Exhibit 99.1

Barclays PLC

This document includes portions from the previously published Results Announcement of Barclays PLC relating to the six months ended 30 June 2016, as amended in part to comply with the requirements of Regulation G and Item 10(e) of Regulation S-K promulgated by the US Securities and Exchange Commission (SEC), including the reconciliation of certain financial information to comparable measures prepared in accordance with International Financial Reporting Standards (IFRS). The purpose of this document is to provide such additional disclosure as required by Regulation G and Regulation S-K item 10(e), to delete certain information not in compliance with SEC regulations and to include reconciliations of certain non IFRS figures to the most directly equivalent IFRS figures for the periods presented. This document does not update or otherwise supplement the information contained in the previously published Results Announcement. Any reference to a website in this document is made for informational purposes only, and information found at such websites is not incorporated by reference into this document.

An audit opinion has not been rendered in respect of this document.

    

Table of Contents

Results Announcement	Page
Performance Highlights		3 – 5
Group Performance Review		6 – 9
Results by Business
●     Barclays UK		10 – 12
●     Barclays Corporate & International		13 – 16
●     Head Office		17
●     Barclays Non-Core		18 – 19
●     Africa Banking – Discontinued Operation		20
Quarterly Results Summary		21 – 23
Quarterly Core Results by Business		24 – 27
Quarterly Africa Banking – Discontinued Operation Results		28
Performance Management
●     Margins and balances		29
Risk Management
●     Overview		30
●     Funding Risk – Liquidity		31 – 35
●     Funding Risk – Capital		36 – 41
●     Credit Risk		42 – 50
●     Market Risk		51 – 53
Statement of Directors’ Responsibilities		54
Condensed Consolidated Financial Statements		55 – 60
Financial Statement Notes		61 – 97
Shareholder Information		98
Appendix 1 – Glossary

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

   Barclays PLC – 2016 Interim Results     

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 ended 30 June 2016 to the corresponding six months of 2015 and balance sheet analysis as at 30 June 2016 with comparatives relating to 31 December 2015. 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; the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.

Comparatives have been restated to reflect the implementation of the Group business reorganisation. These restatements were detailed in our Form 6-K filed with the SEC dated April 15, 2016.

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.

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 attached to this document.

The information in this document, which was approved by the Board of Directors on 28 July 2016, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the SEC and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (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 home.barclays/results and from the SEC’s website at 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.

Certain Non-IFRS Measures

Barclays PLC (Barclays) management believes that the non-International Financial Reporting Standards (non-IFRS) measures included in this document provide valuable information to readers of its financial statements because they enable the reader to identify a more consistent basis for comparing the business’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of Barclays PLC and its subsidiaries (the Group). They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays management. However, any non-IFRS measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well.

Key non-IFRS measures included in this document, and the most directly comparable IFRS measures, are:

– Barclays Core results are non-IFRS measures because they represent the sum of the Operating Segments, each of which is prepared in accordance with IFRS 8; “Operating Segments”, and following the restatement of 14 April 2016 comprise Barclays UK, Barclays Corporate & International and Head Office. A reconciliation to IFRS is provided on page 23.

– Basic earnings/(loss) per share excluding notable items. The comparable IFRS measure is basic earnings/(loss) per share, which represents profit after tax and non-controlling interests, divided by the basic weighted average number of shares in issue. The comparable IFRS measure and excluded items noted below are provided on page 21.

– Constant currency results are calculated by converting ZAR results into GBP using the average exchange rate for the six months ended 30 June 2016 for the income statement and the 30 June 2016 closing exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the two periods.

– Estimated CRD IV liquidity coverage ratio is calculated according to the Commission Delegated Regulation of October 2014 that supplements Regulation (EU) 575/2013 (CRDIV) published by the European Commission in June 2013. The metric is applicable from 1 October 2015 and as such is a binding measure as at 31 December 2015.

– Net Stable Funding Ratio (NSFR) is calculated according to the definition and methodology detailed in the standard provided by the Basel Committee on Banking Supervision. The original guidelines released in December 2010 (‘Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring’, December 2010) were revised in October 2014 (‘Basel III: The Net Stable Funding Ratio’, October 2014). The metric is a regulatory ratio that is not yet finalised in local regulations and, as such, represents a non-IFRS measure. This definition and the methodology used to calculate this metric is subject to further revisions ahead of the implementation date and our interpretation of this calculation may not be consistent with that of other financial institutions.

– Transitional CRD IV CET1 ratio according to FSA October 2012. This measure is calculated by taking into account the statement of the Financial Services Authority, the predecessor of the Prudential Regulation Authority, on CRD IV transitional provisions in October 2012, assuming such provisions were applied as at 1 January 2014. This ratio is used as the relevant measure starting 1 January 2014 for purposes of determining whether the automatic write-down trigger (specified as a Transitional CET1 ratio according to FSA October 2012 of less than 7.00%) has occurred under the terms of the Contingent Capital Notes issued by Barclays Bank PLC on 21 November 2012 (CUSIP: 06740L8C2) and 10 April 2013 (CUSIP: 06739FHK0). Please refer to page 36 for a reconciliation of this measure to fully loaded CRD IV CET1 ratio.

– Underlying cost: income ratio. The comparable IFRS measure is cost: income ratio. The comparable IFRS measure and excluded items noted below are provided on page 21.

   Barclays PLC – 2016 Interim Results 1     

– Underlying total operating expenses or total operating expenses excluding notable items. The comparable IFRS measure is total operating expenses. The comparable IFRS measure and excluded items noted below are provided on page 21.

– Underlying profit before tax or profit before tax excluding notable items. The comparable IFRS measure is profit before tax. The comparable IFRS measure and excluded items noted below are provided on page 21.

– Underlying return on average tangible shareholders’ equity. The comparable IFRS measure is return on average tangible shareholders’ equity, which represents annualised profit after tax for the period attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average shareholders’ equity excluding non-controlling interests and other equity instruments adjusted for the deduction of intangible assets and goodwill. The comparable IFRS measure and excluded items noted below are provided on page 21.

– Underlying total income. The comparable IFRS measure is total income net of insurance claims. The comparable IFRS measure and excluded items noted below are provided on page 21.

References to underlying performance exclude the impact of notable items.

Notable items which are excluded from certain of the key non-IFRS measures described above are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Notable items include: the impact of own credit in total income net of insurance claims; the gain on disposal of Barclays’ share of Visa Europe Limited in total income net of insurance claims; gains on US Lehman acquisition assets in total income net of insurance claims; revision of the Education, Social Housing, and Local Authority (ESHLA) valuation methodology in total income net of insurance claims; gain on valuation of a component of the defined retirement benefit liability in operating expenses; impairment of goodwill and other assets relating to businesses being disposed in operating expenses, provisions for UK customer redress in litigation and conduct; provisions for ongoing investigations and litigation including Foreign Exchange in litigation and conduct; and losses on sale relating to the Spanish, Portuguese and Italian businesses in other net income/(expenses).

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 or guidance regarding the Group’s future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), 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, rundown of assets and businesses within Barclays Non-Core, sell down of the Group’s interest in Barclays Africa Group Limited, 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, future levels of notable items, 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 implications of the results of the 23 June 2016 referendum in the United Kingdom and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; 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, expectations and guidance 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 2015, the “2015 Annual Report”), which are available on the SEC’s website at 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.

   Barclays PLC – 2016 Interim Results 2     

Performance Highlights

● Group profit before tax of £2,063m (H115: £2,602m) reflected an increased Core profit before tax of £3,967m (H115: £3,347m) and Non-Core losses before tax of £1,904m (H115: £745m). Excluding notable items and an impairment of £372m in respect of the French retail, and wealth and investment management businesses, Group profit before tax was £2,037m (H115: £3,217m)

● Group return on average tangible equity (RoTE) of 4.8% (H115: 6.9%) reflected attributable profit in Core of £2,444m (H115: £2,000m) and the attributable loss in Non-Core of £1,490m (H115: £582m)

● Core profit before tax increased 19% to £3,967m including a gain of £615m on the disposal of Barclays’ share of Visa Europe Limited and an additional provision of £400m relating to UK customer redress. Core RoTE was 12.5% (H115: 11.3%) on an increased average tangible equity base of £40bn (H115: £36bn). Core basic earnings per share contribution was 14.8p (H115: 12.1p)

● Non-Core loss before tax was £1,904m (H115: £745m) reflecting the continued execution of our strategy. The loss included the impairment of £372m in respect of the assets of the French retail, and wealth and investment management businesses that are held for sale

● Barclays UK delivered a RoTE of 13.6% (H115: 10.6%). Profit before tax increased 52% to £1,080m and total operating expenses decreased 11% to £2,299m, predominantly as a result of the reduced provisions for UK customer redress. Net interest margin increased 2bps to 3.59%

● Barclays UK delivered a strong underlying RoTE of 19.4% (H115: 21.9%). Underlying profit before tax decreased 4% to £1,329m driven by lower interchange fee income in Barclaycard Consumer UK and an increase in impairment

● Barclays Corporate & International delivered a RoTE of 14.3% (H115: 11.0%) and an underlying RoTE of 10.7% (H115: 12.4%). Underlying income remained in line with strong growth in Consumer, Cards and Payments and whilst income decreased in Corporate & Investment Bank (CIB), it was resilient in challenging market conditions

● Momentum in the execution of the Non-Core strategy continued with good progress on business sales and the rundown of the derivative portfolio during the period. Period end allocated tangible equity in Non-Core reduced to £8bn (December 2015: £9bn), with risk weighted assets (RWAs) decreasing by a further £8bn to £46.7bn in H116, despite adverse market movements

● Common equity tier 1 (CET1) ratio increased to 11.6% (December 2015: 11.4%). CET1 capital increased £1.6bn to £42.4bn primarily through profits generated in the period of £1.3bn. Group RWAs continue to be actively managed with the increase of £8bn to £366bn being principally due to the appreciation of USD and EUR against GBP

● The leverage ratio decreased to 4.2% (December 2015: 4.5%), with leverage exposure increasing by £127bn to £1,155bn primarily due to higher cash and settlement balances, following increased client activity, and the appreciation of USD and EUR against GBP

● Tangible net asset value per share increased to 289p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements

Progress on strategy execution in Q216

● Sale of 12.2% of Barclays Africa Group Limited (BAGL) issued share capital. Barclays now holds 50.1% of BAGL’s issued share capital

● Completion of the sale of the retail banking, wealth, and investment management, and parts of the Corporate Banking business in Portugal

● Announcement of exclusive discussions with AnaCap Financial Partners for the potential sale of the French retail, and wealth and investment management businesses

● Restructuring of the terms of the Education, Social Housing and Local Authority (ESHLA) loans with Lender Option Borrower Option (LOBO) features. These loans are now classified as loans held at amortised cost, reducing the ESHLA loans held at fair value by £8bn and the fair value volatility on the ESHLA portfolio going forward

● Redemption of $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares

   Barclays PLC – 2016 Interim Results 3     

Performance Highlights

Barclays Group results
for the half year ended	30.06.16		30.06.15		YoY
		£m		£m		% Change
Total income net of insurance claims		11,013		12,111		(9)
Credit impairment charges and other provisions		(931)		(779)		(20)
Net operating income		10,082		11,332		(11)
Operating expenses		(7,172)		(6,624)		(8)
Litigation and conduct		(525)		(1,966)		73
Total operating expenses		(7,697)		(8,590)		10
Other net expenses		(322)		(140)
Profit before tax		2,063		2,602		(21)
Tax charge		(715)		(852)		16
Profit after tax in respect of continuing operations		1,348		1,750		(23)
Profit after tax in respect of discontinued operation1		311		358		(13)
Non-controlling interests in respect of continuing operations		(186)		(173)		(8)
Non-controlling interests in respect of discontinued operation1		(155)		(165)		6
Other equity holders2		(208)		(159)		(31)
Attributable profit		1,110		1,611		(31)
Performance measures
Return on average tangible shareholders’ equity2		4.8%		6.9%
Average tangible shareholders’ equity (£bn)		48		48
Cost: income ratio		70%		71%
Loan loss rate (bps)		39		35
Basic earnings per share2		6.9p		9.9p
Dividend per share		1.0p		2.0p
Balance sheet and capital management		As at 30.06.16		As at 31.12.15
Tangible net asset value per share		289p		275p
Common equity tier 1 ratio		11.6%		11.4%
Common equity tier 1 capital		£42.4bn		£40.7bn
Risk weighted assets		£366bn		£358bn
Leverage ratio		4.2%		4.5%
Fully loaded tier 1 capital		£47.9bn		£46.2bn
Leverage exposure		£1,155bn		£1,028bn
Funding and liquidity
Group liquidity pool		£149bn		£145bn
Estimated CRD IV liquidity coverage ratio		124%		133%
Estimated net stable funding ratio		106%		106%
Loan: deposit ratio3		85%		86%

1 Refer to page 20 for further information on the Africa Banking discontinued operation.

2 The profit after tax attributable to other equity holders of £208m (H115: £159m) is offset by a tax credit recorded in reserves of £58m (H115: £32m). The net amount of £150m (H115: £127m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders’ equity.

3 Loan: deposit ratio for Barclays UK, Consumer, Cards and Payments, Corporate, and Non-Core retail.

   Barclays PLC – 2016 Interim Results 4     

Performance Highlights

Barclays Core and Non-Core results	Barclays Core						Barclays Non-Core
for the half year ended	30.06.16		30.06.15		YoY		30.06.16		30.06.15		YoY
		£m		£m		% Change		£m		£m		% Change
Total income net of insurance claims		11,599		11,646		-		(586)		465
Credit impairment charges and other provisions		(876)		(718)		(22)		(55)		(61)		10
Net operating income/(expenses)		10,723		10,928		(2)		(641)		404
Operating expenses		(6,315)		(5,679)		(11)		(857)		(945)		9
Litigation and conduct		(432)		(1,834)		76		(93)		(132)		30
Total operating expenses		(6,747)		(7,513)		10		(950)		(1,077)		12
Other net expenses		(9)		(68)		87		(313)		(72)
Profit/(loss) before tax		3,967		3,347		19		(1,904)		(745)
Tax (charge)/credit		(1,181)		(1,088)		(9)		466		236		97
Profit/(loss) after tax		2,786		2,259		23		(1,438)		(509)
Non-controlling interests		(164)		(132)		(24)		(22)		(41)		46
Other equity holders		(178)		(127)		(40)		(30)		(32)		6
Attributable profit/(loss)1		2,444		2,000		22		(1,490)		(582)
Performance measures
Return on average tangible equity		12.5%		11.3%
Average allocated tangible equity (£bn)1		40		36				8		12
Period end allocated tangible equity (£bn)1		41		37				8		10
Cost: income ratio		58%		65%				n/m		n/m
Loan loss rate (bps)		43		38				15		17
Basic earnings/(loss) per share contribution		14.8p		12.1p				(8.8p)		(3.5p)
	As at		As at				As at		As at
Capital management		30.06.16		31.12.15				30.06.16		31.12.15
Risk weighted assets1		£320bn		£304bn				£47bn		£54bn
Leverage exposure1		£1,021bn		£879bn				£134bn		£149bn
Notable items for the half year ended		30.06.16 £m		30.06.15 £m				30.06.16 £m		30.06.15 £m
Own credit		183		410				-		-
Gain on disposal of Barclays’ share of Visa Europe Limited		615		-				-		-
Gains on US Lehman acquisition assets		-		496				-		-
Provisions for ongoing investigations and litigation including Foreign Exchange		-		(800)				-		-
Gains on valuation of a component of the defined retirement benefit liability		-		429				-		-
Provisions for UK customer redress		(400)		(967)				-		(65)
Losses on sale relating to the Spanish business		-		(97)				-		(21)

Excluding notable items, the Core return on average tangible equity was 10.8% (H115: 13.7%) and the Core basic earnings per share was 12.9p (H115: 15.0p). Excluding notable items, the Non-Core basic loss per share was 8.8p (H115: 3.0p).

1 Attributable profit in respect of the Africa Banking discontinued operation is reported at the Group level only. Allocated tangible equity, RWAs and leverage exposure are reported in Head Office within Core.

	Half year ended		Half year ended
Income by business	30.06.16 £m		30.06.15 £m		YoY % Change
Barclays UK		3,746		3,635		3
Barclays Corporate & International		7,552		7,556		-
Head Office		301		455		(34)
Barclays Core		11,599		11,646		-
Barclays Non-Core		(586)		465
Barclays Group		11,013		12,111		(9)
Profit/(loss) before tax by business
Barclays UK		1,080		712		52
Barclays Corporate & International		2,753		2,380		16
Head Office		134		255		(47)
Barclays Core		3,967		3,347		19
Barclays Non-Core		(1,904)		(745)
Barclays Group		2,063		2,602		(21)

   Barclays PLC – 2016 Interim Results 5     

Group Performance Review

Group profit before tax decreased 21% to £2,063m and performance in the half was impacted by the results of Non-Core, which reported a loss before tax of £1,904m (H115: £745m) driven by net negative income of £586m (H115: positive income of £465m), as the momentum in the rundown continued. Non-Core results included fair value losses on the ESHLA portfolio of £424m (H115: £175m) and an impairment of £372m in respect of the assets of the French retail, and wealth and investment management businesses held for sale. Excluding this impairment and notable items, Group profit before tax was £2,037m (H115: £3,217m).

The Core business performed well, with a RoTE of 12.5% (H115: 11.3%) on an increased average tangible equity base of £40bn (H116: £36bn). This was driven by steady performance in Barclays UK, and solid performance in Barclays Corporate & International. CIB results were resilient, despite the challenging market conditions, particularly in Credit, while substantial business growth in Consumer, Cards and Payments drove a significant increase in the profit before tax. Core results included a £615m (H115: £nil) gain following the completion of the sale of Barclays’ share of Visa Europe Limited to Visa Inc. and an increase in provisions for UK customer redress of £400m (H115: £967m).

Total Core operating expenses reduced 10% to £6,747m driven by lower litigation and conduct charges, savings from strategic cost programmes and reduced compensation costs, partially offset by appreciation of the average USD and EUR against GBP and increased structural reform programme implementation costs.

Group performance

● Profit before tax decreased 21% to £2,063m primarily driven by the loss before tax in Non-Core of £1,904m (H115: £745m) and a 19% increase in Core profit before tax of £3,967m

● Return on average tangible shareholders’ equity was 4.8% (H115: 6.9%) and basic earnings per share was 6.9p (H115: 9.9p)

● Total income net of insurance claims decreased 9% to £11,013m as Non-Core income reduced to a net expense of £586m (H115: income of £465m). Core income was in line at £11,599m (H115: £11,646m)

● Credit impairment charges increased £152m to £931m primarily driven by the impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector, and an increase in Barclaycard Consumer UK impairment due to refinement of impairment modelling. The loan loss rate increased 4bps to 39bps whilst underlying delinquency rates remained stable

● Total operating expenses reduced 10% to £7,697m reflecting reduced litigation and conduct charges, and savings from strategic cost programmes, partially offset by restructuring and structural reform programme implementation costs, and continued investment in Consumer, Cards and Payments. Total operating expenses included a £400m (H115: £1,032m) increase in provisions for UK customer redress

● The effective tax rate on profit before tax increased to 34.7% (H115: 32.7%)

● Profit after tax in respect of continuing operations decreased 23% to £1,348m. Profit after tax in relation to the Africa Banking discontinued operation decreased 13% to £311m driven by the depreciation of average ZAR against GBP

● Notable items were a net profit before tax of £398m (H115: loss of £615m). H116 notable items comprised provisions for UK customer redress of £400m (H115: £1,032m), a £615m (H115: £nil) gain on disposal of Barclays’ share of Visa Europe Limited and an own credit gain of £183m (H115: £410m)

● Group income statement performance was materially impacted by the appreciation of average USD and EUR against GBP, positively benefiting income and adversely affecting impairment and operating expenses

Commentary which follows is stated on a statutory and underlying basis, with the underlying excluding notable items; see page 1 for explanation of certain non-IFRS measures.

Core performance

● Core performance generated a RoTE of 12.5% (H115: 11.3%) and underlying Core performance generated a RoTE of 10.8% (H115: 13.7%) reflecting an 8% reduction in profit before tax to £3,569m and a £4bn increase in average tangible equity to £40bn as capital was redeployed from Non-Core

● Total income remained stable at £11,599m (H115: £11,646m) and underlying total income was 1% up at £10,801m, as a 19% increase in Consumer, Cards and Payments to £1,881m was partially offset by the impact of challenging market conditions in CIB where total income reduced 5% to £5,207m. Barclays UK total income increased 3% to £3,746m and underlying total income was 1% down at £3,595m primarily reflecting the impact of the European Interchange Fee Regulation

● Credit impairment charges increased £158m to £876m primarily driven by the impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector, and an increase in Barclaycard Consumer UK due to refinement of impairment modelling

   Barclays PLC – 2016 Interim Results 6     

Group Performance Review

● Total operating expenses decreased 10% to £6,747m due to reduced litigation and conduct expenses and underlying total operating expenses increased 3% to £6,347m reflecting the appreciation of average USD and EUR against GBP and increased structural reform programme implementation costs, partially offset by savings from strategic cost programmes

Barclays UK

● RoTE was 13.6% (H115: 10.6%) and underlying RoTE was 19.4% (H115: 21.9%)

● Profit before tax increased 52% to £1,080m driven by reduced litigation and conduct expenses and the gain on disposal of Barclays’ share of Visa Europe Limited

● Total income increased 3% to £3,746m primarily due to the £151m gain on disposal of Barclays’ share of Visa Europe Limited

● Underlying profit before tax decreased 4% to £1,329m driven by a 1% decrease in total income, primarily due to the impact of the European Interchange Fee Regulation, and a 10% increase in credit impairment charges, partially offset by a 1% reduction in underlying total operating expenses

● Credit impairment charges increased 10% to £366m primarily due to the refinement of impairment modelling in Barclaycard Consumer UK, whilst the 30 day and 90 day arrears rates remained stable year-on-year

● Total operating expenses decreased 11% to £2,299m reflecting reduced conduct expenses and savings realised from strategic cost programmes and lower restructuring costs, partially offset by structural reform programme implementation costs

● Underlying total operating expenses reduced 1% reflecting savings realised from strategic cost programmes, partially offset by structural reform programme implementation costs

Barclays Corporate & International

● RoTE was 14.3% (H115: 11.0%)

● Underlying RoTE was 10.7% (H115: 12.4%)

● Profit before tax increased 16% to £2,753m due to the non recurrence of notable items in H115, partially offset by the factors below which have driven the reduction in underlying profit before tax

● Underlying profit before tax decreased 10% to £2,289m driven by a 4% increase in operating expenses due to the appreciation of average USD and EUR against GBP, and increased structural reform programme implementation costs, in addition to a 33% increase in credit impairment charges largely in respect of counterparties in the oil and gas sector

● Total income and underlying total income were broadly in line with H115 at £7,522m and £7,088m respectively (H115: £7,556m and £7,060m underlying), including the appreciation of average USD and EUR against GBP, with Consumer, Cards and Payments income increasing 19%, driven by continued growth in Barclaycard US, Germany and Merchant Acquiring. CIB income decreased 5% as Markets income reduced 6%, within which Equities and Macro were 22% and 4% lower respectively, relative to a strong H115 performance, partially offset by a 35% increase in Credit. Banking income decreased 5%

Head Office

● Profit before tax reduced 47% to £134m predominantly due to a smaller own credit gain of £183m (H115: £410m) and underlying loss before tax was £49m (H115: loss of £58m) reflecting the net result from treasury operations, including one-off gains from the buyback of subordinated debt in Q116

Non-Core performance

● The Non-Core rundown remains on track. As part of this, on 27 April 2016, Barclays announced that it had entered into exclusive discussions with AnaCap Financial Partners for the potential sale of its French retail, and wealth and investment management businesses. Other net expenses included a £372m impairment associated with these assets

● During Q216, the terms of the ESHLA portfolio loans with LOBO features were restructured. As a result of the restructuring, a one-off loss of £182m was recognised in Non-Core income in Q216. The restructuring resulted in the derecognition of £8bn of existing Level 3 fair valued loan assets with the new restructured assets now measured on an amortised cost basis. As a result, Barclays will benefit from reduced fair value volatility on the ESHLA portfolio going forward

● Non-Core RWAs reduced to £46.7bn (December 2015: £54.3bn), despite the appreciation of USD and EUR against GBP, reflecting a £3bn reduction in Derivatives, a £3bn reduction in Securities and loans and a £1bn reduction in Businesses

   Barclays Bank PLC– 2016 Interim Results 7     

Group Performance Review

RWAs, including a £1.8bn reduction following the completion of the sale of the retail banking, wealth and investment management and part of the Corporate Banking business in Portugal

● Loss before tax and underlying loss before tax increased to £1,904m (H115: £745m and £659m underlying) driven by a £1,051m reduction in total income to a net expense of £586m including fair value losses of £424m (H115: £175m) on the ESHLA portfolio, a one-off loss of £182m due to the restructuring of the ESHLA portfolio LOBO loan terms as well as lower income following the completion of the sale of the Barclays Wealth Americas, UK Secured Lending, and Portuguese retail and insurance businesses. Derivatives income reduced £135m to an expense of £198m reflecting the active rundown of the portfolios and funding costs

● Total operating expenses decreased 12% due to the non recurrence of notable items from H115 and the factors outlined below, causing underlying operating expenses to reduce

● Underlying operating expenses reduced 6%, reflecting cost savings from ceasing certain investment banking activities in a number of countries, the completion of the sale of several businesses and the rundown of portfolios, partially offset by a £180m increase in restructuring charges

Group capital, leverage and balance sheet

● The leverage ratio decreased to 4.2% (December 2015: 4.5%) driven by the increase in leverage exposure primarily due to balance sheet movements

● Leverage exposure increased 12% to £1,155bn, while total assets increased 21% to £1,351bn from 31 December 2015

– Total loans and advances and other assets increased £93bn to £718bn. The increase was primarily driven by a £27bn increase in cash and balances at central banks due to an increase in the cash element of the Group liquidity pool in preparation for the EU referendum, a £26bn increase in settlement balances following increased client activity, lending growth of £14bn within Barclays Corporate & International and an £8bn increase in Africa Banking assets held for sale reflecting the appreciation of ZAR against GBP

– Net derivative leverage exposure remained broadly flat as an increase in assets of £117bn to £445bn was offset by an increase in derivative liabilities resulting in regulatory derivative netting increasing £109bn to £402bn. The increase was mostly within interest rate derivatives and foreign exchange derivatives reflecting a decrease in the major forward interest rates and appreciation of all major currencies against GBP

● The fully loaded CRD IV CET1 ratio increased to 11.6% (December 2015: 11.4%) reflecting an increase in CET1 capital of £1.6bn to £42.4bn, whilst RWAs increased by £8bn to £366bn

– The increase in CET1 capital was largely driven by profits generated in the period and favourable movements in other qualifying reserves which included the currency translation reserves as a result of the appreciation of all major currencies against GBP

– The increase in RWAs was principally due to the appreciation of USD, EUR and ZAR against GBP, which more than offset underlying RWA reductions in Non-Core

● Tangible net asset value per share increased to 289p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements

Group funding and liquidity

● The Group continued to maintain surpluses to its internal and regulatory requirements in H116 with a liquidity pool of £149bn (December 2015: £145bn). The Liquidity Coverage Ratio (LCR) decreased to 124% (December 2015: 133%), equivalent to a surplus of £29bn (December 2015: £37bn) driven primarily by the early repayment of the Bank of England’s Funding for Lending Scheme of £12bn in Q116 as Barclays optimised its funding cost

● Wholesale funding outstanding excluding repurchase agreements increased £12bn to £154bn, driven by the prudent management of the liquidity position in the immediate run-up to the 23 June 2016 referendum in the United Kingdom. The Group issued £5.7bn of senior unsecured debt and capital transactions from the holding company in H116, of which £4.2bn and £0.6bn in public and private senior unsecured debt respectively, and £0.9bn of subordinated debt. £6.1bn of Barclays Bank PLC senior debt and capital instruments have been bought back or called during H116. Proceeds raised by Barclays PLC have been used to invest in Barclays Bank PLC instruments in each case with a corresponding ranking

   Barclays PLC – 2016 Interim Results 8     

Group Performance Review

Other matters

● On 5 May 2016, Barclays sold 103.6m ordinary shares in the capital of BAGL, representing 12.2% of BAGL issued share capital at a price of ZAR 126 per share through an accelerated bookbuild placing. The placing resulted in a proforma 10bps increase to the CET1 ratio in Q216. Barclays now holds 424.7m ordinary shares in the capital of BAGL, representing 50.1% of BAGL’s issued share capital. BAGL remains fully consolidated within the Group at 30 June 2016

● On 10 May 2016, Barclays announced it would exercise its right to redeem its $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares on their optional redemption date of 15 June 2016. The redemption resulted in a proforma 6bps decrease to the CET1 ratio in Q216, but will result in an ongoing reduction in preference share dividends payable of $89m per annum from 15 June 2016 onwards

● The acquisition of Visa Europe Limited by Visa Inc. completed on 21 June 2016 resulted in the recognition of a pre-tax gain on disposal of £615m in income in Q216. £396m of this amount had previously been recognised in Available for Sale Reserves in Q415

● Additional UK customer redress provisions of £400m (H115: £1,032m) relating to Payment Protection Insurance (PPI) were recognised in Q216, reflecting an updated estimate of costs, primarily relating to ongoing remediation programmes

● H116 included an own credit gain of £183m (H115: £410m)

Dividends

● An interim dividend of 1.0p per share will be paid on 19 September 2016

   Barclays PLC – 2016 Interim Results 9     

Results by Business

Barclays UK

	Half year ended			Half year ended
Income statement information		30.06.16 £m		30.06.15 £m		YoY % Change
Net interest income			2,977		2,965		-
Net fee, commission and other income			769		670		15
Total income			3,746		3,635		3
Credit impairment charges and other provisions			(366)		(333)		(10)
Net operating income			3,380		3,302		2
Operating expenses			(1,899)		(1,619)		(17)
Litigation and conduct			(400)		(969)		59
Total operating expenses			(2,299)		(2,588)		11
Other net expenses			(1)		(2)		50
Profit before tax			1,080		712		52
Attributable profit			608		490		24
Balance sheet information		As at 30.06.16 £bn		As at 31.12.15 £bn		As at 30.06.15 £bn
Loans and advances to customers at amortised cost			166.0		166.1		166.1
Total assets			204.6		202.5		202.2
Customer deposits			181.7		176.8		171.6
Risk weighted assets			67.1		69.5		71.7
Key facts		Half year ended 30.06.16		Half year ended 30.06.15
Average LTV of mortgage portfolio1			47%		51%
Average LTV of new mortgage lending1			63%		62%
Number of branches			1,331		1,448
Barclays mobile banking customers			5.2m		4.2m
30 day arrears rate - Barclaycard Consumer UK			2.3%		2.4%
Performance measures
Return on average tangible equity			13.6%		10.6%
Average allocated tangible equity (£bn)			9.1		9.4
Cost: income ratio			61%		71%
Loan loss rate (bps)			43		40
Loan: deposit ratio			91%		97%
Net interest margin			3.59%		3.57%
Notable items		£m		£m
Gain on disposal of Barclays’ share of Visa Europe Limited			151		-
Provisions for UK customer redress			(400)		(967)
Gain on valuation of a component of the defined retirement benefit liability			-		296

Excluding notable items, the Barclays UK return on average tangible equity was 19.4% (H115: 21.9%).

1 Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.

   Barclays PLC – 2016 Interim Results 10     

Results by Business

Analysis of Barclays UK

	Half year ended			Half year ended
Analysis of total income		30.06.16 £m		30.06.15 £m		YoY % Change
Personal Banking			1,987		1,832		8
Barclaycard Consumer UK			954		1,008		(5)
Wealth, Entrepreneurs & Business Banking			805		795		1
Total income			3,746		3,635		3
Analysis of credit impairment charges and other provisions
Personal Banking			(86)		(119)		28
Barclaycard Consumer UK			(274)		(201)		(36)
Wealth, Entrepreneurs & Business Banking			(6)		(13)		54
Total credit impairment charges and other provisions			(366)		(333)		(10)
Analysis of loans and advances to customers at amortised cost		As at 30.06.16 £bn		As at 31.12.15 £bn		As at 30.06.15 £bn
Personal Banking			134.7		134.0		134.4
Barclaycard Consumer UK			16.2		16.2		15.8
Wealth, Entrepreneurs & Business Banking			15.1		15.9		15.9
Total loans and advances to customers at amortised cost			166.0		166.1		166.1
Analysis of customer deposits
Personal Banking			134.8		131.0		126.7
Barclaycard Consumer UK			-		-		-
Wealth, Entrepreneurs & Business Banking			46.9		45.8		44.9
Total customer deposits			181.7		176.8		171.6

   Barclays PLC – 2016 Interim Results 11     

Results by Business

Barclays UK

Income statement – H116 compared to H115

● Profit before tax increased 52% to £1,080m. Underlying profit before tax, excluding the impact of notable items decreased 4% to £1,329m driven by reduced income and an increase in credit impairment charges, partially offset by a reduction in operating expenses

● Total income, including a gain on disposal of Barclays’ share of Visa Europe Limited recognised in Personal Banking and Business Banking increased 3% to £3,746m. Underlying total income reduced 1% to £3,595m, within which:

– Personal Banking income increased 1% to £1,858m driven by improved deposit margins and balance growth, partially offset by a lower mortgage margin

– Barclaycard Consumer UK income decreased 5% to £954m primarily driven by the impact of the European Interchange Fee Regulation, which began to come into full effect from December 2015, and is now fully implemented

– Wealth, Entrepreneurs & Business Banking (WEBB) decreased 2% to £783m driven by reduced transactional appetite from clients in equity markets and a reduction in assets under management, partially offset by improved deposit margins and balance growth

– Net interest income was broadly in line at £2,977m (H115: £2,965m) due to balance growth and deposit pricing initiatives, offset by a lower mortgage margin

– Net interest margin increased 2bps to 3.59% reflecting higher margins on Personal Banking deposits, partially offset by lower lending margins

– Net fee, commission and other income decreased 8% to £618m due to the impact of the European Interchange Fee Regulation, which began to come into full effect from December 2015, and is now fully implemented, and reduced fee and commission income in WEBB

● Credit impairment charges increased 10% to £366m primarily due to refinement of impairment modelling in Barclaycard Consumer UK, whilst the 30 day and 90 day arrears rates remained stable year-on-year

● Total operating expenses reduced 11% to £2,299m, including provisions for UK customer redress. Underlying total operating expenses reduced 1% to £1,899m reflecting savings realised from strategic cost programmes, relating to restructuring of the branch network and technology improvements, partially offset by structural reform programme implementation costs and increased amortisation from investment in digital

● Cost: income ratio was 61% (H115: 71%) and RoTE was 13.6% (H115: 10.6%)

● Underlying cost: income ratio was 53% (H115: 53%) and underlying RoTE was 19.4% (H115: 21.9%)

Balance sheet – 30 June 2016 compared to 31 December 2015

● Loans and advances to customers were stable at £166.0bn (December 2015: £166.1bn)

● Total assets increased 1% to £204.6bn driven by an increase in WEBB

● Customer deposits increased 3% to £181.7bn primarily driven by higher balances in Personal Banking

● RWAs reduced £2.4bn to £67.1bn primarily driven by credit risk model changes following approval from the Prudential Regulation Authority (PRA)

   Barclays PLC – 2016 Interim Results 12     

Results by Business

Barclays Corporate & International

	Half year ended		Half year ended
Income statement information	30.06.16 £m		30.06.15 £m		YoY % Change
Net interest income		2,111		2,095		1
Net trading income		2,375		2,372		-
Net fee, commission and other income		3,066		3,089		(1)
Total income		7,552		7,556		-
Credit impairment charges and other provisions		(509)		(384)		(33)
Net operating income		7,043		7,172		(2)
Operating expenses		(4,295)		(3,963)		(8)
Litigation and conduct		(14)		(857)		98
Total operating expenses		(4,309)		(4,820)		11
Other net income		19		28		(32)
Profit before tax		2,753		2,380		16
Attributable profit		1,746		1,360		28
Balance sheet information	As at 30.06.16 £bn		As at 31.12.15 £bn		As at 30.06.15 £bn
Loans and advances to banks and customers at amortised cost1		230.6		184.1		210.5
Trading portfolio assets		68.1		61.9		75.3
Derivative financial instrument assets		181.4		111.5		116.0
Derivative financial instrument liabilities		187.5		119.0		124.8
Reverse repurchase agreements and other similar secured lending		19.7		24.7		57.4
Financial assets designated at fair value		68.3		46.8		5.6
Total assets		679.9		532.2		566.1
Customer deposits2		226.5		185.6		197.7
Risk weighted assets		209.3		194.8		195.4
Performance measures	Half year ended 30.06.16		Half year ended 30.06.15
Return on average tangible equity		14.3%		11.0%
Average allocated tangible equity (£bn)		25.0		25.0
Cost: income ratio		57%		64%
Loan loss rate (bps)		44		36
Loan: deposit ratio		90%		92%
Net interest margin3		4.76%		4.52%
Notable items	£m		£m
Gain on disposal of Barclays’ share of Visa Europe Limited		464		-
Gains on US Lehman acquisition assets		-		496
Provisions for ongoing investigations and litigation including Foreign Exchange		-		(800)
Gain on valuation of a component of the defined retirement benefit liability		-		133

Excluding notable items, the Barclays Corporate & International return on average tangible equity was 10.7% (H115: 12.4%).

