Exhibit 99.1

BARCLAYS PLC AND BACLAYS BANK PLC

This document includes portions from the previously published results announcement of Barclays PLC and Barclays Bank PLC as of, and for the year ended 31 December, 2011, as amended to comply with the requirements of Regulation G and Item 10(e) of Regulation S-K promulgated by the U.S. Securities and Exchange Commission (the “SEC”). 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 figures prepared in accordance with International Financial Reporting Standards (“IFRS”), as of, and for the year ended 31 December, 2011. This document does not update or otherwise supplement the information contained in the previously published results announcement.

Barclays management believes that the 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 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.

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

Table of Contents

Preliminary Results Announcement	Page
Financials – Performance Highlights		1
Condensed Consolidated Financial Statements		6
Results by Business
—    Retail and Business Banking
—    UK		10
—    Europe		12
—    Africa		14
—    Barclaycard		16
—    Corporate and Investment Banking
—    Barclays Capital		18
—    Barclays Corporate		20
—    Wealth and Investment Management
—    Barclays Wealth		22
—    Investment Management		24
—    Head Office Functions and Other Operations		25
Results by Quarter		26
Performance Management
—    Remuneration		30
—    Margins and Balances		33
Risk Management		35
—    Funding Risk - Capital		36
—    Funding Risk - Liquidity		39
—    Credit Risk		44
—    Market Risk		64
Financial Statement Notes		65
Shareholder Information		79
Glossary		80
Index		88

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

Barclays PLC – 2011 Results

The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analyses compare the 12 months to 31 December 2011 to the corresponding 12 months of 2010 and balance sheet comparatives relate to 31 December 2010. 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.

Adjusted profit before tax and adjusted performance measures have been presented to provide a more consistent basis for comparing business performance between periods. These measures exclude: the impact of own credit; gains on debt buy-backs; loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc.; the impairment of the investment in BlackRock, Inc.; the provision for Payment Protection Insurance (PPI) redress; goodwill impairments; and gains and losses on acquisitions and disposals of subsidiaries, associates and joint ventures.

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the Results glossary that can be accessed at www.barclays.com/investorrelations.

In accordance with Barclays policy to provide meaningful disclosures that help investors and other stakeholders understand the financial position, performance and changes in the financial position of the Group, and having regard to the BBA Disclosure Code, the information provided in this report goes beyond minimum requirements. Barclays continues to develop its financial reporting considering best practice and welcomes feedback from investors, regulators and other stakeholders on the disclosures that they would find most useful.

The information in this document, which was approved by the Board of Directors on 9 February 2012, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2010, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 and 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. The 2011 Annual Review and Summary Financial Statements will be posted or made available to shareholders together with the Group’s full Annual Report and Accounts for 2011 for those shareholders who request it.

Statutory accounts for the year ended 31 December 2011, which also include certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the SEC, can be obtained from Corporate Communications, Barclays Bank PLC, 745 Seventh Avenue, New York, NY 10019, United States of America or from the Director, Investor Relations at Barclays registered office address shown on the previous page, once they have been published in March. Once filed with the SEC, copies of the Form 20-F will also be available from the Barclays Investor Relations website www.barclays.com/investorrelations and from the SEC’s website (www.sec.gov).

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as “may”, “will”, “seek”, “continue”, “aim”, “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe” or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group’s future financial position, income growth, assets, impairment charges, business strategy, capital ratios, leverage, payment of dividends, projected levels of growth in the banking and financial markets, projected costs, estimates of capital expenditures and plans and objectives for future operations 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, including, but not limited to, UK domestic, Eurozone and global economic and business conditions, the effects of continued volatility in credit markets, market related risks such as changes in interest rates and exchange rates, effects of changes in valuation of credit market exposures, changes in valuation of issued notes, the policies and actions of governmental and regulatory authorities (including requirements regarding capital and Group structures and the potential for one or more countries exiting the Euro), changes in legislation, the further development of standards and interpretations under IFRS applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of current and future litigation, the success of future acquisitions and other strategic transactions and the impact of competition – a number of such factors being beyond the Group’s control. As a result, the Group’s actual future results may differ materially from the plans, goals, and expectations set forth in the Group’s forward-looking statements.

Any forward-looking statements made herein are as at the date they are made. Except as required by the UK Financial Services Authority (FSA), the London Stock Exchange plc (LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly updates or revisions to forward-looking statements to reflect any change in Barclays expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has filed or may file with the LSE and/or the SEC.

Barclays PLC – 2011 Results

Financials - Performance Highlights

Group Results	31.12.11 £m			31.12.10 £m			% Change
Total income excluding own credit and debt buy-backs 1		28,454			31,049			(8	)
Own credit gain		2,708			391
Gains on debt buy-backs		1,130			-
Total income net of insurance claims		32,292			31,440			3
Credit impairment charges and other provisions		(3,802	)		(5,672	)		(33	)
Impairment of investment in BlackRock, Inc.		(1,800	)		-
Net operating income		26,690			25,768			4
Operating expenses excluding provision for PPI redress, goodwill impairment and UK bank levy 1		(18,855	)		(19,728	)		(4	)
Provision for PPI redress		(1,000	)		-
Goodwill impairment2		(597	)		(243	)
UK bank levy		(325	)		-
Total operating expenses		(20,777	)		(19,971	)		4
Share of post tax results of associates & JVs		60			58
(Losses)/gains on acquisitions and disposals		(94	)		210
Profit before tax		5,879			6,065			(3	)
Adjusted profit before tax3		5,590			5,707			(2	)
Profit after tax		3,951			4,549			(13	)
Basic earnings per share		25.1p			30.4p			(17	)
Dividend per share		6.0p			5.5p			9
Capital and Balance Sheet
Core Tier 1 ratio		11.0%			10.8%
Risk weighted assets		£391bn			£398bn			(2	)
Adjusted gross leverage4		20x			20x			-
Group liquidity pool		£152bn			£154bn			(1	)
Net tangible asset value per share		391p			346p			13
Group loan: deposit ratio		118%			124%
Other Performance Measures
Cost: income ratio		64	%		64	%
Adjusted cost: income ratio		67	%		64	%

1 Total income excluding own credit and debt buy-backs, and operating expenses excluding provision for payment protection insurance (PPI) redress, goodwill impairment and UK bank levy, are non-IFRS measures because they exclude those items from the respective IFRS line items. These non-IFRS measures have been presented as they provide a consistent basis for comparing the business’ performance between financial periods.

2 Goodwill impairment has been excluded from adjusted profit before tax following the impairment of Spain (£550m) and FirstPlus (£47m) goodwill in 2011. 2010 adjusted profit before tax has been revised to exclude Barclays Bank Russia goodwill impairment of £243m.

3 Adjusted performance measures and profit before tax have been presented to provide a more consistent basis for comparing business performance between periods. These measures exclude the impact of £2,708m (2010: £391m) own credit gains, £1,130m (2010: £nil) gains on debt buy-backs (retirement of non-qualifying Tier 1 Capital under Basel 3), £58m (2010: £nil) loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc. recycled through investment income, £1,800m (2010: £nil) impairment of investment in BlackRock, Inc., £1,000m (2010: £nil) provision for PPI redress, £597m (2010: £243m) goodwill impairment and £94m loss (2010: £210m gain) on acquisitions and disposals. The UK bank levy has not been included as an adjusting item.

4 Adjusted gross leverage is a non-IFRS measure representing the multiple of adjusted total tangible assets over total qualifying Tier 1 capital. This measure has been presented as it provides for a metric used by management in assessing balance sheet leverage. Barclays management believes that this measure provides useful information to readers of Barclays financial statements as a key measure of stability, which is consistent with the views of regulators and investors

Barclays PLC – 2011 Results 1

Financials - Performance Highlights

	Adjusted1									Statutory
Profit Before Tax by Business	31.12.11 £m			31.12.10 £m			% Change			31.12.11 £m			31.12.10 £m			% Change
UK		1,420			889			60			1,020			989			3
Europe		(234	)		(168	)		39			(661	)		(139	)
Africa		908			723			26			910			804			13
Barclaycard		1,208			791			53			561			791			(29	)
Retail and Business Banking		3,302			2,235			48			1,830			2,445			(25	)
Barclays Capital2		2,965			4,389			(32	)		2,965			4,389			(32	)
Barclays Corporate3		126			(388	)		nm			(70	)		(631	)		(89	)
Corporate and Investment Banking		3,091			4,001			(23	)		2,895			3,758			(23	)
Barclays Wealth		207			163			27			207			163			27
Investment Management		96			67			43			(1,762	)		67
Head Office Functions and Other Operations		(1,106	)		(759	)		46			2,709			(368	)
Group profit before tax2		5,590			5,707			(2	)		5,879			6,065			(3	)

1 Adjusted profit before tax has been presented to provide a more consistent basis for comparing business performance between periods. These measures exclude: the impact of own credit gains, gains on debt buy-backs (retirement of non-qualifying Tier 1 Capital under Basel III), loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc. recycled through investment income, impairment of investment in BlackRock, Inc., provision for PPI redress, goodwill impairment and loss on acquisitions and disposals. The UK bank levy has not been included as an adjusting item. Adjusted profit before tax is presented excluding: for UK RBB the impact of the provision for PPI redress of £400m (2010: £nil) and gains on acquisitions of £nil (2010: £100m), for Europe RBB goodwill impairment of £427m (2010: £nil) and gains on acquisition of £nil (2010: £29m), for Africa RBB the impact of gains on acquisitions and disposals of £2m (2010: £81m), for Barclaycard the impact of the provision for PPI redress of £600m (2010: £nil) and £47m goodwill impairment in FirstPlus secured lending portfolio (2010: £nil), for Barclays Corporate the impact of loss on disposal of Barclays Bank Russia of £73m (2010: £nil) and £123m of Spain goodwill impairment (2010: £243m), for Investment Management £1,800m impairment of investment in BlackRock, Inc. (2010: £nil) and £58m loss (2010: £nil) on disposal of a portion of the Group’s strategic investment in BlackRock, Inc. recycled through investment income, and for Head Office Functions and Other Operations the impact of own credit gains of £2,708m (2010: £391m), gains on debt buybacks of £1,130m (2010: nil) and £23m (2010: nil) loss on disposal of subsidiaries associates and joint ventures.

2 Statutory profit before tax has been revised to reflect own credit gain of £2,708m (2010: £391m) within Head Office Functions and Other Operations, previously reported under Barclays Capital. Refer to page 18 for further information.

3 2010 adjusted profit before tax has been revised to exclude Russian goodwill impairment of £243m in Barclays Corporate.

Barclays PLC – 2011 Results 2

Financials - Performance Highlights

For 2011 we reported a slight decrease in profits, as reduction in income at Corporate and Investment Banking was partly offset by income improvements in all other businesses, a significant improvement in credit impairment and cost reductions. Prudent capital management led to a further increase in our Core Tier 1 ratio. Our funding and liquidity remained strong.

Income Statement

— Profit before tax of £5,879m decreased 3% on 2010. Group adjusted profit before tax¹ of £5,590m decreased 2% on 2010. Adjusted results provide a more consistent basis for comparing business performance between periods

— Adjusted income² declined 8% to £28,512m, principally reflecting a decrease in income at Barclays Capital. Income increased in most other businesses despite continued low interest rates and difficult macroeconomic conditions

— The RBB, Corporate and Wealth net interest margin remained stable at 204bps (2010: 203bps). Net interest income from RBB, Corporate, Wealth and Barclays Capital increased 5% to £13.2bn, of which the contribution from hedging (including £463m of increased gains from the disposal of hedging instruments) increased by 3%

— Credit impairment charges decreased 33% to £3,802m, reflecting significant improvements across all businesses. Impairment charges as a proportion of Group loans and advances as at 31 December 2011 improved to 77bps, compared to 118bps for 2010. In addition, impairment of £1,800m was taken against our investment in BlackRock, Inc.

— Adjusted operating expenses, which exclude the £1bn provision for PPI redress and £597m (2010: £243m) goodwill impairment, were down £548m to £19,180m. Excluding the UK bank levy of £325m introduced in 2011, adjusted operating expenses were down 4% to £18,855m, which included £408m (2010: £330m) of restructuring charges. Statutory operating expenses increased 4% to £20,777m (£19,971m)

— Despite cost savings, the adjusted cost: income ratio1 increased to 67% (2010: 64%), reflecting lower income, increased restructuring charges and the UK bank levy. The cost: income ratio for the Group remained stable at 64% (2010: 64%). At Barclays Capital the cost: net operating income ratio was 71% (2010: 65%) and the compensation: income ratio was 47% (2010: 43%), reflecting lower income in difficult conditions

— The effective tax rate increased to 32.8% (2010: 25.0%), principally due to non-deductible charges arising on the impairment of BlackRock, Inc. and goodwill and the UK bank levy

— Adjusted income² in the fourth quarter was 13% below the run rate for the full year, principally reflecting the difficult market conditions affecting Barclays Capital and gains on the disposal of hedging instruments mainly taken in the third quarter. Credit impairment charges for the quarter were in line with the full year run rate and adjusted operating costs continued to reduce below the 2011 run rate, even allowing for the full year charge for the UK bank levy taken in Q4. Statutory income in the fourth quarter was 12% below the run rate for the year. Statutory operating costs were 2% higher than the 2011 run rate reflecting goodwill impairment and the UK bank levy charge taken in Q4

1 Adjusted performance metrics and profit before tax are non-IFRS measures as they exclude the impact of £2,708m (2010: £391m) own credit gains, £1,130m (2010: £nil) gains on debt buy-backs (retirement of non-qualifying Tier 1 Capital under Basel III), £58m (2010: £nil) loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc. recycled through investment income, £1,800m (2010: £nil) impairment of investment in BlackRock, Inc., £1,000m (2010: £nil) provision for PPI redress, £597m (2010: £243m) goodwill impairment and £94m loss (2010: £210m gain) on acquisitions and disposals. The UK bank levy has not been included as an adjusting item.

2 Adjusted income is a non-IFRS measure as it excludes the impact of £2,708m (2010: £391m) own credit gains, £1,130m (2010: £nil) gains on debt buy-backs (retirement of non-qualifying Tier 1 Capital under Basel III).

Barclays PLC – 2011 Results 3

Financials - Performance Highlights

Balance Sheet

— Net asset value per share increased 9% to 456p. Net tangible asset value per share increased 13% to 391p

— Total shareholders’ equity (including non-controlling interests) at 31 December 2011 was £65.2bn (2010: £62.3bn). Excluding non-controlling interests, shareholders’ equity increased £4.7bn to £55.6bn, driven by profit after tax of £3.0bn and positive available for sale and cash flow hedge reserve movements offset by negative currency translation and dividends paid

— Total assets increased to £1,564bn (2010: £1,490bn), principally due to an increase in the fair value of gross interest rate derivative assets as major forward curves decreased, partially offset by a decrease in reverse repurchase agreements

— The Group’s loan to deposit ratio continued to improve to 118% (2010: 124%)

— Adjusted gross leverage¹ remained stable at 20x and moved within a month end range of 20x to 23x. Excluding the liquidity pool, adjusted gross leverage remained flat at 17x

Capital Management

— At 31 December 2011, the Group’s Core Tier 1 ratio was 11.0% (2010: 10.8%) reflecting the contribution from retained earnings and reductions in risk weighted assets, which more than offset the impact of CRD3

— The Group continued to generate Core Tier 1 Capital from retained profits (excluding own credit, impairment of investment in BlackRock, Inc. and goodwill impairment, which are added back for regulatory capital purposes). This contribution of £2.6bn was largely offset by other movements in Core Tier 1 Capital, notably pension contributions and foreign currency movements, resulting in an increase in Core Tier 1 Capital of £0.2bn to £43.1bn

— Risk weighted assets decreased slightly to £391bn (2010: £398bn) largely reflecting foreign exchange movements and decreases in Barclays Capital from lower levels of activity, risk reduction and sales of credit market exposures, which more than outweighed the £30bn increase resulting from the implementation of CRD3 in December

Funding and Liquidity

The Group’s overall funding strategy is to develop a diversified funding base and maintain access to a variety of alternate funding sources, so minimising the cost of funding and providing protection against unexpected fluctuations. Within this, the Group aims to align the sources and uses of funding.

— Customer loans and advances are largely funded by customer deposits, with any excess being funded by long-term wholesale secured debt and equity. The total loan to deposit ratio as at 31 December 2011 was 118% (2010: 124%) and the loan to deposit and long-term funding ratio was 75% (2010: 77%)

— Wholesale funding is well managed:

– Trading portfolio assets are largely funded by repurchase agreements. The majority of reverse repurchase agreements are matched by repurchase financing, with the remainder used to settle trading portfolio liabilities

– Derivative assets and liabilities are largely matched

– The liquidity pool is largely funded by wholesale debt maturing in less than one year, with a substantial portion maturing in more than one year

— As at 31 December 2011, the Group had £265bn of wholesale debt diversified across currencies, of which just £39bn was secured:

– Term funding maturing in 2012 totals £27bn. Term funding raised in 2011 amounted to £30bn (2010: £35bn) compared to term funding maturities of £25bn. During January 2012, £5bn of term funding was raised

– Approximately 10% of customer loans and advances at 31 December 2011 were secured against external funding, leaving significant headroom for further secured issuance

1 Adjusted gross leverage is a non-IFRS measure representing the multiple of adjusted total tangible assets over total qualifying Tier 1 capital. This measure has been presented as it provides for a metric used by management in assessing balance sheet leverage. Barclays management believes that this measure provides useful information to readers of Barclays financial statements as a key measure of stability, which is consistent with the views of regulators and investors.

Barclays PLC – 2011 Results 4

Financials - Performance Highlights

— At 31 December 2011 the liquidity pool was £152bn (2010: £154bn) and moved within a month-end range of £140bn to £167bn, with short-term funding being rolled over despite the stress in the wholesale funding markets. The liquidity pool comprises high quality, liquid unencumbered assets, diversified across currencies, broadly in line with wholesale debt requirements, with 93% (2010: 88%) of the pool comprising cash and deposits with central banks and government bonds

— The Group monitors compliance against anticipated Basel 3 metrics, including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR)

Dividends

— We will pay a final dividend for 2011 of 3p per share on 16 March 2012 giving a total declared dividend for 2011 of 6p per share

Barclays PLC – 2011 Results 5

Condensed Consolidated Financial Statements

Condensed Consolidated Income Statement

Continuing Operations	Notes1	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Net interest income	1		12,201			12,523
Net fee and commission income			8,622			8,871
Net trading income			7,660			8,078
Net investment income			2,305			1,477
Net premiums from insurance contracts			1,076			1,137
Other income			1,169			118
Total income			33,033			32,204
Net claims and benefits incurred on insurance contracts			(741	)		(764	)
Total income net of insurance claims	2		32,292			31,440
Credit impairment charges and other provisions			(3,802	)		(5,672	)
Impairment of investment in BlackRock, Inc.			(1,800	)		-
Net operating income			26,690			25,768
Staff costs			(11,407	)		(11,916	)
Administration and general expenses	3		(6,356	)		(6,585	)
Depreciation of property, plant and equipment			(673	)		(790	)
Amortisation of intangible assets			(419	)		(437	)
Operating expenses excluding provision for PPI redress, goodwill impairment and UK bank levy			(18,855	)		(19,728	)
Provision for PPI redress2	14		(1,000	)		-
Goodwill impairment			(597	)		(243	)
UK bank levy	4		(325	)		-
Operating expenses			(20,777	)		(19,971	)
Share of post-tax results of associates and joint ventures			60			58
(Loss)/profit on disposal of subsidiaries, associates and joint ventures	5		(94	)		81
Gain on acquisitions	6		-			129
Profit before tax			5,879			6,065
Tax	7		(1,928	)		(1,516	)
Profit after tax			3,951			4,549
Attributable to:
Equity holders of the parent			3,007			3,564
Non-controlling interests	8		944			985
Profit after tax			3,951			4,549

1 For notes to the Financial Statements see pages 65 to78 .

2 Provision for the settlement of PPI claims following the conclusion of the Judicial Review proceedings. In addition the Group has recognised costs of £13m (2010: £162m) for the settlement of PPI claims unrelated to the Judicial Review.

Barclays PLC – 2011 Results 6

Condensed Consolidated Financial Statements

Condensed Consolidated Statement of Comprehensive Income

Continuing Operations	Notes1		Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Profit after tax				3,951			4,549
Other Comprehensive Income
Currency translation differences		17		(1,607	)		1,184
Available for sale financial assets		17		1,374			(1,236	)
Cash flow hedges		17		1,263			(44	)
Other				(74	)		59
Other comprehensive income for the year				956			(37	)
Total comprehensive income for the year				4,907			4,512
Attributable to:
Equity holders of the parent				4,576			2,975
Non-controlling interests				331			1,537
Total comprehensive income for the year				4,907			4,512

1 For notes, see pages 65 to 78.

Barclays PLC – 2011 Results 7

Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheet

Assets	Notes1		As at 31.12.11 £m		As at 31.12.10 £m
Cash and balances at central banks				106,894		97,630
Items in the course of collection from other banks				1,812		1,384
Trading portfolio assets				152,183		168,867
Financial assets designated at fair value				36,949		41,485
Derivative financial instruments		11		538,964		420,319
Loans and advances to banks				47,446		37,799
Loans and advances to customers				431,934		427,942
Reverse repurchase agreements and other similar secured lending				153,665		205,772
Available for sale financial investments				68,491		65,110
Current and deferred tax assets		7		3,384		2,713
Prepayments, accrued income and other assets				4,563		5,143
Investments in associates and joint ventures				427		518
Goodwill and intangible assets		13		7,846		8,697
Property, plant and equipment				7,166		6,140
Retirement benefit assets		15		1,803		126
Total assets				1,563,527		1,489,645
Liabilities
Deposits from banks				91,116		77,975
Items in the course of collection due to other banks				969		1,321
Customer accounts				366,032		345,788
Repurchase agreements and other similar secured borrowing				207,292		225,534
Trading portfolio liabilities				45,887		72,693
Financial liabilities designated at fair value				87,997		97,729
Derivative financial instruments		11		527,910		405,516
Debt securities in issue				129,736		156,623
Accruals, deferred income and other liabilities				12,580		13,233
Current and deferred tax liabilities		7		2,092		1,160
Subordinated liabilities				24,870		28,499
Provisions		14		1,529		947
Retirement benefit liabilities		15		321		365
Total liabilities				1,498,331		1,427,383
Shareholders’ Equity
Shareholders’ equity excluding non-controlling interests				55,589		50,858
Non-controlling interests		8		9,607		11,404
Total shareholders’ equity				65,196		62,262
Total liabilities and shareholders’ equity				1,563,527		1,489,645

1 For notes, see pages 65 to 78.

Barclays PLC – 2011 Results 8

Condensed Consolidated Financial Statements

Condensed Consolidated Statement of Changes in Equity

Year Ended 31.12.11	Called up Share Capital and Share Premium1 £m		Other Reserves1 £m			Retained Earnings £m			Total £m			Non- controlling Interests2 £m			Total Equity £m
Balance at 1 January 2011		12,339		1,754			36,765			50,858			11,404			62,262
Profit after tax		-		-			3,007			3,007			944			3,951
Currency translation movements		-		(1,009	)		-			(1,009	)		(598	)		(1,607	)
Available for sale investments		-		1,380			-			1,380			(6	)		1,374
Cash flow hedges		-		1,290			-			1,290			(27	)		1,263
Other		-		-			(92	)		(92	)		18			(74	)
Total comprehensive income for the year		-		1,661			2,915			4,576			331			4,907
Issue of shares under employee share schemes		41		-			838			879			-			879
Increase in treasury shares		-		(165	)		-			(165	)		-			(165	)
Vesting of treasury shares		-		499			(499	)		-			-			-
Dividends paid		-		-			(660	)		(660	)		(727	)		(1,387	)
Redemption of Reserve Capital Instruments		-		-			-			-			(1,415	)		(1,415	)
Other reserve movements		-		88			13			101			14			115
Balance at 31 December 2011		12,380		3,837			39,372			55,589			9,607			65,196
Year Ended 31.12.10
Balance at 1 January 2010		10,804		2,628			33,845			47,277			11,201			58,478
Profit after tax		-		-			3,564			3,564			985			4,549
Currency translation movements		-		742			-			742			442			1,184
Available for sale investments		-		(1,245	)		-			(1,245	)		9			(1,236	)
Cash flow hedges		-		(100	)		-			(100	)		56			(44	)
Other		-		-			14			14			45			59
Total comprehensive income for the year		-		(603	)		3,578			2,975			1,537			4,512
Issue of new ordinary shares		1,500		-			-			1,500			-			1,500
Issue of shares under employee share schemes		35		-			830			865			-			865
Increase in treasury shares		-		(989	)		-			(989	)		-			(989	)
Vesting of treasury shares		-		718			(718	)		-			-			-
Dividends paid		-		-			(531	)		(531	)		(803	)		(1,334	)
Redemption of Reserve Capital Instruments		-		-			-			-			(487	)		(487	)
Other reserve movements		-		-			(239	)		(239	)		(44	)		(283	)
Balance at 31 December 2010		12,339		1,754			36,765			50,858			11,404			62,262

Condensed Consolidated Cash Flow Statement

Continuing Operations	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Profit before tax		5,879			6,065
Adjustment for non-cash items		8,193			971
Changes in operating assets and liabilities		16,693			13,108
Corporate income tax paid		(1,686	)		(1,458	)
Net cash from operating activities		29,079			18,686
Net cash from investing activities		(1,912	)		(5,627	)
Net cash from financing activities		(5,961	)		159
Effect of exchange rates on cash and cash equivalents		(2,933	)		3,842
Net increase in cash and cash equivalents		18,273			17,060
Cash and cash equivalents at beginning of the period		131,400			114,340
Cash and cash equivalents at end of the period		149,673			131,400

1 Details of Share Capital, and Other Reserves are shown on page 74.

2 Details on Non-controlling Interests are shown on page 68.

Barclays PLC – 2011 Results 9

Results by Business

UK Retail and Business Banking

Income Statement Information			Year Ended 31.12.11 £m			Year Ended 31.12.10 £m			% Change
Net interest income				3,413			3,165			8
Net fee and commission income				1,157			1,255			(8	)
Net trading loss				-			(2	)		nm
Net investment income				17			-			nm
Net premiums from insurance contracts				92			130			(29	)
Other (expense)/income				(1	)		1			nm
Total income				4,678			4,549			3
Net claims and benefits incurred under insurance contracts				(22	)		(31	)		(29	)
Total income net of insurance claims				4,656			4,518			3
Credit impairment charges and other provisions				(536	)		(819	)		(35	)
Net operating income				4,120			3,699			11
Operating expenses (excluding provision for PPI redress)				(2,702	)		(2,809	)		(4	)
Provision for PPI redress				(400	)		-			nm
Operating expenses				(3,102	)		(2,809	)		10
Share of post - tax results of associates and joint ventures				2			(1	)		nm
Gains on acquisition				-			100			nm
Profit before tax				1,020			989			3
Adjusted profit before tax1				1,420			889			60
Balance Sheet Information
Loans and advances to customers at amortised cost				£121.2bn			£115.6bn			5
Customer deposits				£111.8bn			£108.4bn			3
Total assets				£127.8bn			£121.6bn			5
Risk weighted assets				£34.0bn			£35.3bn			(4	)
	Adjusted1					Statutory
Other Performance Measures	31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		44		70			44			70
Cost: income ratio		58%		62%			67%			62%
Key Facts				31.12.11			31.12.10
90 day arrears rates - UK loans				1.7%			2.6%
Number of UK current accounts				11.9m			11.6m
Number of UK savings accounts				15.1m			14.4m
Number of UK mortgage accounts				930,000			916,000
Number of Barclays Business customers				785,000			760,000
LTV of mortgage portfolio				44%			43%
LTV of new mortgage lending				54%			52%
Number of branches				1,625			1,658
Number of ATMs				3,629			3,345
Number of employees (full time equivalents)				34,100			34,700

1 Adjusted profit before tax and adjusted performance measures are non - IFRS measures as they exclude the impact of the provision for PPI redress of £400m (2010: £nil) and gains on acquisitions of £nil (2010: £100m).

