|
31 October 2011
|
|
Group Unaudited Results
|
30.09.11
|
30.09.10
|
|||
|
|
£m
|
£m
|
% Change
|
||
|
Total income net of insurance claims excluding own credit
|
22,242
|
22,968
|
(3)
|
||
|
Own credit gain/(charge)
|
2,971
|
(96)
|
nm
|
||
|
Total income net of insurance claims
|
25,213
|
22,872
|
10
|
||
|
Credit impairment charges and other provisions
|
(2,851)
|
(4,298)
|
(34)
|
||
|
Impairment of investment in BlackRock, Inc.
|
(1,800)
|
-
|
nm
|
||
|
Net operating income
|
20,562
|
18,574
|
11
|
||
|
Operating expenses excluding provision for payment protection insurance (PPI) redress
|
(14,488)
|
(14,476)
|
-
|
||
|
Provision for PPI redress1
|
(1,000)
|
-
|
nm
|
||
|
Profit before tax
|
5,066
|
4,274
|
19
|
||
|
Own credit (gain)/charge
|
(2,971)
|
96
|
nm
|
||
|
Impairment of investment in BlackRock, Inc.
|
1,800
|
-
|
nm
|
||
|
Provision for PPI redress1
|
1,000
|
-
|
nm
|
||
|
Losses/(gains) on acquisitions and disposals2
|
120
|
(134)
|
nm
|
||
|
Adjusted profit before tax
|
5,015
|
4,236
|
18
|
||
|
Profit after tax
|
3,349
|
3,206
|
4
|
||
|
Profit attributable to equity holders of the parent
|
2,651
|
2,480
|
7
|
||
|
Basic earnings per share
|
22.2p
|
21.3p
|
4
|
||
|
Dividend per share
|
3.0p
|
3.0p
|
-
|
||
|
|
|||||
|
Capital and Balance Sheet
|
30.09.11
|
30.06.11
|
|||
|
Core Tier 1 ratio
|
11.0%
|
11.0%
|
nm
|
||
|
Risk weighted assets
|
£390bn
|
£395bn
|
(1)
|
||
|
Adjusted gross leverage
|
21x
|
20x
|
nm
|
||
|
Group liquidity pool
|
£166bn
|
£145bn
|
14
|
||
|
Net asset value per share
|
439p
|
423p
|
4
|
||
|
Net tangible asset value per share
|
372p
|
353p
|
5
|
||
|
Group loan: deposit ratio
|
116%
|
118%
|
nm
|
|
Adjusted3
|
Statutory
|
||||
|
Performance Measures
|
30.09.11
|
30.09.10
|
30.09.11
|
30.09.10
|
|
|
Return on average shareholders' equity
|
8.1%
|
6.5%
|
6.9%
|
6.7%
|
|
|
Return on average tangible shareholders' equity
|
9.7%
|
7.9%
|
8.3%
|
8.1%
|
|
|
Return on average risk weighted assets
|
1.3%
|
1.0%
|
1.1%
|
1.1%
|
|
|
Cost: income ratio
|
65%
|
63%
|
61%
|
63%
|
|
|
Cost: net operating income ratio
|
74%
|
78%
|
75%
|
78%
|
|
|
1 Provision for the settlement of PPI claims following the conclusion of the Judicial Review proceedings. In addition the Group has recognised costs of £13m (2010: 155m) for the settlement of PPI claims unrelated to the Judicial Review
2 2011 includes a £58m loss on disposal of a portion of the Group's strategic investment in BlackRock, Inc. recycled through investment income, and a
£64m provision relating to the sale of Barclays Bank Russia
3 Adjusted performance metrics and profit before tax reflect the adjusting items disclosed above
|
|||||
|
Group Results by Quarter
|
Q311
|
Q211
|
Q111
|
Q410
|
Q310
|
Q210
|
Q110
|
||||||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||||||
|
Total income net of insurance claims (excluding own credit)
|
7,001
|
7,491
|
7,750
|
8,081
|
7,238
|
7,563
|
8,167
|
||||||
|
Own credit gain/(charge)
|
2,882
|
440
|
(351)
|
487
|
(947)
|
953
|
(102)
|
||||||
|
Total income net of insurance claims
|
9,883
|
7,931
|
7,399
|
8,568
|
6,291
|
8,516
|
8,065
|
||||||
|
Credit impairment charges and other provisions
|
(1,023)
|
(907)
|
(921)
|
(1,374)
|
(1,218)
|
(1,572)
|
(1,508)
|
||||||
|
Impairment of investment in BlackRock, Inc.
|
(1,800)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||
|
Net operating income
|
7,060
|
7,024
|
6,478
|
7,194
|
5,073
|
6,944
|
6,557
|
||||||
|
Operating expenses (excluding provision for PPI redress)
|
(4,659)
|
(4,987)
|
(4,842)
|
(5,495)
|
(4,756)
|
(4,868)
|
(4,852)
|
||||||
|
Provision for PPI redress
|
-
|
(1,000)
|
-
|
-
|
-
|
-
|
-
|
||||||
|
Total operating expenses
|
(4,659)
|
(5,987)
|
(4,842)
|
(5,495)
|
(4,756)
|
(4,868)
|
(4,852)
|
||||||
|
Share of post tax results of associates & JVs
|
18
|
19
|
17
|
16
|
9
|
18
|
15
|
||||||
|
Gains/(losses) on acquisitions and disposals
|
3
|
(67)
|
2
|
76
|
1
|
33
|
100
|
||||||
|
Profit before tax
|
2,422
|
989
|
1,655
|
1,791
|
327
|
2,127
|
1,820
|
||||||
|
Adjusted profit before tax1
|
1,337
|
1,674
|
2,004
|
1,228
|
1,273
|
1,141
|
1,822
|
||||||
|
Basic earnings per share
|
9.7p
|
4.0p
|
8.5p
|
9.1p
|
0.4p
|
11.6p
|
9.3p
|
||||||
|
Cost: income ratio
|
47%
|
75%
|
65%
|
64%
|
76%
|
57%
|
60%
|
||||||
|
Cost: net operating income ratio
|
66%
|
85%
|
75%
|
76%
|
94%
|
70%
|
74%
|
||||||
|
Adjusted cost: income ratio1
|
67%
|
66%
|
62%
|
68%
|
66%
|
64%
|
59%
|
||||||
|
Adjusted cost: net operating income ratio1
|
78%
|
75%
|
71%
|
82%
|
79%
|
81%
|
73%
|
||||||
|
Adjusted1
|
Statutory
|
||||||||||||
|
Nine Months Ended
|
Nine Months Ended
|
||||||||||||
|
Profit Before Tax by Business
|
30.09.11
|
30.09.10
|
30.09.11
|
30.09.10
|
|||||||||
|
UK RBB
|
1,198
|
634
|
798
|
734
|
|||||||||
|
Europe RBB
|
(109)
|
(63)
|
(109)
|
(34)
|
|||||||||
|
Africa RBB
|
622
|
550
|
624
|
554
|
|||||||||
|
Barclaycard
|
902
|
561
|
302
|
561
|
|||||||||
|
Retail and Business Banking
|
2,613
|
1,682
|
1,615
|
1,815
|
|||||||||
|
Barclays Capital
|
2,698
|
3,314
|
5,669
|
3,218
|
|||||||||
|
Barclays Corporate
|
106
|
(414)
|
42
|
(414)
|
|||||||||
|
Corporate and Investment Banking
|
2,804
|
2,900
|
5,711
|
2,804
|
|||||||||
|
Barclays Wealth
|
153
|
122
|
153
|
122
|
|||||||||
|
Investment Management
|
80
|
55
|
(1,778)
|
55
|
|||||||||
|
Head Office Functions and Other Operations
|
(635)
|
(523)
|
(635)
|
(522)
|
|||||||||
|
Group profit before tax
|
5,015
|
4,236
|
5,066
|
4,274
|
|||||||||
|
30.09.11
|
30.09.10
|
||||||||||||
|
Income by Geographic Segment2
|
£m
|
%
|
£m
|
%
|
|||||||||
|
UK
|
9,476
|
42
|
9,395
|
41
|
|||||||||
|
Europe
|
3,566
|
16
|
3,443
|
15
|
|||||||||
|
Americas
|
4,637
|
21
|
5,639
|
24
|
|||||||||
|
Africa and the Middle East
|
3,784
|
17
|
3,614
|
16
|
|||||||||
|
Asia
|
779
|
4
|
877
|
4
|
|||||||||
|
Total income net of insurance claims (excluding own credit)
|
22,242
|
100
|
22,968
|
100
|
|||||||||
|
1 Adjusted profit before tax and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. These measures exclude: the impact of own credit; the impairment of the investment in BlackRock, Inc.; the provision for PPI redress; and gains and losses on acquisitions and disposals of subsidiaries, associates, joint ventures and strategic investments
