
Items in the course of collection from other banks
  
1,227 
1,210 
Trading portfolio assets
  
98,048 
114,717 
Financial assets designated at fair value
  
33,335 
38,300 
Derivative financial instruments
8
341,312 
439,909 
Available for sale investments
  
96,210 
86,066 
Loans and advances to banks
  
44,548 
42,111 
Loans and advances to customers
  
430,719 
427,767 
Reverse repurchase agreements and other similar secured lending
  
93,138 
131,753 
Prepayments, accrued income and other assets
  
3,778 
3,607 
Investments in associates and joint ventures
  
577 
711 
Property, plant and equipment
  
3,620 
3,786 
Goodwill
  
4,832 
4,887 
Intangible assets
  
3,357 
3,293 
Current and deferred tax assets
4
4,490 
4,464 
Retirement benefit assets
12
33 
56 
Non-current assets classified as held for sale
  
4,154 
15,574 
Total assets
  
1,196,719 
1,357,906 
       
Liabilities
      
Deposits from banks
  
55,978 
58,390 
Items in the course of collection due to other banks
  
1,539 
1,177 
Customer accounts
  
438,270 
427,704 
Repurchase agreements and other similar secured borrowing
  
85,092 
124,479 
Trading portfolio liabilities
  
41,818 
45,124 
Financial liabilities designated at fair value
  
51,284 
56,972 
Derivative financial instruments
8
342,964 
439,320 
Debt securities in issue
  
75,525 
86,099 
Subordinated liabilities
10
19,664 
21,153 
Accruals, deferred income and other liabilities
  
11,838 
11,423 
Provisions
11
3,287 
4,135 
Current and deferred tax liabilities
4
885 
1,283 
Retirement benefit liabilities
12
1,091 
1,574 
Non-current liabilities classified as held for sale
  
1,909 
13,115 
Total liabilities
  
1,131,144 
1,291,948 
       
Equity
      
Called up share capital and share premium
13
21,523 
20,809 
Other reserves
15
1,334 
2,724 
Retained earnings
  
32,099 
31,712 
Shareholders' equity attributable to ordinary shareholders of parent
  
54,956 
55,245 
Other equity instruments
14
4,325 
4,322 
Total equity excluding non-controlling interests
  
59,281 
59,567 
Non-controlling interests
5
6,294 
6,391 
Total equity
  
65,575 
65,958 
Total liabilities and equity
  
1,196,719 
1,357,906 
 
1
 For notes, see pages 56 to 89.
 
 
Condensed consolidated statement of changes in equity (unaudited)
 
Called up share capital and share premium1 
Other equity instruments1 
Other reserves1 
Retained earnings
Total
Non-controlling interests2 
Total
equity
Half year ended 30.06.15
£m
£m
£m
£m
£m
£m
£m
Balance at 1 January 2015
20,809 
4,322 
2,724 
31,712 
59,567 
6,391 
65,958 
Profit after tax
- 
159 
- 
1,611 
1,770 
338 
2,108 
Currency translation movements
- 
- 
(463)
- 
(463)
(127)
(590)
Available for sale investments
- 
- 
(295)
- 
(295)
1 
(294)
Cash flow hedges
- 
- 
(634)
- 
(634)
(12)
(646)
Retirement benefit remeasurements
- 
- 
- 
(94)
(94)
1 
(93)
Other
- 
- 
- 
41 
41 
- 
41 
Total comprehensive income for the year
- 
159 
(1,392)
1,558 
325 
201 
526 
Issue of new ordinary shares
118 
- 
- 
- 
118 
- 
118 
Issue of shares under employee share schemes
596 
- 
- 
303 
899 
- 
899 
Other equity instruments coupons paid
- 
(159)
- 
32 
(127)
- 
(127)
Treasury shares
- 
- 
2 
(706)
(704)
- 
(704)
Dividends paid
- 
- 
- 
(746)
(746)
(301)
(1,047)
Other reserve movements
- 
3 
- 
(54)
(51)
3 
(48)
Balance at 30 June 2015
21,523 
4,325 
1,334 
32,099 
59,281 
6,294 
65,575 
               
Half year ended 31.12.14
              
Balance at 1 July 2014
20,655 
4,326 
(154)
33,241 
58,068 
6,957 
65,025 
Profit/(loss) after tax
- 
160 
- 
(1,300)
(1,140)
379 
(761)
Currency translation movements
- 
- 
1,501 
- 
1,501 
41 
1,542 
Available for sale investments
- 
- 
69 
- 
69 
3 
72 
Cash flow hedges
- 
- 
1,284 
- 
1,284 
2 
1,286 
Retirement benefit remeasurements
- 
- 
- 
(32)
(32)
1 
(31)
Other
- 
- 
- 
10 
10 
1 
11 
Total comprehensive income for the period
- 
160 
2,854 
(1,322)
1,692 
427 
2,119 
Issue of new ordinary shares
86 
- 
- 
- 
86 
- 
86 
Issue of shares under employee share schemes
68 
- 
- 
314 
382 
- 
382 
Other equity instruments coupons paid
- 
(160)
- 
35 
(125)
- 
(125)
Redemption of preference shares
- 
- 
- 
(104)
(104)
(687)
(791)
Treasury shares
- 
- 
24 
(91)
(67)
- 
(67)
Dividends paid
- 
- 
- 
(329)
(329)
(297)
(626)
Other reserve movements
- 
(4)
- 
(32)
(36)
(9)
(45)
Balance at 31 December 2014
20,809 
4,322 
2,724 
31,712 
59,567 
6,391 
65,958 
               
Half year ended 30.06.14
              
Balance at 1 January 2014
19,887 
2,063 
249 
33,186 
55,385 
8,564 
63,949 
Profit after tax
- 
90 
- 
1,126 
1,216 
390 
1,606 
Currency translation movements
- 
- 
(941)
- 
(941)
(115)
(1,056)
Available for sale investments
- 
- 
345 
- 
345 
(4)
341 
Cash flow hedges
- 
- 
260 
- 
260 
(6)
254 
Retirement benefit remeasurements
- 
- 
- 
237 
237 
(1)
236 
Other
- 
- 
- 
(53)
(53)
- 
(53)
Total comprehensive income for the year
- 
90 
(336)
1,310 
1,064 
264 
1,328 
Issue of new ordinary shares
64 
- 
- 
- 
64 
- 
64 
Issue of shares under employee share schemes
704 
- 
- 
379 
1,083 
- 
1,083 
Issue and exchange of equity instruments
- 
2,263 
- 
(155)
2,108 
(1,527)
581 
Other equity instruments coupons paid
- 
(90)
- 
19 
(71)
- 
(71)
Treasury shares
- 
- 
(67)
(775)
(842)
- 
(842)
Dividends paid
- 
- 
- 
(728)
(728)
(334)
(1,062)
Other reserve movements
- 
- 
- 
5 
5 
(10)
(5)
Balance at 30 June 2014
20,655 
4,326 
(154)
33,241 
58,068 
6,957 
65,025 
               
               
 
1
Details of Share Capital, Other  Equity Instruments and Other Reserves are shown on page 71.
2
Details of Non-controlling Interests are shown on page 59.
 
Condensed consolidated cash flow statement (unaudited)
    
 
Half year ended
Half year ended
Continuing operations
30.06.15
30.06.14
 
£m
£m
Profit before tax
3,114 
2,501 
Adjustment for non-cash items
2,998 
1,760 
Changes in operating assets and liabilities
6,976 
(3,082)
Corporate income tax paid
(929)
(586)
Net cash from operating activities
12,159 
593 
Net cash from investing activities
(13,569)
7,463 
Net cash from financing activities
(1,582)
(2,202)
Effect of exchange rates on cash and cash equivalents
(255)
(1,380)
Net (decrease)/increase in cash and cash equivalents
(3,247)
4,474 
Cash and cash equivalents at beginning of the period
78,479 
81,754 
Cash and cash equivalents at end of the period
75,232 
86,228 
 
Financial Statement Notes
 
1.            Basis of preparation
 
These condensed consolidated interim financial statements for the six months ended 30 June 2015 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34 Interim Financial Reporting, as adopted by the European Union. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with IFRSs as adopted by the European Union.
 
The accounting policies and methods of computation used in these condensed consolidated interim financial statements are the same as those used in the 2014 Annual Report.
 
Future accounting developments
 
During July 2015 the IASB confirmed the deferral of the effective date of IFRS 15 Revenue from Contracts with Customers by one year to 1 January 2018.
 
For further information on future accounting changes, refer to the Barclays 2014 Annual Report.
 
Going concern
 
The Directors confirm they are satisfied that the Group has adequate resources to continue in business for the foreseeable future. They confirm that it is appropriate to adopt the going concern basis for preparing accounts and there are no material uncertainties.
 
 
2.            Staff costs
 
 
Half year ended
Half year ended
 
30.06.15
30.06.14
Compensation costs
£m
£m
Deferred bonus charge
472 
573 
Current year bonus charges
456 
430 
Sales commissions, commitments and other incentives
66 
111 
Performance costs
994 
1,114 
Salaries
2,503 
2,510 
Social security costs
307 
363 
Post retirement benefits
(163)
327 
Other compensation costs
217 
296 
Total compensation costs
3,858 
4,610 
     
Other resourcing costs
    
Outsourcing
543 
532 
Redundancy and restructuring
71 
253 
Temporary staff costs
316 
263 
Other
76 
72 
Total other resourcing costs
1,006 
1,120 
     
Total staff costs
4,864 
5,730 
 
 
Total staff costs decreased 15% to £4,864m:
 
 
·     Group performance costs reduced 11% to £994m primarily reflecting lower deferred bonus charges
 
·     A gain in post retirement benefits of £163m (H114: £327m expense) due to a £429m (H114:£nil) credit recognised in Q115 as the valuation of a component of the defined retirement benefit liability was aligned to statutory provisions
 
·     Other resourcing costs decreased 10% to £1,006m primarily due to a reduction in redundancy and restructuring costs of 72% to £71m due to one-off restructurings in H114
 
As a result Group compensation: adjusted net operating income ratio reduced to 32% (2014: 38%).
 
No awards have yet been granted in relation to the 2015 bonus pool as decisions regarding incentive awards are not taken by the Remuneration Committee until the performance for the full year can be assessed. The current year bonus charge for the first six months represents an accrual for estimated costs in accordance with accounting requirements.
 
 
3.            Administration and general expenses
 
 
Half year  ended
Half year  ended
 
30.06.15
30.06.14
 
£m
£m
Infrastructure costs
    
Property and equipment
714 
727 
Depreciation of property, plant and equipment
279 
292 
Operating lease rentals
228 
288 
Amortisation of intangible assets
315 
251 
Impairment of property, equipment and intangible assets
54 
10 
Total infrastructure costs
 1,590 
 1,568 
     
Other costs
    
Consultancy, legal and professional fees
493 
 729 
Subscriptions, publications, stationery and communications
409 
 378 
Marketing, advertising and sponsorship
267 
 260 
Travel and accommodation
113 
 97 
Provisions for ongoing investigations and litigation primarily relating to Foreign Exchange
800 
                      - 
Provisions for UK customer redress
1,032 
 900 
Other administration and general expenses
97 
 115 
Total other costs
 3,211 
 2,479 
     
Total administration and general expenses
 4,801 
 4,047 
 
Administration and general expenses have increased 19% to £4,801m primarily driven by an increase in provisions for ongoing investigations and litigation primarily relating to Foreign Exchange. This was partially offset by savings from strategic cost programmes across infrastructure costs.
 
 
4.            Tax
 
 
Assets
  
Liabilities
Current and deferred tax assets and liabilities
30.06.15
31.12.14
  
30.06.15
31.12.14
 
£m
£m
  
£m
£m
Current tax
459 
334 
  
(689)
(1,021)
Deferred tax
4,031 
4,130 
  
(196)
(262)
Total
4,490 
4,464 
  
(885)
(1,283)
 
The deferred tax asset of £4,031m (2014: £4,130m) mainly relates to amounts in the US and UK.
 
The tax charge for H115 was £1,006m (2014: £895m), representing an effective tax rate of 32.3% (2014: 35.8%). The effective tax rate is higher than the UK statutory tax rate of 20.25% (2014: 21.5%) mainly due to profits outside of the UK taxed at higher local statutory tax rates, non-creditable taxes, non-deductible expenses and changes in non-UK tax rates, partially offset by the effect of non-taxable gains and income, changes in measurement of deferred tax assets and other items.
 
The UK Summer Budget introduced a number of changes impacting banks. These changes have not yet been substantively enacted and are therefore not reflected in H115 results.
 
5.                  Non-controlling interests
 
 
Profit attributable to non-controlling interests
  
Equity attributable to non-controlling interests
 
Half year ended 30.06.15
Half year ended 30.06.14
  
As at
30.06.15
As at
31.12.14
 
£m
£m
  
£m
£m
Barclays Bank PLC Issued:
          
- Preference shares
172 
237 
  
3,654 
3,654 
- Upper Tier 2 instruments
1 
1 
  
487 
486 
Barclays Africa Group Limited
165 
149 
  
2,149 
2,247 
Other non-controlling interests
- 
3 
  
4 
4 
Total
338 
390 
  
6,294 
6,391 
 
Equity attributable to non-controlling interest decreased 2% to £6,294m mainly driven by the depreciation of ZAR against GBP.
 
 
6.           Earnings per share
 
 
Half Year Ended
Half Year Ended
 
30.06.15
30.06.14
 
£m
£m
Profit attributable to ordinary equity holders of the parent from continuing operations
1,611 
1,126 
Tax credit on profit after tax attributable to other equity holders
32 
19 
Profit attributable to equity holders of the parent from continuing operations including dilutive impact on convertible options
1,643 
1,145 
Basic weighted average number of shares in issue
16,678 
16,296 
Number of potential ordinary shares
345 
127 
Diluted weighted average number of shares
17,023 
16,423 
     
Basic earnings per ordinary share1
9.9p
7.0p
Diluted earnings per ordinary share1
9.7p
7.0p
 
7.            Dividends on ordinary shares
 
It is Barclays policy to declare and pay dividends on a quarterly basis. The first interim dividend for 2015 of 1p per share was paid on 15 June 2015. The Board has decided to pay on 14 September 2015, a second interim dividend for 2015 of 1p per ordinary share to shareholders on the share register on 7 August 2015, making a total for H115 of 2p (H114: 2p).
 