Barclays PLC – 2011 Results 10

Results by Business

UK Retail and Business Banking

— Adjusted profit before tax¹ improved 60% to £1,420m. Profit before tax improved 3% to £1,020m after £400m provision for PPI redress and £100m gain on acquisition of Standard Life Bank in 2010

— Income improved 3% to £4,656m

— Net interest income improved 8% to £3,413m with net interest margin up to 151bps (2010: 145bps) and risk adjusted net interest margin up to 127bps (2010: 108bps)

— Customer asset margin declined to 122bps (2010: 126bps) with average customer assets increasing 4% to £118.5bn

— Customer liability margin improved to 87bps (2010: 68bps) reflecting the increase in the cost of funds and therefore the value generated from customer liabilities. Average customer liabilities increased 3% to £107.8bn

— Net fee and commission income down 8% to £1,157m following closure of the branch-based element of the financial planning business

— Credit impairment charges decreased 35% to £536m with annualised loan loss rate of 44bps (2010: 70bps)

— Personal unsecured lending impairment improved 44% to £311m with 90 day arrears rates on UK personal loans improving to 1.7% (2010: 2.6%)

— Operating expenses decreased 8% to £2,702m, excluding £400m provision for PPI redress in 2011 and £123m one-off pension credit in 2010. Including these items, operating expenses increased 10% to £3,102m

— Total loans and advances to customers increased 5% to £121.2bn driven by growth in mortgage balances

— Average mortgage balances increased 6%, with strong positive net lending. Mortgage balances of £107.8bn at 31 December 2011 (2010: £101.2bn) with share by value of 9% (2010: 8%). Gross new mortgage lending of £17.2bn (2010: £16.9bn), with share by value of 12% (2010: 13%). Mortgage redemptions down to £10.7bn (2010: £11.0bn), with net new mortgage lending of £6.5bn (2010: £5.9bn)

— Average Loan to Value (LTV) ratio on the mortgage portfolio (including buy to let) on a current valuation basis was 44% (2010: 43%). Average LTV of new mortgage lending was 54% (2010: 52%)

— Total customer deposits increased 3% to £111.8bn

— Risk weighted assets decreased 4% to £34.0bn reflecting a decrease in unsecured lending balances partially offset by the growth in mortgage balances

1 Adjusted profit before tax is a non-IFRS measure as it excludes the impact of the provision for PPI redress of £400m (2010: £nil) and gains on acquisitions of £nil (2010: £100m).

Barclays PLC – 2011 Results 11

Results by Business

Europe Retail and Business Banking

Income Statement Information			Year Ended 31.12.11 £m			Year Ended 31.12.10 £m			% Change
Net interest income				786			679			16
Net fee and commission income				429			421			2
Net trading income				9			20			(55	)
Net investment income				91			67			36
Net premiums from insurance contracts				463			479			(3	)
Other (expense)/income				(49	)		9			nm
Total income				1,729			1,675			3
Net claims and benefits incurred under insurance contracts				(503	)		(511	)		(2	)
Total income net of insurance claims				1,226			1,164			5
Credit impairment charges and other provisions				(261	)		(314	)		(17	)
Net operating income				965			850			14
Operating expenses (excluding goodwill impairment)				(1,211	)		(1,033	)		17
Goodwill impairment				(427	)		-			nm
Operating expenses				(1,638	)		(1,033	)		59
Share of post-tax results of associates and joint ventures				12			15			(20	)
Gains on acquisition				-			29			nm
Loss before tax				(661	)		(139	)		nm
Adjusted loss before tax1				(234	)		(168	)		39
Balance Sheet Information
Loans and advances to customers at amortised cost				£43.6bn			£43.4bn			-
Customer deposits				£16.4bn			£18.9bn			(13	)
Total assets				£51.3bn			£53.6bn			(4	)
Risk weighted assets				£17.4bn			£17.3bn			1
	Adjusted1					Statutory
Other Performance Measures		31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		54		71			54			71
Cost: income ratio		99%		89%			134%			89%
Key Facts				31.12.11			31.12.10
30 day arrears rates - cards				5.9%			6.8%
Number of customers				2.7m			2.7m
Number of branches				978			1,120
Number of sales centres				250			243
Number of distribution points				1,228			1,363
Number of employees (full time equivalents)				8,500			9,400

1 Adjusted loss before tax and adjusted performance measures are non-IFRS measures as they exclude goodwill impairment of £427m (2010: £nil) and gains on acquisition of £nil (2010: £29m).

Barclays PLC – 2011 Results 12

Results by Business

Europe Retail and Business Banking

— Adjusted loss before tax¹ of £234m (2010: £168m) reflecting repositioning of the business due to the deteriorating economic environment and restructuring charges of £189m (2010: £22m)

— Loss before tax of £661m (2010: £139m) reflecting £427m of Spanish goodwill impairment and restructuring charges of £189m

— Spanish goodwill fully impaired due to the deteriorating economic environment in Spain in the fourth quarter of 2011 and ongoing economic uncertainty

— Income improved 5% to £1,226m reflecting higher average asset and liability volumes, improved margins and the appreciation of the average value of the Euro against Sterling

— Net interest income improved 16% to £786m with the net interest margin up to 128bps (2010: 116bps)

— Average customer assets increased 5% to £43.7bn despite customer asset margin reduction to 87bps (2010: 102bps) due to increased funding costs

— Average customer liabilities increased 3% to £17.7bn with customer liability margin up to 65bps (2010: 11bps) mainly due to re-pricing

— Net fee and commission income improved by 2% to £429m

— Net premiums from insurance contracts declined 3% to £463m, with a corresponding decline in net claims and benefits of £503m (2010: £511m)

— Credit impairment charges and other provisions decreased 17% to £261m principally due to lower charges in the cards portfolios reflecting lower 30 and 90 day arrears rates and lower recovery balances

— The lower impairment was the main driver for the loan loss rate decreasing to 54bps (2010: 71bps)

— Operating expenses increased 17% to £1,211m excluding the £427m Spanish goodwill impairment, primarily due to restructuring charges of £189m. Including Spanish goodwill impairment, operating expenses increased 59% to £1,638m (2010: 1,033m)

— 142 branches, largely in Spain, have been closed and the number of employees reduced by 900 during 2011

— Loans and advances to customers remained stable

— Customer deposits decreased 13% to £16.4bn, reflecting the competitive environment

1 Adjusted loss before tax is a non-IFRS measure as it excludes goodwill impairment of £427m (2010: £nil) and gains on acquisition of £nil (2010: £29m).

Barclays PLC – 2011 Results 13

Results by Business

Africa Retail and Business Banking

Income Statement Information			Year Ended 31.12.11 £m			Year Ended 31.12.10 £m			% Change
Net interest income				2,096			2,033			3
Net fee and commission income				1,271			1,318			(4	)
Net trading income				70			53			32
Net investment income				56			58			(3	)
Net premiums from insurance contracts				432			399			8
Other income				57			54			6
Total income				3,982			3,915			2
Net claims and benefits incurred under insurance contracts				(215	)		(215	)		-
Total income net of insurance claims				3,767			3,700			2
Credit impairment charges and other provisions				(464	)		(562	)		(17	)
Net operating income				3,303			3,138			5
Operating expenses				(2,399	)		(2,418	)		(1	)
Share of post-tax results of associates and joint ventures				4			3			33
Profit on disposal of subsidiaries, associates and joint ventures				2			81			nm
Profit before tax				910			804			13
Adjusted profit before tax1				908			723			26
Balance Sheet Information
Loans and advances to customers at amortised cost			£	36.7bn		£	45.4bn			(19	)
Customer deposits			£	30.1bn		£	31.3bn			(4	)
Total assets			£	50.8bn		£	60.3bn			(16	)
Risk weighted assets			£	33.4bn		£	38.4bn			(13	)
	Adjusted1					Statutory
Other Performance Measures	31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		121		119			121			119
Cost: income ratio		64%		65%			64%			65%
Key Facts			31.12.11			31.12.10
Number of customers				14.5m			14.4m
Number of ATMs				10,068			9,530
Number of branches				1,354			1,321
Number of sales centres				139			222
Number of distribution points				1,493			1,543
Number of employees (full time equivalents)2				45,300			47,700

¹  Adjusted profit before tax and adjusted performance measures are non-IFRS measures as they exclude the impact of gains on acquisitions and disposals of £2m (2010: £81m).

²  The number of employees for 2010 has been revised to include 100 employees transferred from Head Office.

Barclays PLC – 2011 Results 14

Results by Business

Africa Retail and Business Banking

— Adjusted profit before tax¹ improved 26% to £908m reflecting business growth in South Africa and a significant improvement in credit impairments across the African continent offset by non-recurrence of a pension credit of £54m in 2010

— Profit before tax improved 13% to £910m, with 2010 including a gain of £77m from the sale of the custody business

— Income improved 2% to £3,767m with good underlying growth offset by currency movements

— Net interest income improved 3% to £2,096m with the net interest margin up to 307bps (2010: 294bps)

— South Africa improved 9% to £1,628m due to strong liability growth and margin improvements, partially offset by the depreciation in the average value of the Rand against Sterling and a reduction in total advances to customers

— The rest of the African businesses declined 12% to £468m due to Sterling appreciation and the impact of margin compression in both retail and corporate portfolios

— Average customer assets decreased 6% to £38.9bn, driven by depreciation of major African currencies against Sterling and lower volumes

— Customer asset margin stable at 311bps (2010: 312bps)

— Improvement in South Africa driven by a continued move towards higher margin business, pricing improvements and a reduction in the cost of funding, offset by margin decline in the rest of the continent

— Average customer liabilities increased 6% to £29.5bn as underlying growth in retail and commercial deposits of 13% in South Africa offset by depreciation of the Rand against Sterling

— Customer liability margin stable at 227bps (2010: 225bps) as growth in high margin products within retail was offset by pressures on commercial margins

— Net fee and commission income declined 4% to £1,271m reflecting the impact of currency partially offset by the impact of volume growth and selected pricing increases

— Credit impairment charges decreased 17% to £464m reflecting improved economic conditions in South Africa and better recoveries across the continent, together with currency movements

— Operating expenses decreased 1% to £2,399m

— Primarily driven by strong cost management, currency movements and restructuring benefits

— Partially offset by a one-off pension credit in 2010 and inflationary pressures

— Total loans and advances to customers decreased 19% to £36.7bn primarily reflecting a 16% impact from currency movements

1 Adjusted profit before tax is a non-IFRS measures as it excludes the impact of gains on acquisitions and disposals of £2m (2010: £81m).

Barclays PLC – 2011 Results 15

Results by Business

Barclaycard

Income Statement Information			Year Ended 31.12.11 £m			Year Ended 31.12.10 £m			% Change
Net interest income				2,860			2,814			2
Net fee and commission income				1,171			1,136			3
Net trading loss				(7	)		(8	)		(13	)
Net investment income				10			39			(74	)
Net premiums from insurance contracts				42			50			(16	)
Other income				20			1			nm
Total income				4,096			4,032			2
Net claims and benefits incurred under insurance contracts				(1	)		(8	)		(88	)
Total income net of insurance claims				4,095			4,024			2
Credit impairment charges and other provisions				(1,259	)		(1,688	)		(25	)
Net operating income				2,836			2,336			21
Operating expenses (excluding provision for PPI redress and goodwill impairment)				(1,659	)		(1,570	)		6
Provision for PPI redress				(600	)		-			nm
Goodwill impairment				(47	)		-			nm
Operating expenses				(2,306	)		(1,570	)		47
Share of post-tax results of associates and joint ventures				31			25			24
Profit before tax				561			791			(29	)
Adjusted profit before tax1				1,208			791			53
Balance Sheet Information
Loans and advances to customers at amortised cost				£30.1bn			£26.6bn			13
Total assets				£33.8bn			£30.3bn			12
Risk weighted assets				£34.2bn			£31.9bn			7
	Adjusted1					Statutory
Other Performance Measures		31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		391		570			391			570
Cost: income ratio		41%		39%			56%			39%
Key Facts				31.12.11			31.12.10
30 day arrears rates - UK cards				2.7%			3.4%
30 day arrears rates - US cards				3.1%			4.6%
30 day arrears rates - South Africa cards2				4.9%			7.2%
Total number of Barclaycard customers				23.5m			21.7m
Total average outstanding balances - Cards				£22.8bn			£20.9bn
Total average extended credit balances - Cards				£19.1bn			£17.0bn
Average outstanding balances - Loans				£5.0bn			£5.5bn
Number of retailer relationships				87,000			87,000
Number of employees (full time equivalent)				10,400			9,900

1 Adjusted profit before tax and adjusted performance measures are non-IFRS measures as they exclude the impact of the provision for PPI redress of £600m (2010: £nil) and £47m goodwill impairment in FirstPlus secured lending portfolio (2010: £nil).

2 South Africa cards 30 day arrears rates revised to include approved debt counselling accounts.

Barclays PLC – 2011 Results 16

Results by Business

Barclaycard

— Adjusted profit before tax¹ improved 53% to £1,208m

– Profit before tax declined 29% to £561m after £600m provision for PPI redress and £47m goodwill impairment in FirstPlus secured lending portfolio

– International profit increased driven by significant improvements in the US and South Africa

– Both the Egg consumer card assets and the MBNA corporate card portfolio acquired during the first half of 2011 delivered profits

— Income improved 2% to £4,095m, with growth in balances driven by UK Cards partially offset by higher customer balance repayments in the US and depreciation of US Dollar against Sterling

– UK income improved 8% to £2,639m including contribution from Egg and MBNA portfolios, partially offset by continued run-off of FirstPlus

– International income declined 7% to £1,456m due to customer balance repayments in the US and depreciation of the US Dollar against Sterling

— Net interest income improved 2% to £2,860m

– Average customer assets increased 5% to £30.3bn

– UK Cards average extended card balances increased 27% to £11.2bn due to acquisitions and balance transfers, partially offset by higher customer balance repayments in the US and continued run-off of FirstPlus

– Customer asset margin up 17bps to 952bps, with net interest margin down 33bps to 944bps due to hedge impact

— Net fee and commission improved 3% to £1,171m

— Credit impairment charges decreased 25% to £1,259m principally driven by lower charges in the cards portfolios, reflecting improved underlying delinquency performance, lower bankruptcies and charge-offs

— Operating expenses increased 47% to £2,306m. Excluding the provision for PPI redress, FirstPlus goodwill impairment and the impact of the Egg and MBNA acquisitions, operating expenses were flat on prior year

— Total assets increased 12% to £33.8bn and risk weighted assets increased 7% to £34.2bn reflecting acquired portfolios and organic growth in the UK. These were partially offset by continued run-off of FirstPlus

1 Adjusted profit before tax is a non-IFRS measures as it excludes the impact of the provision for PPI redress of £600m (2010: £nil) and £47m goodwill impairment in FirstPlus secured lending portfolio (2010: £nil).

Barclays PLC – 2011 Results 17

Results by Business

Barclays Capital

Income Statement Information	Year Ended 31.12.11 £m					Year Ended 31.12.10 £m			% Change
Net interest income				1,177			1,121			5
Net fee and commission income				3,026			3,347			(10	)
Net trading income				5,264			7,986			(34	)
Net investment income				873			752			16
Other (expense)/income				(5	)		3			nm
Total income				10,335			13,209			(22	)
Credit impairment charges and other provisions				(93	)		(543	)		(83	)
Net operating income				10,242			12,666			(19	)
Operating expenses				(7,289	)		(8,295	)		(12	)
Share of post-tax results of associates and joint ventures				12			18			(33	)
Profit before tax1				2,965			4,389			(32	)
Adjusted profit before tax1				2,965			4,389			(32	)
Balance Sheet Information
Loans and advances to banks and customers at amortised cost				£158.6bn			£149.7bn			6
Customer deposits				£83.1bn			£70.3bn			18
Total assets			£	1,158.4bn			£1,094.8bn			6
Assets contributing to adjusted gross leverage				£604.0bn			£668.1bn			(10	)
Risk weighted assets				£186.7bn			£191.3bn			(2	)
Liquidity pool				£152bn			£154bn			(1	)
	Adjusted1					Statutory
Other Performance Measures	31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		8		42			8			42
Cost: income ratio		71%		63%			71%			63%
Cost: net operating income ratio		71%		65%			71%			65%
Compensation: income ratio		47%		43%			47%			43%
Average income per employee (000s)		£424		£529			£424			£529
Key Facts				31.12.11			31.12.10
Average DVaR (95%)				£57m			£53m
Number of employees (full time equivalents)				24,000			24,800

1 The impact of own credit movements in the fair value of structured note issuance of £2,708m (2010: £391m) is now included within the results of Head Office Functions and Other Operations, rather than Barclays Capital. This reflects the fact that these fair value movements relate to the credit worthiness of the issuer as a whole, rather than Barclays Capital in particular, and are not included within any assessment of Barclays Capital's underlying performance. Furthermore, delays to planned changes in accounting standards will mean own credit movements are likely to continue to be reflected in the income statement for the foreseeable future.

2 Return on average equity and return on average tangible equity comparatives have been revised to use 10% of average risk weighted assets (previously 9%) in the calculation of average equity and average tangible equity.

Barclays PLC – 2011 Results 18

Results by Business

Barclays Capital

— Profit before tax of £2,965m (2010: £4,389m), driven by a 22% reduction in income to £10,335m in a challenging market environment, partially offset by reduced credit impairment charges and operating expenses, including compensation costs

Analysis of Total Income	Year Ended 31.12.11 £m		Year Ended 31.12.10 £m		% Change
Fixed Income, Currency and Commodities		6,325		8,687		(27	)
Equities and Prime Services		1,751		2,040		(14	)
Investment Banking		2,027		2,243		(10	)
Principal Investments		232		239		(3	)
Total income		10,335		13,209		(22	)

– Fixed Income, Currency and Commodities (FICC) declined 27% to £6,325m, reflecting lower contributions from Rates, Credit, and Commodities in a challenging trading environment. Currency improved 27% on 2010, benefiting from market volatility and strong client volumes

– Equities and Prime Services declined 14%, with reduced performance in cash equities and equity derivatives offset by improved client flow in equity financing

– Investment Banking reduced 10%. Equity underwriting was in line with the prior year, while financial advisory and debt underwriting were impacted by lower deal activity

— Income in the fourth quarter of 2011 of £1,818m, declined 19% on the third quarter of 2011. Investment Banking income improved 30%, reflecting strong performances in financial advisory and debt and equity underwriting. Equities and Prime Services income declined 10% and FICC income declined 32%

— Credit impairment charge of £93m (2010: £543m) reflecting charges primarily relating to leveraged finance, offset by a release of £223m of the impairment allowance relating to the Protium loan

— Operating expenses reduced 12% to £7,289m, reflecting a decrease in both non-compensation and compensation costs. 2011 bonus pool down 32% to £1.5bn compared to a decrease in headcount of 3%

— Assets contributing to adjusted gross leverage decreased 10% to £604bn primarily due to a reduction in reverse repurchase transactions. Total assets increased 6% to £1,158bn, reflecting increases in the fair value of gross interest rate derivative assets offset by a reduction in reverse repurchase agreements

— Credit market exposures of £15.2bn, reduced by £8.7bn primarily driven by sale of assets formerly held as Protium collateral and commercial real estate loans and properties

— Risk weighted assets down 2% to £187bn, reflecting lower levels of client activity, risk reduction and reduction in credit market exposures, more than offsetting the impact of CRD3

Barclays PLC – 2011 Results 19

Results by Business

Barclays Corporate

Income Statement Information	Year Ended 31.12.11 £m					Year Ended 31.12.10 £m			% Change
Net interest income				2,036			2,004			2
Net fee and commission income				929			910			2
Net trading (expense)/income				(99	)		80			nm
Net investment income/(expense)				29			(32	)		nm
Other income				17			12			42
Total income				2,912			2,974			(2	)
Credit impairment charges and other provisions				(1,149	)		(1,696	)		(32	)
Net operating income				1,763			1,278			38
Operating expenses excluding goodwill impairment				(1,639	)		(1,664	)		(2	)
Goodwill impairment				(123	)		(243	)		(49	)
Operating expenses				(1,762	)		(1,907	)		(8	)
Share of post-tax results of associates and joint ventures				2			(2	)		nm
Loss on disposal of subsidiaries, associates and joint ventures				(73	)		-			nm
Loss before tax				(70	)		(631	)		(89	)
Adjusted profit/(loss) before tax1				126			(388	)		nm
Balance Sheet Information and Key Facts
Loans and advances to customers at amortised cost				£64.6bn			£65.7bn			(2	)
Loans and advances to customers at fair value				£17.2bn			£14.4bn			19
Customer deposits				£77.7bn			£71.0bn			9
Total assets				£88.7bn			£85.7bn			4
Risk weighted assets				£69.7bn			£70.8bn			(2	)
Number of employees (full time equivalents)				9,700			11,900
	Adjusted1					Statutory
Other Performance Measures	31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		162		226			162			226
Cost: income ratio		56%		56%			61%			64%

	31.12.11												31.12.10
Income Statement Information by Geography	UK £m			Europe £m			RoW £m			Total £m			UK £m			Europe £m			RoW £m			Total £m
Income		2,199			440			273			2,912			2,279			428			267			2,974
Credit impairment charges and other provisions		(355	)		(716	)		(78	)		(1,149	)		(459	)		(1,072	)		(165	)		(1,696	)
Operating expenses excluding goodwill impairment		(1,099	)		(248	)		(292	)		(1,639	)		(984	)		(209	)		(471	)		(1,664	)
Goodwill impairment		-			(123	)		-			(123	)		-			-			(243	)		(243	)
Share of post-tax results of associates and joint ventures		2			-			-			2			(2	)		-			-			(2	)
Loss on disposal of subsidiaries, associates and joint ventures		-			-			(73	)		(73	)		-			-			-			-
Profit/(loss) before tax		747			(647	)		(170	)		(70	)		834			(853	)		(612	)		(631	)
Adjusted profit/(loss) before tax1		747			(524	)		(97	)		126			834			(853	)		(369	)		(388	)

1 Adjusted profit before tax and adjusted performance measures are non-IFRS measures as they exclude the impact of loss on disposal of Barclays Bank Russia of £73m (2010: £nil) and £123m of Spain goodwill impairment (2010: £243m). 2010 adjusted profit before tax has been revised to exclude goodwill impairment of £243m on Barclays Bank Russia.

Barclays PLC – 2011 Results 20

Results by Business

Barclays Corporate

— Adjusted profit before tax¹ improved to £126m (2010: loss of £388m), reflecting significant progress in restructuring overseas operations and improved credit impairment in Europe. Loss before tax improved to £70m (2010: £631m loss), including £123m impairment of Spanish goodwill and £73m loss on the disposal of Barclays Bank Russia (BBR)

– UK profit before tax declined £87m to £747m including a decline in the net valuation of fair value loans. Excluding this item, underlying UK performance improved, reflecting increased net investment and fee and commission income and improving credit impairment, partially offset by an increase in costs mainly from the non-recurrence of a prior year pension credit and continued investment in infrastructure

– Europe loss before tax reduced 24% to £647m, reflecting lower credit impairment partially offset by the goodwill impairment in Spain

– Rest of the World loss before tax reduced 72% to £170m, principally due to the non-recurrence of a prior year goodwill impairment in BBR, lower operating expenses and an improvement in loan loss rates, partially offset by the loss on disposal of BBR

— Net interest income improved 2% to £2,036m driven by increases in UK customer liabilities and customer liability margins

— Net interest margin down to 146bps (2010: 153bps), with average customer assets down 2% to £68.7bn and average customer liabilities up 16% to £70.6bn

— Credit impairment charges reduced 32% to £1,149m, as overall loan loss rates improved to 162bps (2010: 226bps)

– UK reduced 23% to £355m, benefiting from lower default rates and tightly controlled exposure to commercial real estate loans

– Europe reduced 33% to £716m primarily due to lower impairment charges in Spain of £480m (2010: £898m), reflecting proactive risk management action to reduce exposure to the property and construction sector

– Rest of the World reduced 53% to £78m, primarily as a result of management action to reduce risk profile of portfolios

— Operating expenses reduced by 2% to £1,639m, excluding the impact of goodwill impairment. Including goodwill impairment, operating expenses reduced 8% to £1,762m

– A decrease in restructuring charges and benefits from streamlining operations and improving efficiencies more than offset the impact of the non-recurrence of the prior year pension credit

— Total assets increased to £88.7bn (2010: £85.7bn) mainly driven by higher balances in the UK

— Good growth in customer deposits to £77.7bn (2010: £71.0bn), largely within the UK, benefiting from product innovation

— Risk weighted assets decreased 2% to £69.7bn reflecting reductions in net exposures in Europe and Rest of the World, partially offset by higher net balances in the UK

1 Adjusted profit before tax is a non-IFRS measure as it excludes the impact of loss on disposal of Barclays Bank Russia of £73m (2010: £nil) and £123m of Spain goodwill impairment (2010: £243m). 2010 adjusted profit before tax has been revised to exclude goodwill impairment of £243m on Barclays Bank Russia.