2 Total income net of insurance claims (excluding own credit) based on counterparty location
|
|||||||||||||
|
- Core Tier 1 remained strong at 11.0% (30 June 2011: 11.0%), with risk weighted assets flat at £390bn (30 June 2011: £395bn). Adjusted gross leverage was 21x (30 June 2011: 20x)
|
|
- Eurozone country exposures continue to be managed closely and valued appropriately. The Group's sovereign exposure to Spain, Italy, Portugal, Ireland and Greece reduced in Q3 by 31% to £8.0bn
|
|
- £6bn of term funding raised in Q3 2011, making £24bn in 2011 year to date. This compares to full year 2011 term funding maturities of £25bn
|
|
- Robust liquidity position with a liquidity pool of £166bn (30 June 2011: £145bn), which represent over a year of wholesale maturities, of which £152bn is FSA-eligible
|
|
- Net asset value per share increased 16p to 439p during Q3 and net tangible asset value per share increased 19p to 372p
|
|
- Adjusted return on average shareholders' equity improved to 8.1% (2010: 6.5%) and adjusted return on average tangible shareholders' equity improved to 9.7% (2010: 7.9%). These returns on a statutory basis improved to 6.9% (2010: 6.7%) and 8.3% (2010: 8.1%) respectively
|
|
- Adjusted profit before tax of £5,015m up 18%. Statutory profit before tax of £5,066m up 19%
|
|
- Impairment charges and other credit provisions of £2,851m down 34%, resulting in a year-to-date annualised loan loss rate of 74bps (2010: 110bps)
|
|
- BlackRock, Inc. investment assessed as impaired for accounting purposes, resulting in recycling through the income statement of the £1,800m cumulative reduction in fair value, which was already recognised in equity and deducted for regulatory capital purposes
|
|
- Operating expenses excluding PPI provision, flat at £14,488m
|
|
- Third interim dividend of 1.0p per share, making 3.0p for the year to date
|
|
- Income excluding own credit down 3% to £22,242m. Including own credit, income was up 10% to £25,213m. Own credit gain of £2,882m in the third quarter driven by widening credit spreads on Barclays Capital structured notes, which are held at fair value
|
|
- Net operating income up 4% to £19,391m excluding own credit and impairment of investment in BlackRock, Inc. Statutory net operating income up 11% to £20,562m
|
|
- Increased contribution from RBB, Barclays Corporate and Barclays Wealth, which together generated a 6% increase in income. Net interest margin was up 9bps to 2.10%, reflecting improvements in the underlying margin and hedging activities
|
|
- Increase in net benefit from Group hedging activities of £559m (full year 2010: £665m)
|
|
- Increased 2011 gross new UK lending to businesses of £33bn, including £11bn to SMEs, with the Group on track to exceed Project Merlin targets for 2011
|
|
- Extended access to basic financial services in 11 countries across Africa, Asia and South America, reaching more than 130,000 new people through our Banking On Change programme including community-led savings and loans groups
|
|
- Reached over 175,000 disadvantaged people through our Building Young Futures partnership with UNICEF, including provision of business or vocational skills training to over 112,000
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
UK RBB
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
3,527
|
3,332
|
6
|
|||
|
Impairment charges and other credit provisions
|
(380)
|
(649)
|
(41)
|
|||
|
Net operating income
|
3,147
|
2,683
|
17
|
|||
|
Operating expenses (excluding provision for PPI redress)
|
(1,950)
|
(2,047)
|
(5)
|
|||
|
Provision for PPI redress
|
(400)
|
-
|
nm
|
|||
|
Total operating expenses
|
(2,350)
|
(2,047)
|
15
|
|||
|
Share of post tax results of associates & JVs
|
1
|
(2)
|
nm
|
|||
|
Gains on acquisitions and disposals
|
-
|
100
|
nm
|
|||
|
Profit before tax
|
798
|
734
|
9
|
|||
|
Adjusted profit before tax
|
1,198
|
634
|
89
|
|||
|
- Increase in income of 6% reflecting strong growth in mortgages and personal savings partially offset by a reduction in income following closure of the branch-based financial planning business
|
|
- Impairment charges reduced by 41% due to significant improvement in unsecured lending
|
|
- Operating expenses down 5% excluding the provision for PPI redress
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Europe RBB
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
979
|
901
|
9
|
|||
|
Impairment charges and other credit provisions
|
(178)
|
(225)
|
(21)
|
|||
|
Net operating income
|
801
|
676
|
18
|
|||
|
Operating expenses
|
(920)
|
(750)
|
23
|
|||
|
Share of post tax results of associates & JVs
|
10
|
11
|
(9)
|
|||
|
Gains on acquisitions and disposals
|
-
|
29
|
(100)
|
|||
|
Loss before tax
|
(109)
|
(34)
|
nm
|
|||
|
Adjusted loss before tax
|
(109)
|
(63)
|
73
|
|||
|
- Adjusted loss of £109m (2010: loss of £63m) including £129m (2010: £nil) of restructuring charges principally related to operations in Spain
|
|
- Strong growth in income of 9% driven by an improved liability margin and the appreciation of the Euro against Sterling
|
|
- Impairment charges improved by 21% reflecting focused risk management and stable arrears rates
|
|
- Operating expenses increased by 23% reflecting restructuring charges, Italian and Portuguese branch expansion during 2010 and the appreciation of the Euro against Sterling
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Africa RBB
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
2,861
|
2,717
|
5
|
|||
|
Impairment charges and other credit provisions
|
(377)
|
(425)
|
(11)
|
|||
|
Net operating income
|
2,484
|
2,292
|
8
|
|||
|
Operating expenses
|
(1,865)
|
(1,740)
|
7
|
|||
|
Share of post tax results of associates & JVs
|
3
|
(2)
|
nm
|
|||
|
Gains on acquisitions and disposals
|
2
|
4
|
(50)
|
|||
|
Profit before tax
|
624
|
554
|
13
|
|||
|
Adjusted profit before tax
|
622
|
550
|
13
|
|||
|
- Profit before tax increased 13%, or 25% excluding a one off pension credit of £54m in 2010
|
|
- Income showed growth of 5% driven by improved performance in South Africa
|
|