 
Half year ended 30.06.15
Half year ended 30.06.14
Dividends paid during the period
Per share
Total
Per share
Total
 
Pence
£m
Pence
£m
Final dividend paid during period
3.5p
 578 
3.5p
564 
Interim dividends paid during period
1.0p
 168 
1.0p
164 
 
For qualifying US and Canadian resident ADR holders, the second interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the second interim dividend on 14 September 2015 to ADR holders on the record at close of business on 7 August 2015.
 
 
1
The profit after tax attributable to other equity holders of £159m (H114: £90m) is offset by a tax credit recorded in reserves of £32m (H114: £19m). The net amount of £127m (H114: £71m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share.
 
8.           Derivative financial instruments
 
 
 
Contract notional
amount
  
Fair value
As at 30.06.15
    
Assets
Liabilities
 
£m
  
£m
£m
Foreign exchange derivatives
3,613,760 
  
56,725 
(61,705)
Interest rate derivatives
23,653,217 
  
241,937 
(234,009)
Credit derivatives
1,076,180 
  
18,343 
(16,677)
Equity and stock index and commodity derivatives
933,049 
  
23,316 
(30,006)
Derivative assets/(liabilities) held for trading
29,276,206 
  
340,321 
(342,397)
         
Derivatives in Hedge Accounting Relationships
        
Derivatives designated as cash flow hedges
135,758 
  
180 
(69)
Derivatives designated as fair value hedges
154,444 
  
747 
(484)
Derivatives designated as hedges of net investments
4,033 
  
64 
(14)
Derivative assets/(liabilities) designated in hedge accounting relationships
294,235 
  
991 
(567)
         
Total recognised derivative assets/(liabilities)
29,570,441 
  
341,312 
(342,964)
         
As at 31.12.14
        
Foreign exchange derivatives
3,758,858 
  
74,433 
(79,281)
Interest rate derivatives
26,570,719 
  
308,343 
(299,881)
Credit derivatives
1,183,963 
  
23,507 
(22,367)
Equity and stock index and commodity derivatives
1,110,802 
  
31,987 
(37,094)
Derivative assets/(liabilities) held for trading
32,624,342 
  
438,270 
(438,623)
         
Derivatives in hedge accounting relationships
        
Derivatives designated as cash flow hedges
102,698 
  
240 
(60)
Derivatives designated as fair value hedges
162,898 
  
1,379 
(590)
Derivatives designated as hedges of net investments
2,852 
  
20 
(47)
Derivative assets/(liabilities) designated in hedge accounting relationships
268,448 
  
1,639 
(697)
         
Total recognised derivative assets/(liabilities)
32,892,790 
  
439,909 
(439,320)
 
Derivative assets decreased by £99bn to £341bn primarily reflecting an increase in the major interest rate forward curves and continued legacy portfolio run down.
 
Derivative asset exposures would be £308bn (2014: £398bn) lower than reported under IFRS if the netting of financial instruments and financial collateral were permitted for all amounts that are covered by enforceable netting arrangements, irrespective of whether the stricter requirements of IAS 32 were met. Similarly, derivative liabilities would be £310bn (2014: £397bn) lower. Netting posted on the balance sheet under IFRS for derivative assets and liabilities was £98bn (2014: £182bn) and £101bn (2014: £184bn) respectively.  
 
 
9.           Fair value of financial instruments
 
This section should be read in conjunction with Note 18 Fair value of financial instruments of the 2014 Annual Report, which provides more detail about accounting policies adopted, the definitions of the three levels of the fair value hierarchy, valuation methodologies used in calculating fair value and, the valuation control framework which governs oversight of valuations. There have been no changes in the accounting policies adopted or the valuation methodologies used.
 
Valuation
 
The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification:
 
 
Valuation technique using
    
 
Quoted market prices
Observable inputs
Significant unobservable inputs
    
 
(Level 1)
(Level 2)
(Level 3)
  
Total
As at 30.06.15
£m
£m
£m
  
£m
Trading portfolio assets
39,784 
52,580 
5,684 
  
98,048 
Financial assets designated at fair value
7,101 
8,226 
18,008 
  
33,335 
Derivative financial assets
7,162 
330,543 
3,607 
  
341,312 
Available for sale assets
46,821 
47,585 
1,804 
  
96,210 
Other1 
- 
- 
4,310 
  
4,310 
Total assets
100,868 
438,934 
33,413 
  
573,215 
           
Trading portfolio liabilities
(24,306)
(17,497)
(15)
  
(41,818)
Financial liabilities designated at fair value
(9)
(49,329)
(1,946)
  
(51,284)
Derivative financial liabilities
(7,205)
(332,479)
(3,280)
  
(342,964)
Other1 
- 
- 
(1,909)
  
(1,909)
Total liabilities
(31,520)
(399,305)
(7,150)
  
(437,975)
           
As at 31.12.14
£m
£m
£m
  
£m
Trading portfolio assets
48,962 
59,428 
6,327 
  
114,717 
Financial assets designated at fair value
9,934 
8,461 
19,905 
  
38,300 
Derivative financial assets
9,863 
425,301 
4,745 
  
439,909 
Available for sale assets
44,234 
40,519 
1,313 
  
86,066 
Other1 
33 
198 
15,550 
  
15,781 
Total assets
113,026 
533,907 
47,840 
  
694,773 
           
Trading portfolio liabilities
(26,840)
(17,935)
(349)
  
(45,124)
Financial liabilities designated at fair value
(15)
(55,141)
(1,816)
  
(56,972)
Derivative financial liabilities
(10,313)
(424,687)
(4,320)
  
(439,320)
Other1 
- 
- 
(13,115)
  
(13,115)
Total liabilities
(37,168)
(497,763)
(19,600)
  
(554,531)
 
1
Other includes assets and liabilities held for sale of £4,154m (2014: £15,574m) and £1,909m (2014: £13,115m) respectively, which are measured at fair value on a non-recurring basis. This decreased due to the sale of the Spanish business in Q115. It also includes investment property of £156m (2014: £207m).
 
 
The following table shows the Group's assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and product type:
 
 
Assets
  
Liabilities
 
Valuation technique using
  
Valuation technique using
 
Quoted
market prices
(Level 1)
Observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
  
Quoted
market prices
(Level 1)
Observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
 
£m
£m
£m
  
£m
£m
£m
As at 30.06.15
              
Interest rate derivatives
- 
241,954 
901 
  
- 
(233,622)
(938)
Foreign exchange derivatives
52 
56,635 
110 
  
(45)
(61,570)
(106)
Credit derivatives1 
- 
16,600 
1,743 
  
- 
(16,416)
(260)
Equity derivatives
4,855 
7,931 
794 
  
(4,851)
(13,054)
(1,670)
Commodity derivatives
2,255 
7,422 
59 
  
(2,309)
(7,816)
(306)
Government and government sponsored debt
61,373 
60,197 
867 
  
(9,957)
(13,361)
(12)
Corporate debt
215 
12,689 
3,071 
  
(22)
(3,189)
(29)
Certificates of deposit, commercial paper and other money market instruments
88 
1,101 
- 
  
(5)
(5,182)
(857)
Reverse repurchase and repurchase agreements
- 
4,571 
- 
  
- 
(4,785)
- 
Non-asset backed loans
- 
1,964 
16,396 
  
- 
- 
- 
Asset backed securities
- 
16,246 
1,202 
  
- 
(354)
- 
Commercial real estate loans
- 
- 
613 
  
- 
- 
- 
Issued debt
- 
- 
- 
  
- 
(36,715)
(726)
Equity cash products
32,025 
8,044 
207 
  
(14,326)
(1,277)
- 
Funds and fund linked products
- 
1,752 
562 
  
- 
(1,904)
(161)
Physical commodities
- 
861 
- 
  
- 
(28)
- 
Other2 
5 
967 
6,888 
  
(5)
(32)
(2,085)
Total
100,868 
438,934 
33,413 
  
(31,520)
(399,305)
(7,150)
               
As at 31.12.14
              
Interest rate derivatives
- 
308,706 
1,239 
  
(5)
(299,181)
(1,344)
Foreign exchange derivatives
4 
74,358 
108 
  
(3)
(79,188)
(138)
Credit derivatives1 
- 
21,541 
1,966 
  
- 
(21,958)
(409)
Equity derivatives
3,847 
9,750 
1,247 
  
(3,719)
(13,780)
(2,092)
Commodity derivatives
6,012 
10,946 
185 
  
(6,586)
(10,580)
(337)
Government and government sponsored debt
62,577 
48,296 
1,014 
  
(11,563)
(14,002)
(346)
Corporate debt
151 
22,036 
3,061 
  
- 
(3,572)
(13)
Certificates of deposit, commercial paper and other money market instruments
78 
921 
- 
  
(4)
(6,276)
(665)
Reverse repurchase and repurchase agreements
- 
5,236 
- 
  
- 
(5,423)
- 
Non-asset backed loans
1 
2,462 
17,744 
  
- 
- 
- 
Asset backed securities
30 
16,211 
1,631 
  
- 
(67)
- 
Commercial real estate loans
- 
- 
1,180 
  
- 
- 
- 
Issued debt
- 
- 
- 
  
(10)
(40,592)
(749)
Equity cash products
40,252 
7,823 
171 
  
(15,276)
(699)
- 
Funds and fund linked products
- 
2,644 
631 
  
- 
(2,060)
(210)
Physical commodities
4 
1,447 
- 
  
- 
(363)
- 
Other2 
70 
1,530 
17,663 
  
(2)
(22)
(13,297)
Total
113,026 
533,907 
47,840 
  
(37,168)
(497,763)
(19,600)
 
 
Assets and liabilities reclassified between Level 1 and Level 2
 
There were no transfers between Level 1 and 2 during the period (2014: nil). 
 
 
1
Credit derivatives also includes derivative exposure to monoline insurers.
2
Other includes non-current assets and liabilities held for sale, private equity investments, asset backed loans, US Lehman acquisition assets and investment property.
 
Level 3 movement analysis
 
 
The following table summarises the movements in the Level 3 balance during the year. The table shows gains and losses and includes amounts for all financial assets and liabilities transferred to and from Level 3 during the year. Transfers have been reflected as if they had taken place at the beginning of the year.
 
 
           
Total gains and losses in the period recognised in the income statement
  
Transfers
  
 
As at 01.01.15
Purchases
Sales
Issues
Settlements 
Trading income
Other income
Total gains or losses recognised in OCI
In
Out
As at 30.06.15
 
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Government and government sponsored debt
685  
27  
(28)
 -    
(2)
(12)
 -    
 -    
15  
(142)
543  
Corporate debt
3,026  
112  
(66)
 -    
 -    
53  
 -    
 -    
2  
(91)
3,036  
Asset backed securities
1,610  
1,305  
(1,274)
 -    
(549)
60  
 -    
 -    
56  
(24)
1,184  
Non-asset backed loans
273  
171  
(217)
 -    
(3)
(12)
 -    
 -    
 -    
 -    
212  
Funds and fund linked products
589  
 -    
(7)
 -    
(32)
(50)
 -    
 -    
20  
 -    
520  
Other
144  
71  
(15)
 -    
(9)
(2)
 -    
 -    
 -    
 -    
189  
Trading portfolio assets
6,327  
1,686  
(1,607)
 -   
(595)
37  
 -   
 -   
93  
(257)
5,684  
                       
Commercial real estate loans
1,179  
1,538  
(1,916)
 -    
(185)
(6)
 -    
 -    
 -    
 -    
610  
Non-asset backed loans
17,471  
 -    
 -    
 -    
(364)
(925)
 -    
 -    
 -    
 -    
16,182  
Asset backed loans
393  
470  
(444)
 -    
 -    
6  
 -    
 -    
 -    
(1)
424  
Private equity investments
701  
72  
(110)
 -    
(2)
2  
(22)
 -    
 -    
 -    
641  
Other
161  
2  
(4)
 -    
 -    
(10)
2  
 -    
 -    
 -    
151  
Financial assets designated at fair value
19,905  
2,082  
(2,474)
 -    
(551)
(933)
(20)
 -    
 -    
(1)
18,008  
                       
Asset backed securities
1  
 -    
 -    
 -    
 -    
 -    
 -    
 -    
 -    
(1)
 -    
Government and government sponsored debt
327  
195  
(203)
 -    
 -    
 -    
 -    
3  
 -    
 -    
322  
Other
985  
11  
(32)
 -    
 -    
 -    
499  
17  
19  
(17)
1,482  
Available for sale investments
1,313  
206  
(235)
 -    
 -    
 -    
499  
20  
19  
(18)
1,804  
                       
Other1 
207  
 -    
(65)
 -    
 -    
 -    
14  
 -    
 -    
 -    
156  
                       
Trading portfolio liabilities
(349)
 -    
 -    
 -    
 -    
 -    
 -    
 -    
(14)
348  
(15)
                       
Certificates of deposit,
commercial paper and other
money market instruments
(666)
 -    
 -    
(35)
 -    
 -    
(9)
 -    
(397)
249  
(858)
Issued debt
(748)
 -    
 -    
(1)
130  
22  
 -    
 -    
(163)
15  
(745)
Other
(402)
 -    
 -    
 -    
 -    
(7)
56  
 -    
 -    
10  
(343)
Financial liabilities
designated at fair value
(1,816)
 -    
 -    
(36)
130  
15  
47  
 -    
(560)
274  
(1,946)
                       
Interest rate derivatives
(105)
 -    
(4)
 -    
(46)
18  
 -    
 -    
(40)
138  
(39)
Credit derivatives
1,557  
276  
(12)
 -    
(6)
(321)
 -    
 -    
(11)
 -    
1,483  
Equity derivatives
(845)
138  
 -    
(352)
96  
101  
 -    
 -    
(30)
18  
(874)
Commodity derivatives
(152)
 -    
 -    
 -    
8  
16  
 -    
 -    
(241)
123  
(246)
Foreign exchange derivatives
(30)
 -    
(1)
(3)
25  
9  
 -    
 -    
(21)
24  
3  
Net derivative financial
instruments2 
425  
414  
(17)
(355)
77  
(177)
 -    
 -    
(343)
303  
327  
                       
Total
26,012  
4,388  
(4,398)
(391)
(939)
(1,058)
540  
20  
(805)
649  
24,018  
 
 
1
Other consists of investment property. Non-current assets held for sale of £4,154m (2014: £15,574m) and liabilities in a disposal group classified as held for sale of £1,909m (2014: £13,115m) are not included as these are measured at fair value on a non-recurring basis.
2
The derivative financial instruments are represented on a net basis. On a gross basis derivative financial assets as at 30 June 2015 totalled £3,607m (2014: £4,745m) and derivative financial liabilities totalled £3,280m (2014: £4,320m).
 