1 As at 30 June 2016 loans and advances included £204.4bn (December 2015: £162.6bn) of loans and advances to customers (including settlement balances of £39.9bn (December 2015: £18.5bn) and cash collateral of £29.8bn (December 2015: £24.8bn)), and £26.2bn (December 2015: £21.5bn) of loans and advances to banks (including settlement balances of £6.2bn (December 2015: £1.6bn) and cash collateral of £5.3bn (December 2015: £5.7bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £35.4bn (December 2015: £32.1bn).

2 As at 30 June 2016 customer deposits included settlement balances of £38.9bn (December 2015: £16.3bn) and cash collateral of £18.7bn (December 2015: £15.9bn).

3 Excludes Investment Banking related balances.

   Barclays PLC – 2016 Interim Results 13     

Results by Business

Analysis of Barclays Corporate & International

Corporate and Investment Bank Income statement information	Half year ended			Half year ended
		30.06.16 £m		30.06.15 £m		YoY % Change
Analysis of total income
Credit			591		438		35
Equities			919		1,177		(22)
Macro			1,185		1,239		(4)
Markets			2,695		2,854		(6)
Banking fees			1,103		1,128		(2)
Corporate lending			608		672		(10)
Transactional banking			798		829		(4)
Banking			2,509		2,629		(5)
Other			3		496		(99)
Total income			5,207		5,979		(13)
Credit impairment charges and other provisions			(132)		(41)
Total operating expenses			(3,465)		(4,027)		14
Profit before tax			1,610		1,912		(16)
Balance sheet information		As at 30.06.16 £bn		As at 31.12.15 £bn		As at 30.06.15 £bn
Risk weighted assets			178.4		167.3		170.0
Performance measures	Half year ended 30.06.16			Half year ended 30.06.15
Return on average tangible equity			8.4%		9.8%
Average allocated tangible equity (£bn)			21.5		22.0
Consumer, Cards and Payments Income statement information	Half year ended			Half year ended
		30.06.16 £m		30.06.15 £m		YoY % Change
Total income			2,345		1,577		49
Credit impairment charges and other provisions			(377)		(344)		(10)
Total operating expenses			(844)		(793)		(6)
Profit before tax			1,143		468
Balance sheet information		As at 30.06.16 £bn		As at 31.12.15 £bn		As at 30.06.15 £bn
Loans and advances to banks and customers at amortised cost			35.4		32.1		29.6
Customer deposits			46.9		41.8		38.4
Risk weighted assets			30.9		27.5		25.4
Key facts	Half year ended 30.06.16			Half year ended 30.06.15
30 day arrears rates – Barclaycard US			2.2%		1.9%
Total number of Barclaycard business clients			350,000		343,000
Value of payments processed			£141bn		£135bn
Performance measures
Return on average tangible equity			50.9%		20.4%
Average allocated tangible equity (£bn)			3.5		3.0

   Barclays PLC – 2016 Interim Results 14     

Results by Business

Barclays Corporate & International

● Profit before tax increased 16% to £2,753m, driven by an 11% reduction in total operating expenses due to the non recurrence of H115 notable items. Underlying profit before tax, which excludes the impact of notable items decreased 10% to £2,289m driven by a 4% increase in underlying total operating expenses to £4,309m due to the appreciation of average USD and EUR against GBP, structural reform programme implementation and restructuring costs, and a 33% increase in credit impairment charges to £509m

● Total income and underlying total income remained broadly in line at £7,552m and £7,088m respectively (H115: £7,556m and £7,060m underlying), including the appreciation of average USD and EUR against GBP, with Consumer, Cards and Payments income increasing 19% to £1,881m and CIB income decreasing 5% to £5,207m

● Cost: income ratio was 57% (H115: 64%) and RoTE was 14.3% (H115: 11.0%)

● Underlying cost: income ratio was 61% (H115: 59%) and underlying RoTE was 10.7% (H115: 12.4%)

Corporate and Investment Bank (CIB)

Income statement – H116 compared to H115

● Profit before tax decreased 16% to £1,610m primarily due to a reduction in income driven by challenging market conditions in Equities, increased credit impairment charges of £132m (H115: £41m), offset by reduced total operating expenses. Total income and total operating expenses have also been impacted by the appreciation of average USD against GBP

● Total income decreased 5% to £5,207m:

– Markets income decreased 6% to £2,695m, within which:

– Credit income increased 35% to £591m driven by strong performance in fixed income credit flow businesses, which benefitted from increased market volatility

– Equities income decreased 22% to £919m following simplification of the business model with minimal impact on returns as lower income in EMEA and Asia was partially offset by increases in the Americas in a challenging trading environment

– Macro income decreased 4% to £1,185m due to lower client activity in Q116 partially offset by an improved Q216 performance, primarily in rates and currency products

– Banking income decreased 5% to £2,509m, within which:

– Banking fee income decreased 2% to £1,103m driven by lower equity underwriting fees, partially offset by higher advisory and debt underwriting fees

– Corporate lending reduced 10% to £608m due to the non-recurrence of a one-off work-out gain recognised in H115, in addition to some margin reduction, partially offset by balance growth

– Transactional banking income reduced 4% to £798m primarily due to margin and rate compression, partially offset by income from higher deposit balances and an increase in payment volumes

● Credit impairment charges of £132m (H115: £41m) arose from impairment of a number of single name exposures primarily in Q116, largely in respect of counterparties in the oil and gas sector

● Total operating expenses decreased 14% to £3,465m due to lower litigation and conduct costs, offset by the appreciation of average USD against GBP and restructuring and structural reform programme implementation costs

Balance sheet – 30 June 2016 compared to 31 December 2015

● Loans and advances to banks and customers at amortised cost increased £43.2bn to £195.2bn primarily driven by increases in settlements, cash collateral and new client activity during the period

● Derivative financial instrument assets and liabilities increased 63% to £181.2bn and 57% to £187.4bn respectively, due to decreases in major forward interest rates and appreciation of major currencies against GBP

● Trading portfolio assets increased £6.2bn to £68.1bn due to an increase in client activity

● Financial assets designated at fair value increased £21.4bn to £68.2bn primarily due to an increase in reverse repurchase agreements that have been designated at fair value, increased matched book trading and firm funding requirements

   Barclays PLC – 2016 Interim Results 15     

Results by Business

● Total assets increased 29% to £625.9bn primarily due to an increase in derivative financial instrument assets, reverse repurchase agreements, loans and advances to banks and customers, and trading portfolio assets, partially offset by a decrease in other assets

● Customer deposits increased £36.0bn to £179.7bn primarily driven by increases in settlements, cash collateral and new client activity during the period

● RWAs increased £11.1bn to £178.4bn primarily due to an increase in the fair value of derivative exposures and the appreciation of USD against GBP

Consumer, Cards and Payments

Income statement – H116 compared to H115

● Profit before tax increased £675m to £1,143m due to a gain on disposal of Barclays’ share of Visa Europe Limited and a 20% year-on-year increase in loans and advances to banks and customers

● Total income increased 49% to £2,345m, including a gain on disposal of Barclays’ share of Visa Europe Limited, continued growth in Barclaycard US, Germany and Merchant Acquiring, and the appreciation of average USD and EUR against GBP

● Credit impairment charges increased 10% to £377m primarily driven by balance growth and the appreciation of average USD and EUR against GBP

● Total operating expenses increased 6% to £844m including the appreciation of average USD and EUR against GBP

Balance sheet – 30 June 2016 compared to 31 December 2015

● Loans and advances to banks and customers grew 10% to £35.4bn driven by growth in Barclaycard US, including the acquisition of the JetBlue credit card portfolio

● Customer deposits increased £5.1bn to £46.9bn driven by strong balance growth in Wealth International and Offshore businesses

● RWAs increased £3.4bn to £30.9bn primarily driven by the appreciation of USD and EUR against GBP, and the acquisition of card portfolios

   Barclays PLC – 2016 Interim Results 16     

Results by Business

Head Office

	Half year ended			Half year ended
Income statement information		30.06.16 £m		30.06.15 £m		YoY % Change
Total income			301		455		(34)
Credit impairment charges and other provisions			(1)		(1)		-
Net operating income			300		454		(34)
Operating expenses			(121)		(98)		(23)
Litigation and conduct			(18)		(7)
Total operating expenses			(139)		(105)		(32)
Other net expenses			(27)		(94)		71
Profit before tax			134		255		(47)
Attributable profit			90		152		(41)
		As at 30.06.16		As at 31.12.15		As at 30.06.15
Balance sheet information		£bn		£bn		£bn
Total assets1			87.7		59.4		62.2
Risk weighted assets1			43.2		39.7		41.0
	Half year ended			Half year ended
Performance measures		30.06.16 £bn		30.06.15 £bn
Average allocated tangible equity (£bn)			5.8		1.4
Notable items		£m		£m
Own credit			183		410
Losses on sale relating to the Spanish business			-		(97)

1 Includes Africa Banking assets held for sale of £56.0bn (December 2015: £47.9bn) and risk weighted assets of £36.1bn (December 2015: £31.7bn).

Head Office

Income statement – H116 compared to H115

● Profit before tax reduced 47% to £134m

● Total income decreased to £301m (H115: £455m) primarily reflecting smaller own credit gains, partially offset by one-off gains from the buyback of subordinated debt in Q116

● Total operating expenses increased £34m to £139m primarily due to an increase in litigation settlements and professional fees

Balance sheet – 30 June 2016 compared to 31 December 2015

● Total assets increased £28.3bn to £87.7bn driven by an increase in the liquidity buffer held due to uncertainty relating to the 23 June 2016 referendum in the United Kingdom

● RWAs increased £3.5bn to £43.2bn primarily due to the appreciation of ZAR against GBP

   Barclays PLC – 2016 Interim Results 17     

Results by Business

Barclays Non-Core

	Half year ended			Half year ended
Income statement information		30.06.16 £m		30.06.15 £m		YoY % Change
Net interest income			136		310		(56)
Net trading income			(953)		(184)
Net fee, commission and other income			370		506		(27)
Total income			(447)		632
Net claims and benefits incurred under insurance contracts			(139)		(167)		17
Total income net of insurance claims			(586)		465
Credit impairment charges and other provisions			(55)		(61)		10
Net operating income			(641)		404
Operating expenses			(857)		(945)		9
Litigation and conduct			(93)		(132)		30
Total operating expenses			(950)		(1,077)		12
Other net expenses			(313)		(72)
Loss before tax			(1,904)		(745)
Attributable loss			(1,490)		(582)
		As at 30.06.16		As at 31.12.15		As at 30.06.15
Balance sheet information		£bn		£bn		£bn
Loans and advances to banks and customers at amortised cost1			68.5		51.8		60.4
Derivative financial instrument assets			262.8		213.7		223.9
Derivative financial instrument liabilities			253.4		202.1		216.7
Reverse repurchase agreements and other similar secured lending			0.1		3.1		16.7
Financial assets designated at fair value			15.4		21.4		22.1
Total assets			379.1		325.8		366.2
Customer deposits2			17.4		20.9		27.9
Risk weighted assets			46.7		54.3		68.6
Performance measures		Half year ended 30.06.16		Half year ended 30.06.15
Average allocated tangible equity (£bn)			8.5		11.8
Period end allocated tangible equity (£bn)			7.8		10.1
Loan loss rate (bps)			15		17
Notable items		£m		£m
Provisions for UK customer redress			-		(65)
Losses on sale relating to the Spanish business			-		(21)
						YoY
Analysis of income net of insurance claims							% Change
Businesses			377		596		(37)
Securities and loans			(765)		(68)
Derivatives			(198)		(63)
Total income net of insurance claims			(586)		465

1 As at 30 June 2016 loans and advances included £52.4bn (December 2015: £40.4bn) of loans and advances to customers (including settlement balances of £0.1bn (December 2015: £0.3bn) and cash collateral of £28.8bn (December 2015: £19.0bn)), and £16.1bn (December 2015: £11.4bn) of loans and advances to banks (including settlement balances of £0.1bn (December 2015: £nil) and cash collateral of £15.0bn (December 2015: £10.1bn)).

2 As at 30 June 2016 customer deposits included settlement balances of £0.1bn (December 2015: £0.2bn) and cash collateral of £14.5bn (December 2015: £12.3bn).

   Barclays PLC – 2016 Interim Results 18     

Results by Business

Barclays Non-Core

Income statement – H116 compared to H115

● Loss before tax increased to £1,904m (H115: £745m). Underlying loss before tax increased to £1,904m (H115: £659m) driven by reduced income and increased losses resulting from continued progress on the rundown of Securities and loans, Businesses, and Derivative assets, a £372m impairment associated with the valuation of the French retail, and wealth and investment management businesses in other net expenses, and higher fair value losses on the ESHLA portfolio

● Total income net of insurance claims reduced £1,051m to a net expense of £586m

– Businesses income reduced 37% to £377m due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas, UK Secured Lending and Portuguese retail and insurance businesses

– Securities and loans income decreased £697m to a net expense of £765m primarily driven by fair value losses of £424m (H115: £175m) on the ESHLA portfolio, a one-off loss of £182m due to the restructure of the ESHLA portfolio loan terms and the non-recurrence of a £91m provision release relating to a litigation matter in Q115

– Derivatives income reduced £135m to an expense of £198m reflecting the active rundown of the portfolios and funding costs

● Credit impairment charges improved 10% to £55m due to higher recoveries in Europe

● Total operating expenses improved 12% to £950m driven by the non recurrence of notable items in H115 and the factors outlined below, causing underlying operating expenses to reduce

● Underlying total operating expenses improved 6% to £950m, reflecting cost savings from ceasing certain investment banking activities in a number of countries and the completion of the sale of several businesses, partially offset by a £180m increase in restructuring charges

● Other net expenses of £313m (H115: £72m) included a £372m impairment associated with the valuation of the French retail, and wealth and investment management businesses

Balance sheet – 30 June 2016 compared to 31 December 2015

● Loans and advances to banks and customers at amortised cost increased 32% to £68.5bn due to an increase in cash collateral assets and the reclassification of £8bn of ESHLA loans now recognised at amortised cost, following the restructure of LOBO loan terms, partially offset by the reclassification of assets on the announced sale of the Asia wealth and investment management business to assets held for sale, and the rundown and exit of historical investment bank assets

● Derivative financial instrument assets and liabilities increased 23% to £262.8bn and 25% to £253.4bn respectively, due to a rates rally across the three major currencies (GBP, USD, EUR) from December 2015 to June 2016, partially offset by the continued rundown of the derivative back book

● Customer deposits decreased £3.5bn to £17.4bn due to the increase in collateral received

● Total assets increased £53.3bn to £379.1bn due to higher derivative financial instrument assets which increased £49.1bn to £262.8bn. Derivative financial instrument liabilities increased £51.3bn to £253.4bn

● Leverage exposure decreased £15bn to £134bn due to reduced potential future exposure on derivatives and trading portfolio assets

● RWAs reduced £7.6bn to £46.7bn including a £3bn reduction in Derivatives, a £3bn reduction in Securities and loans, and a £1bn reduction in Businesses RWAs, despite the appreciation of USD and EUR against GBP and other adverse market movements

   Barclays PLC – 2016 Interim Results 19     

Africa Banking - Discontinued Operation

On 1 March 2016, Barclays announced its intention to sell down the Group’s interest in BAGL. This sell down is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required. On 5 May 2016 Barclays executed the first tranche of the sell down of the Group’s interest in BAGL with the sale of 12.2% of BAGL’s issued share capital. Following completion of the sale, Barclays’ holding represents 50.1% of BAGL’s issued share capital.

The Africa Banking business meets the requirements for presentation as a discontinued operation. As such, these results have been presented as two lines on the face of the Group income statement, representing the profit after tax and non-controlling interest in respect of the discontinued operation. Were the fair value of BAGL, based on its quoted share price, less estimated costs to sell, to fall below the carrying amount of the net assets of BAGL including goodwill on acquisition, a resulting impairment to Barclays’ stake in BAGL would also be recognised through these lines.

Africa Banking	Half year ended		Half year ended
Income statement information	30.06.16 £m		30.06.15 £m		YoY % Change
Net interest income		982		1,011		(3)
Net fee, commission and other income		802		848		(5)
Total income		1,784		1,859		(4)
Net claims and benefits incurred under insurance contracts		(87)		(81)		(7)
Total income net of insurance claims		1,697		1,778		(5)
Credit impairment charges and other provisions		(244)		(194)		(26)
Net operating income		1,453		1,584		(8)
Total operating expenses		(1,020)		(1,075)		5
Other net income		2		3		(33)
Profit before tax		435		512		(15)
Profit after tax		311		358		(13)
Attributable profit		156		193		(19)
	As at 30.06.16		As at 31.12.15		As at 30.06.15
Balance sheet information	£bn		£bn		£bn
Total assets		56.0		47.9		52.2
Risk weighted assets		36.1		31.7		34.4
Key facts	Half year ended 30.06.16		Half year ended 30.06.15
Period end - ZAR/£		19.63		19.12
6 month average - ZAR/£1		22.17		18.16
Barclays Africa Group Limited share price (ZAR)		144.08		182.98
Barclays Africa Group Limited number of shares (m)		848		848

1 The average rate is derived from daily spot rates during the year.

   Barclays PLC – 2016 Interim Results 20     

Quarterly Results Summary

Barclays Group	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income net of insurance claims		5,972		5,041		4,448		5,481		6,461		5,650		4,097		5,987
Credit impairment charges and other provisions		(488)		(443)		(554)		(429)		(393)		(386)		(495)		(435)
Net operating income		5,484		4,598		3,894		5,052		6,068		5,264		3,602		5,552
Operating expenses		(3,425)		(3,747)		(3,547)		(3,552)		(3,557)		(3,067)		(3,696)		(3,653)
UK bank levy		-		-		(426)		-		-		-		(418)		-
Litigation and conduct		(447)		(78)		(1,722)		(699)		(927)		(1,039)		(1,089)		(607)
Total operating expenses		(3,872)		(3,825)		(5,695)		(4,251)		(4,484)		(4,106)		(5,203)		(4,260)
Other net (expenses)/income		(342)		20		(274)		(182)		(39)		(101)		(82)		(336)
Profit/(loss) before tax		1,270		793		(2,075)		619		1,545		1,057		(1,683)		956
Tax (charge)/credit		(467)		(248)		(164)		(133)		(324)		(528)		134		(507)
Profit/(loss) after tax in respect of continuing operations		803		545		(2,239)		486		1,221		529		(1,549)		449
Profit after tax in respect of discontinued operation		145		166		101		167		162		196		168		171
Attributable to:
Ordinary equity holders of the parent		677		433		(2,422)		417		1,146		465		(1,679)		379
Other equity holders		104		104		107		79		79		80		80		80
Non-controlling interests		167		174		177		157		158		180		218		161
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Total assets		1,351.3		1,248.9		1,120.0		1,236.5		1,196.7		1,416.4		1,357.9		1,365.7
Risk weighted assets		366.3		363.0		358.4		381.9		376.7		395.9		401.9		412.9
Leverage exposure		1,155.4		1,082.0		1,027.8		1,140.7		1,139.3		1,254.7		1,233.4		1,323.9
Performance measures
Return on average tangible shareholders’ equity		5.8%		3.8%		(20.1%)		3.6%		9.8%		4.0%		(13.8%)		3.4%
Average tangible shareholders’ equity (£bn)		48.3		48.3		47.8		47.6		47.2		48.1		48.3		46.8
Cost: income ratio		65%		76%		128%		78%		69%		73%		127%		71%
Loan loss rate (bps)		41		40		53		37		35		32		45		39
Basic earnings/(loss) per share		4.2p		2.7p		(14.4p)		2.6p		7.0p		2.9p		(10.2p)		2.4p
Notable items	£m		£m		£m		£m		£m		£m		£m		£m
Own credit1		292		(109)		(175)		195		282		128		(62)		44
Gain on disposal of Barclays’ share of Visa Europe Limited1		615		-		-		-		-		-		-		-
Gains on US Lehman acquisition assets1		-		-		-		-		496		-		-		461
Revision of ESHLA valuation methodology1		-		-		-		-		-		-		(935)		-
Provisions for UK customer redress2		(400)		-		(1,450)		(290)		(850)		(182)		(200)		(10)
Provisions for ongoing investigations and litigation including Foreign Exchange2		-		-		(167)		(270)		-		(800)		(750)		(500)
Gain on valuation of a component of the defined retirement benefit liability3		-		-		-		-		-		429		-		-
Impairment of goodwill and other assets relating to businesses being disposed3		-		-		(96)		-		-		-		-		-
Losses on sale relating to the Spanish, Portuguese and Italian businesses3		-		-		(261)		(201)		-		(118)		(82)		(364)

Excluding notable items, the Q216 return on average tangible shareholders’ equity was 2.5% (Q215: 9.1%) and basic earnings per share was 1.8p (Q215: 6.5p).

1 Notable item recorded in total income net of insurance claims

2 Notable item recorded in litigation and conduct

3 Notable item recorded in operating expenses

4 Notable item recorded in other net income/(expenses)

   Barclays PLC – 2016 Interim Results 21     

Quarterly Results Summary

Barclays Core1	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income net of insurance claims		6,316		5,283		4,516		5,265		6,219		5,428		4,791		5,368
Credit impairment charges and other provisions		(462)		(414)		(522)		(388)		(373)		(345)		(481)		(393)
Net operating income		5,854		4,869		3,994		4,877		5,846		5,083		4,310		4,975
Operating expenses		(3,057)		(3,258)		(2,992)		(3,094)		(3,061)		(2,618)		(3,076)		(3,000)
UK bank levy		-		-		(338)		-		-		-		(316)		-
Litigation and conduct		(420)		(12)		(1,634)		(419)		(819)		(1,015)		(1,004)		(507)
Total operating expenses		(3,477)		(3,270)		(4,964)		(3,513)		(3,880)		(3,633)		(4,396)		(3,507)
Other net (expenses)/income		(18)		9		(5)		13		14		(83)		6		322
Profit/(loss) before tax		2,359		1,608		(975)		1,377		1,980		1,367		(80)		1,790
Tax charge		(696)		(485)		(92)		(299)		(474)		(614)		(172)		(564)
Profit/(loss) after tax		1,663		1,123		(1,067)		1,078		1,506		753		(253)		1,226
Non-controlling interests		(80)		(84)		(81)		(54)		(64)		(68)		(100)		(48)
Other equity holders		(89)		(89)		(92)		(63)		(61)		(65)		(64)		(61)
Attributable profit/(loss)		1,494		950		(1,240)		961		1,381		620		(417)		1,117
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Total assets		972.2		883.6		794.2		862.0		830.5		919.4		855.5		867.9
Risk weighted assets		319.6		312.2		304.1		316.3		308.1		318.0		312.8		318.8
Performance measures
Return on average tangible equity		15.0%		9.9%		(12.8%)		10.4%		15.5%		7.1%		(4.8%)		14.1%
Average tangible equity (£bn)		40.4		39.3		38.1		37.5		35.9		35.6		34.0		32.2
Cost: income ratio		55%		62%		110%		67%		62%		67%		92%		65%
Loan loss rate (bps)		45		42		57		39		38		35		52		41
Basic earnings/(loss) per share		9.0p		5.8p		(7.3p)		5.8p		8.4p		3.8p		(2.5p)		6.9p
Notable items	£m		£m		£m		£m		£m		£m		£m		£m
Own credit		292		(109)		(175)		195		282		128		(62)		44
Gain on disposal of Barclays’ share of Visa Europe Limited		615		-		-		-		-		-		-		-
Gains on US Lehman acquisition assets		-		-		-		-		496		-		-		461
Provisions for UK customer redress		(400)		-		(1,392)		(290)		(800)		(167)		(199)		8
Provisions for ongoing investigations and litigation including Foreign Exchange		-		-		(167)		(69)		-		(800)		(750)		(500)
Gain on valuation of a component of the defined retirement benefit liability		-		-		-		-		-		429		-		-
Losses on sale relating to the Spanish, Portuguese and Italian businesses		-		-		(15)		-		-		(97)		-		315

Excluding notable items, the Q216 Core return on average tangible equity was 11.0% (Q215: 14.0%) and the Core basic earnings per share was 6.6p (Q215: 7.7p).

1 Barclays Core represents the sum of three Operating Segments results outlined on page 24 to 27, each of which is prepared in accordance with IFRS 8 Operating Segments: Barclays UK, Barclays Corporate & International and Head Office.

   Barclays PLC – 2016 Interim Results 22     

Quarterly Results Summary

Barclays Non-Core	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Businesses		181		196		229		314		292		304		361		379
Securities and loans		(363)		(402)		(195)		(87)		-		(68)		(1,021)		275
Derivatives		(162)		(36)		(102)		(12)		(49)		(14)		(35)		(35)
Total income net of insurance claims		(344)		(242)		(68)		215		243		222		(695)		619
Credit impairment charges and other provisions		(26)		(29)		(32)		(41)		(20)		(41)		(13)		(42)
Net operating (expenses)/income		(370)		(271)		(100)		174		223		181		(708)		577
Operating expenses		(368)		(489)		(555)		(458)		(496)		(449)		(618)		(654)
UK bank levy		-		-		(88)		-		-		-		(102)		-
Litigation and conduct		(27)		(66)		(89)		(279)		(108)		(24)		(85)		(100)
Total operating expenses		(395)		(555)		(732)		(737)		(604)		(473)		(805)		(754)
Other net (expenses)/income		(324)		11		(268)		(195)		(54)		(18)		(90)		(657)
Loss before tax		(1,089)		(815)		(1,100)		(758)		(435)		(310)		(1,603)		(834)
Tax credit/(charge)		229		237		(72)		166		150		86		306		57
Loss after tax		(860)		(578)		(1,172)		(592)		(285)		(224)		(1,297)		(777)
Non-controlling interests		(12)		(10)		(19)		(21)		(21)		(20)		(33)		(25)
Other equity holders		(15)		(15)		(17)		(15)		(18)		(14)		(17)		(17)
Attributable loss		(887)		(603)		(1,208)		(628)		(324)		(258)		(1,347)		(819)
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances to banks and customers at amortised cost		68.5		55.4		51.8		57.1		60.4		73.1		70.7		72.4
Derivative financial instrument assets		262.8		249.7		213.7		243.3		223.9		305.6		288.9		252.6
Derivative financial instrument liabilities		253.4		239.1		202.1		235.0		216.7		299.6		280.6		243.2
Reverse repurchase agreements and other similar secured lending		0.1		0.7		3.1		8.5		16.7		43.7		50.7		75.3
Financial assets designated at fair value		15.4		23.4		21.4		22.8		22.1		25.0		25.5		27.3
Total assets		379.1		365.4		325.8		374.5		366.2		497.0		502.4		497.8
Customer deposits		17.4		19.3		20.9		25.8		27.9		29.9		30.8		32.2
Risk weighted assets		46.7		50.9		54.3		65.6		68.6		77.9		89.1		94.1
Performance measures
Average allocated tangible equity (£bn)		7.9		9.0		9.7		10.2		11.3		12.4		14.3		14.7
Period end allocated tangible equity (£bn)		7.8		8.5		8.5		10.2		10.1		11.7		13.1		14.1
Loan loss rate (bps)		14		21		25		27		13		17		10		27
Basic loss per share contribution		(5.2p)		(3.6p)		(7.2p)		(3.7p)		(1.9p)		(1.5p)		(8.2p)		(5.0p)
Notable items	£m		£m		£m		£m		£m		£m		£m		£m
Revision of ESHLA valuation methodology		-		-		-		-		-		-		(935)		-
Provisions for UK customer redress		-		-		(58)		-		(50)		(15)		(1)		(18)
Provisions for ongoing investigations and litigation including Foreign Exchange		-		-		-		(201)		-		-		-		-
Impairment of goodwill and other assets relating to businesses being disposed		-		-		(96)		-		-		-		-		-
Losses on sale relating to the Spanish, Portuguese and Italian business		-		-		(246)		(201)		-		(21)		(82)		(679)

Excluding notable items the Q216 Non-Core basic loss per share was 5.2p (Q215: 1.7p).

   Barclays PLC – 2016 Interim Results 23     

Quarterly Core Results by Business

Barclays UK	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income		1,943		1,803		1,834		1,874		1,804		1,831		1,882		1,898
Credit impairment charges and other provisions		(220)		(146)		(219)		(154)		(166)		(167)		(264)		(217)
Net operating income		1,723		1,657		1,615		1,720		1,638		1,664		1,618		1,681
Operating expenses		(947)		(952)		(920)		(925)		(970)		(649)		(1,041)		(1,048)
UK bank levy		-		-		(77)		-		-		-		(59)		-
Litigation and conduct		(399)		(1)		(1,466)		(76)		(801)		(168)		(211)		(32)
Total operating expenses		(1,346)		(953)		(2,463)		(1,001)		(1,771)		(817)		(1,311)		(1,080)
Other net (expenses)/income		(1)		-		1		1		1		(3)		(3)		(1)
Profit/(loss) before tax		376		704		(847)		720		(132)		844		304		600
Attributable profit/(loss)		141		467		(1,078)		541		(174)		664		208		442
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances to customers at amortised cost		166.0		166.2		166.1		166.7		166.1		166.0		165.3		164.3
Total assets		204.6		201.7		202.5		204.1		202.2		199.6		198.0		190.9
Customer deposits		181.7		179.1		176.8		173.4		171.6		168.7		168.3		165.9
Risk weighted assets		67.1		69.7		69.5		71.0		71.7		72.3		69.3		71.3
Performance measures
Return on average tangible equity		6.6%		20.5%		(46.5%)		23.3%		(7.3%)		28.3%		9.3%		19.4%
Average allocated tangible equity (£bn)		9.0		9.3		9.2		9.3		9.4		9.4		9.2		9.2
Cost: income ratio		69%		53%		134%		53%		98%		45%		70%		57%
Loan loss rate (bps)		52		34		51		36		40		40		62		51
Notable items	£m		£m		£m		£m		£m		£m		£m		£m
Gain on disposal of Barclays’ share of Visa Europe Limited		151		-		-		-		-		-		-		-
Provisions for UK customer redress		(400)		-		(1,391)		(73)		(800)		(167)		(199)		(24)
Gain on valuation of a component of the defined retirement benefit liability		-		-		-		-		-		296		-		-
Excluding notable items, the Q216 Barclays UK return on average tangible equity was 18.4% (Q215: 19.9%). Analysis of Barclays UK
Analysis of total income	£m		£m		£m		£m		£m		£m		£m		£m
Personal Banking		1,068		919		945		938		905		927		955		968
Barclaycard Consumer UK		463		491		505		552		503		505		518		530
Wealth, Entrepreneurs & Business Banking		412		393		384		384		396		399		409		400
Total income		1,943		1,803		1,834		1,874		1,804		1,831		1,882		1,898
Analysis of credit impairment charges and other provisions
Personal Banking		(44)		(42)		(39)		(36)		(50)		(69)		(57)		(57)
Barclaycard Consumer UK		(169)		(105)		(176)		(111)		(106)		(95)		(185)		(139)
Wealth, Entrepreneurs & Business Banking		(7)		1		(4)		(7)		(10)		(3)		(22)		(21)
Total credit impairment charges and other provisions		(220)		(146)		(219)		(154)		(166)		(167)		(264)		(217)
Analysis of loans and advances to customers at amortised cost		£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Personal Banking		134.7		134.7		134.0		134.5		134.4		134.3		133.8		133.3
Barclaycard Consumer UK		16.2		16.0		16.2		15.9		15.8		15.7		15.8		15.5
Wealth, Entrepreneurs & Business Banking		15.1		15.5		15.9		16.3		15.9		16.0		15.7		15.5
Total loans and advances to customers at amortised cost		166.0		166.2		166.1		166.7		166.1		166.0		165.3		164.3
Analysis of customer deposits
Personal Banking		134.8		132.9		131.0		128.4		126.7		123.4		124.5		122.2
Barclaycard Consumer UK		-		-		-		-		-		-		-		-
Wealth, Entrepreneurs & Business Banking		46.9		46.2		45.8		45.0		44.9		45.3		43.8		43.7
Total customer deposits		181.7		179.1		176.8		173.4		171.6		168.7		168.3		165.9

   Barclays PLC – 2016 Interim Results 24     

Quarterly Core Results by Business

Barclays Corporate & International

	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income		4,039		3,513		2,968		3,223		4,102		3,454		2,945		3,370
Credit impairment charges and other provisions		(240)		(269)		(303)		(235)		(206)		(178)		(217)		(176)
Net operating income		3,799		3,244		2,665		2,988		3,896		3,276		2,728		3,194
Operating expenses		(2,074)		(2,221)		(2,007)		(2,059)		(2,027)		(1,936)		(2,014)		(1,943)
UK bank levy		-		-		(253)		-		-		-		(248)		-
Litigation and conduct		(10)		(4)		(151)		(302)		(12)		(845)		(786)		(470)
Total operating expenses		(2,084)		(2,225)		(2,411)		(2,361)		(2,039)		(2,781)		(3,048)		(2,413)
Other net income		11		8		8		9		13		15		7		9
Profit/(loss) before tax		1,726		1,027		262		636		1,870		510		(313)		790
Attributable profit/(loss)		1,171		575		(24)		422		1,376		(16)		(673)		449
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances to banks and customers at amortised cost		230.6		215.9		184.1		220.3		210.5		224.7		193.6		206.5
Trading portfolio assets		68.1		64.3		61.9		72.8		75.3		92.7		87.3		91.5
Derivative financial instrument assets		181.4		150.1		111.5		133.7		116.0		172.8		149.6		128.7
Derivative financial instrument liabilities		187.5		155.4		119.0		142.0		124.8		182.3		157.3		134.6
Reverse repurchase agreements and other similar secured lending		19.7		19.1		24.7		68.0		57.4		57.1		62.9		81.5
Financial assets designated at fair value		68.3		59.6		46.8		5.6		5.6		5.2		5.7		10.9
Total assets		679.9		618.4		532.2		596.1		566.1		656.2		596.5		608.5
Customer deposits		226.5		213.1		185.6		207.0		197.7		206.2		188.2		205.0
Risk weighted assets		209.3		202.2		194.8		204.0		195.4		202.6		201.7		205.9
Performance measures
Return on average tangible equity		19.2%		9.5%		(0.2%)		7.0%		22.5%		(0.1%)		(10.4%)		7.4%
Average allocated tangible equity (£bn)		24.8		25.1		24.9		24.7		24.7		25.3		25.6		24.6
Cost: income ratio		52%		63%		81%		73%		50%		81%		103%		72%
Loan loss rate (bps)		41		50		65		42		38		32		44		34
Notable items	£m		£m		£m		£m		£m		£m		£m		£m
Gain on disposal of Barclays’ share of Visa Europe Limited		464		-		-		-		-		-		-		-
Gains on US Lehman acquisition assets		-		-		-		-		496		-		-		461
Provisions for UK customer redress		-		-		-		(218)		-		-		-		32
Provisions for ongoing investigations and litigation including Foreign Exchange		-		-		(145)		(39)		-		(800)		(750)		(500)
Gain on valuation of a component of the defined retirement benefit liability		-		-		-		-		-		133		-		-

Excluding notable items, the Q216 Barclays Corporate & International return on average tangible equity was 11.9% (Q215: 13.9%).