- Impairment charges improved by 11% reflecting more stable economic conditions with improved retail collections and commercial recoveries
|
|
- Operating expenses increased 7% primarily reflecting inflationary pressures in South Africa and non recurrence of a pension credit in 2010
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Barclaycard
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
3,112
|
2,988
|
4
|
|||
|
Impairment charges and other credit provisions
|
(988)
|
(1,295)
|
(24)
|
|||
|
Net operating income
|
2,124
|
1,693
|
25
|
|||
|
Operating expenses (excluding provision for PPI redress)
|
(1,248)
|
(1,150)
|
9
|
|||
|
Provision for PPI redress
|
(600)
|
-
|
nm
|
|||
|
Total operating expenses
|
(1,848)
|
(1,150)
|
61
|
|||
|
Share of post tax results of associates & JVs
|
26
|
18
|
44
|
|||
|
Profit before tax
|
302
|
561
|
(46)
|
|||
|
Adjusted profit before tax
|
902
|
561
|
61
|
|||
|
- Income was 4% ahead of prior year with growth in balances driven by UK Cards, partly offset by customer balance repayments in the US and appreciation of Sterling against the US Dollar
|
|
- Impairment charges reduced by 24% reflecting focused risk management and customer balance repayments. The 30 day delinquency rate continued to improve in the UK and the US. This led to a 163bps increase in risk adjusted margin
|
|
- Operating expenses were in line with prior year, after excluding the provision for PPI redress, goodwill impairment and portfolio acquisitions
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Barclays Capital
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Fixed Income, Currency and Commodities
|
5,354
|
6,656
|
(20)
|
|||
|
Equities and Prime Services
|
1,446
|
1,415
|
2
|
|||
|
Investment Banking
|
1,521
|
1,518
|
-
|
|||
|
Principal Investments
|
196
|
124
|
58
|
|||
|
Total income net of insurance claims (excluding own credit)
|
8,517
|
9,713
|
(12)
|
|||
|
Own credit
|
2,971
|
(96)
|
nm
|
|||
|
Total income net of insurance claims
|
11,488
|
9,617
|
19
|
|||
|
Impairment charges and other credit provisions
|
(3)
|
(321)
|
(99)
|
|||
|
Net operating income
|
11,485
|
9,296
|
24
|
|||
|
Operating expenses
|
(5,831)
|
(6,094)
|
(4)
|
|||
|
Share of post tax results of associates & JVs
|
15
|
16
|
(6)
|
|||
|
Profit before tax
|
5,669
|
3,218
|
76
|
|||
|
Adjusted profit before tax
|
2,698
|
3,314
|
(19)
|
|||
|
- Total income excluding own credit was down 12% on 2010
|
|
- Fixed Income, Currency and Commodities (FICC) income declined 20%, reflecting lower contributions from the Credit, Commodities and Emerging Markets businesses, partially offset by an improved performance in Foreign
Exchange which benefited from strong client volumes, and Group hedging activities |
|
- Equities and Prime Services income increased 2% reflecting improved performance in equity financing
|
|
- Investment Banking income was flat with improved performance in equity underwriting and M&A advisory offset by a decrease in debt underwriting
|
|
- Total income excluding own credit in the third quarter of 2011 was down 22% on the second quarter of 2011 reflecting reduced income of 16% in FICC, 40% in Equities and Prime Services and 25% in Investment Banking
|
|
- Net operating income excluding own credit reduced 9%, having benefited from a significant reduction inimpairment charges to £3m (2010: £321m) principally reflecting charges relating to leveraged finance exposures, offset by a release of £223m against the loan to Protium Finance LLP (Protium) in the first half of 2011
|
|
- Operating expenses declined 4% reflecting the reduction in net operating income excluding own credit. Excluding the impact of own credit, the cost to net operating income ratio was 68% and the compensation to income ratio was 46%
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Barclays Corporate
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
2,247
|
2,167
|
4
|
|||
|
Impairment charges and other credit provisions
|
(896)
|
(1,354)
|
(34)
|
|||
|
Net operating income
|
1,351
|
813
|
66
|
|||
|
Operating expenses
|
(1,246)
|
(1,227)
|
2
|
|||
|
Share of post tax results of associates & JVs
|
1
|
-
|
nm
|
|||
|
Loss on disposal
|
(64)
|
-
|
nm
|
|||
|
Profit/(loss) before tax
|
42
|
(414)
|
nm
|
|||
|
Adjusted profit/(loss) before tax
|
106
|
(414)
|
nm
|
|||
|
Adjusted profit before tax by geographic segment
|
||||
|
UK
|
592
|
563
|
5
|
|
|
Europe
|
(434)
|
(700)
|
(38)
|
|
|
Rest of the World
|
(52)
|
(277)
|
(81)
|
|
|
Barclays Corporate
|
106
|
(414)
|
nm
|
|
- UK profit before tax up 5% largely reflecting solid income growth, including benefit from Group hedging activity, and a reduction in impairment, partially offset by an increase in costs mainly due to the non-recurrence of a prior year pension credit
|
|
- Europe loss before tax improved 38% principally due to lower impairment charges in Spain of £415m (2010: £751m)
|
|
- Rest of the World adjusted loss before tax improved 81% principally due to the non-recurrence of 2010 restructuring charges and subsequent benefits. A significant improvement in impairment charges reflected management action to reduce the risk profile of portfolios
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Barclays Wealth
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
1,295
|
1,143
|
13
|
|||
|
Impairment charges and other credit provisions
|
(31)
|
(35)
|
(11)
|
|||
|
Net operating income
|
1,264
|
1,108
|
14
|
|||
|
Operating expenses
|
(1,109)
|
(986)
|
12
|
|||
|
Share of post tax results of associates & JVs
|
(2)
|
-
|
nm
|
|||
|
Profit before tax
|
153
|
122
|
25
|
|||
|
Adjusted profit before tax
|
153
|
122
|
25
|
|||
|
- Strong income growth of 13% was driven by the High Net Worth businesses
|
|
- Operating expenses increased 12% due to uplift in investment spend and related restructuring costs as well as staff and infrastructure costs from growth in the High Net Worth businesses
|
|
Nine Months Ended
|
Nine Months Ended
|
|||||
|
Investment Management
|
30.09.11
|
30.09.10
|
||||
|
£m
|
£m
|
% Change
|
||||
|
Total income net of insurance claims
|
31
|
58
|
(47)
|
|||
|
Impairment of investment in BlackRock, Inc.