 
 
As at 01.01.14
Purchases
Sales
Issues
Settlements 
Total gains and losses in the period recognised in the income statement
Total gains or losses recognised in OCI
Transfers
As at 31.12.14
Trading income
Other income
In
Out
 
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Government and government sponsored debt
161  
96  
(198)
 -    
(46)
5  
 -    
 -    
676  
(9)
685  
Corporate debt
3,039  
177  
(332)
 -    
(370)
484  
 -    
 -    
39  
(11)
3,026  
Asset backed securities
2,111  
1,037  
(1,552)
 -    
(141)
178  
 -    
 -    
8  
(31)
1,610  
Non-asset backed loans
176  
250  
(30)
 -    
(49)
2  
 -    
 -    
13  
(89)
273  
Funds and fund linked products
494  
 -    
(92)
 -    
 -    
(17)
 -    
 -    
204  
 -    
589  
Other
440  
8  
(369)
 -    
54  
22  
 -    
 -    
 -    
(11)
144  
Trading portfolio assets
6,421  
1,568  
(2,573)
 -    
(552)
674  
 -    
 -    
940  
(151)
6,327  
                       
Commercial real estate loans
1,198  
2,919  
(2,678)
 -    
(334)
76  
(2)
 -    
 -    
 -    
1,179  
Non-asset backed loans
15,956  
2  
(177)
 -    
(81)
1,830  
9  
 -    
 -    
(68)
17,471  
Asset backed loans
375  
855  
(777)
 -    
(4)
19  
 -    
 -    
1  
(76)
393  
Private equity investments
1,168  
173  
(500)
 -    
(11)
4  
82  
 -    
 -    
(215)
701  
Other
73  
75  
(1)
 -    
(35)
9  
32  
 -    
2  
6  
161  
Financial assets designated at fair value
18,770  
4,024  
(4,133)
 -    
(465)
1,938  
121  
 -    
3  
(353)
19,905  
                       
Asset backed securities
1  
 -    
 -    
 -    
 -    
 -    
 -    
 -    
 -    
 -    
1  
Government and government sponsored debt
59  
281  
(12)
 -    
(1)
 -    
 -    
 -    
 -    
 -    
327  
Other
2,085  
37  
(78)
 -    
(1,694)
1  
586  
74  
4  
(30)
985  
Available for sale investments
2,145  
318  
(90)
 -    
(1,695)
1  
586  
74  
4  
(30)
1,313  
                       
Other1 
451  
47  
(238)
 -    
 -    
 -    
5  
 -    
 -    
(58)
207  
                       
Trading portfolio liabilities
 -    
 -    
 -    
 -    
 -    
(3)
 -    
 -    
(346)
 -    
(349)
                       
Certificates of deposit, commercial paper and other money market instruments
(409)
 -    
 -    
(254)
12  
2  
88  
 -    
(108)
3  
(666)
Issued debt
(1,164)
 -    
 -    
(16)
293  
88  
 -    
 -    
(48)
99  
(748)
Other
(67)
 -    
 -    
(341)
10  
6  
30  
 -    
(40)
 -    
(402)
Financial liabilities designated at fair value
(1,640)
 -    
 -    
(611)
315  
96  
118  
 -    
(196)
102  
(1,816)
                       
Interest rate derivatives
(15)
5  
45  
(5)
7  
(358)
 -    
 -    
103  
113  
(105)
Credit derivatives
1,420  
11  
 -    
 -    
42  
121  
 -    
 -    
(81)
44  
1,557  
Equity derivatives
(601)
86  
(12)
(305)
113  
(278)
 -    
 -    
(14)
166  
(845)
Commodity derivatives
(141)
 -    
 -    
(3)
(10)
4  
 -    
 -    
(11)
9  
(152)
Foreign exchange derivatives
31  
 -    
(12)
(4)
(71)
(6)
 -    
 -    
29  
3  
(30)
Net derivative financial instruments2 
694  
102  
21  
(317)
81  
(517)
 -    
 -    
26  
335  
425  
                       
Total
26,841  
6,059  
(7,013)
(928)
(2,316)
2,189  
830  
74  
431  
(155)
26,012  

1
Other consists of investment property. Non-current assets held for sale of £4,154m (2014: £15,574m) and liabilities in a disposal group classified as held for sale of £1,909m (2014: £13,115m) are not included as these are measured at fair value on a non-recurring basis.
2
The derivative financial instruments are represented on a net basis. On a gross basis derivative financial assets as at 30 June 2015 totalled £3,607m (2014: £4,745m) and derivative financial liabilities totalled £3,280m (2014: £4,320m).
 
Asset and liability moves between Level 2 and Level 3 are primarily due to i) an increase or decrease in observable market activity related to an input or ii) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant.
 
Net transfers into Level 3 totalled £(805)m (2014: £431m). This was primarily due to £(397)m of certificates of deposit, commercial paper and other money market instruments and £(163)m of issued debt which are designated at fair value driven by less observable inputs for securities with maturities beyond 5 years. A further £(241)m of commodity derivatives were transferred into Level 3 due to a decrease in observable pricing for crude oil.
 
Net transfers out of Level 3 totalled £649m (2014: £155m). This was primarily due to £348m of government and government sponsored debt held as trading portfolio liabilities and £249m of certificates of deposit, commercial paper and other money market instruments which are designated at fair value as a result of more observable valuation inputs.
 
Unrealised gains and losses on Level 3 financial assets and liabilities
 
The following table discloses the unrealised gains and losses recognised in the year arising on Level 3 financial assets and liabilities held at the period end.
 
Unrealised gains and losses recognised during the period on Level 3 financial assets and liabilities held at period end1
 
As at 30.06.15
  
As at 31.12.14
 
Income statement
Other compre- hensive income
Total
  
Income statement
Other compre- hensive income
Total
 
Trading income
Other income
  
Trading income
Other income
 
£m
£m
£m
£m
  
£m
£m
£m
£m
Trading portfolio assets
(55)
- 
- 
(55)
  
466 
- 
- 
466 
Financial assets designated at fair value
(763)
(70)
- 
(833)
  
1,849 
(9)
- 
1,840 
Available for sale assets
- 
470 
42 
512 
  
- 
572 
80 
652 
Trading portfolio liabilities
- 
- 
- 
- 
  
(3)
- 
- 
(3)
Financial liabilities designated at fair value
16 
50 
- 
66 
  
98 
118 
- 
216 
Net derivative financial instruments
(267)
- 
- 
(267)
  
(238)
- 
- 
(238)
Other
- 
(8)
- 
(8)
  
- 
5 
- 
5 
Total
(1,069)
 442 
 42 
(585)
  
2,172 
686 
80 
2,938 
 
 
Valuation techniques and sensitivity analysis
 
A sensitivity analysis is performed on products with significant unobservable inputs (Level 3) to generate a range of reasonably possible alternative valuations. The sensitivity methodologies applied take account of the nature of valuation techniques used, as well as the availability and reliability of observable proxy and historical data and the impact of using alternative models.
 
Current year valuation and sensitivity methodologies are consistent with those described within Note 18 Fair value of financial instruments in the 2014 Annual Report.
 
 
1
Amounts as at 30.06.15 represent six months unrealised gains and losses, whereas as at 31.12.14 represent 12 months.
 
 
Sensitivity analysis of valuations using unobservable inputs
        
 
Fair value
Favourable changes
Unfavourable changes
Product type
Total
assets
Total
liabilities
Income
statement
Equity
Income
statement
Equity
 
£m
£m
£m
£m
£m
£m
As at 30.06.15
            
Interest rate derivatives
901 
(938)
91 
- 
(101)
- 
Foreign exchange derivatives
110 
(106)
18 
- 
(18)
- 
Credit derivatives1 
1,743 
(260)
32 
- 
(76)
- 
Equity derivatives
794 
(1,670)
151 
1 
(151)
(1)
Commodity derivatives
59 
(306)
24 
- 
(24)
- 
Government and government sponsored debt
867 
(12)
- 
1 
(7)
- 
Corporate debt
3,071 
(29)
12 
- 
(10)
- 
Certificates of deposit, commercial paper and other money market instruments
- 
(857)
3 
- 
3 
- 
Non-asset backed loans
16,396 
- 
1,124 
- 
(748)
- 
Asset backed securities
1,202 
- 
24 
- 
(16)
- 
Commercial real estate loans
613 
- 
15 
- 
(9)
- 
Issued debt
- 
(726)
- 
- 
- 
- 
Equity cash products
207 
- 
- 
9 
- 
(9)
Funds and fund linked products
562 
(161)
2 
- 
(2)
- 
Physical commodities
- 
- 
- 
- 
- 
- 
Other2 
6,888 
(2,085)
151 
68 
(165)
(57)
Total
33,413 
(7,150)
1,647 
79 
(1,324)
(67)
             
As at 31.12.14
            
Interest rate derivatives
1,239 
(1,344)
70 
- 
(71)
- 
Foreign exchange derivatives
108 
(138)
36 
- 
(36)
- 
Credit derivatives1 
1,966 
(409)
81 
- 
(229)
- 
Equity derivatives
1,247 
(2,092)
220 
- 
(220)
- 
Commodity derivatives
185 
(337)
46 
- 
(46)
- 
Government and government sponsored debt
1,014 
(346)
- 
- 
(2)
- 
Corporate debt
3,061 
(13)
26 
(1)
(9)
(4)
Certificates of deposit, commercial paper and other money market instruments
- 
(665)
3 
- 
3 
- 
Non-asset backed loans
17,744 
- 
1,164 
- 
(820)
- 
Asset backed securities
1,631 
- 
46 
1 
(72)
(1)
Commercial real estate loans
1,180 
- 
20 
- 
(19)
- 
Issued debt
- 
(749)
- 
- 
- 
- 
Equity cash products
171 
- 
- 
11 
- 
(11)
Funds and fund linked products
631 
(210)
14 
- 
(14)
- 
Other2 
17,663 
(13,297)
180 
82 
(156)
(55)
Total
47,840 
(19,600)
1,906 
93 
(1,691)
(71)
 
The effect of stressing unobservable inputs to a range of reasonably possible alternatives alongside considering the impact of using alternative models would be to increase fair values by up to £1,647m (2014: £1,906m) or to decrease fair values by up to £1,324m (2014: £1,691m) with substantially all the potential effect impacting profit and loss rather than equity.
 
1
Credit derivatives includes derivative exposure to monoline insurers.
2
Other includes non-current assets and liabilities held for sale, which are measured at fair value on a non-recurring basis, private equity investments, asset backed loans, US Lehman acquisition assets and investment property.
 
Significant unobservable inputs
 
The valuation techniques and significant unobservable inputs for assets and liabilities recognised at fair value and classified as Level 3 are consistent with Note 18 Fair value of financial instruments in the 2014 Annual Report. The description of the significant unobservable inputs and the sensitivity of fair value measurement of the instruments categorised as Level 3 assets or liabilities to increases in significant unobservable inputs is also found in Note 18 Fair value of financial instruments of the 2014 Annual Report. Non-current assets held for sale of £4,154m (2014: £15,574m) and liabilities in a disposal group classified as held for sale of £1,909m (2014: £13,115m) are not included as these are measured at fair value on a non-recurring basis.
 
Fair value adjustments
 
Key balance sheet valuation adjustments that may be of interest from a financial statement user perspective are quantified below:
 
 
30.06.15
31.12.14
 
£m
£m
Bid-offer valuation adjustments
(389)
(396)
Other exit adjustments
(148)
(169)
Funding Fair Value Adjustments (FFVA)
(80)
(100)
Derivative credit valuation adjustments (CVA):
    
 - Monolines
(9)
(24)
 - Other derivative CVA
(343)
(394)
Derivative debit valuation adjustments (DVA)
239 
177 
 
- FFVA decreased by £20m to £80m as a result of an interest rate sell-off
 
- CVA decreased by £66m to £352m as a result of reduced exposures from interest rate moves on both Monolines and other derivative counterparties
 
- DVA increased by £62m to £239m as a result of a widening in Barclays' credit spread
 
 
Portfolio exemption
 
The Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of certain groups of financial assets and financial liabilities. Assets and liabilities are measured using the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the balance sheet date under current market conditions.
 
Unrecognised gains as a result of the use of valuation models using unobservable inputs
 
The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently recognised, is £105m (2014: £96m). There are additions of £21m (2014: nil) and £12m (2014: £41m) of amortisation and releases.
 
The reserve held for unrecognised gains is predominantly related to derivative financial instruments.
 
Third party credit enhancements
 
Structured and brokered certificates of deposit issued by Barclays Group are insured up to $250,000 per depositor, by the Federal Deposit Insurance Corporation (FDIC) in the United States of America. The FDIC is funded by premiums that Barclays and other banks pay for deposit insurance coverage. The carrying value of these issued certificates of deposit that are designated under the IAS 39 fair value option includes this third party credit enhancement. At 30 June 2015, the on-balance sheet value of these brokered certificates of deposit was £3,428m (2014: £3,650m).
 
 
Comparison of carrying amounts and fair values for assets and liabilities not held at fair value
 
Valuation methodologies employed in calculating the fair value of financial assets and liabilities measured at amortised cost are consistent with the 2014 Annual Report disclosure.
 