Barclays PLC – 2011 Results 21

Results by Business

Barclays Wealth

Income Statement Information	Year Ended 31.12.11 £m					Year Ended 31.12.10 £m			% Change
Net interest income				798			678			18
Net fee and commission income				943			869			9
Net trading income				5			11			(55	)
Net investment income				-			2			nm
Other (expense)/income				(2	)		-			nm
Total income				1,744			1,560			12
Credit impairment charges and other provisions				(41	)		(48	)		(15	)
Net operating income				1,703			1,512			13
Operating expenses				(1,493	)		(1,349	)		11
Share of post-tax results of associates and joint ventures				(3	)		-			nm
Profit before tax				207			163			27
Adjusted profit before tax				207			163			27
Balance Sheet Information and Key Facts
Loans and advances to customers at amortised cost				£18.8bn			£16.1bn			17
Customer deposits				£46.5bn			£44.8bn			4
Total assets				£20.9bn			£17.8bn			17
Risk weighted assets				£13.1bn			£12.4bn			6
Total client assets				£164.2bn			£163.9bn			-
Number of employees (full time equivalents)				7,700			7,700
	Adjusted					Statutory
Other Performance Measures	31.12.11		31.12.10			31.12.11			31.12.10
Loan loss rate (bps)		21		29			21			29
Cost: income ratio		86%		86%			86%			86%

Barclays PLC – 2011 Results 22

Results by Business

Barclays Wealth

— Profit before tax increased 27% to £207m. Strong income growth partly offset by increased investment in the growth of the business

— Income improved 12% to £1,744m reflecting strong income growth in the High Net Worth businesses. Net operating income improved 13% to £1,703m with the loan loss rate reducing to 21bps (2010: 29bps)

— Net interest income improved 18% to £798m as customer deposit and loan balances have increased reflecting growth in High Net Worth client balances and an increase in margins on deposits

– Net interest margin increased to 129bps from 122bps with average customer deposits up £3.6bn to £44.5bn and average loans up £3.0bn to £17.5bn

— Net fee and commission income improved 9% to £943m driven by higher transactional activity in the High Net Worth businesses

— Operating expenses increased 11% to £1,493m

– Increase in investment spend and related restructuring costs to support the strategic investment programme

– Cost of increase in client facing staff and infrastructure to support the High Net Worth businesses

— Risk weighted assets increased 6% to £13.1bn. This compares to growth in lending of 17%, with an increased level of collateral in the lending portfolio

— Client assets increased marginally to £164.2bn (2010: £163.9bn) with strong net new asset growth in the High Net Worth businesses offset by market, foreign exchange and other movements

— Return on average equity increased to 10.9% (2010: 8.8%) and return on average tangible equity up to 15.0% (2010: 12.3%) with growth in income and profit before tax significantly higher than increased equity

Barclays PLC – 2011 Results 23

Results by Business

Investment Management

Income Statement Information	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m			% Change
Total income		53			78			(32	)
Impairment of investment in BlackRock, Inc.		(1,800	)		-			nm
Net operating income		(1,747	)		78			nm
Operating expenses		(15	)		(11	)		36
(Loss)/profit before tax		(1,762	)		67			nm
Adjusted profit before tax1		96			67			43
Balance Sheet Information
Total assets		£4.1bn			£4.6bn			(11	)
Risk weighted assets		£0.1bn			£0.1bn			-

— Adjusted profit before tax¹ of £96m (2010: £67m), principally reflecting dividend income of £123m (2010: £100m) from the Group’s available for sale holding in BlackRock, Inc. which represents a 19.7% (2010: 19.9%) interest

— The loss before tax of £1,762m (2010: profit of £67m) resulted from the £1,800m impairment of the Group’s investment in BlackRock, Inc. The impairment reflects the recycling through the income statement of the cumulative reduction in market value of the Group’s investment in BlackRock, Inc. as at 30 September 2011 previously recognised in equity

— The fair value of the holding as at 31 December 2011 was £4.1bn (2010: £4.6bn). Since 30 September 2011, the value of the holding has increased by £0.7bn, which has been taken to equity. For regulatory capital purposes, the increase, equivalent to approximately 20bps on Core Tier 1 Capital, is deducted from the Group’s Core Tier 1

1 Adjusted profit before tax is a non-IFRS measure as it excludes £1,800m impairment of investment in BlackRock, Inc. (2010: £nil) and £58m loss (2010: £nil) on disposal of a portion of the Group’s strategic investment in BlackRock, Inc. recycled through investment income.

Barclays PLC – 2011 Results 24

Results by Business

Head Office Functions and Other Operations

Income Statement Information	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m			% Change
Total income net of insurance claims (excluding own credit and gains on debt buy-backs)1		(334	)		(178	)		88
Own credit2		2,708			391			nm
Gains on debt buy-backs		1,130			-			nm
Total income net of insurance claims		3,504			213			nm
Credit impairment release/(charge) and other provisions		1			(2	)		nm
Net operating income		3,505			211			nm
Operating expenses (excluding UK bank levy)3		(448	)		(579	)		(23	)
UK bank levy		(325	)		-			nm
Operating expenses		(773	)		(579	)		34
Loss on disposal of subsidiaries, associates and joint ventures		(23	)		-			nm
Profit/(loss) before tax2		2,709			(368	)		nm
Adjusted loss before tax4		(1,106	)		(759	)		46
Balance Sheet Information and Key Facts
Total assets		£27.8bn			£20.9bn			33
Risk weighted assets		£2.4bn			£0.6bn			nm
Number of employees (full time equivalents)5		1,400			1,400

— Adjusted loss before tax⁴ increased 46% to £1,106m, principally as a result of a £325m charge arising from the UK bank levy that came into force during 2011. Profit before tax improved significantly to £2,709m (2010: loss of £368m), reflecting own credit gains and gains on debt buy-backs

— Total income improved to £3,504m (2010: £213m)

– Own credit gains, increased to £2,708m (2010: £391m)

– Gains on debt buy-backs of £1,130m (2010: £nil) resulting from the retirement of Tier 1 capital, which will not qualify as Tier 1 capital under Basel 3

– Partially offset by the non-recurrence in 2011 of £265m income from currency translation reserves following the repatriation of capital from overseas operations that was recognised in 2010

— Operating expenses increased to £773m (2010: £579m) principally due to the UK bank levy of £325m and higher Financial Services Compensation Scheme (FSCS) costs, partially offset by non recurrence of a 2010 provision of £194m in relation to resolution of the investigation into Barclays compliance with US economic sanctions

— The loss on disposal of £23m reflects losses from currency translation reserves recognised in the income statement following the disposal of Barclays Bank Russia

— Total assets increased 33% to £27.8bn due to purchases of government bonds to support the Group’s hedging and liquidity management activities

1 Total income net of insurance claims (excluding own credit and gains on debt buy-backs) is a non-IFRS measure as it excludes those items from the respective IFRS line items. This measure has been presented as it provides a consistent basis for comparing the business’ performance between financial periods.

2 The impact of own credit movements in the fair value of structured note issuance of £2,708m (2010: £391m) is now included within the results of Head Office Functions and Other Operations, rather than Barclays Capital. This reflects the fact that these fair value movements relate to the credit worthiness of the Group as a whole, rather than Barclays Capital in particular, and are not included within any assessment of Barclays Capital's underlying performance. Furthermore, delays to planned changes in accounting standards will mean own credit movements are likely to continue to be reflected in the income statement for the foreseeable future.

3 Operating expenses (excluding UK bank levy), is a non-IFRS measure because it excludes UK bank levy from the respective IFRS line item.

4 Adjusted loss before tax is a non-IFRS measure as it excludes the impact of own credit gains of £2,708m (2010: £391m); gains on debt buybacks of £1,130m (2010: nil) and £23m (2010: nil) loss on disposal of subsidiaries associates and joint ventures.

5 The number of employees for 2010 has been revised to exclude 100 employees transferred to Africa RBB.

Barclays PLC – 2011 Results 25

Results by Quarter

Group Results

	Q411 £m			Q311 £m			Q211 £m			Q111 £m			Q410 £m			Q310 £m			Q210 £m			Q110 £m
Adjusted basis
Total income net of insurance claims1		6,212			7,001			7,549			7,750			8,081			7,238			7,563			8,167
Credit impairment charges and other provisions1		(951	)		(1,023	)		(907	)		(921	)		(1,374	)		(1,218	)		(1,572	)		(1,508	)
Net operating income		5,261			5,978			6,642			6,829			6,707			6,020			5,991			6,659
Operating expenses (excluding UK bank levy)1		(4,414	)		(4,659	)		(4,940	)		(4,842	)		(5,252	)		(4,756	)		(4,868	)		(4,852	)
UK bank levy		(325	)		-			-			-			-			-			-			-
Share of post tax results of associates & JVs		6			18			19			17			16			9			18			15
Adjusted profit before tax		528			1,337			1,721			2,004			1,471			1,273			1,141			1,822
Adjusting items
Own credit 2		(263	)		2,882			440			(351	)		487			(947	)		953			(102	)
Gains on debt buy-backs2		1,130			-			-			-			-			-			-			-
Disposal of strategic investment in BlackRock, Inc.3		-			-			(58	)		-			-			-			-			-
Impairment of investment in BlackRock, Inc.1		-			(1,800	)		-			-			-			-			-			-
Provision for PPI redress4		-			-			(1,000	)		-			-			-			-			-
Goodwill impairment4		(550	)		-			(47	)		-			(243	)		-			-			-
(Losses)/gains on acquisitions and disposals		(32	)		3			(67	)		2			76			1			33			100
Profit before tax		813			2,422			989			1,655			1,791			327			2,127			1,820
Statutory basis
Total income net of insurance claims		7,079			9,883			7,931			7,399			8,568			6,291			8,516			8,065
Credit impairment charges and other provisions		(951	)		(2,823	)		(907	)		(921	)		(1,374	)		(1,218	)		(1,572	)		(1,508	)
Net operating income		6,128			7,060			7,024			6,478			7,194			5,073			6,944			6,557
Operating expenses		(5,289	)		(4,659	)		(5,987	)		(4,842	)		(5,495	)		(4,756	)		(4,868	)		(4,852	)
Basic earnings per share		2.9p			9.7p			4.0p			8.5p			9.1p			0.4p			11.6p			9.3p
Adjusted cost: income ratio		76	%		67	%		65	%		62	%		65	%		66	%		64	%		59	%
Adjusted cost: net operating income ratio		90	%		78	%		74	%		71	%		78	%		79	%		81	%		73	%
Cost: income ratio		75	%		47	%		75	%		65	%		64	%		76	%		57	%		60	%
Cost: net operating income ratio		86	%		66	%		85	%		75	%		76	%		94	%		70	%		74	%
UK RBB
Total income net of insurance claims		1,129			1,273			1,170			1,084			1,186			1,161			1,087			1,084
Credit impairment charges and other provisions		(156	)		(105	)		(131	)		(144	)		(170	)		(202	)		(222	)		(225	)
Net operating income		973			1,168			1,039			940			1,016			959			865			859
Adjusted operating expenses1		(752	)		(675	)		(622	)		(653	)		(762	)		(725	)		(628	)		(694	)
Share of post tax results of associates & JVs		1			1			(1	)		1			1			(4	)		-			2
Adjusted profit before tax		222			494			416			288			255			230			237			167
Adjusting items
Provision for PPI redress4		-			-			(400	)		-			-			-			-			-
Gains on acquisitions and disposals		-			-			-			-			-			-			29			71
Profit before tax		222			494			16			288			255			230			266			238
Statutory basis
Operating expenses		(752	)		(675	)		(1,022	)		(653	)		(762	)		(725	)		(628	)		(694	)

1 Total income net of insurance claims, Credit impairment charges and other provisions, Operating expenses (excluding UK bank levy) and metrics on an adjusted basis are non-IFRS measures as they exclude items listed within the adjusting items heading from the respective IFRS line items. These non-IFRS measures have been presented as they provide a consistent basis for comparing the business’ performance between financial periods.

2 Adjusting item recorded in Total income net of insurance claims.

3 Adjusting item recorded in Credit impairment charges and other provisions.

4 Adjusting item recorded in Operating expenses.

Barclays PLC – 2011 Results 26

Results by Quarter

Europe RBB	Q411 £m			Q311 £m			Q211 £m			Q111 £m			Q410 £m			Q310 £m			Q210 £m			Q110 £m
Total income net of insurance claims		247			375			309			295			263			299			297			305
Credit impairment charges and other provisions		(83	)		(62	)		(47	)		(69	)		(89	)		(92	)		(62	)		(71	)
Net operating income		164			313			262			226			174			207			235			234
Adjusted operating expenses 1		(291	)		(263	)		(368	)		(289	)		(283	)		(255	)		(246	)		(249	)
Share of post tax results of associates & JVs		2			2			4			4			4			4			4			3
Adjusted (loss)/profit before tax		(125	)		52			(102	)		(59	)		(105	)		(44	)		(7	)		(12	)
Adjusting items
Goodwill impairment 2		(427	)		-			-			-			-			-			-			-
Gains on acquisitions and disposals		-			-			-			-			-			-			-			29
(Loss)/profit before tax		(552	)		52			(102	)		(59	)		(105	)		(44	)		(7	)		17
Statutory basis
Operating expenses		(718	)		(263	)		(368	)		(289	)		(283	)		(255	)		(246	)		(249	)
Africa RBB
Total income net of insurance claims		906			994			955			912			983			935			900			882
Credit impairment charges and other provisions		(87	)		(109	)		(126	)		(142	)		(137	)		(95	)		(164	)		(166	)
Net operating income		819			885			829			770			846			840			736			716
Operating expenses		(534	)		(642	)		(618	)		(605	)		(678	)		(671	)		(549	)		(520	)
Share of post tax results of associates & JVs		1			-			1			2			5			(3	)		-			1
Adjusted profit before tax		286			243			212			167			173			166			187			197
Adjusting items
Gains on acquisitions and disposals		-			2			-			-			77			-			4			-
Profit before tax		286			245			212			167			250			166			191			197
Barclaycard
Total income net of insurance claims		983			1,140			1,012			960			1,036			1,030			981			977
Credit impairment charges and other provisions		(271	)		(340	)		(344	)		(304	)		(393	)		(405	)		(425	)		(465	)
Net operating income		712			800			668			656			643			625			556			512
Adjusted operating expenses 1		(458	)		(430	)		(400	)		(371	)		(420	)		(386	)		(364	)		(400	)
Share of post tax results of associates & JVs		5			8			7			11			7			5			7			6
Adjusted profit before tax		259			378			275			296			230			244			199			118
Adjusting items
Provision for PPI redress 2		-			-			(600	)		-			-			-			-			-
Goodwill impairment 2		-			-			(47	)		-			-			-			-			-
Profit/(loss) before tax		259			378			(372	)		296			230			244			199			118
Statutory basis
Operating expenses		(458	)		(430	)		(1,047	)		(371	)		(420	)		(386	)		(364	)		(400	)

1 Adjusted operating expenses is a non-IFRS measures as it excludes items listed within the adjusting items heading from the respective IFRS line items.

2 Adjusting item recorded in Operating expenses.

Barclays PLC – 2011 Results 27

Results by Quarter

Barclays Capital1	Q411 £m			Q311 £m			Q211 £m			Q111 £m			Q410 £m			Q310 £m			Q210 £m			Q110 £m
Fixed Income, Currency and Commodities		971			1,438			1,715			2,201			2,031			1,773			2,138			2,745
Equities and Prime Services		305			338			563			545			625			359			563			493
Investment Banking		506			389			520			612			725			501			461			556
Principal Investments		36			89			99			8			115			19			4			101
Total income		1,818			2,254			2,897			3,366			3,496			2,652			3,166			3,895
Credit impairment charges and other provisions		(90	)		(114	)		80			31			(222	)		(12	)		(41	)		(268	)
Net operating income		1,728			2,140			2,977			3,397			3,274			2,640			3,125			3,627
Operating expenses		(1,458	)		(1,758	)		(2,006	)		(2,067	)		(2,201	)		(1,881	)		(2,154	)		(2,059	)
Share of post tax results of associates and JVs		(3	)		6			6			3			2			6			7			3
Adjusted profit before tax and profit before tax		267			388			977			1,333			1,075			765			978			1,571
Barclays Corporate
Total income net of insurance claims		665			776			768			703			807			766			683			718
Credit impairment charges and other provisions		(253	)		(282	)		(327	)		(287	)		(342	)		(405	)		(642	)		(307	)
Net operating income		412			494			441			416			465			361			41			411
Adjusted operating expenses2		(393	)		(407	)		(427	)		(412	)		(437	)		(398	)		(343	)		(486	)
Share of post tax results of associates & JVs		1			2			2			(3	)		(2	)		-			-			-
Adjusted profit/(loss) before tax		20			89			16			1			26			(37	)		(302	)		(75	)
Adjusting items
Goodwill impairment 3		(123	)		-			-			-			(243	)		-			-			-
Losses on disposal		(9	)		-			(64	)		-			-			-			-			-
(Loss)/profit before tax		(112	)		89			(48	)		1			(217	)		(37	)		(302	)		(75	)
Statutory basis
Operating expenses		(516	)		(407	)		(427	)		(412	)		(680	)		(398	)		(343	)		(486	)
Barclays Wealth
Total income net of insurance claims		449			447			426			422			417			386			387			370
Credit impairment charges and other provisions		(10	)		(12	)		(9	)		(10	)		(13	)		(8	)		(17	)		(10	)
Net operating income		439			435			417			412			404			378			370			360
Operating expenses		(384	)		(369	)		(375	)		(365	)		(363	)		(351	)		(320	)		(315	)
Share of post tax results of associates & JVs		(1	)		(1	)		-			(1	)		-			-			-			-
Adjusted profit before tax and profit before tax		54			65			42			46			41			27			50			45
Investment Management
Adjusted total income net of insurance claims2		22			32			33			24			20			24			5			29
Operating expenses		(6	)		(3	)		(6	)		-			(8	)		-			(3	)		-
Adjusted profit before tax		16			29			27			24			12			24			2			29
Adjusting items
Disposal of strategic investment in BlackRock, Inc.4		-			-			(58	)		-			-			-			-			-
Impairment of investment in BlackRock, Inc.		-			(1,800	)		-			-			-			-			-			-
Profit/(loss) before tax		16			(1,771	)		(31	)		24			12			24			2			29
Statutory basis
Total income net of insurance claims		22			32			(25	)		24			20			24			5			29

1 The impact of movements in own credit is now included within the results of Head Office Functions and Other Operations, rather than Barclays Capital.

2 Adjusted total income net of insurance claims and Adjusted operating expenses are non-IFRS measures as they exclude items listed within the adjusting items heading from the respective IFRS line items.

3 Adjusting item recorded in Operating expenses.

4 Adjusting item recorded in Total income net of insurance claims.

Barclays PLC – 2011 Results 28

Results by Quarter

Head Office Functions and Other Operations1	Q411 £m			Q311 £m			Q211 £m			Q111 £m			Q410 £m			Q310 £m			Q210 £m			Q110 £m
Adjusted total income net of insurance claims 2		(7	)		(290	)		(21	)		(16	)		(127	)		(15	)		57			(93	)
Credit impairment charges and other provisions		(1	)		1			(3	)		4			(8	)		1			1			4
Adjusted net operating income		(8	)		(289	)		(24	)		(12	)		(135	)		(14	)		58			(89	)
Adjusted operating expenses (excluding UK bank levy) 3		(138	)		(112	)		(118	)		(80	)		(100	)		(89	)		(261	)		(129	)
UK bank levy		(325	)		-			-			-			-			-			-			-
Share of post tax results of associates & JVs		-			-			-			-			(1	)		1			-			-
Adjusted loss before tax		(471	)		(401	)		(142	)		(92	)		(236	)		(102	)		(203	)		(218	)
Adjusting items
Own credit 4		(263	)		2,882			440			(351	)		487			(947	)		953			(102	)
Gains on debt buy-backs4		1,130			-			-			-			-			-			-			-
(Losses)/gains on acquisitions and disposals		(23	)		1			(3	)		2			(1	)		1			-			-
Profit/(loss) before tax		373			2,482			295			(441	)		250			(1,048	)		750			(320	)
Statutory basis
Total income net of insurance claims		860			2,592			419			(367	)		360			(962	)		1,010			(195	)
Net operating income		859			2,593			416			(363	)		352			(961	)		1,011			(191	)
Operating expenses		(463	)		(112	)		(118	)		(80	)		(100	)		(89	)		(261	)		(129	)

1 The impact of movements in own credit is now included within the results of Head Office Functions and Other Operations, rather than Barclays Capital.

2 Total income net of insurance claims on an adjusted basis is a non-IFRS measures as it excludes items listed within the adjusting items heading from the respective IFRS line items.

3 Adjusted operating expenses (excluding UK bank levy), is a non-IFRS measure because it excludes UK bank levy from the respective IFRS line item.

4 Adjusting item recorded in Total income net of insurance claims.

Barclays PLC – 2011 Results 29

Performance Management

Remuneration

We recognise the understandable importance that all of our stakeholders attach to the judgements that we must apply in managing remuneration. We take that responsibility seriously and, as a consequence, we seek to manage remuneration in a way that is consistent with protecting future revenue flows and our ability to maximise returns to shareholders while enhancing our customer and client service standards.

Ensuring that we have the right people, in the right roles, is vital to our ability to generate shareholder returns by serving our customers and clients effectively, especially in the highly competitive, global markets in which we operate across our businesses. This requires that we are competitive in the way in which we manage remuneration.

We manage remuneration decisions on the basis of total compensation, comprising salaries, bonuses and long term incentives. An important tool in ensuring an appropriate balance between competitiveness and responsibility is the mix between the fixed and variable components of remuneration. We have set the fixed component of remuneration – which largely comprises salaries – at a level consistent with market rates and the prevailing regulatory requirements. We then use the variable component of remuneration to create the flexibility that allows our cost base to respond to changes in economic and business conditions and to provide a clear and explicit link between remuneration and current and future performance. That link includes, in particular for senior roles, paying a substantially higher proportion of bonuses in shares and the inclusion of clawback provisions in deferred bonuses to help ensure sustained performance over the longer term.

We have increased the use of deferred bonuses to better align the incentive created by the variable component of remuneration to sustained performance. Deferred bonuses are payable only once an employee meets certain conditions, including a specified period of service, such that the related costs are recognised over that period. This creates a timing difference between the communication of the bonus pool (being the total bonus awards granted that are decided upon by management and approved by the Board Remuneration Committee) and the charges that appear in the income statement for any year. As such, set out below are the components of remuneration that relate to management’s and the Board’s decisions on the bonus pool reconciled to the income statement charge, recognised in accordance with accounting standards.

Incentive awards

— Total bonus pool down 25% and total incentive awards down 26% versus 2010, with adjusted Group PBT¹ reducing 2%

— Total bonus pool as a percentage of profit before tax (pre-bonus) down year on year from 33% to 28%

— Barclays Capital bonus pool down 32% and total incentive awards down 35% versus 2010, with Barclays Capital PBT reducing 32%

— Average value of bonus per Group employee down 21% year on year to £15,200; average value of bonus per Barclays Capital employee down 30% to £64,000

— Current year cash bonus capped at £65,000 for all Barclays Capital employees

— Proportion of bonus pool that is deferred significantly exceeds the FSA’s Remuneration Code requirements and is expected to be amongst the highest deferral levels globally; 75% of the bonus pool in Barclays Capital is deferred

— Annual incentives for the Executive Directors and the eight highest paid senior executive officers down 48% versus 2010 on a like-for-like basis

Bonus Pool Component	Expected Grant Date	Expected Payment Date(s)2	Year(s) in which Income Statement Charge Arises3
Current year cash bonus	—   February 2012	—   February 2012	—   2011
Current year share bonus	—   February/March 2012	—   February 2012 to      September 2012	—   2011
Deferred cash bonus	—   March 2012	—   March 2013 (33.3%) —   March 2014 (33.3%) —   March 2015 (33.3%)	—   2012 (48%) —    2013 (35%) —   2014 (15%) —   2015 (2%)
Deferred share bonus	—   March 2012	—   March 2013 (33.3%) —   March 2014 (33.3%) —   March 2015 (33.3%)	—   2012 (48%) —    2013 (35%) —   2014 (15%) —   2015 (2%)

1 Adjusted Group PBT is a non-IFRS Measure as it excludes the impact of £2,708m (2010: £391m) own credit gains, £1,130m (2010: £nil) gains on debt buy-backs, £58m (2010: £nil) loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc. recycled through investment income, £1,800m (2010: £nil) impairment of investment in BlackRock, Inc., £1,000m (2010: £nil) provision for PPI redress, £597m (2010: £243m) goodwill impairment and £94m loss (2010: £210m gain) on acquisitions and disposals. Statutory Group PBT reduced 3%.

2 Payments are subject to all performance conditions being met prior to the expected payment date. In addition, employees receiving a deferred cash bonus may be awarded a service credit of 10% of the initial value of the award at the time that the final instalment is made, subject to continued employment.

3 The income statement charge is based on the period over which performance conditions are met.

Barclays PLC – 2011 Results 30

Performance Management

Total Incentive Awards Granted - Current Year and Deferred¹

	Barclays Group							Barclays Capital
	Year Ended 31.12.11 £m		Year Ended 31.12.10 £m		% Change			Year Ended 31.12.11 £m		Year Ended 31.12.10 £m			% Change
Current year cash bonus		832		1,601		(48	)		381		1,139			(67	)
Current year share bonus		66		73		(10	)		3		57			(95	)
Total current year bonus		898		1,674		(46	)		384		1,196			(68	)
Deferred cash bonus		618		568		9			576		530			9
Deferred share bonus		634		609		4			576		535			8
Total deferred bonus		1,252		1,177		6			1,152		1,065			8
Bonus pool		2,150		2,851		(25	)		1,536		2,261			(32	)
Sales commissions, commitments and other incentives		428		633		(32	)		201		399			(50	)
Total incentive awards granted		2,578		3,484		(26	)		1,737		2,660			(35	)
Bonus pool as % of PBT (pre bonus)2		28%		33%					35%		36%
Bonus pool as % of adjusted PBT (pre bonus)2		29%		34%					35%		36%
Proportion of bonus that is deferred		58%		41%					75%		47%
Total employees (full time equivalent)		141,100		147,500		(4	)		24,000		24,800			(3	)
Bonus per employee		£15,237		£19,329		(21	)		£64,000		£91,169			(30	)
Reconciliation of Total Incentive Awards Granted to Income Statement Charge										Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Total incentive awards for 2011											2,578			3,484
Less: deferred bonuses awarded for 2011											(1,252	)		(1,177	)
Add: current year charges for deferred bonuses from previous years											995			904
Other3											206			139
Income statement charge for performance costs											2,527			3,350

— Employees only become eligible to receive payment from a deferred bonus once all of the relevant conditions have been fulfilled, including the provision of services to the Group

— The income statement charge for performance costs reflects the charge for employees’ actual services provided to the Group during the relevant calendar year (including where those services fulfil performance conditions relating to previously deferred bonuses). It does not include charges for deferred bonuses where performance conditions have not been met

— As a consequence, while the 2011 incentive awards granted were down 26% compared to 2010, the income statement charge for performance costs was down 25%

1 Total incentive awards granted are non-IFRS measures as they represent incentive awards granted as opposed to the income statement charge. These non-IFRS measures have been presented as they provide a consistent basis for comparing the bonus pool between financial periods. A reconciliation to IFRS measures is provided above.

2 Calculated as bonus awards divided by profit before tax excluding the income statement charge for bonus awards.

3 Difference between incentive awards granted and income statement charge for sales commissions, commitments and other incentives.

Barclays PLC – 2011 Results 31

Performance Management

Income Statement Charge	Year Ended 31.12.11 £m		Year Ended 31.12.10 £m		% Change
Performance costs		2,527		3,350		(25	)
Salaries		6,277		6,151		2
Other share based payments		167		168		(1	)
Social security costs		716		719		-
Post retirement benefits		727		528		38
Total compensation costs		10,414		10,916		(5	)
Bank payroll tax		76		96		(21	)
Other1		917		904		1
Non compensation costs		993		1,000		(1	)
Total staff costs		11,407		11,916		(4	)

— Total staff costs reduced 4% to £11,407m, principally reflecting the £823m reduction in performance costs offset by the impact of a £304m pension credit recognised in 2010

— Performance costs reduced 25% to £2,527m, principally reflecting reduced charges for current year cash bonuses

— It is currently anticipated that deferred bonuses will be charged to the income statement in the following years:

	Actual				Expected
Year in which Income Statement Charge is Expected to be Taken for Deferred Bonuses2	Year Ended 31.12.10 £m		Year Ended 31.12.11 £m		Year Ended 31.12.12 £m		2013 and beyond £m
Deferred bonuses from 2009 and earlier bonus pools		904		405		139		23
Deferred bonuses from 2010 bonus pool		-		590		387		205
Deferred bonuses from 2011 bonus pool		-		-		601		651
Income statement charge for deferred bonuses		904		995		1,127		879

— Salaries increased 2% to £6,277m in line with inflation on a moderately declining average headcount

— The post retirement benefits charge increased 38% to £727m reflecting the non-recurrence of a £304m credit in 2010. There have been no material changes or augmentations to any of the post retirement benefit programmes in 2011

Glossary

Current year cash bonus – Bonus paid to employees in cash on a discretionary basis in respect of performance in the period.

Current year share bonus – Bonus paid to employees in shares on a discretionary basis in respect of performance in the period. In keeping with regulatory requirements, the shares may be subject to a minimum retention period.