|
(1,800)
|
-
|
nm
|
|||
|
Net operating income
|
(1,769)
|
58
|
nm
|
|||
|
Operating expenses
|
(9)
|
(3)
|
nm
|
|||
|
(Loss)/profit before tax
|
(1,778)
|
55
|
nm
|
|||
|
Adjusted profit before tax
|
80
|
55
|
45
|
|||
|
- Adjusted profit before tax of £80m (2010: £55m), principally reflected dividend income from the Group's available for sale holding in BlackRock, Inc. which represents a 19.7% interest
|
|
- The loss before tax of £1,778m (2010: profit of £55m) resulted from an assessment for accounting purposes that there was objective evidence that the Group's investment in BlackRock, Inc. was impaired. For regulatory capital purposes, the reduction in fair value of £1,800m has already been recognised in the Group's Core Tier 1 capital
|
|
- The impairment reflects the recycling through the income statement of the cumulative reduction in market value previously recognised in equity, since the Group's acquisition of its holding in BlackRock, Inc. as part of the sale of Barclays Global Investors on 1 December 2009. The fair value of the holding as at 30 September 2011 was £3.6bn
|
|
Nine Months Ended
|
Nine Months Ended
|
||
|
Head Office and Other Operations
|
30.09.11
|
30.09.10
|
|
|
£m
|
£m
|
% Change
|
|
|
Loss before tax
|
(635)
|
(522)
|
22
|
|
Adjusted loss before tax
|
(635)
|
(523)
|
21
|
|
- Loss before tax increased 22% largely due to a currency translation gain of £270m in 2010 relating to the repatriation of capital from overseas operations, partially offset by the non-recurrence of 2010 costs of £194m relating to compliance with US economic sanctions
|
|
- In accordance with International Financial Reporting Standards, the impact of the UK bank levy, for which legislation was enacted in July 2011, has not been reflected in these results. The total cost for 2011 is expected to be in the range of £330m-£380m
|
|
- Credit impairment charges and other provisions fell 34% to £2,851m
|
|
- Charges were lower across all RBB businesses, most notably in Barclaycard and unsecured personal loans and overdrafts in UK RBB, mainly due to lower delinquency rates, reflecting a general improvement in asset quality, the
low interest rate environment and broadly flat unemployment rates in the UK and US in the year to date |
|
- The £3m charge in Barclays Capital resulted principally from charges relating to leveraged finance exposures, offset by a release of £223m against the loan to Protium in the first half of 2011
|
|
- Charges were lower in Barclays Corporate, notably in Spain and UK, although charges were higher in Portugal where credit conditions remained weak
|
|
- The annualised loan loss rate reduced to 74bps (2010: 110bps) and is unchanged from 30 June 2011, as the higher impairment charge on loans and advances in the third quarter was offset by a 2% increase in loans and advances
|
|
- Delinquency trends were stable or improving in the majority of retail portfolios with the exception of certain European portfolios, which have experienced some deterioration in the past few months
|
|
- The Group's credit risk loans (CRL) coverage ratio remained broadly stable in the third quarter as both CRL balances and impairment allowances fell modestly
|
|
- Barclays liquidity pool increased to £166bn as at 30 September 2011 (30 June 2011: £145bn) and moved within a month end range of £145bn to £166bn during Q3. The increase was largely as a result of increased deposit-taking through the third quarter. The pool represents more than a year of wholesale maturities and includes £152bn FSA eligible assets1
|
|
Liquidity Pool
|
Cash and Deposits
With Central Banks
|
Government
Guaranteed Bonds
|
Government and
Supranational Bonds
|
Other Available
Liquidity
|
Total
|
|
£bn
|
£bn
|
£bn
|
£bn
|
£bn
|
|
|
As at 30.09.112
|
100
|
1
|
53
|
12
|
166
|
|
As at 30.06.11
|
85
|
1
|
48
|
11
|
145
|
|
- As at 30 September 2011, the Group has £146bn of wholesale debt maturing in less than one year. This includes £38bn of term funding, of which £16bn matures during Q4 2011
|
|
- Term funding raised over the first nine months of 2011 was £24bn, compared to full year term funding maturities of £25bn. In the third quarter, the Group raised £3bn term debt via Barclays Capital's private placement MTN programmes and £3bn in publicly issued covered bonds and credit card securitisations
|
|
- Funding continues to be raised at attractive rates and, as a result of the current funding position, the Group can be selective in accessing public term funding markets
|
|
- Retail and Business Banking (excluding Absa), Barclays Corporate and Barclays Wealth activities are largely funded with customer deposits. The funding gap for these businesses is met using asset backed securities and covered bonds, secured primarily over customer loans and advances such as residential mortgages and credit card receivables. The loan to deposit ratio for these businesses is 109% and the ratio of loans to deposits and secured funding is 99%
|
|
- Barclays Capital is primarily funded through wholesale markets. The Group maintains access to a variety of sources of wholesale funds, including unsecured money markets, repo markets and term investors, across a variety of distribution channels and geographies. The Group wholesale funding profile, including tenor and concentration risks, is managed under the Group Liquidity Risk Framework, which is subject to FSA supervision, to ensure sufficient liquidity is held to cover potential cash outflows in a stressed environment
|
|
1 High quality unencumbered assets that meet the requirements of the FSA liquidity regime, primarily comprising deposits with central banks and Government bonds
|
|
2 Over 95% of central bank deposits are placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank. 80% of Government and supranational bonds are comprised of UK, US, Japanese, French, German and Dutch securities
|
|
- The Group continues to closely monitor its exposure to Eurozone countries. Detailed information on the Group's balance sheet positions in Spain, Italy, Portugal, Ireland and Greece as at 30 September 2011 is set out on pages 14-16
|
|
- During Q3 the Group's sovereign exposure to these countries reduced by 31% to £8.0bn