The following table summarises the fair value of financial assets and liabilities measured at amortised cost on the Group's balance sheet where carrying amount is not a reasonable approximation of fair value:
 
 
As at 30.06.15
  
As at 31.12.14
 
Carrying amount
Fair value
  
Carrying amount
Fair value
Financial assets
£m
£m
  
£m
£m
Loans and advances to banks
44,548 
44,111 
  
42,111 
42,088 
Loans and advances to customers:
          
- Home loans
164,341 
158,023 
  
166,974 
159,602 
- Credit cards, unsecured and other retail lending
59,480 
59,315 
  
63,583 
63,759 
- Finance lease receivables
5,118 
5,020 
  
5,439 
5,340 
- Corporate loans
201,780 
200,552 
  
191,771 
188,805 
Reverse repurchase agreements and other similar secured lending
93,138 
93,138 
  
131,753 
131,753 
           
Financial liabilities
          
Deposits from banks
(55,978)
(55,974)
  
(58,390)
(58,388)
Customer accounts:
          
- Current and demand accounts
(134,345)
(134,325)
  
(143,057)
(143,085)
- Savings accounts
(133,294)
(133,340)
  
(131,163)
(131,287)
- Other time deposits
(170,632)
(170,701)
  
(153,484)
(153,591)
Debt securities in issue
(75,525)
(76,609)
  
(86,099)
(87,522)
Repurchase agreements and other similar secured borrowing
(85,092)
(85,092)
  
(124,479)
(124,479)
Subordinated liabilities
(19,664)
(20,944)
  
(21,153)
(22,718)
 
10.         Subordinated liabilities
 
 
     
 
As at
As at
 
30.06.15
31.12.14
 
£m
£m
Opening balance as at 1 January
21,153 
21,695 
Issuances
144 
826 
Redemptions
(534)
(1,695)
Other
(1,099)
327 
Total dated and undated subordinated liabilities as at period end
19,664 
21,153 
 
Subordinated liabilities decreased 7% to £19,664m:
 
·     There were new issuances of £97m Floating Rate Subordinated Notes (ZAR 1,693m) and £47m 10.05% Fixed Rate Subordinated Notes (ZAR 807m)
 
·     Redemptions include £265m 6.140% Fixed Rate Guaranteed Perpetual Subordinated Notes, £116m 8.1% Subordinated Callable Notes (ZAR 2,000m) and £97m 4.75% Fixed Rate Subordinated Notes 2015 (US$ 150m)
 
·     Other movements of £1.1bn include a £443m reduction as GBP strengthened against USD, EUR and ZAR and a £402m reduction in accrued interest
 
11.         Provisions
 
As at
As at
 
30.06.15
31.12.14
 
£m
£m
UK Customer Redress
    
 - Payment Protection Insurance redress
1,268 
1,059 
 - Interest rate hedging product redress
108 
211 
 - Packaged Bank Accounts
250 
                                -
Other customer redress
398 
375 
Legal, competition and regulatory matters
484 
1,690 
Redundancy and restructuring
261 
291 
Undrawn contractually committed facilities and guarantees
79 
94 
Onerous contracts
164 
205 
Sundry provisions
275 
210 
Total
3,287 
4,135 
 
Payment Protection Insurance Redress
 
As at 30 June 2015 Barclays had recognised cumulative provisions totalling £6.0bn against the cost of Payment Protection Insurance (PPI) redress and associated processing costs with utilisation of £4.7bn leaving a residual provision of £1.3bn.
 
Through to 30 June 2015, 1.4m (31 December 2014: 1.3m) customer initiated claims1 had been received and processed. The volume of claims received during H115 decreased 14% compared to H214. This rate of decline however was slower than previously expected, due to steady levels of claims from Claims Management Companies in particular.
 
As a result of the lower than expected decline in claims additional provisions totalling £750m have been recognised during H115.
 
The provision is calculated using a number of key assumptions which continue to involve significant management judgement and modelling:
 
·     Customer initiated claim volumes  - claims received but not yet processed and an estimate of future claims initiated by customers where the volume is anticipated to decline over time
 
·     Proactive response rate - volume of claims in response to proactive mailing
 
·     Uphold rate - the percentage of claims that are upheld as being valid upon review
 
·     Average claim redress - the expected average payment to customers for upheld claims based on the type and age of the policy/policies
 
These assumptions remain subjective, in particular due to the uncertainty associated with future claims levels, which include complaints driven by CMC activity.
 
The current provision represents Barclays' revised best estimate of all future expected costs of PPI redress, however, it is possible the eventual outcome may differ from the current estimate. If this were to be material, the provision will be increased or decreased accordingly.  The current forecast indicates that the large majority of costs included in the provision will be incurred during 2015 and 2016.
 
The following table details by key assumption, actual data through to 30 June 2015, forecast assumptions used in the provision calculation and a sensitivity analysis illustrating the impact on the provision if the future expected assumptions prove too high or too low.
 
 
Assumption
 
Cumulative actual  
   to 30.06.15
 
Future Expected
Sensitivity Analysis        increase/decrease
in provision
  
Customer initiated claims received and processed1
1,420k
270k
50k = £91m
  
Proactive mailing
680k
133k
50k = £15m
  
Response rate to proactive mailing 
25%
23%
1% = £4m
  
Average uphold rate per claim2
84%
87%
1% = £6m
  
Average redress per valid claim3
£1,794
£1,781
£100 =  £30m
  
 
1
Total claims received to date, including those received via CMCs but excluding those for which no PPI policy exists and excluding responses to proactive mailing.  This sensitivity includes the associated costs of FOS referrals and operating costs.
2
Average uphold rate per claim excludes those for which no PPI policy exists.
3
Average redress stated on a per policy basis.
 
A  2014 decision of the UK Supreme Court (Plevin) held that, judged on its own facts, non-disclosure of the amount of commissions payable in connection with the sale of single premium PPI to a customer could create an unfair relationship under the provisions of the UK Consumer Credit Act. Barclays is in an active dialogue with the FCA and the FOS to determine any possible wider impact of such decision on its historical sales of PPI.  Due to this uncertainty it is not currently practicable to provide an estimate of the financial impact the Plevin decision could have and there can be no assurance that the outcome of this matter will not be material.
 
Packaged bank account redress
 
As at 30 June 2015 Barclays holds a provision of £250m for customer redress and associated operational costs to be incurred in response to complaints received relating to Packaged Bank Accounts.
 
The provision has been calculated using a number of assumptions which involve significant management judgment; the most significant assumption being volume of future complaints, together with average complaint uphold rate and average redress per claim.
 
12.         Retirement benefits
 
As at 30 June 2015, the Group's IAS19 pension deficit across all schemes was £1.1bn (2014: £1.5bn). The UK Retirement Fund (UKRF), which is the Group's main scheme, had a deficit of £0.7bn (2014: £1.1bn).
 
The movement for the UKRF is due to an increase in asset values, the Bank paying £150m of deficit contributions during 2015 and a decrease in the liabilities. The decrease in the liabilities can be linked to an increase in the discount rate to 3.79% pa (2014: 3.67% pa) partially offset by an increase in long term expected inflation to 3.25% pa (2014: 3.05% pa). In addition, the assumptions have been updated for current market conditions, and in Q115 the valuation of a component of the defined benefit liability was revised to use the long term Consumer Price Index rather than the Retail Price Index, consistent with statutory provisions, resulting in a £429m (H114: £nil) gain.    
 
The UKRF discount rate assumption at 30 June 2015 is set using a variant of the Towers Watson RATE:Link model where AA spot yields are assumed to remain flat after year 30 and the corporate bond universe includes bonds rated AA by at least one of the four largest rating agencies.  This compares to the RATE:Link model previously used which incorporated the slope of the government yield curve in extrapolating corporate spot yields beyond year 30, and only included bonds rated AA by either of the two largest rating agencies.  The impact of this change on the UKRF Defined Benefit Obligation at 30 June 2015 was a £0.4bn decrease with no impact on current year profit.  It is not possible to estimate the effects on profits after 2015.
 
The latest triennial actuarial valuation of the UKRF was carried out with an effective date of 30 September 2013. This was completed in 2014 and showed a deficit of £3.6bn and a funding level of 87.4%. The Bank and the Trustee agreed a scheme-specific funding target, statement of funding principles, a schedule of contributions and a recovery plan to eliminate the deficit of the UKRF. The main differences between the funding and IAS 19 assumptions are a more prudent longevity assumption for funding and a different approach to setting the discount rate.
 
The recovery plan to eliminate the deficit will result in the Bank paying deficit contributions to the Fund until 2021. Deficit contributions of £300m are payable in 2015, and also in 2016. Further deficit contributions of £740m pa are payable during 2017 to 2021. Up to £500m of the 2021 deficit contributions are payable in 2017 depending on the deficit level at that time. These deficit contributions are in addition to the regular contributions to meet the Group's share of the cost of benefits accruing over each year.
 
In non-valuation years, the Scheme Actuary prepares an actuarial annual update of the funding position. The latest annual update was carried out as at 30 September 2014 and showed a deficit of £4.6bn and a funding level of 85.4%. The increase in funding deficit over the year to 30 September 2014 can be mainly attributed to the fall in real gilt yields over the year.
 
13.         Called up share capital
 
Called up share capital comprises 16,773m (2014: 16,498m) ordinary shares of 25p each. The increase was largely due to the issuance of shares under employee share schemes and the Barclays PLC Scrip Dividend Programme.
 
14.         Other equity instruments
 
Other Equity Instruments of £4,325m (2014: £4,322m) include Additional Tier 1 (AT1) securities issued by Barclays PLC during 2013 and 2014. 
 
The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under CRD IV.
 
15.         Other reserves
 
 
 
As at
As at
 
30.06.15
31.12.14
 
£m
£m
Currency translation reserve
(1,045)
(582)
Available for sale reserve
267 
562 
Cash flow hedging reserve
1,183 
1,817 
Other
929 
927 
Total
1,334 
2,724 
 
Currency translation reserve
 
As at 30 June 2015 there was a debit balance of £1,045m (2014: £582m debit) in the currency translation reserve. The increase of £463m debit (2014: £560m credit) principally reflected the depreciation of ZAR, EUR and USD against GBP. The currency translation reserve associated with non-controlling interests increased by £127m debit (2014: £74m debit) due to the depreciation of ZAR against GBP.
 
During the period a £87m net loss (2014: £91m net gain) from recycling of the currency translation reserve was recognised in the Income Statement. This principally related to the disposal of the Spanish business.
 
Available for sale reserve
 
As at 30 June 2015 there was a balance of £267m (2014: £562m) in the available for sale reserve. The decrease of £295m (2014: £414m increase) was largely driven by £1,014m losses from changes in fair value on Government Bonds offset by £853m due to fair value hedging, £312m of net gains transferred to net profit and a tax credit of £96m.
 
Cash flow hedging reserve
 
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income statement when the hedged transactions affect profit or loss.
 
As at 30 June 2015 there was a balance of £1,183m (2014: £1,817m) in the cash flow hedging reserve. The decrease of £634m (2014: £1,544m increase) principally reflected a £697m decrease in the fair value of interest rate swaps held for hedging purposes as interest rate forward curves increased, £98m gains transferred to net profit, partially offset by a tax credit of £159m.
 
Treasury shares
 
During the period £568m (2014: £909m) net purchases of treasury shares were made, principally reflecting the increase in shares held for the purposes of employee share schemes, and £570m (2014: £866m) was transferred to retained earnings reflecting the vesting of deferred share based payments.
 
16.         Contingent liabilities and commitments
 
 
As at
As at
 
30.06.15
31.12.14
 
£m
£m
Guarantees and letters of credit pledged as collateral security
 15,131 
 14,547 
Performance guarantees, acceptances and endorsements
 5,215 
 6,777 
Contingent liabilities
 20,346 
 21,324 
Documentary credits and other short-term trade related transactions
 1,163 
 1,091 
Forward starting reverse repurchase agreements
 15,459 
 13,856 
Standby facilities, credit lines and other commitments
 269,404 
 276,315 
 
Further details on contingent liabilities relating to legal, competition and regulatory matters can be found in Note 17.
 
17.         Legal, competition and regulatory matters
 
Barclays PLC (BPLC), Barclays Bank PLC (BBPLC) and the Group face legal, competition and regulatory challenges, many of which are beyond our control. The extent of the impact on BPLC, BBPLC and the Group of these matters cannot always be predicted but may materially impact our operations, financial results, condition and prospects. Matters arising from a set of similar circumstances can give rise to either a contingent liability or a provision, or both, depending on the relevant facts and circumstances. The Group has not disclosed an estimate of the potential financial effect on the Group of contingent liabilities where it is not currently practicable to do so.
 
Investigations into certain agreements
 
The Financial Conduct Authority (FCA) has alleged that BPLC and BBPLC breached their disclosure obligations in connection with two advisory services agreements entered into by BBPLC. The FCA has imposed a £50m fine. BPLC and BBPLC are contesting the findings. The United Kingdom (UK) Serious Fraud Office (SFO) is also investigating these agreements. The US Department of Justice (DOJ) and US Securities and Exchange Commission (SEC) are investigating whether the Group's relationships with third parties who help it to win or retain business are compliant with the US Foreign Corrupt Practices Act.
 
Background Information
 
The FCA has investigated certain agreements, including two advisory services agreements entered into by BBPLC with Qatar Holding LLC (Qatar Holding) in June and October 2008 respectively, and whether these may have related to BPLC's capital raisings in June and November 2008.
 
The FCA issued warning notices (Warning Notices) against BPLC and BBPLC in September 2013.
 
The existence of the advisory services agreement entered into in June 2008 was disclosed but the entry into the advisory services agreement in October 2008 and the fees payable under both agreements, which amount to a total of £322m payable over a period of five years, were not disclosed in the announcements or public documents relating to the capital raisings in June and November 2008. While the Warning Notices consider that BPLC and BBPLC believed at the time that there should be at least some unspecified and undetermined value to be derived from the agreements, they state that the primary purpose of the agreements was not to obtain advisory services but to make additional payments, which would not be disclosed, for the Qatari participation in the capital raisings.
 
The Warning Notices conclude that BPLC and BBPLC were in breach of certain disclosure-related listing rules and BPLC was also in breach of Listing Principle 3 (the requirement to act with integrity towards holders and potential holders of the Company's shares). In this regard, the FCA considers that BPLC and BBPLC acted recklessly. The financial penalty in the Warning Notices against the Group is £50m. BPLC and BBPLC continue to contest the findings.
 
Other Investigations and Litigation
 
The FCA has agreed that the FCA enforcement process be temporarily stayed pending progress in the SFO's investigation into the agreements referred to above, including the advisory services agreements, in respect of which the Group has received and has continued to respond to requests for further information. The DOJ and SEC are investigating these same agreements and are also undertaking an investigation into whether the Group's relationships with third parties who assist BPLC to win or retain business are compliant with the US Foreign Corrupt Practices Act. Certain regulators in other jurisdictions have also been briefed on the investigations into certain of the Group's relationships with third parties. It is possible that civil litigation relating to certain of these matters may be brought in the future against BPLC and/or its affiliates.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
Alternative Trading Systems and High-Frequency Trading
 
The SEC, the New York State Attorney General (NYAG), the FCA and regulators in certain other jurisdictions have been investigating a range of issues associated with alternative trading systems (ATSs), including dark pools, and the activities of high-frequency traders. Barclays Capital Inc. (BCI) has been providing information to the relevant regulatory authorities in response to their enquiries. Various parties, including the NYAG, have filed complaints against BPLC and BCI and certain of the Group's current and former officers in connection with ATS related activities. BPLC and BCI continue to defend against these actions.
 