   Barclays PLC – 2016 Interim Results 25     

Quarterly Core Results by Business

Analysis of Barclays Corporate & International

Corporate and Investment Bank	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Analysis of total income
Credit		269		322		195		191		218		220		117		189
Equities		406		513		319		416		588		589		418		370
Macro		612		573		382		487		582		657		436		472
Markets		1,287		1,408		896		1,094		1,388		1,466		971		1,031
Banking fees		622		481		458		501		580		548		529		420
Corporate lending		312		296		312		377		387		285		334		334
Transactional banking		390		408		415		419		416		413		404		420
Banking		1,324		1,185		1,185		1,297		1,383		1,246		1,267		1,174
Other		-		3		16		(17)		495		1		(4)		460
Total income		2,611		2,596		2,097		2,374		3,266		2,713		2,234		2,665
Credit impairment (charges)/ releases and other provisions		(37)		(95)		(83)		(75)		(42)		1		(26)		(24)
Total operating expenses		(1,665)		(1,800)		(1,962)		(1,940)		(1,605)		(2,422)		(2,614)		(2,036)
Profit/(loss) before tax		909		701		52		358		1,620		292		(408)		606
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Risk weighted assets		178.4		172.6		167.3		177.4		170.0		177.1		175.2		180.5
Performance measures
Return on average tangible equity		9.5%		7.3%		(2.5%)		4.5%		22.3%		(2.5%)		(12.8%)		6.1%
Average allocated tangible equity (£bn)		21.3		21.6		21.8		21.7		21.7		22.3		22.5		21.6
Consumer, Cards and Payments
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income		1,428		917		871		849		836		741		711		705
Credit impairment charges and other provisions		(203)		(174)		(219)		(160)		(165)		(179)		(190)		(153)
Total operating expenses		(419)		(425)		(449)		(421)		(434)		(359)		(434)		(377)
Profit before tax		817		326		210		278		250		218		93		185
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Loans and advances to banks and customers at amortised cost		35.4		32.9		32.1		30.6		29.6		29.8		29.7		28.4
Customer deposits		46.9		44.2		41.8		39.8		38.4		40.1		37.9		37.1
Risk weighted assets		30.9		29.6		27.5		26.6		25.4		25.5		26.6		25.4
Performance measures
Return on average tangible equity		77.9%		23.4%		15.3%		24.7%		23.4%		17.5%		6.6%		17.3%
Average allocated tangible equity (£bn)		3.5		3.4		3.2		3.1		3.0		3.0		3.1		3.0

   Barclays PLC – 2016 Interim Results 26     

Quarterly Core Results by Business

Head Office	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income		334		(33)		(285)		169		312		142		(36)		100
Credit impairment (charges)/releases and other provisions		(2)		1		-		1		(1)		-		-		-
Net operating income/(expenses)		332		(32)		(285)		170		311		142		(36)		100
Operating expenses		(36)		(85)		(64)		(110)		(64)		(34)		(21)		(10)
UK bank levy		-		-		(8)		-		-		-		(9)		-
Litigation and conduct		(11)		(7)		(17)		(42)		(6)		(1)		(7)		(4)
Total operating expenses		(47)		(92)		(89)		(152)		(70)		(35)		(37)		(14)
Other net (expenses)/income		(28)		1		(14)		2		1		(95)		3		314
Profit/(loss) before tax		257		(123)		(388)		20		242		12		(70)		400
Attributable (loss)/profit		182		(92)		(140)		(1)		180		(28)		47		226
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Total assets1		87.7		63.4		59.4		61.8		62.2		63.6		61.0		68.5
Risk weighted assets1		43.2		40.3		39.7		41.3		41.0		43.1		41.8		41.6
Performance measures
Average allocated tangible equity (£bn)1		6.6		5.0		3.9		3.4		1.8		0.9		(0.8)		(1.8)
Notable items	£m		£m		£m		£m		£m		£m		£m		£m
Own credit		292		(109)		(175)		195		282		128		(62)		44
Provisions for ongoing investigations and litigation including Foreign Exchange		-		-		(23)		(29)		-		-		-		-
Losses on sale relating to the Spanish, Portuguese and Italian businesses		-		-		(15)		-		-		(97)		-		315

1 Includes Africa Banking assets held for sale and risk weighted assets.

   Barclays PLC – 2016 Interim Results 27     

Quarterly Africa Banking – Discontinued Operation Results

Africa Banking	Q216		Q116		Q415		Q315		Q215		Q115		Q414		Q314
Income statement information	£m		£m		£m		£m		£m		£m		£m		£m
Total income net of insurance claims		879		818		814		822		870		908		925		895
Credit impairment charges and other provisions		(133)		(111)		(93)		(66)		(103)		(91)		(79)		(74)
Net operating income		746		707		721		756		767		817		846		821
Operating expenses		(543)		(477)		(501)		(515)		(536)		(539)		(585)		(557)
UK bank levy		-		-		(50)		-		-		-		(44)		-
Litigation and conduct		-		-		-		-		-		-		(1)		(1)
Total operating expenses		(543)		(477)		(551)		(515)		(536)		(539)		(630)		(558)
Other net income		1		1		3		1		1		2		2		1
Profit before tax		204		231		173		242		232		280		218		264
Profit after tax		145		166		101		168		161		196		167		171
Attributable profit		70		86		25		85		88		104		85		82
Balance sheet information	£bn		£bn		£bn		£bn		£bn		£bn		£bn		£bn
Total assets		56.0		52.7		47.9		50.2		52.2		55.9		53.7		52.9
Risk weighted assets		36.1		33.9		31.7		33.8		34.4		37.3		36.7		36.2

   Barclays PLC – 2016 Interim Results 28     

Performance Management

Margins and balances

	Half year ended 30.06.16						Half year ended 30.06.15
	Net interest income		Average customer assets		Net interest margin		Net interest income		Average customer assets		Net interest margin
	£m		£m		%		£m		£m		%
Barclays UK		2,977		166,944		3.59		2,965		167,527		3.57
Barclays Corporate & International1		1,974		83,402		4.76		1,811		80,778		4.52
Total Barclays UK and Barclays Corporate & International		4,951		250,346		3.98		4,776		248,305		3.88
Other2		267						414
Total net interest income		5,218						5,190

1 Excludes Investment Banking related balances.

2 Other includes Investment Banking related balances, Head Office and Barclays Non-Core.

● Total Barclays UK and Barclays Corporate & International NII increased 4% to £4,951m due to:

– An increase in average customer assets to £250.3bn (2015: £248.3bn) driven by growth in Barclays Corporate & International.

– Net interest margin increased 10bps to 3.98% primarily driven by growth in interest earning lending in Barclaycard US. Barclays UK remained stable with higher margins on Personal Banking deposits, partially offset by lower lending margins. Group NII was flat at £5.2bn (2015: £5.2bn) including net structural hedge contributions of £0.7bn (2015: £0.7bn).

● 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 Barclays UK and Barclays Corporate & International

	Three months ended 30.06.16
	Net interest income		Average customer assets		Net interest margin
	£m		£m		%
Barclays UK		1,476		166,691		3.56
Barclays Corporate & International1		1,000		84,628		4.75
Total Barclays UK and Barclays Corporate & International		2,476		251,319		3.96
	Three months ended 31.03.16
Barclays UK		1,501		166,727		3.62
Barclays Corporate & International1		974		85,010		4.61
Total Barclays UK and Barclays Corporate & International		2,475		251,737		3.95
	Three months ended 31.12.15
Barclays UK		1,509		167,405		3.58
Barclays Corporate & International1		965		83,342		4.59
Total Barclays UK and Barclays Corporate & International		2,474		250,747		3.91
	Three months ended 30.09.15
Barclays UK		1,499		167,936		3.54
Barclays Corporate & International1		947		81,311		4.62
Total Barclays UK and Barclays Corporate & International		2,446		249,247		3.89

1 Excludes Investment Banking related balances.

   Barclays PLC – 2016 Interim Results 29     

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 2015 Annual Report or online at home.barclays/annualreport. Aside from the risks set out below 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.

The UK held a referendum on 23 June 2016 on whether it should remain a member of the European Union (“EU”). This resulted in a vote in favour of leaving the EU. The result of the referendum means that the long-term nature of the UK’s relationship with the EU is unclear and there is uncertainty as to the nature and timing of any agreement with the EU. In the interim, there is a risk of uncertainty for both the UK and the EU, which could adversely affect the economy of the UK and the other economies in which we operate. The potential risks associated with an exit from the EU have been carefully considered by the Board during the first half of 2016 and relevant actions taken where appropriate. Potential risks for Barclays include:

● Market Risk

– Potential for continued market volatility (notably FX and interest rates) given political uncertainty which could affect the value of Trading Book positions, Interest Rate Risk in the Banking Book, as well as securities held by Barclays for liquidity purposes. Changes in the long-term outlook for UK interest rates might also adversely affect UK Pension IAS19 liabilities

● Credit Risk

– Increased risk of a UK recession with lower growth, higher unemployment and falling UK house prices. This would likely negatively impact a number of Barclays’ portfolios, notably: higher Loan-to-Value mortgages, UK unsecured and Commercial Real Estate exposures

● Operational Risk

– Changes to current EU “Passporting” rights: the UK’s withdrawal from the EU may result in the loss of cross-border market access rights which would require Barclays to make alternative licensing arrangements in EU jurisdictions in which Barclays continues to operate

– The legal framework within which Barclays operates could change as the UK takes steps to replace laws currently in force, which are based on EU legislation and regulation

– Uncertainty over the UK’s future approach to EU freedom of movement will impact Barclays’ access to the EU talent pool, decisions on hiring from the EU of critical roles and rights to work of current Barclays non-UK EU citizens located in the UK and UK citizens located in the EU

● Funding Risk

– Potential for credit spread widening and reduced investor appetite for bank paper, which could negatively impact the cost of and/or access to funding

The following section gives an overview of the performance in Funding Risk – Liquidity, Funding Risk – Capital, Credit Risk and Market Risk for the period.

   Barclays PLC – 2016 Interim Results 30     

Funding Risk – Liquidity

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. All disclosures in this section exclude BAGL with the exception of the liquidity stress testing table below, which is reported on a stand-alone basis. For both internal and regulatory stress tests, BAGL is included within the Group

Liquidity stress testing

Compliance with internal and regulatory stress tests

	Barclays’ LRA (30 day Barclays specific requirement)1,2	Interim  CRDIV LCR2
	£bn	£bn
Eligible liquidity buffer	154.4	151.0
Net stress outflows	139.5	121.7
Surplus	14.9	29.3
Liquidity pool as a percentage of anticipated net outflows as at 30 June 2016	111%	124%
Liquidity pool as a percentage of anticipated net outflows as at 31 December 2015	131%	133%

1 Of the three stress scenarios monitored as part of the LRA, the 30 day Barclays specific scenario results in the lowest ratio at 111% (2015: 131%). This compares to 122% (2015: 144%) under the 90 day market-wide scenario and 126% (2015: 133%) under the 30 day combined scenario.

2 Includes Barclays Africa discontinued operations.

Barclays manages the Group’s liquidity position against the Group’s internally defined Liquidity Risk Appetite (LRA) and regulatory metrics, such as Interim CRDIV Liquidity Coverage Ratio (LCR). As at 30 June 2016, 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 LRA buffer duration as of 30 June 2016 was observed at 71 days.

Barclays estimated its Net Stable Funding Ratio (NSFR) at 106% (2015: 106%) based on the final NSFR guidelines published by the BCBS in October 2014.

   Barclays PLC – 2016 Interim Results 31     

Funding Risk – Liquidity

Composition of the Group liquidity pool

	Liquidity pool 30.06.16		Liquidity pool of which Interim CRDIV LCR-eligible						Liquidity pool 31.12.15
			Cash		Level 1		Level 2A
As at 30.06.16		£bn		£bn		£bn		£bn		£bn
Cash and deposits with central banks1		77		74		-		-		48
Government bonds
AAA rated		36		-		36		-		63
AA+ to AA- rated		8		-		8		-		11
Other government bonds		2		-		2		-		1
Total government bonds		46		-		46		-		75
Other
Supranational bonds and multilateral development banks		12		-		9		3		7
Agencies and agency mortgage-backed securities		7		-		7		-		8
Covered bonds (rated AA- and above)		3		-		2		1		4
Other		4		-		-		-		3
Total other		26		-		18		4		22
Total as at 30 June 2016		149		74		64		4
Total as at 31 December 2015		145		45		87		8

1 Of which over 97% (2015: over 97%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.

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 2016, 92% (2015: 94%) 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 30.06.16						As at 31.12.15
Funding of loans and advances to customers	Loans and advances to customers		Customer deposits		Loan to deposit ratio		Loan to deposit ratio
		£bn		£bn		%		%
Barclays UK		166		182
Barclays Corporate & International1		95		146
Non-Core1		20		2
Total funding Barclays UK, Barclays Corporate & International and Non-Core1		281		330		85%		86%
Investment Bank, Core and Non-Core		144		109
Total		425		439		97%		95%

1 Excludes Investment Banking related balances.

Barclays UK and Barclays Corporate & International (excluding Investment Bank) are largely funded by customer deposits.

The loan to deposit ratio for the Group was 97% (2015: 95%).

   Barclays PLC – 2016 Interim Results 32     

Funding Risk – Liquidity

Wholesale funding

Funding of other assets as at 30 June 2016

Assets	£bn		Liabilities	£bn
Trading portfolio assets		39	Repurchase agreements		100
Reverse repurchase agreements		60
Reverse repurchase agreements		33	Trading portfolio liabilities		33
Derivative financial instruments		445	Derivative financial instruments		442
Liquidity pool 1		96	Less than 1 year wholesale debt		70
Other unencumbered assets 2		121	Greater than 1 year wholesale debt and equity		150

● Trading portfolio assets are largely funded by repurchase agreements with 54% (2015: 57%) secured against extremely liquid fixed income assets³. The weighted average maturity of these repurchase agreements secured against less liquid assets was 94 days (2015: 77 days)

● The majority of reverse repurchase agreements are matched by repurchase agreements. As at 30 June 2016, 41% (2015: 55%) of matched book activity was secured against extremely liquid fixed income 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 Extremely liquid fixed income is defined as very highly rated sovereigns and agencies, typically rated AA+ or better. It excludes liquid fixed income, equities and other less liquid collateral.

   Barclays PLC – 2016 Interim Results 33     

Funding Risk – Liquidity

Composition of wholesale funding¹

In preparation for a Single Point of Entry resolution model, the Group continues to issue debt capital and term senior unsecured funding out of Barclays PLC, the holding company, replacing maturing debt in Barclays Bank PLC.

Maturity profile

	<1 month £bn		1-3 months £bn		3-6 months £bn		6-12 months £bn		<1 year £bn		1-2 years £bn		2-3 years £bn		3-4 years £bn		4-5 years £bn		>5 years £bn		Total £bn
Barclays PLC
Senior unsecured (public benchmark)		-		-		-		-		-		0.8		0.1		2.2		2.7		5.3		11.1
Senior unsecured (privately placed)		-		-		-		-		-		-		0.1		-		0.1		0.5		0.7
Subordinated liabilities		-		-		-		-		-		-		-		-		1.0		1.9		2.9
Barclays Bank PLC
Deposits from banks		18.2		1.3		1.5		1.4		22.4		-		-		-		0.3		0.3		23.0
Certificates of deposit and commercial paper		1.0		4.9		4.6		4.9		15.4		0.9		0.6		0.9		0.5		0.4		18.7
Asset backed commercial paper		4.0		3.1		0.1		-		7.2		-		-		-		-		-		7.2
Senior unsecured (public benchmark)		-		1.5		-		3.8		5.3		0.1		1.6		2.0		0.7		1.7		11.4
Senior unsecured (privately placed)2		1.1		1.7		3.0		4.9		10.7		6.1		4.4		3.4		2.2		8.9		35.7
Covered bonds		-		-		-		3.2		3.2		2.4		-		1.8		1.0		3.7		12.1
Asset backed securities		-		-		0.3		1.5		1.8		1.3		0.8		1.1		-		-		5.0
Subordinated liabilities		-		-		-		-		-		4.3		0.1		-		6.0		9.3		19.7
Other3		3.2		0.2		0.3		0.3		4.0		0.5		0.4		0.3		0.3		0.7		6.2
Total as at 30 June 2016		27.5		12.7		9.8		20.0		70.0		16.4		8.1		11.7		14.8		32.7		153.7
Of which secured		4.2		3.1		0.6		4.9		12.8		3.9		0.8		3.0		1.0		3.7		25.2
Of which unsecured		23.3		9.6		9.2		15.1		57.2		12.5		7.3		8.7		13.8		29.0		128.5
Total as at 31 December 2015		15.8		15.3		8.6		13.8		53.5		16.5		12.6		13.7		8.3		37.3		141.9
Of which secured		4.2		3.9		1.6		0.3		10.0		5.1		2.4		2.8		0.5		4.5		25.3
Of which unsecured		11.6		11.4		7.0		13.5		43.5		11.4		10.2		10.9		7.8		32.8		116.6

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 £29bn, £9bn of which matures within one year.

3 Primarily comprised of fair value deposits £5bn and secured financing of physical gold £1bn.

Outstanding wholesale funding includes £36bn (2015: £35bn) 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 £79bn (2015: £91bn).

Term financing

The Group issued £5.7bn of senior unsecured debt and capital transactions from the holding company in H116, of which £4.2bn and £0.6bn in public and private senior unsecured debt respectively, and £0.9bn of subordinated debt, while buying back or calling £6.1bn of public operating company senior debt and capital instruments.

   Barclays PLC – 2016 Interim Results 34     

Funding Risk – Liquidity

Credit rating as at 29 July 2016

Barclays Bank PLC	Standard & Poor’s		Moody’s		Fitch
Long-term		A- (Negative)		A2 (Negative)		A (Stable)
Short-term		A-2		P-1		F1
Standalone rating1		bbb+		baa2		a
Barclays PLC	Standard & Poor’s		Moody’s		Fitch
Long-term		BBB (Negative)		Baa3 (Negative)		A (Stable)
Short-term		A-2		P-3		F1

1 Refers to Standard & Poor’s Stand-Alone Credit Profile (SACP), Moody’s Baseline Credit Assessment (BCA) and Fitch’s Viability Rating (VR).

Following the EU referendum on 23 June 2016, all three credit rating agencies took rating actions on the UK sovereign. S&P and Moody’s also separately revised their view on the UK banking sector, and changed a number of UK banks’ outlooks to negative, including for Barclays. On 28 June 2016, Moody’s affirmed Barclays Bank PLC and Barclays PLC’s ratings at A2/P-1 and Baa3/P-3 respectively, but changed the outlook on the long-term and deposit ratings from stable to negative. After quarter end, S&P on 7 July 2016 took similar action by affirming Barclays Bank PLC and Barclays PLC’s ratings at A-/A-2 and BBB/A-2 respectively while changing the long-term rating outlooks from stable to negative. Ratings and outlooks for Barclays have remained unchanged with Fitch after the UK referendum.

Rating and Investment Information (R&I) affirmed Barclays Bank PLC and Barclays PLC’s ratings at A and A- respectively with stable outlooks on 14 July 2016.

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 (2015: £6bn) of liquidity pool assets against BAGL-specific anticipated stressed outflows. The liquidity pool consists of South African government bonds and Treasury bills

● BAGL loan to deposit ratio was 106% (2015: 102%)

   Barclays PLC – 2016 Interim Results 35     

Funding Risk – Capital

CRD IV capital

Barclays’ current regulatory requirement is to meet a fully loaded CRD IV CET1 ratio comprising the required 4.5% minimum CET1 ratio requirement and, phased in from 2016, a Combined Buffer Requirement currently expected to comprise of a Capital Conservation Buffer (CCB) of 2.5% and a Globally Systemically Important Institution (G-SII) buffer of 2%. In addition, Barclays’ Pillar 2A requirement as per the PRA’s Individual Capital Guidance (ICG) for 2016 based on a point in time assessment is 3.9% of which 56% will need to be met in CET1 form, equating to approximately 2.2% of RWAs. The Pillar 2A requirement is subject to at least annual review, and all capital, RWA and leverage calculations reflect Barclays’ interpretation of the current rules.

In addition, a Counter-Cyclical Capital Buffer (CCCB) is required. On 5 July 2016 the Financial Policy Committee announced that it expects to maintain a CCCB of 0% on UK exposures until at least June 2017. Other national authorities also determine the appropriate CCCBs that should be applied to exposures in their jurisdiction. During 2016, CCCBs will start to apply for Barclays’ exposures to other jurisdictions; however based on current exposures this is not expected to be material.

As at 30 June 2016, Barclays’ CET1 ratio was 11.6% which exceeds the 2016 transitional minimum requirement of 7.8% including the minimum 4.5% CET1 ratio requirement, 2.2% of Pillar 2A, a 0.625% CCB buffer, a 0.5% G-SII buffer and a 0% CCCB.

Capital ratios	As at 30.06.16		As at 31.03.16		As at 31.12.15
Fully loaded CET11,2		11.6%		11.3%		11.4%
PRA Transitional Tier 13,4		14.6%		14.3%		14.7%
PRA Transitional Total Capital3,4		18.7%		18.2%		18.6%
Capital resources	£m		£m		£m
Shareholders’ equity (excluding non-controlling interests) per the balance sheet		62,854		62,166		59,810
Less: other equity instruments (recognised as AT1 capital)		(5,314)		(5,312)		(5,305)
Adjustment to retained earnings for foreseeable dividends		(297)		(760)		(631)
Minority interests (amount allowed in consolidated CET1)		1,501		1,046		950
Other regulatory adjustments and deductions:
Additional value adjustments (PVA)		(2,092)		(2,124)		(1,602)
Goodwill and intangible assets		(8,552)		(8,457)		(8,234)
Deferred tax assets that rely on future profitability excluding temporary differences		(670)		(771)		(855)
Fair value reserves related to gains or losses on cash flow hedges		(3,046)		(2,497)		(1,231)
Excess of expected losses over impairment		(1,475)		(1,377)		(1,365)
Gains or losses on liabilities at fair value resulting from own credit		(177)		56		127
Defined-benefit pension fund assets		(204)		(859)		(689)
Direct and indirect holdings by an institution of own CET1 instruments		(50)		(54)		(57)
Other regulatory adjustments		(121)		(199)		(177)
Fully loaded CET1 capital		42,357		40,858		40,741
Additional Tier 1 (AT1) capital
Capital instruments and related share premium accounts		5,314		5,312		5,305
Qualifying AT1 capital (including minority interests) issued by subsidiaries		5,885		5,816		6,718
Other regulatory adjustments and deductions		(130)		(130)		(130)
Transitional AT1 capital5		11,069		10,998		11,893
PRA Transitional Tier 1 capital		53,426		51,856		52,634
Tier 2 (T2) capital
Capital instruments and related share premium accounts		2,890		1,855		1,757
Qualifying T2 capital (including minority interests) issued by subsidiaries		12,366		12,741		12,389
Other regulatory adjustments and deductions		(254)		(253)		(253)
PRA Transitional total regulatory capital		68,428		66,199		66,527

1 The transitional regulatory adjustments to CET1 capital are no longer applicable resulting in CET1 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 12.8% based on £47bn of transitional CRD IV CET1 capital and £366bn of RWAs. This is calculated as CET1 capital as adjusted for the transitional relief (£46.9bn), divided by CRD IV RWAs. The following transitional relief items are added back to CET1 capital: Goodwill and Intangibles (£3.4bn), Deferred tax asset (£0.3bn), Debt valuation adjustment (£0.1bn), Expected losses over impairment (£0.6bn) and Excess minority interest (£0.2bn).

3 The PRA transitional capital is based on the PRA Rulebook and accompanying supervisory statements.

4 As at 30 June 2016, Barclays’ fully loaded Tier 1 capital was £47,946m, and the fully loaded Tier 1 ratio was 13.1%. Fully loaded total regulatory capital was £64,405m and the fully loaded total capital ratio was 17.6%. 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.

   Barclays PLC – 2016 Interim Results 36     

Funding Risk – Capital

5 Of the £11.1bn transitional AT1 capital, fully loaded AT1 capital used for the leverage ratio comprises the £5.3bn capital instruments and related share premium accounts, £0.4bn qualifying minority interests and £0.1bn capital deductions. It excludes legacy Tier 1 capital instruments issued by subsidiaries that are subject to grandfathering.

   Barclays PLC – 2016 Interim Results 37     

Funding Risk – Capital

Movement in CET1 capital	Three months ended 30.06.16 £m		Six months ended 30.06.16 £m
Opening CET1 capital		40,858		40,741
Profit for the period attributable to equity holders		781		1,318
Own credit		(233)		(304)
Dividends paid and foreseen		(199)		(403)
Increase in retained regulatory capital generated from earnings		349		611
Net impact of share schemes		141		14
Available for sale reserves		(247)		(310)
Currency translation reserves		1,529		2,322
Other reserves		(600)		(628)
Increase in other qualifying reserves		823		1,398
Retirement benefit reserves		(805)		(759)
Defined-benefit pension fund asset deduction		655		485
Net impact of pensions		(150)		(274)
Minority interests		455		551
Additional value adjustments (PVA)		32		(490)
Goodwill and intangible assets		(95)		(318)
Deferred tax assets that rely on future profitability excluding those arising from temporary differences		101		185
Excess of expected loss over impairment		(98)		(110)
Direct and indirect holdings by an institution of own CET1 instruments		4		7
Other regulatory adjustments		78		56
Increase/(decrease) in regulatory capital due to adjustments and deductions		477		(119)
Closing CET1 capital		42,357		42,357

● The CET1 ratio increased in H116 to 11.6% (December 2015: 11.4%) reflecting an increase in CET1 capital of £1.6bn to £42.4bn whilst RWAs increased £8bn to £366bn

● Significant movements in CET1 capital were:

– A £0.6bn increase in regulatory capital generated from earnings after absorbing the impacts of own credit and dividends paid and foreseen

– A £1.4bn increase in other qualifying reserves including a £2.3bn increase in the currency translation reserve due to the appreciation of all major currencies against GBP

– A £0.6bn increase in minority interest as a result of the sale of 12.2% of BAGL’s issued share capital

– A £0.5bn increase in the PVA deduction largely as a result of changes in methodology in Q116

– A £0.3bn increase in the goodwill and intangibles deduction partly due to the acquisition of the JetBlue credit card portfolio within US consumer cards in Q116

   Barclays PLC – 2016 Interim Results 38     

Funding Risk – Capital

Risk weighted assets (RWAs) by risk type and business

	Credit risk				Counterparty credit risk						Market risk						Operational risk		Total RWAs
As at 30.06.16	Std £m		IRB £m		Std £m		IRB £m		Settle- ment risk £m		CVA £m		Std £m		IMA £m		£m		£m
Barclays UK		5,795		48,656		10		-		-		83		-		-		12,574		67,118
Barclays Corporate & International		50,607		82,219		11,754		14,401		57		4,078		9,923		9,008		27,257		209,304
Head Office1		8,038		22,954		33		935		-		524		414		2,279		8,003		43,180
Barclays Core		64,440		153,829		11,797		15,336		57		4,685		10,337		11,287		47,834		319,602
Barclays Non-Core		7,335		10,813		1,911		9,797		1		3,163		782		4,038		8,826		46,666
Barclays Group		71,775		164,642		13,708		25,133		58		7,848		11,119		15,325		56,660		366,268
As at 31.12.15
Barclays UK		6,562		50,763		26		-		-		-		-		-		12,174		69,525
Barclays Corporate & International		45,892		77,275		10,463		11,055		516		3,406		8,373		10,196		27,657		194,833
Head Office1		8,291		20,156		54		538		8		382		399		1,903		8,003		39,734
Barclays Core		60,745		148,194		10,543		11,593		524		3,788		8,772		12,099		47,834		304,092
Barclays Non-Core		8,704		12,797		1,653		9,430		1		7,480		1,714		3,679		8,826		54,284
Barclays Group		69,449		160,991		12,196		21,023		525		11,268		10,486		15,778		56,660		358,376

Movement analysis of risk weighted assets

Risk weighted assets	Credit risk £bn		Counterparty credit risk £bn		Market risk £bn		Operational risk £bn		Total RWAs £bn
As at 01.01.16		230.4		33.7		37.6		56.7		358.4
Book size		-		6.8		(1.1)		-		5.7
Acquisitions and disposals		(2.9)		-		-		-		(2.9)
Book quality		1.4		0.3		0.6		-		2.3
Model updates		(3.8)		(2.0)		(0.1)		-		(5.9)
Methodology and policy		(0.5)		0.1		(2.7)		-		(3.1)
Foreign exchange2		11.8		-		-		-		11.8
As at 30.06.16		236.4		38.9		34.3		56.7		366.3

1 Includes Africa Banking discontinued operations.

2 Foreign exchange movement does not include FX for modelled counterparty risk or modelled market risk.

RWAs increased £7.9bn to £366.3bn, driven by:

● Book size: RWAs increased £5.7bn, primarily driven by increases in the fair value of derivatives exposures as well as increased trading activity

● Acquisitions and disposals: RWAs decreased £2.9bn, primarily driven by disposals in Non-Core, including the sale of the Portuguese business

● Book quality: RWAs increased £2.3bn, primarily driven by changes in risk profile within Non-Core

● Model updates: RWAs decreased £5.9bn, primarily driven by model changes in Barclays UK following approval from the PRA

● Methodology and policy: RWAs decreased £3.1bn, primarily driven by the effect of collateral modelling for mismatched FX collateral on average CVA, and updates impacting credit conversion factors and standardised general market risk

● Foreign exchange movements increased RWAs by £11.8bn, primarily driven by the appreciation of ZAR, USD and EUR against GBP

   Barclays PLC – 2016 Interim Results 39     

Funding Risk – Capital

Leverage ratio and exposures

Effective 1 January 2016, Barclays is required to disclose a leverage ratio and an average leverage ratio applicable to the Group:

● The leverage ratio is consistent with the December 2015 method of calculation and has been included in the table below. The calculation uses the end point CRR definition of Tier 1 capital for the numerator and the CRR definition of leverage exposure. The current expected minimum fully loaded requirement is 3%, although this could be impacted by the Basel Consultation on the Leverage Framework

● The average leverage ratio as outlined by the PRA Supervisory Statement SS45/15 and the updated PRA rulebook is calculated as the capital measure divided by the exposure measure, where the capital and exposure measure is based on the average of the last day of each month in the quarter. The expected end point minimum requirement is 3.7% comprising of a 3% minimum requirement, a fully phased in G-SII additional leverage ratio buffer (G-SII ALRB) and a countercyclical leverage ratio buffer (CCLB)

At 30 June 2016, Barclays’ leverage ratio was 4.2% (December 2015: 4.5%) in line with the average leverage ratio of 4.1%, which exceeds the transitional minimum requirement for Barclays of 3.175%, comprising of the 3% minimum requirement and a phased in G-SII ALRB. In addition, this exceeds the expected end point minimum requirement of 3.7%.

Leverage exposure	As at 30.06.16 £bn		As at 31.03.16 £bn		As at 31.12.15 £bn
Accounting assets
Derivative financial instruments		445		401		328
Cash collateral		79		70		62
Reverse repurchase agreements and other similar secured lending		20		20		28
Financial assets designated at fair value1		89		85		77
Loans and advances and other assets		718		673		625
Total IFRS assets		1,351		1,249		1,120
Regulatory consolidation adjustments		(10)		(10)		(10)
Derivatives adjustments
Derivatives netting		(402)		(365)		(293)
Adjustments to cash collateral		(64)		(56)		(46)
Net written credit protection		19		16		15
Potential Future Exposure (PFE) on derivatives		142		134		129
Total derivatives adjustments		(305)		(271)		(195)
Securities financing transactions (SFTs) adjustments		18		18		16
Regulatory deductions and other adjustments		(16)		(16)		(14)
Weighted off-balance sheet commitments		117		112		111
Total leverage exposure		1,155		1,082		1,028
Fully loaded CET1 capital		42.4		40.9		40.7
Fully loaded AT1 capital		5.6		5.5		5.4
Fully loaded Tier 1 capital		47.9		46.3		46.2
Leverage ratio		4.2%		4.3%		4.5%

1 Included within financial assets designated at fair value are reverse repurchase agreements designated at fair value of £73bn (December 2015: £50bn).

   Barclays PLC – 2016 Interim Results 40     

Funding Risk – Capital

During H116, the leverage ratio decreased to 4.2% (December 2015: 4.5%) primarily driven by an increase in the leverage exposure of £127bn to £1,155bn partially offset by a £1.8bn increase in fully loaded Tier 1 capital to £47.9bn (Dec 2015: £46.2bn):

● Loans and advances and other assets increased by £93bn to £718bn. The increase was primarily driven by a £27bn increase in cash and balances at central banks due to an increase in the cash contribution to the Group liquidity pool in preparation for the EU referendum, a £26bn increase in settlement balances following increased client activity, lending growth of £14bn within Barclays Corporate & International and a £8bn increase in Africa banking assets held for sale reflecting the appreciation of ZAR against GBP

● Reverse repurchase agreements increased £15bn to £93bn, reflecting an increase in matched book trading

● Net derivative leverage exposure, excluding net written credit protection and PFE on derivatives, increased by £7bn to £58bn primarily due to an increase in IFRS derivatives driven by an increase in interest rate derivatives and foreign exchange derivatives, reflecting a decrease in the major forward interest rates and appreciation of major currencies against GBP

● PFE on derivatives increased by £13bn to £142bn primarily driven by the appreciation of major currencies against GBP, partially offset by compression activity, sale of positions and maturity of trades

● Weighted off balance sheet commitments increased by £6bn to £117bn primarily driven by the appreciation of major currencies against GBP

The average leverage exposure measure for H116 was £1,139bn resulting in an average leverage ratio of 4.1%. The CET1 capital held against the 0.175% transitional G-SII ALRB was £2.0bn. There is no current impact for the CCLB for the group.