|
|
- Spanish sovereign exposure reduced 43% to £2.7bn due to the sale of available for sale government bonds held for interest rate hedging purposes that have been replaced by interest rate swaps with alternative counterparties
|
|
- Italian sovereign exposures reduced 24% to £4.1bn as government bond positions were closed out
|
|
- Portuguese sovereign exposure reduced 17% to £805m with a reduction in client activity
|
|
- Exposure to Ireland remained broadly flat in Q3, principally comprising exposures to financial institutions of £4.4bn (30 June 2011: £4.5bn), including £1.3bn of trading assets and £1.1bn of loans to entities domiciled in Ireland whose principal business and exposures are outside of Ireland. Exposures to domestic Irish banks remained below £250m
|
|
- Exposure to Greece remained minimal, including sovereign exposures of £23m
|
|
- It is our policy to declare and pay dividends on a quarterly basis. We will pay a third interim cash dividend for 2011 of 1p per share on 9 December 2011, giving a declared dividend for the year to date of 3p per share
|
|
- Capital markets remained difficult in October but have shown some improvement since the announcement by Eurozone leaders last week. Our retail, corporate and wealth businesses have performed broadly in line with their underlying run rates for the first nine months of the year
|
|
Results Timetable
|
Date
|
|
Ex-dividend date
|
9 November 2011
|
|
Dividend Record date
|
11 November 2011
|
|
Dividend Payment date
|
9 December 2011
|
|
2011 Full Year Results Announcement
|
15 February 2012
|
|
Q1 2012 Interim Management Statement
|
26 April 2012
|
|
Investor Relations
|
Media Relations
|
|
Charlie Rozes +44 (0) 20 7116 7599
|
Giles Croot +44 (0) 20 7116 6132
|
|
- Unless otherwise stated, the income statement analyses compare the nine months to 30 September 2011to the corresponding period in 2010. Balance sheet comparisons, unless otherwise stated, relate to the corresponding position as at 30 June 2011
|
|
- Adjusted profit before tax and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. These measures exclude: the impact of own credit; the impairment of the investment in BlackRock, Inc.; the provision for PPI redress; and gains and losses on acquisitions and disposals of subsidiaries, associates, joint ventures and strategic investments
|
|
- The financial information on which this Interim Management Statement is based, and other data set out in the appendices to this statement, are unaudited and have been prepared in accordance with Barclays previously stated accounting policies described in the 2010 Annual Report. A glossary of terms is also set out in the 2010 Annual Report
|
|
- For qualifying US and Canadian resident ADR holders, the interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will mail the interim dividend on 9 December 2011 to ADR holders on the record on 11 November 2011
|
|
UK RBB
|
Q311
|
Q211
|
Q111
|
Q410
|
Q310
|
Q210
|
Q110
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Total income net of insurance claims
|
1,273
|
1,170
|
1,084
|
1,186
|
1,161
|
1,087
|
1,084
|
|
|
Impairment charges and other credit provisions
|
(105)
|
(131)
|
(144)
|
(170)
|
(202)
|
(222)
|
(225)
|
|
|
Net operating income
|
1,168
|
1,039
|
940
|
1,016
|
959
|
865
|
859
|
|
|
Operating expenses (excluding provision for PPI redress)
|
(675)
|
(622)
|
(653)
|
(762)
|
(725)
|
(628)
|
(694)
|
|
|
Provision for PPI redress1
|
-
|
(400)
|
-
|
-
|
-
|
-
|
-
|
|
|
Total operating expenses
|
(675)
|
(1,022)
|
(653)
|
(762)
|
(725)
|
(628)
|
(694)
|
|
|
Share of post tax results of associates & JVs
|
1
|
(1)
|
1
|
1
|
(4)
|
-
|
2
|
|
|
Gains on acquisitions and disposals1
|
-
|
-
|
-
|
-
|
-
|
29
|
71
|
|
|
Profit before tax
|
494
|
16
|
288
|
255
|
230
|
266
|
238
|
|
|
Adjusted profit before tax
|
494
|
416
|
288
|
255
|
230
|
237
|
167
|
|
|
Europe RBB
|
||||||||
|
Total income net of insurance claims
|
375
|
309
|
295
|
263
|
299
|
297
|
305
|
|
|
Impairment charges and other credit provisions
|
(62)
|
(47)
|
(69)
|
(89)
|
(92)
|
(62)
|
(71)
|
|
|
Net operating income
|
313
|
262
|
226
|
174
|
207
|
235
|
234
|
|
|
Operating expenses
|
(263)
|
(368)
|
(289)
|
(283)
|
(255)
|
(246)
|
(249)
|
|
|
Share of post tax results of associates & JVs
|
2
|
4
|
4
|
4
|
4
|
4
|
3
|
|
|
Gains on acquisitions and disposals1
|
-
|
-
|
-
|
-
|
-
|
-
|
29
|
|
|
Profit/(loss) before tax
|
52
|
(102)
|
(59)
|
(105)
|
(44)
|
(7)
|
17
|
|
|
Adjusted profit/(loss) before tax
|
52
|
(102)
|
(59)
|
(105)
|
(44)
|
(7)
|
(12)
|
|
|
Africa RBB
|
||||||||
|
Total income net of insurance claims
|
994
|
955
|
912
|
983
|
935
|
900
|
882
|
|
|
Impairment charges and other credit provisions
|
(109)
|
(126)
|
(142)
|
(137)
|
(95)
|
(164)
|
(166)
|
|
|
Net operating income
|
885
|
829
|
770
|
846
|
840
|
736
|
716
|
|
|
Operating expenses
|
(642)
|
(618)
|
(605)
|
(678)
|
(671)
|
(549)
|
(520)
|
|
|
Share of post tax results of associates & JVs
|
-
|
1
|
2
|
5
|
(3)
|
-
|
1
|
|
|
Gains on acquisitions and disposals1
|
2
|
-
|
-
|
77
|
-
|
4
|
-
|
|
|
Profit before tax
|
245
|
212
|
167
|
250
|
166
|
191
|
197
|
|
|
Adjusted profit before tax
|
243
|
212
|
167
|
173
|
166
|
187
|
197
|
|
|
Barclaycard
|
||||||||
|
Total income net of insurance claims
|
1,140
|
1,012
|
960
|
1,036
|
1,030
|
981
|
977
|
|
|
Impairment charges and other credit provisions
|
(340)
|
(344)
|
(304)
|
(393)
|
(405)
|
(425)
|
(465)
|
|
|
Net operating income
|
800
|
668
|
656
|
643
|
625
|
556
|
512
|
|
|
Operating expenses (excluding provision for PPI redress)
|
(430)
|
(447)
|
(371)
|
(420)
|
(386)
|
(364)
|
(400)
|
|
|
Provision for PPI redress1
|
-
|
(600)
|
-
|
-
|
-
|
-
|
-
|
|
|
Total operating expenses
|
(430)
|
(1,047)
|
(371)
|
(420)
|
(386)
|
(364)
|
(400)
|
|
|
Share of post tax results of associates & JVs
|
8
|
7
|
11
|
7
|
5
|
7
|
6
|
|
|
Profit/(loss) before tax
|
378
|
(372)
|
296
|
230
|
244
|
199
|
118
|
|
|
Adjusted profit before tax
|
378
|
228
|
296
|
230
|
244
|
199
|
118
|
|
|
1 Excluded for adjusted profit before tax and adjusted performance metrics
|
||||||||
|
Barclays Capital
|
Q311
|
Q211
|
Q111
|
Q410
|
Q310
|
Q210
|
Q110