Background Information
 
Civil complaints have been filed in the New York Federal Court on behalf of a putative class of plaintiffs against BPLC and BCI and others generally alleging that the defendants violated the federal securities laws by participating in a scheme in which high-frequency trading firms were given informational and other advantages so that they could manipulate the US securities market to the plaintiffs' detriment. These complaints have been consolidated and BPLC has filed a motion to dismiss this action.
 
In June 2014, the NYAG filed a complaint (NYAG Complaint) against BPLC and BCI in the Supreme Court of the State of New York (NY Supreme Court) alleging, amongst other things, that BPLC and BCI engaged in fraud and deceptive practices in connection with LX Liquidity Cross, the Group's SEC-registered ATS. BPLC and BCI filed a motion to dismiss the Complaint in July 2014.
 
BPLC and BCI have also been named in a class action by an institutional investor client under California law based on allegations similar to those in the Complaint. This California class action has been consolidated with the class action filed in the New York Federal Court described above.
 
Also, following the filing of the NYAG Complaint, BPLC and BCI were named in a shareholder securities class action along with its current and certain of its former CEOs and CFOs and an employee in Equities Electronic Trading on the basis that investors suffered damages when their investments in Barclays American Depository Receipts declined in value as a result of the allegations in the NYAG Complaint. BPLC and BCI have filed a motion to dismiss the complaint, which the court granted in part and denied in part.
 
It is possible that additional complaints relating to these or similar matters may be brought in the future against BPLC and/or its affiliates.
 
Recent Developments
 
In February 2015, the NYAG filed an amended complaint and the NY Supreme Court subsequently granted in part and denied in part BPLC and BCI's motion to dismiss the NYAG Complaint. Proceedings in this matter are continuing.
 
Claimed Amounts/Financial Impact
 
The complaints seek unspecified monetary damages and injunctive relief. It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect that these matters might have upon operating results, cash flows or the Group's financial position in any particular period.
 
FERC
 
The US Federal Energy Regulatory Commission (FERC) has filed a civil action against BBPLC and certain of its former traders in the US District Court in California seeking to collect on an order assessing a $435m civil penalty and the disgorgement of $34.9m of profits, plus interest, in connection with allegations that BBPLC manipulated the electricity markets in and around California. The US Attorney's Office in the SDNY has informed BBPLC that it is looking into the same conduct at issue in the FERC matter and a civil class action complaint was filed in the US District Court for the SDNY against BBPLC asserting antitrust allegations that mirror those raised in the civil suit filed by FERC.
 
Background Information
 
In October 2012, FERC issued an Order to Show Cause and Notice of Proposed Penalties (Order and Notice) against BBPLC and four of its former traders in relation to their power trading in the western US. In the Order and Notice, FERC asserted that BBPLC and its former traders violated FERC's Anti-Manipulation Rule by manipulating the electricity markets in and around California from November 2006 to December 2008, and proposed civil penalties and profit disgorgement to be paid by BBPLC.
 
In July 2013, FERC issued an Order Assessing Civil Penalties in which it assessed a $435m civil penalty against BBPLC and ordered BBPLC to disgorge an additional $34.9m of profits plus interest (both of which are consistent with the amounts proposed in the Order and Notice).
 
In October 2013, FERC filed a civil action against BBPLC and its former traders in the US District Court in California seeking to collect the penalty and disgorgement amount. FERC's complaint in the civil action reiterates the allegations previously made by FERC in its October 2012 Order and Notice and its July 2013 Order Assessing Civil Penalties.
 
In September 2013, BBPLC was contacted by the criminal division of the US Attorney's Office in SDNY and advised that such office is looking at the same conduct at issue in the FERC matter.
 
In December 2013, BBPLC and its former traders filed a motion to dismiss the action for improper venue or, in the alternative, to transfer it to the SDNY, and a motion to dismiss the complaint for failure to state a claim.
 
Recent Developments
 
In May 2015, the US District Court in California denied a motion filed by BBPLC and the former traders to dismiss the action for improper venue or, in the alternative, to transfer it to the SDNY, and a motion to dismiss the complaint for failure to state a claim.
 
In June 2015, a civil class action complaint was filed in the US District Court for the SDNY against BBPLC by Merced Irrigation District, a California utility company, asserting antitrust allegations in connection with BBPLC's purported manipulation of the electricity markets in and around California. The allegations mirror those raised in the civil suit filed by FERC against BBPLC currently pending in the US District Court in California.
 
Claimed Amounts/Financial Impact
 
FERC has made claims against BBPLC and certain of its former traders totalling $469.9m, plus interest, for civil penalties and profit disgorgement. This amount does not necessarily reflect the BBPLC's potential financial exposure if a ruling were to be made against it. The civil class action complaint refers to damages of $139.3m.
 
Investigations into LIBOR, other Benchmarks, ISDAFIX, Foreign Exchange Rates and Precious Metals
 
Regulators and law enforcement agencies from a number of governments have been conducting investigations relating to BBPLC's involvement in manipulating Foreign Exchange rates and financial benchmarks. BBPLC, BPLC and BCI have reached settlements with the relevant law enforcement agency or regulator in certain of the investigations, but others, including those set out in more detail below, remain pending.
 
Background Information
 
The FCA, the US Commodity Futures Trading Commission (CFTC), the SEC, the DOJ Fraud Section (DOJ-FS) and Antitrust Division (DOJ-AD), the European Commission (Commission), the SFO, the Monetary Authority of Singapore, the Japan Financial Services Agency, the Administrative Council for Economic Defence in Brazil, the South African Competition Commission, the prosecutors' office in Trani, Italy and various US state attorneys general are amongst various authorities that opened investigations in connection with efforts to manipulate Foreign Exchange rates and into submissions made by BBPLC and other financial institutions to the bodies that set or compile various financial benchmarks, such as LIBOR and EURIBOR.
 
In June 2012, BBPLC announced that it had reached settlements with the Financial Services Authority (FSA) (as predecessor to the FCA), the CFTC and the DOJ-FS in relation to their investigations concerning certain benchmark interest rate submissions, and BBPLC agreed to pay total penalties of £290m, which were reflected in operating expenses for 2012. The settlements were made by entry into a Settlement Agreement with the FSA, a Settlement Order with the CFTC (CFTC LIBOR Order) and a Non-Prosecution Agreement (NPA) with the DOJ-FS. In addition, BBPLC was granted conditional leniency from the DOJ-AD in connection with potential US antitrust law violations with respect to financial instruments that reference EURIBOR. Summaries of the NPA and the CFTC LIBOR Order are set out below. The full text of the CFTC LIBOR Order and the NPA are publicly available on the websites of the CFTC and the DOJ, respectively. The terms of the Settlement Agreement with the FSA are confidential, but the Final Notice of the FSA in relation to LIBOR is available on the FCA's website.
 
CFTC LIBOR Order
 
In addition to a $200m civil monetary penalty, the CFTC LIBOR Order requires BBPLC to cease and desist from further violations of specified provisions of the US Commodity Exchange Act (CEA) and take specified steps to ensure the integrity and reliability of its benchmark interest rate submissions, including LIBOR and EURIBOR, and improve related internal controls.
 
Investigations by the US State Attorneys General
 
Following the settlements announced in June 2012, 31 US State Attorneys General commenced their own investigations into LIBOR, EURIBOR and the Tokyo Interbank Offered Rate. The NYAG, on behalf of this coalition of Attorneys General, issued a subpoena in July 2012 to BBPLC (and subpoenas to a number of other banks) to produce wide-ranging information and has since issued additional information requests to BBPLC for both documents and transactional data. BBPLC is responding to these requests on a rolling basis.
 
Investigation by the SFO
 
In addition, following the settlements announced in June 2012, the SFO announced in July 2012 that it had decided to investigate the LIBOR matter, in respect of which BBPLC has received and continues to respond to requests for information.
 
Investigations by the European Commission
 
The Commission has also been conducting investigations into the manipulation of, amongst other things, EURIBOR. On 4 December 2013, the Commission announced that it had reached a settlement with the Group and a number of other banks in relation to anti-competitive conduct concerning EURIBOR. The Group had voluntarily reported the EURIBOR conduct to the Commission and cooperated fully with the Commission's investigation. In recognition of this cooperation, the Group was granted full immunity from the financial penalties that would otherwise have applied.
 
DOJ Non-Prosecution Agreement
 
As part of the NPA, BBPLC agreed to pay a $160m penalty. In addition, the DOJ agreed not to prosecute BBPLC for any crimes (except for criminal tax violations, as to which the DOJ cannot and did not make any agreement) related to BBPLC's submissions of benchmark interest rates, including LIBOR and EURIBOR, contingent upon BBPLC's satisfaction of specified obligations under the NPA.
 
In June 2014, BBPLC and DOJ-FS entered into a letter agreement which gave DOJ-FS until 27 June 2015 to make a determination under the NPA solely as to whether any of BBPLC's trading activities in the Foreign Exchange market during the two-year period from 26 June 2012 constituted the commission of a 'United States crime'.
 
Recent Developments
 
The Foreign Exchange settlements described below under 'Foreign Exchange Trading Investigations' include a $60m penalty imposed by the DOJ as a consequence of certain practices that continued after entry into the NPA; however, the DOJ exercised its discretion not to declare a breach of the NPA. The NPA and the letter agreement have now expired.
 
Foreign Exchange Trading Investigations
 
Various regulatory and enforcement authorities, including the FCA, the Commission, the CFTC, the DOJ-FS, the DOJ-AD, the SEC and the New York State Department of Financial Services (NYDFS) have been investigating a range of issues associated with Foreign Exchange sales and trading, including electronic trading. Certain of these investigations involve multiple market participants in various countries.
 
Recent Developments
 
On 20 May 2015, the Group announced that it had reached settlements with the CFTC, the NYDFS, the DOJ, the Board of Governors of the Federal Reserve System (Federal Reserve) and the FCA (together, the Resolving Authorities) in relation to investigations into certain sales and trading practices in the Foreign Exchange market, that it had agreed to pay total penalties of approximately $2.38bn, including a $60m penalty imposed by the DOJ as a consequence of certain practices continuing after entry into the NPA, and that BPLC had agreed to plead guilty to a violation of US anti-trust law. 
 
Under the plea agreement with the DOJ, BPLC agreed to (i) pay a criminal fine of $650m and (ii) a term of probation of three years from the date of the final judgment in respect of the plea agreement. During the term of probation, BPLC must, amongst other things:
 
·     Commit no crime whatsoever in violation of the federal laws of the United States;
 
·     Notify the probation officer appointed by the court upon learning of the commencement of any federal criminal investigation in which it is a target, or federal criminal prosecution against it;
 
·     Implement and continue to implement a compliance program designed to prevent and detect the conduct that gave rise to the plea agreement;
 
·     Strengthen its compliance and internal controls as required by the CFTC, the FCA and any other regulatory or enforcement agencies that have addressed the conduct set forth in the plea agreement; and
 
·     Bring to the DOJ's attention (i) all credible information regarding criminal violations by BPLC or any of its employees that relates to US anti-trust laws or fraud laws, including securities or commodities markets fraud, as to which
       BPLC's Board of Directors, management or legal and compliance personnel is aware (ii) all criminal or regulatory investigations, administrative proceedings or civil actions brought by any governmental authority in the US by or
       against BPLC or its employees that alleges violations of US anti-trust or fraud laws, or including securities or commodities markets fraud.
 
Pursuant to the settlement with the CFTC, BBPLC consented to the entry of an order requiring it to (i) cease and desist from violating provisions of the US Commodity Exchange Act, (ii) pay a civil monetary penalty of $400m and (iii) undertake certain remediation efforts to the extent not already undertaken, including: 
 
·     Implementing and improving its internal controls and procedures in a manner reasonably designed to ensure the integrity of its participation in the fixing of any Foreign Exchange benchmark rate, including measures to identify
       and address internal or external conflicts of interest; and
 
·     Implementing additional remediation improvements will include internal controls and procedures relating to, amongst other things: (i) detection and deterrence of improper communications concerning Foreign Exchange benchmark
       rates and trading or other conduct potentially intended to manipulate Foreign Exchange benchmark rates, (ii) routine and on-going training of all traders, supervisors and others who are involved in the fixing of any Foreign
       Exchange benchmark rate and (iii) its system for reporting, handling and investigating any suspected misconduct or questionable, unusual or unlawful activity relating to the fixing of any Foreign Exchange benchmark rate.
 
Pursuant to its settlement with the Federal Reserve, BBPLC and BBPLC's New York branch consented to an order imposing a civil monetary penalty of $342m and ordering BBPLC and BBPLC's New York branch to submit in writing to the Federal Reserve Bank of New York for its approval (i) an enhanced internal controls and compliance program to comply with applicable US laws and regulations with respect to certain Foreign Exchange activities and certain activities in certain other wholesale markets for commodities and interest rate products, (ii) a plan to improve its compliance risk management program regarding BBPLC's and BBPLC's New York branch's compliance with applicable US laws and regulations with respect to certain Foreign Exchange activities and certain activities in certain other wholesale markets for commodities and interest rate products and (iii) enhanced internal audit program regarding BBPLC's and BBPLC's New York branch's compliance with applicable US laws and regulations with respect to certain Foreign Exchange activities and certain activities in certain other wholesale markets for commodities and interest rate products. Under the Federal Reserve order, BBPLC and its institution-affiliated parties must not in the future directly or indirectly retain any individual as an officer, employee, agent, consultant or contractor of BBPLC or of any subsidiary of BBPLC who, based on the investigative record compiled by US authorities, has done all of the following: (i) participated in the misconduct underlying the order, (ii) been subject to formal disciplinary action as a result of BBPLC's and BBPLC's New York branch's internal disciplinary review or performance review in connection with the conduct described in the order, and (iii) either separated from BBPLC or any subsidiary thereof or had his or her employment terminated in connection with the conduct described in the order.
 