Deferred cash bonus – Performance award granted on a discretionary basis and paid in cash to employees for, and subject to, providing future service over a period of usually three years. These awards also include provisions for potential clawback in accordance with the FSA Remuneration Code.

Deferred share bonus – Performance award granted on a discretionary basis and paid in shares to employees for, and subject to, providing future service over a period of usually three years. These awards also include provisions for potential clawback in accordance with the FSA Remuneration Code.

Incentive awards – Total of current year and deferred bonus plus sales commissions, guaranteed incentives and long term incentive plan awards.

Sales commissions, commitments and other incentives – Includes commission-based arrangements, guaranteed incentives and Long Term Incentive Plan awards.

1 Includes staff training, redundancy and recruitment.

2 The actual amount charged depends upon whether performance conditions have been met and will vary compared with the above expectation.

Barclays PLC – 2011 Results 32

Performance Management

Margins and Balances

Analysis of Net Interest Income	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Retail and Business Banking, Corporate and Wealth customer interest income
- Customer assets		6,983			6,956
- Customer liabilities		2,866			2,167
		9,849			9,123
Retail and Business Banking, Corporate and Wealth non-customer interest income
- Product structural hedge1		1,168			1,403
- Equity structural hedge2		824			731
- Other		148			116
Total Retail and Business Banking, Corporate and Wealth net interest income		11,989			11,373
Barclays Capital3		1,177			1,121
Head Office and Investment Management2		(965	)		29
Group net interest income		12,201			12,523

Retail and Business Banking, Corporate and Wealth Net Interest Income

Barclays distinguishes the relative net interest contribution from each of customer assets and customer liabilities, and separates this from the contribution delivered by non-customer net interest income, which principally arises from the Group hedging activities.

Customer interest income

— Customer net interest income increased 8% to £9,849m, driven by increases in the customer liability margin and growth in average customer asset and liability balances. Retail customer liabilities grew principally due to demand for savings products in the UK

— The customer asset margin declined to 2.20% (2010: 2.25%), reflecting an increase in the cost of funds across each of the individual RBB, Corporate and Wealth businesses. This was partially offset by increased customer pricing across most of the businesses

— The customer liability margin increased to 1.06% (2010: 0.86%) reflecting the increase in the cost of funds and therefore value generated from RBB, Corporate and Wealth customer liabilities

Non-customer interest income

— Non-customer net interest income decreased 5% to £2,140m, reflecting a 7% reduction in the benefits from Group hedging activities to £1,992m. Group hedging activities utilise structural interest rate hedges to mitigate the impact of the low interest rate environment on customer liabilities and the Group’s equity

— Product structural hedges generated a lower contribution of £1,168m (2010: £1,403m), as hedges were maintained at lower market interest rates. The extended duration profile constructed in H1 2011 continues to moderate this impact. Based on the market curve as at the end of 2011 and the on-going hedging strategy, fixed rate returns on product structural hedges are expected to continue to make a significant but declining contribution in 2012

— The contribution from equity structural hedges in RBB, Corporate and Wealth increased to £824m (2010: £731m) including a £216m increase in gains on sale of hedging instruments

1 Product structural hedges convert 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 are built on a monthly basis to achieve a targeted maturity profile.

2 Equity structural hedges are 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.

3 Includes contribution from equity structural hedging. Total Group income from equity structural hedges increased to £2,109m (2010: £1,788m) including £1,285m (2010: £1,057m) that was allocated to Barclays Capital and Head Office, primarily due to increased gains on sale of hedging instruments partially offset by a decline in ongoing hedging contribution.

Barclays PLC – 2011 Results 33

Performance Management

Other Group Net Interest Income

— Barclays Capital net interest income increased 5% to £1,177m, including a £247m increase in gains on sale of hedging instruments

— Head Office and Investment Management net interest expense of £965m (2010: £29m income) principally reflects a reduction in income which is transferred from trading income within Head Office relating to interest rate swaps used for hedge accounting purposes, together with an increase in amounts transferred to businesses relating to gains arising from the sale of hedging instruments

Net Interest Margin

— The net interest margin for RBB, Corporate and Wealth remained stable at 2.04% (2010: 2.03%). Consistent with prior periods the net interest margin is expressed as a percentage of the sum of average customer assets and liabilities, to reflect the impact of the margin generated on retail and commercial banking liabilities

— The net interest margin expressed as a percentage of average customer assets only, improved to 3.77% (2010: 3.67%)

— An analysis is provided below for RBB, Corporate and Wealth for each of the component parts of net interest income

Year Ended 31.12.11	UK RBB %		Europe RBB %		Africa RBB %		Barclaycard %			Barclays Corporate %		Barclays Wealth %		Total RBB, Corporate and Wealth %
Customer asset margin		1.22		0.87		3.11		9.52			1.35		0.77		2.20
Customer liability margin		0.87		0.65		2.27		-			1.00		0.99		1.06
Non-customer generated margin		0.46		0.47		0.32		(0.08	)		0.29		0.36		0.36
Net interest margin		1.51		1.28		3.07		9.44			1.46		1.29		2.04
Average customer assets (£m)		118,503		43,749		38,877		30,289			68,667		17,546		317,631
Average customer liabilities (£m)		107,761		17,702		29,473		-			70,632		44,536		270,104
Year Ended 31.12.10
Customer asset margin		1.26		1.02		3.12		9.35			1.43		0.81		2.25
Customer liability margin		0.68		0.11		2.25		-			0.76		0.87		0.86
Non-customer generated margin		0.47		0.41		0.18		0.42			0.41		0.37		0.40
Net interest margin		1.45		1.16		2.94		9.77			1.53		1.22		2.03
Average customer assets (£m)		113,713		41,509		41,328		28,811			69,831		14,529		309,721
Average customer liabilities (£m)		104,508		17,263		27,731		-			60,946		40,985		251,433

— The customer asset margin is presented as a percentage of interest earned on customer assets (excluding the impact of hedging), relative to the average internal funding rate divided by average customer assets. The customer liability margin is calculated as the interest on customer liabilities (excluding the impact of hedging), relative to the average internal funding rate, divided by average customer liabilities

— The non-customer generated margin is calculated as non-customer interest income (principally comprising the impact of both the product and equity structural hedge) as a percentage of the sum of average customer assets and liabilities, consistent with the presentation of the net interest margin

— The Group’s 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 wholesale funding at a rate that is driven by prevailing market rates including a term premium. The objective is to price internal funding for assets and liabilities in line with the cost of alternative funding, which ensures there is consistency between retail and wholesale sources

Barclays PLC – 2011 Results 34

Risk Management

Overview

— Barclays has clear risk management objectives and a well-established strategy to deliver these objectives. The approach to identifying, assessing, reporting, controlling and managing risks is formalised in the Principal Risks Policy and associated control framework

— During 2011, the Principal Risks Policy was updated, resulting in risks being grouped into four categories with no significant change to the underlying risk types. Further information will be provided in the Annual Report

— The Group’s Principal Risks and the current associated uncertainties¹, together with references to where areas of significant risk affecting the 2011 results are described, are as follows:

Principal Risks and Associated Uncertainties1	Topics Covered	Page
Funding Risk
—  Impact of Basel 3 as regulatory rules are finalised —  Impacts on capital ratios from weak profit performance —  Volatility in cost of funding due to economic uncertainty —  Reduction in available depositor and wholesale funding	—  Capital base, risk weighted assets and balance sheet leverage —  Liquidity pool and funding structure		36   39
Credit Risk
—  Impact of potentially deteriorating sovereign credit quality, particularly debt servicing and refinancing capability —  Extent and sustainability of economic recovery, including impact of austerity measures on the European economies —  Increase in unemployment due to a weaker economy, fiscal tightening and other measures —  Impact of rising inflation and potential interest rate rises on consumer debt affordability and corporate profitability —  Possibility of further falls in residential property prices in the UK, South Africa and Western Europe Potential liquidity shortages increasing counterparty risks —  Potential for large single name losses and deterioration in specific sectors and geographies —  Possible deterioration in remaining credit market exposures Potential exit of one or more countries from the Euro as a result of the European debt crisis	—  Total assets by valuation basis and underlying asset class —  Loans and advances to customers and banks —  Impairment, potential credit risk loans and coverage ratios —  Retail credit risk —  Wholesale credit risk —  Barclays Capital credit market exposures —  Group exposures to selected countries		44   45   47   50   55   62   57
Market Risk
—  Reduced client activity leading to lower revenues —  Decreases in market liquidity due to economic uncertainty —  Impact on income from uncertain interest and exchange rate environment —  Asset returns underperforming pension liabilities	—  Analysis of market risk and, in particular, Barclays Capital’s DvaR —  Analysis of interest margins —  Retirement benefit liabilities		64   33   73
Operational Risk
—  Implementation of strategic change and integration programmes across the Group —  Continued regulatory and political focus, driven by the global economic climate —  Impact of new, wide ranging, legislation in various countries coupled with changing regulatory landscape —  Increasingly litigious environment —  The crisis management agenda and breadth of regulatory change required in global financial institutions	—  Significant litigation matters —  Significant investigations —  Significant regulatory matters		76   78   78

1 The associated uncertainties may affect more than one Principal Risk.

Barclays PLC – 2011 Results 35

Funding Risk - Capital

Key Capital Ratios

	As at 31.12.11			As at 31.12.10
Core tier 1		11.0%			10.8%
Tier 1		12.9%			13.5%
Total capital		16.4%			16.9%
Capital Resources	£m			£m
Shareholders’ equity (excluding non-controlling interests) per balance sheet		55,589			50,858
Non-controlling interests per balance sheet		9,607			11,404
- Less: other tier 1 capital - preference shares		(6,235	)		(6,317	)
- Less: other tier 1 capital - Reserve Capital Instruments		-			(1,275	)
- Less: non-controlling tier 2 capital		(573	)		(572	)
Other regulatory adjustments		(138	)		(317	)
Regulatory adjustments and deductions:
Own credit cumulative gain (net of tax)		(2,680	)		(621	)
Defined benefit pension adjustment		(1,241	)		99
Unrealised losses on available for sale debt securities		555			340
Unrealised gains on available for sale equity (recognised as tier 2 capital)		(828	)		-
Cash flow hedging reserve		(1,442	)		(152	)
Goodwill and intangible assets		(7,560	)		(8,326	)
50% excess of expected losses over impairment (net of tax)		(506	)		(268	)
50% of securitisation positions		(1,577	)		(2,360	)
Other regulatory adjustments		95			368
Core tier 1 capital		43,066			42,861
Other tier 1 capital:
Preference shares		6,235			6,317
Tier 1 notes1		530			1,046
Reserve Capital Instruments		2,895			6,098
Regulatory adjustments and deductions:
50% of material holdings		(2,382	)		(2,676	)
50% tax on excess of expected losses over impairment		129			(100	)
Total tier 1 capital		50,473			53,546
Tier 2 capital:
Undated subordinated liabilities		1,657			1,648
Dated subordinated liabilities		15,189			16,565
Non-controlling tier 2 capital		573			572
Reserves arising on revaluation of property		25			29
Unrealised gains on available for sale equity		828			-
Collectively assessed impairment allowances		2,385			2,409
Tier 2 deductions:
50% of material holdings		(2,382	)		(2,676	)
50% excess of expected losses over impairment (gross of tax)		(635	)		(168	)
50% of securitisation positions		(1,577	)		(2,360	)
Total capital regulatory adjustments and deductions:
Investments that are not material holdings or qualifying holdings		(1,991	)		(1,622	)
Other deductions from total capital		(597	)		(628	)
Total regulatory capital		63,948			67,315

1 Tier 1 notes are included in subordinated liabilities in the consolidated balance sheet.

Barclays PLC – 2011 Results 36

Funding Risk - Capital

— Core Tier 1 capital increased by £0.2bn to £43.1bn primarily driven by:

– £2.6bn capital generated from retained profits excluding own credit gain, impairment of investment in BlackRock, Inc. and goodwill impairment, which are added back for regulatory capital purposes

– £1.1bn reduction in the value of the investment in BlackRock, Inc. prior to impairment

– £0.5bn net increase from the impact of share awards on shareholders’ funds

– £1.3bn reduction reflecting contributions made to the UK Retirement Fund in 2011

– £1.3bn reduction due to foreign currency movements, primarily due to the depreciation of the South African Rand and Euro against Sterling

– £0.8bn increase resulting from lower regulatory deductions

— Total capital resources decreased by £3.4bn to £63.9bn principally as a result of the debt buy-back in December 2011 of £1.9bn Reserve Capital Instruments and £0.5bn Tier 1 notes that will not qualify as Tier 1 capital under Basel 3 and the redemption of a further £1.3bn of Reserve Capital Instruments

Total Assets and Risk Weighted Assets by Business

	Total Assets by Business				Risk Weighted Assets by Business
	As at 31.12.11 £m		As at 31.12.10 £m		As at 31.12.11 £m		As at 31.12.10 £m
UK RBB		127,845		121,590		33,956		35,274
Europe RBB		51,310		53,609		17,436		17,269
Africa RBB		50,759		60,264		33,419		38,401
Barclaycard		33,838		30,324		34,186		31,913
Barclays Capital		1,158,351		1,094,799		186,700		191,275
Barclays Corporate		88,674		85,735		69,712		70,796
Barclays Wealth		20,866		17,849		13,076		12,398
Investment Management		4,066		4,612		125		74
Head Office Functions and Other Operations		27,818		20,863		2,389		631
Total		1,563,527		1,489,645		390,999		398,031

Risk Weighted Assets by Risk

	As at 31.12.11 £m		As at 31.12.10 £m
Credit risk		245,224		260,998
Counterparty risk
- Internal model method		33,131		29,466
- Non-model method		4,953		14,397
Market risk
- Modelled – VaR		26,568		9,209
- Modelled – Charges add-on and Non-VaR		17,560		3,769
- Standardised		27,823		48,073
Operational risk		35,740		32,119
Total risk weighted assets		390,999		398,031

Barclays PLC – 2011 Results 37

Funding Risk - Capital

— Group risk weighted assets decreased by 2% to £391bn (2010: £398bn) driven by:

– £30bn increase from implementation of CRD3 incorporating Basel 2.5, predominantly in modelled market risk

– £26bn reduction across credit, counterparty and market risk in Barclays Capital, due to lower levels of activity combined with risk reduction, offset by a £4bn increase relating to market stress

– £11bn reduction from currency movements, primarily depreciation of the Rand and Euro against Sterling

– £9bn reduction due to credit market exposure sell down in Barclays Capital

– £5bn increase from business growth, £2bn relating to UK RBB and Barclays Corporate, reflecting delivery against Project Merlin targets, and £3bn from Barclaycard acquisitions

Balance Sheet Leverage	As at 31.12.11 £m			As at 31.12.10 £m
Total assets1		1,563,527			1,489,645
Counterparty netting		(440,592	)		(340,467	)
Collateral on derivatives		(51,124	)		(37,289	)
Net settlement balances and cash collateral		(61,913	)		(48,108	)
Goodwill and intangible assets		(7,846	)		(8,697	)
Customer assets held under investment contracts2		(1,681	)		(1,947	)
Adjusted total tangible assets		1,000,371			1,053,137
Total qualifying Tier 1 capital		50,473			53,546
Adjusted gross leverage3		20			20
Adjusted gross leverage (excluding liquidity pool)3		17			17
Ratio of total assets to shareholders’ equity		24			24
Ratio of total assets to shareholders’ equity (excluding liquidity pool)		22			21

— Barclays continues to manage its balance sheet within limits and targets for balance sheet usage

— Adjusted gross leverage³ was 20x (2010: 20x) as the reduction in qualifying Tier 1 Capital to £50.5bn (2010: £53.5bn) was offset by the reduction in adjusted total tangible assets by 5% to £1,000bn

— At month ends during 2011 the ratio moved in the range from 20x to 23x with fluctuations arising primarily within collateralised reverse repurchase lending and high quality trading portfolio assets

— Adjusted total tangible assets include cash and balances at central banks of £106.9bn (31 December 2010: £97.6bn). Excluding these balances, the balance sheet leverage would be 18x (2010: 18x). Excluding the liquidity pool, leverage would be 17x (2010: 17x)

— The ratio of total assets to total shareholders’ equity was 24x (2010: 24x) and moved within a month end range of 24x to 28x, driven by trading activity fluctuations noted above and changes in gross interest rate derivatives and settlement balances

1 Includes Liquidity Pool of £152bn (2010: £154bn).

2 Comprising financial assets designated at fair value and associated cash balances.

3 Adjusted gross leverage is a non-IFRS measure representing the multiple of adjusted total tangible assets over total qualifying Tier 1 capital. This measure has been presented as it provides for a metric used by management in assessing balance sheet leverage. Barclays management believes that this measure provides useful information to readers of Barclays financial statements as a key measure of stability, which is consistent with the views of regulators and investors.

Barclays PLC – 2011 Results 38

Funding Risk - Liquidity

Liquidity Pool

The Group liquidity pool as at 31 December 2011 was £152bn (2010: £154bn) and moved within a month-end range of £140bn to £167bn during the year. The liquidity pool is held unencumbered and is not used to support payment or clearing requirements. It is intended to offset stress outflows and comprises the following cash and unencumbered assets.

	Cash and Deposits with Central Banks1 £bn		Government Bonds2 £bn		Other Available Liquidity £bn		Total3 £bn
As at 31.12.11		105		36		11		152
As at 31.12.10		96		40		18		154

Liquidity Risk Management Framework

Barclays has a comprehensive Liquidity Risk Management Framework (the Liquidity Framework) for managing the Group’s liquidity risk. The Liquidity Framework meets the FSA’s standards and is designed to ensure that the Group maintains sufficient financial resources of appropriate quality for the Group’s funding profile. This is achieved via a combination of policy formation, review and governance, analysis, stress testing, limit setting and monitoring. Together, these meet internal and regulatory requirements.

Since June 2010, the Group has reported its liquidity position against backstop Individual Liquidity Guidance (ILG) provided by the FSA. The Group also monitors compliance against anticipated Basel 3 metrics, including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR).

Under the Liquidity Framework, the Group has established a Liquidity Risk Appetite (LRA), which is measured with reference to the liquidity pool as a percentage of anticipated stressed net contractual and contingent outflows for each of three stress scenarios. These scenarios are aligned to the FSA’s prescribed stresses and cover a market-wide stress event, a Barclays-specific stress event and a combination of the two. Under normal market conditions, the liquidity pool must be in excess of 100% of three months’ anticipated outflows for a market-wide stress and one month’s anticipated outflows for each of the Barclays-specific and combined stresses. As at 31 December 2011, the liquidity pool as a percentage of the anticipated net outflows under each of the stress scenarios was:

	Market-wide 3 month			Barclays-specific 1 month			Combined 1 month
Liquidity pool as a percentage of anticipated net outflows		127	%		107	%		118	%

Barclays monitors the money markets closely, in particular for early indications of the tightening of available funding. In these conditions, the nature and severity of the stress scenarios are reassessed and appropriate action taken with respect to the liquidity pool. This may include further increasing the size of pool or monetising the pool to meet stress outflows.

Funding Structure

The Group’s overall funding strategy is to develop a diversified funding base (both geographically and by depositor type) and maintain access to a variety of alternative funding sources, to minimise the cost of funding while providing protection against unexpected fluctuations.

Within this, the Group aims to align the sources and uses of funding. As such, retail and commercial customer loans and advances are largely funded by customer deposits. Other assets together with other loans and advances and unencumbered assets, are funded by long term wholesale debt and equity.

Trading portfolio assets and reverse repurchase agreements are largely funded in the wholesale markets by repurchase agreements and trading portfolio liabilities, whilst derivative assets are largely matched by derivatives liabilities.

The liquidity pool is predominantly funded through wholesale markets.

1 Of which over 95% is placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.

2 Of which over 80% comprised UK, US, Japanese, French, German and Dutch securities.

3 £140bn of which is FSA eligible.

Barclays PLC – 2011 Results 39

Funding Risk - Liquidity

Deposit Funding

Funding of Loans and Advances to Customers1	Loans and Advances to Customers £bn		Customer Deposits £bn		Loan to Deposit Ratio %
RBB		231.6		158.7		146
Barclays Corporate1		64.6		77.7		83
Barclays Wealth		18.8		46.5		40
Total funding excluding secured		315.0		282.9		111
Secured funding				28.7
Sub-total including secured funding		315.0		311.6		101
RBB, Corporate and Wealth		315.0		282.9		111
Barclays Capital		63.4		46.0		138
Group Centre		0.9		-		nm
Trading settlement balances and cash collateral		52.6		37.1		142
Total		431.9		366.0		118

The total loan to deposit ratio as at 31 December 2011 was 118% (2010: 124%) and the loan to deposit and long-term funding ratio was 75% (2010: 77%).

RBB, Barclays Corporate and Barclays Wealth activities are largely funded with customer deposits. As at 31 December 2011, the loan to deposit ratio for these businesses was 111% (2010: 114%) and the loan to deposit and secured funding ratio was 101% (2010: 105%). The funding gap for these businesses is met using asset backed securities and covered bonds secured primarily over customer loans and advances such as residential mortgages and credit card receivables.

The excess of Barclays Capital’s loans and advances over customer deposits is funded with long-term debt and equity.

Included within RBB and Barclays Capital are Absa related balances totalling £38.0bn of loans and advances to customers funded by £33.0bn of customer deposits and the gap of £5.0bn is funded with wholesale borrowings. This is managed separately by Absa due to local currency and funding requirements. During 2011, Absa has issued additional senior unsecured debt to further extend its funding term and diversify its funding base, reducing its reliance on wholesale money market funding.

Given that, contractually, current accounts are repayable on demand and savings accounts at short notice, the balance sheet is modelled to reflect behavioural experience in both assets and liabilities. The maturity profile resulting from this behavioural modelling is set out below.

								Behavioural Maturity Profile Cash Inflow (Outflow)
Behavioural Maturity Profile	Loans and Advances to Customers £bn		Customer Deposits £bn		Customer Funding Surplus/ (Deficit) £bn			Less than One Year £bn			Greater than One Year £bn
RBB		231.6		158.7		(72.9	)		13.8			59.1
Barclays Corporate		64.6		77.7		13.1			(1.1	)		(12.0	)
Barclays Wealth		18.8		46.5		27.7			(4.0	)		(23.7	)
Total funding excluding secured		315.0		282.9		(32.1	)		8.7			23.4
Secured funding				28.7		28.7			(10.1	)		(18.6	)
Total RBB, Corporate and Wealth funding		315.0		311.6		(3.4	)		(1.4	)		4.8

The relatively low cash outflow within one year demonstrates that customer funding remains broadly matched from a behavioural perspective.

1 In addition Barclays Corporate holds £17.2bn (2010: £14.4bn) loans and advances as financial assets held at fair value.

Barclays PLC – 2011 Results 40

Funding Risk - Liquidity

Wholesale funding

Funding of Other Assets¹ as at 31 December 2011

Assets	£bn	Liabilities	£	bn
Trading portfolio assets	104	Repurchase agreements		207
Reverse repurchase agreements	103
Reverse repurchase agreements	45	Trading portfolio liabilities		45
Derivative financial instruments	536	Derivative financial instruments		525
Liquidity pool	152	Less than 1 year wholesale debt		130
Other unencumbered assets2	175	Greater than 1 year wholesale debt and equity		196

— Trading portfolio assets are largely funded by repurchase agreements. The majority of reverse repurchase agreements (i.e. secured lending) are matched by repurchase agreements. 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 liquidity pool is largely funded by wholesale debt maturing in less than one year, with a significant portion maturing in more than one year. Other unencumbered assets (mainly being available for sale investments, trading portfolio assets and loans and advances to banks) are largely matched by wholesale debt maturing over an average of 5 years and equity

— Repurchase agreements and other secured funding are largely collateralised by government issued bonds and other highly liquid securities. The percentage of secured funding using each asset class as collateral is set out below:

Secured Funding by Asset Class	Govt %		Agency %		MBS %		ABS %		Corporate %		Equity %		Other %
As at 31.12.11		66		6		9		3		7		7		2
As at 31.12.10		64		7		9		3		7		7		3

Composition of Wholesale Funding³

The Group maintains access to a variety of sources of wholesale funds in USD, EUR and GDP, including those available from money markets, repo markets and from term investors, across a variety of distribution channels and geographies. We are an active participant in money markets, have direct access to US, European and Asian capital markets through our global investment banking operations and long-term investors through our global client base. As a result, wholesale funding is well diversified by product, maturity, geography and major currency.

1 Excludes balances relating to Absa, which are managed separately due to local currency and funding requirements.

2 Predominantly unencumbered available for sale investments, trading portfolio assets, financial assets designated at fair value and loans and advances to banks funded by greater than one year wholesale debt and equity.

3 The composition of wholesale funds comprises balance sheet reported Deposits from Banks, Financial Liabilities at Fair Value, Debt Securities in Issue and Subordinated Liabilities, excluding cash collateral and settlement balances and Absa.

Barclays PLC – 2011 Results 41

Funding Risk - Liquidity

Maturity Profile

Maturity of Wholesale Funding	Not more than three months £bn		Over three months but not more than six months £bn		Over six months but not more than one year £bn		Sub-total less than one year £bn		Over one year but not more than three years £bn		Over three years £bn		Total £bn
Deposits from Banks		34.1		0.9		0.9		35.9		0.3		1.7		37.9
Certificates of Deposit and Commercial Paper		35.0		7.5		4.0		46.5		1.9		1.0		49.4
Asset Backed Commercial Paper		8.9		0.2		-		9.1		-		-		9.1
Senior unsecured MTNs (Public benchmark)		4.7		0.1		2.5		7.3		11.1		14.6		33.0
Senior unsecured MTNs (Privately placed)		3.1		1.6		3.4		8.1		6.5		11.7		26.3
Senior unsecured structured notes		3.2		2.1		3.9		9.2		12.4		28.0		49.6
Covered bonds/ABS		0.3		2.5		0.8		3.6		6.3		14.2		24.1
Subordinated liabilities		-		-		-		-		0.8		23.0		23.8
Other1		7.7		1.5		1.4		10.6		1.4		-		12.0
Total		97.0		16.4		16.9		130.3		40.7		94.2		265.2
Of which secured		10.9		3.9		2.1		16.9		6.9		14.9		38.7
Of which unsecured		86.1		12.5		14.8		113.4		33.8		79.3		226.5

— The above includes £27bn of maturing term financing²

— The liquidity risk is carefully managed primarily through the LRA stress tests, against which the liquidity pool is held. Although not a requirement, as at 31 December 2011, the liquidity pool was equivalent to more than one year of wholesale debt maturities

— As at 31 December 2011, approximately 10% of customer loans and advances were secured against external funding, leaving significant headroom and flexibility to raise secured funding

— Excluding wholesale funding of the liquidity pool, the average maturity of wholesale funding was at least 58 months

Term Financing

As outlined above, the Group has £27bn of term debt maturing in 2012 and a further £16bn maturing in 2013.

The Group continues to attract deposits in unsecured money markets and to raise additional secured and unsecured term funding in a variety of markets. During 2011, the Group issued approximately £30bn of term funding, comprising:

— £3.8bn equivalent of public benchmark senior unsecured medium term notes

— £5.0bn equivalent of privately placed senior unsecured medium term notes

— £10.1bn equivalent of senior unsecured structured notes

— £10.3bn equivalent of public covered bonds/ABS

— £1.0bn equivalent of public subordinated debt

This term funding raised during 2011 re-financed all wholesale term debt maturing in 2011, funded strategic balance sheet growth and further strengthened the Group’s term liquidity position. In January, £5bn of funding was raised.