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Fixed Income, Currency and Commodities
|
1,438
|
1,715
|
2,201
|
2,031
|
1,773
|
2,138
|
2,745
|
|
|
Equities and Prime Services
|
338
|
563
|
545
|
625
|
359
|
563
|
493
|
|
|
Investment Banking
|
389
|
520
|
612
|
725
|
501
|
461
|
556
|
|
|
Principal Investments
|
89
|
99
|
8
|
115
|
19
|
4
|
101
|
|
|
Total income (excluding own credit)
|
2,254
|
2,897
|
3,366
|
3,496
|
2,652
|
3,166
|
3,895
|
|
|
Own credit gain/(charge)1
|
2,882
|
440
|
(351)
|
487
|
(947)
|
953
|
(102)
|
|
|
Total income
|
5,136
|
3,337
|
3,015
|
3,983
|
1,705
|
4,119
|
3,793
|
|
|
Impairment charges and other credit provisions
|
(114)
|
80
|
31
|
(222)
|
(12)
|
(41)
|
(268)
|
|
|
Net operating income
|
5,022
|
3,417
|
3,046
|
3,761
|
1,693
|
4,078
|
3,525
|
|
|
Operating expenses
|
(1,758)
|
(2,006)
|
(2,067)
|
(2,201)
|
(1,881)
|
(2,154)
|
(2,059)
|
|
|
Share of post tax results of associates and JVs
|
6
|
6
|
3
|
2
|
6
|
7
|
3
|
|
|
Profit/(loss) before tax
|
3,270
|
1,417
|
982
|
1,562
|
(182)
|
1,931
|
1,469
|
|
|
Adjusted profit before tax
|
388
|
977
|
1,333
|
1,075
|
765
|
978
|
1,571
|
|
|
Barclays Corporate
|
||||||||
|
Total income net of insurance claims
|
776
|
768
|
703
|
807
|
766
|
683
|
718
|
|
|
Impairment charges and other credit provisions
|
(282)
|
(327)
|
(287)
|
(342)
|
(405)
|
(642)
|
(307)
|
|
|
Net operating income
|
494
|
441
|
416
|
465
|
361
|
41
|
411
|
|
|
Operating expenses
|
(407)
|
(427)
|
(412)
|
(680)
|
(398)
|
(343)
|
(486)
|
|
|
Share of post tax results of associates & JVs
|
2
|
2
|
(3)
|
(2)
|
-
|
-
|
-
|
|
|
Losses on disposal1
|
-
|
(64)
|
-
|
-
|
-
|
-
|
-
|
|
|
Profit/(loss) before tax
|
89
|
(48)
|
1
|
(217)
|
(37)
|
(302)
|
(75)
|
|
|
Adjusted profit/(loss) before tax
|
89
|
16
|
1
|
(217)
|
(37)
|
(302)
|
(75)
|
|
|
Barclays Wealth
|
||||||||
|
Total income net of insurance claims
|
447
|
426
|
422
|
417
|
386
|
387
|
370
|
|
|
Impairment charges and other credit provisions
|
(12)
|
(9)
|
(10)
|
(13)
|
(8)
|
(17)
|
(10)
|
|
|
Net operating income
|
435
|
417
|
412
|
404
|
378
|
370
|
360
|
|
|
Operating expenses
|
(369)
|
(375)
|
(365)
|
(363)
|
(351)
|
(320)
|
(315)
|
|
|
Share of post tax results of associates & JVs
|
(1)
|
-
|
(1)
|
-
|
-
|
-
|
-
|
|
|
Profit before tax
|
65
|
42
|
46
|
41
|
27
|
50
|
45
|
|
|
Adjusted profit before tax
|
65
|
42
|
46
|
41
|
27
|
50
|
45
|
|
|
Investment Management
|
||||||||
|
Total income net of insurance claims2
|
32
|
(25)
|
24
|
20
|
24
|
5
|
29
|
|
|
Impairment of investment in BlackRock, Inc.1
|
(1,800)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Net operating income
|
(1,768)
|
(25)
|
24
|
20
|
24
|
5
|
29
|
|
|
Operating expenses
|
(3)
|
(6)
|
-
|
(8)
|
-
|
(3)
|
-
|
|
|
(Loss)/profit before tax
|
(1,771)
|
(31)
|
24
|
12
|
24
|
2
|
29
|
|
|
Adjusted profit before tax
|
29
|
27
|
24
|
12
|
24
|
2
|
29
|
|
|
Head Office Functions and Other Operations
|
||||||||
|
Loss before tax
|
(400)
|
(145)
|
(90)
|
(237)
|
(101)
|
(203)
|
(218)
|
|
|
Adjusted loss before tax
|
(401)
|
(142)
|
(92)
|
(236)
|
(102)
|
(203)
|
(218)
|
|
1 Excluded for adjusted profit before tax and adjusted performance metrics
2 Q2 2011 includes a £58m loss on disposal of a portion of the Group's strategic investment in BlackRock, Inc. recycled through investment income that is excluded for adjusted profit before tax and adjusted performance metrics
|
||||||
|
Q311 IMS Appendix II - Risk Management
Analysis of Loans and Advances to Customers and Banks
|
||||||
|
As at 30.09.11
|
Gross
L&A
|
Impairment
Allowance |
L&A Net of
Impairment |
Impairment
Charges1 |
Loan Loss
Rates2 |
|
|
£m
|
£m
|
£m
|
£m
|
bps
|
||
|
Wholesale - customers
|
223,780
|
5,261
|
218,519
|
1,020
|
61
|
|
|
Wholesale - banks
|
58,899
|
45
|
58,854
|
(7)
|
(2)
|
|
|
Total wholesale
|
282,679
|
5,306
|
277,373
|
1,013
|
48
|
|
|
Total retail
|
238,823
|
5,997
|
232,826
|
1,858
|
104
|
|
|
Loans and advances at amortised cost
|
521,502
|
11,303
|
510,199
|
2,871
|
74
|
|
|
Loans and advances held at fair value
|
24,147
|
na
|
24,147
|
|||
|
Total loans and advances
|
545,649
|
11,303
|
534,346
|
|||
|
As at 30.06.11
|
||||||
|
Wholesale - customers
|
212,523
|
5,132
|
207,391
|
621
|
59
|
|
|
Wholesale - banks
|
58,799
|
48
|
58,751
|
(4)
|
(1)
|
|
|
Total wholesale
|
271,322
|
5,180
|
266,142
|
617
|
46
|
|
|
Total retail
|
241,033
|
6,441
|
234,592
|
1,257
|
105
|
|
|
Loans and advances at amortised cost
|
512,355
|
11,621
|
500,734
|
1,874
|
74
|
|
|
Loans and advances held at fair value
|
23,779
|
na
|
23,779
|
|||
|
Total loans and advances
|
536,134
|
11,621
|
524,513
|
|||
|
1 The impairment charge provided above relates to the nine months ended 30 September 2011 and six months ended 30 June 2011
2 Loan loss rates have been calculated on an annualised basis
|
||||||
|
- The following tables are prepared on the same basis as the 2011 Interim Results Announcement and present the maximum direct balance sheet exposure to credit risk by country, with the totals reflecting allowance for impairment, netting and cash collateral held where appropriate
|
|
- Trading and derivatives balances relate to investment banking activities, principally as market maker for government bond positions. Positions are held at fair value, with daily movements taken through profit and loss
|
|
- Available for sale assets are principally investments in government bonds and other debt securities held for the purposes of interest rate hedging and liquidity for local banking activities. Balances are reported on a fair value basis, with movements in fair value going through equity
|
|
- Loans and advances held at amortised cost, comprising: retail lending portfolios, predominantly mortgages secured on residential property; and corporate lending portfolios largely reflecting established corporate banking businesses in Spain, Italy and Portugal and investment banking services provided to multinational and large national corporate clients
|
|
- Sovereign exposures reflect direct exposures to central and local government, the majority of which are used for hedging interest rate risk relating to local activities. These positions are being actively replaced by non-government instruments such as interest rate swaps. The remaining portion is actively managed reflecting our role as leading primary dealer, market maker and liquidity provider to our clients