Pursuant to the settlement with the NYDFS, BBPLC and BBPLC's New York branch consented to an order imposing a civil monetary penalty of $485m and requiring BBPLC and BBPLC's New York branch to take all steps necessary to terminate four identified employees. BBPLC and BBPLC's New York branch must also continue to engage the independent monitor previously selected by the NYDFS to conduct, consistent with applicable law, a comprehensive review of compliance programs, policies, and procedures, with respect to the business activities discussed within the order, in place at BBPLC that pertain to or affect activities conducted by or through BBPLC's New York branch. The monitor will submit to the NYDFS and BBPLC's Board of Directors a preliminary written report of findings, including proposed corrective measures and thereafter BBPLC and BBPLC's New York branch must submit to the NYDFS (i) a written plan designed to improve and enhance current compliance programs that pertain to or affect activities conducted by or through BBPLC's New York branch, incorporating any relevant corrective measures identified in the monitor's report and (ii) a written plan to improve and enhance management oversight of compliance programs, policies, and procedures now in place at BBPLC that pertain to or affect activities conducted by or through BBPLC's New York branch.
 
The FCA issued a Final Notice and imposed a financial penalty of £284m on BBPLC for failing to control business practices in its Foreign Exchange business in London (including G10 and emerging market spot Foreign Exchange trading, Foreign Exchange options and Foreign Exchange sales). As announced in November 2014, the FCA has required an industry-wide remediation programme which Barclays remains committed to completing.
 
The full text of the DOJ plea agreement, the CFTC, NYDFS and Federal Reserve orders, and the FCA Final Notice referred to above are publicly available on the Resolving Authorities' respective websites.
 
The settlements reached on 20 May 2015 did not encompass ongoing investigations of electronic trading in the Foreign Exchange market. In addition, certain authorities continue to investigate sales and trading practices of various sales and trading personnel, including Foreign Exchange personnel, among multiple market participants, including BBPLC, in various countries. The Group is continuing to review these and certain other practices relating to Foreign Exchange and continues to cooperate with the relevant authorities.
 
ISDAFIX Investigation
 
Regulators and law enforcement agencies, including the CFTC, have conducted separate investigations into historical practices with respect to ISDAFIX, amongst other benchmarks.
 
On 20 May 2015, the CFTC entered into a settlement order with BPLC, BBPLC and BCI pursuant to which BPLC, BBPLC and BCI  agreed to pay a civil monetary penalty of $115m in connection with the CFTC's industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark. In addition, the CFTC order requires BPLC, BBPLC and BCI to cease and desist from violating provisions of the US Commodity Exchange Act, fully cooperate with the CFTC in related investigations and litigation and undertake certain remediation efforts to the extent not already undertaken, including, amongst other things: 
 
·     Continuing to implement and improve its internal controls and procedures in a manner reasonably designed to ensure the integrity of the fixing of any interest-rate swap benchmark; and
 
·     Implementing additional remediation improvements, including reasonable internal controls and procedures relating to, amongst other things: (i) the detection and deterrence of trading or other conduct potentially intended to
       manipulate directly or indirectly swap rates, including benchmarks based on interest-rate swaps, (ii) routine and on-going training of all swaps and options desk personnel relating to the trading of any product that references a
       benchmark based on interest-rate swaps and (iii) a system for reporting, handling and investigating any suspected misconduct or questionable, unusual or unlawful activity relating to the fixing of any benchmark based on
       interest-rate swaps.
 
The full text of the CFTC order relating to ISDAFIX is publicly available on the CFTC website.
 
Certain other regulatory and enforcement authorities have requested information regarding the setting of, and trading intended to influence, the USD ISDAFIX benchmark.
 
Precious Metals Investigation
 
BBPLC has been providing information to the DOJ and other authorities in connection with investigations into precious metals and precious metals-based financial instruments.
 
For a discussion of litigation arising in connection with these investigations see 'LIBOR and other Benchmarks Civil Actions', 'Civil Actions in Respect of ISDAFIX', 'Civil Actions in Respect of Foreign Exchange Trading' and 'Civil Actions in Respect of the Gold Fix' below.
 
Claimed Amounts/Financial Impact
 
The fines in connection with the May 2015 settlements with the Resolving Authorities are covered by the Group's existing provisions of £2.05bn. It is not currently practicable to provide an estimate of the financial impact of certain of the other matters in this section, or what effect that these matters might have upon the Group's operating results, cash flows or financial position in any particular period.
 
LIBOR and other Benchmark Civil Actions
 
Following the settlements of the investigations referred to above in 'Investigations into LIBOR, other Benchmarks, ISDAFIX, Foreign Exchange Rates and Precious Metals', a number of individuals and corporates in a range of jurisdictions have threatened or brought civil actions against Group in relation to LIBOR and/or other benchmarks.
 
Background Information
 
A number of individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group and other banks in relation to manipulation of LIBOR and/or other benchmark rates. While several of such cases have been dismissed and one has settled subject to final approval from the court, others remain pending and their ultimate impact is unclear.
 
USD LIBOR Cases in MDL Court
 
The majority of the USD LIBOR cases, which have been filed in various US jurisdictions, have been consolidated for pre-trial purposes before a single judge in the SDNY (MDL Court).
 
The complaints are substantially similar and allege, amongst other things, that BBPLC and the other banks individually and collectively violated provisions of the US Sherman Antitrust Act, the CEA, the US Racketeer Influenced and Corrupt Organizations Act (RICO) and various state laws by manipulating USD LIBOR rates.
 
The lawsuits seek unspecified damages with the exception of five lawsuits, in which the plaintiffs are seeking a combined total in excess of $1.25bn in actual damages against all defendants, including BBPLC, plus punitive damages. Some of the lawsuits also seek trebling of damages under the US Sherman Antitrust Act and RICO.
 
The proposed class actions purport to be brought on behalf of (amongst others) plaintiffs that (i) engaged in USD LIBOR-linked over-the-counter transactions (OTC Class); (ii) purchased USD LIBOR-linked financial instruments on an exchange (Exchange-Based Class); (iii) purchased USD LIBOR-linked debt securities (Debt Securities Class); (iv) purchased adjustable-rate mortgages linked to USD LIBOR (Homeowner Class); or (v) issued loans linked to USD LIBOR (Lender Class).
 
In August 2012, the MDL Court stayed all newly filed proposed class actions and individual actions (Stayed Actions), so that the MDL Court could address the motions pending in three lead proposed class actions (Lead Class Actions) and three lead individual actions (Lead Individual Actions).
 
In March 2013, the MDL Court issued a decision dismissing the majority of claims against BBPLC and other panel bank defendants in the Lead Class Actions and Lead Individual Actions.
 
Following the decision, the plaintiffs in the Lead Class Actions sought permission to either file an amended complaint or appeal an aspect of the March 2013 decision. In August 2013 and June 2014, the MDL Court denied the majority of the motions presented in the Lead Class Actions. As a result, the:
 
·     Debt Securities Class has been dismissed entirely;
·     The claims of the Exchange-Based Class have been limited to claims under the CEA; and
·     The claims of the OTC Class have been limited to claims for unjust enrichment and breach of the implied covenant of good faith and fair dealing.
 
Subsequent to the MDL Court's March 2013 decision, the plaintiffs in the Lead Individual Actions filed a new action in California state court (since moved to the MDL Court) based on the same allegations as those initially alleged in the proposed class action cases discussed above. The Debt Securities Class attempted to appeal the dismissal of their action to the US Court of Appeals for the Second Circuit (Second Circuit), but the Second Circuit dismissed the appeal as untimely on the grounds that the MDL Court had not reached a decision resolving all of the claims in the consolidated actions. In January 2015, the US Supreme Court reversed the Second Circuit's decision, ruling that the Second Circuit must hear the Debt Securities Class' appeal. The OTC Class and the Exchange-Based Class have received permission to join this appeal. Certain other proposed class actions that had previously been stayed by the MDL Court have also received permission to join the appeal as to the dismissal of their antitrust claims.
 
In December 2014, the MDL Court granted preliminary approval for the settlement of the remaining Exchange-Based Class claims for $19.98m and requested that the plaintiffs present a plan for allocation of the settlement proceeds. In January 2015, plaintiffs filed a motion for an order approving their proposed process of allocation and class notice for the settlement, and that motion is pending before the MDL Court.
 
Additionally, the MDL Court has begun to address the claims in the Stayed Actions, many of which, including state law fraud and tortious interference claims, were not asserted in the Lead Class Actions. As a result, in October 2014, the direct action plaintiffs (those who have opted out of the class actions) filed their amended complaints and in November 2014, the defendants filed their motions to dismiss. In November 2014, the plaintiffs in the Lender Class and Homeowner Class actions filed their amended complaints. In January 2015, the defendants filed their motions to dismiss.
 
Until there are further decisions, the ultimate impact of the MDL Court's decisions will be unclear, although it is possible that the decisions will be interpreted by courts to affect other litigation, including the actions described below, some of which concern different benchmark interest rates.
 
Additional USD LIBOR Case in the SDNY
 
An additional individual action was commenced in February 2013 in the SDNY against BBPLC and other panel bank defendants. The plaintiff alleged that the panel bank defendants conspired to increase USD LIBOR, which caused the value of bonds pledged as collateral for a loan to decrease, ultimately resulting in the sale of the bonds at a low point in the market. This action is not assigned to the MDL Court; it is proceeding on a different schedule before a different judge in the SDNY. The panel bank defendants moved to dismiss the action, and the motion was granted in April 2015.  In June 2015, plaintiff sought leave to file a further amended complaint; that motion is pending.
 
Sterling LIBOR Case in SDNY
 
An additional class action was commenced in May 2015 in the SDNY against BBPLC and other Sterling LIBOR panel banks by a plaintiff involved in exchange-traded and over-the-counter derivatives that were linked to Sterling LIBOR. The complaint alleges, among other things, that BBPLC and other panel banks manipulated the Sterling LIBOR rate between 2005 and 2010 and, in so doing, committed CEA, antitrust, and RICO violations.
 
Securities Fraud Case in the SDNY
 
BPLC, BBPLC and BCI have also been named as defendants along with four former officers and directors of BBPLC in a proposed securities class action pending in the SDNY in connection with BBPLC's role as a contributor panel bank to LIBOR. The complaint asserted claims under the US Securities Exchange Act of 1934, principally alleging that BBPLC's Annual Reports for the years 2006 to 2011 contained misstatements and omissions concerning (amongst other things) BBPLC's compliance with its operational risk management processes and certain laws and regulations. The complaint also alleged that BBPLC's daily USD LIBOR submissions constituted false statements in violation of US securities law. The complaint was brought on behalf of a proposed class consisting of all persons or entities that purchased BPLC-sponsored American Depositary Receipts on a US securities exchange between 10 July 2007 and 27 June 2012. In May 2013, the district court granted BBPLC's motion to dismiss the complaint in its entirety. The plaintiffs appealed, and, in April 2014, the Second Circuit issued an order upholding the dismissal of certain of the plaintiffs' claims, but reversing the dismissal of the plaintiffs' claims that BBPLC's daily USD LIBOR submissions constituted false statements in violation of US securities law. The action has been remanded back to the district court for further proceedings, and discovery is expected to be substantially complete by the end of 2015. In April 2015, plaintiffs filed a motion to certify the class, and that motion is pending.
 
Complaint in the US District Court for the Central District of California
 
In July 2012, a purported class action complaint in the US District Court for the Central District of California was amended to include allegations related to USD LIBOR and name BBPLC as a defendant. The amended complaint was filed on behalf of a purported class that includes holders of adjustable rate mortgages linked to USD LIBOR. In January 2015, the court granted BBPLC's motion for summary judgement and dismissed all of the remaining claims against BBPLC. The plaintiff has appealed the court's decision to the US Court of Appeals for the Ninth Circuit.
 
Japanese Yen LIBOR Case in SDNY
 
An additional class action was commenced in April 2012 in the SDNY against BBPLC and other Japanese Yen LIBOR panel banks by a plaintiff involved in exchange-traded derivatives. The complaint also names members of the Japanese Bankers Association's Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR) panel, of which BBPLC is not a member. The complaint alleges, amongst other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates and breaches of the CEA and US Sherman Antitrust Act between 2006 and 2010. The defendants filed a motion to dismiss and, in March 2014, the Court issued a decision granting in part and denying in part that motion. Specifically, the court dismissed the plaintiff's antitrust claims in full, but sustained the plaintiff's CEA claims. The defendants' motion for reconsideration of the decision concerning the CEA claims was denied by the Court in October 2014. The plaintiff moved for leave to file a third amended complaint adding additional claims, including a RICO claim, which was denied in March 2015. Plaintiff has sought an immediate appeal of that decision, and that request is pending.  Discovery commenced in May 2015.
 
EURIBOR Cases
 
In February 2013, a EURIBOR -related class action was filed against BPLC, BBPLC, BCI and other EURIBOR panel banks. The plaintiffs assert antitrust, CEA, RICO, and unjust enrichment claims. In particular, BBPLC is alleged to have conspired with other EURIBOR panel banks to manipulate EURIBOR. The lawsuit is brought on behalf of purchasers and sellers of NYSE LIFFE EURIBOR futures contracts, purchasers of Euro currency-related futures contracts and purchasers of other derivative contracts (such as interest rate swaps and forward rate agreements that are linked to EURIBOR) during the period 1 June 2005 through 31 March 2011. All proceedings were stayed until May 2015, when the court modified the stay to permit document discovery to proceed.
 
In addition, BBPLC has been granted conditional leniency from the DOJ-AD in connection with potential US antitrust law violations with respect to financial instruments that reference EURIBOR. As a result of that grant of conditional leniency, BBPLC is eligible for (i) a limit on liability to actual rather than treble damages if damages were to be awarded in any civil antitrust action under US antitrust law based on conduct covered by the conditional leniency and (ii) relief from potential joint-and-several liability in connection with such civil antitrust action, subject to BBPLC satisfying the DOJ-AD and the court presiding over the civil litigation of fulfilment of its cooperation obligations.
 