1 Primarily comprised of Fair Value Deposits and secured financing of physical gold.

2 Term funding maturities are maturities of senior unsecured MTNs, structured notes, covered bonds/ABS and subordinated debt where the original maturity of the instrument was more than 1 year. In addition, as at 31 December, £1.2bn of these instruments were not term financing as they had an original maturity of less than 1 year.

Barclays PLC – 2011 Results 42

Funding Risk - Liquidity

Currency Profile

As at 31 December 2011, the proportion of wholesale debt held in each currency by wholesale funding type was as follows:

Currency Split by Product Type	USD %		EUR %		GBP %		Other %
Deposits from banks		36		27		27		10
CDs and CP		59		25		15		1
ABCP		85		8		7		-
Senior unsecured MTNs		26		40		13		21
Structured notes		35		21		22		22
Covered bonds/ABS		31		29		39		1
Subordinated debt		16		52		32		-
Wholesale debt		37		30		22		11
Currency composition of liquidity pool		27		42		17		14

— To manage cross-currency refinancing risk Barclays manages to FX cash-flow limits, which limit the risk at specific maturities

— The Group’s liquidity pool is also well diversified by major currency and the Group monitors the three LRA stress scenarios for major currencies

Barclays PLC – 2011 Results 43

Credit Risk

Analysis of Total Assets by Valuation Basis

			Accounting Basis				Sub Analysis
Assets as at 31.12.11	Total Assets £m		Cost Based Measure £m		Fair Value £m		Credit Market Exposures1 £m
Cash and balances at central banks		106,894		106,894		-		-
Items in the course of collection from other banks		1,812		1,812		-		-
Debt securities		123,364		-		123,364		1,681
Equity securities		24,861		-		24,861		-
Traded loans		1,374		-		1,374		-
Commodities2		2,584		-		2,584		-
Trading portfolio assets		152,183		-		152,183		1,681
Loans and advances		21,960		-		21,960		2,513
Debt securities		2,095		-		2,095		-
Equity securities		4,018		-		4,018		773
Other financial assets3		7,574		-		7,574		-
Held in respect of linked liabilities to customers under investment contracts		1,302		-		1,302		-
Financial assets designated at fair value		36,949		-		36,949		3,286
Derivative financial instruments		538,964		-		538,964		1,242
Loans and advances to banks		47,446		47,446		-		-
Loans and advances to customers		431,934		431,934		-		5,780
Reverse repurchase agreements and other similar secured lending		153,665		153,665		-		-
Debt securities		63,610		-		63,610		259
Equity securities		4,881		-		4,881		-
Available for sale financial investments		68,491		-		68,491		259
Other assets		25,189		22,261		2,928		2,733
Total assets as at 31.12.11		1,563,527		764,012		799,515		14,981
Total assets as at 31.12.10		1,489,645		792,294		697,351		23,625

1 Further analysis of Barclays Capital credit market exposures is on pages 62 to 63. Undrawn commitments of £180m (2010: £264m) are off-balance sheet and therefore not included in the table above.

2 Commodities primarily consist of physical inventory positions.

3 These instruments consist primarily of reverse repurchase agreements designated at fair value.

Barclays PLC – 2011 Results 44

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 Geography¹

As at 31.12.11	United Kingdom £m		Europe £m		Americas £m		Africa and Middle East £m		Asia £m		Total £m
Banks		9,251		13,503		13,349		2,956		5,648		44,707
Other financial institutions		18,474		20,059		44,965		2,264		3,888		89,650
Manufacturing		6,185		3,341		1,396		1,439		543		12,904
Construction		3,391		771		32		348		65		4,607
Property		16,230		3,193		869		3,600		212		24,104
Government		493		3,365		907		3,072		1,031		8,868
Energy and water		1,599		2,448		2,165		818		384		7,414
Wholesale and retail distribution and leisure		10,308		3,008		656		2,073		161		16,206
Business and other services		16,473		4,981		1,584		2,907		355		26,300
Home loans		112,260		38,508		566		19,437		501		171,272
Cards, unsecured loans and other personal lending		27,409		6,417		9,293		6,158		785		50,062
Other		8,363		5,554		1,312		7,471		586		23,286
Net loans and advances to customers and banks		230,436		105,148		77,094		52,543		14,159		479,380
Impairment allowance		4,005		2,920		2,128		1,446		98		10,597
As at 31.12.10
Banks		4,709		8,831		17,304		1,660		3,802		36,306
Other financial institutions		19,930		18,153		43,210		2,879		3,533		87,705
Manufacturing		6,660		4,793		904		1,543		866		14,766
Construction		3,607		1,259		34		909		54		5,863
Property		13,746		3,024		797		4,822		418		22,807
Government		534		1,219		354		3,648		546		6,301
Energy and water		2,183		3,617		2,426		520		485		9,231
Wholesale and retail distribution and leisure		11,594		2,859		644		1,888		372		17,357
Business and other services		15,171		6,142		1,198		3,394		323		26,228
Home loans		104,934		37,347		214		25,241		319		168,055
Cards, unsecured loans and other personal lending		25,950		7,768		7,340		4,297		1,313		46,668
Other		8,034		4,843		1,398		9,103		1,076		24,454
Net loans and advances to customers and banks		217,052		99,855		75,823		59,904		13,107		465,741
Impairment allowance		4,429		2,793		2,958		1,857		395		12,432

Within European financial institutions were loans (excluding settlement balances and cash collateral) to French and German counterparties of £3,199m (2010: £2,161m) and £1,474m (2010: £1,621m) respectively.

1 The analysis of loans and advances and impairment by geography has been aligned to the geographic regions used for reporting income presented on page 65.

Barclays PLC – 2011 Results 45

Credit Risk

Loans and Advances Held at Fair Value, by Industry Sector and Geography¹

As at 31.12.11	United Kingdom £m		Europe £m		Americas2 £m		Africa and Middle East £m		Asia £m		Total £m
Banks		11		364		10		126		1		512
Other financial institutions		142		76		892		134		21		1,265
Manufacturing		16		211		154		7		18		406
Construction		158		-		-		19		2		179
Property		8,443		1,147		575		133		3		10,301
Government		5,609		-		-		19		8		5,636
Energy and water		32		203		46		104		-		385
Wholesale and retail distribution and leisure		63		15		243		36		2		359
Business and other services		3,381		76		201		34		-		3,692
Other		90		66		55		317		71		599
Total		17,945		2,158		2,176		929		126		23,334
As at 31.12.10
Banks		49		766		5		193		52		1,065
Other financial institutions		90		230		439		252		49		1,060
Manufacturing		39		67		187		49		5		347
Construction		199		-		-		45		5		249
Property		7,003		2,793		1,858		43		237		11,934
Government		4,848		-		-		189		51		5,088
Energy and water		14		259		57		34		6		370
Wholesale and retail distribution and leisure		70		14		705		11		-		800
Business and other services		2,650		69		442		80		5		3,246
Other		103		114		76		69		1		363
Total		15,065		4,312		3,769		965		411		24,522

Impairment Allowance

	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
At beginning of period		12,432			10,796
Acquisitions and disposals		(18	)		78
Exchange and other adjustments		(440	)		331
Unwind of discount		(243	)		(213	)
Amounts written off		(5,165	)		(4,310	)
Recoveries		265			201
Amounts charged against profit		3,766			5,549
At end of period		10,597			12,432

1 The analysis of loans and advances and impairment by geography has been aligned to the geographic regions used for reporting income presented on page 65.

2 Exposures to financial institutions includes £693m (31 December 2010: £nil) of loans backed by retail mortgage collateral.

Barclays PLC – 2011 Results 46

Credit Risk

Credit and Other Impairment Charges by Business

Year Ended 31.12.11	Loan Impairment1 £m			Available for Sale Assets £m			Reverse Repurchase Agreements £m			Credit Impairment Total £m
UK RBB		536			-			-			536
Europe RBB		241			20			-			261
Africa RBB		464			-			-			464
Barclaycard		1,259			-			-			1,259
Barclays Capital2		129			12			(48	)		93
Barclays Corporate		1,122			27			-			1,149
Barclays Wealth		41			-			-			41
Investment Management		-			1,800			-			1,800
Head Office Functions and Other Operations		(2	)		1			-			(1	)
Total		3,790			1,860			(48	)		5,602
Year Ended 31.12.10
UK RBB		819			-			-			819
Europe RBB		314			-			-			314
Africa RBB		562			-			-			562
Barclaycard		1,688			-			-			1,688
Barclays Capital2		642			(95	)		(4	)		543
Barclays Corporate		1,551			145			-			1,696
Barclays Wealth		48			-			-			48
Investment Management		-			-			-			-
Head Office Functions and Other Operations		1			1			-			2
Total		5,625			51			(4	)		5,672

— Loan Impairment charges reduced 33% reflecting the generally improving underlying trends across the majority of retail and wholesale businesses

— This lower impairment and a 2% increase in loans and advances resulted in a lower overall Group loan loss rate of 77bps (2010: 118bps)

— The higher impairment charge against available for sale assets was driven by a charge of £1,800m in Investment Management reflecting the impairment of the investment in BlackRock, Inc., which has been recycled through the income statement, having been previously recognised in equity

— Further detail can be found in the Retail Credit Risk and Wholesale Credit Risk sections on pages 50 and 55

1 Includes charges of £24m (2010: £76m) in respect of undrawn facilities and guarantees.

2 Credit market related charges within Barclays Capital comprised a write back of £14m (2010: £660m charge) against loans and advances and a write back of £35m (2010: £39m write back) against available for sale assets.

Barclays PLC – 2011 Results 47

Credit Risk

Credit Risk Loans and Coverage Ratios

	CRLs				Impairment Allowance				CRL Coverage
	As at 31.12.11 £m		As at 31.12.10 £m		As at 31.12.11 £m		As at 31.12.10 £m		As at 31.12.11 %		As at 31.12.10 %
Home loans		3,790		4,294		834		854		22.0		19.9
Cards, unsecured and other retail lending		6,626		8,277		4,540		6,029		68.5		72.8
Retail		10,416		12,571		5,374		6,883		51.6		54.8
Wholesale (excluding loan to Protium)1		10,926		11,751		5,223		5,017		47.8		42.7
Loan to Protium1		-		7,560		-		532		-		7.0
Wholesale		10,926		19,311		5,223		5,549		47.8		28.7
Group (excluding loan to Protium)		21,342		24,322		10,597		11,900		49.7		48.9
Group		21,342		31,882		10,597		12,432		49.7		39.0

The information below is based on Group (excluding loan to Protium) as the Protium loan was repaid in 2011. This facilitates comparison between periods.

Credit Risk Loans

— Credit Risk Loans (CRL) balances in the wholesale portfolio decreased 7% primarily due to falls in:

– Barclays Corporate, where lower balances in the UK reflected the high level of write-offs and balance reductions. Balances in Europe remained stable with higher balances in Portugal and Italy reflecting deteriorating credit conditions offset by lower balances in Spain

– Africa RBB, principally due to the depreciation in the value of the Rand against Sterling, repayments and a slowdown in new CRLs

— CRL balances in retail portfolios decreased 17%, reflecting the write-off of balances following a reduction in the period between accounting charge-off and write-off from 18 months to 12 months across the majority of unsecured portfolios, as well as lower rate of inflows, debt sales and customer repayments

— The main exception was Europe RBB where the overall balance was largely unchanged as decreases in Spain, principally resulting from a series of unsecured portfolio sales in 2011, were offset by increases, mainly in the mortgage portfolios as a consequence of higher delinquent balances in deteriorating economic conditions

Coverage Ratios

— The CRL coverage ratio increased slightly to 49.7% (2010: 48.9%) reflecting:

– an increase in the wholesale portfolio ratio to 47.8% (2010: 42.7%)

– a decrease in the retail portfolio ratio to 51.6% (2010: 54.8%)

1 As at 31 December 2010, wholesale gross loans and advances included a £7,560m loan to Protium, against which an impairment of £532m was recognised. In April 2011, Barclays entered into several agreements to acquire all third party interests in Protium in order to help facilitate the Group’s early exit from the underlying exposures. As a result, Protium was consolidated by the Group and the loan eliminated from the Group balance sheet. Refer to page 63 for further information.

Barclays PLC – 2011 Results 48

Credit Risk

Retail and Wholesale Loans and Advances to Customers and Banks

As at 31.12.11	Gross L&A £m		Impairment Allowance £m		L&A Net of Impairment £m		Credit Risk Loans1 £m		CRLs % of Gross L&A1 %		Loan Impairment Charges2 £m			Loan Loss Rates bps
Total retail		241,138		5,374		235,764		10,416		4.3		2,422			100
Wholesale - customers		201,348		5,178		196,170		10,892		5.4		1,362			68
Wholesale - banks		47,491		45		47,446		34		0.1		6			1
Total wholesale		248,839		5,223		243,616		10,926		4.4		1,368			55
Loans and advances at amortised cost		489,977		10,597		479,380		21,342		4.4		3,790			77
Loans and advances held at fair value		23,334		na		23,334
Total loans and advances		513,311		10,597		502,714
As at 31.12.10
Total retail		235,335		6,883		228,452		12,571		5.3		3,296			140
Wholesale - customers		204,991		5,501		199,490		11,716		5.7		2,347			114
Wholesale - banks		37,847		48		37,799		35		0.1		(18	)		(5	)
Total wholesale		242,838		5,549		237,289		11,751		4.8		2,329			96
Loans and advances at amortised cost		478,173		12,432		465,741		24,322		5.1		5,625			118
Loans and advances held at fair value		24,522		na		24,522
Total loans and advances		502,695		12,432		490,263

— Gross loans and advances to customers and banks at amortised cost increased 2% principally reflecting growth in balances across the majority of the wholesale and retail businesses

— Further detail can be found in the Retail Credit Risk and the Wholesale Credit Risk sections on pages 50 and 55

1 31 December 2010 excludes from credit risk loans (CRLs) the loan to Protium of £7,560m against which an impairment of £532m was held. See page 63 for further information.

2 Loan impairment charges, comprising impairment on loans and advances and charges in respect of undrawn facilities and guarantees, see page 47.

Barclays PLC – 2011 Results 49

Credit Risk

Retail Credit Risk

Retail Loans and Advances at Amortised Cost

As at 31.12.11	Gross L&A £m		Impairment Allowance £m		L&A Net of Impairment £m		Credit Risk Loans £m		CRLs % of Gross L&A %		Loan Impairment Charges £m		Loan Loss Rates bps
UK RBB		120,312		1,623		118,689		3,014		2.5		491		41
Europe RBB1		44,488		684		43,804		1,708		3.8		241		54
Africa RBB		26,363		731		25,632		2,362		9.0		386		146
Barclaycard		31,738		2,069		29,669		2,821		8.9		1,232		388
Barclays Corporate2		1,453		188		1,265		182		12.5		49		337
Barclays Wealth		16,784		79		16,705		329		2.0		23		14
Total		241,138		5,374		235,764		10,416		4.3		2,422		100
As at 31.12.10
UK RBB		113,800		1,737		112,063		3,166		2.8		739		65
Europe RBB1		44,500		833		43,667		1,729		3.9		314		71
Africa RBB		32,499		1,002		31,497		3,367		10.4		439		135
Barclaycard		29,281		2,981		26,300		3,678		12.6		1,668		570
Barclays Corporate2		1,671		255		1,416		301		18.0		115		688
Barclays Wealth		13,584		75		13,509		330		2.4		21		15
Total		235,335		6,883		228,452		12,571		5.3		3,296		140

— Gross loans and advances to customers in the retail portfolios increased 2% reflecting higher balances in:

– UK RBB, where a 6% increase primarily reflected growth in mortgage balances

– Barclaycard, where an 8% increase was mainly due to the acquisition of credit card portfolios in 2011, partially offset by balance run-offs in FirstPlus

– Barclays Wealth, where a 24% increase reflected growth in collateralised lending to High Net Worth individuals

– This was partially offset by a 19% decrease in Africa RBB primarily due to the depreciation in the value of the Rand against Sterling and lower originations in South Africa Home Loans

– Balances in Europe RBB remained broadly stable as growth in Italian Home Loans was offset by lower balances in Spain as new mortgage business reduced

— The loan impairment charge reduced 27% as a result of lower charges across all businesses, principally:

– Barclaycard, as a result of reduced delinquency rates and customer balance repayments, principally in the US

– UK RBB, mainly reflecting the low interest rate environment, low arrears rates and lower flows in collections in UK personal loans

– Africa RBB, mainly reflecting improved economic conditions in South Africa and better recoveries across the continent

— Lower impairment charges coupled with higher loan balances led to a fall in the retail loan loss rate to 100bps (2010: 140bps)

1 Europe RBB includes loans and advances to business customers at amortised cost.

2 Barclays Corporate primarily includes retail portfolios in India and UAE. For 2010 it also included retail portfolios in Russia which were sold in 2011.

Barclays PLC – 2011 Results 50

Credit Risk

Analysis of Retail Gross Loans & Advances to Customers

As at 31.12.11	Secured Home Loans £m		Credit Cards, Overdrafts and Unsecured Loans £m		Other Secured Retail Lending1 £m		Business Lending £m		Total Retail £m
UK RBB		107,775		7,351		-		5,186		120,312
Europe RBB		37,099		4,994		-		2,395		44,488
Africa RBB		19,691		2,715		3,405		552		26,363
Barclaycard		-		28,557		3,181		-		31,738
Barclays Corporate		421		728		284		20		1,453
Barclays Wealth		7,120		1,860		7,804		-		16,784
Total		172,106		46,205		14,674		8,153		241,138
As at 31.12.10
UK RBB		101,281		8,375		-		4,144		113,800
Europe RBB		36,509		5,670		-		2,321		44,500
Africa RBB		24,743		3,058		4,186		512		32,499
Barclaycard		-		25,472		3,809		-		29,281
Barclays Corporate		398		1,016		225		32		1,671
Barclays Wealth		5,915		2,108		5,561		-		13,584
Total		168,846		45,699		13,781		7,009		235,335

Secured Home Loans

— Total Home Loans to retail customers increased 2% as lending was increased to meet customer demand, whilst maintaining a broadly stable lending criteria

— Home Loans as a proportion of retail gross loans and advances remained broadly unchanged at 71%

— The principal Home Loan portfolios listed below account for 93% of total Home Loans in the Group’s retail portfolios

Home Loans Principal Portfolios²

As at 31.12.11	Gross Loans and                     Advances £m		> 90 Day                          Arrears %		Gross                     Charge-off Rates %		Recoveries Proportion of Outstanding Balances %		Recoveries Impairment             Coverage Ratio %
UK		107,775		0.3		0.6		0.6		15.3
South Africa3		17,585		3.2		3.7		6.9		19.4
Spain		14,918		0.5		0.6		1.6		32.5
Italy		15,935		1.0		0.5		1.3		29.3
Portugal		3,891		0.6		1.1		2.0		15.0
As at 31.12.10
UK		101,281		0.3		0.5		0.7		8.6
South Africa3		22,575		3.9		3.5		6.7		23.0
Spain		16,264		0.4		0.7		1.6		32.0
Italy		13,809		0.8		0.6		1.2		29.0
Portugal		3,713		0.4		0.7		1.5		12.6

1 Other Secured Retail Lending includes Absa Vehicle and Auto Finance in Africa RBB, FirstPlus in Barclaycard and Investment Leverage portfolio in Barclays Wealth.

2 Excluded from the above analysis are: Wealth Home Loans, which are managed on the basis of individual customer exposures, France Home Loans and other small Home Loans portfolios.

3 South Africa Home Loans recoveries impairment coverage ratio has been revised to exclude interest and fees in suspense.

Barclays PLC – 2011 Results 51

Credit Risk

— Arrears rates remained stable in the UK as targeted balance growth and better customer affordability criteria continued to be supported by the low base rate environment

— Arrears rates for South Africa Home Loans decreased but gross charge-off rates increased as contracts in debt counselling were terminated and legal actions were commenced which resulted in an increase in the recoveries book

— The fall in recoveries impairment coverage ratio for South Africa Home Loans reflected, in part, the impact of a revised Loss Given Default (LGD) model implementation in the second half of 2011. The lower LGD reflected higher levels of cash collected in the recoveries portfolio

— Arrears rates in Spain remained broadly stable, but increased in Portugal and Italy due to the deterioration in economic conditions including the impact of austerity measures

Principal Home Loan Portfolios - Distribution of Balances by LTV (Updated Valuations)¹

	UK				Spain2				South Africa				Italy				Portugal2
	31.12.11 %		31.12.10 %		31.12.11 %		31.12.10 %		31.12.11 %		31.12.10 %		31.12.11 %		31.12.10 %		31.12.11 %		31.12.10 %
<=75%		77.6		78.5		72.1		75.7		58.8		56.1		70.7		72.3		49.0		51.0
>75% and <=80%		7.5		6.8		6.6		6.6		8.7		8.1		16.8		16.8		11.4		12.5
>80% and <=85%		5.3		4.8		5.7		5.5		8.3		8.5		10.2		8.6		13.7		11.8
>85% and <=90%		3.6		3.6		4.0		3.2		7.2		7.9		1.3		1.3		9.4		10.5
>90% and <=95%		2.4		2.6		2.6		2.3		5.3		6.6		0.5		0.4		8.8		8.9
>95%		3.6		3.7		9.0		6.7		11.7		12.8		0.5		0.6		7.7		5.3
Marked to market LTV3		44.3		42.6		60.1		57.5		45.2		45.0		46.9		45.3		69.6		68.0
Average LTV on new mortgages		54.0		51.6		61.3		61.1		61.2		61.0		59.6		59.0		67.7		69.0
New mortgages proportion above 85% LTV		0.8		0.5		1.3		0.7		29.9		29.8		-		-		5.5		12.2
New mortgages (£m)		17,202		16,875		502		1,963		1,381		1,593		3,719		3,544		495		633

— The risk profile on the principal home loan portfolios is reflected by the moderate average Loan to Value (LTV) of the existing portfolios and range of LTVs of new mortgage lending

— Although period end marked to market LTVs have increased marginally across all principal Home Loan portfolios compared to December 2010, the portfolios continue to remain well secured. The increase in average LTV for new mortgage business in the UK was driven by more tailored lending criteria which allowed for additional business to be written at higher LTVs within the existing underwriting criteria. Any increase to impairment from the change in risk profile is factored into impairment models

— In the UK, buy to let mortgages comprised 6% of the total stock (2010: 6%)

— The average LTV on new mortgages for Spain remained stable and was within the Group approved risk profile. New lending has primarily been driven by new mortgages for house purchase rather than remortgages, for which the demand contracted significantly

1 Excluded from the above analysis are: Wealth Home Loans, which are managed on the basis of individual customer exposures, France Home Loans and other small Home Loans portfolios.

2 Spain and Portugal marked to market methodology based on balance weighted approach.

3 Portfolio marked to market based on current valuations, including recoveries balances.

Barclays PLC – 2011 Results 52

Credit Risk

Credit Cards, Overdrafts and Unsecured Loans

— The principal portfolios listed below account for 79% of total Credit Cards, Overdrafts and Unsecured Loans in the Group’s retail portfolios

Principal Portfolios As at 31.12.11	Gross Loans and Advances £m		30 Day Arrears %		90 Day Arrears %		Gross Charge-off Rates %		Recoveries Proportion of Outstanding Balances %		Recoveries Impairment Coverage Ratio %
UK cards1		13,162		2.7		1.2		6.0		5.1		85.2
US cards2		8,303		3.1		1.5		7.6		3.5		92.1
UK personal loans3		5,166		3.4		1.7		6.5		19.0		82.8
Barclays Partner Finance		2,122		2.4		1.3		4.6		6.3		84.8
South Africa cards4		1,816		4.9		2.7		5.5		6.7		72.9
Europe RBB cards5		1,684		5.9		2.6		10.1		13.8		89.5
Italy salary advance loans6		1,629		2.6		1.3		6.3		6.6		11.7
South Africa personal loans		1,164		6.4		3.9		8.3		6.9		72.4
UK overdrafts		1,322		6.0		3.9		9.7		17.5		90.6
As at 31.12.10
UK cards		12,297		3.4		1.5		8.4		9.1		83.9
US cards		7,453		4.6		2.5		12.2		8.1		93.8
UK personal loans3		5,756		4.7		2.6		7.9		18.5		82.5
Barclays Partner Finance		2,143		2.8		1.3		6.8		8.3		94.1
South Africa cards4		2,113		7.2		4.7		7.2		8.7		80.4
Europe RBB cards5		1,814		6.8		3.2		13.1		18.2		91.4
Italy salary advance loans6		1,609		2.9		1.0		7.3		5.0		7.5
South Africa personal loans		1,435		6.6		4.5		8.4		5.3		79.0
UK overdrafts		1,430		7.2		4.9		10.9		18.2		92.9

— Total Credit Cards, Overdrafts and Unsecured Loans increased 1% primarily due to increased lending in UK Cards and the acquisitions of credit card portfolios in 2011

— 30 day arrears rates reduced in 2011 in all the principal portfolios, with 90 day arrears rates reducing in all portfolios except Italy salary advance loans

— 90 day arrears reduced to 1.2% (2010: 1.5%) in UK Cards and to 1.5% (2010: 2.5%) in US Cards, reflecting better, although still subdued, economic conditions during 2011, the impact of customer loan repayments and a continued revision of the credit approval policy in Barclaycard

1 UK Cards excludes £1.5bn relating to Egg credit card assets, which were recognised on acquisition at fair value (with no related impairment allowance). An impairment allowance of £20m is held on Egg balances post acquisition.

2 Risk metrics exclude the impact of the $1.4bn Upromise portfolio acquired in December 2011.

3 Gross Loans and Advances for UK personal loans as at 31 December 2010 have been revised to exclude £740m of UK smaller specialist loans as they are no longer considered to be a principal portfolio.

4 South Africa cards 30 and 90 days arrears revised to include approved debt counselling accounts.

5 Europe RBB cards includes Spain, Portugal and Italy card assets.

6 The recoveries impairment coverage ratio for Italy salary advance loans is lower than other unsecured portfolios as these loans are extended to customers where the repayment is made via a salary deduction at source by qualifying employers and Barclays is insured in the event of termination of employment or death. Recoveries represent balances where insurance claims are pending that we believe are largely recoverable, hence the lower coverage.