|
|
- Financial institution and corporate exposuresreflect the country of operations of the immediate counterparty (including foreign subsidiaries and without reference to cross-border guarantees)
|
|
- Retail exposures reflect the country of residence of retail customers
|
|
- The Group enters into credit mitigation arrangements for risk management purposes (principally credit default swaps and total return swaps) for which the reference asset is government debt. These have the net effect of reducing the Group's exposure to these Eurozone countries. Only credit mitigation arrangements with counterparties in these countries are reflected in the analysis below. Credit mitigation arrangements with counterparties outside of these countries, for which the reference asset is Eurozone government debt, are not included in the analysis below
|
|
Spain
|
||||||||||||
|
Trading Portfolio
|
Derivatives
|
Designated
as Fair Value Through P&L |
||||||||||
|
Fair Value through Profit and Loss
|
Trading Portfolio Assets
|
Trading
Portfolio Liabilities |
Net
Trading Portfolio
|
Gross
Assets |
Gross
Liabilities |
Cash
Collateral |
Net
Derivatives |
Total
as at
30.09.11
|
Total
as at
30.06.11
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Sovereign
|
1,036
|
(850)
|
186
|
101
|
(101)
|
-
|
-
|
-
|
186
|
48
|
||
|
Financial institutions
|
428
|
(247)
|
181
|
9,020
|
(8,994)
|
(26)
|
-
|
-
|
181
|
343
|
||
|
Corporate
|
118
|
(99)
|
19
|
597
|
(289)
|
(2)
|
306
|
86
|
411
|
340
|
||
|
Fair Value through Equity
|
Available for Sale Assets as at 30.09.11
|
Total
as at
|
||||||||||
|
Cost
|
AFS Reserve
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
2,454
|
12
|
2,466
|
4,713
|
||||||||
|
Financial institutions
|
593
|
(17)
|
576
|
558
|
||||||||
|
Corporate
|
16
|
(1)
|
15
|
25
|
||||||||
|
Held at Amortised Cost
|
Loans and Advances as at 30.09.11
|
Total
as at
|
||||||||||
|
Gross
|
Impairment
Allowances |
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
65
|
(1)
|
64
|
39
|
||||||||
|
Financial institutions
|
322
|
(8)
|
314
|
370
|
||||||||
|
Residential mortgages
|
15,305
|
(95)
|
15,210
|
16,503
|
||||||||
|
Corporate
|
6,434
|
(1,348)
|
5,086
|
5,281
|
||||||||
|
Other retail lending
|
3,405
|
(162)
|
3,243
|
3,170
|
||||||||
|
Italy
|
||||||||||||
|
Trading Portfolio
|
Derivatives
|
Designated
as Fair Value Through P&L |
||||||||||
|
Fair Value through Profit and Loss
|
Trading Portfolio Assets
|
Trading
Portfolio Liabilities |
Net
Trading Portfolio
|
Gross
Assets |
Gross
Liabilities |
Cash
Collateral |
Net
Derivatives |
Total
as at
30.09.11
|
Total
as at
30.06.11
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Sovereign
|
3,606
|
(2,621)
|
985
|
1,373
|
(605)
|
(100)
|
668
|
1
|
1,654
|
2,757
|
||
|
Financial institutions
|
491
|
(81)
|
410
|
7,153
|
(5,724)
|
(1,147)
|
282
|
-
|
692
|
673
|
||
|
Corporate
|
121
|
(79)
|
42
|
485
|
(306)
|
(93)
|
86
|
-
|
128
|
112
|
||
|
Fair Value through Equity
|
Available for Sale Assets as at 30.09.11
|
Total
as at
|
||||||||||
|
Cost
|
AFS Reserve
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
2,399
|
64
|
2,463
|
2,686
|
||||||||
|
Financial institutions
|
194
|
2
|
196
|
153
|
||||||||
|
Corporate
|
26
|
(1)
|
25
|
17
|
||||||||
|
Held at Amortised Cost
|
Loans and Advances as at 30.09.11
|
Total
as at
|
||||||||||
|
Gross
|
Impairment Allowances
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
17
|
-
|
17
|
-
|
||||||||
|
Financial institutions
|
73
|
(12)
|
61
|
14
|
||||||||
|
Residential mortgages
|
15,561
|
(84)
|
15,477
|
15,486
|
||||||||
|
Corporate
|
2,675
|
(162)
|
2,513
|
2,714
|
||||||||
|
Other retail lending
|
2,608
|
(178)
|
2,430
|
2,473
|
||||||||
|
Portugal
|
||||||||||||
|
Trading Portfolio
|
Derivatives
|
Designated
as Fair Value Through P&L |
||||||||||
|
Fair Value through Profit and Loss
|
Trading Portfolio Assets
|
Trading
Portfolio Liabilities |
Net
Trading Portfolio
|
Gross Assets
|
Gross
Liabilities |
Cash
Collateral |
Net
Derivatives |
Total
as at
30.09.11
|
Total
as at
30.06.11
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Sovereign
|
144
|
(107)
|
37
|
429
|
(429)
|
-
|
-
|
3
|
40
|
152
|
||
|
Financial institutions
|
49
|
(15)
|
34
|
333
|
(333)
|
-
|
-
|
-
|
34
|
30
|
||
|
Corporate
|
1
|
(1)
|
-
|
215
|
(84)
|
-
|
131
|
-
|
131
|
110
|
||
|
Fair Value through Equity
|
Available for Sale Assets as at 30.09.11
|
Total
as at
|
||||||||||
|
Cost
|
AFS Reserve
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
893
|
(155)
|
738
|
792
|
||||||||
|
Financial institutions
|
2
|
-
|
2
|
3
|
||||||||
|
Corporate
|
879
|
(6)
|
873
|
1,033
|
||||||||
|
Held at Amortised Cost
|
Loans and Advances as at 30.09.11
|
Total
as at
|
||||||||||
|
Gross
|
Impairment Allowances
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
27
|
-
|
27
|
26
|
||||||||
|
Financial institutions
|
18
|
-
|
18
|
45
|
||||||||
|
Residential mortgages
|
3,704
|
(13)
|
3,691
|
3,828
|
||||||||
|
Corporate
|
2,747
|
(175)
|
2,572
|
2,721
|
||||||||
|
Other retail lending
|
2,264
|
(200)
|
2,064
|
2,143
|
||||||||
|
Ireland
|
||||||||||||
|
Trading Portfolio
|
Derivatives
|
Designated
as Fair Value Through P&L |
||||||||||
|
Fair Value through Profit and Loss
|
Trading Portfolio Assets
|
Trading
Portfolio Liabilities |
Net
Trading Portfolio
|
Gross
Assets |
Gross
Liabilities |
Cash
Collateral |
Net
Derivatives |
Total
as at
30.09.11
|
Total
as at
30.06.11
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Sovereign
|
133
|
(133)
|
-
|
491
|
(108)
|
(372)
|
11
|
1
|
12
|
148
|
||
|
Financial institutions
|
1,788
|
(52)
|
1,736
|
5,979
|
(5,366)
|
(613)
|
-
|
49
|
1,785
|
1,591
|
||
|
Corporate
|
78
|
(17)
|
61
|
643
|
(643)
|
-
|
-
|
9
|
70
|
243
|
||
|
Fair Value through Equity
|
Available for Sale Assets as at 30.09.11
|
Total
as at
|
||||||||||
|
Cost
|
AFS Reserve
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
214
|
7
|
221
|
183
|
||||||||
|
Financial institutions
|
244
|
14
|
258
|
253
|
||||||||
|
Corporate
|
5
|
-
|
5
|
15
|
||||||||
|
Held at Amortised Cost
|
Loans and Advances as at 30.09.11
|