Non-US Benchmarks Cases
 
In addition to US actions, legal proceedings have been brought or threatened against the Group in connection with alleged manipulation of LIBOR and EURIBOR in a number of jurisdictions. The number of such proceedings in non-US jurisdictions, the benchmarks to which they relate, and the jurisdictions in which they may be brought have increased over time.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
Civil Actions in respect of ISDAFIX
 
Since September 2014, a number of ISDAFIX related civil actions have been filed in the SDNY on behalf of a proposed class of plaintiffs, alleging that BBPLC, a number of other banks and one broker, violated the US Sherman Antitrust Act and several state laws by engaging in a conspiracy to manipulate the USD ISDAFIX. A consolidated amended complaint was filed in February 2015.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
Civil Actions in respect of Foreign Exchange Trading
 
Since November 2013, a number of civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs alleging manipulation of Foreign Exchange markets under the US Sherman Antitrust Act and New York state law and naming several international banks as defendants, including BBPLC. In February 2014, the SDNY combined all then-pending actions alleging a class of US persons in a single consolidated action.
 
Recent Developments
 
In January 2015, the SDNY denied the motion to dismiss the consolidated action but dismissed two actions alleging classes of non-US persons.
 
Since February 2015, several additional civil actions have been filed in the SDNY, and one civil action has been filed in the Northern District of California, on behalf of proposed classes of plaintiffs alleging injuries related to Barclays' alleged manipulation of Foreign Exchange rates and naming several international banks as defendants, including BPLC, BBPLC and BCI.  One of the newly filed actions asserts claims under the US Employee Retirement Income Security Act (ERISA) statute and includes allegations that are duplicative of allegations in the other cases, as well as additional allegations about Foreign Exchange sales practices and ERISA plans. All of the other newly filed actions assert claims under the US Sherman Antitrust Act and/or the US Commodity Exchange Act.
 
Claimed Amounts/Financial Impact
 
The financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period is currently uncertain.
 
Civil Actions in respect of the Gold Fix 
 
Since March 2014, a number of civil complaints have been filed in US federal courts, each on behalf of a proposed class of plaintiffs, alleging that BBPLC and other members of The London Gold Market Fixing Ltd. manipulated the prices of gold and gold derivative contracts in violation of the CEA, the US Sherman Antitrust Act, and state antitrust and consumer protection laws. All of the complaints have been transferred to the SDNY and consolidated for pretrial purposes.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the potential exposure of the actions described or what effect that they might have upon operating results, cash flows or the Group's financial position in any particular period.
 
US Residential and Commercial Mortgage-related Activity and Litigation
 
The Group's activities within the US residential mortgage sector during the period from 2005 through 2008 included:
 
·     Sponsoring and underwriting of approximately $39bn of private-label securitisations;
·     Economic underwriting exposure of approximately $34bn for other private-label securitisations;
·     Sales of approximately $0.2bn of loans to government sponsored enterprises (GSEs);
·     Sales of approximately $3bn of loans to others; and
·     Sales of approximately $19.4bn of loans (net of approximately $500m of loans sold during this period and subsequently repurchased) that were originated and sold to third parties by mortgage originator affiliates of an entity that
       the Group acquired in 2007 (Acquired Subsidiary).
 
Throughout this time period affiliates of the Group engaged in secondary market trading of US residential mortgaged-backed securities (RMBS) and US commercial mortgage-backed securities (CMBS), and such trading activity continues today.
 
In connection with its loan sales and certain private-label securitisations, on 30 June 2015, the Group had unresolved repurchase requests relating to loans with a principal balance of approximately $2.6bn at the time they were sold, and civil actions have been commenced by various parties alleging that the Group must repurchase a substantial number of such loans.
 
In addition, the Group is party to a number of lawsuits filed by purchasers of RMBS asserting statutory and/or common law claims. The current outstanding face amount of RMBS related to these pending claims against the Group as of 30 June 2015 was approximately $0.8bn.
 
Regulatory and governmental authorities, including amongst others, the DOJ, SEC, Special Inspector General for the US Troubled Asset Relief Program, the US Attorney's Office for the District of Connecticut and the US Attorney's Office for the Eastern District of New York have initiated wide-ranging investigations into market practices involving mortgage-backed securities, and the Group is co-operating with several of those investigations.
 
RMBS Repurchase Requests
 
Background
 
The Group was the sole provider of various loan-level representations and warranties (R&Ws) with respect to:
 
·     Approximately $5bn of Group sponsored securitisations;
·     Approximately $0.2bn of sales of loans to GSEs; and
·     Approximately $3bn of loans sold to others.
 
In addition, the Acquired Subsidiary provided R&Ws on all of the $19.4bn of loans it sold to third parties.
 
R&Ws on the remaining Group sponsored securitisations were primarily provided by third-party originators directly to the securitisation trusts with a Group subsidiary, such as the depositor for the securitisation, providing more limited R&Ws. There are no stated expiration provisions applicable to most R&Ws made by the Group, the Acquired Subsidiary or these third parties.
 
Under certain circumstances, the Group and/or the Acquired Subsidiary may be required to repurchase the related loans or make other payments related to such loans if the R&Ws are breached.
 
The unresolved repurchase requests received on or before 30 June 2015 associated with all R&Ws made by the Group or the Acquired Subsidiary on loans sold to GSEs and others and private-label activities had an original unpaid principal balance of approximately $2.6bn at the time of such sale.
 
A substantial number (approximately $2.2bn) of the unresolved repurchase requests discussed above relate to civil actions that have been commenced by the trustees for certain RMBS securitisations in which the trustees allege that the Group and/or the Acquired Subsidiary must repurchase loans that violated the operative R&Ws. Such trustees and other parties making repurchase requests have also alleged that the operative R&Ws may have been violated with respect to a greater (but unspecified) amount of loans than the amount of loans previously stated in specific repurchase requests made by such trustees. All of the litigation involving repurchase requests remain at early stages.
 
In addition, the Acquired Subsidiary is subject to a civil action seeking, among other things, indemnification for losses allegedly suffered by a loan purchaser as a result of alleged breaches of R&Ws provided by the Acquired Subsidiary in connection with loan sales to the purchaser during the period 1997-2007.  This litigation is in early stages.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
RMBS Securities Claims
 
Background
 
As a result of some of the RMBS activities described above, the Group is party to a number of lawsuits filed by purchasers of RMBS sponsored and/or underwritten by the Group between 2005 and 2008. As a general matter, these lawsuits allege, among other things, that the RMBS offering materials allegedly relied on by such purchasers contained materially false and misleading statements and/or omissions and generally demand rescission and recovery of the consideration paid for the RMBS and recovery of monetary losses arising out of their ownership.
 
The original face amount of RMBS related to the pending civil actions against the Group total approximately $2.3bn, of which approximately $0.8bn was outstanding as at 30 June 2015.
 
Cumulative realised losses reported on these RMBS as at 30 June 2015 were approximately $0.2bn.
 
Claimed Amounts/Financial Impact
 
If the Group were to lose the pending actions the Group believes it could incur a loss of up to the outstanding amount of the RMBS at the time of judgement (taking into account further principal payments after 30 June 2015), plus any cumulative losses on the RMBS at such time and any interest, fees and costs, less the market value of the RMBS at such time and less any provisions taken to date.
 
Although the purchasers in these securities actions have generally not identified a specific amount of alleged damages, the Group has estimated the total market value of these RMBS as at 30 June 2015 to be approximately $0.4bn. The Group may be entitled to indemnification for a portion of such losses.
 
Other Mortgage-related Investigations
 
In addition to the RMBS Repurchase Requests and RMBS Securities Claims, numerous regulatory and governmental authorities, amongst them the DOJ, SEC, Special Inspector General for the US Troubled Asset Relief Program, the US Attorney's Office for the District of Connecticut and the US Attorney's Office for the Eastern District of New York have been investigating various aspects of the mortgage-related business, including issuance and underwriting practices in primary offerings of RMBS and trading practices in the secondary market for both RMBS and CMBS. The Group continues to respond to requests relating to the RMBS Working Group of the Financial Fraud Enforcement Task Force (RMBS Working Group), which was formed to investigate pre-financial crisis mortgage-related misconduct. In connection with several of the investigations by members of the RMBS Working Group, a number of financial institutions have entered into settlements involving substantial monetary payments. 
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
Lehman Brothers
 
Since September 2009, BCI and BBPLC have been engaged in litigation with various entities that have sought to challenge certain aspects of the transaction pursuant to which BCI, BBPLC and other companies in the Group acquired most of the assets of Lehman Brothers Inc. (LBI) in September 2008, as well as the court order (Order) approving the sale (Sale). In May 2015, BCI and BBPLC reached a settlement with the SIPA Trustee for Lehman Brothers Inc. (Trustee) to resolve outstanding litigation between them relating to the Sale. The settlement was approved by the United States Bankruptcy Court for the SDNY (Bankruptcy Court) on 29 June 2015, thereby bringing the litigation challenging the Sale to an end.
 
Background Information
 
In September 2009, motions were filed in the Bankruptcy Court by Lehman Brothers Holdings Inc. (LBHI), the Trustee and the Official Committee of Unsecured Creditors of Lehman Brothers Holdings Inc. (Committee) challenging certain aspects of the Sale, as well as the Order. The claimants sought an order voiding the transfer of certain assets to BCI, requiring BCI to return to the LBI estate any excess value BCI allegedly received, and declaring that BCI is not entitled to certain assets that it claims pursuant to the Sale documents and the Order (Rule 60 Claims).
 
In January 2010, BCI filed its response to the motions and also filed a motion seeking delivery of certain assets that LBHI and LBI had failed to deliver as required by the Sale documents and the Order (together with the Trustee's competing claims to those assets, Contract Claims).
 
In 2011, the Bankruptcy Court rejected the Rule 60 Claims and decided some of the Contract Claims in the Trustee's favour and some in favour of BCI. BCI and the Trustee each appealed the Bankruptcy Court's adverse rulings on the Contract Claims to the SDNY. LBHI and the Committee did not appeal the Bankruptcy Court's ruling on the Rule 60 Claims.
 
In July 2012, the SDNY issued an opinion on the Contract Claims stating that BCI and BBPLC were entitled to receive:
 
·     $1.1bn (£0.7bn) from the Trustee in respect of 'clearance box' assets (Clearance Box Assets); and
·     Property held at various institutions in respect of the exchange traded derivatives accounts transferred to BCI in the Sale (ETD Margin).
 
The Trustee appealed to the Second Circuit. In August 2014, the Second Circuit affirmed the SDNY's decision as to the Clearance Box Assets and the ETD Margin.
 
In October 2014, the Trustee filed a motion with the SDNY to confirm the scope of the SDNY's judgement regarding the ETD Margin that BCI and BBPLC were entitled to receive. With that motion, the Trustee challenged the entitlement of BCI and BBPLC to approximately $1.1bn of assets that the Trustee asserted did not constitute ETD Margin.  In April 2015, the SDNY ruled in favour of BCI and BBPLC, confirming that they were entitled to all of the ETD Margin.
 
In October 2014, the Trustee made a payment to BBPLC of $1.1bn (£0.7bn), fully discharging the Trustee's obligations in respect of the Clearance Box Assets.
 
Recent Developments
 
In December 2014, the Trustee requested that the US Supreme Court review the rulings of the SDNY and the Second Circuit regarding the ETD margin.  In May 2015, the US Supreme Court published its denial of the Trustee's request.
 
In May 2015, the parties reached a settlement to resolve outstanding litigation between them relating to the Sale (Settlement). The Settlement was approved by the Bankruptcy Court on 29 June 2015. Pursuant to the Settlement, BBPLC has received all of the assets that the Trustee had asserted did not constitute ETD Margin with the exception of $80m (£51m) of assets that the Trustee is entitled to retain and approximately $0.3bn of ETD Margin still owed to BBPLC but expected to be received from third parties.
 
Financial Impact
 
As at 30 June 2015, BBPLC recognised as a financial asset on its balance sheet approximately $1.6bn (£1.0bn) in respect of assets to which BBPLC is entitled as part of the Sale and the Settlement but which it had not received as of that date. The financial asset reflects an increase of approximately $0.8bn (£0.5bn) recognised in profit and loss for the six month period ended 30 June 2015 as a result of the Settlement. Pursuant to the Settlement, the Trustee made a payment to BBPLC on 2 July 2015 of approximately $1.3bn (£0.9bn), representing the value of the ETD Margin held by the Trustee less the $80m of ETD Margin that the Trustee is entitled to retain under the terms of the Settlement, thereby fully discharging the Trustee's payment in respect of the ETD Margin or otherwise relating to the Sale. After application of this payment from the Trustee, BBPLC has a financial asset of approximately $0.3bn on its balance sheet in respect of ETD Margin still owed to BBPLC but expected to be received from third parties.
 
American Depositary Shares
 
BPLC, BBPLC and various former members of BPLC's Board of Directors have been named as defendants in a securities class action consolidated in the SDNY alleging misstatements and omissions in offering documents for certain American Depositary Shares issued by BBPLC in April 2008 with an original face amount of approximately $2.5 billion (the April 2008 Offering).
 
Background Information
 
The plaintiffs have  asserted claims under the Securities Act of 1933, alleging that the offering documents for the April 2008 Offering contained misstatements and omissions concerning (amongst other things) BBPLC's portfolio of mortgage-related (including US subprime-related) securities, BBPLC's exposure to mortgage and credit market risk, and BBPLC's financial condition.  The plaintiffs have not specifically alleged the amount of their damages.
 
In June 2014, the SDNY denied defendants' motion to dismiss the claims. The case is in discovery.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the action described on the Group or what effect  that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
BDC Finance L.L.C.
 
BDC Finance L.L.C. (BDC) filed a complaint against BBPLC in the NY Supreme Court alleging breach of contract in connection with a portfolio of total return swaps governed by an ISDA Master Agreement (collectively, the Agreement). A ruling was made against BBPLC, but the New York State Court of Appeals effectively reversed that ruling. Parties related to BDC have also sued BBPLC and BCI in Connecticut State Court in connection with BBPLC's conduct relating to the Agreement.
 
Background Information
 
In October 2008, BDC filed a complaint in the NY Supreme Court alleging that BBPLC breached the Agreement when it failed to transfer approximately $40m of alleged excess collateral in response to BDC's October 2008 demand (Demand).
 
BDC asserts that under the Agreement BBPLC was not entitled to dispute the Demand before transferring the alleged excess collateral and that even if the Agreement entitled BBPLC to dispute the Demand before making the transfer, BBPLC failed to dispute the Demand.
 
BDC demands damages totalling $298m plus attorneys' fees, expenses, and prejudgement interest.
 