Additional Barclays’ regulatory disclosures prepared in accordance with the EBA Guidelines on materiality, proprietary and confidentiality and on disclosure frequency under Articles 432(1), 432(2) and 433 of Regulation (EU) No 575/2013 (EBA/GL/2014/14) will be disclosed on 11 August 2016, available at home.barclays/results.

   Barclays PLC – 2016 Interim Results 41     

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 30th June 2016	United Kingdom		Europe		Americas		Africa and Middle East		Asia		Total
		£m		£m		£m		£m		£m		£m
Banks		5,638		14,091		16,107		1,214		5,421		42,471
Other financial institutions		31,030		23,964		62,836		365		5,135		123,330
Home loans		131,867		12,071		576		365		115		144,994
Cards, unsecured loans and other personal lending		29,215		4,188		19,364		666		92		53,525
Construction and property		20,799		1,121		1,581		135		127		23,763
Other		51,593		16,551		11,456		3,374		2,386		85,360
Net loans and advances to customers and banks		270,142		71,986		111,920		6,119		13,276		473,443
Impairment allowance		2,543		785		906		103		46		4,383
Gross loans and advances to customers and banks		272,685		72,771		112,826		6,222		13,322		477,826
Loans and advances at FV		10,235		359		820		9		25		11,448
As at 31st December 2015
Banks		7,344		9,796		12,979		2,053		4,657		36,829
Other financial institutions		18,521		16,910		39,796		1,826		3,676		80,729
Home loans		132,167		12,297		624		10,532		243		155,863
Cards, unsecured loans and other personal lending		28,800		4,665		17,487		7,713		1,497		60,162
Construction and property		18,565		803		1,834		2,072		245		23,519
Other		44,422		12,819		10,161		12,165		3,897		83,464
Net loans and advances to customers and banks		249,819		57,290		82,881		36,361		14,215		440,566
Impairment allowance		2,492		816		725		839		49		4,921
Gross loans and advances to customers and banks		252,311		58,106		83,606		37,200		14,264		445,487
Loans and advances at FV		16,281		290		813		504		25		17,913

Net loans and advances increased £32.9bn to £473.4bn. This included a £46.4bn increase in cash collateral and settlement balances, an £8.1bn increase due to the reclassification of ESHLA loans now recognised at amortised cost, lending growth of £14.5bn within Barclays Corporate & International, partially offset by the reclassification to held for sale of £30.6bn BAGL balances and a decrease of £6.0bn from the rundown and exit of other assets in Non-Core.

Other risks being monitored include exposures to Russia, China and the Oil and Gas sector. Net on-balance sheet exposure to the Oil and Gas sector was £4.7bn (2015: £4.4bn), with contingent liabilities and commitments to this sector of £13.9bn (2015: £13.8bn). Impairment charges were £88m (H115: £2m). The ratio of the Group’s net total exposures classified as strong or satisfactory was 93% (2015: 97%) of the total net exposure to credit risk to this sector.

   Barclays PLC – 2016 Interim Results 42     

Credit Risk

Analysis of retail and wholesale loans and advances and impairment

As at 30.06.16	Gross loans and advances £m		Impairment allowance £m		Loans and advances net of impairment £m		Credit Risk Loans £m		CRLs % of gross loans and advances %		Loan impairment charges1  £m		Loan loss rates bps
Barclays UK		155,013		1,619		153,394		2,228		1.4		360		47
Barclays Corporate & International		28,609		1,049		27,560		1,033		3.6		373		263
Head Office		-		-		-		-		-		-		-
Barclays Core		183,622		2,668		180,954		3,261		1.8		733		80
Barclays Non-Core		11,266		414		10,852		917		8.1		37		66
Total Group retail		194,888		3,082		191,806		4,178		2.1		770		80
Barclays UK		15,383		263		15,120		627		4.1		6		8
Barclays Corporate & International		203,725		686		203,039		1,379		0.7		135		13
Head Office		5,802		-		5,802		-		-		-		-
Barclays Core		224,910		949		223,961		2,006		0.9		141		13
Barclays Non-Core		58,028		352		57,676		455		0.8		16		6
Total Group wholesale		282,938		1,301		281,637		2,461		0.9		157		11
Group total		477,826		4,383		473,443		6,639		1.4		927		39
Traded loans		3,180		n/a		3,180
Loans and advances designated at fair value		11,448		n/a		11,448
Loans and advances held at fair value		14,628		n/a		14,628
Total loans and advances		492,454		4,383		488,071
As at 31.12.15
Barclays UK		153,539		1,556		151,983		2,238		1.5		682		44
Barclays Corporate & International		26,041		896		25,145		863		3.3		714		274
Head Office		17,412		539		16,873		859		4.9		273		157
Barclays Core		196,992		2,991		194,001		3,960		2.0		1,669		85
Barclays Non-Core		12,588		465		12,123		936		7.4		139		110
Total Group retail		209,580		3,456		206,124		4,896		2.3		1,808		86
Barclays UK		16,400		312		16,088		636		3.9		24		15
Barclays Corporate & International		159,776		617		159,159		1,331		0.8		201		13
Head Office		19,752		200		19,552		513		2.6		80		41
Barclays Core		195,928		1,129		194,799		2,480		1.3		305		16
Barclays Non-Core		39,979		336		39,643		441		1.1		(16)		(4)
Total Group wholesale		235,907		1,465		234,442		2,921		1.2		289		12
Group total		445,487		4,921		440,566		7,817		1.8		2,097		47
Traded loans		2,474		n/a		2,474
Loans and advances designated at fair value		17,913		n/a		17,913
Loans and advances held at fair value		20,387		n/a		20,387
Total loans and advances		465,874		4,921		460,953

1 Excluding impairment charges on available for sale investments and reverse repurchase agreements. H116 impairment charges represent 6 months charge, whereas December 2015 impairment charges represent 12 months charge.

Loans and advances to customers and banks at amortised cost net of impairment increased to £473.4bn (2015: £440.6bn).

● Barclays Corporate and International increased by £46.3bn to £230.6bn reflecting a £31.8bn increase in cash collateral and settlement balances and lending growth of £14.5bn

   Barclays PLC – 2016 Interim Results 43     

Credit Risk

● Barclays Non-Core increased £16.8bn to £68.5bn driven by a £14.6bn increase in cash collateral and settlement balances, an £8.1bn increase due to the reclassification of ESHLA loans now recognised at amortised cost, partially offset by a £6.0bn decrease from the reclassification of Asia wealth and investment management business, French retail banking operations and Southern European cards businesses to assets held for sale, and the rundown and exit of historical investment bank assets

● Head office decreased by £30.6bn to £5.8bn driven by the reclassification of BAGL balances to held for sale

Analysis of potential Credit Risk Loans and coverage ratios

	CRLs				PPLs				PCRLs
	As at 30.06.16 £m		As at 31.12.15 £m		As at 30.06.16 £m		As at 31.12.15 £m		As at 30.06.16 £m		As at 31.12.15 £m
Barclays UK		2,228		2,238		301		382		2,529		2,620
Barclays Corporate & International		1,033		863		135		117		1,168		980
Head Office1		-		859		-		154		-		1,013
Barclays Core		3,261		3,960		436		653		3,697		4,613
Barclays Non-Core		917		936		11		26		928		962
Total Group retail		4,178		4,896		447		679		4,625		5,575
Barclays UK		627		637		58		127		685		764
Barclays Corporate & International		1,379		1,330		1,119		877		2,498		2,207
Head Office1		-		513		-		245		-		758
Barclays Core		2,006		2,480		1,177		1,249		3,183		3,729
Barclays Non-Core		455		441		42		122		497		563
Total Group wholesale		2,461		2,921		1,219		1,371		3,680		4,292
Group total		6,639		7,817		1,666		2,050		8,305		9,867
	Impairment allowance				CRL coverage				PCRL coverage
	As at 30.06.16 £m		As at 31.12.15 £m		As at 30.06.16 %		As at 31.12.15 %		As at 30.06.16 %		As at 31.12.15 %
Barclays UK		1,619		1,556		72.7%		69.5%		64.0%		59.4%
Barclays Corporate & International		1,049		897		101.5%		103.9%		89.8%		91.5%
Head Office1		-		539		-		62.7%		-		53.2%
Barclays Core		2,668		2,992		81.8%		75.6%		72.2%		64.9%
Barclays Non-Core		414		464		45.1%		49.6%		44.6%		48.2%
Total Group retail		3,082		3,456		73.8%		70.6%		66.6%		62.0%
Barclays UK		263		312		41.9%		49.0%		38.4%		40.8%
Barclays Corporate & International		686		617		49.7%		46.4%		27.5%		28.0%
Head Office1		-		200		-		39.0%		-		26.4%
Barclays Core		949		1,129		47.3%		45.5%		29.8%		30.3%
Barclays Non-Core		352		336		77.4%		76.2%		70.8%		59.7%
Total Group wholesale		1,301		1,465		52.9%		50.2%		35.4%		34.1%
Group total		4,383		4,921		66.0%		63.0%		52.8%		49.9%

1 Includes Barclays Africa discontinued operations as at 31 December 2015.

● Credit Risk Loans (CRLs) decreased 15% to £6.6bn

● CRLs decreased 16% to £2.5bn in wholesale portfolios and 15% to £4.2bn in retail portfolios. This is driven by reclassification of BAGL balances to held for sale

   Barclays PLC – 2016 Interim Results 44     

Credit Risk

Analysis of forbearance programmes

	Balances				Impairment allowance				Allowance coverage
	As at 30.06.16 £m		As at 31.12.15 £m		As at 30.06.16 £m		As at 31.12.15 £m		As at 30.06.16 %		As at 31.12.15 %
Barclays UK		971		1,036		221		191		22.8		18.4
Barclays Corporate & International		231		185		64		46		27.7		24.9
Barclays Core		1,202		1,221		285		237		23.7		19.4
Barclays Non-Core		373		342		56		63		15.0		18.4
Head Office1		-		210		-		29		-		13.8
Total retail		1,575		1,773		341		329		21.7		18.6
Barclays UK		413		412		30		32		7.3		7.8
Barclays Corporate & International		1,723		1,505		228		196		13.2		13.0
Barclays Core		2,136		1,917		258		228		12.1		11.9
Barclays Non-Core		150		287		59		146		39.3		50.9
Head Office1		-		228		-		17		-		7.5
Total wholesale		2,286		2,432		317		391		13.9		16.1
Group total		3,861		4,205		658		720		17.0		17.1

1 Includes Barclays Africa discontinued operations as at 31 December 2015.

Retail balances on forbearance reduced by 11% to £1.6bn primarily due to the non-inclusion of discontinued operations (BAGL) and continued improvement in Barclays UK, offset by a small increase in Barclays Corporate & International.

● Barclays UK: Forbearance balances decreased 6% to £971m following continued improvement in card and mortgage portfolios driven by the benign economic environment

● Barclays Corporate & International: Balances increased primarily due to US cards, driven by book growth, strategy changes and FX movements

Wholesale balances on forbearance decreased by 6% to £2.3bn primarily due to the non-inclusion of discontinued operations (BAGL), offset by an increase in Barclays Corporate & International.

   Barclays PLC – 2016 Interim Results 45     

Credit Risk

Analysis of specific core portfolios/businesses

UK home loans

The UK home loan portfolio primarily comprises first lien mortgages and accounts for 98% (2015: 98%) of total home loans in the Group’s retail core 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 30.06.16	£m		%		%		%		%		%
Barclays UK - UK home loans		127,433		0.2		0.6		0.3		0.4		10.2
As at 31.12.15
Barclays UK - UK home loans		127,750		0.2		0.7		0.3		0.4		10.1

Home loans principal portfolios - distribution of balances by LTV¹ 

	Distribution of balances				Impairment coverage ratio				Non-performing proportion of outstanding balances				Non-performing balances impairment coverage ratio
	%		%		%		%		%		%		%		%
As at	30.06.16		31.12.15		30.06.16		31.12.15		30.06.16		31.12.15		30.06.16		31.12.15
Barclays UK - UK Home Loans
<=75%		93.0		92.1		0.1		0.1		0.6		0.6		4.7		4.7
>75% and <=80%		3.1		3.4		0.2		0.2		0.7		1.0		14.7		13.5
>80% and <=85%		1.8		2.1		0.3		0.3		1.0		1.0		18.4		16.7
>85% and <=90%		1.1		1.4		0.4		0.3		1.2		1.3		19.9		15.7
>90% and <=95%		0.6		0.6		0.6		0.6		1.8		1.8		26.6		25.7
>95% and <=100%		0.2		0.2		1.2		1.3		3.4		4.0		29.8		25.4
>100%		0.2		0.2		3.8		3.4		6.2		7.0		42.5		35.6

Home loans principal portfolios - Average LTV 

	Barclays UK UK home loans
As at	30.06.16 %		31.12.15 %
Portfolio marked to market LTV:
Average LTV: Balance weighted %		47.2		49.2
Average LTV: Valuation weighted %		35.3		37.3
For > 100% LTV:
Balances £m		280		310
Marked to market collateral £m		238		260
Average LTV: Balance weighted %		122.0		123.0
Average LTV: Valuation weighted %		117.4		118.5
% Balances in recovery book		5.1		5.6

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 2016.

Barclays UK: Arrears and charge-off rates remained stable, reflecting the continuing low base rate environment. Balance weighted LTV reduced to 47.2% (2015: 49.2%) as average house prices increased. This increase also contributed to a 10% reduction in home loans with LTV >100% to £280m (2015: £310m).

   Barclays PLC – 2016 Interim Results 46     

Credit Risk

Within the UK home loans portfolio:

● Owner-occupied interest-only home loans comprised 31% (2015: 32%) of total balances. The average balance weighted LTV on these loans reduced to 41.8% (2015: 44.7%), and >90 day arrears remained stable at 0.2% (2015: 0.2%)

● Buy-to-let home loans comprised 9% (2015: 9%) of total balances. The average balance weighted LTV reduced to 51.7% (2015: 54.6%), and >90 day arrears reduced to 0.1% (2015: 0.2%)

UK home loans - new lending
	Barclays UK - UK home loans
	30.06.16		30.06.15
New bookings (£m)		9,990		9,549
New mortgages proportion above 85% LTV (%)		8.7		8.3
Average LTV on new mortgages: balance weighted (%)		63.2		62.3
Average LTV on new mortgages: valuation weighted (%)		54.8		53.6

Exposures to interest-only home loans

The Group provides interest-only mortgages, mainly in the UK. Interest-only mortgages account for £50bn (2015: £50bn) of the total balance of £127bn (2015: £128bn) of UK home loans. This comprised £40bn (2015: £40bn) to owner-occupiers, and £10bn (2015: £10bn) to buy-to-let customers.

Of the £40bn exposure to owner-occupiers, £33bn (2015: £34bn) was interest-only, with the remaining £7bn (2015: £6bn) representing the interest-only component of Part and Part¹ mortgages.

Exposure to interest only owner-occupied home loans	As at 30.06.16		As at 31.12.15
Interest only balances (£m)		33,029		33,901
Total impairment coverage (bps)		11		11
Marked to market LTV: Balance weighted %		41.8		44.7
Marked to market LTV: Valuation weighted %		32.2		34.7

1 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 £6.6bn (2015: £6.2bn) to the total interest-only balance of £39.6bn (2015: £40.1bn). Total exposure on the part and part book is £9.4bn (2015: £9.9bn) and represents 7% of total UK home loans portfolio.

   Barclays PLC – 2016 Interim Results 47     

Credit Risk

Credit cards, overdrafts and unsecured loans

● The principal portfolios listed below accounted for 93% (2015: 94%) of the Group’s core 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 30.06.16	£m		%		%		%		%		%
Barclays UK
UK cards1		17,592		2.3		1.2		4.3		4.0		84.2
UK personal loans		6,150		1.9		0.8		3.0		6.5		74.4
Barclays Corporate & International
US cards1		19,454		2.2		1.0		4.4		2.2		83.5
Barclays Partner Finance		2,626		1.4		0.6		2.5		2.6		88.5
Germany cards		1,657		2.6		1.0		3.7		2.7		79.5
As at 31.12.15
Barclays UK
UK cards1		18,502		2.3		1.2		5.2		3.6		82.6
UK personal loans		5,476		1.9		0.8		3.0		7.5		73.9
Barclays Corporate & International
US cards1		16,699		2.2		1.1		3.9		2.0		84.8
Barclays Partner Finance		3,986		1.5		0.6		2.4		2.5		85.2
Germany cards		1,419		2.3		1.0		3.8		2.7		81.2

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.

UK cards: In 2016, both early and late stage arrears remained stable within UK cards. The lower charge-off rate and higher recoveries proportion of outstanding reflected decreased debt sale activity during H1 16. The uplift in recoveries coverage ratio was due to increased net inflows into the recovery book that have a higher LGD rate because of longer expectation of cash flow.

UK personal loans: Arrears and charge-off rates remained stable reflecting the benign economic conditions. There was a drop in recoveries balances across the whole portfolio mainly due to the Barclayloan portfolio which continues to perform well. Recovery impairment coverage rate remained stable at 74.4%.

US cards: Arrears rates remained broadly in line with 2015. Higher charge-off rates were driven by a change in the product mix and the decrease in recoveries impairment coverage ratio was due to a model enhancement providing a more accurate representation of the future recovery expectation.

Barclays Partner Finance: Portfolio arrears and charge-off rates remained broadly steady during the first half of 2016. The recoveries impairment coverage has increased as a result of an additional impairment for customers reclassified into recoveries as per contractual ageing.

   Barclays PLC – 2016 Interim Results 48     

Credit Risk

Wholesale portfolios

● The UK CRE portfolio includes property investment, development, trading, and house builders but excludes social housing and contractors

	Total
UK CRE summary	30.06.16		31.12.15
UK CRE loans and advances (£m)		12,292		11,617
Past due balances (£m)		174		183
Balances past due as % of UK CRE balances (%)		1.4		1.6
Impairment allowances (£m)		88		99
Past due coverage ratio		50%		54%
Total collateral (£m)1		26,442		27,062
Six months ended	30.06.16		30.06.15
Impairment charge (£m)		(1)		5

Maturity analysis of exposure to UK CRE

	Contractual maturity of UK CRE loans and advances at amortised cost
As at	Past due balances		Not more than six months		Over six months but not more than one year		Over one year but not more than two years		Over two years but not more than five years		Over five years but not more than ten years		Over ten years		Total loans & advances
30.06.16	£m		£m		£m		£m		£m		£m		£m		£m
Balances		174		761		609		1,365		5,927		1,450		2,006		12,292
31.12.15
Balances		183		801		751		941		5,779		1,076		2,087		11,617

UK CRE LTV analysis	Balances				Balances as proportion of total
As at	30.06.16		31.12.15		30.06.16		31.12.15
Group	£m		£m		%		%
<=75%		8,643		8,655		70		75
>75% and <=100%		276		390		2		3
>100% and <=125%		87		119		1		1
>125%		21		47		-		-
Unassessed balances2		2,152		1,636		18		14
Unsecured balances		1,113		770		9		7
Total		12,292		11,617		100		100

1 Excludes collateral for unassessed balances.

2 Corporate Banking balances under £4m as at June 2016 and under £1m as at December 2015.

Total loans and advances at amortised cost increased 6% to £12,292m (2015: £11,617m) with growth limited to high quality assets. The UK CRE businesses operate to specific lending criteria and the portfolio of assets is continually monitored through a range of mandates and limits.

Unsecured balances primarily relate to working capital facilities granted to CRE companies.

   Barclays PLC – 2016 Interim Results 49     

Credit Risk

Group exposures to Eurozone countries

● The following table shows Barclays’ most significant exposure (above £4bn net on-balance sheet exposure) to Eurozone countries. The basis of preparation is consistent with that described in the 2015 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

● The Italian residential mortgages of £10.0bn (December 2015: £9.5bn) are secured on residential property with average balance weighted marked to market LTVs of 61.4% (December 2015: 60.6%) and CRL coverage of 32% (December 2015: 31%). 90 day arrears and gross charge-off rates remained stable at 1.2% (December 2015: 1.2%) and 0.7% (December 2015: 0.7%) respectively

	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 30.06.16	£m		£m		£m		£m		£m		£m		£m		£m
Italy		2,588		1,894		820		10,003		646		15,951		20,997		2,735
Germany		7,062		3,879		1,288		8		2,716		14,953		55,561		10,716
France		6,395		4,895		1,225		717		157		13,389		43,195		7,210
Netherlands		1,560		1,119		1,146		4		4		3,833		12,475		3,378
Ireland		56		1,449		2,127		30		81		3,743		6,280		2,782
Portugal		1		669		111		6		84		871		1,036		1,200
As at 31.12.15
Italy		1,708		2,283		1,039		9,505		675		15,210		20,586		2,701
Germany		7,494		3,621		1,602		9		2,313		15,039		50,930		8,029
France		7,426		4,967		805		1,472		152		14,822		43,427		7,436
Netherlands		2,254		1,177		1,280		4		-		4,715		16,808		2,970
Ireland		9		2,824		1,282		37		51		4,203		7,454		2,673
Portugal		87		3,346		152		6		700		4,291		4,555		1,299

   Barclays PLC – 2016 Interim Results 50     

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 and Head Office and it is calculated with one day holding period

● 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 class1
Six months ended	30.06.16						31.12.15						30.06.15
	Daily Avg		High2		Low2		Daily Avg		High2		Low2		Daily Avg		High2		Low2
	£m		£m		£m		£m		£m		£m		£m		£m		£m
Credit risk		15		23		9		12		17		9		10		13		8
Interest rate risk		6		10		4		6		14		4		7		12		4
Equity risk		6		10		4		7		18		4		9		17		5
Basis risk		5		6		3		3		4		2		3		4		3
Spread risk		3		5		2		3		4		2		3		6		2
Foreign exchange risk		3		4		2		3		6		1		3		5		1
Commodity risk		2		4		1		2		3		1		2		2		1
Inflation risk		2		3		2		2		4		2		3		5		2
Diversification effect1		(22)		-		-		(21)		-		-		(22)		-		-
Total management VaR		20		29		13		17		25		12		18		25		13

1 Includes Barclays Africa discontinued operations.

2 The high and low VaR figures reported for each category did not necessarily occur on the same day as the high and low VaR reported as a whole. Consequently a diversification effect balance for the high and low VaR figures would not be meaningful and is therefore omitted from the above table.

During H116 average total management VaR increased by 18% to £20m, largely due to credit VaR which increased by 25% to £15m, due to Barclays own credit spread widening materially. Basis VaR increased due to changes in cross currency positioning in our trading books.

The year-on-year decrease in equity VaR is mainly due to reduction in activity in capital markets.

   Barclays PLC – 2016 Interim Results 51     

Market Risk

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 30 June 2016 and 31 December 2015. The sensitivity has been measured using the Annual Earnings at Risk (AEaR) methodology. Note that this metric assumes an instantaneous parallel change to interest rate forward curves. The model floors shocked rates at zero, therefore changes in NII sensitivity are only observed for forward rates of above zero. The main model assumptions are: (i) one year time horizon; (ii) balance sheet is kept at the current level i.e. no growth assumed; (iii) balances are adjusted for an assumed behavioural profile e.g. to take into account that a customer may remortgage or sell the asset before the contractual maturity of their mortgage; and (iv) behavioural assumptions are kept unchanged in the upward and downward shocks.

Net interest income sensitivity (AEaR) by business
	Barclays UK		Barclays Corporate & International		Non-Core		Total
Period ended 30.06.161,2,3	£m		£m		£m		£m
+50bps		40		70		3		113
+25bps		23		51		2		76
-25bps		(82)		(109)		-		(191)
-50bps		(101)		(137)		-		(238)
Period ended 31.12.152,3
+50bps		31		38		7		76
+25bps		16		21		5		42
-25bps		(50)		(41)		-		(91)
-50bps		(141)		(152)		-		(293)

1 Non-Core figures are as at May 2016.

2 Excluding investment banking operations.

3 Head Office banking books (predominantly Treasury) are excluded as positions relate to liquidity and funding management activities. Treasury’s positions are sensitive to negative interest rates so the modelled floor assumption does not fully reflect the expected NII sensitivity. Head Office also includes the firm’s equity structural hedge programme which would create a positive earnings sensitivity as rates increase. The overall Head Office impact of a +/- 25 bps move is £(5)m / £3m respectively.

During H116 the GBP rate environment changed significantly, with a 25 bps GBP base rate cut implied in Q316. This means that the modelled base case already takes into account a lower UK rates outlook. A further 25bps downward shock is therefore a parallel fall in the forward rate curve from this point, which implies interest rates fall to zero (where the model floor assumption comes into effect).

Within Barclays UK and Barclays Corporate & International, margin compression risk has increased on customer liabilities versus FY15 as lower forecast base rates mean customer pricing is closer to the product rate floor level, beyond which the model assumes it would not pass on further rate reductions. As the impact of the first-25bps shock fully captures the margin compression on the base rate linked products there is a smaller incremental impact from the -50bps shock.

   Barclays PLC – 2016 Interim Results 52     

Market Risk

Volatility of the Available for Sale (AFS) portfolio in the liquidity pool

Changes in value of Available for Sale exposures flow directly through capital via equity reserve. The volatility of the value of the Available for Sale investments in the liquidity pool is captured and managed through a value measure rather than an earning measure, i.e. the Non-Traded Market Risk VaR.

Although the underlying methodology to calculate the Non-Traded VaR is similar to the one used in Traded Management VaR, the two measures are not directly comparable. The Non-Traded VaR represents the volatility to capital driven by the AFS exposures. These exposures are in the banking book and do not meet the criteria for trading book treatment.

Analysis of the AFS portfolio volatility in the liquidity pool

Six months ended

30.06.16

31.12.15

30.06.15

Daily Avg

High

Low

Daily Avg

High

Low

Daily Avg

High

Low

£m

£m

£m

£m

£m

£m

£m

£m

£m

Non-Traded Market Value at Risk (daily, 95%) for the six months ended

42

46

35

42

48

37

41

44

39

The Non-Traded VaR is mainly driven by volatility of interest rates in developed markets.

During H116, average VaR remained stable as increased asset swap volatility was offset by a reduction in available for sale exposures. In Q216, available for sale VaR fell due to the reclassification of UK Gilts previously classified as available for sale investments to held to maturity to reflect the intention with these assets.

   Barclays PLC – 2016 Interim Results 53     

Statement of Directors’ Responsibilities

Each of the Directors (the names of whom are set out below) confirm that the condensed consolidated interim financial statements set out on pages 55 to 60 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 2016 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

● any related party transactions in the six months ended 30 June 2016 that have materially affected the financial position or performance of Barclays during that period and any changes in the related party transactions described in the 2015 Annual Report that could have a material effect on the financial position or performance of Barclays in the six months ended 30 June 2016.

Signed on behalf of the Board by

James E Staley	Tushar Morzaria
Group Chief Executive	Group Finance Director

Barclays PLC Board of Directors:

Chairman John McFarlane Executive Directors James E Staley (Group Chief Executive) Tushar Morzaria (Group Finance Director) Non-executive Directors Mike Ashley Tim Breedon CBE Crawford Gillies Sir Gerry Grimstone Reuben Jeffery III Dambisa Moyo Diane de Saint Victor Diane Schueneman Stephen Thieke

   Barclays PLC – 2016 Interim Results 54     

Condensed Consolidated Financial Statements

Condensed consolidated income statement (unaudited)

			Half year ended		Half year ended
Continuing operations			30.06.16		30.06.15
	Notes1		£m		£m
Net interest income				5,218		5,190
Net fee and commission income				3,299		3,463
Net trading income				1,545		2,549
Net investment income				914		895
Net premiums from insurance contracts				159		188
Other income				17		(7)
Total income				11,152		12,278
Net claims and benefits incurred on insurance contracts				(139)		(167)
Total income net of insurance claims				11,013		12,111
Credit impairment charges and other provisions				(931)		(779)
Net operating income				10,082		11,332
Staff costs		2		(4,601)		(4,292)
Administration and general expenses		3		(3,096)		(4,298)
Operating expenses				(7,697)		(8,590)
(Loss) on disposal of undertakings, share of results of associates & joint ventures, and impairment on assets held for sale				(322)		(140)
Profit before tax				2,063		2,602
Tax		5		(715)		(852)
Profit after tax in respect of continuing operations				1,348		1,750
Profit after tax in respect of discontinued operations		4		311		358
Profit after tax				1,659		2,108
Attributable to:
Ordinary equity holders of the parent:				1,110		1,611
Other equity holders2				208		159
Total equity holders of the parent2				1,318		1,770
Non-controlling interests in respect of continuing operations				186		173
Non-controlling interests in respect of discontinued operations		6		155		165
Profit after tax				1,659		2,108
Earnings per share
Basic earnings per ordinary share2		7		6.9p		9.9p
Basic earnings per ordinary share in respect of continuing operations				6.0p		8.7p
Basic earnings per ordinary share in respect of discontinued operations				0.9p		1.2p
Diluted earnings per ordinary share2		7		6.8p		9.7p

1 For notes to the Financial Statements see pages 61 to 97.

2 The profit after tax attributable to other equity holders of £208m (H115: £159m) is offset by a tax credit recorded in reserves of £58m (H115: £32m). The net amount of £150m (H115: £127m), along with NCI, is deducted from profit after tax in order to calculate earnings per share.

   Barclays PLC – 2016 Interim Results 55     

Condensed Consolidated Financial Statements

Condensed consolidated statement of comprehensive income (unaudited)

			Half year ended 30.06.16		Half year ended 30.06.15
	Notes1		£m		£m
Profit after tax				1,659		2,108
Profit after tax in respect of continuing operations				1,348		1,750
Profit after tax in respect of discontinued operations				311		358
Other comprehensive income/(loss) that may be recycled to profit or loss from continuing operations:
Currency translation reserve		17		1,789		(228)
Available for sale reserve		17		(311)		(295)
Cash flow hedge reserve		17		1,747		(613)
Other				(2)		41
Other comprehensive profit/(loss) that may be recycled to profit or loss				3,223		(1,095)
Other comprehensive loss not recycled to profit or loss:
Retirement benefit remeasurements		14		(759)		(94)
Total comprehensive income for the period, net of tax from continuing operations				3,812		561
Total comprehensive income/(loss) for the period, net of tax from discontinued operations				1,296		(35)
Total comprehensive income for the period				5,108		526
Attributable to:
Equity holders of the parent				4,358		325
Non-controlling interests				750		201
Total comprehensive income for the period				5,108		526

1 For notes, see pages 61 to 97.

   Barclays PLC – 2016 Interim Results 56     

Condensed Consolidated Financial Statements

Condensed consolidated balance sheet (unaudited)

			As at		As at
Assets			30.06.16		31.12.15
	Notes1		£m		£m
Cash and balances at central banks				76,866		49,711
Items in the course of collection from other banks				1,101		1,011
Trading portfolio assets				76,543		77,348
Financial assets designated at fair value				88,883		76,830
Derivative financial instruments		10		445,180		327,709
Financial investments		9		83,100		90,267
Loans and advances to banks				48,117		41,349
Loans and advances to customers				425,326		399,217
Reverse repurchase agreements and other similar secured lending				20,216		28,187
Prepayments, accrued income and other assets				2,895		3,010
Investments in associates and joint ventures				598		573
Property, plant and equipment				2,841		3,468
Goodwill				3,921		4,605
Intangible assets				3,439		3,617
Current and deferred tax assets		5		4,630		4,910
Retirement benefit assets		14		173		836
Assets included in disposal groups classified as held for sale		4		67,453		7,364
Total assets				1,351,282		1,120,012
Liabilities
Deposits from banks				62,386		47,080
Items in the course of collection due to other banks				784		1,013
Customer accounts				438,530		418,242
Repurchase agreements and other similar secured borrowing				25,418		25,035
Trading portfolio liabilities				32,643		33,967
Financial liabilities designated at fair value				114,098		91,745
Derivative financial instruments		10		442,317		324,252
Debt securities in issue2				66,172		69,150
Subordinated liabilities		12		22,650		21,467
Accruals, deferred income and other liabilities				7,388		10,610
Provisions		13		3,988		4,142
Current and deferred tax liabilities		5		923		1,025
Retirement benefit liabilities		14		460		423
Liabilities included in disposal groups classified as held for sale		4		64,105		5,997
Total liabilities				1,281,862		1,054,148
Equity
Called up share capital and share premium		15		21,763		21,586
Other reserves		17		5,695		1,898
Retained earnings				30,082		31,021
Shareholders’ equity attributable to ordinary shareholders of parent				57,540		54,505
Other equity instruments		16		5,314		5,305
Total equity excluding non-controlling interests				62,854		59,810
Non-controlling interests		6		6,566		6,054
Total equity				69,420		65,864
Total liabilities and equity				1,351,282		1,120,012

1 For notes, see pages 61 to 97.

2 Debt securities in issue include covered bonds of £12,070m (December 2015: £12,300m).

   Barclays PLC – 2016 Interim Results 57     

Condensed Consolidated Financial Statements

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 30.06.16	£m		£m		£m		£m		£m		£m		£m
Balance at 1 January 2016		21,586		5,305		1,898		31,021		59,810		6,054		65,864
Continuing operations
Profit after tax		-		208		-		954		1,162		186		1,348
Currency translation movements		-		-		1,788		-		1,788		1		1,789
Available for sale investments		-		-		(311)		-		(311)		-		(311)
Cash flow hedges		-		-		1,747		-		1,747		-		1,747
Retirement benefit remeasurements		-		-		-		(759)		(759)		-		(759)
Other		-		-		-		(3)		(3)		1		(2)
Total comprehensive income net of tax from continuing operations		-		208		3,224		192		3,624		188		3,812
Total comprehensive income net of tax from discontinued operations		-		-		578		156		734		562		1,296
Total comprehensive income for the year		-		208		3,802		348		4,358		750		5,108
Issue of new ordinary shares		28		-		-		-		28		-		28
Issue of shares under employee share schemes		149		-		-		226		375		-		375
Other equity instruments coupons paid		-		(208)		-		58		(150)		-		(150)
Redemption of preference shares		-		-		-		(253)		(253)		(550)		(803)
Treasury shares		-		-		(5)		(384)		(389)		-		(389)
Dividends paid		-		-		-		(588)		(588)		(280)		(868)
Net equity impact of partial BAGL disposal3		-		-		-		(349)		(349)		601		252
Other reserve movements		-		9		-		3		12		(9)		3
Balance at 30 June 2016		21,763		5,314		5,695		30,082		62,854		6,566		69,420
Half year ended 31.12.2015
Balance at 1 July 2015		21,523		4,325		1,334		32,099		59,281		6,294		65,575
Continuing operations
Loss after tax		-		186		-		(2,114)		(1,928)		175		(1,753)
Currency translation movements		-		-		975		-		975		1		976
Available for sale investments		-		-		66		-		66		-		66
Cash flow hedges		-		-		120		-		120		-		120
Retirement benefit remeasurements		-		-		-		1,010		1,010		-		1,010
Other		-		-		-		(21)		(21)		1		(20)
Total comprehensive income net of tax from continuing operations		-		186		1,161		(1,125)		222		177		399
Total comprehensive loss net of tax from discontinued operations		-		-		(611)		109		(502)		(186)		(688)
Total comprehensive loss for the year		-		186		550		(1,016)		(280)		(9)		(289)
Issue of new ordinary shares		19		-		-		-		19		-		19
Issue of shares under employee share schemes		44		-		-		268		312		-		312
Issue and exchange of equity instruments		-		995		-		-		995		-		995
Other equity instruments coupons paid		-		(186)		-		38		(148)		-		(148)
Redemption of preference shares		-		-		-		-		-		-		-
Treasury shares		-		-		14		(49)		(35)		-		(35)
Dividends paid		-		-		-		(335)		(335)		(251)		(586)
Other reserve movements		-		(15)		-		16		1		20		21
Balance at 31 December 2015		21,586		5,305		1,898		31,021		59,810		6,054		65,864

1 Details of Share capital, Other equity instruments and Other reserves are shown on page 61 to 97.

2 Details of Non-controlling Interests are shown on page 66.

3 Details of partial BAGL disposal are shown on page 64.

   Barclays PLC – 2016 Interim Results 58     

Condensed Consolidated Financial Statements

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
Continuing operations
Profit after tax		-		159		-		1,418		1,577		173		1,750
Currency translation movements		-		-		(228)		-		(228)		-		(228)
Available for sale investments		-		-		(295)		-		(295)		-		(295)
Cash flow hedges		-		-		(613)		-		(613)		-		(613)
Retirement benefit remeasurements		-		-		-		(94)		(94)		-		(94)
Other		-		-		-		41		41		-		41
Total comprehensive income net of tax from continuing operations		-		159		(1,136)		1,365		388		173		561
Total comprehensive loss net of tax from discontinued operations		-		-		(256)		193		(63)		28		(35)
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
Issue and exchange of equity instruments		-		-		-		-		-		-		-
Other equity instruments coupons paid		-		(159)		-		32		(127)		-		(127)
Redemption of preference shares		-		-		-		-		-		-		-
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

1 Details of Share capital, Other equity instruments and Other reserves are shown on page 61 to 97.

2 Details of Non-controlling Interests are shown on page 66.

   Barclays PLC – 2016 Interim Results 59     

Condensed Consolidated Financial Statements

Condensed consolidated cash flow statement (unaudited)

	Half year ended		Half year ended
Continuing operations	30.06.16		30.06.15
	£m		£m
Profit before tax		2,063		2,602
Adjustment for non-cash items		(8,913)		3,359
Changes in operating assets and liabilities		25,129		6,360
Corporate income tax paid		(394)		(756)
Net cash from operating activities		17,885		11,565
Net cash from investing activities		14,376		(13,494)
Net cash from financing activities		(1,709)		(1,481)
Net cash from discontinued operations		371		138
Effect of exchange rates on cash and cash equivalents		6,897		25
Net increase/ (decrease) in cash and cash equivalents		37,820		(3,247)
Cash and cash equivalents at beginning of the period		86,556		78,479
Cash and cash equivalents at end of the period		124,376		75,232

   Barclays PLC – 2016 Interim Results 60     

Financial Statement Notes

1. Basis of preparation

These condensed consolidated interim financial statements for the six months ended 30 June 2016 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 2015, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board.