Total
as at
|
||||||||||
|
Gross
|
Impairment Allowances
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
120
|
-
|
120
|
-
|
||||||||
|
Financial institutions
|
2,471
|
(148)
|
2,323
|
2,622
|
||||||||
|
Residential mortgages
|
114
|
(1)
|
113
|
87
|
||||||||
|
Corporate
|
991
|
(21)
|
970
|
1,056
|
||||||||
|
Other retail lending
|
293
|
(3)
|
290
|
296
|
||||||||
|
Greece
|
||||||||||||
|
Trading Portfolio
|
Derivatives
|
Designated
as Fair Value Through P&L |
||||||||||
|
Fair Value through Profit and Loss
|
Trading Portfolio Assets
|
Trading
Portfolio Liabilities |
Net
Trading Portfolio
|
Gross
Assets |
Gross
Liabilities |
Cash
Collateral |
Net
Derivatives |
Total
as at
30.09.11
|
Total
as at
30.06.11
|
|||
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|||
|
Sovereign
|
14
|
(2)
|
12
|
7
|
(3)
|
(3)
|
1
|
-
|
13
|
55
|
||
|
Financial institutions
|
2
|
-
|
2
|
1,097
|
(266)
|
(731)
|
100
|
-
|
102
|
93
|
||
|
Corporate
|
4
|
-
|
4
|
1
|
-
|
-
|
1
|
-
|
5
|
18
|
||
|
Fair Value through Equity
|
Available for Sale Assets as at 30.09.11
|
Total
as at
|
||||||||||
|
Cost
|
AFS Reserve
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Sovereign
|
10
|
-
|
10
|
14
|
||||||||
|
Held at Amortised Cost
|
Loans and Advances as at 30.09.11
|
Total
as at
|
||||||||||
|
Gross
|
Impairment Allowances
|
Total
|
30.06.11
|
|||||||||
|
£m
|
£m
|
£m
|
£m
|
|||||||||
|
Residential mortgages
|
4
|
-
|
4
|
6
|
||||||||
|
Corporate
|
64
|
-
|
64
|
139
|
||||||||
|
Other retail lending
|
31
|
(10)
|
21
|
22
|
||||||||
|
Nine Months Ended 30.09.11
|
||||||||||
|
Credit market exposures1
|
As at
30.09.11 |
As at
30.06.11 |
As at
31.12.10 |
As at
30.09.11 |
As at
30.06.11 |
As at
31.12.10 |
Fair Value
(Losses)/ Gains and Net Funding |
Impairment
(Charge)/ Release |
Total
(Losses)/ Gains |
|
|
$m
|
$m
|
$m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
Protium assets2
|
4,844
|
5,411
|
10,884
|
3,109
|
3,374
|
7,028
|
(507)
|
223
|
(284)
|
|
|
US Residential Mortgages
|
||||||||||
|
ABS CDO Super Senior
|
2,918
|
2,949
|
3,085
|
1,873
|
1,839
|
1,992
|
(28)
|
7
|
(21)
|
|
|
US sub-prime and Alt-A
|
706
|
775
|
1,025
|
453
|
483
|
662
|
(4)
|
41
|
37
|
|
|
Commercial Mortgages
|
||||||||||
|
Commercial real estate loans and properties
|
8,780
|
10,390
|
11,006
|
5,635
|
6,479
|
7,106
|
432
|
-
|
432
|
|
|
Commercial Mortgaged Backed Securities
|
95
|
96
|
184
|
61
|
60
|
119
|
-
|
-
|
-
|
|
|
Monoline protection on CMBS
|
9
|
10
|
18
|
6
|
6
|
12
|
33
|
-
|
33
|
|
|
Other Credit Market
|
||||||||||
|
Leveraged Finance3
|
6,560
|
7,019
|
7,636
|
4,210
|
4,377
|
4,930
|
44
|
(138)
|
(94)
|
|
|
SIVs, SIV -Lites and CDPCs
|
14
|
8
|
618
|
9
|
5
|
399
|
(15)
|
-
|
(15)
|
|
|
Monoline protection on CLO and other
|
1,904
|
2,000
|
2,541
|
1,222
|
1,247
|
1,641
|
30
|
-
|
30
|
|
|
Total
|
25,830
|
28,658
|
36,997
|
16,578
|
17,870
|
23,889
|
(15)
|
133
|
118
|
|
|
- Barclays Capital's credit market exposures primarily relate to commercial real estate, leveraged finance, and collateral previously underlying the loan to Protium. These exposures arose before the market dislocation in mid-2007
|
|
- During 2011, credit market exposures decreased by £7,311m to £16,578m, reflecting net sales and paydowns and other movements of £7,197m and foreign exchange rate movements of £232m, partially offset by fair value losses and impairment releases of £118m. The net sales, paydowns and other movements of £7,197m included:
|
|
- £3,412m relating to assets formerly held as collateral for the loan to Protium Finance LLP, comprising £1,938m net sales, £959m loan and interest repayments and £515m paydowns and other movements. Of these proceeds £459m
was invested in Helix, an existing fund managed by an independent asset management firm |
|
- £1,855m of commercial real estate loans and properties sales, including £318m ($529m) to Crexus Investment Corp
|
|
1 As the majority of exposure is held in US Dollars, the exposures above are shown in both US Dollars and Sterling
|
|
2 Prior to 27 April 2011 when Protium was consolidated by the Group the exposure was a loan. This was carried at the amount equivalent to the fair value of the underlying collateral from 31 December 2010
|
|
3 Includes undrawn commitments of £198m (30 June 2011: £241m, 31 December 2010: £264m)
|
|
Acquisition
Date |
Acquisition
Date
|
||||||||||
|
As at
30.09.11
|
As at
30.06.11
|
As at
27.04.11
|
As at
31.12.10
|
As at
16.09.09
|
As at
30.09.11
|
As at
30.06.11
|
As at
27.04.11
|
As at
31.12.10
|
As at
16.09.09
|
||
|
$m
|
$m
|
$m
|
$m
|
$m
|
£m
|
£m
|
£m
|
£m
|
£m
|
||
|
US sub-prime and Alt-A
|
1,590
|
2,142
|
4,406
|
4,402
|
4,477
|
1,020
|
1,335
|
2,665
|
2,710
|
2,716
|
|
|
Commercial mortgage-backed securities
|
2,244
|
2,400
|
3,092
|
3,257
|
1,897
|
1,440
|
1,497
|
1,870
|
2,103
|
1,151
|
|
|
Monoline protection
|
-
|
-
|
-
|
225
|
4,562
|
-
|
-
|
-
|
145
|
2,768
|
|
|
CLO and other assets
|
1,010
|
869
|
1,952
|
1,636
|
1,349
|
649
|
542
|
1,181
|
1,189
|
818
|
|
|
Total collateral
|
4,844
|
5,411
|
9,450
|
9,520
|
12,285
|
3,109
|
3,374
|
5,716
|
6,147
|
7,453
|
|
|
Cash and cash equivalents
|
na
|
na
|
231
|
1,364
|
250
|
na
|
na
|
140
|
881
|
152
|
|
|
Total assets
|
4,844
|
5,411
|
9,681
|
10,884
|
12,535
|
3,109
|
3,374
|
5,856
|
7,028
|
7,605
|
|
- On 16 September 2009, Barclays Capital sold assets of $12,285m, including $8,384m in credit market assets, to Protium. As part of the transaction, Barclays extended a $12,641m 10 year loan to Protium
|
|
- In April 2011, Barclays entered into several agreements to acquire all third party interests in Protium in order to help facilitate the Group's early exit from the underlying exposures. As a result, Protium was then consolidated by the Group. Subsequently, Protium sold its assets to Barclays entities and the loan has been repaid
|
|
- As part of this transaction, $750m was invested in Helix. The investment represented 86% of the Helix fund, which has been consolidated by the Group. The fund's investments primarily comprise government and agency securities and, as such, Helix does not represent a credit market exposure. As at 30 September 2011, the fair value of Barclays investment in the fund was $737m
|