Barclays PLC – 2011 Results 53

Credit Risk

Retail Forbearance Programmes

— Forbearance on the Group’s principal portfolios in US, UK and Europe are presented below. Additional portfolios will be added to this disclosure should the forbearance in respect of such portfolios become material

— The level of forbearance extended to customers in other retail portfolios is not material and, typically, does not currently play a significant part in the way customer relationships are managed

Principal Portfolios As at 31.12.11	Gross L&A Subject to Forbearance Programmes £m		Forbearance Proportion of Outstanding Balances %		Impairment Coverage on Gross L&A Subject to Forbearance %		Marked to Market LTV of Home Loan Forbearance Balances %
Home Loans
UK		1,613		1.5		0.8		31.6
Spain		145		1.0		3.7		67.4
Italy		171		1.1		2.6		46.5
Credit Cards, Overdrafts and Unsecured Loans
UK cards1		946		7.1		38.2		na
UK personal loans		201		3.8		28.2		na
US cards		125		1.7		19.7		na
As at 31.12.10
Home Loans
UK		1,446		1.4		0.9		31.8
Spain		151		1.0		0.8		61.6
Italy		186		1.4		0.6		47.4
Credit Cards, Overdrafts and Unsecured Loans
UK cards2		908		7.2		30.6		na
UK personal loans		215		3.7		31.7		na
US cards		150		2.1		18.4		na

— Retail forbearance is available to customers experiencing financial difficulties. Forbearance solutions take a number of forms depending on individual customer circumstances. Short term solutions focus on temporary reductions to contractual payments and may change from capital and interest payments to interest only. For customers with longer term financial difficulties, term extensions may be offered, which may also include interest rate concessions

— Forbearance in principal Home Loans portfolios increased 8% to £1,929m (2010: £1,783m), principally in the UK

— Within UK Home loans, term extensions accounted for the majority of forbearance balances. Since January 2008 an additional £1.5bn of interest only mortgages have received a term extension, which have not been classified as forbearance as they were interest only mortgages and the contractual monthly payments did not alter

— In Spain, forbearance accounts are usually full account restructures. In Italy, the majority of balances relate to specific schemes required by the Government (e.g. debt relief scheme following the earthquake of 2009) and are weighted towards payment holidays and interest suspensions

— Forbearance in principal Credit Cards, Overdrafts and Unsecured Loans portfolios remains stable at £1,272m (2010: £1,273m)

— Impairment allowances against UK cards forbearance increased to reflect revised expectations on debt repayment. As a result, the impairment coverage ratio increased to 38.2% (2010: 30.6%)

1 UK Cards excludes £43m relating to credit card assets acquired from Egg UK, which were recognised on acquisition at fair value (with no related impairment allowance).

2 UK cards revised to include partnership card assets.

Barclays PLC – 2011 Results 54

Credit Risk

Wholesale Credit Risk

Wholesale Loans and Advances at Amortised Cost¹

As at 31.12.11	Gross L&A £m		Impairment Allowance £m		L&A Net of Impairment £m		Credit Risk Loans £m		CRLs % of Gross L&A %		Loan Impairment Charges £m			Loan Loss Rates bps
UK RBB		2,743		63		2,680		285		10.4		45			164
Africa RBB		11,998		298		11,700		723		6.0		78			65
Barclaycard2		476		8		468		3		0.6		27			567
Barclays Capital3,4		161,194		2,555		158,639		5,253		3.3		129			8
Barclays Corporate		67,999		2,231		65,768		4,309		6.3		1,073			158
- UK		53,668		545		53,123		1,267		2.4		345			64
- Europe		12,576		1,574		11,002		2,876		22.9		699			556
- Rest of World		1,755		112		1,643		166		9.5		29			165
Barclays Wealth		2,471		51		2,420		317		12.8		18			73
Head Office		1,958		17		1,941		36		1.8		(2	)		nm
Total		248,839		5,223		243,616		10,926		4.4		1,368			55
As at 31.12.10
UK RBB		3,889		77		3,812		345		8.9		80			206
Africa RBB		14,644		362		14,282		1,154		7.9		123			84
Barclaycard2		338		5		333		7		2.1		20			592
Barclays Capital3,4		152,711		3,036		149,675		5,370		3.5		642			42
Barclays Corporate		66,961		1,986		64,975		4,591		6.9		1,436			214
- UK		50,599		539		50,060		1,503		3.0		447			88
- Europe		14,094		1,333		12,761		2,935		20.8		940			667
- Rest of World		2,268		114		2,154		153		6.7		49			216
Barclays Wealth		2,884		66		2,818		218		7.6		27			94
Head Office		1,411		17		1,394		66		4.7		1			7
Total		242,838		5,549		237,289		11,751		4.8		2,329			96

— Gross loans and advances to customers and banks increased 2% principally as a result of a rise of 6% in Barclays Capital. For more detail, see analysis of Barclays Capital wholesale loans and advances on page 56

— This was partially offset by a 18% decrease in balances in Africa RBB primarily due to the depreciation in the value of the Rand against Sterling and from lower demand

— The loan impairment charge improved 41% principally reflecting lower charges in:

– Barclays Capital, mainly as a result of charges in leveraged finance being partially offset by a release of £223m relating to the loan to Protium which has now been repaid

– Barclays Corporate, due to lower credit impairment charges in Spain reflecting lower exposure to the property and construction sector. Charges also reduced in the UK business, reflecting lower default rates and tightly controlled exposure to commercial real estate loans. However, weak credit conditions in Portugal led to a higher charge in 2011

— The substantial reduction in the impairment charge and higher loan balances led to a lower wholesale loan loss rate of 55bps in 2011 (2010: 96bps)

1 Loans and advances to business customers in Europe RBB are included in the Retail Loans and Advances to Customers at Amortised Cost table on page 50.

2 Barclaycard wholesale loans and advances represent corporate credit and charge cards.

3 Barclays Capital gross loans and advances includes cash collateral and settlement balances of £75,707m as at 31 December 2011 and £56,486m as at 31 December 2010. Excluding these balances CRLs as a proportion of gross loans and advances were 6.1% and 5.6% respectively.

4 Barclays Capital credit risk loans exclude the loan to Protium of £7,560m held as at 31 December 2010.

Barclays PLC – 2011 Results 55

Credit Risk

Analysis of Barclays Capital Wholesale Loans and Advances at Amortised Cost

As at 31.12.11 Loans and advances to banks	Gross L&A £m		Impairment Allowance £m		L&A Net of Impairment £m		Credit Risk Loans1 £m		CRLs % of Gross L&A1 %		Loan Impairment Charges £m			Loan Loss Rates bps
Interbank lending		19,655		45		19,610		34		0.2		(5	)		(3	)
Cash collateral and settlement balances		23,066		-		23,066		-		-		-			-
Loans and advances to customers
Corporate lending		38,326		730		37,596		1,515		4.0		194			51
Government lending		3,276		-		3,276		-		-		-			-
ABS CDO Super Senior		3,390		1,548		1,842		3,390		100.0		6			18
Other wholesale lending		20,840		232		20,608		314		1.5		(66	)		(32	)
Cash collateral and settlement balances		52,641		-		52,641		-		-		-			-
Total		161,194		2,555		158,639		5,253		3.3		129			8
As at 31.12.10 Loans and advances to banks
Interbank lending		21,547		48		21,499		35		0.2		(18	)		(8	)
Cash collateral and settlement balances		14,058		-		14,058		-		-		-			-
Loans and advances to customers
Corporate lending		41,891		798		41,093		1,483		3.5		285			68
Government lending		2,940		-		2,940		-		-		-			-
ABS CDO Super Senior		3,537		1,545		1,992		3,537		100.0		(137	)		(387	)
Other wholesale lending		26,310		645		25,665		315		1.2		512			195
Cash collateral and settlement balances		42,428		-		42,428		-		-		-			-
Total		152,711		3,036		149,675		5,370		3.5		642			42

— Barclays Capital wholesale loans and advances increased 6% to £161,194m (2010: £152,711m). This was driven by an increase in cash collateral balances partially offset by the acquisition of Protium and a reduction in corporate lending

— Included within corporate lending and other wholesale lending portfolios are £3,204m (2010: £3,787m) of loans backed by retail mortgage collateral classified as lending to financial institutions

Wholesale Forbearance

— Whilst there are no standardised wholesale forbearance programmes, as part of the ongoing provision of lending facilities to corporates and businesses, credit terms are reviewed and may be revised where this is the optimum strategy for the performance of our customers’ businesses and therefore Barclays loans and advances

— Wholesale client relationships are individually managed with lending decisions made with reference to specific circumstances and on bespoke terms. As changes in original terms are made for a variety of reasons and in a variety of ways including those not related to the customer’s ability to repay a loan, comprehensive data is not currently compiled to quantify the lending where changes in original terms have been agreed as a result of forbearance

— Impairment is assessed for each individual counterparty and recognised where relevant impairment triggers have been reached, including where customers are in arrears and require renegotiation of terms

— A control framework exists along with regular sampling to ensure watch list and impairment policies are implemented as defined and to ensure that all assets have suitable levels of impairment applied. Portfolios are subject to independent assessment

1 Barclays Capital Credit Risk Loans as at 31 December 2010 exclude the loan to Protium. Other wholesale lending CRLs and CRLs of Gross L&A including the loan to Protium were £7,875m and 29.9% respectively.

Barclays PLC – 2011 Results 56

Credit Risk

Group Exposures to Selected Eurozone Countries

— The Group continues to closely monitor its exposure to Eurozone countries. During 2011 the Group’s sovereign exposure to Spain, Italy, Portugal, Ireland and Greece reduced by 14% to £7.1bn

– Spanish sovereign exposure reduced 45% to £2.5bn due to the disposal of available for sale government bonds, held for the purpose of interest rate hedging and liquidity, that have been replaced by interest rate swaps with alternative counterparties

– Italian sovereign exposure increased 57% to £3.5bn principally due to the acquisition of government issued bonds reflecting improved yields and holdings as part of the Treasury liquidity management portfolio

– Portuguese sovereign exposure reduced 21% to £0.8bn, principally due to a reduction in government bonds held as available for sale

— Italian non-sovereign exposures increased £1.1bn to £21.9bn, principally due to a £2.2bn increase in new mortgage lending (with an average LTV of 59.6%), offset by £0.9bn reduction in exposures to financial institutions

— Ireland exposures increased 5% to £5.7bn, principally reflecting increased lending to financial institutions of £4.3bn (31 December 2010: £3.8bn), including £0.9bn of trading assets and £1.3bn of loans to entities domiciled in Ireland whose principal business and exposures are outside of Ireland. Exposure to domestic Irish banks remains minimal

— Exposure to Greece remains minimal and the sovereign exposure is predominantly marked to market on a daily basis through income

— In addition to these countries subject to particular market focus, the Group had £2.4bn (2010: £2.2bn) net exposure to Belgium, which was downgraded to AA during the fourth quarter of 2011. This principally comprised sovereign debt, of which £1.7bn was held as available for sale, with a negative AFS reserve of £26m, and £0.3bn held for trading

Basis of preparation

— The following tables are prepared on the same basis as the 2011 Interim Results Announcement and present the maximum direct balance sheet exposure to credit risk by country, with the totals reflecting allowance for impairment, netting and cash collateral held where appropriate

— Trading and derivatives balances relate to investment banking activities, principally as market-maker for government bond positions. Positions are held at fair value, with daily movements taken through profit and loss

— Available for sale assets are principally investments in government bonds and other debt securities held for the purposes of interest rate hedging and liquidity for local banking activities. Balances are reported on a fair value basis, with movements in fair value going through equity

— Loans and advances held at amortised cost comprise: (i) retail lending portfolios, predominantly mortgages secured on residential property; and (ii) corporate lending portfolios, largely reflecting established corporate banking businesses in Spain, Italy and Portugal and investment banking services provided to multinational and large national corporate clients. Settlement balances and cash collateral are excluded from this analysis

— Sovereign exposures reflect direct exposures to central and local governments¹, the majority of which are used for hedging interest rate risk relating to local activities. These positions are being actively replaced by non-government instruments such as interest rate swaps. The remaining portion is actively managed reflecting our role as leading primary dealer, market maker and liquidity provider to our clients

— Financial institution and corporate exposures reflect the country of operations of the counterparty (including foreign subsidiaries and without reference to cross-border guarantees)

— Retail exposures reflect the country of residence of retail customers

— The Group enters into credit mitigation arrangements for which the reference asset is government debt. The selected countries (pages 58 to 61) include only credit mitigation arrangements with counterparties in the relevant country. The analysis of credit derivatives referencing sovereign debt reflects derivative counterparty netting and includes all credit derivatives, regardless of counterparty location

1 In addition, the Group held cash with the central banks of these countries totalling £0.8bn as at 31 December 2011. Other immaterial balances with central banks are classified within loans to financial institutions.

Barclays PLC – 2011 Results 57

Credit Risk

Exposure by Country and Counterparty

As at 31.12.11	Spain £m		Italy £m		Portugal £m		Ireland £m		Greece £m
Sovereign		2,530		3,493		810		244		14
Financial institutions		987		669		51		4,311		2
Residential mortgages		14,654		15,934		3,651		94		5
Corporate		5,345		2,918		3,295		977		67
Other retail lending		3,031		2,335		2,053		86		18
Total		26,547		25,349		9,860		5,712		106
As at 31.12.10	Spain £m		Italy £m		Portugal £m		Ireland £m		Greece £m
Sovereign		4,641		2,224		1,023		296		31
Financial institutions		1,586		1,572		165		3,769		21
Residential mortgages		15,977		13,741		3,476		109		4
Corporate		6,398		2,828		3,598		1,123		103
Other retail lending		3,081		2,599		2,074		125		19
Total		31,683		22,964		10,336		5,422		178

Exposures on loans and advances to other geographies including Europe as a whole are set out on page 45.

Spain

	Trading Portfolio							Derivatives
Fair Value through Profit and Loss	Trading Portfolio Assets £m		Trading Portfolio Liabilities £m			Net Trading Portfolio £m		Gross Assets £m		Gross Liabilities £m			Cash Collateral £m			Net Derivatives £m			Designated as FV through P&L £m		Total as at 31.12.11 £m		Total as at 31.12.10 £m
Sovereign		684		(684	)		-		64		(64	)		-			-			-		-		-
Financial institutions		367		(247	)		120		7,359		(7,023	)		(336	)		-			101		221		422
Corporate		167		(155	)		12		656		(251	)		-			405			212		629		356
																							Total
									Available for Sale Assets as at 31.12.11															as at
Fair Value through Equity										Cost1 £m						AFS Reserve £m					Total £m		31.12.10 £m
Sovereign											2,519						(51	)				2,468		4,491
Financial institutions											507						(17	)				490		669
Corporate											2						-					2		36
																							Total
									Loans and Advances as at 31.12.11															as at
Held at Amortised Cost										Gross £m			Impairment Allowances £m								Total £m		31.12.10 £m
Sovereign											62						-					62		150
Financial institutions											282						(6	)				276		495
Residential mortgages											14,729						(75	)				14,654		15,977
Corporate											5,901						(1,187	)				4,714		6,006
Other retail lending											3,144						(113	)				3,031		3,081

1 ‘Cost’ refers to the fair value of the asset at recognition, less any impairment booked. ‘AFS Reserve’ is the cumulative fair value gain or loss on the assets that is held in equity. ‘Total’ is the fair value of the assets at the balance sheet date.

Barclays PLC – 2011 Results 58

Credit Risk

Italy

	Trading Portfolio							Derivatives
Fair Value through Profit and Loss	Trading Portfolio Assets £m		Trading Portfolio Liabilities £m			Net Trading Portfolio £m		Gross Assets £m		Gross Liabilities £m			Cash Collateral £m			Net Derivatives £m			Designated as FV through P&L £m		Total as at 31.12.11 £m		Total as at 31.12.10 £m
Sovereign		2,097		(1,531	)		566		1,083		(506	)		-			577			1		1,144		1,004
Financial institutions		429		(142	)		287		6,224		(4,791	)		(1,319	)		114			55		456		794
Corporate		134		(134	)		-		502		(325	)		(92	)		85			86		171		93
																							Total
									Available for Sale Assets as at 31.12.11															as at
Fair Value through Equity										Cost1 £m						AFS Reserve £m					Total £m		31.12.10 £m
Sovereign											2,457						(123	)				2,334		1,220
Financial institutions											141						(3	)				138		226
Corporate											28						(1	)				27		19
																							Total
									Loans and Advances as at 31.12.11															as at
Held at Amortised Cost										Gross £m			Impairment Allowances £m								Total £m		31.12.10 £m
Sovereign											15						-					15		-
Financial institutions											83						(8	)				75		552
Residential mortgages											16,023						(89	)				15,934		13,741
Corporate											2,850						(130	)				2,720		2,716
Other retail lending											2,515						(180	)				2,335		2,599
Portugal
	Trading Portfolio							Derivatives
Fair Value through Profit and Loss	Trading Portfolio Assets £m		Trading Portfolio Liabilities £m			Net Trading Portfolio £m		Gross Assets £m		Gross Liabilities £m			Cash Collateral £m			Net Derivatives £m			Designated as FV through P&L £m		Total as at 31.12.11 £m		Total as at 31.12.10 £m
Sovereign		143		(76	)		67		216		(216	)		-			-			2		69		121
Financial institutions		24		(13	)		11		336		(336	)		-			-			-		11		106
Corporate		129		(21	)		108		445		(223	)		(2	)		220			-		328		63
																							Total
									Available for Sale Assets as at 31.12.11															as at
Fair Value through Equity										Cost1 £m						AFS Reserve £m					Total £m		31.12.10 £m
Sovereign											875						(159	)				716		886
Financial institutions											2						-					2		9
Corporate											675						2					677		896
																							Total
									Loans and Advances as at 31.12.11															as at
Held at Amortised Cost										Gross £m			Impairment Allowances £m								Total £m		31.12.10 £m
Sovereign											25						-					25		16
Financial institutions											38						-					38		50
Residential mortgages											3,665						(14	)				3,651		3,476
Corporate											2,484						(194	)				2,290		2,639
Other retail lending											2,252						(199	)				2,053		2,074

1 ‘Cost’ refers to the fair value of the asset at recognition, less any impairment booked. ‘AFS Reserve’ is the cumulative fair value gain or loss on the assets that is held in equity. ‘Total’ is the fair value of the assets at the balance sheet date.

Barclays PLC – 2011 Results 59

Credit Risk

Ireland

	Trading Portfolio							Derivatives
Fair Value through Profit and Loss	Trading Portfolio Assets £m		Trading Portfolio Liabilities £m			Net Trading Portfolio £m		Gross Assets £m		Gross Liabilities £m			Cash Collateral £m			Net Derivatives £m			Designated as FV through  P&L £m		Total as at 31.12.11 £m		Total as at 31.12.10 £m
Sovereign		98		(64	)		34		45		(4	)		(36	)		5			-		39		59
Financial institutions		1,416		(39	)		1,377		5,889		(3,909	)		(1,846	)		134			50		1,561		1,149
Corporate		73		(30	)		43		658		(658	)		-			-			9		52		164
																							Total
									Available for Sale Assets as at 31.12.11															as at
Fair Value through Equity										Cost1 £m						AFS Reserve £m					Total £m		31.12.10 £m
Sovereign											215						(10	)				205		237
Financial institutions											274						(25	)				249		584
																							Total
									Loans and Advances as at 31.12.11															as at
Held at Amortised Cost										Gross £m						Impairment Allowances £m					Total £m		31.12.10 £m
Financial institutions											2,651						(150	)				2,501		2,036
Residential mortgages											104						(10	)				94		109
Corporate											946						(21	)				925		959
Other retail lending											86						-					86		125
Greece
	Trading Portfolio							Derivatives
Fair Value through Profit and Loss	Trading Portfolio Assets £m		Trading Portfolio Liabilities £m			Net Trading Portfolio £m		Gross Assets £m		Gross Liabilities £m			Cash Collateral £m			Net Derivatives £m			Designated as FV through P&L £m		Total as at 31.12.11 £m		Total as at 31.12.10 £m
Sovereign		7		-			7		1		-			-			1			-		8		15
Financial institutions		2		-			2		1,109		(253	)		(856	)		-			-		2		21
Corporate		3		-			3		-		-			-			-			-		3		7
																							Total
									Available for Sale Assets as at 31.12.11															as at
Fair Value through Equity										Cost1 £m						AFS Reserve £m					Total £m		31.12.10 £m
Sovereign											6						-					6		16
																							Total
									Loans and Advances as at 31.12.11															as at
Held at Amortised Cost										Gross £m			Impairment Allowances £m								Total £m		31.12.10 £m
Residential mortgages											5						-					5		4
Corporate											64						-					64		96
Other retail lending											27						(9	)				18		19

1 ‘Cost’ refers to the fair value of the asset at recognition, less any impairment booked. ‘AFS Reserve’ is the cumulative fair value gain or loss on the assets that is held in equity. ‘Total’ is the fair value of the assets at the balance sheet date.

Barclays PLC – 2011 Results 60

Credit Risk

Credit Derivatives Referencing Sovereign Debt

— The Group enters into credit mitigation arrangements (principally credit default swaps and total return swaps) primarily for risk management purposes for which the reference asset is government debt

— These have the effect of reducing the Group’s gross exposure in the event of sovereign default

As at 31.12.11	Spain £m			Italy £m			Portugal £m			Ireland £m			Greece £m
Net derivative fair value		2			98			24			-			(60	)
Net derivative notional amount		(159	)		(472	)		(50	)		(49	)		79
Impact of credit derivatives in the event of sovereign default (notional less fair value of protection)		(157	)		(374	)		(26	)		(49	)		19

— Credit derivatives are arrangements whereby the default risk of an asset (reference asset) is transferred from the buyer to the seller of protection

— The majority of credit derivatives referencing sovereign assets are bought and sold to support customer transactions and for risk management purposes

— The contract notional amount represents the value of the reference asset being insured, while the fair value represents the change in the value of the reference asset, adjusted for the creditworthiness of the counterparty providing the protection

— The net derivative notional amount represents a reduction in exposures and should be considered alongside the direct exposures as disclosed in the preceding pages

— In addition, the Group has indirect sovereign exposure through the guarantee of certain savings and investment funds, which hold a proportion of their assets in sovereign debt. As at 31 December 2011, the net liability in respect of these guarantees was £41m

Barclays PLC – 2011 Results 61

Credit Risk

Barclays Capital Credit Market Exposures

									Year Ended 31.12.11
Credit Market Exposures1	As at 31.12.11 $m		As at 31.12.10 $m		As at 31.12.11 £m		As at 31.12.10 £m		Fair Value (Losses)/ Gains and Net Funding £m			Impairment Release/ (Charge) £m			Total     (Losses)/     Gains     £m
Protium assets2		3,508		10,884		2,272		7,028		(555	)		223			(332)
US Residential Mortgages
ABS CDO Super Senior		2,844		3,085		1,842		1,992		(29	)		(6	)		(35)
US sub-prime and Alt-A		644		1,025		416		662		(4	)		35			31
Commercial Mortgages
Commercial real estate loans and properties		8,228		11,006		5,329		7,106		486			-			486
Commercial Mortgaged Backed Securities		156		184		101		119		-			-			-
Monoline protection on CMBS		14		18		9		12		32			-			32
Other Credit Market
Leveraged Finance3		6,278		7,636		4,066		4,930		43			(203	)		(160)
SIVs, SIV -Lites and CDPCs		9		618		6		399		(32	)		-			(32)
Monoline protection on CLO and other		1,729		2,541		1,120		1,641		(13	)		-			(13)
Total		23,410		36,997		15,161		23,889		(72	)		49			(23)

— Barclays Capital’s credit market exposures primarily relate to commercial real estate, leveraged finance, and collateral previously securing the loan to Protium. These exposures arose before the market dislocation in mid-2007

— During 2011, credit market exposures decreased by £8,728m to £15,161m, reflecting net sales and paydowns and other movements of £8,442m, foreign exchange rate movements of £263m and fair value losses and impairment of £23m. The net sales, paydowns and other movements of £8,442m included:

– £4,218m relating to assets formerly held as collateral for the loan to Protium Finance LP, comprising £2,697m net sales, £959m loan and interest repayments and £562m paydowns and other movements

– £2,141m of commercial real estate loans and properties sales and paydowns

– £820m reduction in leveraged loans primarily relating to five counterparties

— In January 2012, Barclays completed the sale of £405m ($628m) of a commercial real estate equity security at fair value representing 50% of its stake in Archstone

1 As the majority of exposure is held in US Dollars, the exposures above are shown in both US Dollars and Sterling.

2 Prior to 27 April 2011 when Protium was acquired by the Group the exposure was a loan. This was carried at the amount equivalent to the fair value of the underlying collateral from 31 December 2010.

3 Includes undrawn commitments of £180m (31 December 2010: £264m).

Barclays PLC – 2011 Results 62

Credit Risk

			Acquisition Date						Acquisition Date
Protium Assets	As at 31.12.11 $m		As at 27.04.11 $m		As at 31.12.10 $m		As at 31.12.11 £m		As at 27.04.11 £m		As at   31.12.10   £m
US sub-prime and Alt-A		1,490		4,406		4,402		965		2,665		2,710
Commercial Mortgage-Backed Securities		1,422		3,092		3,257		921		1,870		2,103
Monoline protection		-		-		225		-		-		145
CLO and other assets		596		1,952		1,636		386		1,181		1,189
Total collateral		3,508		9,450		9,520		2,272		5,716		6,147
Cash and cash equivalents		na		231		1,364		na		140		881
Total assets		3,508		9,681		10,884		2,272		5,856		7,028
Loan to Protium		-		-		10,884		-		-		7,028

— On 16 September 2009, Barclays Capital sold assets of $12,285m, including $8,384m in credit market assets, to Protium Finance LP (Protium). As part of the transaction, Barclays extended a $12,641m 10 year loan to Protium

— In April 2011, Barclays entered into several agreements to acquire all third party interests in Protium in order to help facilitate the Group’s early exit from the underlying exposures. As a result, Protium was then consolidated by the Group. Subsequently, Protium sold its assets to Barclays entities and the loan has been repaid

— As part of this transaction, £459m ($750m) was invested in Helix, an existing fund managed by Protium’s investment manager. The orginal investment represented 86% of the Helix fund, which has been consolidated by the Group. The fund’s investments primarily comprise government and agency securities. As at 31 December 2011, the fair value of Barclays investment in the fund was $729m

Barclays PLC – 2011 Results 63

Market Risk

Analysis of Barclays Capital’s Market Risk Exposure

— Barclays Capital’s regulatory market risk models, including recently implemented models for CRD3, are used to calculate regulatory capital for designated trading book portfolios, and are reviewed by the FSA. The four principal models are Daily Value at Risk (DVaR), Stressed Value at Risk, Incremental Risk Charge and the All Price Risk measure

— Barclays Capital DVaR model is graded Green, as defined by the FSA which is consistent with a good working model. This rating was maintained throughout the year

— For internal risk management purposes, DVaR is calculated at a 95% confidence level for the trading book and certain banking books. The calculation is based on historical simulation of the most recent two years of data

	Year Ended 31.12.11							Year Ended 31.12.10
DVaR (95%)	Daily Avg £m			High1 £m		Low1 £m		Daily Avg £m			High1 £m		Low1 £m
Interest rate risk		17			47		7		33			50		21
Spread risk		45			69		25		48			62		30
Commodity risk		12			18		7		16			25		9
Equity risk		18			34		9		14			29		6
Foreign exchange risk		5			8		2		6			15		2
Diversification effect		(40	)		na		na		(64	)		na		na
Total DVaR		57			88		33		53			75		36
Expected shortfall2		71			113		43		78			147		47
3W3		121			202		67		144			311		72

— Barclays Capital’s average total DVaR was £57m during 2011, an 8% increase from 2010. However, the tail risk indicated by the average expected shortfall and 3W measures fell 9% to £71m and 16% to £121m respectively

— The diversification effect reduced 38% to an average of £40m in 2011 due to higher cross asset correlation as the European debt crisis worsened

— The three main risk factors affecting DVaR were spread, interest rate and equity risk. From 2010 levels, average DVaR for spread fell by £3m (6%) and interest rate DVaR fell by £16m (48%) reflecting cautious positioning. Equity DVaR increased by £4m (29%) on continued growth of the global equities business and product offerings

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

2 The average of all one day hypothetical losses beyond the 95% confidence level DVaR.

3 The average of the three largest one day estimated losses.

Barclays PLC – 2011 Results 64

Financial Statement Notes

Going Concern

The Group’s business activities and financial position, the factors likely to affect its future development and performance, and its objectives and policies in managing the financial risks to which it is exposed and its capital are discussed in the Results by Business, Performance Management and Risk Management sections.

The Directors confirm they are satisfied that the Group has adequate resources to continue in business for the foreseeable future. For this reason, they continue to adopt the going concern basis for preparing accounts.