The accounting policies and methods of computation used in these condensed consolidated interim financial statements are the same as those used in the Barclays 2015 Annual Report.

Future accounting developments

IFRS 9 – Financial instruments

IFRS 9 Financial Instruments which will replace IAS 39 Financial Instruments: Recognition and Measurement is effective for periods beginning on or after 1 January 2018 and is currently expected to be endorsed by the EU in the second half of 2016. IFRS 9, in particular the impairment requirements, will lead to significant changes in the accounting for financial instruments.

Barclays has a jointly accountable risk and finance IFRS 9 implementation programme with representation from impacted departments.

In respect of the impairment implementation programme, during 2016 work has continued on the design and build of models, systems, processes, governance, controls and data collection ahead of a planned parallel run and testing phase in 2017.

The classification and measurement implementation programme is in progress, with the focus during 2016 on quantifying impact and finalising processes, governance and controls in preparation for the parallel run in 2017. An impact assessment in respect of hedge accounting is being performed.

For further information on this and other new standards refer to the Barclays 2015 Annual Report.

Going concern

Having reassessed the principal risks, the Directors considered it appropriate to adopt the going concern basis of accounting in preparing the interim financial information and there are no material uncertainties.

   Barclays PLC – 2016 Interim Results 61     

Financial Statement Notes

2. Staff costs

	Half year ended		Half year ended
	30.06.16		30.06.15
Compensation costs	£m		£m
Deferred bonus charge		367		460
Current year bonus charges		387		414
Sales commissions, commitments and other incentives		43		63
Performance costs		797		937
Salaries		2,056		2,098
Social security costs		303		303
Post-retirement benefits		245		(191)
Other compensation costs		179		174
Total compensation costs		3,580		3,321
Other resourcing costs
Outsourcing		460		533
Redundancy and restructuring		266		69
Temporary staff costs		250		307
Other		45		62
Total other resourcing costs		1,021		971
Total staff costs		4,601		4,292

Total staff costs increased 7% to £4,601m, principally reflecting:

● A reduction in Group performance costs of 15% to £797m primarily reflecting lower deferred bonus charges

● An increase in post-retirement benefits expense to £245m due to the non-recurrence of a one-off £429m gain recognised in the prior period as the valuation of a component of the defined retirement benefit liability was aligned to statutory provisions

● An increase in other resourcing costs of 5% to £1,021m primarily due to a £197m increase in redundancy and restructuring costs due to strategic initiatives announced for the Investment Bank in January 2016

Group compensation costs increased 8% to £3,580m reflecting a Group compensation to net operating income ratio of 36% (H115: 29%). Excluding post-retirement benefits, Group compensation costs decreased 5% to £3,335m resulting in a Group compensation to net operating income ratio of 33% (H115: 31%).

No awards have yet been granted in relation to the 2016 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.

   Barclays PLC – 2016 Interim Results 62     

Financial Statement Notes

3.        Administration and general expenses

	Half year ended		Half year ended
	30.06.16		30.06.15
		£m		£m
Infrastructure costs
Property and equipment		562		566
Depreciation of property, plant and equipment		242		237
Operating lease rentals		235		183
Amortisation of intangible assets		301		291
Impairment of property, equipment and intangible assets		82		53
Total infrastructure costs		1,422		1,330
Other costs
Consultancy, legal and professional fees		539		446
Subscriptions, publications, stationery and communications		333		366
Marketing, advertising and sponsorship		207		228
Travel and accommodation		68		97
Provisions for ongoing investigations and litigation primarily relating to Foreign Exchange		-		790
Provisions for UK customer redress		400		1,032
Other administration and general expenses		127		9
Total other costs		1,674		2,968
Total administration and general expenses		3,096		4,298

Administration and general expenses have decreased 28% to £3,096m attributable to a decrease in provisions for UK customer redress and provisions for ongoing investigations and litigation primarily relating to Foreign Exchange. This was partially offset by increases in infrastructure costs and other administration and general expenses.

   Barclays PLC – 2016 Interim Results 63     

Financial Statement Notes

4.        Held for sale assets and discontinued operations 

The Group applies IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. 

On 1 March 2016, Barclays announced its intention to reduce the Group’s 62.3% interest in BAGL. This reduction is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required. On 5 May 2016 Barclays sold 12.2% of the Group’s interest in BAGL resulting in a transfer to non-controlling interests of £601m. Following this sale, Barclays’ interest represents 50.1% of BAGL’s share capital. The Barclays Africa disposal group includes all assets and liabilities of BAGL and its subsidiaries as well as Group balances associated with Africa Banking that are expected to form part of the sale. No write down is recognised under IFRS 5 as at 30 June 2016. 

Assets classified as held for sale	Barclays Africa Disposal Group		Other			As at 30.06.16 Total			As at 31.12.15 Total
		£m		£m			£m			£m
Cash and balances at central banks		2,135		17			2,152			21
Items in the course of collection from other banks		548		40			588			24
Trading portfolio assets		3,084		-			3,084			-
Financial assets designated at fair value		5,265		1,491			6,756			696
Derivative financial instruments		1,676		131			1,807			-
Financial investments		3,459		2,518			5,977			1,230
Loans and advances to banks		1,629		242			1,871			74
Loans and advances to customers		35,493		7,428			42,921			5,513
Prepayments, accrued income and other assets		501		21			522			47
Investments in associates and joint ventures		51		22			73			10
Property, plant and equipment		727		80			807			128
Goodwill		829		10			839			-
Intangible assets		462		104			566			43
Current and deferred tax assets		78		32			110			22
Retirement benefit assets		32		-			32			-
Total		55,969		12,136			68,105			7,808
Balance of impairment unallocated under IFRS 5		-		(652	)		(652	)		(444	)
Total agreed to the consolidated balance sheet		55,969		11,484			67,453			7,364
Liabilities classified as held for sale
Deposits from banks		2,853		9			2,862			-
Items in the course of collection due to other banks		373		127			500			74
Customer accounts		33,475		8,556			42,031			4,000
Repurchase agreements and other similar secured borrowing		345		-			345			-
Trading portfolio liabilities		246		-			246			-
Financial liabilities designated at fair value		3,942		3,734			7,676			1,821
Derivative financial instruments		1,527		114			1,641			3
Debt securities in issue		7,053		3			7,056			-
Subordinated liabilities		690		-			690			-
Accruals, deferred income and other liabilities		735		70			805			39
Provisions		51		21			72			34
Current and deferred tax liabilities		82		61			143			(7	)
Retirement benefit liabilities		19		19			38			33
Total liabilities		51,391		12,714			64,105			5,997

   Barclays PLC – 2016 Interim Results 64     

Financial Statement Notes

The Barclays Africa Disposal Group meets the requirements for presentation as a discontinued operation. As such, the results, which have been presented as the profit after tax and non-controlling interest in respect of the discontinued operation on the face of the Group income statement, are analysed in the income statement below.

	Half year ended			Half year ended
	30.06.16			30.06.15
Barclays Africa disposal group income statement		£m			£m
Net interest income		982			1,011
Net fee and commission income		479			541
Net trading income		130			112
Net investment income		21			28
Net premiums from insurance contracts		164			163
Other income		8			4
Total income		1,784			1,859
Net claims and benefits incurred on insurance contracts		(87	)		(81	)
Total income net of insurance claims		1,697			1,778
Credit impairment charges and other provisions		(244	)		(194	)
Net operating income		1,453			1,584
Staff costs		(522	)		(572	)
Administration and general expenses		(434	)		(437	)
Depreciation of property, plant and equipment		(38	)		(42	)
Amortisation of intangible assets		(26	)		(24	)
Operating expenses		(1,020	)		(1,075	)
Share of post-tax results of associates and joint ventures		2			3
Profit before tax		435			512
Tax		(124	)		(154	)
Profit after tax		311			358
Attributable to:
Equity holders of the parent		156			193
Non-controlling interests		155			165
Profit after tax		311			358

Other comprehensive income relating to discontinued operations is as follows:

	Half year ended		Half year ended
	30.06.16		30.06.15
		£m		£m
Available for sale assets		1		-
Currency translation reserves		534		(235)
Cash flow hedge reserves		43		(21)
Other comprehensive income, net of tax from discontinued operations		578		(256)

The cash flows attributed to the discontinued operations are as follows:

	Half year ended			Half year ended
	30.06.16			30.06.15
Cash Flows from discontinued operations	£m			£m
Net cash flows from operating activities		(507	)		594
Net cash flows from investing activities		459			(75	)
Net cash flows from financing activities		(108	)		(101	)
Effect of exchange rates on cash and cash equivalents		527			(280	)
Net decrease in cash and cash equivalent		371			138

   Barclays PLC – 2016 Interim Results 65     

Financial Statement Notes

5.        Tax

	Assets				Liabilities
Current and deferred tax assets and liabilities	30.06.16 £m		31.12.15 £m		30.06.16 £m		31.12.15 £m
Current tax		437		415		(886)		(903)
Deferred tax		4,193		4,495		(37)		(122)
Total		4,630		4,910		(923)		(1,025)

The deferred tax asset of £4,193m (2015: £4,495m) mainly relates to amounts in the US and UK.

The tax charge for H116 was £715m (2015: £852m), representing an effective tax rate of 34.7% (2015: 32.7%). The effective tax rate is higher than the UK statutory tax rate of 20% (2015: 20.25%) primarily due to profits outside the UK taxed at higher local statutory tax rates, provisions for UK customer redress being non-deductible for tax purposes, the introduction of a new tax surcharge of 8% that applies to banks’ UK profits, non-deductible expenses and losses as well as non-creditable taxes. These factors, which have each increased the effective tax rate, are partially offset by the impact of non-taxable gains and income.

6.        Non-controlling interests

	Profit Attributable to  Non-controlling Interests				Equity Attributable to  Non-controlling Interests
	Half year ended 30.06.16 £m		Half year ended 30.06.15 £m		As at 30.06.16 £m		As at 31.12.15 £m
Barclays Bank PLC Issued:
- Preference shares		182		172		3,104		3,654
- Upper Tier 2 instruments		2		1		486		486
Barclays Africa Group Limited		155		165		2,964		1,902
Other non-controlling interests		2		-		12		12
Total		341		338		6,566		6,054

Equity attributable to non-controlling interest increased by £512m to £6,566m in June 2016 driven by the sale of 12.2% of the Group’s stake in BAGL increasing the non-controlling interest from 37.6% to 49.9% and the appreciation of ZAR against GBP. These increases were partially offset by the redemption of preference shares issued by Barclays Bank PLC.

   Barclays PLC – 2016 Interim Results 66     

Financial Statement Notes

7.        Earnings per share

	Half year ended			Half year ended
	30.06.16 £m			30.06.15 £m
Profit attributable to ordinary equity holders of the parent from continuing and discontinued operations		1,110			1,611
Tax credit on profit after tax attributable to other equity holders		58			32
Total profit attributable to ordinary equity holders of the parent from continuing and discontinued operations		1,168			1,643
Continuing operations
Profit attributable to ordinary equity holders of the parent from continuing operations		954			1,418
Tax credit on profit after tax attributable to other equity holders		58			32
Profit attributable to equity holders of the parent from continuing operations		1,012			1,450
Discontinued operations
Profit attributable to ordinary equity holders of the parent from discontinued operations		156			193
Dilutive impact of convertible options from discontinued operations		(2	)		-
Profit attributable to equity holders of the parent from discontinued operations including dilutive impact on convertible options		154			193
Profit attributable to equity holders of the parent from continuing and discontinued operations including dilutive impact on convertible options		1,166			1,643
	Half year ended			Half year ended
	30.06.16 millions			30.06.15 millions
Basic weighted average number of shares in issue		16,859			16,678
Number of potential ordinary shares		182			345
Diluted weighted average number of shares		17,041			17,023
		p			p
Basic earnings per ordinary share1		6.9			9.9
Basic earnings per ordinary share from continuing operations1		6.0			8.7
Basic earnings per ordinary share from discontinued operations		0.9			1.2
Diluted earnings per ordinary share1		6.8			9.7
Diluted earnings per ordinary share from continuing operations1		5.9			8.6
Diluted earnings per ordinary share from discontinued operations		0.9			1.1

1 The profit after tax attributable to other equity holders of £208m (H115: £159m) is offset by a tax credit recorded in reserves of £58m (H115: £32m). The net amount of £150m (H115: £127m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share.

   Barclays PLC – 2016 Interim Results 67     

Financial Statement Notes

8.         Dividends on ordinary shares

It is Barclays policy to declare and pay dividends on a semi-annual basis. The Board has decided to pay on 19 September 2016, an interim dividend for 2016 of 1p (H115: 2p) per ordinary share to shareholders on the share register on 12 August 2016.

	Half year ended 30.06.16				Half year ended 30.06.15
Dividends paid during the period	Per share p		Total £m		Per share p		Total £m
Final dividend paid during period		3.5		588		3.5		578
Interim dividend paid during period		-		-		1.0		168

9.         Financial investments

	As at		As at
	30.06.16 £m		31.12.15 £m
Available for sale investments
Debt securities and other eligible bills		77,617		89,278
Equity securities		476		989
Held to maturity investments		5,007		-
Financial investments		83,100		90,267

In June 2016 £5.0bn of UK Gilts previously classified as available for sale investments, were reclassified to held to maturity in order to reflect the intention with these assets.

   Barclays PLC – 2016 Interim Results 68     

Financial Statement Notes

10. Derivative financial instruments

	Contract Notional Amount		Fair Value
			Assets		Liabilities
As at 30.06.16		£m		£m		£m
Foreign exchange derivatives		3,854,750		72,692		(75,487	)
Interest rate derivatives		31,034,871		332,937		(323,622	)
Credit derivatives		1,015,204		16,326		(14,560	)
Equity and stock index and commodity derivatives		960,565		22,262		(27,031	)
Derivative assets/(liabilities) held for trading		36,865,390		444,217		(440,700	)
Derivatives in Hedge Accounting Relationships
Derivatives designated as cash flow hedges		145,925		509		(7	)
Derivatives designated as fair value hedges		156,516		438		(1,032	)
Derivatives designated as hedges of net investments		7,286		16		(578	)
Derivative assets/(liabilities) designated in hedge accounting relationships		309,727		963		(1,617	)
Total recognised derivative assets/(liabilities)		37,175,117		445,180		(442,317	)
As at 31.12.15
Foreign exchange derivatives		3,224,714		54,798		(58,709	)
Interest rate derivatives		24,485,126		230,627		(220,732	)
Credit derivatives		948,646		18,181		(16,624	)
Equity and stock index and commodity derivatives		778,616		23,166		(27,723	)
Derivative assets/(liabilities) held for trading		29,437,102		326,772		(323,788	)
Derivatives in Hedge Accounting Relationships
Derivatives designated as cash flow hedges		163,386		300		(115	)
Derivatives designated as fair value hedges		151,264		637		(296	)
Derivatives designated as hedges of net investments		1,955		-		(53	)
Derivative assets/(liabilities) designated in hedge accounting relationships		316,605		937		(464	)
Total recognised derivative assets/(liabilities)		29,753,707		327,709		(324,252	)

Derivative assets increased by £117bn to £445bn primarily due to interest rate derivatives reflecting a decrease in major forward interest rates and foreign exchange derivatives due to appreciation of major currencies against GBP.

The IFRS netting posted against derivative assets and liabilities was £18bn (2015: £8bn). Derivative asset exposures would be £405bn (2015: £295bn) lower than reported under IFRS if netting were permitted for assets and liabilities with the same counterparty or for which the Group holds cash collateral of £50bn (2015: £35bn). Similarly, derivative liabilities would be £413bn (2015: £295bn) lower reflecting counterparty netting and cash collateral placed of £58bn (2015: £35bn). In addition, non-cash collateral of £9bn (2015: £7bn) was held in respect of derivative assets and £7bn (2015: £5bn) was placed in respect of derivative liabilities. Collateral amounts are limited to net on balance sheet exposure so as to not include over-collateralisation.

Of the £50bn cash collateral held, £32bn (2015: £28bn) was included in deposits from banks and £18bn (2015: £7bn) was included in customer accounts. Of the £58bn cash collateral placed, £19bn (2015: £13bn) was included in loans and advances to banks and £39bn (2015: £22bn) was included in loans and advances to customers.

   Barclays PLC – 2016 Interim Results 69     

Financial Statement Notes

11. Fair value of assets and liabilities

This section should be read in conjunction with Note 18 Fair value of assets and liabilities of the 2015 Annual Report, which provides more detail about accounting policies adopted, 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 30.06.16	£m		£m		£m		£m
Trading portfolio assets		31,714		40,007		4,822		76,543
Financial assets designated at fair value		3,805		74,065		11,013		88,883
Derivative financial instruments		6,024		432,385		6,771		445,180
Available for sale investments		32,906		44,729		458		78,093
Investment property		-		-		86		86
Assets included in disposal groups classified as held for sale1		6,261		6,873		7,424		20,558
Total assets		80,710		598,059		30,574		709,343
Trading portfolio liabilities		(18,643)		(14,000)		-		(32,643)
Financial liabilities designated at fair value		(266)		(112,914)		(918)		(114,098)
Derivative financial instruments		(5,501)		(430,510)		(6,306)		(442,317)
Liabilities included in disposal groups classified as held for sale1		(408)		(5,416)		(8,525)		(14,349)
Total liabilities		(24,818)		(562,840)		(15,749)		(603,407)
As at 31.12.15	£m		£m		£m		£m
Trading portfolio assets		36,676		35,725		4,947		77,348
Financial assets designated at fair value		6,163		52,909		17,758		76,830
Derivative financial instruments		6,342		315,949		5,418		327,709
Available for sale investments		42,552		46,693		1,022		90,267
Investment property		-		-		140		140
Assets included in disposal groups classified as held for sale1		26		8		7,330		7,364
Total assets		91,759		451,284		36,615		579,658
Trading portfolio liabilities		(23,978)		(9,989)		-		(33,967)
Financial liabilities designated at fair value		(240)		(90,203)		(1,302)		(91,745)
Derivative financial instruments		(5,450)		(314,033)		(4,769)		(324,252)
Liabilities included in disposal groups classified as held for sale1		(1,024)		(802)		(4,171)		(5,997)
Total liabilities		(30,692)		(415,027)		(10,242)		(455,961)

1  Assets and liabilities where the carrying value is lower than the fair value are reported in the amortised cost table. The increase is due to the intention to dispose of BAGL and the Italian and French retail business.

   Barclays PLC – 2016 Interim Results 70     

Financial Statement Notes

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 Valuation technique using						Liabilities Valuation technique using
	Quoted market prices (Level 1) £m		Observable inputs (Level 2) £m		Significant unobservable inputs (Level 3) £m		Quoted market prices (Level 1) £m		Observable inputs (Level 2) £m		Significant unobservable inputs (Level 3) £m
As at 30.06.16
Interest rate derivatives		-		329,870		3,689		-		(320,778)		(3,798)
Foreign exchange derivatives		-		72,938		95		-		(76,016)		(134)
Credit derivatives		-		14,152		2,174		-		(14,326)		(234)
Equity derivatives		3,382		10,567		756		(2,897)		(14,419)		(1,736)
Commodity derivatives		2,642		4,858		57		(2,604)		(4,971)		(404)
Government and government sponsored debt		40,472		60,640		285		(9,975)		(9,422)		-
Corporate debt		158		12,366		3,198		(227)		(3,150)		-
Certificates of deposit, commercial paper and other money market instruments		-		778		-		-		(7,207)		(272)
Reverse repurchase and repurchase agreements		-		72,770		-		-		(74,946)		-
Non-asset backed loans		-		2,894		9,959		-		-		-
Asset backed securities		-		2,603		671		-		(627)		(67)
Commercial real estate loans		-		-		590		-		-		-
Issued debt		-		-		-		-		(30,075)		(354)
Equity cash products		27,790		5,439		186		(8,707)		(940)		-
Funds and fund linked products		-		292		290		-		(239)		(31)
Physical commodities		-		8		-		-		(106)		-
Assets and liabilities held for sale		6,261		6,873		7,424		(408)		(5,416)		(8,525)
Other1		5		1,011		1,200		-		(202)		(194)
Total		80,710		598,059		30,574		(24,818)		(562,840)		(15,749)
As at 31.12.15
Interest rate derivatives		-		228,751		2,675		-		(218,864)		(2,247)
Foreign exchange derivatives		2		54,839		95		(4)		(58,594)		(196)
Credit derivatives		-		16,279		1,902		-		(16,405)		(219)
Equity derivatives		3,830		9,279		690		(2,870)		(14,037)		(1,545)
Commodity derivatives		2,510		6,801		56		(2,576)		(6,133)		(562)
Government and government sponsored debt		55,150		52,967		419		(15,036)		(5,474)		(1)
Corporate debt		352		11,598		2,895		(234)		(4,558)		(15)
Certificates of deposit, commercial paper and other money market instruments		82		503		-		(5)		(6,955)		(382)
Reverse repurchase and repurchase agreements		-		49,513		-		-		(50,838)		-
Non-asset backed loans		-		1,931		16,828		-		-		-
Asset backed securities		-		12,009		770		-		(384)		(37)
Commercial real estate loans		-		-		551		-		-		-
Issued debt		-		-		-		-		(29,695)		(546)
Equity cash products		29,704		4,038		171		(8,943)		(221)		-
Funds and fund linked products		-		1,649		378		-		(1,601)		(148)
Physical commodities		87		156		-		-		-		-
Assets and liabilities held for sale		26		8		7,330		(1,024)		(802)		(4,171)
Other1		16		963		1,855		-		(466)		(173)
Total		91,759		451,284		36,615		(30,692)		(415,027)		(10,242)

1 Other includes private equity investments, asset backed loans and investment property.

   Barclays PLC – 2016 Interim Results 71     

Financial Statement Notes

Assets and liabilities reclassified between Level 1 and Level 2

There were no transfers during the period (2015: £537m assets and £801m liabilities of equity and foreign exchange derivatives from Level 1 to Level 2).

Level 3 movement analysis

The following table summarises the movements in the Level 3 balance during the period. The table shows gains and losses and includes amounts for all financial assets and liabilities that are held at fair value transferred to and from Level 3 during the period. Transfers have been reflected as if they had taken place at the beginning of the year.

Assets and liabilities included in disposal groups classified as held for sale are not included as these are measured at fair value on a non-recurring basis.

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.

During the period, £8.1bn of non-asset backed loans moved out of fair value Level 3 assets. This was due to the restructure of LOBO terms on the ESHLA loans. The new restructured loans will be measured on an amortised cost basis.

   Barclays PLC – 2016 Interim Results 72     

Financial Statement Notes

	As at 01.01.16 £m		Purchases £m		Sales £m		Issues £m		Settlements £m		Total gains and losses in the period recognised in the income statement				Total gains or losses recognised in OCI £m		Transfers				As at 30.06.16 £m
											Trading income £m		Other income £m				In £m		Out £m
Government and government sponsored debt		320		-		(34)		-		-		(1)		-		-		-		-		285
Corporate debt		2,882		66		(20)		-		(104)		367		-		-		18		(11)		3,198
Asset backed securities		743		56		(230)		-		(12)		71		-		-		43		-		671
Non-asset backed loans		507		116		(275)		-		-		(29)		-		-		18		(3)		334
Funds and fund linked products		340		-		(47)		-		(286)		296		-		-		-		(13)		290
Other		155		7		(22)		-		(68)		10		-		-		1		(39)		44
Trading portfolio assets		4,947		245		(628)		-		(470)		714		-		-		80		(66)		4,822
Commercial real estate loans		549		785		(779)		-		(10)		45		-		-		-		-		590
Non-asset backed loans1		16,256		-		(297)		-		(8,111)		1,695		-		-		82		-		9,625
Asset backed loans		256		20		(203)		-		(17)		25		-		-		-		-		81
Private equity investments		510		21		(102)		-		(1)		5		85		-		4		-		522
Other		187		4		(110)		-		(5)		(23)		110		-		70		(38)		195
Financial assets designated at fair value		17,758		830		(1,491)		-		(8,144)		1,747		195		-		156		(38)		11,013
Government and government sponsored debt		94		-		(94)		-		-		-		-		-		-		-		-
Other		928		11		(528)		-		(23)		-		6		41		30		(7)		458
Available for sale investments		1,022		11		(622)		-		(23)		-		6		41		30		(7)		458
Investment property		140		-		(57)		-		-		-		3		-		-		-		86
Certificates of deposit, commercial paper and other money market instruments		(383)		-		-		(17)		114		-		(19)		-		(29)		62		(272)
Issued debt		(565)		-		-		-		203		8		-		-		-		-		(354)
Other		(354)		-		-		-		113		(26)		(2)		-		(61)		38		(292)
Financial liabilities designated at fair value		(1,302)		-		-		(17)		430		(18)		(21)		-		(90)		100		(918)
Interest rate derivatives		428		(36)		(22)		-		(189)		(77)		-		-		(187)		(26)		(109)
Credit derivatives		1,683		10		(4)		-		(10)		264		-		-		(3)		-		1,940
Equity derivatives		(855)		61		-		(82)		51		(131)		-		-		(50)		26		(980)
Commodity derivatives		(506)		5		-		-		48		61		-		-		25		20		(347)
Foreign exchange derivatives		(101)		-		-		-		(44)		11		-		-		20		75		(39)
Net derivative financial instruments2		649		40		(26)		(82)		(144)		128		-		-		(195)		95		465
Total		23,214		1,126		(2,824)		(99)		(8,351)		2,571		183		41		(19)		84		15,926

1 The £1.7bn trading income (June 2015: £0.9bn loss) on the ESHLA loan portfolio is offset by a £2.1bn loss (June 2015: £0.8bn gain) on the related Level 2 derivative interest rate hedges.

2 The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £6,771m (June 2015: £3,607m) and derivative financial liabilities are £6,306m (June 2015: £3,280m).

   Barclays PLC – 2016 Interim Results 73     

Financial Statement Notes

	As at 01.01.15 £m		Purchases £m		Sales £m		Issues £m		Settlements £m		Total gains and losses in the period recognised in the income  statement				Total gains or losses recognised in OCI £m		Transfers				As at 30.06.15 £m
											Trading income £m		Other income £m				In £m		Out £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 loans1		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
Investment property		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 The £1.7bn trading income (June 2015: £0.9bn loss) on the ESHLA loan portfolio is offset by a £2.1bn loss (June 2015: £0.8bn gain) on the related Level 2 derivative interest rate hedges.

2 The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £6,771m (June 2015: £3,607m) and derivative financial liabilities are £6,306m (June 2015: £3,280m).

   Barclays PLC – 2016 Interim Results 74     

Financial Statement Notes

Unrealised gains and losses on Level 3 financial assets and liabilities

The following table discloses the unrealised gains and losses recognised in the period arising on Level 3 financial assets and liabilities held at fair value at the period end.

	As at 30.06.16											As at 30.06.15
	Income statement											Income statement
	Trading income £m			Other income £m			Other comprehensive income £m		Total £m			Trading income £m			Other income £m			Other comprehensive income £m		Total £m
Trading portfolio assets		400			-			-		400			(55	)		-			-		(55	)
Financial assets designated at fair value		764			166			-		930			(763	)		(70	)		-		(833	)
Available for sale investments		-			33			41		74			-			470			42		512
Investment property		-			3			-		3			-			(8	)		-		(8	)
Financial liabilities designated at fair value		(24	)		(17	)		-		(41	)		16			50			-		66
Net derivative financial instruments		110			-			-		110			(267	)		-			-		(267	)
Total		1,250			185			41		1,476			(1,069	)		442			42		(585	)

Valuation techniques and sensitivity analysis

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 assets and liabilities in the 2015 Annual Report.

   Barclays PLC – 2016 Interim Results 75     

Financial Statement Notes

Sensitivity analysis of valuations using unobservable inputs
	Fair value				Favourable changes				Unfavourable changes
Product type	Total assets £m		Total liabilities £m		Income statement £m		Equity £m		Income statement £m		Equity £m
As at 30.06.16
Interest rate derivatives		3,689		(3,798)		101		-		(110)		-
Foreign exchange derivatives		95		(134)		15		-		(15)		-
Credit derivatives		2,174		(234)		61		-		(57)		-
Equity derivatives		756		(1,736)		178		-		(194)		-
Commodity derivatives		57		(404)		8		-		(8)		-
Government and government sponsored debt		285		-		1		-		(1)		-
Corporate debt		3,198		-		9		-		(4)		-
Certificates of deposit, commercial paper and other money market instruments		-		(272)		-		-		-		-
Non-asset backed loans		9,959		-		1,103		-		(1,140)		-
Asset backed securities		671		(67)		2		-		(1)		-
Commercial real estate loans		590		-		2		-		(2)		-
Issued debt		-		(354)		-		-		-		-
Equity cash products		186		-		-		5		-		(5)
Funds and fund linked products		290		(31)		6		-		(6)		-
Other1		1,200		(194)		247		57		(244)		(65)
Total2		23,150		(7,224)		1,733		62		(1,782)		(70)
As at 31.12.15
Interest rate derivatives		2,675		(2,247)		93		-		(103)		-
Foreign exchange derivatives		95		(196)		17		-		(17)		-
Credit derivatives		1,902		(219)		66		-		(96)		-
Equity derivatives		690		(1,545)		167		-		(185)		-
Commodity derivatives		56		(562)		13		-		(13)		-
Government and government sponsored debt		419		(1)		4		-		(4)		-
Corporate debt		2,895		(15)		10		1		(5)		(1)
Certificates of deposit, commercial paper and other money market instruments		-		(382)		-		-		-		-
Non-asset backed loans		16,828		-		1,581		-		(1,564)		-
Asset backed securities		770		(37)		1		-		(1)		-
Commercial real estate loans		551		-		24		-		(1)		-
Issued debt		-		(546)		-		-		-		-
Equity cash products		171		-		-		17		-		(17)
Funds and fund linked products		378		(148)		1		-		(1)		-
Other1		1,855		(173)		154		318		(172)		(53)
Total2		29,285		(6,071)		2,131		336		(2,162)		(71)

1 Other includes private equity investments, asset backed loans and investment property.

2 Assets and liabilities included in disposal groups classified as held for sale are not included as these are measured at fair value on a non-recurring basis.

   Barclays PLC – 2016 Interim Results 76     

Financial Statement Notes

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 assets and liabilities in the 2015 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 assets and liabilities of the 2015 Annual Report. Assets and liabilities included in disposal groups classified as held for sale are not included as these are measured at fair value on a non-recurring basis.

Fair value adjustments

Key balance sheet valuation adjustments are quantified below:

	30.06.16		31.12.15
	£m		£m
Bid-offer valuation adjustments		(396)		(360)
Other exit adjustments		(158)		(149)
Uncollateralised derivative funding		(107)		(72)
Derivative credit valuation adjustments:
- Monolines		-		(9)
- Other derivative credit valuation adjustments		(314)		(318)
Derivative debit valuation adjustments		396		189

● Uncollateralised derivative funding increased by £35m to £107m as a result of widening in Barclays funding spreads

● Credit Valuation Adjustments (CVA) decreased by £13m to £314m as a result of reduction in monoline exposure

● Debit Valuation Adjustments (DVA) increased by £207m to £396m as a result of a widening in Barclays credit spreads

Portfolio exemption

The Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of groups of financial assets and liabilities. Instruments 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. Accordingly, the Group measures the fair value of the group of financial assets and liabilities consistently with how market participants would price the net risk exposure at the measurement date.

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 £96m (2015: £101m). There are no additions (2015: £35m) and £5m (2015: £31m) of amortisation and releases.

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. 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. The on balance sheet value of these brokered certificates of deposit amounted to £4,017m (2015: £3,729m).

   Barclays PLC – 2016 Interim Results 77     

Financial Statement Notes

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 2015 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:

	As at 30.06.16				As at 31.12.15
Financial assets	Carrying amount £m		Fair Value £m		Carrying amount £m		Fair Value £m
Held to maturity1		5,007		5,429		-		-
Loans and advances to banks		48,117		48,098		41,349		41,301
Loans and advances to customers:
-Home loans		144,994		140,214		155,863		151,431
-Credit cards, unsecured and other retail lending		56,702		56,277		67,840		67,805
-Finance lease receivables		1,643		1,642		4,776		4,730
-Corporate loans		221,987		220,348		170,738		169,697
Reverse repurchase agreements and other similar secured lending		20,216		20,216		28,187		28,187
Assets included in disposal groups classified as held for sale2		46,895		46,895		-		-
Financial liabilities
Deposits from banks		(62,386)		(62,386)		(47,080)		(47,080)
Customer accounts:
-Current and demand accounts		(130,142)		(130,142)		(147,122)		(147,121)
-Savings accounts		(130,331)		(130,351)		(135,567)		(135,600)
-Other time deposits		(178,057)		(178,144)		(135,553)		(135,796)
Debt securities in issue		(66,172)		(66,604)		(69,150)		(69,863)
Repurchase agreements and other similar secured borrowing		(25,418)		(25,418)		(25,035)		(25,035)
Subordinated liabilities		(22,650)		(22,668)		(21,467)		(22,907)
Liabilities included in disposal groups classified as held for sale2		(49,756)		(49,756)		-		-

1 In June 2016 £5.0bn of UK Gilts previously classified as available for sale investments, were reclassified to held to maturity in order to reflect the intention with these assets.