In August 2012, the NY Supreme Court granted partial summary judgement for BBPLC, ruling that BBPLC was entitled to dispute the Demand before transferring the alleged excess collateral, but determining that a trial was required to determine whether BBPLC actually did so. The parties cross-appealed to the Appellate Division of the NY Supreme Court (NY Appellate Division).
 
In September 2011, BDC's investment advisor, BDCM Fund Adviser, L.L.C. and its parent company, Black Diamond Capital Holdings, L.L.C. also sued BBPLC and BCI in Connecticut State Court for unspecified damages allegedly resulting from BBPLC's conduct relating to the Agreement, asserting claims for violation of the Connecticut Unfair Trade Practices Act and tortious interference with business and prospective business relations. The parties have agreed to a stay of that case.
 
In October 2013, the NY Appellate Division reversed the NY Supreme Court's grant of partial summary judgement in favour of BBPLC, and instead granted BDC's motion for partial summary judgement, holding that BBPLC breached the Agreement. The NY Appellate Division did not rule on the amount of BDC's damages, which has not yet been determined by the NY Supreme Court.
 
Recent Developments
 
In February 2015, in connection with the BBPLC appeal of the October 2013 decision, the New York Court of Appeals modified the NY Appellate Division's grant of partial summary judgement to BDC, holding that summary judgement in either party's favour cannot be granted because a material issue of fact remains as to whether BBPLC breached the Agreement. The New York Court of Appeals ordered that the matter be referred back to the NY Supreme Court for further proceedings.
 
Claimed Amounts/Financial Impact
 
BDC has made claims against the Group totalling $298m plus attorneys' fees, expenses, and pre-judgement interest. This amount does not necessarily reflect the Group's potential financial exposure if a ruling were to be made against it.
 
Civil Actions in respect of the US Anti-Terrorism Act
 
In April 2015, an amended civil complaint was filed in the US Federal Court in the Eastern District of New York by a group of approximately 250 plaintiffs, alleging that the Group and a number of other banks engaged in a conspiracy and violated the US Anti-Terrorism Act (ATA) by facilitating US dollar denominated transactions for the Government of Iran and various Iranian banks, which in turn funded Hezbollah attacks that injured the plaintiffs' family members. Plaintiffs seek to recover for pain, suffering and mental anguish pursuant to the provisions of the ATA, which allows for the tripling of any proven damages.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect that these matters might have upon operating results, cash flows or the Group's financial position in any particular period.
 
Credit Default Swap (CDS) Antitrust Investigations and Civil Actions
 
The Commission and the DOJ-AD commenced investigations in the CDS market, in 2011 and 2009, respectively. In July 2013 the Commission addressed a Statement of Objections to BBPLC, 12 other banks, Markit Ltd. and ISDA. The case relates to concerns that certain banks took collective action to delay and prevent the emergence of exchange traded credit derivative products.
 
If the Commission does reach a decision in this matter it has indicated that it intends to impose sanctions. The Commission's sanctions can include fines. The DOJ-AD's investigation is a civil investigation and relates to similar issues. BPLC is also contesting a proposed, consolidated class action alleging similar issues that has been filed in the US. Discovery in the case is ongoing.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect  that they might have upon the Group's operating results, cash flows or financial position in any particular period.
 
Portuguese Competition Authority Investigation
 
The Portuguese Competition Authority is investigating whether competition law was infringed by the exchange of information about retail credit products amongst 15 banks in Portugal, including the Group, over a period of 11 years with particular reference to mortgages, consumer lending and lending to small and medium enterprises.  The Group is co-operating with the investigation.
 
Claimed Amounts/Financial Impact
 
It is not currently practicable to provide an estimate of the financial impact of these matters or what effect that they may have upon operating results, cash flows or the Group's financial position in any particular period.
 
General
 
The Group is engaged in various other legal, competition and regulatory matters both in the UK and a number of overseas jurisdictions. It is subject to legal proceedings by and against the Group which arise in the ordinary course of business from time to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets, competition, data protection, money laundering, employment, environmental and other statutory and common law issues.
 
The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Group is or has been engaged.
 
At the present time, the Group does not expect the ultimate resolution of any of these other matters to have a material adverse effect on its financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters will not be material to the Group's results of operations or cash flow for a particular period, depending on, amongst other things, the amount of the loss resulting from the matter(s) and the amount of income otherwise reported for the reporting period.
 
18.         Related party transactions
 
Related party transactions in the period ended 30 June 2015 were similar in nature to those disclosed in the Group's 2014 Annual Report. No related party transactions that have taken place in 2015 have materially affected the financial position or the performance of the Group during this period and there were no changes in the related parties transactions described in the 2014 Annual Report that could have a material effect on the financial position or performance of the Group in the current period.
 
19.         Segmental reporting
 
Analysis of results by business
Personal and Corporate Banking
Barclaycard
Africa Banking
Investment Bank
Half year ended 30.06.15
£m
£m
£m
£m
Total income net of insurance claims
4,384 
2,357 
1,858 
4,299 
Credit impairment charges and other provisions
(178)
(563)
(193)
(1)
Net operating income
4,206 
1,794 
1,665 
4,298 
Operating expenses
(2,491)
(961)
(1,116)
(2,795)
Costs to achieve
(139)
(56)
(13)
(63)
Other net (expense)/income1 
(48)
18 
4 
- 
Profit before tax
1,528 
795 
540 
1,440 
         
 
£bn
£bn
£bn
£bn
Total assets
289.9 
41.9 
54.0 
420.1 
         
Analysis of results by business
Head Office
Barclays Core
Barclays Non-Core
Barclays Group Adjusted
Half year ended 30.06.15
£m
£m
£m
£m
Total income net of insurance claims
42 
12,940 
42 
12,982 
Credit impairment charges and other provisions
(1)
(936)
(37)
(973)
Net operating income
41 
12,004 
5 
12,009 
Operating expenses
(85)
(7,448)
(498)
(7,946)
Costs to achieve
(22)
(293)
(23)
(316)
Other net income/(expense)1 
4 
(22)
4 
(18)
(Loss)/profit before tax
(62)
4,241 
(512)
3,729 
         
 
£bn
£bn
£bn
£bn
Total assets
52.6 
858.5 
338.2 
1,196.7 
 
Analysis of results by business
Personal and Corporate Banking
Barclaycard
Africa Banking
Investment Bank
Half year ended 30.06.14
£m
£m
£m
£m
Total income net of insurance claims
4,361 
2,124 
1,773 
4,257 
Credit impairment charges and other provisions
(230)
(537)
(196)
26 
Net operating income
4,131 
1,587 
1,577 
4,283 
Operating expenses
(2,554)
(822)
(1,082)
(2,943)
Costs to achieve
(115)
(36)
(17)
(282)
Other net income1 
6 
35 
6 
- 
Profit before tax
1,468 
764 
484 
1,058 
         
 
£bn
£bn
£bn
£bn
Total assets
268.1 
36.2 
52.4 
446.2 
         
Analysis of results by business
Head Office
Barclays Core
Barclays Non-Core
Barclays Group Adjusted
Half year ended 30.06.14
£m
£m
£m
£m
Total income net of insurance claims
159 
12,674 
658 
13,332 
Credit impairment charges and other provisions
- 
(937)
(149)
(1,086)
Net operating income
159 
11,737 
509 
12,246 
Operating expenses
(91)
(7,491)
(893)
(8,383)
Costs to achieve
(2)
(453)
(41)
(494)
Other net income/(expense)1 
- 
47 
(66)
(20)
Profit/(loss) before tax
66 
3,840 
(491)
3,349 
         
 
£bn
£bn
£bn
£bn
Total assets
43.3 
846.2 
468.6 
1,314.9 
 
1
Other income/(expense) represents: share of post-tax results of associates and joint ventures; profit or (loss) on disposal of subsidiaries, associates and joint ventures; and gains on acquisitions.
 
Reconciliation of adjusted basis to statutory basis
Barclays Group
adjusted
Own credit  
Provision for UK customer redress
Gain on US Lehman acquisition assets
Provisions for ongoing investigations and litigation primarily relating to Foreign Exchange
Loss on sale of the Spanish business
Gain on valuation of a component of the defined retirement benefit liability
Barclays Group statutory
Half year ended 30.06.15
£m
£m
£m
£m
£m
£m
£m
£m
Total income net of insurance claims
12,982 
410 
- 
496 
- 
- 
- 
13,888 
Credit impairment charges and other provisions
(973)
- 
- 
- 
- 
- 
- 
(973)
Net operating income
12,009 
410 
- 
496 
- 
- 
- 
12,915 
Operating expenses
(7,946)
- 
(1,032)
- 
(800)
- 
429 
(9,349)
Costs to achieve
(316)
- 
- 
- 
- 
- 
- 
(316)
Other net (expense)/income
(18)
- 
- 
- 
- 
(118)
- 
(136)
Profit/(loss)
3,729 
410 
(1,032)
496 
(800)
(118)
429 
3,114 
                 
Half year ended 30.06.14
£m
£m
£m
£m
£m
£m
£m
£m
Total income net of insurance claims
13,332 
52 
- 
- 
- 
- 
- 
13,384 
Credit impairment charges and other provisions
(1,086)
- 
- 
- 
- 
- 
- 
(1,086)
Net operating income
12,246 
52 
- 
- 
- 
- 
- 
12,298 
Operating expenses
(8,383)
- 
(900)
- 
- 
- 
- 
(9,283)
Costs to achieve
(494)
- 
- 
- 
- 
- 
- 
(494)
Other net (expense)/income
(20)
- 
- 
- 
- 
- 
- 
(20)
Profit/(loss)
3,349 
52 
(900)
- 
- 
- 
- 
2,501 
 
20.         Barclays PLC parent balance sheet
 
 
As at
As at
 
30.06.15
31.12.14
Assets
£m
£m
Investments in subsidiary
34,303 
33,743 
Loans and advances to subsidiary
5,318 
2,866 
Derivative financial instrument
194 
313 
Other assets
184 
174 
Total assets
39,999 
37,096 
     
Liabilities
    
Deposits from banks
519 
528 
Subordinated liabilities
800 
810 
Debt securities in issue
4,518 
2,056 
Other liabilities
- 
10 
Total liabilities
5,837 
3,404 
     
Equity
    
Called up share capital
4,193 
4,125 
Share premium account
17,330 
16,684 
Other equity instruments
4,326 
4,326 
Capital redemption reserve
394 
394 
Retained earnings
7,919 
8,163 
Total shareholders' equity
34,162 
33,692 
Total liabilities and shareholders' equity
39,999 
37,096 
 
Investment in subsidiary
 
The investment in subsidiary of £34,303m (2014: £33,743m) represents investments made into Barclays Bank PLC, including £4,326m (2014: £4,326m) of AT1 securities. The increase of £560m during the period was due to a cash contribution made to Barclays Bank PLC.
 
Loans and advances to subsidiary and debt securities in issue
 
During H115, Barclays PLC issued $4bn of Fixed Rate Senior Notes, accounted for as debt securities in issue. The proceeds raised through these transactions were used to make $4bn of Fixed Rate Senior Loans to Barclays Bank PLC, with a ranking corresponding to the notes issued by Barclays PLC.
 
Shareholder Information
 
           
Results timetable1 
Date
        
Ex-dividend date
6 August 2015
Dividend Record date
7 August 2015
Scrip reference share price set and made available to shareholders
13 August 2015
Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or Revocation Forms (as applicable)
21 August 2015
Dividend Payment date /first day of dealing in New Shares
14 September 2015
Q3 2015 Interim Management Statement
29 October 2015
           
For qualifying US and Canadian resident ADR holders, the second interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will post the second interim dividend on Monday, 14 September 2015 to ADR holders on the record at close of business on Friday, 7 August 2015. The ex-dividend date will be Wednesday, 5 August 2015.
           
           
   
Change3 
Exchange rates2 
30.06.15
31.12.14
30.06.14
31.12.14
30.06.14
Period end - US$/£
1.57 
1.56 
1.71 
1%
(8%)
6 month average - US$/£
1.52 
1.63 
1.67 
(7%)
(9%)
3 month average - US$/£
1.53 
1.58 
1.68 
(3%)
(9%)
Period end - €/£
1.41 
1.28 
1.25 
10%
13%
6 month average - €/£
1.37 
1.26 
1.22 
9%
12%
3 month average - €/£
1.38 
1.27 
1.23 
9%
12%
Period end - ZAR/£
19.12 
18.03 
18.17 
6%
5%
6 month average - ZAR/£
18.16 
17.85 
17.82 
2%
2%
3 month average - ZAR/£
18.49 
17.75 
17.76 
4%
4%
           
Share price data
30.06.15
31.12.14
30.06.14
    
Barclays PLC (p)
260.50 
243.50 
212.80 
    
Barclays PLC number of shares (m)
16,773 
16,498 
16,417 
    
Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)
182.98 
182.00 
161.50 
    
Barclays Africa Group Limited (formerly Absa Group Limited) number of shares (m)
848 
848 
847 
    
           
           
For further information please contact
          
           
Investor relations
Media relations
Kathryn McLeland +44 (0) 20 7116 4943
Will Bowen +44 (0) 20 3134 7744
           
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
          
Equiniti, 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.
3
The change is the impact to Sterling 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.
 
Listing
 
The principal trading market for Barclays PLC ordinary shares is the London Stock Exchange. Trading on the New York Stock Exchange is in the form of ADSs under the ticker symbol 'BCS'. Each ADS represents four ordinary shares of 25p each and is evidenced by an ADR. The ADR depositary is JP Morgan Chase Bank, whose international telephone number is         +1-651-453-2128, domestic telephone number is 1-800-990-1135 and address is JPMorgan Chase Bank, PO Box 64504, St. Paul, MN 55164-0504, USA.
 
Barclays PLC Scrip Dividend Programme
 
 Shareholders may have their dividends reinvested in Barclays shares by joining the Barclays PLC Scrip Dividend Programme (the Programme). The Programme enables shareholders, if they wish, to receive new fully paid ordinary shares in Barclays PLC instead of a cash dividend, without incurring dealing costs or stamp duty. 
 
For further details, including the full Terms and Conditions and information about how to join or leave the Programme, please visit Barclays.com/dividends. Alternatively contact our Registrar: Equiniti, by telephoning 0871 384 20551 from the UK or +44 121 415 7004 from overseas, or write to Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.
 
1
Calls cost 8p per minute plus network extras.  Lines open 8.30am to 5.30pm UK time, Monday to Friday excluding UK public holidays.