Accounting Policies

The Group has continued to apply the accounting policies used for the 2010 Annual Report.

A number of amendments to IFRS have been issued that are required to be applied from 1 January 2011. These amendments have not resulted in any changes to the Group’s accounting policies.

1. Net Interest Income

	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Cash and balances with central banks		392			271
Available for sale investments		2,137			1,483
Loans and advances to banks		350			440
Loans and advances to customers		17,271			17,677
Other		439			164
Interest income		20,589			20,035
Deposits from banks		(366	)		(370	)
Customer accounts		(2,526	)		(1,410	)
Debt securities in issue		(3,524	)		(3,632	)
Subordinated liabilities		(1,813	)		(1,778	)
Other		(159	)		(322	)
Interest expense		(8,388	)		(7,512	)
Net interest income		12,201			12,523
2.      Income by Geographic Segment1
	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
UK		15,819			12,714
Europe		4,207			4,828
Americas		6,025			7,742
Africa and Middle East		4,967			4,997
Asia		1,274			1,159
Total income net of insurance claims		32,292			31,440

1 Total income net of insurance claims based on counterparty location.

Barclays PLC – 2011 Results 65

Financial Statement Notes

3. Administration and General Expenses

	Year Ended 31.12.11 £m		Year Ended 31.12.10 £m
Property and equipment		1,763		1,813
Outsourcing and professional services		1,869		1,705
Operating lease rentals		659		637
Marketing, advertising and sponsorship		585		631
Subscriptions, publications, stationery and communications		740		750
Travel and accommodation		328		358
Other administration and general expenses		400		566
Impairment of property, equipment and intangible assets		12		125
Administration and general expenses		6,356		6,585

Administration and general expenses decreased 3% to £6,356m (2010: £6,585m), principally reflecting the benefits of restructuring and the non-recurrence of the one-off provision in respect of the resolution of a review of Barclays compliance with US economic sanctions that occurred in 2010. These reductions have been offset in part by an increase in outsourcing and professional services as a result of Barclaycard acquisitions, restructuring charges and increased regulatory costs.

4. UK Bank Levy

UK legislation was enacted in July 2011 to introduce an annual bank levy, which applies to elements of the Group’s consolidated liabilities and equity held as at the year end. The levy has resulted in an additional charge to the income statement of £325m, which was recognised as at 31 December 2011 and is presented within operating expenses. The IFRS Interpretations Committee is considering the timing of recognition of the levy going forward.

5. Loss on Disposal of Subsidiaries, Associates and Joint Ventures

On 15 February 2011, Barclays announced its intention to sell Barclays Bank Russia (BBR) as part of refocusing its Russian activities and commenced plans to dispose of the business. The disposal of BBR was completed on 25 October 2011. A loss on disposal of £73m has been recognised in the income statement within Barclays Corporate and the accumulated foreign exchange losses of £23m, previously recognised directly in equity, have been recycled through the income statement within Head Office Functions.

6. Acquisitions

In April 2011, Barclays acquired the third party investments in Protium for their carrying value of £163m and restructured the related management arrangements. This resulted in the general partner interest being acquired by Barclays for a nominal consideration and the remaining interest in Protium held by Protium’s investment manager, redeemed for consideration of £50m (in accordance with the performance fees that would have been due under the original agreement, based on investment performance to date). Barclays became the sole owner and controlling party of Protium, which is consolidated by the Group. There was no gain or loss and no goodwill arising as the impairment on the loan had already been calculated by reference to Protium’s net asset value of £5,856m.

As part of this transaction, $750m of proceeds from a partial redemption of the loan to Protium was invested into Helix, an existing fund managed by Protium’s investment manager. This represents a majority interest in the fund, which has also been consolidated by the Group.

The pre-acquisition carrying amounts of the acquired assets and liabilities, stated in accordance with the Group’s accounting policies, were equal to their fair value on acquisition as set out below. There was no gain or loss and no goodwill arising on the transaction.

Barclays PLC – 2011 Results 66

Financial Statement Notes

6. Acquisitions (continued)

Assets	Total Fair Value £m
Trading portfolio assets		4,731
Financial assets designated at fair value		1,004
Derivative financial instruments		5
Loans and advances to banks		472
Reverse repurchase agreements		29
Other assets		46
Total assets		6,287
Liabilities
Deposits from banks		1
Trading portfolio liabilities		93
Financial liabilities designated at fair value		76
Derivative financial instruments		23
Repurchase agreements		24
Other liabilities		51
Total liabilities		268
Net assets acquired		6,019
Group share of assets acquired		6,019
Consideration:
- Cash		163
- Loan		5,856
Total		6,019

The Group’s exposure to Protium prior to acquisition represented a loan. Subsequent to acquisition the underlying assets held by Protium were consolidated by the Group and have been integrated into the corresponding business lines.

The contribution of Protium and related underlying assets on the Group’s profit before tax for the year of £55m reflects a £223m impairment release and £36m net interest income on the loan prior to acquisition, offset by £204m post acquisition fair value movements in the underlying assets and gains arising on the unwind of structured assets.

During the year, Barclays acquired £2.1bn gross consumer credit card assets from Egg UK, a £130m corporate card portfolio from MBNA Europe Bank Limited and a $1.4bn Upromise by Sallie Mae credit card portfolio from FIA Card Services, N.A. (part of the Bank of America Group). These acquisitions were asset purchases and therefore, have not been included in the table above. In addition, Barclays acquired the Baubecon portfolio of German residential properties following a debt restructuring transaction for £0.8bn. The properties have a current fair value of £1bn and are accounted for as investment properties.

Barclays PLC – 2011 Results 67

Financial Statement Notes

7. Tax

The tax charge for 2011 was £1,928m (2010: £1,516m) on profit before tax of £5,879m (2010: £6,065m), giving an effective tax rate of 32.8% (2010: 25.0%). The effective tax rate reflects the non-deductible charges for the impairment of the investment in BlackRock, Inc. of £1,800m (2010: nil), goodwill impairment of £597m (2010: £243m) and the UK bank levy of £325m (2010: nil).

The effective tax rate for both periods differs from the UK tax rate of 26.5% (2010: 28.0%) because of these non-deductible charges and the impact of non-taxable gains and income, the effect of profits and losses outside of the UK being taxed at local statutory tax rates that are different to the UK statutory tax rate, non-creditable taxes, non-deductible expenses, and the benefit from recognising deferred tax assets that were previously unrecognised.

	Assets				Liabilities
Current and Deferred Tax Assets and Liabilities	31.12.11		31.12.10		31.12.11			31.12.10
	£m		£m		£m			£m
Current tax		374		196		(1,397	)		(646	)
Deferred tax		3,010		2,517		(695	)		(514	)
Total		3,384		2,713		(2,092	)		(1,160	)
Deferred tax assets, which principally relate to Barclays businesses in the US and Spain, increased by 20% to £3,010m largely due to improved financial performance in the US supporting additional deferred tax assets not previously recognised. 8.      Non-controlling Interests
	Profit Attributable to Non- controlling Interest				Equity Attributable to Non- controlling Interest
	Year Ended		Year Ended		Year Ended			Year Ended
	31.12.11		31.12.10		31.12.11			31.12.10
	£m		£m		£m			£m
Barclays Bank PLC Issued:
- Preference shares		465		478		5,929			5,933
- Reserve Capital Instruments (RCIs)		46		113		-			1,418
- Upper Tier 2 instruments		3		3		586			586
Absa Group Limited		401		362		2,861			3,208
Other non-controlling interests		29		29		231			259
		944		985		9,607			11,404

The decrease in Absa Group Limited equity attributable to non-controlling interest to £2,861m (2010: £3,208m) is principally due to £583m depreciation of African currencies against Sterling and £162m of dividends paid, offset by retained profits of £401m.

The reduction in RCIs to nil (2010: £1,418m) is due to the buy back, at the Group’s option, of instruments with a nominal value of $1.25bn and $0.75bn during June and December 2011 respectively.

Barclays PLC – 2011 Results 68

Financial Statement Notes

9. Earnings Per Share

	Year Ended 31.12.11 £m		Year Ended 31.12.10 £m
Profit attributable to equity holders of the parent		3,007		3,564
Dilutive impact of convertible options		-		(10	)
Profit attributable to equity holders of the parent including dilutive impact of convertible options		3,007		3,554
Basic weighted average number of shares in issue1		11,988m		11,719m
Number of potential ordinary shares		538m		733m
Diluted weighted average number of shares		12,526m		12,452m
Basic earnings per ordinary share		25.1p		30.4p
Diluted earnings per ordinary share		24.0p		28.5p

The decrease in the number of potential ordinary shares is primarily driven by a decrease in the average share price and options exercised under employee share schemes.

10. Dividends on Ordinary Shares

It is the Group’s policy to declare and pay dividends quarterly. A final dividend in respect of 2011 of 3p per ordinary share will be paid on 16 March 2012 to shareholders on the Share Register on 24 February 2012 and accounted for as distribution of retained earnings in the year ending 31 December 2012. The financial statements for 2011 include the following dividends paid during the year:

	Year Ended 31.12.11				Year Ended 31.12.10
Dividends Paid During the Period	Per Share Pence		Total £m		Per Share Pence		Total £m
Final dividend paid during period		2.5p		298		1.5p		176
Interim dividends paid during period		3.0p		362		3.0p		355

For qualifying US and Canadian resident ADR holders, the final dividend of 3p per ordinary share becomes 12p per ADS (representing four shares). The ADR depositary will post the final dividend on 16 March 2012 to ADR holders on the record at close of business on 24 February 2012.

1 The number of basic weighted average number of shares excludes own shares held in employee benefit trusts or for trading.

Barclays PLC – 2011 Results 69

Financial Statement Notes

11. Derivative Financial Instruments

	Contract Notional Amount		Fair Value
As at 31.12.11			Assets		Liabilities
	£m		£m		£m
Foreign exchange derivatives		4,452,874		63,822		(67,280	)
Interest rate derivatives		35,541,980		372,570		(357,440	)
Credit derivatives		1,886,650		63,312		(61,348	)
Equity and stock index and commodity derivatives		1,214,487		35,602		(38,484	)
Derivative assets/(liabilities) held for trading		43,095,991		535,306		(524,552	)
Derivatives in Hedge Accounting Relationships
Derivatives designated as cash flow hedges		157,149		2,150		(1,726	)
Derivatives designated as fair value hedges		74,375		1,447		(1,238	)
Derivatives designated as hedges of net investments		12,010		61		(394	)
Derivative assets/(liabilities) designated in hedge accounting relationships		243,534		3,658		(3,358	)
Total recognised derivative assets/(liabilities)		43,339,525		538,964		(527,910	)
As at 31.12.10
Foreign exchange derivatives		3,513,911		60,420		(62,141	)
Interest rate derivatives		41,764,637		270,730		(251,941	)
Credit derivatives		1,952,475		47,017		(45,044	)
Equity and stock index and commodity derivatives		1,286,181		40,419		(44,037	)
Derivative assets/(liabilities) held for trading		48,517,204		418,586		(403,163	)
Derivatives in Hedge Accounting Relationships
Derivatives designated as cash flow hedges		149,763		760		(925	)
Derivatives designated as fair value hedges		83,968		924		(1,012	)
Derivatives designated as hedges of net investments		6,622		49		(416	)
Derivative assets/(liabilities) designated in hedge accounting relationships		240,353		1,733		(2,353	)
Total recognised derivative assets/(liabilities)		48,757,557		420,319		(405,516	)

The fair value of gross derivative assets increased by 28% to £539bn (2010: £420bn) reflecting decreases in the major forward curves, offset by the impact of optimisation initiatives.

Barclays PLC – 2011 Results 70

Financial Statement Notes

12. Financial Instruments Held at Fair Value

The table below shows the financial assets and liabilities that are recognised and measured at fair value analysed by level within the fair value hierarchy.

	Valuations Based on
As at 31.12.11	Quoted Market Prices (Level 1) £m			Observable Inputs (Level 2) £m			Significant Unobservable Inputs (Level 3) £m			Total £m
Trading portfolio assets		61,530			81,449			9,204			152,183
Financial assets designated at fair value		4,179			24,091			8,679			36,949
Derivative financial assets		2,550			525,147			11,267			538,964
Available for sale assets		30,857			34,761			2,873			68,491
Total Assets		99,116			665,448			32,023			796,587
Trading portfolio liabilities		(26,155	)		(19,726	)		(6	)		(45,887	)
Financial liabilities designated at fair value		(39	)		(84,822	)		(3,136	)		(87,997	)
Derivative financial liabilities		(2,263	)		(517,066	)		(8,581	)		(527,910	)
Total Liabilities		(28,457	)		(621,614	)		(11,723	)		(661,794	)
As at 31.12.10
Trading portfolio assets		48,466			114,660			5,741			168,867
Financial assets designated at fair value		5,406			25,175			10,904			41,485
Derivative financial assets		3,023			408,214			9,082			420,319
Available for sale assets		25,619			36,201			3,290			65,110
Total Assets		82,514			584,250			29,017			695,781
Trading portfolio liabilities		(30,247	)		(42,345	)		(101	)		(72,693	)
Financial liabilities designated at fair value		(4	)		(94,088	)		(3,637	)		(97,729	)
Derivative financial liabilities		(2,567	)		(396,695	)		(6,254	)		(405,516	)
Total Liabilities		(32,818	)		(533,128	)		(9,992	)		(575,938	)

Transfers between Level 1 and Level 2 primarily comprised government bonds that had more observable market prices.

The significant movements in the Level 3 positions during the year ended 31 December 2011 are as follows:

— Purchases of £9.0bn, primarily comprising £5.1bn of assets acquired as part of the acquisition of Protium, £2.1bn of other non-asset backed debt instruments, £0.6bn of asset backed products and £0.4bn of derivative products

— Sales of £7.8bn including the sale of £2.8bn Protium assets post acquisition, the sale of £1.9bn of non-asset backed debt instruments, £1.0bn of asset backed products, £1.0bn of legacy commercial real estate loans and £0.3bn of Private Equity investments

— Settlements of £1.8bn including the £0.8bn Baubecon debt restructuring and repayments received on other legacy commercial real estate loans

— Net Transfers into Level 3 of £2.6bn primarily comprised transfers of inflation linked bond trading portfolio assets, for which fair values have become less observable in the market

— Issuances of £1.0bn, comprising £0.4bn of derivatives products, £0.3bn of structured notes and £0.3bn of non-asset backed products

Movements on the fair value of Level 3 assets recognised in the income statement totalled £0.3bn (2010: £0.3bn)

Barclays PLC – 2011 Results 71

Financial Statement Notes

12. Financial Instruments Held at Fair Value (continued)

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, was as follows:

	Year Ended 31.12.11 £m			Year Ended 31.12.10 £m
Opening balance		137			99
Additions		93			56
Amortisation and releases		(113	)		(18	)
Closing balance		117			137

Stress tests are applied on significant unobservable parameters (within Level 3) to generate a range of potentially possible alternative valuations. The results of the most recent stress test showed a potential to increase the fair values by up to £2.0bn (2010: £1.7bn) or to decrease the fair values by up to £2.1bn (2010: £1.8bn) with substantially all the potential effect being recorded in the income statement rather than equity. It is not possible to reliably stress the £2.0bn receivable included within Level 3 assets arising from the Lehman acquisition since, its value is dependent on the outcome of legal proceedings. Further detail is provided in note 19.

The stresses applied take account of the nature of valuation techniques used, as well as the availability and reliability of observable proxy and historical data. In all cases, an assessment is made to determine the suitability of available data. The sensitivity methodologies are based on a range, standard deviation or spread data of a reliable reference source or a scenario based on alternative market views. The level of shift or scenarios applied is considered for each product and varies according to the quality of the data and variability of underlying market. The market pricing and valuation of derivatives continue to evolve, particularly in respect of collateralisation and credit risk. Valuation methodologies are consistent with observed market practice in this area and will continue to develop as practice evolves.

13. Goodwill and Intangible Assets

	As at 31.12.11 £m		As at 31.12.10 £m
Goodwill		5,305		6,219
Intangibles		2,541		2,478
Total		7,846		8,697

Goodwill principally comprised £3,145m held in UK RBB (2010: £3,148m), £1,078m in Africa RBB (2010: £1,307m) and £64m in Europe RBB (2010: £505m).

Goodwill is reviewed for indicators of impairment quarterly and tested for impairment on an annual basis by comparing the carrying value to its recoverable amount. In May 2011 the goodwill in FirstPlus of £47m was fully impaired reflecting the continued run-off of the loan portfolio and the impact of payment protection insurance redress. As a result of the annual impairment assessment, the Spanish goodwill of £550m was fully impaired in December 2011. This was due to a revision in cashflow forecasts, an increase in the pre-tax discount rate to 16% (2010: 12%) and a reduction in the terminal growth rate to 1% (2010: 2%), reflecting the deteriorating economic environment in the fourth quarter of 2011 and ongoing economic uncertainty in Spain.

Barclays PLC – 2011 Results 72

Financial Statement Notes

14. Provisions

	As at 31.12.11 £m		As at 31.12.10 £m
Redundancy and restructuring		216		177
Undrawn contractually committed facilities and guarantees		230		229
Onerous contracts		116		74
Payment Protection Insurance redress		565		-
Litigation		140		151
Sundry provisions		262		316
Total		1,529		947

Following the conclusion of the Judicial Review, a £1bn provision was raised in the second quarter of 2011 for PPI redress. The provision was based on the FSA’s policy statement and industry claims experience. Of this £435m had been utilised as at 31 December 2011 and, given the continued uncertainty in the compensation, the remaining £565m provision is currently considered best estimate to cover expected future settlements.

For the year ended 31 December 2011, costs of PPI redress of £13m (2010: £162m) relating to claims settled prior to the conclusion of the Judicial Review, are included in the income statement. Of this, £5m (2010: £87m) was included in income and £8m (2010: £75m) within operating expenses.

15. Retirement Benefits

The Group’s IAS 19 pension deficit across all schemes as at 31 December 2011 was £0.2bn (2010: £2.9bn). This reflects net recognised assets of £1.5bn (2010: net recognised liabilities of £0.2bn) and unrecognised actuarial losses of £1.7bn (2010: £2.7bn). The net recognised assets comprised retirement benefit assets of £1.8bn (2010: £0.1bn) and liabilities of £0.3bn (2010: £0.3bn).

The Group’s main scheme is the UK Retirement Fund (the Fund). As at 31 December 2011, the Fund’s IAS 19 scheme assets exceeded liabilities by £0.3bn (2010: deficit of £2.6bn). The most significant reasons for this change were favourable asset returns and deficit contributions paid over the year.

The latest triennial funding valuation of the Fund was carried out with an effective date of 30 September 2010, and showed a deficit of £5.0bn. The Bank and Trustee agreed a recovery plan to eliminate the deficit in the Fund. As part of this recovery plan, deficit contributions of £1.8bn were paid to the Fund in December 2011 and a further £0.5bn will be paid in 2012. Further deficit contributions are payable each year from 2017 to 2021 starting at £0.65bn for 2017 and increasing by approximately 3.5% per annum until 2021. 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.

The latest annual funding update prepared by the Scheme Actuary as at 30 September 2011 showed a funding deficit of £6.4bn, which was prior to the payment of £1.8bn deficit contributions in December 2011.

From 1 January 2013, in accordance with IAS 19 amendments, the Group balance sheet will fully reflect any pension deficit, including the unrecognised actuarial losses, which total £1.7bn as at 31 December 2011. The charge for 2011 would have been £0.1bn higher under the revised standard, and a charge of £1.7bn would have been recognised in Other Comprehensive Income.

Barclays PLC – 2011 Results 73

Financial Statement Notes

16. Share Capital and Warrants

Called up share capital comprises 12,199 million (2010: 12,182 million) ordinary shares of 25p each.

As at 31 December 2011 there were unexercised warrants to subscribe for 379.2 million (2010: 379.2 million) new ordinary shares at a price of £1.97775. The warrants may be exercised at any time up to close of business on 31 October 2013.

17. Other Reserves

Currency Translation Reserve

The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign operations, net of the effects of hedging. Currency translation movements in 2011 of £1,607m (2010: £1,184m), including £598m (2010: £442m) associated with non-controlling interests, are largely due to the depreciation of the Rand, Euro and Indian Rupee against Sterling.

The impact of the currency translation reserve recognised in the income statement during the year was nil (2010: £279m), as the £23m loss from the disposal of BBR was offset by other movements.

Available for Sale Reserve

The available for sale reserve represents the unrealised change in the fair value of available for sale investments since initial recognition.

The available for sale reserve increased £1,380m to £25m, largely driven by £2,748m gains from changes in fair value, offset by £1,557m of net gains transferred to the income statement after recognition of impairment on the Group’s investment in BlackRock, Inc.

Cash Flow Hedge Reserve

The cash flow hedge reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to the income statement when hedged transactions affect profit or loss.

Movements in the cash flow hedge reserve principally reflected increases in the fair value of interest rate swaps held for hedging purposes, partially offset by related gains transferred to net profit.

18. Contingent Liabilities and Commitments

	Year Ended 31.12.11 £m		Year Ended 31.12.10 £m
Securities lending arrangements		35,996		27,672
Guarantees and letters of credit pledged as collateral security		14,181		13,783
Performance guarantees, acceptances and endorsements		8,706		9,175
Contingent liabilities		58,883		50,630
Documentary credits and other short-term trade related transactions		1,358		1,194
Standby facilities, credit lines and other commitments		240,282		222,963

Securities Lending Arrangements

Up to the disposal of Barclays Global Investors on 1 December 2009, the Group facilitated securities lending arrangements for its managed investment funds whereby securities held by funds under management were lent to third parties. Borrowers provided cash or investment grade assets as collateral equal to 100% of the market value of the securities lent plus a margin of 2%–10%. The Group agreed with BlackRock, Inc. to continue to provide indemnities to support these arrangements for three years following the disposal. The fair value of the collateral held was £37,072m (2010: £28,465m) and that of the stock lent was £35,996m (2010: £27,672m).

Barclays PLC – 2011 Results 74

Financial Statement Notes

18. Contingent Liabilities and Commitments (continued)

The Financial Services Compensation Scheme

The FSCS is the UK’s compensation fund for customers of authorised financial services firms that are unable to pay claims. The FSCS raises levies on all UK deposit taking institutions. Previously compensation has been paid out by loan facilities provided by HM Treasury to FSCS in support of FSCS’s obligations to the depositors of banks declared in default. The outstanding loan facilities, totalling approximately £18.5bn, are to be reviewed from 1 April 2012 and the ongoing terms are still to be agreed with HM Treasury. While it is anticipated that the substantial majority of these loans will be repaid wholly from recoveries from the institutions concerned, there is the risk of a shortfall, such that the FSCS may place additional levies on all FSCS participants. Barclays has included an accrual of £58m in other liabilities as at 31 December 2011 (2010: £63m) in respect of levies raised by the FSCS, based on the indicative costs published by the FSCS.

Barclays Capital US Mortgage Activities

Barclays activities within the US residential mortgage sector during the period of 2005 through 2008 included: sponsoring and underwriting of approximately $39bn of private-label securitisations; underwriting of approximately $34bn of other private-label securitisations; sales of approximately $150m of loans to government sponsored enterprises (GSEs); and sales of approximately $3bn of loans to others. In addition, Barclays sold approximately $4bn of loans to Protium in 2009. As a result of Barclays acquisition of Protium in April 2011, Barclays reacquired the loans previously sold to Protium. Some of the loans sold by Barclays were originated by a Barclays subsidiary. Barclays also performed servicing activities through its US residential mortgage servicing business which Barclays acquired in Q4 2006 and subsequently sold in Q3 2010.

In connection with Barclays loan sales and some of its sponsored private-label securitisations, Barclays made certain loan level representations and warranties (R&Ws) generally relating to the underlying borrower, property and/or mortgage documentation. Under certain circumstances, Barclays may be required to repurchase the related loans or make other payments related to such loans if the R&Ws are breached. As at 31 December 2011, Barclays R&Ws in respect of approximately $1bn of loans sold to others (which excludes the reacquired loans previously sold to Protium and loans sold to GSEs) had expired. The R&Ws with respect to the balance of the loans sold to others were not subject to expiration provisions. However, such loans were generally sold at significant discounts and contained more limited R&Ws than loans sold to GSEs. Third party originators provided loan level R&Ws directly to the securitisation trusts for approximately $34bn of the $39bn in Barclays sponsored securitisations. Barclays or a subsidiary provided loan level R&Ws to the securitisation trusts for approximately $5bn of the Barclays sponsored securitisations. R&Ws made by Barclays in respect of such securitised loans, and the loans sold by Barclays to GSEs, are not subject to expiration provisions. Total unresolved repurchase requests associated with all loans sold to others and private-label activities were $21m at 31 December 2011. Current provisions are adequate to cover estimated losses associated with outstanding repurchase claims. However, based upon a large number of defaults occurring in US residential mortgages, there is a potential for additional claims for repurchases.

Claims against Barclays as an underwriter of RMBS offerings have been brought in certain civil actions (see page 77). Additionally, Barclays has received inquiries from various regulatory and governmental authorities regarding its mortgage-related activities and is cooperating with such inquiries.

It is not practicable to provide an estimate of the financial impact of the potential exposure in relation to the foregoing matters.

Barclays PLC – 2011 Results 75

Financial Statement Notes

19. Legal Proceedings

Lehman Brothers Holdings Inc.

On 15 September 2009, motions were filed in the United States Bankruptcy Court for the Southern District of New York (the Court) by Lehman Brothers Holdings Inc. (LBHI), the SIPA Trustee for Lehman Brothers Inc. (the Trustee) and the Official Committee of Unsecured Creditors of Lehman Brothers Holdings Inc. (the Committee). All three motions challenged certain aspects of the transaction pursuant to which BCI and other companies in the Group acquired most of the assets of Lehman Brothers Inc. (LBI) in September 2008 and the court order approving such sale. The claimants were seeking an order voiding the transfer of certain assets to BCI; requiring BCI to return to the LBI estate alleged excess value BCI received; and declaring that BCI is not entitled to certain assets that it claims pursuant to the sale documents and order approving the sale (the Rule 60 Claims). On 16 November 2009, LBHI, the Trustee and the Committee filed separate complaints in the Court asserting claims against BCI based on the same underlying allegations as the pending motions and seeking relief similar to that which is requested in the motions. On 29 January 2010, BCI filed its response to the motions and also filed a motion seeking delivery of certain assets that LBHI and LBI have failed to deliver as required by the sale documents and the court order approving the sale (together with the Trustee’s competing claims to those assets, the Contract Claims). Approximately $4.2bn (£2.7bn) of the assets acquired as part of the acquisition had not been received by 31 December 2011, approximately $3.0bn (£2.0bn) of which were recognised as part of the accounting for the acquisition and are included in the balance sheet as at 31 December 2011. This results in an effective provision of $1.2bn (£0.8bn) against the uncertainty inherent in the litigation.

On 22 February 2011, the Court issued its Opinion in relation to these matters, rejecting the Rule 60 Claims and deciding some of the Contract Claims in the Trustee’s favour and some in favour of BCI. On 15 July 2011, the Court entered final Orders implementing its Opinion. BCI and the Trustee have each filed a notice of appeal from the Court’s adverse rulings on the Contract Claims. LBHI and the Committee have withdrawn their notices of appeal from the Court’s ruling on the Rule 60 Claims, rendering the Court’s Order on the Rule 60 Claims final.