2 Assets and liabilities where the carrying value is lower than the fair value. The amounts relate to the intention to dispose of BAGL and the Asia Wealth business.

12.      Subordinated liabilities

	As at		As at
	30.06.16		31.12.15
		£m		£m
Opening balance as at 1 January		21,467		21,153
Issuances		854		1,138
Redemptions		(583)		(682)
Other		912		(142)
Total dated and undated subordinated liabilities as at period end		22,650		21,467

Subordinated liabilities increased 6% to £22,650m (Dec 15: £21,467m). There was an issuance of £854m 5.20% Fixed Rate Subordinated Notes. Partial redemptions include £278m 6.86% Callable Perpetual Core Tier One Notes, £160m 6.125% Undated Subordinated Notes and £145m 5.75% Fixed Rate Subordinated Notes. Other movements include an increase of £1,492m primarily due to the appreciation of USD and EUR against GBP, offset by £616m BAGL subordinated liabilities reclassified to held for sale.

   Barclays PLC – 2016 Interim Results 78     

Financial Statement Notes

13.      Provisions

	As at		As at
	30.06.16		31.12.15
		£m		£m
UK Customer Redress
- Payment Protection Insurance redress		1,951		2,106
Other customer redress		830		896
Legal, competition and regulatory matters		474		489
Redundancy and restructuring		258		186
Undrawn contractually committed facilities and guarantees		59		60
Onerous contracts		144		141
Sundry provisions		272		264
Total		3,988		4,142

Payment Protection Insurance Redress

As at 30 June 2016, Barclays had recognised cumulative provisions totalling £7.8bn (31 December 2015: £7.4bn) against the cost of Payment Protection Insurance (PPI) redress and associated processing costs with utilisation of £5.9bn (31 December 2015: £5.3bn), leaving a residual provision of £2.0bn (31 December 2015: £2.1bn).

In the half year ended to 30 June 2016, 1.7m (31 December 2015: 1.6m) customer initiated claims¹ had been received and processed. The volume of claims received during H1 2016 decreased 4%² from H2 2015 (increased by 1% from H1 2015). This rate of decline was slower than previously recorded but in line with expectations.

An additional charge of £0.4bn has been recognised to reflect an updated estimate of cost of PPI redress, primarily relating to ongoing remediation programmes, including those managed by third parties relating to a portfolio previously sold.

As at 30 June 2016, the total provision of £2bn represents Barclays’ best estimate of expected PPI redress. However, it is possible the eventual outcome may differ from the current estimate. We will continue to review the adequacy of provision levels in respect of the complaints deadline proposed by the FCA, which is still pending confirmation.

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 plus 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

● Processing cost per claim – the cost to Barclays of assessing and processing each valid claim

These assumptions remain subjective, in particular due to the uncertainty associated with future claims levels, which include complaints driven by claims management company (CMC) activity.

The following table details by key assumption, actual data through to 30 June 2016, 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.

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.

2 Gross volumes received.

   Barclays PLC – 2016 Interim Results 79     

Financial Statement Notes

Assumption	Cumulative actual to 30.06.16		Future Expected		Sensitivity Analysis increase/decrease in provision
Customer initiated claims received and processed1		1,710k		570k		50k = £105m
Proactive mailing		720k		160k		50k = £12m
Response rate to proactive mailing		27%		17%		1% = £2m
Average uphold rate per claim2		87%3		84%		1% = £14m
Average redress per valid claim4		£1,845		£1,830		£100 = £67m
Processing cost per claim5		£305		£280		50k = £14m

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.

2 Average uphold rate per claim excludes those for which no PPI policy exists.

3 Change in average uphold rate mainly due to increased remediation in 2015.

4 Average redress stated on a per policy basis and excludes remediation.

5 Processing cost per claim on an upheld complaints basis, includes direct staff costs and associated overheads.

Customer redress

Customer redress provisions comprise the estimated cost of making redress payments to customers, clients and counterparties for losses or damages associated with inappropriate judgement in the execution of our business activities. Provisions for other customer redress include £282m (2015: £290m) in respect of historic pricing practices associated with certain Foreign Exchange transactions for certain customers between 2005 and 2012, £118m (2015: £282m) in respect of Packaged Bank Accounts, and smaller provisions across the retail and corporate businesses.

   Barclays PLC – 2016 Interim Results 80     

Financial Statement Notes

14.    Retirement benefits

As at 30 June 2016, the Group’s IAS19 pension deficit across all schemes was £0.3bn (2015: £0.4bn surplus). The UK Retirement Fund (UKRF), which is the Group’s main scheme, had a surplus of £0.1bn (2015: £0.8bn surplus).

The movement for the UKRF is driven by an increase in the liability values, mainly due to a decrease in the discount rate to 2.79%pa (2015: 3.82%pa); partially offset by an increase in asset values driven by higher asset performance relative to the discount rate.

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 were 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 2015 and showed a deficit of £6.0bn (30 September 2014: £4.6bn) and a funding level of 82.7% (30 September 2014: 85.4%). The increase in funding deficit over the year to 30 September 2015 can be mainly attributed to the fall in real gilt yields.

15.    Called up share capital

Called up share capital comprises 16,913m (2015: 16,805m) 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.

16.    Other equity instruments

Other equity instruments of £5,314m (2015: £5,305m) include Additional Tier 1 (AT1) securities issued by Barclays Bank PLC.

The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under CRD IV.

   Barclays PLC – 2016 Interim Results 81     

Financial Statement Notes

17.      Other reserves

	As at		As at
	30.06.16		31.12.15
		£m		£m
Currency translation reserve		1,699		(623)
Available for sale reserve		7		317
Cash flow hedging reserve		3,051		1,261
Other		938		943
Total		5,695		1,898

Currency translation reserve

As at 30 June 2016 there was a credit balance of £1,699m (2015: £623m debit) in the currency translation reserve. The £2,322m credit movement principally reflected the appreciation of EUR and USD against GBP. Of this movement, £534m related to discontinued operations. This was driven by a £343m transfer to Non-controlling interest, associated with the 12.2% sale of the Group’s interest in BAGL, as well as the appreciation of ZAR against GBP.

During the period a £54m net loss (2015: £87m net loss) from recycling of the currency translation reserve was recognised in the Income Statement. This principally related to the disposal of the Portuguese retail and insurance businesses, and a capital repatriation from the Brazilian business.

Available for sale reserve

As at 30 June 2016 there was a credit balance of £7m (2015: £317m) in the available for sale reserve. The decrease of £310m was largely driven by £3,286m losses from changes in fair value on Government Bonds offset by £2,836m due to fair value hedging, £777m of net gains transferred to net profit and a tax charge of £29m.

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 2016 there was a credit balance of £3,051m (2015: £1,261m credit) in the cash flow hedging reserve. The increase of £1,790m principally reflected a £2,622m increase in the fair value of interest rate swaps held for hedging purposes as interest rate forward curves decreased, £154m loss transferred to net profit, partially offset by a tax charge of £675m.

Other reserves and treasury shares

As at 30 June 2016, there was a credit balance of £1,011m (2015: £1,011m credit) in other reserves relating to the excess repurchase price paid over nominal of redeemed ordinary and preference shares issues by the group.

As at 30 June 2016, there was a debit balance of £73m (2015: £68m debit) in other reserves relating to treasury shares.

During the period £140m (2015: £602m) net purchases of treasury shares were made, principally reflecting the increase in shares held for the purposes of employee share schemes, and £135m (2015: £618m) was transferred to retained earnings reflecting the vesting of deferred share based payments.

18.      Contingent liabilities and commitments

	As at		As at
	30.06.16		31.12.15
		£m		£m
Guarantees and letters of credit pledged as collateral security		17,030		16,065
Performance guarantees, acceptances and endorsements		4,741		4,556
Contingent liabilities		21,771		20,621
Documentary credits and other short-term trade related transactions		1,161		845
Forward starting reverse repurchase agreements		86		93
Standby facilities, credit lines and other commitments		296,904		281,369

Further details on contingent liabilities relating to legal, competition and regulatory matters can be found in Note 19.

   Barclays PLC – 2016 Interim Results 82     

Financial Statement Notes

19.      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 and Civil Action

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), the United States (US) Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) are also investigating these agreements.

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.

The FCA has agreed that the FCA enforcement process be stayed pending progress in the SFO’s investigation into the agreements referred to above, in respect of which the Group has received and has continued to respond to requests for further information.

In January 2016, PCP Capital Partners LLP and PCP International Finance Limited (PCP) served a claim on BBPLC seeking damages of £721.4m plus interest and costs for fraudulent misrepresentation and deceit, arising from alleged statements made by BBPLC to PCP in relation to the terms on which securities were to be issued to investors, including PCP, in the November 2008 capital raising. BBPLC is defending the claim.

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. PCP has made a claim against BBPLC totalling £721.4m plus interest and costs. This amount does not necessarily reflect BBPLC’s potential financial exposure if a ruling were to be made against it.

Investigations into certain business relationships

The DOJ and SEC are 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. Separately, the Group is cooperating with the DOJ and SEC in relation to an investigation into certain of its hiring practices in Asia and elsewhere and is keeping certain regulators in other jurisdictions informed.

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.

   Barclays PLC – 2016 Interim Results 83     

Financial Statement Notes

Alternative Trading Systems and High-Frequency Trading

The SEC, the New York State Attorney General (NYAG) 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.

Background Information

In June 2014, the NYAG filed a complaint (NYAG Complaint) against BPLC and Barclays Capital Inc. (BCI) in the Supreme Court of the State of New York alleging, amongst other things, that BPLC and BCI engaged in fraud and deceptive practices in connection with LX, the Group’s SEC-registered ATS. On 1 February 2016, Barclays reached separate settlement agreements with each of the SEC and the NYAG to resolve those agencies’ claims against BPLC and BCI relating to the operation of LX for $35m each.

Civil complaints have also been filed in 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 were consolidated (Trader Class Action), and in August 2015 the Court granted Barclays’ motion to dismiss the Trader Class Action in its entirety. The plaintiffs have chosen not to appeal.

BPLC and BCI have also been named in a purported class action by an institutional investor client under California law based on allegations similar to those in the NYAG Complaint (California Class Action). This California Class Action was consolidated with the Trader Class Action for pre-trial purposes and was also dismissed in August 2015. The plaintiffs were permitted to file an amended complaint following this dismissal and the matter was transferred back to federal court in California.

Following the filing of the NYAG Complaint, BPLC and BCI were also named in a shareholder securities class action along with certain of its former CEOs, and its current and a former CFO, as well as an employee in Equities Electronic Trading (Shareholder Class Action). The plaintiffs claim 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 filed a motion to dismiss the complaint, which the court granted in part and denied in part. In February 2016, the court certified the action as a class action, which Barclays has appealed. BPLC and BCI continue to defend against both the California Class Action and the Shareholder Class Action.

Claimed Amounts/Financial Impact

The remaining complaints seek unspecified monetary damages and injunctive relief. It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect they might have upon the Group’s operating results, cash flows or 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 Southern District of New York (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 September 2013, the criminal division of the US Attorney’s Office in SDNY advised BBPLC that it is looking at the same conduct at issue in the FERC matter.

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 $435m civil penalty and disgorgement of $34.9m of profits, plus interest.

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

   Barclays PLC – 2016 Interim Results 84     

Financial Statement Notes

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.

In October 2015, the US District Court in California ordered that it would bifurcate its assessment of liabilities and penalties from its assessment of disgorgement. FERC has filed and BBPLC is opposing a brief seeking summary affirmance of the penalty assessment. The court has indicated that it will either affirm the penalty assessment, or require further evidence to determine this issue.

In December 2015, BBPLC filed a motion to dismiss the civil class action for failure to state a claim, which the SDNY in February 2016 granted in part and denied in part.

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. The civil class action complaint refers to damages of $139.3m. These amounts do not necessarily reflect BBPLC’s potential financial exposure if a ruling were to be made against it in either action.

Investigations into LIBOR and other Benchmarks

Regulators and law enforcement agencies, including certain competition authorities, from a number of governments have been conducting investigations relating to BBPLC’s involvement in manipulating certain financial benchmarks, such as LIBOR and EURIBOR. BBPLC, BPLC and BCI have reached settlements with the relevant law enforcement agency or regulator in certain of the investigations, but others, including the investigations by certain US State Attorneys General, the SFO and the prosecutors’ office in Trani, Italy and the Swiss Competition Commission remain pending.

Background Information

In June 2012, BBPLC announced that it had reached settlements with the Financial Services Authority (FSA) (as predecessor to the FCA), the US Commodity Futures Trading Commission (CFTC) and the DOJ Fraud Section (DOJ-FS) in relation to their investigations concerning certain benchmark interest rate submissions, and BBPLC agreed to pay total penalties of £290m. The settlement with the DOJ-FS was made by entry into a Non-Prosecution Agreement which has now expired. In addition, BBPLC was granted conditional leniency from the DOJ Antitrust Division (DOJ-AD) in connection with potential US antitrust law violations with respect to financial instruments that reference EURIBOR. The DOJ granted final leniency to BBPLC in May 2016.

Investigations by the US State Attorneys General

Following the settlements announced in June 2012, a group of US State Attorneys General (SAGs) commenced its own investigations into LIBOR, EURIBOR and the Tokyo Interbank Offered Rate. The Group has cooperated with the investigation throughout and is in advanced discussions with the SAGs about a potential resolution.

Investigation by the SFO

In July 2012, the SFO announced that it had decided to investigate the LIBOR matter, in respect of which BBPLC has received and continues to respond to requests for information. The SFO’s investigation, including in respect of BBPLC, continues.

For a discussion of civil litigation arising in connection with these investigations see ‘LIBOR and other Benchmarks Civil Actions’.

Claimed Amounts/Financial Impact

Aside from the settlements discussed above, 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.

LIBOR and other Benchmark Civil Actions

Following the settlements of the investigations referred to above in ‘Investigations into LIBOR and other Benchmarks’, a number of individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group in relation to LIBOR and/or other benchmarks. While several of such cases have been dismissed and certain have settled subject to approval from the court (and in the case of class actions, the right of class members to opt-out of the settlement and to seek to file their own claims), other actions remain pending and their ultimate impact is unclear.

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.

   Barclays PLC – 2016 Interim Results 85     

Financial Statement Notes

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 (Antitrust Act), the Commodity Exchange Act (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 Antitrust Act and RICO.

The proposed class actions purported 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). In March 2013, August 2013 and June 2014, the MDL Court issued a series of decisions effectively dismissing the majority of claims against BBPLC and other panel bank defendants in the three lead proposed class actions (Lead Class Actions) and three lead individual actions (Lead Individual Actions).

In July 2014, the MDL Court allowed the Stayed Actions to proceed and a number of plaintiffs filed amended complaints. The MDL Court subsequently dismissed a number of Lead Individual Action claims and all Homeowner Class and Lender Class claims. In May 2016, the appeal court reversed the MDL Court’s holding that plaintiffs in the Lead Class Actions, including the Debt Securities Class, and Lead Individual Actions had not suffered an injury under the Antitrust Act, and remanded the antitrust claims for the MDL Court’s further consideration of those claims and related issues.

In December 2014, the MDL Court granted preliminary approval for the settlement of the Exchange-Based Class claims for $20m. Final approval of the settlement is awaiting plaintiff’s submission of a plan for allocation of the settlement proceeds acceptable to the MDL Court.

In November 2015, the OTC Class claims were settled for $120m. The settlement is subject to final court approval.

EURIBOR Case in the SDNY

In February 2013, a EURIBOR-related class action was filed against BPLC, BBPLC, BCI and other EURIBOR panel banks in the SDNY. The plaintiffs asserted antitrust, CEA, RICO, and unjust enrichment claims relating to EURIBOR manipulation. In October 2015, the class action was settled for $94m subject to court approval. The settlement has been preliminarily approved by the court but remains subject to final approval.

Securities Fraud Case in the SDNY

BPLC, BBPLC and BCI were also named as defendants along with four former officers and directors of BBPLC in a securities class action in the SDNY in connection with BBPLC’s role as a contributor panel bank to LIBOR. In November 2015, the class action was settled for $14m with final court approval granted in March 2016.

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. In April 2015, the court dismissed the action. The plaintiff’s motion to file a further amended complaint is pending.

Sterling LIBOR Case in SDNY

In May 2015, a putative class action was commenced 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 Act, and RICO violations. In early 2016, this class action was consolidated with an additional putative class action making similar allegations against BBPLC and BCI and other Sterling LIBOR panel banks. Defendants have filed a motion to dismiss.

   Barclays PLC – 2016 Interim Results 86     

Financial Statement Notes

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 names 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 decision.

Japanese Yen LIBOR Cases in SDNY

A 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 Antitrust Act between 2006 and 2010. In March 2014, the court dismissed the plaintiff’s antitrust claims in full, but sustained the plaintiff’s CEA claims, which are pending.

In July 2015, a second class action concerning Yen LIBOR was filed in the SDNY against BPLC, BBPLC and BCI. The complaint alleges breaches of the Antitrust Act and RICO between 2006 and 2010 based on factual allegations that are substantially similar to those in the April 2012 class action. Defendants have filed a motion to dismiss.

SIBOR/SOR Case in the SDNY

A class action was commenced in July 2016 in the SDNY against BPLC, BBPLC, BCI, and other defendants, alleging manipulation of the Singapore Interbank Offered Rate (SIBOR) and Singapore Swap Offer Rate (SOR). The complaint alleges, amongst other things, manipulation of the SIBOR and SOR rates and breaches of the Antitrust Act and RICO between 2007 and 2011. Barclays expects to file a motion to dismiss the complaint.

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

Aside from the settlements discussed above, 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.

Foreign Exchange Investigations

Various regulatory and enforcement authorities 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. The Group has reached settlements with the CFTC, the DOJ, the New York State Department of Financial Services (NYDFS), the Board of Governors of the Federal Reserve System (Federal Reserve) and the FCA (together, the Resolving Authorities) with respect to certain of these investigations as further described below. Investigations by the European Commission (Commission), the Administrative Council for Economic Defence in Brazil and the South African Competition Commission, amongst others, also remain pending.

Background Information

In 2015, the Group reached settlements with the Resolving Authorities in relation to investigations into certain sales and trading practices in the Foreign Exchange market. In connection with these settlements, the Group agreed to pay total penalties of approximately $2.38bn, and to undertake certain remedial actions.

Under the plea agreement with the DOJ, in addition to a criminal fine, BPLC agreed to a term of probation of three years from the date of the final judgement in respect of the plea agreement during which BPLC must, amongst other things, (i) commit no crime whatsoever in violation of the federal laws of the United States, (ii) implement and continue to implement a compliance program designed to prevent and detect the conduct that gave rise to the plea agreement and (iii) strengthen its compliance and internal controls as required by relevant regulatory or enforcement agencies. The agreement with DOJ is subject to final approval by the court. The Group also continues to provide relevant information to certain of the Resolving Authorities.

BBPLC and BBPLC’s New York branch were also required to continue to engage the independent monitor previously selected by the NYDFS to conduct a comprehensive review of certain compliance programs, policies, and procedures. In February 2016, Barclays terminated its engagement with the monitor with the agreement of the NYDFS.

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Financial Statement Notes

The full text of the DOJ plea agreement, the orders of the CFTC, NYDFS and Federal Reserve, and the Final Notice issued by the FCA related to the settlements referred to above are publicly available on the Resolving Authorities’ respective websites.

The settlements reached in May 2015 did not encompass investigations of electronic trading in the Foreign Exchange market. In November 2015, BBPLC announced that it had reached a settlement with the NYDFS in respect of its investigation into BBPLC and BBPLC’s New York branch electronic trading of Foreign Exchange and Foreign Exchange trading systems in the period between 2009 to 2014, pursuant to which the NYDFS imposed a civil monetary penalty of $150m, primarily for certain internal systems and controls failures.

The FCA is also investigating historic pricing practices by BBPLC associated with certain Foreign Exchange transactions for certain customers between 2005 and 2012. BBPLC is cooperating with the FCA regarding the proposed terms and timing for appropriate customer redress.

For a discussion of civil litigation arising in connection with these investigations see ‘Civil Actions in Respect of Foreign Exchange Trading’ below.

Claimed Amounts/Financial Impact

A provision of £290m in redress costs for certain customers was recognised in Q3 2015 in relation to the FCA investigation into historic pricing practices by BBPLC associated with certain Foreign Exchange transactions referred to above. It is not currently practicable to provide an estimate of any further financial impact of the actions described on the Group or what effect they might have on the Group’s operating results, cash flows or financial position in any particular period.

Civil Actions in respect of Foreign Exchange

Consolidated FX Action

Beginning in November 2013, a number of civil actions were filed in the SDNY on behalf of proposed classes of plaintiffs alleging manipulation of Foreign Exchange markets under the 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 (Consolidated FX Action). In September 2015, BBPLC and BCI settled the Consolidated FX Action for $384m. The settlement itself is subject to final court approval and the right of class members to opt-out of the settlement and to seek to file their own claims.

ERISA FX Action

Since February 2015, several other civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs purporting to allege different legal theories of injury (other than those alleged in the Consolidated FX Action) related to alleged manipulation of Foreign Exchange rates and naming several international banks as defendants, including BPLC, BBPLC and BCI. One such consolidated action asserts claims under the US Employee Retirement Income Security Act (ERISA) statute (ERISA Claims) and includes allegations of conduct that are duplicative of allegations in the other cases, as well as additional allegations about ERISA plans. The Court has ruled that the ERISA allegations concerning collusive manipulation of FX rates are covered by the settlement agreement in the Consolidated FX Action, but has not ruled on whether allegations characterised by the ERISA plaintiffs as non-collusive manipulation of FX rates are likewise covered by the agreement. Barclays will move to stay the claims characterised by the ERISA plaintiffs as non-collusive on grounds that they are covered by the agreement and also to dismiss these claims as a matter of law.

Retail Basis Action

Another action was filed in the Northern District of California (and subsequently transferred to the SDNY) against several international banks, including BPLC and BCI, on behalf of a putative class of individuals that exchanged currencies on a retail basis at bank branches (Retail Basis Claims). The Court has ruled that the Retail Basis Claims are not covered by the settlement agreement in the consolidated FX Action. Barclays will move to dismiss the Retail Basis Claims as a matter of law.

Last Look Actions

In addition, in November 2015 and December 2015, two additional civil actions were filed in the SDNY on behalf of proposed classes of plaintiffs alleging injuries based on Barclays’ purported improper rejection of customer trades through Barclays Last Look system. In February 2016, BBPLC and BCI settled one of the actions for $50m on a class-wide basis subject to court approval. (The other action was voluntarily dismissed.) Class members have the right to opt-out of the settlement and to seek to file their own claims.

Canadian FX Action

Similar civil actions to the Consolidated FX Action have been filed in Canadian courts on behalf of proposed classes of plaintiffs containing similar factual allegations of manipulation of Foreign Exchange rates as in the US actions and of damages resulting from such manipulation in violation of Canadian law.

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Financial Statement Notes

Claimed Amounts/Financial Impact

Aside from the settlements discussed above, 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.

ISDAFIX Investigation

Regulators and law enforcement agencies, including the CFTC, have conducted separate investigations into historical practices with respect to ISDAFIX, amongst other benchmarks.

In May 2015, the CFTC entered into a settlement order with BPLC, BBPLC and BCI pursuant to which BPLC, BBPLC and BCI paid a civil monetary penalty of $115m in connection with the CFTC’s industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark and agreed to undertake certain remediation measures to the extent not already undertaken.

Investigations by other regulators and law enforcement agencies remain pending. For a discussion of civil litigation arising in connection with these investigations, see ‘Civil Actions in respect of ISDAFIX’ below.

Claimed Amounts/Financial Impact

Aside from the settlements discussed above, it is not currently practicable to provide an estimate of any further financial impact of the actions described on the Group or what effect they might have on the Group’s operating results, cash flows or financial position in any particular period.

Civil Action in respect of ISDAFIX

Beginning in September 2014, a number of ISDAFIX related civil actions were 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 Antitrust Act and several state laws by engaging in a conspiracy to manipulate the USD ISDAFIX. Those actions were consolidated in February 2015.

In April 2016, BBPLC and BCI entered into a settlement agreement with plaintiffs to resolve the consolidated action for $30m, fully resolving all ISDAFIX-related claims that were or could have been brought by the class. In May 2016, the court preliminarily approved the settlement, which remains subject to final approval and to the right of class members to opt-out of the settlement and to seek to file their own claims.

Claimed Amounts/Financial Impact

Aside from the settlements discussed above, it is not currently practicable to provide an estimate of any further 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.

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 civil litigation arising in connection with these investigations see ‘Civil Actions in respect of the Gold Fix’ below.

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 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 Antitrust Act, and state antitrust and consumer protection laws. All of the complaints have been transferred to the SDNY and consolidated for pretrial purposes. In April 2015, defendants filed a motion to dismiss the claims.

A similar civil action has been filed in Canadian courts on behalf of a proposed class of plaintiffs containing similar factual allegations of the manipulation of the prices of gold in violation of Canadian law.

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.

   Barclays PLC – 2016 Interim Results 89     

Financial Statement Notes

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 2016, the Group had unresolved repurchase requests relating to loans with a principal balance of approximately $2.2bn 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 lawsuit filed by a purchaser 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 2016 was approximately $0.2bn.

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 cooperating with those investigations.

RMBS Repurchase Requests

Background Information

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 2016 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 $2.2bn at the time of such sale.

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. Cumulative realised losses reported at 30 June 2016 on loans covered by R&Ws made by the Group or the Acquired Subsidiary are approximately $1.3bn. All of the litigation involving repurchase requests remain at early stages.

In addition, the Acquired Subsidiary is subject to a more advanced 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 to 2007. This litigation is ongoing.

   Barclays PLC – 2016 Interim Results 90     

Financial Statement Notes

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 Information

As a result of some of the RMBS activities described above, the Group has been 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 alleged, 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 demanded rescission and recovery of the consideration paid for the RMBS and recovery of monetary losses arising out of their ownership. The Group has resolved a number of these claims, and only one action currently remains pending.

Claimed Amounts/Financial Impact

Approximately $0.2bn of the original face amount of RMBS related to the remaining pending action was outstanding as at 30 June 2016. There were virtually no cumulative realised losses reported on these RMBS as at 30 June 2016. The Group does not expect that, if it were to lose the remaining pending action, any such loss to be material. The Group may be entitled to indemnification for a portion of applicable losses.

Mortgage-related Investigations

In addition to the RMBS Repurchase Requests and RMBS Securities Claims, numerous regulatory and governmental authorities have been investigating various aspects of the mortgage-related business. The Group continues to respond to requests from the US Attorney’s Office for the Eastern District of New York 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 resolving claims related to the underwriting, securitisation and sale of residential mortgage-backed securities. The Group has also received requests for information and subpoenas from the SEC, the US Attorney’s Office for the District of Connecticut and Special Inspector General for the US Troubled Asset Relief Program (SIGTARP) related to trading practices in the secondary market for both RMBS and CMBS. Certain of the investigations are at an advanced stage.

Claimed Amounts/Financial Impact

However, 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. The cost of resolving these investigations could individually or in aggregate prove to be substantial.

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 2016, the SDNY certified the action as a class action.

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 it 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). Parties related to BDC have also sued BBPLC and BCI in Connecticut State Court in connection with BBPLC’s conduct relating to the Agreement.

   Barclays PLC – 2016 Interim Results 91     

Financial Statement Notes

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 pre-judgement interest. Proceedings are currently pending and a trial on liability issues is currently scheduled to occur in 2017.

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 agreed to stay this case.

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 BBPLC 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. Following BBPLC’s motion to dismiss, in July 2016, plaintiffs filed a second amended complaint.

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.

Interest Rate Swap US Civil Action

BPLC, BBPLC, and BCI, together with other financial institutions that act as market makers for interest rate swaps (IRS), Trade Web, and ICAP, are named as defendants in several antitrust class actions consolidated in the SDNY. The complaints allege defendants conspired to prevent the development of exchanges for IRS and demand unspecified money damages, treble damages and legal fees. Plaintiffs include certain swap execution facilities, as well as buy-side investors. The buy-side investors claim to represent a class that transacted in fixed-for-floating IRS with defendants in the US from 1 January 2008 to the present, including, for example, US retirement and pension funds, municipalities, university endowments, corporations, insurance companies and investment funds.

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 it have upon the Group’s operating results, cash flows or financial position in any particular period.

Treasury Auction Securities Civil Actions

Numerous putative class action complaints have been filed in US Federal Courts against BCI and other financial institutions that have served as primary dealers in US Treasury securities. The complaints have been or are in the process of being consolidated in the Federal Court in New York. The complaints generally allege that defendants conspired to manipulate the US Treasury securities market in violation of US federal antitrust laws, the CEA and state common law. Some complaints also allege that defendants engaged in illegal “spoofing” of the US Treasury market. The Group is considering the allegations in the complaints and is keeping all relevant agencies informed.

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.

Investigation into Americas Wealth & Investment Management Advisory Business

The SEC is investigating the non-performance of certain due diligence on third-party managers by the Manager Research division of Barclays’ Wealth & Investment Management, Americas investment advisory business and the Group is responding to requests for information.

   Barclays PLC – 2016 Interim Results 92     

Financial Statement Notes

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 it might have upon the Group’s operating results, cash flows or financial position in any particular period.

Retail Structured Products Investigation

The Group is cooperating with an enforcement investigation commenced by the FCA in connection with structured deposit products provided to UK customers from June 2008 to the present.

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 it might have upon the Group’s operating results, cash flows or financial position in any particular period.

Investigation into suspected money laundering related to foreign exchange transactions in South African operation

Absa Bank Limited, a subsidiary of Barclays Africa Group Limited, has identified potentially fraudulent activity by certain of its customers using import advance payments to effect foreign exchange transfers from South Africa to beneficiary accounts located in Asia, UK, Europe and the US. As a result, the Group is conducting a review of relevant activity, processes, systems and controls. The Group is keeping relevant authorities informed as to the ongoing status of this matter and is providing information to these authorities as part of its ongoing cooperation.

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 cooperating with the investigation.

Claimed Amounts/Financial Impact

It is not currently practicable to provide an estimate of the financial impact of the action described or what effect it 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 into the CDS market in 2011 and 2009, respectively. In December 2015 the Commission announced its decision to close its investigations in respect of BBPLC and 12 other banks. In July 2016 the Commission announced its decision to accept legally binding commitments relating to licensing of inputs for CDS exchange trading from each of the remaining entities subject to the investigation, ISDA and Markit Ltd., and close its investigation.

The Commission’s investigation related to concerns about actions to delay and prevent the emergence of exchange traded credit derivative products. The DOJ-AD’s investigation is a civil investigation and relates to similar issues. A civil class action in the SDNY involving similar claims against BBPLC, other financial institutions, Markit Ltd., and ISDA was settled for a total of US$1.864bn (including a payment of US $170 million from BBPLC). The settlement received final approval in April 2016 subject to the right of class members to opt-out of the settlement and to seek to file their own claims.

Claimed Amounts/Financial Impact

Aside from the settlement discussed above, 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.

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, financial crime, 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

   Barclays PLC – 2016 Interim Results 93     

Financial Statement Notes

and business activities in which the Group is or has been engaged. The Group is keeping all relevant agencies briefed as appropriate in relation to these matters and others described in this Note on an ongoing basis.

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.

20.      Related party transactions

Related party transactions in the period ended 30 June 2016 were similar in nature to those disclosed in the Group’s 2015 Annual Report. No related party transactions that have taken place in the first 6 months of 2016 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 2015 Annual Report that could have a material effect on the financial position or performance of the Group in this period.

   Barclays PLC – 2016 Interim Results 94     

Financial Statement Notes

21. Segmental reporting

Analysis of results by business Half year ended 30.06.16	Barclays UK £m		Barclays Corporate & International £m		Head Office £m
Total income net of insurance claims		3,746		7,552		301
Credit impairment charges and other provisions		(366)		(509)		(1)
Net operating income		3,380		7,043		300
Operating expenses		(2,299)		(4,309)		(139)
Other net (expenses)/income1		(1)		19		(27)
Profit before tax		1,080		2,753		134
		£bn		£bn		£bn
Total assets		204.6		679.9		87.7
Analysis of results by business Half year ended 30.06.16	Barclays Core £m		Barclays Non-Core £m		Barclays Group £m
Total income net of insurance claims		11,599		(586)		11,013
Credit impairment charges and other provisions		(876)		(55)		(931)
Net operating income		10,723		(641)		10,082
Operating expenses		(6,747)		(950)		(7,697)
Other net expenses1		(9)		(313)		(322)
Profit/(loss) before tax		3,967		(1,904)		2,063
		£bn		£bn		£bn
Total assets		972.2		379.1		1,351.3

1 Other net (expenses)/income represents: profit or (loss) on disposal of undertakings, share of results of associates & joint ventures, and impairment on assets held for sale.

   Barclays PLC – 2016 Interim Results 95     

Financial Statement Notes

Analysis of results by business Half year ended 30.06.15	Barclays UK £m		Barclays Corporate & International £m		Head Office £m
Total income net of insurance claims		3,635		7,556		455
Credit impairment charges and other provisions		(333)		(384)		(1)
Net operating income		3,302		7,172		454
Operating expenses		(2,588)		(4,820)		(105)
Other net (expenses)/income1		(2)		28		(94)
Profit before tax		712		2,380		255
		£bn		£bn		£bn
Total assets		202.2		566.1		62.2
Analysis of results by business Half year ended 30.06.15	Barclays Core £m		Barclays Non-Core £m		Barclays Group £m
Total income net of insurance claims		11,646		465		12,111
Credit impairment charges and other provisions		(718)		(61)		(779)
Net operating income		10,928		404		11,332
Operating expenses		(7,513)		(1,077)		(8,590)
Other net expenses 1		(68)		(72)		(140)
Profit/(loss) before tax		3,347		(745)		2,602
		£bn		£bn		£bn
Total assets		830.5		366.2		1,196.7
1         Other net (expenses)/income represents: profit or (loss) on disposal of undertakings, share of results of associates & joint ventures, and impairment on assets held for sale.
				Half year ended		Year ended
Split of income by geographic region1			30.06.16		31.12.15
			%		%
UK				54		55
Europe				10		10
Americas				31		30
Africa and Middle East				2		2
Asia				3		3
Total				100		100

1 The geographic region is based on counterparty location.

   Barclays PLC – 2016 Interim Results 96     

Financial Statement Notes

22. Barclays PLC parent balance sheet

		As at 30.06.16		As at 31.12.15
Assets
	£m		£m
Investments in subsidiary		35,417		35,303
Loans and advances to subsidiary		14,687		7,990
Derivative financial instrument		255		210
Other assets		62		133
Total assets		50,421		43,636
Liabilities
Deposits from banks		496		494
Subordinated liabilities		2,917		1,766
Debt securities in issue		11,770		6,224
Total liabilities		15,183		8,484
Equity
Called up share capital		4,228		4,201
Share premium account		17,535		17,385
Other equity instruments		5,321		5,321
Capital redemption reserve		394		394
Retained earnings		7,760		7,851
Total shareholders’ equity		35,238		35,152
Total liabilities and shareholders’ equity		50,421		43,636

Investment in subsidiary

The investment in subsidiary of £35,417m (2015: £35,303m) represents investments made into Barclays Bank PLC, including £5,321m (2015: £5,321m) of Additional Tier 1 (AT1) securities. The increase of £114m during the period was due to a cash contribution made to Barclays Bank PLC.