If the final Orders relating to the Contract Claims were to be unaffected by future proceedings, Barclays estimates that after taking into account the effective provision of $1.2bn (£0.8bn), its loss would be approximately $4.3bn (£2.8bn). Any such loss, however, is not considered probable and Barclays is satisfied with the current level of provision.

In addition, LBHI had been pursuing a claim for approximately $500m relating to bonuses that BCI was allegedly obligated to pay to former Lehman employees. On 14 September 2011, the Court issued a decision dismissing that claim and entered a final Order to that effect on 21 September 2011. LBHI has stated that it will not appeal that decision, rendering the Order dismissing that claim final.

American Depositary Shares

Barclays Bank PLC, Barclays PLC and various current and former members of Barclays PLC’s Board of Directors have been named as defendants in five proposed securities class actions (which have been consolidated) pending in the United States District Court for the Southern District of New York (the Court). The consolidated amended complaint, dated 12 February 2010, alleges that the registration statements relating to American Depositary Shares representing Preferred Stock, Series 2, 3, 4 and 5 (the ADS) offered by Barclays Bank PLC at various times between 2006 and 2008 contained misstatements and omissions concerning (amongst other things) Barclays portfolio of mortgage-related (including US subprime-related) securities, Barclays exposure to mortgage and credit market risk and Barclays financial condition. The consolidated amended complaint asserts claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. On 5 January 2011, the Court issued an order and, on 7 January 2011, judgment was entered, granting the defendants’ motion to dismiss the complaint in its entirety and closing the case. On 4 February 2011, the plaintiffs filed a motion asking the Court to reconsider in part its dismissal order. On 31 May 2011, the Court denied in full the plaintiffs’ motion for reconsideration. The plaintiffs have appealed both decisions (the grant of the defendants’ motion to dismiss and the denial of the plaintiffs’ motion for reconsideration) to the United States Court of Appeals for the Second Circuit.

Barclays considers that these ADS-related claims against it are without merit and is defending them vigorously. It is not practicable to estimate Barclays possible loss in relation to these claims or any effect that they might have upon operating results in any particular financial period.

Barclays PLC – 2011 Results 76

Financial Statement Notes

19. Legal Proceedings (continued)

US Federal Housing Finance Agency and Other Residential Mortgage-Backed Securities Litigation

The United States Federal Housing Finance Agency (FHFA), acting for two US government sponsored enterprises, Fannie Mae and Freddie Mac (collectively, the GSEs), filed lawsuits against 17 financial institutions in connection with the GSEs’ purchases of residential mortgage-backed securities (RMBS). The lawsuits allege, among other things, that the RMBS offering materials contained materially false and misleading statements and/or omissions. Barclays Bank PLC and/or certain of its affiliates or former employees are named in two of these lawsuits, relating to sales between 2005 and 2007 of RMBS, in which Barclays Capital Inc. was lead or co-lead underwriter.

Both complaints demand, among other things: rescission and recovery of the consideration paid for the RMBS; and recovery for the GSEs’ alleged monetary losses arising out of their ownership of the RMBS. The complaints are similar to other civil actions filed against Barclays Bank PLC and/or certain of its affiliates by other plaintiffs, including the Federal Home Loan Bank of Seattle, Federal Home Loan Bank of Boston, Federal Home Loan Bank of Chicago, Cambridge Place Investment Management, Inc., HSH Nordbank AG (and affiliates) and Stichting Pensioenfonds ABP, relating to their purchases of RMBS. Barclays considers that the claims against it are without merit and intends to defend them vigorously.

The original amount of RMBS related to claims against Barclays in these cases totalled approximately $6.8bn, of which approximately $2.0bn was outstanding as at 31 December 2011. Cumulative losses reported on these RMBS as at 31 December 2011 were approximately $0.1bn. If Barclays was to lose these cases it could incur a loss of up to the outstanding amount of the RMBS as at the time of judgment (taking into account further principal payments after 31 December 2011), plus any cumulative losses on the RMBS at such time and any interest, fees and costs, less the market value of the RMBS at such time. Barclays has estimated the total market value of the RMBS as at 31 December 2011 to be approximately $1.1bn. Barclays may be entitled to indemnification for a portion of any losses.

Devonshire Trust

On 13 January 2009, Barclays commenced an action in the Ontario Superior Court seeking an order that its early terminations earlier that day of two credit default swaps under an ISDA Master Agreement with the Devonshire Trust (Devonshire), an asset-backed commercial paper conduit trust, were valid. On the same day, Devonshire purported to terminate the swaps on the ground that Barclays had failed to provide liquidity support to Devonshire’s commercial paper when required to do so. On 7 September 2011, the court ruled that Barclays early terminations were invalid, Devonshire’s early terminations were valid and, consequently, Devonshire was entitled to receive back from Barclays cash collateral of approximately C$533m together with accrued interest thereon. Barclays is appealing the court’s decision. If the court’s decision were to be unaffected by future proceedings, Barclays estimates that its loss would be approximately C$500m, less any impairment provisions taken by Barclays for this matter.

Other

Barclays is engaged in various other legal proceedings both in the United Kingdom and a number of overseas jurisdictions, including the United States, involving claims by and against it which arise in the ordinary course of business, including debt collection, consumer claims and contractual disputes. Barclays does not expect the ultimate resolution of any of these proceedings to which Barclays is party to have a material adverse effect on its results of operations, cash flows or the financial position of the Group and Barclays has not disclosed the contingent liabilities associated with these claims either because they cannot reliably be estimated or because such disclosure could be prejudicial to the conduct of the claims. Provisions have been recognised for those cases where Barclays is able reliably to estimate the probable loss where the probable loss is not de minimis.

In addition, the Bank has been named as a defendant in a number of lawsuits, including class actions, filed in US federal courts involving claims by purported classes of purchasers and sellers of LIBOR-based derivative products or Eurodollar futures or option contracts between 2006 and 2009; further details are provided on the following page.

Barclays PLC – 2011 Results 77

Financial Statement Notes

20. Competition and Regulatory Matters

This note highlights some of the key competition and regulatory challenges facing Barclays, many of which are beyond our control. The extent of the impact of these matters on Barclays cannot always be predicted but may materially impact our businesses and earnings.

Regulatory change

The scale of regulatory change remains challenging with a significant tightening of regulation and changes to regulatory structures globally, especially for banks that are deemed to be of systemic importance. Concurrently, there is continuing political and regulatory scrutiny of the operation of the banking and consumer credit industries which, in some cases, is leading to increased or changing regulation which is likely to have a significant effect on the industry. Examples include Basel 3, the emerging proposals on bank resolution regimes and proposals relating to over-the-counter derivatives clearing and global systemically important banks.

In the UK, the FSA’s current responsibilities are to be reallocated between the Prudential Regulatory Authority (a subsidiary of the Bank of England) and a new Financial Conduct Authority. In addition, the Independent Commission on Banking (the ICB) completed its review of the UK banking system and published its final report on 12 September 2011. The ICB recommended (amongst other things) that: (i) the UK and EEA retail banking activities of a UK bank or building society should be placed in a legally distinct, operationally separate and economically independent entity (so-called “ring-fencing”); and (ii) the loss-absorbing capacity of ring-fenced banks and UK-headquartered global systemically important banks (such as Barclays Bank PLC) should be increased to levels higher than the Basel 3 proposals. The UK Government published its response to the ICB recommendations in December 2011 and indicated that primary and secondary legislation relating to the proposed ring-fence will be completed by May 2015, with UK banks and building societies expected to be compliant as soon as practicable thereafter, and the requirements relating to increased loss-absorbing capacity of ring-fenced banks and UK-headquartered global systemically important banks will be applicable from 1 January 2019.

The US Dodd-Frank Wall Street Reform and Consumer Protection Act contains far reaching regulatory reform. The full impact on Barclays businesses and markets will not be known until the principal implementing rules are adopted in final form by governmental authorities, a process which is underway and which will take effect over several years.

Payment Protection Insurance (PPI)

On 20 April 2011, the judicial review proceedings brought by the British Bankers’ Association in October 2010 against the FSA and the Financial Ombudsman Service regarding the assessment and redress of PPI complaints were dismissed. On 9 May 2011, Barclays announced that it would not be participating in any application for permission to appeal against the High Court judgment and that Barclays had agreed with the FSA that it would process all on-hold and any new complaints from customers about PPI policies that they hold. Barclays also announced that, as a goodwill gesture, it would pay out compensation to customers who had PPI complaints put on hold during the judicial review. Barclays took a provision of £1bn in the second quarter of 2011 to cover the cost of future redress and administration as disclosed under note 14.

Interchange

The Office of Fair Trading, as well as other competition authorities elsewhere in Europe, continues to investigate Visa and MasterCard credit and debit interchange rates. These investigations may have an impact on the consumer credit industry as well as having the potential for the imposition of fines. Timing is uncertain but outcomes may be known within the next 2-4 years.

London Interbank Offered Rate (LIBOR)

The FSA, the US Commodity Futures Trading Commission, the SEC, the US Department of Justice Fraud Section of the Criminal Division and Antitrust Division and the European Commission are amongst various authorities conducting investigations into submissions made by Barclays and other panel members to the bodies that set various interbank offered rates. Barclays is co-operating in the relevant investigations and is keeping regulators informed. In addition, Barclays has been named as a defendant in a number of class action lawsuits filed in US federal courts involving claims by purported classes of purchasers and sellers of LIBOR-based derivative products or Eurodollar futures or options contracts between 2006 and 2009. The complaints are substantially similar and allege, amongst other things, that Barclays and other banks individually and collectively violated US antitrust and commodities laws and state common law by suppressing LIBOR rates during the relevant period. It is not currently possible to predict the ultimate resolution of the issues covered by the various investigations and lawsuits, including the timing and the scale of the potential impact on the Group of any resolution.

Barclays PLC – 2011 Results 78

Shareholder Information

Results Timetable1	Date
Ex-dividend date	22 February 2012
Dividend Record date	24 February 2012
Dividend Payment date	16 March 2012
Q1 2012 Interim Management Statement	26 April 2012
2012 Annual General Meeting	27 April 2012
2012 Interim Results Announcement	27 July 2012
Q3 2012 Interim Management Statement	31 October 2012

Exchange Rates2					Change
	31.12.11		31.12.10		31.12.103
Period end - US$/£		1.54		1.55		1	%
Average - US$/£		1.61		1.55		(4	%)
Period end - €/£		1.19		1.16		(3	%)
Average - €/£		1.15		1.17		2	%
Period end - ZAR/£		12.52		10.26		(18	%)
Average - ZAR/£		11.60		11.31		(2	%)

Registered Office

1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839

Registrar

The Registrar to Barclays, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom.

Tel: 0871 384 2055⁴ or +44 121 415 7004 from overseas.

Listing

The principal trading market for Barclays PLC ordinary shares is the London Stock Exchange. Trading on the New York Stock Exchange is in the form of ADSs under the ticker symbol ‘BCS’. Each ADS represents four ordinary shares of 25p each and is evidenced by an ADR. The ADR depositary is JP Morgan Chase Bank, whose international telephone number is +1-651-453-2128, domestic telephone number is 1-800-990-1135 and address is JPMorgan Chase Bank, PO Box 64504, St. Paul, MN 55164-0504, USA.

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

2 The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into Sterling for accounting purposes.

3 The change is the impact to Sterling reported information.

4 Calls to this number are charged at 8p per minute if using a BT landline. Call charges may vary if using other providers.

Barclays PLC – 2011 Results 79

Glossary

ABCP - Asset backed commercial paper; typically short-term notes secured on specified assets issued by consolidated special purpose entities for funding purposes.

Absa - The previously reported South African segment of Barclays PLC, comprising Absa Group Limited, but excluding Absa Capital, Absa Card and Absa Wealth which are reported within Barclays Capital, Barclaycard, and Barclays Wealth respectively.

Absa Group Limited - Refers to the consolidated results of the South African Group of which the parent company is listed on the Johannesburg Stock Exchange and in which Barclays owns a controlling stake.

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.

Adjusted cost: income ratio - Ratio of costs to income, excluding the impact on income and costs of own credit, gains on debt buy-backs, loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc., the impairment of the investment in BlackRock, Inc., the provision for Payment Protection Insurance (PPI) redress, goodwill impairments, and gains and losses on acquisitions and disposals of subsidiaries, associates and joint ventures. Adjusted measures have been presented to provide a consistent basis for comparing business performance between periods.

Adjusted Gross Leverage - The multiple of adjusted total tangible assets over total qualifying Tier 1 capital. Adjusted total tangible assets are total assets less derivative counterparty netting, assets under management on the balance sheet, settlement balances and cash collateral on derivative liabilities, goodwill and intangible assets. See ‘Tier 1 Capital’ below.

Adjusted profit before tax - Profit before tax adjusted to exclude the impact on income and costs of own credit, gains on debt buy-backs, loss on disposal of a portion of the Group’s strategic investment in BlackRock, Inc., the impairment of the investment in BlackRock, Inc., the provision for Payment Protection Insurance (PPI) redress, goodwill impairments, and gains and losses on acquisitions and disposals of subsidiaries, associates and joint ventures. Adjusted measures have been presented to provide a consistent basis for comparing business performance between periods.

Africa - Geographic segment comprising countries where Barclays operates in Africa and the Indian Ocean.

Africa Retail and Business Banking (Africa RBB) - A business unit that provides a full range of retail banking services and insurance products under the Absa and Barclays brands through a variety of retail distribution channels and offers customised business solutions for commercial and large corporate customers across Africa and the Indian Ocean.

Alt-A - Loans regarded as lower risk than sub-prime, but with higher risk characteristics than lending under normal criteria.

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

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.

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

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.

Average Daily Value at Risk - The average Daily Value at Risk (defined below) for a specified period of time.

Average LTV (Loan to Value) on new mortgages - The ratio of all new mortgage balances disbursed in the period to the appraised property value of those mortgages, i.e. total amount disbursed year-to-date divided by total amount of appraised property value.

Barclaycard Egg - The credit card portfolio acquired from Egg in 2011.

Barclays Business - A business unit within UK Retail and Business Banking providing banking services to small and medium enterprises.

Barclays PLC – 2011 Results 80

Glossary

Barclays Corporate - A business unit that provides global banking services across 10 countries grouped into three regionally based businesses: UK, Europe (Spain, Italy, Portugal, France and Ireland) and Rest of World (India, Pakistan, Russia and the UAE).

Basel 2.5 - The update to the Basel framework which includes changes to capital and disclosure requirements for securitisation and market risk.

Basel 3 (Basel III) - The third of the Basel Accords. It has been developed in response to the financial crisis of 2008 and sets new requirements on composition capital, counterparty credit risk, liquidity and leverage ratios.

Basel 3 (Basel III) leverage ratio - The ratio of Tier 1 capital to particular on- and off-balance sheet exposures, calculated in accordance with the methodology set out in the Basel III guidelines published in December 2010.

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.

Capital ratios - Key financial ratios measuring the Group’s capital adequacy or financial strength. These include the Core Tier 1 ratio, Tier 1 ratio and Risk asset ratio.

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. CDO² securities represent investments in CDOs that have been securitised by a third party.

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).

Commercial Mortgage Backed Securities (CMBS) - Securities that represent interests in a pool of commercial mortgages. Investors in these securities have the right to cash received from future mortgage payments (interest and/or principal).

Commercial Paper (CP) - Typically 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. Commercial real estate loans are loans backed by a package of commercial real estate.

Compensation: income ratio - Staff compensation based costs compared to total income.

Core Tier 1 capital - Called-up share capital and eligible reserves plus non-controlling equity interests, less intangible assets and deductions relating to the excess of expected loss over regulatory impairment allowance and securitisation positions as specified by the FSA.

Core Tier 1 ratio - Core Tier 1 capital as a percentage of risk weighted assets.

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

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

Counterparty risk - In the context of Risk Weighted Assets by Risk, a component of risk weighted assets that represents the risk of loss in derivative, repo and similar transactions resulting from the default of the counterparty.

Coverage ratio - 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.

CRD3 - Third Capital Requirements Directive; EU Directive that came into force on 31 December 2011 updating market risk capital requirements and requirements relating to securitisation.

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

Barclays PLC – 2011 Results 81

Glossary

Credit default swaps - 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 Derivative Product Company (CDPC) - A company that sells protection on credit derivatives. CDPCs are similar to monoline insurers. However, unlike monoline insurers, they are not regulated as insurers. See Risk Management section - Credit Market Exposures.

Credit impairment charges - Charges on loans and advances to customers and banks and in respect of undrawn facilities and guarantees (see Loan Impairment) and charges on available for sale asset 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 risk - In the context of Risk Weighted Assets by Risk, a 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: impaired loans, accruing past due 90 days or more, impaired or restructured loans. These may include loans which, while impaired, are still performing but have associated individual impairment allowances raised against them.

CRL Coverage - Impairment allowances as a percentage of total CRL (See Credit Risk Loans above).

Currencies - The Barclays Capital business that provides foreign exchange execution and risk management services.

Customer asset margin - Net interest income earned on customer assets (excluding the impact of the product structural hedge relating to those assets), divided by total average customer assets.

Customer deposits - 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 liability margin - Net interest income earned on customer liabilities (excluding the impact of the product structural hedge relating to those liabilities), divided by total average customer liabilities.

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. (Also see, Average Daily Value at Risk and Spot daily Value at Risk).

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 certificates of indebtedness of the Group to the bearer of the certificates. These are liabilities of the Group and include certificates of deposit.

Equities and Prime Services - Trading businesses encompassing Cash Equities, Equity Derivatives & Equity Financing.

Equity risk - The risk of change in market value of an equity investment.

Equity structural hedge - An interest rate hedge which functions to reduce the impact of the volatility of short-term interest rate movements on equity positions on the balance sheet that do not re-price with market rates.

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

Europe Retail and Business Banking (Europe RBB) - Operating segment that provides retail banking and credit card services in Spain, Italy, Portugal and France.

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.

Expected shortfall - The average of all one day hypothetical losses in excess of DVaR.

Barclays PLC – 2011 Results 82

Glossary

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

FirstPlus - The second charge lending business included within the Barclaycard segment. Since September 2008, FirstPlus has been closed to new business.

Fixed Income, Currency and Commodities (FICC) - Trading businesses encompassing Rates, Credit, Emerging Markets, Commodities, Foreign Exchange & Fixed Income Financing.

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.

Full time equivalents - Full time equivalent employee 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 employee where applicable).

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.

Gross charge-off rates - Balances charged-off to recoveries in a reporting period, expressed as a percentage of average outstanding balances excluding balances in recoveries.

Gross new UK lending - New lending advanced to UK customers during the year.

High Net Worth - The business within the Wealth segment that provides banking and other services to high net worth customers.

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.

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.

Impairment allowances - A provision held on the balance sheet as a result of the raising of a charge against profit for incurred losses inherent 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.

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

Interchange - Income paid to a credit card issuer for the clearing and settlement of a sales or cash advance transaction.

Investment banking - Fee generating businesses encompassing Advisory, Debt and Equity Origination.

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

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.

Leveraged finance - Loans or other financing agreements provided to companies whose overall level of debt is high in relation to their cash flow (net debt: EBITDA) typically arising from private equity sponsor led acquisitions of the businesses concerned.

Liability margin - Interest paid on customer liabilities relative to the average internal funding rate, divided by average customer liabilities, expressed as an annualised percentage.

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Glossary

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. The Basel III rules require this ratio to be at least 100% and it is expected to apply from 2015.

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.

Loan impairment - Charges on loans and advances to customers and banks and in respect of undrawn facilities and guarantees.

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. 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) of new mortgage lending - The ratio of all new mortgage balances disbursed in the period to the appraised property value relating to those mortgages

Loan to value ratio (LTV) - 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.

Market risk - In the context of Risk Weighted Assets by Risk, a 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.

Material holdings - In the context of Capital Resources, a deduction from Tier 1 capital and Tier 2 capital representing a regulated entity’s investment in either (i) the capital of a credit or a financial institution that exceeds either 10% of the share capital of that credit or financial institution or 10% of the total capital of the regulated entity itself or (ii) an insurance entity where the regulated entity owns more than 20% of the capital in the insurance entity or exercises significant influence.

Medium Term Notes (MTNs) - Corporate notes, continuously offered by a company to investors through a dealer. Investors can choose from differing maturities, ranging from 9 months to 30 years.

Monoline protection - Protection against credit losses provided by a monoline insurer - an entity which specialises in providing credit protection to the holders of debt instruments in the event of default by a debt security counterparty. This protection is typically held in the form of derivatives such as credit default swaps (CDS) referencing the underlying exposures held.

Net asset value per share - Computed by dividing shareholders’ equity excluding non-controlling interests by the number of issued ordinary shares.

Net interest income - The difference between interest received on assets and interest paid on liabilities.

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 interest margin - Annualised net interest income for Retail and Business Banking, Barclays Corporate and Barclays Wealth divided by the sum of the average assets and average liabilities for those businesses.

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 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.

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Glossary

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

Operational risk - In the context of Risk Weighted Assets, a component of risk weighted assets that represents the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk.

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

Payment Protection Insurance (PPI) redress - Provision for the settlement of PPI mis-selling claims pending as at, and those after, 9 May 2011, following the Judicial Review proceedings.

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 Investments - Private equity investments.

Private-label securitisation - Residential mortgage backed security transactions sold or guaranteed by entities that are not sponsored or owned by the government.

Product structural hedge - An interest rate hedge which functions to reduce the economic impact of the volatility of short-term interest rate movements on balance sheet positions that can be matched to a specific product, e.g. customer balances that do not re-price with market rates.

Project Merlin - Encompasses statements made by the major UK banks (Barclays, HSBC, Lloyds Banking Group, RBS and Santander) and HM Government to demonstrate their clear and shared intent to work together to help the UK economy recover and grow, particularly with regard to promoting lending to business.

Recoveries Impairment Coverage Ratio - Impairment allowance held against recoveries balances expressed as a percentage of balance in recoveries.

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.

Reserve Capital Instruments (RCIs) - Hybrid issued capital securities which may be debt or equity accounted, depending on the terms. Under FSA rules, they qualify as other Tier 1 capital.

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).

Rest of World - See Barclays Corporate.

Retail and Business Banking (RBB) - UK Retail and Business Banking, Europe Retail and Business Banking, Africa Retail and Business Banking and Barclaycard.

Retail Loans - Loans to individuals rather than to financial institutions. It includes both secured and unsecured loans such as mortgages and credit card balances, as well as loans to certain smaller business customers.

Risk adjusted net interest margin - Annualised net interest income less the income statement impairment charge on loans and advances, divided by total average customer assets for the relevant businesses.

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 Capital Accord as implemented by the FSA.

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.

Securitisation positions - In the context of Capital Resources, a deduction from Core Tier 1 and Qualifying Tier 2 capital in respect of the Group’s exposure to securitisation assets, such as RMBS. A ‘securitisation’ in this context means a transaction or scheme, whereby the credit risk associated with an exposure or pool of exposures is tranched and has the following

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Glossary

characteristics: a) payments in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures; and (b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme.

Share by value - Share by value refers to the UK RBB share of total mortgage lending across the UK as sourced from the Bank of England.

SIV-Lites - Special Purpose Entities which invest in diversified portfolios of interest earning assets to take advantage of the spread differentials between the assets in the Structured Investment Vehicle (SIV) and the funding cost. Unlike SIVs they are not perpetual, making them more like CDOs, which have fixed maturity dates.

South Africa - The operations of Africa RBB based in South Africa.

Sovereign exposure(s) - Exposures to central governments, including holdings in government bonds and local government bonds.

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, which incorporates the requirements of International Financial Reporting Standards (IFRS). See ‘Adjusted profit before tax’ for details of the adjustments made to the statutory results in arriving at the adjusted profit.

Structural hedge - 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.

Structured Investment Vehicles (SIVs) - SPEs (Special Purpose Entities) which invest in diversified portfolios of interest earning assets to take advantage of the spread differentials between the assets in the SIV and the funding cost. See Risk Management section - Credit Market Exposures.

Structured notes - A structured note is an investment which pays a return linked to the value or level of a specified asset or index and sometimes offers capital protection if the value declines. Structured notes can be linked to equities, interest rates, funds, commodities and foreign currency.

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.

Sub-prime - Loans to borrowers typically having weak credit histories that include payment delinquencies and potentially more severe problems such as court judgements and bankruptcies. They may also display reduced repayment capacity as measured by credit scores, high debt-to-income ratios, or other criteria indicating heightened risk of default.

Tangible equity - Equity adjusted for the deduction of intangible assets and goodwill.

Tier 1 capital - A measure of a bank’s financial strength defined by the FSA. It captures Core Tier 1 capital plus other Tier 1 securities in issue, but is subject to a deduction in respect of material holdings in financial companies.

Tier 1 capital ratio - The ratio expresses Tier 1 capital as a percentage of risk weighted assets.

Tier 1 notes - Hybrid issued capital securities which are debt accounted. Under FSA rules, they qualify as other Tier 1 capital.

Tier 2 capital - Broadly includes qualifying subordinated debt and other Tier 2 securities in issue, eligible collective impairment allowances, unrealised available for sale equity gains and revaluation reserves. It is subject to deductions relating to the excess of expected loss over regulatory impairment allowance, securitisation positions and material holdings in financial companies.

UK - Geographic segment where Barclays operates comprising the UK.

UK Bank levy - A levy that applies to UK banks, building societies and the UK operations of foreign banks from 1 January 2011. The levy is payable based on a percentage of the chargeable equity and liabilities of the bank as at the balance sheet date starting with the 31 December 2011 balance sheet.

UK Retail and Business Banking (UK RBB) - Is a leading UK high street bank providing current account and savings products and Woolwich branded mortgages. UK RBB also provides unsecured loans, protection products and general insurance as well as banking and money transmission services to small and medium enterprises.

Unencumbered - Assets not used to secure liabilities or otherwise pledged.

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Glossary

US economic sanctions - US economic sanctions, administered by the Office of Foreign Assets Control, against designated foreign countries, nationals and others.

Wholesale loans/lending - Lending to larger businesses, financial institutions and sovereign entities.

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Index

Africa Retail and Business Banking	14	Liquidity pool	39
Accounting policies	65	Liquidity risk management framework	39
Acquisitions	66	Loans and advances to customers and banks	45
Administration and general expenses	66	Loss on disposal of subsidiaries,
Balance sheet	8	associates and joint ventures	66
Balance sheet leverage	38	Margins and balances	33
Barclaycard	16	Market risk	64
Barclays Capital	18	Net interest income	65
Barclays Corporate	20	Non-controlling interests	68
Barclays Wealth	22	Other reserves	74
Capital ratios	36	Performance highlights	1
Capital resources	36	Principal risks	35
Cash flow statement	9	Profit before tax	2
Competition and regulatory matters	78	Provisions	73
Contingent liabilities and commitments	74	Remuneration	30
Country exposures (selected Eurozone)	57	Results by quarter	26
Credit impairment charges and other credit		Results timetable	79
provisions	47	Retail credit risk	50
Credit market exposures	62	Retail forbearance programmes	54
Credit risk	44	Retirement benefits	73
Credit risk loans	48	Risk weighted assets	37
Derivative financial instruments	70	Share capital	74
Dividends on ordinary shares	69	Statement of comprehensive income	7
Earnings per share	69	Statement of changes in equity	9
Europe Retail and Business Banking	12	Tax	68
Financial instruments held at fair value	71	Tier 1 capital ratio	36
Funding structure	39	Total assets	37, 44
Glossary	80	Total capital ratio	36
Head Office Functions and Other Operations	25	UK Retail and Business Banking	10
Income statement	6	Wholesale credit risk	55
Investment Management	24
Legal proceedings	76

Barclays PLC – 2011 Results 88