Loans and advances to subsidiary, subordinated liabilities and debt securities in issue

During H1 2016, Barclays PLC issued $1.25bn of Fixed Rate Subordinated Notes included within the subordinated liabilities balance of £2,917m (2015: £1,766m), and $4.3bn of Fixed Rate Senior Notes, Yen 20bn of Fixed Rate Senior Notes, €1.7bn Fixed and Floating Senior Rate Notes, and AUD 0.1bn of Fixed Rate Senior Notes included within the debt securities in issue balance of £11,770m (2015: £6,224m). The proceeds raised through these transactions were used to invest in Barclays Bank PLC in each case with a ranking corresponding to the notes issued by Barclays PLC and included within the loans and advances to subsidiary balance of £14,687m (2015: £7,990m).

   Barclays PLC – 2016 Interim Results 97     

Shareholder Information

Results timetable1	Date
Ex-dividend date	11 August 2016
Dividend Record date	12 August 2016
Scrip reference share price set and made available to shareholders 2	18 August 2016
Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or Revocation Forms (as applicable)2	26 August 2016
Dividend Payment date /first day of dealing in New Shares	19 September 2016
Q3 2016 Results Announcement	27 October 2016

For qualifying US and Canadian resident ADR holders, the interim dividend of 1p per ordinary share becomes 4p per ADS (representing 4 ordinary shares). The ADR depositary will post the interim dividend on Monday, 19 September 2016 to ADR holders on the record at close of business on Friday, 12 August 2016. The ex-dividend date will be Wednesday, 10 August 2016.

							% Change4
Exchange rates3	30.06.16		31.12.15		30.06.15		31.12.15		30.06.15
Period end - US$/£		1.34		1.48		1.57		(9%)		(15%)
6 month average - US$/£		1.43		1.53		1.52		(7%)		(6%)
3 month average - US$/£		1.43		1.52		1.53		(6%)		(7%)
Period end - €/£		1.21		1.36		1.41		(11%)		(14%)
6 month average - €/£		1.29		1.39		1.37		(7%)		(6%)
3 month average - €/£		1.27		1.39		1.38		(9%)		(8%)
Period end - ZAR/£		19.63		23.14		19.12		(15%)		3%
6 month average - ZAR/£		22.17		20.83		18.16		6%		22%
3 month average - ZAR/£		21.51		21.56		18.49		-		16%
Share price data	30.06.16		31.12.15		30.06.15
Barclays PLC (p)		138.60		218.90		260.50
Barclays PLC number of shares (m)		16,913		16,805		16,773
Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)		144.08		143.49		182.98
Barclays Africa Group Limited (formerly Absa Group Limited) number of shares (m)		848		848		848
For further information please contact

Investor relations	Media relations
Kathryn McLeland +44 (0) 20 7116 4943	Thomas Hoskin +44 (0) 207 116 4755

More information on Barclays can be found on our website: home.barclays

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: +44 (0) 371 384 2055⁵ from the UK or +44 (0) 121 415 7004 from overseas.

1 Note that these announcement dates are provisional and subject to change.

2 Any changes to the Scrip Dividend Programme dates will be made available at home.barclays/dividends.

3 The average rates shown above are derived from daily spot rates during the year.

4 The change is the impact to GBP reported information.

5 Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding public holidays in England and Wales.

   Barclays PLC – 2016 Interim Results 98     

Glossary

Glossary of terms

‘A-IRB’ / ‘Advanced-Internal Ratings Based’ See ‘Internal Ratings Based (IRB)’.

‘ABS CDO Super Senior’ Super senior tranches of debt linked to collateralised debt obligations of asset backed securities (defined below). Payment of super senior tranches takes priority over other obligations.

‘Acceptances and endorsements’ An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The Group expects most acceptances to be presented, but reimbursement by the customer is normally immediate. Endorsements are residual liabilities of the Group in respect of bills of exchange which have been paid and subsequently rediscounted.

‘Additional Tier 1 (AT1) capital’ In the context of CRD IV, a type of capital as defined in the Capital Requirements Regulation (CRR).

‘Additional Tier 1 (AT1) securities’ Securities that are treated as additional tier 1 (AT1) capital in the context of CRD IV.

‘Advanced Measurement Approach’ Under CRD IV, operational risk charges can be calculated by using one of three methods (or approaches) that increase in sophistication and risk sensitivity: (i) the Basic Indicator Approach; (ii) the Standardised Approach; and (iii) the Advanced Measurement Approach (AMA). Under the AMA the banks are allowed to develop their own empirical model to quantify required capital for operational risk. Banks can only use this approach subject to approval from their local regulators.

‘Africa Banking’ The previously reported Africa Retail and Business Banking combined with other businesses across Africa (excluding the Egypt and Zimbabwe businesses transferred to Barclays Non-Core). The Africa head office function is also included in Barclays Africa. This combined Barclays Africa business is managed under three primary businesses: Retail and Business Banking; Wealth, Investment Management and Insurance; and Corporate and Investment Banking. The resulting Barclays Africa business comprises the Barclays Africa Group Limited (BAGL) listed entity.

‘Agencies’ Bonds issued by state and / or government agencies or government-sponsored entities.

‘Agency Mortgage-Backed Securities’ Mortgage-Backed Securities issued by government-sponsored institutions.

‘All price risk (APR)’ An estimate of all the material market risks, including rating migration and default for the correlation trading portfolio.

‘American Depository Receipts (ADR)’ A negotiable certificate that represents the ownership of shares in a non-US company (for example Barclays) trading in US financial markets.

‘Americas’ Geographic segment comprising the USA, Canada and countries where Barclays operates within Latin America.

‘Annual Earnings at Risk (AEaR)’ Impact on earnings of a parallel (upward or downward) movement in interest rates.

‘Application scorecards’ Algorithm based decision tools used to aid business decisions and manage credit risk based on available customer data at the point of application for a product.

‘Arrears’ Customers are said to be in arrears when they are behind in fulfilling their obligations with the result that an outstanding loan is unpaid or overdue. Such customers are also said to be in a state of delinquency. When a customer is in arrears, their entire outstanding balance is said to be delinquent, meaning that delinquent balances are the total outstanding loans on which payments are overdue.

‘Arrears Managed Accounts’ Arrears Managed Accounts are principally Business Lending customers in arrears with an exposure limit less than £50,000 in the UK and €100,000 in Europe, supervised using processes designed to manage a homogeneous set of assets.

   Barclays PLC – 2016 Interim Results     

Glossary

‘Asia’ Geographic segment comprising countries where Barclays operates within Asia (including Singapore, Japan, China and India), Australia and the Middle East.

‘Asset Backed Commercial Paper’ Typically short-term notes secured on specified assets issued by consolidated special purpose entities for funding purposes.

‘Asset Backed Securities (ABS)’ Securities that represent an interest in an underlying pool of referenced assets. The referenced pool can comprise any assets which attract a set of associated cash flows but are commonly pools of residential or commercial mortgages and, in the case of Collateralised Debt Obligations (CDOs), the referenced pool may be ABS or other classes of assets.

‘Attributable profit’ Profit after tax that is attributable to ordinary equity holders of Barclays PLC adjusted for the after tax amounts of capital securities classified as equity.

‘Average exposure measure’ Calculated as the average exposure measure for the quarter, where the average is based on the exposure measure on the last day of each month in the quarter.

‘Average leverage ratio’ As per the updated PRA rulebook, is calculated as the average capital measure divided by the average exposure measure for the quarter, where the average is based on the capital and exposure measure on the last day of each month in the quarter.

‘Back testing’ Includes a number of techniques that assess the continued statistical validity of a model by simulating how the model would have predicted recent experience.

‘Balance weighted Loan to Value (LTV) ratio’ In the context of the credit risk disclosures on secured home loans, a means of calculating marked to market LTVs derived by calculating individual LTVs at account level and weighting it by the balances to arrive at the average position. Balance weighted loan to value is calculated using the following formula: LTV = ((loan balance 1 x MTM LTV% for loan 1) + (loan balance 2 x MTM LTV% for loan 2) + ... ) / total outstandings in portfolio.

‘The Bank’ Barclays Bank PLC.

‘Barclaycard’ An international consumer payments company serving the needs of businesses and consumers through credit cards, consumer lending, merchant acquiring, commercial cards and point of sale finance. Barclaycard has scaled operations in UK, US, Germany and Scandinavia.

‘Barclays Core’ The core Barclays businesses operated by Barclays UK (which include the UK Personal business, the small UK Corporate and UK Wealth businesses and the Barclaycard UK consumer credit cards business) and Barclays Corporate & International (which include the large UK Corporate business; the international Corporate and Wealth businesses; the Investment Bank; the international Barclaycard business; and Barclaycard Business Solutions),along with Head Office and Other Operations. See also ‘Barclays Non-Core’

‘Barclays Core Operating businesses’ The core Barclays businesses operated by Barclays UK (which include the UK Personal business, the small UK Corporate and UK Wealth businesses and the Barclaycard UK consumer credit cards business) and Barclays Corporate & International (which include the large UK Corporate business; the international Corporate and Wealth businesses; the Investment Bank; the international Barclaycard business; and Barclaycard Business Solutions). See also ‘Barclays Non-Core’

‘Barclays Corporate & International’ The division of Barclays which will not ultimately be ring-fenced as part of regulatory ring fencing requirements. The division includes the large UK Corporate business; the international Corporate and Wealth businesses; the Investment Bank; the international Barclaycard business (consisting of the US, German and Nordic consumer credit cards businesses); and Barclaycard Business Solutions (including merchant acquiring).

‘Barclays Direct’ A Barclays brand, comprising the savings and mortgage businesses acquired from ING Direct UK in March 2013.

‘Barclays Non-Core’ This unit groups together businesses and assets that are not strategically attractive to Barclays and that will be exited, or run down, over time. See also ‘Barclays Core’

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Glossary

‘Barclays UK’ The division of Barclays which will ultimately be ring-fenced as part of regulatory ring fencing requirements. The division includes the UK Personal business; the small UK Corporate and UK Wealth businesses; and the Barclaycard UK consumer credit cards business

‘Basel 2’ The second of the Basel accords. It sets a framework of minimum capital requirements for banks – covering credit, operational and market risk; supervisory review of banks’ assessment of capital adequacy and disclosure requirements.

‘Basel 3’ The third of the Basel Accords on banking supervision. Developed in response to the financial crisis of 2008, setting new requirements on composition of capital, counterparty credit risk, liquidity and leverage ratios.

‘Basel Committee of Banking Supervisors (BCBS or The Basel Committee)’ A forum for regular cooperation on banking supervisory matters which develops global supervisory standards for the banking industry. Its members are officials from central banks or prudential supervisors from 27 countries and territories.

‘BCBS 270 leverage exposure’ The denominator of the internationally agreed Basel III leverage ratio. The exposure measure makes certain adjustments to total assets under IFRS in accordance with the requirements stated in BCBS 270 (“Basel III leverage ratio framework and disclosure requirements”).

‘Basis point(s)’ / ‘bp(s)’ One hundredth of a per cent (0.01%); 100 basis points is 1%. The measure is used in quoting movements in interest rates, yields on securities and for other purposes.

‘Basis risk’ Measures the impact of changes in tenor basis (e.g., the basis between swaps vs. 3 month (3M) Libor and swaps vs. 6 month (6M) Libor) and cross currency basis.

‘Behavioural scorecards’ Algorithm based decision tools used to aid business decisions and manage credit risk based on existing customer data derived from account usage.

‘Book quality’ In the context of the Funding Risk, Capital Risk section, changes in RWAs caused by factors such as underlying customer behaviour or demographics leading to changes in risk profile.

‘Book size’ In the context of the Funding Risk, Capital Risk section, changes in RWAs driven by business activity, including net originations or repayments.

‘Businesses’ In the context of Non-Core Analysis of Total income, Barclays Non Core businesses comprise ongoing businesses seeking to be sold-off or run down including Europe retail and non-core elements of the Investment Bank and other non strategic businesses.

‘Business Lending’ Business Lending in Barclays UK that primarily relates to small and medium enterprises typically with exposures up to £3m or with a turnover up to £5m.

‘Business scenario stresses’ Multi asset scenario analysis of extreme, but plausible events that may impact the market risk exposures of the Investment Bank.

‘Buy to let mortgage’ A mortgage where the intention of the customer (investor) was to let the property at origination.

‘Capital Conservation Buffer (CCB)’ Common Equity Tier 1 capital required to be held under CRD IV to ensure that banks build up surplus capital outside periods of stress which can be drawn down if losses are incurred.

‘Capital ratios’ Key financial ratios measuring the Group’s capital adequacy or financial strength. These include the CET 1 ratio, Tier 1 capital ratio and Total capital ratio.

‘Capital requirements’ Amount to be held by the Group to cover the risk of losses to a certain confidence level.

‘Capital Requirements Regulation (CRR)’ Regulation (EU) No 575/2013, which accompanies CRD IV and sets out detailed rules for capital eligibility, the calculation of RWAs, the measurement of leverage, the management of large exposures and minimum standards for liquidity.

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Glossary

‘Capital resources’ Financial instruments on balance sheet that are eligible to satisfy capital requirements.

‘Central Counterparty’ / ‘Central Clearing Counterparties (CCPs)’ A clearing house mediating between the buyer and the seller in a financial transaction, such as a derivative contract or repurchase agreement (repo). Where a central counterparty is used, a single bi-lateral contract between the buyer and seller is replaced with two contracts, one between the buyer and the CCP and one between the CCP and the seller. The use of CCPs allows for greater oversight and improved credit risk mitigation in over-the-counter (OTC) markets.

‘Charge-off’ In the retail segment this refers to the point in time when collections activity changes from the collection of arrears to the recovery of the full balance. This is normally when six payments are in arrears.

‘Charges add-on and non VaR’ In the context of Risk Weighted Assets, any additional Market Risk not captured within Modelled VaR, including Incremental Risk Charges and Correlation Risk.

‘Client Assets’ Assets managed or administered by Barclays on behalf of clients including assets under management (AUM), custody assets, assets under administration and client deposits.

‘CLOs and Other insured assets’ Highly rated CLO positions wrapped by monolines, non-CLOs wrapped by monolines and other assets wrapped with Credit Support Annex (CSA) protection.

‘Collateralised Debt Obligation (CDO)’ Securities issued by a third party which reference Asset Backed Securities (ABSs) (defined above) and/or certain other related assets purchased by the issuer. CDOs may feature exposure to sub-prime mortgage assets through the underlying assets.

‘Collateralised Loan Obligation (CLO)’ A security backed by the repayments from a pool of commercial loans. The payments may be made to different classes of owners (in tranches).

‘Collateralised Mortgage Obligation (CMO)’ A type of security backed by mortgages. A special purpose entity receives income from the mortgages and passes them on to investors of the security.

‘Collectively assessed impairment allowances’ Impairment of financial assets is measured collectively where a portfolio comprises homogenous assets and where appropriate statistical techniques are available.

‘Combined Buffer Requirement’ In the context of the CRD IV capital obligations, the combined requirements of the Capital Conservation Buffer and the GSII Buffer.

‘Commercial paper (CP)’ Short-term notes issued by entities, including banks, for funding purposes.

‘Commercial real estate’ Commercial real estate includes office buildings, industrial property, medical centres, hotels, retail stores, shopping centres, farm land, multifamily housing buildings, warehouses, garages, and industrial properties and other similar properties. Commercial real estate loans are loans backed by a package of commercial real estate. Note: for the purposes of the Credit Risk section, the UK CRE portfolio includes property investment, development, trading and housebuilders but excludes social housing contractors.

‘Committee of Sponsoring Organisations of the Treadway Commission Framework (COSO)’ A joint initiative of five private sector organisations dedicated to providing development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence.

‘Commodity derivatives’ Exchange traded and over-the-counter (OTC) derivatives based on an underlying commodity (e.g. metals, precious metals, oil and oil related, power and natural gas).

‘Commodity risk’ Measures the impact of changes in commodity prices and volatilities, including the basis between related commodities (e.g. Brent vs. WTI crude prices).

‘Common Equity Tier 1 (CET1) capital’ In the context of CRD IV, a type of capital as defined by the Capital Requirements Regulation, predominantly consisting of common equity.

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Glossary

‘Common Equity Tier 1 (CET1) ratio’ A measure of the Group’s Common Equity Tier 1 capital as a percentage of Risk Weighted Assets under CRD IV. The Group must meet a prescribed ratio.

‘Compensation: income ratio’ The ratio of compensation to employees over total income net of insurance claims. Compensation represents total staff costs less non-compensation items consisting of outsourcing, bank payroll tax, staff training, redundancy costs and retirement costs.

‘Constant Currency Basis’ Excluding the impact of foreign currency conversion to GBP when comparing financial results in two different financial periods.

‘Contingent capital notes (CCNs)’ Interest bearing debt securities issued by Barclays PLC or its subsidiaries that are either permanently written off or converted into an equity instrument from the issuer’s perspective in the event of the Group’s core tier 1 (CT1) or Common Equity Tier 1 (CET1) ratio, as appropriate, falling below a specified level.

‘Core deposit intangibles’ Premium paid to acquire the deposit base of an institution.

‘Correlation risk’ Refers to the change in marked to market value of a security when the correlation between the underlying assets changes over time.

‘Corporate and Investment Banking (CIB)’ Barclays Corporate and Investment Banking businesses which form part of Barclays Corporate & International.

‘Cost: income ratio’ Operating expenses compared to total income net of insurance claims.

‘Cost of Equity’ The rate of return targeted by the equity holders of a company.

‘Cost: net operating income ratio’ Operating expenses compared to total income net of insurance claims less credit impairment charges and other provisions.

‘Cost to Achieve (CTA)’ Non-recurring investment in initiatives to drive cost and business efficiency across Barclays through rightsizing, industrialisation and innovation.

‘Cost to income jaws’ Relationship of the percentage change movement in total operating expenses relative to total income net of insurance claims.

‘Counter-Cyclical Capital Buffer (CCCB)’ CET1 Capital of up to 2.5% of Risk Weighted Assets that is required to be held under CRD IV rules to ensure that banks build up surplus capital when macroeconomics conditions indicate areas of the economy are overheating.

‘Countercyclical leverage ratio buffer (CCLB)’ A macroprudential buffer that applies to all PRA regulated institutions from 2018 and is calculated at 35% of any risk weighted countercyclical capital buffer set by the FPC. The CCLB applies in addition to the minimum of 3% and any G-SII additional Leverage Ratio Buffer that applies.

‘Counterparty credit risk’ In the context of Risk Weighted Assets, a component of Risk Weighted Assets that represents the risk of loss in derivatives, repurchase agreements and similar transactions resulting from the default of the counterparty.

‘Coverage ratio’ In the context of the Credit risk disclosures, impairment allowances as a percentage of Credit Risk Loan balances.

‘Covered bonds’ Debt securities backed by a portfolio of mortgages that are segregated from the issuer’s other assets solely for the benefit of the holders of the covered bonds.

‘CRD IV’ The Fourth Capital Requirements Directive, an EU Directive and an accompanying Regulation (CRR) that together prescribe EU capital adequacy and liquidity requirements and implements Basel 3 in the European Union.

’Credit conversion factor (CCF)’ Factor used to estimate the risk from off-balance sheet commitments for the purpose of calculating the total Exposure at Default (EAD) used to calculate Risk Weighted Assets (RWAs).

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Glossary

‘Credit default swaps (CDS)’ A contract under which the protection seller receives premiums or interest-related payments in return for contracting to make payments to the protection buyer in the event of a defined credit event. Credit events normally include bankruptcy, payment default on a reference asset or assets, or downgrades by a rating agency.

‘Credit derivatives (CDs)’ An arrangement whereby the credit risk of an asset (the reference asset) is transferred from the buyer to the seller of the protection.

‘Credit impairment charges’ Also known as ‘credit impairment’. Impairment charges on loans and advances to customers and banks and impairment charges on available for sale assets and reverse repurchase agreements.

‘Credit market exposures’ Assets and other instruments relating to commercial real estate and leveraged finance businesses that have been significantly impacted by the deterioration in the global credit markets. The exposures include positions subject to fair value movements in the Income Statement, positions that are classified as loans and advances and available for sale and other assets.

‘Credit Products’ Represents credit products and Securitised Products income.

‘Credit quality step’ In the context of the Standardised Approach to calculating credit risk RWAs, a “credit quality assessment scale” maps the credit assessments of a recognised credit rating agency or export credit agency to credit quality steps that determine the risk weight to be applied to an exposure.

‘Credit risk’ The risk of the Group suffering financial loss if a counterparty fails to fulfil its contractual obligations to the Group under a loan agreement or similar. In the context of Risk Weighted Assets, it is the component of Risk Weighted Assets that represents the risk of loss in loans and advances and similar transactions resulting from the default of the counterparty.

‘Credit Risk Loans (CRLs)’ A loan becomes a credit risk loan when evidence of deterioration has been observed, for example a missed payment or other breach of covenant. A loan may be reported in one of three categories: (i) impaired loans; (ii) accruing past due 90 days or more; and (iii) impaired or restructured loans. These may include loans which, while impaired, are still performing but have associated individual impairment allowances raised against them.

‘Credit risk mitigation’ A range of techniques and strategies to actively mitigate credit risks to which the bank is exposed. These can be broadly divided into three types; collateral, netting and set-off, and risk transfer.

‘Credit spread’ The premium over the benchmark or risk-free rate required by the market to accept a lower credit quality.

‘Credit Valuation Adjustment (CVA)’ The difference between the risk-free value of a portfolio of trades and the market value which takes into account the counterparty’s risk of default. The CVA therefore represents an estimate of the adjustment to fair value that a market participant would make to incorporate the credit risk of the counterparty due to any failure to perform on contractual agreements.

‘CRL Coverage’ Impairment allowances as a percentage of total CRL (See ‘Credit Risk Loans’). Also known as the ‘CRL coverage ratio’.

‘Customer assets’ Represents loans and advances to customers. Average balances are calculated as the sum of all daily balances for the year to date divided by number of days in the year to date.

‘Customer deposits’ In the context of Funding Risk, Liquidity Risk section, money deposited by all individuals and companies that are not credit institutions. Such funds are recorded as liabilities in the Group’s balance sheet under Customer Accounts.

‘Customer liabilities’ Customer deposits.

‘Customer net interest income’ The sum of customer asset and customer liability net interest income. Customer net interest income reflects interest related to customer assets and liabilities only and does not include any interest on securities or other non-customer assets and liabilities.

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Glossary

‘CVA volatility charge’ The volatility charge added to exposures that adjusts for mid-market valuation on a portfolio of transactions with a counterparty. This is to reflect the current market value of the credit risk associated with the counterparty to the Bank. The charge is prescribed by the CRR.

‘Daily Value at Risk (DVaR)’ An estimate of the potential loss which might arise from market movements under normal market conditions, if the current positions were to be held unchanged for one business day, measured to a specified confidence level.

‘DBRS’ A credit rating agency.

‘Debit Valuation Adjustment (DVA)’ The opposite of Credit Valuation Adjustment (CVA). It is the difference between the risk-free value of a portfolio of trades and the market value which takes into account the Group’s risk of default. The DVA, therefore, represents an estimate of the adjustment to fair value that a market participant would make to incorporate the credit risk of the Group due to any failure to perform on contractual obligations. The DVA decreases the value of a liability to take into account a reduction in the remaining balance that would be settled should the Group default or not perform any contractual obligations.

‘Debt buy-backs’ Purchases of the Group’s issued debt securities, including equity accounted instruments, leading to their de-recognition from the balance sheet.

‘Debt securities in issue’ Transferable securities evidencing indebtedness of the Group. These are liabilities of the Group and include certificates of deposit and commercial paper.

‘Default grades’ Barclays classify ranges of default probabilities into a set of 21 intervals called default grades, in order to distinguish differences in the probability of default risk.

‘Derivatives’ In the context of Non-Core Analysis of Total income, Derivatives comprise non strategic businesses from the non-core Investment Bank

‘Derivatives netting’ Adjustments applied across asset and liability mark-to-market derivative positions pursuant to legally enforceable bilateral netting agreements and eligible cash collateral received in derivative transactions that meet the requirements of BCBS 270.

‘Diversification effect’ Reflects the fact the risk of a diversified portfolio is smaller than the sum of the risks of its constituent parts. It is measured as the sum of the individual asset class DVaR (see above) estimates less the total DVaR.

‘Dodd-Frank Act (DFA)’ The US Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

‘Early warning lists (EWL)’ Categorisations for wholesale customers used to identify at an early stage those customers where it is believed that difficulties may develop, allowing timely corrective action to be taken. There are three categories of EWL, with risk increasing from EWL 1 (caution) to EWL 2 (medium) and EWL 3 (high). It is expected that most cases would be categorised EWL 1 before moving to 2 or 3, but it is recognised that some cases may be categorised to EWL 2 or 3 directly.

‘Early Warning List (EWL) Managed accounts’ EWL Managed accounts are Business Lending customers that exceed the Arrears Managed Accounts limits and are monitored with standard processes that record heightened levels of risk through an EWL grading.

‘Earnings per Share contribution’ The attributable profit or loss generated by a particular business or segment divided by the weighted average number of Barclays shares in issue to illustrate on a per share basis how that business or segment contributes total earnings per share.

‘Economic Value of Equity (EVE)’ Change in the present value of the banking book of a parallel (upward or downward) interest rate shock.

‘Encumbrance’ The use of assets to secure liabilities, such as by way of a lien or charge.

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Glossary

‘Enterprise Risk Management Framework (ERMF)’ Barclays risk management responsibilities are laid out in the Enterprise Risk Management Framework. This framework, which was introduced in 2013, creates clear ownership and accountability, ensures the Group’s most significant risk exposures are controlled, understood and managed in accordance with agreed risk appetite, and ensures regular reporting of both risk exposures and the operating effectiveness of controls. This framework also clarifies the definition of the three lines of defence and extends its scope to all businesses and functions.

‘Equities’ Trading businesses encompassing Cash Equities, Equity Derivatives & Equity Financing

‘Equity and stock index derivatives’ Derivatives whose value is derived from equity securities. This category includes equity and stock index swaps and options (including warrants, which are equity options listed on an exchange). The Group also enters into fund-linked derivatives, being swaps and options whose underlyings include mutual funds, hedge funds, indices and multi-asset portfolios. An equity swap is an agreement between two parties to exchange periodic payments, based upon a notional principal amount, with one side paying fixed or floating interest and the other side paying based on the actual return of the stock or stock index. An equity option provides the buyer with the right, but not the obligation, either to purchase or sell a specified stock, basket of stocks or stock index at a specified price or level on or before a specified date.

‘Equity risk’ In the context of trading book capital requirements, the risk of change in market value of an equity investment.

‘Equity structural hedge’ An interest rate hedge in place to manage the volatility in net earnings generated by businesses on the Group’s equity, with the impact allocated to businesses in line with their economic capital usage.

‘Euro Interbank Offered Rate (EURIBOR)’ A benchmark interest rate at which banks can borrow funds from other banks in the European interbank market.

‘Europe’ Geographic segment comprising countries in which Barclays operates within the EU (excluding UK), Northern Continental and Eastern Europe.

‘European Securities and Markets Authority (ESMA)’ An independent European Supervisory Authority with the remit of enhancing the protection of investors and reinforcing stable and well-functioning financial markets in the European Union.

‘Expected losses’ The Group’s measure of anticipated losses for exposures captured under an internal ratings based credit risk approach for capital adequacy calculations. It is measured as the Barclays modelled view of anticipated losses based on Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD), with a one year time horizon.

’Expert lender models’ Models of risk measures that are used for parts of the portfolio where the risk drivers are specific to a particular counterparty, but where there is insufficient data to support the construction of a statistical model. These models utilise the knowledge of credit experts that have in depth experience of the specific customer type being modelled.

‘Exposure’ Generally refers to positions or actions taken by the firm, or consequences thereof, that may put a certain amount of a bank’s resources at risk.

‘Exposure at Default (EAD)’ The estimation of the extent to which Barclays may be exposed to a customer or counterparty in the event of, and at the time of, that counterparty’s default. At default, the customer may not have drawn the loan fully or may already have repaid some of the principal, so that exposure may be less than the approved loan limit.

‘External Credit Assessment Institutions (ECAI)’ Institutions whose credit assessments may be used by credit institutions for the determination of risk weight exposures according to CRD IV.

‘F-IRB / Foundation-Internal Ratings Based’ See ‘Internal Ratings Based (IRB)’.

‘Financial Conduct Authority (FCA)’ The statutory body responsible for conduct of business regulation and supervision of UK authorised firms. The FCA also has responsibility for the prudential regulation of firms that do not fall within the PRA’s scope.

‘Financial Services Compensation Scheme (FSCS)’ The UK’s fund for compensation of authorised financial services firms that are unable to pay claims.

‘Fitch’ A credit rating agency.

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Glossary

‘Forbearance’ Forbearance programmes to assist customers in financial difficulty through agreements to accept less than contractual amounts due where financial distress would otherwise prevent satisfactory repayment within the original terms and conditions of the contract. These agreements may be initiated by the customer, Barclays or a third party and include approved debt counselling plans, minimum due reductions, interest rate concessions and switches from capital and interest repayments to interest-only payments.

‘Forbearance Programmes for Credit Cards’ Can be split into 2 main types: Repayment plans- A temporary reduction in the minimum payment due, for a maximum of 60 months. This may involve a reduction in interest rates to prevent negative amortization; Fully amortising- A permanent conversion of the outstanding balance into a fully amortising loan, over a maximum period of 60 months for cards and 120 months for loans.

‘Forbearance Programmes for Home Loans’ Can be split into 4 main types: Interest-only conversions- A temporary change from a capital and interest repayment to an interest-only repayment, for a maximum of 24 months; Interest rate reductions- A temporary reduction in interest rate, for a maximum of 12 months; Payment concessions- An agreement to temporarily accept reduced loan repayments, for a maximum of 24 months; Term extensions- A permanent extension to the loan maturity date which may involve a reduction in interest rates, and usually involves the capitalisation of arrears.

‘Forbearance Programmes for Unsecured Loans’ Can be split into 3 main types: Payment concessions- An agreement to temporarily accept reduced loan repayments, for a maximum of 12 months; Term extensions- A permanent extension to the loan maturity date, usually involving the capitalisation of arrears; Fully amortising- A permanent conversion of the outstanding balance into a fully amortising loan, over a maximum period of 60 months for cards and 120 months for loans.

‘Foreclosures in Progress’ The process by which the bank initiates legal action against a customer with the intention of terminating a loan agreement whereby the bank may repossess the property subject to local law and recover amounts it is owed.

‘Foreign exchange derivatives’ The Group’s principal exchange rate-related contracts are forward foreign exchange contracts, currency swaps and currency options. Forward foreign exchange contracts are agreements to buy or sell a specified quantity of foreign currency, usually on a specified future date at an agreed rate. Currency swaps generally involves the exchange, or notional exchange, of equivalent amounts of two currencies and a commitment to exchange interest periodically until the principal amounts are re-exchanged on a future date. Currency options provide the buyer with the right, but not the obligation, either to purchase or sell a fixed amount of a currency at a specified exchange rate on or before a future date. As compensation for assuming the option risk, the option writer generally receives a premium at the start of the option period.

‘Foreign exchange risk’ In the context of DVaR, the impact of changes in foreign exchange rates and volatilities.

‘Front Arena’ A deal solution that helps to trade and manage positions and risk in the global capital markets.

‘Full time equivalent’ Full time equivalent units are the on-job hours paid for employee services divided by the number of ordinary-time hours normally paid for a full-time staff member when on the job (or contract employees where applicable).

‘Fully loaded’ When a measure is presented or described as being on a fully loaded basis, it is calculated without applying the transitional provisions set out in Part Ten of CRD IV.

‘Fully loaded CET1 ratio’ An estimated risk based ratio calculated as Common Equity Tier 1 capital divided by Risk Weighted Assets (before the application of transitional provisions set out in CRD IV and interpretive guidance published by the PRA).

‘Funding for Lending Scheme (FLS)’ Scheme launched by the Bank of England in July 2012 to incentivise banks and building societies to lend to UK households and non-financial companies through reduced funding costs, the benefits of which are passed on to UK borrowers in the form of cheaper and more easily available loans.

‘Funding mismatch’ In the context of Eurozone balance sheet funding exposures, the excess of local euro denominated external assets, such as customer loans, over local euro denominated liabilities, such as customer deposits.

‘Funding risk’ The risk that the Group may not be able to achieve its business plans due to being unable to maintain appropriate capital ratios (Capital Risk), being unable to meet its obligations as they fall due (Liquidity Risk), rating agency, methodology changes or of adverse changes in interest rate curves impacting structural hedges of non – interest bearing assets/ liabilities or on income or foreign exchange rates on capital ratios (Structural risk).

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Glossary

‘Funds and fund-linked products’ Includes holdings in mutual funds, hedge funds, fund of funds and fund linked derivatives.

‘Gains on acquisitions’ The amount by which the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities, recognised in a business combination, exceeds the cost of the combination.

‘General market risk’ The risk of a price change in a financial instrument due to a change in level of interest rates or owing to a broad equity market movement unrelated to any specific attributes of individual securities.

‘Globally-Systemically Important Financial Institutions (G-SIFIs)’ Global financial institutions whose size, complexity and systemic interconnectedness, mean that their distress or failure would cause significant disruption to the wider financial system and economic activity. The Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) have identified a group of 30 globally systemically important banks.

‘G-SII additional leverage ratio buffer (G-SII ALRB)’ A macroprudential buffer that applies to globally systemically important banks (G-SIBs) and other major domestic UK banks and building societies, including banks that are subject to ring-fencing requirements. The G-SII ALRB will be calibrated as 35% (on a phased basis) of the combined systemic risk buffers that applies to the bank.

‘GSII Buffer’ Common Equity Tier 1 capital required to be held under CRD IV to ensure that banks build up surplus capital to compensate for the systemic risk that such institutions represent to the financial system.

’Grandfathering’ In the context of CRD IV capital resources, the application of the rules on instrument eligibility during the transitional period as defined in the Capital Requirements Regulation.

‘Gross charge-off rates’ Represents the balances charged-off to recoveries in the reporting period, expressed as a percentage of average outstanding balances excluding balances in recoveries. Charge-off to recoveries generally occurs when the collections focus switches from the collection of arrears to the recovery of the entire outstanding balance, and represents a fundamental change in the relationship between the bank and the customer. This is a measure of the proportion of customers that have gone into default during the period.

‘Gross new lending’ New lending advanced to customers during the period.

‘Group’ Barclays PLC together with its subsidiaries.

‘Guarantee’ Unless otherwise described, an undertaking by a third party to pay a creditor should a debtor fail to do so. It is a form of credit substitution.

‘Head Office and Other Operations’ A business segment comprising Brand and Marketing, Finance, Head Office, Human Resources, Internal Audit, Legal and Compliance, Risk, Treasury and Tax and other operations.

‘High Net Worth’ Businesses within Barclays UK and Barclays Corporate & International that provide banking and other services to high net worth customers.

‘High Risk’ In retail banking, ‘High Risk’ is defined as the subset of up-to-date customers who, either through an event or observed behaviour exhibit potential financial difficulty. Where appropriate, these customers are proactively contacted to assess whether assistance is required.

‘Home loan’ A loan to purchase a residential property. The property is then used as collateral to guarantee repayment of the loan. The borrower gives the lender a lien against the property and the lender can foreclose on the property if the borrower does not repay the loan per the agreed terms. Also known as a residential mortgage.

‘IMA / Internal Model Approach’ In the context of Risk Weighted Assets, Risk Weighted Assets for which the exposure amount has been derived via the use of a PRA approved internal market risk model.

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Glossary

‘Impairment allowances’ A provision held on the balance sheet as a result of the raising of a charge against profit for incurred losses in the lending book. An impairment allowance may either be identified or unidentified and individual or collective.

‘Income’ Total income net of insurance claims, unless otherwise specified.

‘Incremental Risk Charge’ An estimate of the incremental risk arising from rating migrations and defaults beyond what is already captured in specific market risk VaR for the non correlation trading portfolio.

‘Independent Commission on Banking (ICB)’ Body set up by HM Government to identify structural and non-structural measures to reform the UK banking system and promote competition.

‘Individual liquidity guidance (ILG)’ Guidance given to a firm about the amount, quality and funding profile of liquidity resources that the PRA has asked the firm to maintain.

‘Inflation risk’ In the context of DVaR, the impact of changes in inflation rates and volatilities on cash instruments and derivatives.

‘Insurance Risk’ The risk of the Group’s aggregate insurance premiums received from policyholders under a portfolio of insurance contracts being inadequate to cover the claims arising from those policies.

‘Interchange’ Income paid to a credit card issuer for the clearing and settlement of a sale or cash advance transaction.

‘Interest only home loans’ Under the terms of these loans, the customer makes payments of interest only for the entire term of the mortgage, although customers may make early repayments of the principal within the terms of their agreement. The customer is responsible for repaying the entire outstanding principal on maturity, which may require the sale of the mortgaged property.

‘Interest rate derivatives’ Derivatives linked to interest rates. This category includes interest rate swaps, collars, floors options and swaptions. An interest rate swap is an agreement between two parties to exchange fixed rate and floating rate interest by means of periodic payments based upon a notional principal amount and the interest rates defined in the contract. Certain agreements combine interest rate and foreign currency swap transactions, which may or may not include the exchange of principal amounts. A basis swap is a form of interest rate swap, in which both parties exchange interest payments based on floating rates, where the floating rates are based upon different underlying reference indices. In a forward rate agreement, two parties agree a future settlement of the difference between an agreed rate and a future interest rate, applied to a notional principal amount. The settlement, which generally occurs at the start of the contract period, is the discounted present value of the payment that would otherwise be made at the end of that period.

‘Interest rate risk’ The risk of interest rate volatility adversely impacting the Groups net interest margin. In the context of the calculation of market risk DVaR, measures the impact of changes in interest (swap) rates and volatilities on cash instruments and derivatives.

‘Internal Assessment Approach (IAA)’ One of three types of calculation that a firm with permission to use the Internal Ratings Based (IRB) approach may apply to securitisation exposures. It consists of mapping a firm’s internal rating methodology for credit exposures to those of an External Credit Assessment Institution (ECAI) to determine the appropriate risk weight based on the ratings based approach. Its applicability is limited to ABCP programmes related to liquidity facilities and credit enhancement.

‘Internal Capital Adequacy Assessment Process (ICAAP)’ Companies are required to perform a formal Internal Capital Adequacy Assessment Process (ICAAP) as part of the Pillar 2 requirements (BIPRU) and to provide this document to the PRA on a yearly basis. The ICAAP document summarises the group’s risk management framework, including approach to managing all risks (i.e. Pillar 1 and non-Pillar 1 risks); and, the group’s risk appetite, economic capital and stress testing frameworks.

‘Internal model method (IMM)’ In the context of Risk Weighted Assets, Risk Weighted Assets for which the exposure amount has been derived via the use of a PRA approved internal counterparty credit risk model.

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Glossary

‘Internal Ratings Based (IRB)’ An approach under the CRR framework that relies on the bank’s internal models to derive the risk weights. The IRB approach is divided into two alternative applications, Advanced and Foundation:

– Advanced IRB (‘A-IRB’): the bank uses its own estimates of probability of default (PD), loss given default (LGD) and credit conversion factor to model a given risk exposure.

– Foundation IRB: the bank applies its own PD as for Advanced, but it uses standard parameters for the LGD and the credit conversion factor. The Foundation IRB approach is specifically designed for wholesale credit exposures. Hence retail, equity, securitisation positions and non-credit obligations asset exposures are treated under standardised or A-IRB.

‘Investment Bank’ The Group’s investment bank which consists of origination led and returns focused markets and banking business which forms part of the Corporate and Investment Banking segment of Barclays Corporate & International.

‘Investment Banking Fees’ In the context of Investment Bank Analysis of Total Income, fees generated from origination activity businesses – including financial advisory, debt and equity underwriting.

‘Investment grade’ A debt security, treasury bill or similar instrument with a credit rating of AAA to BBB as measured by external credit rating agencies.

‘ISDA Master Agreement’ The most commonly used master contract for OTC derivative transactions internationally. It is part of a framework of documents, designed to enable OTC derivatives to be documented fully and flexibly. The framework consists of a master agreement, a schedule, confirmations, definition booklets, and a credit support annex. The ISDA master agreement is published by the International Swaps and Derivatives Association (ISDA).

‘Key Risk Scenarios (KRS)’ Key Risk Scenarios are a summary of the extreme potential risk exposure for each Key Risk in each business and function, including an assessment of the potential frequency of risk events, the average size of losses and three extreme scenarios. The Key Risk Scenario assessments are a key input to the Advanced Measurement Approach calculation of regulatory and economic capital requirements.

‘Lender Option Borrower Option (LOBO)’ A clause previously included in ESHLA loans that allowed Barclays, on specific dates, to raise the fixed interest rate on the loan, upon which the borrower had the option to either continue with the loan at the higher rate, or re-pay the loan at par.

‘Lending’ In the context of Investment Bank Analysis of Total Income, lending income includes net interest income, gains or losses on loan sale activity, and risk management activity relating to the loan portfolio.

‘Letters of credit’ A letter typically used for the purposes of international trade guaranteeing that a debtor’s payment to a creditor will be made on time and in full. In the event that the debtor is unable to make payment, the bank will be required to cover the full or remaining amount of the purchase.

‘Level 1 assets’ High quality liquid assets under the Basel Committee’s Liquidity Coverage Ratio (LCR), including cash, central bank reserves and higher quality government securities.

‘Level 2 assets’ Under the Basel Committee’s Liquidity Coverage Ratio high quality liquid assets (HQLA) are comprised of Level 1 and Level 2 assets, with the latter comprised of Level 2A and Level 2B assets. Level 2A assets include, for example, lower quality government securities, covered bonds and corporate debt securities. Level 2B assets include, for example, lower rated corporate bonds, residential mortgage backed securities and equities that meet certain conditions.

‘Leverage ratio’ A measure of the Group’s Tier 1 capital to total leverage exposure under CRD IV.

‘Liquidity Coverage Ratio (LCR)’ The ratio of the stock of high quality liquid assets to expected net cash outflows over the next 30 days. High-quality liquid assets should be unencumbered, liquid in markets during a time of stress and, ideally, be central bank eligible. These include, for example, cash and claims on central governments and central banks.

‘Liquidity Pool’ The Group liquidity pool comprises cash at central banks and highly liquid collateral specifically held by the Group as a contingency to enable the bank to meet cash outflows in the event of stressed market conditions.

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Glossary

‘Liquidity risk appetite (LRA)’ The level of liquidity risk that the Group chooses to take in pursuit of its business objectives and in meeting its regulatory obligations.

‘Liquidity Risk Management Framework (the Liquidity Framework)’ The Liquidity Risk Management Framework (the Liquidity Framework), which is sanctioned by the Board Risk Committee (BRC) and which incorporates liquidity policies, systems and controls that the Group has implemented to manage liquidity risk within tolerances approved by the Board and regulatory agencies.

‘Litigation and conduct charges’ Litigation and conduct charges include regulatory fines, litigation settlements and conduct related customer redress.

‘Loan loss rate’ Is quoted in basis points and represents total annualised loan impairment divided by gross loans and advances to customers and banks held at amortised cost at the balance sheet date.

‘Loan to deposit ratio’ The ratio of loans and advances to customer accounts calculated for Barclays UK; Corporate; International Consumer, Cards and Payments; and Non-Core retail. This excludes particular liabilities issued by the retail businesses that have characteristics comparable to retail deposits (for example structured Certificates of Deposit and retail bonds), which are included within debt securities in issue.

‘Loan to value (LTV) ratio’ Expresses the amount borrowed against an asset (i.e. a mortgage) as a percentage of the appraised value of the asset. The ratios are used in determining the appropriate level of risk for the loan and are generally reported as an average for new mortgages or an entire portfolio. Also see ‘Marked to market (MMT) LTV ratio.’

‘London Interbank Offered Rate (LIBOR)’ A benchmark interest rate at which banks can borrow funds from other banks in the London interbank market.

‘Long-term refinancing operation (LTRO)’ The European Central Bank’s 3 year long term bank refinancing operation.

‘Loss Given Default (LGD)’ The fraction of Exposure at Default (EAD) (defined above) that will not be recovered following default. LGD comprises the actual loss (the part that is not expected to be recovered), together with the economic costs associated with the recovery process.

‘Macro Products’ Represents Rates, currency and commodities income.

‘Management DVaR’ The Daily Value at Risk (DVaR) used for internal market risk management purposes. The Investment Bank uses a DVaR with a two-year equally weighted historical period, at a 95% confidence level, for all trading portfolios and certain banking books.

‘Mandatory break clause’ In the context of counterparty credit risk, a contract clause that means a trade will be ended on a particular date.

‘Marked to market (MTM) LTV ratio’ The loan amount as a percentage of the current value of the asset used to secure the loan. Also see ‘Balance weighted Loan to Value (LTV) ratio’ and ‘Valuation weighted Loan to Value (LTV) ratio.’

‘Market risk’ The risk of the Group suffering financial loss due to changes in market prices. In the context of Risk Weighted Assets, it is the component of Risk Weighted Assets that represents the risk of loss resulting from fluctuations in the market value of positions held in equities, commodities, currencies, derivatives and interest rates.

‘Master netting agreements’ An agreement that provides for a single net settlement of all financial instruments and collateral covered by the agreement in the event of the counterparty’s default or bankruptcy or insolvency, resulting in a reduced exposure.

‘Master trust securitisation programmes’ A securitisation structure where a trust is set up for the purpose of acquiring a pool of receivables. The trust issues multiple series of securities backed by these receivables.

‘Matchbook (or matched book)’ An asset/liability management strategy where assets are matched against liabilities of equivalent value and maturity.

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Glossary

‘Material Risk Takers (MRTs)’ Categories of staff whose professional activities have or are deemed to have a material impact on Barclays’ risk profile, as determined in accordance with the European Banking Authority regulatory technical standard on the identification of such staff.

‘Methodology and policy’ In the context of the Funding Risk, Capital Risk section, the effect on RWAs of methodology changes driven by regulatory policy changes.

‘Minimum capital requirement’ Under Pillar 1 of the Basel framework, the amount of capital required for an exposure.

‘Model updates’ In the context of the Funding Risk, Capital Risk section, changes in RWAs caused by model implementation, changes in model scope or any changes required to address model malfunctions.

‘Model validation’ Process through which models are independently challenged, tested and verified to prove that they have been built, implemented and used correctly, and that they continue to be fit-for-purpose.

‘Modelled—VaR’ In the context of Risk Weighted Assets, Market risk calculated using value at risk models laid down by the CRR and supervised by the PRA.

‘Money market funds’ Investment funds typically invested in short-term debt securities.

‘Monoline derivatives’ Derivatives with a monoline insurer such as credit default swaps referencing the underlying exposures held.

‘Moody’s’ A credit rating agency.

‘Mortgage Current Accounts (MCA) Reserves’ A secured overdraft facility available to home loan customers which allows them to borrow against the equity in their home. It allows draw-down up to an agreed available limit on a separate but connected account to the main mortgage loan facility. The balance drawn must be repaid on redemption of the mortgage.

‘Multilateral development banks’ Financial institutions created for the purposes of development, where membership transcends national boundaries.

‘National discretion’ Discretions in CRD IV given to member states to allow the local regulator additional powers in the application of certain CRD IV rules in its jurisdiction.

‘Net asset value per share’ Calculated by dividing shareholders’ equity, excluding non-controlling interests and other equity instruments, by the number of issued ordinary shares.

‘Net interest income’ The difference between interest income on assets and interest expense on liabilities.

‘Net interest margin’ Annualised net interest income divided by the sum of the average assets and average liabilities for those businesses.

‘Net investment income’ Changes in the fair value of financial instruments designated at fair value, dividend income and the net result on disposal of available for sale assets.

‘Net Stable Funding Ratio (NSFR)’ The ratio of available stable funding to required stable funding over a one year time horizon, assuming a stressed scenario. The ratio is required to be over 100% with effect from 2015. Available stable funding would include such items as equity capital, preferred stock with a maturity of over 1 year, or liabilities with a maturity of over 1 year. The required amount of stable funding is calculated as the sum of the value of the assets held and funded by the institution, multiplied by a specific required stable funding (RSF) factor assigned to each particular asset type, added to the amount of potential liquidity exposure multiplied by its associated RSF factor.

‘Net tangible asset value per share’ Calculated by dividing shareholders equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares.

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Glossary

‘Net trading income’ Gains and losses arising from trading positions which are held at fair value, in respect of both market-making and customer business, together with interest, dividends and funding costs relating to trading activities.

‘Net written credit protection’ In the context of leverage exposure, the net notional value of credit derivatives protection sold and credit derivatives protection bought.

‘New bookings’ The total of the original balance on accounts opened in the reporting period, including any applicable fees and charges included in the loan amount.

‘Non-asset backed debt instruments’ Debt instruments not backed by collateral, including government bonds; US agency bonds; corporate bonds; commercial paper; certificates of deposit; convertible bonds; corporate bonds and issued notes.

‘Non-customer net interest income(NII)’ / ‘Non-customer interest income’ Principally comprises the impact of product and equity structural hedges, as well as certain other net interest income received on government bonds and other debt securities held for the purposes of interest rate hedging and liquidity for local banking activities.

‘Non-model method (NMM)’ In the context of Risk Weighted Assets, Counterparty credit risk, Risk Weighted Assets where the exposure amount has been derived through the use of CRR norms, as opposed to an internal model.

‘Non-performance costs’ Costs other than performance costs.

‘Non-performing proportion of outstanding balances’ Defined as balances greater than 90 days delinquent (including forbearance accounts greater than 90 days and accounts charged off to recoveries), expressed as a percentage of outstanding balances.

‘Non-significant holdings in financial institutions’ Investments that the Group holds in the capital of banking, financial or insurance entities that are outside the scope of regulatory consolidation and where the bank owns less than 10% of the issued share capital of the entity.

‘Non-Traded Market Risk’ The risk of a reduction to earnings or capital due to an inability to hedge the banking book balance sheet.

‘Notch’ A single unit of measurement in a credit rating scale.

‘Notional amount’ The nominal or face amount of a financial instrument, such as a loan or a derivative, that is used to calculate payments made on that instrument.

‘Operational risk’ The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk. In the context of Risk Weighted Assets, it is the component of Risk Weighted Assets that represents the risk of loss resulting from these risks.

‘Operational RiskData eXchange (ORX)’ The Operational Riskdata eXchange Association (ORX) is a not-for-profit industry association dedicated to advancing the measurement and management of operational risk in the global financial services industry. Barclays is a member of ORX.

‘Origination led’ Focus on high margin low capital fee based activities and related hedging opportunities.

‘Over-the-counter (OTC) derivatives’ Derivative contracts that are traded (and privately negotiated) directly between two parties. They offer flexibility because, unlike standardised exchange-traded products, they can be tailored to fit specific needs.

‘Own credit’ The effect of changes in the Group’s own credit standing on the fair value of financial liabilities.

‘Owner occupied mortgage’ A mortgage where the intention of the customer was to occupy the property at origination.

‘Past due items’ Refers to loans where the borrower has failed to make a payment when due under the terms of the loan contract.

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Glossary

‘Payment Protection Insurance (PPI) redress’ Provision for the settlement of PPI miss-selling claims and related claims management costs.

‘Pension Risk’ The risk of the Group’s earnings and capital being adversely impacted by the Group’s defined benefit obligations increasing or the value of the assets backing these defined benefit obligations decreasing due to changes in both the level and volatility of prices.

‘Performance costs’ The accounting charge recognised in the period for performance awards. For deferred incentives and long-term incentives, the accounting charge is spread over the relevant periods in which the employee delivers service.

‘Pillar 1’ The part of the Basel framework that sets outs the rules that govern the calculation of Minimum capital requirements for credit, market and operational risks.

‘Pillar 2’ The part of the Basel framework that covers the supervisory reviews of the bank’s internal assessment of capital to ensure that firms have adequate capital to support all the relevant risks in their business.

‘Pillar 3’ The part of the Basel framework that covers external communication of risk and capital information by banks to promote transparency and good risk management.

‘Post-model adjustment (PMA)’ In the context of Basel models, a PMA is a short term increase in regulatory capital applied at portfolio level to account for model input data deficiencies, inadequate model performance or changes to regulatory definitions (e.g. definition of default) to ensure the model output is accurate, complete and appropriate.

‘Potential Credit Risk Loans (PCRLs)’ Comprise the outstanding balances to Potential Problem Loans (defined below) and the three categories of Credit Risk Loans (defined above).

‘Potential Future Exposure on Derivatives’ A regulatory calculation in respect of the Group’s potential future credit exposure on both exchange traded and OTC derivative contracts, calculated by assigning a standardised percentage (based on the underlying risk category and residual trade maturity) to the gross notional value of each contract.

‘Potential Problem Loans (PPLs)’ Loans where serious doubt exists as to the ability of the borrowers to continue to comply with repayment terms in the near future.

‘PRA waivers’ PRA approvals that specifically give permission to the Bank to either modify or waive existing rules. Waivers are specific to an organisation and require applications being submitted to and approved by the PRA.

‘Primary securitisations’ The issuance of securities (bonds and commercial papers) for fund-raising.

‘Primary Stress Tests’ In the context of Traded Market Risk, Stress Testing provides an estimate of potentially significant future losses that might arise from extreme market moves or scenarios. Primary Stress Tests apply stress moves to key liquid risk factors for each of the major trading asset classes.

‘Prime Services’ Involves financing of fixed income and equity positions using Repo and stock lending facilities. The Prime Services business also provides brokerage facilitation services for hedge fund clients offering execution and clearance facilities for a variety of asset classes.

‘Principal’ In the context of a loan, the amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest).

‘Principal Investments’ Private equity investments.

‘Private equity investments’ Investments in equity securities in operating companies not quoted on a public exchange. Investment in private equity often involves the investment of capital in private companies or the acquisition of a public company that results in the delisting of public equity. Capital for private equity investment is raised by retail or institutional investors and used to fund investment strategies such as leveraged buyouts, venture capital, growth capital, distressed investments and mezzanine capital.

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Glossary

‘Private-label securitisation’ Residential mortgage backed security transactions sold or guaranteed by entities that are not sponsored or owned by the government.

‘Probability of Default (PD)’ The likelihood that a loan will not be repaid and will fall into default. PD may be calculated for each client who has a loan (normally applicable to wholesale customers/clients) or for a portfolio of clients with similar attributes (normally applicable to retail customers). To calculate PD, Barclays assesses the credit quality of borrowers and other counterparties and assigns them an internal risk rating. Multiple rating methodologies may be used to inform the rating decision on individual large credits, such as internal and external models, rating agency ratings, and for wholesale assets market information such as credit spreads. For smaller credits, a single source may suffice such as the result from an internal rating model.

‘Product structural hedge’ An interest rate hedge that converts short term interest margin volatility on product balances (such as non-interest bearing current accounts and managed rate deposits) into a more stable medium term rate and which is built on a monthly basis to achieve a targeted maturity profile.

‘Properties in Possession held as ’Loans and Advances to Customers’’ Properties in the UK and Italy where the customer continues to retain legal title but where the bank has enforced the possession order as part of the foreclosure process to allow for the disposal of the asset or the court has ordered the auction of the property.

‘Properties in Possession held as ‘Other Real Estate Owned’’ Properties in South Africa, Spain and Portugal where the bank has taken legal ownership of the title as a result of purchase at an auction or similar and treated as ‘Other Real Estate Owned’ within other assets on the bank’s balance sheet.

‘Proprietary trading’ When a bank, brokerage or other financial institution trades on its own account, at its own risk, rather than on behalf of customers, so as to make a profit for itself.

‘Prudential Regulation Authority (PRA)’ The statutory body responsible for the prudential supervision of banks, building societies, insurers and a small number of significant investment firms in the UK. The PRA is a subsidiary of the Bank of England.

‘Prudential valuation adjustment (PVA)’ A calculation which adjusts the accounting values of positions held on balance sheet at fair value to comply with regulatory valuation standards, which place greater emphasis on the inherent uncertainty around the value at which a trading book position could be exited.

‘Public benchmark’ Unsecured medium term notes issued in public syndicated transactions.

‘Qualifying Revolving Retail Exposure (QRRE)’ In the context of the IRB approach to credit risk RWA calculations, an exposure meeting the criteria set out in BIPRU 4.6.42 R (2). It includes most types of credit card exposure.

‘Rates’ In the context of Investment Bank income analysis, trading revenue relating to government bonds and linear interest rate derivatives.

‘Re-aging’ The returning of a delinquent account to up-to-date status without collecting the full arrears (principal, interest and fees).

‘Real Estate Mortgage Investment Conduits (REMICs)’ An entity that holds a fixed pool of mortgages and that is separated into multiple classes of interests for issuance to investors.

‘Recoveries Impairment Coverage Ratio’ Impairment allowance held against recoveries balances expressed as a percentage of balance in recoveries.

‘Recoveries proportion of outstanding balances’ Represents the amount of recoveries (gross month-end customer balances of all accounts that have charged-off) as at the period end compared to total outstanding balances. The size of the recoveries book would ultimately have an impact on the overall impairment requirement on the portfolio. Balances in recoveries will decrease if: assets are written-off; amounts are collected; or assets are sold to a third party (i.e. debt sale).

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Glossary

‘Redenomination risk’ The risk of financial loss to the Group should one or more countries exit from the Euro, potentially leading to the devaluation of local balance sheet assets and liabilities.

‘Regulatory capital’ The amount of capital that a bank holds to satisfy regulatory requirements.

‘Renegotiated loans’ Loans are generally renegotiated either as part of an ongoing customer relationship or in response to an adverse change in the circumstances of the borrower. In the latter case renegotiation can result in an extension of the due date of payment or repayment plans under which the Group offers a concessionary rate of interest to genuinely distressed borrowers. This will result in the asset continuing to be overdue and will be individually impaired where the renegotiated payments of interest and principal will not recover the original carrying amount of the asset. In other cases, renegotiation will lead to a new agreement, which is treated as a new loan.

‘Repricing lag risk’ The risk that when underlying interest rates change it can take a number of months to change the customer rate e.g. should rates decrease then we would need to let our variable savings rate customers know that we would be decreasing their savings rates. This could result in a loss of income as it may take several months, whereas the “funding/investment” benefit reduces immediately.

‘Repurchase agreement (Repo)’ / ‘Reverse repurchase agreement (Reverse repo)’ Arrangements that allow counterparties to use financial securities as collateral for an interest bearing cash loan. The borrower agrees to sell a security to the lender subject to a commitment to repurchase the asset at a specified price on a given date. For the party selling the security (and agreeing to repurchase it in the future) it is a Repurchase agreement or Repo; for the counterparty to the transaction (buying the security and agreeing to sell in the future) it is a Reverse repurchase agreement or Reverse repo.

‘Re-securitisations’ The repackaging of Securitised Products into securities. The resulting securities are therefore securitisation positions where the underlying assets are also predominantly securitisation positions.

‘Reserve Capital Instruments (RCIs)’ Hybrid issued capital securities which may be debt or equity accounted, depending on the terms.

‘Residential Mortgage-Backed Securities (RMBS)’ Securities that represent interests in a group of residential mortgages. Investors in these securities have the right to cash received from future mortgage payments (interest and/or principal).

‘Residual maturity’ The remaining contractual term of a credit obligation associated with a credit exposure.

‘Restructured loans’ Comprises loans where, for economic or legal reasons related to the debtor’s financial difficulties, a concession has been granted to the debtor that would not otherwise be considered. Where the concession results in the expected cash flows discounted at the original effective interest rate being less than the loan’s carrying value, an impairment allowance will be raised.

‘Retail Loans’ Loans to individuals or small and medium sized enterprises rather than to financial institutions and larger businesses. It includes both secured and unsecured loans such as mortgages and credit card balances, as well as loans to certain smaller business customers, typically with exposures up to £3m or with a turnover up to £5m.

‘Return on average Risk Weighted Assets’ Annualised statutory profit as a proportion of average Risk Weighted Assets.

‘Return on average shareholders’ equity’ Annualised statutory profit after tax attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average shareholders’ equity, excluding non-controlling interests and other equity instruments.

‘Return on average tangible shareholders’ equity’ Annualised statutory profit after tax attributable to ordinary shareholders, including an adjustment for the tax credit in reserves in respect of other equity instruments, as a proportion of average shareholders’ equity excluding non-controlling interests and other equity instruments adjusted for the deduction of intangible assets and goodwill.

‘Risk Appetite’ The level of risk that Barclays is prepared to accept whilst pursuing its business strategy, recognising a range of possible outcomes as business plans are implemented.

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Glossary

‘Risk weighted assets (RWAs)’ A measure of a bank’s assets adjusted for their associated risks. Risk weightings are established in accordance with the Basel rules as implemented by CRD IV and local regulators.

‘Risks not in VaR (RNIVS)’ Refers to all the key risks which are not captured or not well captured within the VaR model framework.

‘Roll rate analysis’ The measurement of the rate at which retail accounts deteriorate through delinquency phases.

‘Sales commissions, commitments and other incentives’ Includes commission-based arrangements, guaranteed incentives and Long Term Incentive Plan awards.

‘Sarbanes-Oxley requirements’ The Sarbanes-Oxley Act 2002 (SOX), which was introduced by the U.S. Government to safeguard against corporate governance scandals such as Enron, WorldCom and Tyco. All US-listed companies must comply with SOX.

‘Second Lien’ Debt that is issued against the same collateral as higher lien debt but that is subordinate to it. In the case of default, compensation for this debt will only be received after the first lien has been repaid and thus represents a riskier investment than the first lien.

‘Secondary Stress Tests’ Secondary stress tests are used in measuring potential losses arising from illiquid market risks that cannot be hedged or reduced within the time period covered in Primary Stress tests.

‘Securities and loans’ In the context of Non-Core Analysis of Total income, Barclays Non-Core Securities and Loans comprise non strategic businesses, predominantly from the non-core Investment Bank and Corporate Bank.

‘Securities Financing Transactions (SFT)’ In the context of Risk Weighted Assets (RWAs), any of the following transactions: a repurchase transaction, a securities or commodities lending or borrowing transaction, or a margin lending transaction whereby cash collateral is received or paid in respect of the transfer of a related asset.

‘Securities financing transactions adjustments’ In the context of leverage ratio, a regulatory add-on calculated as exposure less collateral, taking into account master netting agreements.

‘Securities lending arrangements’ Arrangements whereby securities are legally transferred to a third party subject to an agreement to return them at a future date. The counterparty generally provides collateral against non performance in the form of cash or other assets.

‘Securitisation’ Typically, a process by which debt instruments such as mortgage loans or credit card balances are aggregated into a pool, which is used to back new securities. A company sells assets to a special purpose vehicle (SPV) which then issues securities backed by the assets. This allows the credit quality of the assets to be separated from the credit rating of the original borrower and transfers risk to external investors.

‘Securitised Products’ A business within the Investment Bank that offers a range of products relating to residential mortgage backed securities, commercial mortgage backed securities and other asset backed securities, in addition to restructuring and unwinding legacy credit structures.

‘Set-off clauses’ In the context of Counterparty credit risk, contract clauses that allow Barclays to set off amounts owed to us by a counterparty against amounts owed by us to the counterparty.

‘Settlement balances’ Are receivables or payables recorded between the date (the trade date) a financial instrument (such as a bond) is sold, purchased or otherwise closed out, and the date the asset is delivered by or to the entity (the settlement date) and cash is received or paid.

‘Slotting’ Slotting is a Basel 2 approach that requires a standard set of rules to be used in the calculation of RWAs, based upon an assessment of factors such as the financial strength of the counterparty. The requirements for the application of the Slotting approach are detailed in BIPRU 4.5.

‘South Africa’ In the context of Africa Banking, the operations of Africa Banking based in South Africa.

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Glossary

‘Sovereign exposure(s)’ Exposures to central governments, including holdings in government bonds and local government bonds.

‘Specific market risk’ A risk that is due to the individual nature of an asset and can potentially be diversified or the risk of a price change in an investment due to factors related to the issuer or, in the case of a derivative, the issuer of the underlying investment.

‘Spread risk’ Measures the impact of changes to the swap spread, i.e. the difference between swap rates and government bond yields.

‘Standard & Poor’s’ A credit rating agency.

‘Standby facilities, credit lines and other commitments’ Agreements to lend to a customer in the future, subject to certain conditions. Such commitments are either made for a fixed period, or have no specific maturity but are cancellable by the lender subject to notice requirements.

‘Statutory’ Line items of income, expense, profit or loss, assets, liabilities or equity stated in accordance with the requirements of the UK Companies Act 2006 and the requirements of International Financial Reporting Standards (IFRS).

‘Statutory return on average shareholders’ equity’ Statutory profit after tax attributable to ordinary shareholders as a proportion of average shareholders’ equity.

‘STD’ / ‘Standardised Approach’ A method of calculating Risk Weighted Assets that relies on a mandatory framework set by the regulator to derive risk weights based on counterparty type and a credit rating provided by an External Credit Assessment Institute.

‘Stress Testing’ A process which involves identifying possible future adverse events or changes in economic conditions that could have unfavourable effects on the Group (either financial or non-financial), assessing the Group’s ability to withstand such changes, and identifying management actions to mitigate the impact.

‘Stressed Value at Risk (SVaR)’ An estimate of the potential loss arising from a 12 month period of significant financial stress over a one day horizon.

‘Structured entity’ An entity in which voting or similar rights are not the dominant factor in deciding control. Structured entities are generally created to achieve a narrow and well defined objective with restrictions around their ongoing activities.

‘Structural hedge’ / ‘hedging’ An interest rate hedge which functions to reduce the impact of the volatility of short-term interest rate movements on positions that exist within the balance sheet that carry interest rates that do not re-price with market rates. See also ‘Equity structural hedge’ and ‘Product structural hedge’.

‘Structural model of default’ A model based on the assumption that an obligor will default when its assets are insufficient to cover its liabilities.

‘Structured credit’ Includes legacy structured credit portfolio primarily comprising derivative exposure and financing exposure to structured credit vehicles.

‘Subordinated liabilities’ Liabilities which, in the event of insolvency or liquidation of the issuer, are subordinated to the claims of depositors and other creditors of the issuer.

‘Supranational bonds’ Bonds issued by an international organisation, where membership transcends national boundaries (e.g. the European Union or World Trade Organisation).

‘Synthetic Securitisation Transactions’ Securitisation transactions effected through the use of derivatives.

‘Tangible equity’ Shareholders’ equity excluding non-controlling interests adjusted for the deduction of intangible assets and goodwill.

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Glossary

‘Term premium’ Additional interest required by investors to hold assets with a longer period to maturity.

‘The three lines of defence’ The three lines of defence operating model enables Barclays to separate risk management activities between those parties that: own and take risk, and implement controls (first line); oversee and challenge the first line, provide second line risk management activity and support controls (second line); and, provide assurance that the Evaluate, Respond and Monitor (‘E-R-M’) process is fit-for-purpose, and that it is being carried out as intended (third line).

‘Tier 1 capital’ The sum of the Common Equity Tier 1 capital and Additional Tier 1 capital.

‘Tier 1 capital ratio’ The ratio which expresses Tier 1 capital as a percentage of Risk Weighted Assets under CRD IV.

‘Tier 2 (T2) capital’ In the context of CRD IV, a type of capital as defined in the Capital Requirements Regulation.

‘Tier 2 (T2) securities’ Securities that are treated as Tier 2 (T2) capital in the context of CRD IV.

‘Total capital ratio’ Total Regulatory capital as a percentage of Risk Weighted Assets.

‘Total outstanding balance’ In retail banking, total outstanding balance is defined as the gross month-end customer balances on all accounts including accounts charged off to recoveries.

‘Total return swap’ An instrument whereby the seller of protection receives the full return of the asset, including both the income and change in the capital value of the asset. The buyer of the protection in return receives a predetermined amount.

‘Traded Market Risk’ The risk of a reduction to earnings or capital due to volatility of trading book positions.

‘Trading book’ All positions in financial instruments and commodities held by an institution either with trading intent, or in order to hedge positions held with trading intent.

‘Traditional Securitisation Transactions’ Securitisation transactions in which an underlying pool of assets generates cash flows to service payments to investors.

‘Transitional’ In the context of CRD IV a measure is described as transitional when the transitional provisions set out in Part Ten of the CRD IV Regulation are applied in its calculation.

‘United Kingdom (UK)’ Geographic segment where Barclays operates comprising the UK. Also see ‘Europe’.

‘UK Bank levy’ A levy that applies to UK banks, building societies and the UK operations of foreign banks. The levy is payable based on a percentage of the chargeable equity and liabilities of the bank on its balance sheet date.

‘US Partner Portfolio’ Co-branded credit card programs with companies across various sectors including travel, entertainment, retail and financial sectors.

‘US Residential Mortgages’ Securities that represent interests in a group of US residential mortgages.

‘Unencumbered’ Assets not used to secure liabilities or otherwise pledged.

‘Valuation weighted Loan to Value (LTV) Ratio’ In the context of credit risk disclosures on secured home loans, a means of calculating marked to market LTVs derived by comparing total outstanding balance and the value of total collateral we hold against these balances. Valuation weighted loan to value is calculated using the following formula: LTV = total outstandings in portfolio /total property values of total outstandings in portfolio.

‘Value at Risk (VaR)’ See ‘DVaR’.

‘Weighted off balance sheet commitments’ Regulatory add-ons to the leverage exposure measure based on credit conversion factors used in the Standardised Approach to credit risk.

   Barclays PLC – 2016 Interim Results     

Glossary

‘Wholesale loans’ / ‘lending’ Lending to larger businesses, financial institutions and sovereign entities.

‘Write-off’ Refers to the point where it is determined that an asset is irrecoverable, or it is no longer considered economically viable to try to recover the asset or it is deemed immaterial or full and final settlement is reached and the shortfall written off. In the event of write-off, the customer balance is removed from the balance sheet and the impairment reserve held against the asset is released.

‘Wrong-way risk’ Arises, in a trading exposure, when there is significant correlation between the underlying asset and the counterparty, which in the event of default would lead to a significant mark to market loss. When assessing the credit exposure of a wrong-way trade, analysts take into account the correlation between the counterparty and the underlying asset as part of the sanctioning process.

   Barclays PLC – 2016 Interim Results