6-K 1 a6847d.htm RESULTS ANNOUNCEMENT a6847d
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
February 20, 2024
 
Barclays PLC
(Name of Registrant)
 
1 Churchill Place
London E14 5HP
England
(Address of Principal Executive Office)
 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F
 
This Report on Form 6-K is filed by Barclays PLC.
 
This Report comprises:
 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.
 
EXHIBIT INDEX
 

 

 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
BARCLAYS PLC
 
(Registrant)
 
 
 
Date: February 20, 2024
 
 
 
By: /s/ Garth Wright
-------------------------------
 
Garth Wright
 
Assistant Secretary
 
 

 
Barclays PLC
 
2023 Results Announcement
 
31 December 2023
 
Results Announcement
Page
 
 
Notes
1
 
 
Performance Highlights
2
 
 
Group Finance Director’s Review
8
 
 
Results by Business
 
 
 
●Barclays UK
10
 
 
●Barclays International
13
 
 
●Head Office
18
 
 
Quarterly Results Summary
19
 
 
Quarterly Results by Business
20
 
 
Performance Management
 
 
 
●Margins and Balances
26
 
 
●Remuneration
27
 
 
Risk Management
 
 
 
●Risk Management and Principle Risks
29
 
 
●Credit Risk
30
 
 
●Market Risk
50
 
 
●Treasury and Capital Risk
51
 
 
Condensed Consolidated Financial Statements
60
 
 
Financial Statement Notes
65
 
 
Appendix: Non-IFRS Performance Measures
69
 
 
Shareholder Information
78
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839.
 
Notes
 
This document contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended).
 
The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the twelve months ended 31 December 2023 to the corresponding twelve months of 2022 and balance sheet analysis as at 31 December 2023 with comparatives relating to 31 December 2022. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.
 
There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.
 
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, which can be accessed at home.barclays/investor-relations
 
The information in this announcement, which was approved by the Board of Directors on 19 February 2024, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2023, which contain an unmodified audit report under Section 495 of the Companies Act 2006 (which does not make any statements under Section 498 of the Companies Act 2006) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
 
These results will be furnished on Form 6-K to the US Securities and Exchange Commission (SEC) as soon as practicable following its publication. Once furnished to the SEC, a copy of the Form 6-K will be available from the SEC’s website at www.sec.gov
 
Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal roadshows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.
 
Non-IFRS performance measures
 
Barclays’ management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ 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 performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 69 to 76 for definitions and calculations of non-IFRS performance measures included throughout this document, and reconciliations to the most directly comparable IFRS measures.
 
Forward-looking statements
 
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group’s future financial position, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions (including policy on dividends and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), plans and objectives for future operations and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents, pandemics and similar events beyond the Group’s control; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and requirements applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; reforms to benchmark interest rates and indices; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and global macroeconomic conditions, political stability and financial markets; political elections; developments in the UK’s relationship with the European Union (EU); the risk of cyberattacks, information or security breaches, technology failures or other operational disruptions and any subsequent impacts on the Group’s reputation, business or operations; the Group’s ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group’s control. As a result, the Group’s actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group’s forward-looking statements. In setting its targets and outlook for the period 2024-2026, Barclays has made certain assumptions about the macro-economic environment, including, without limitation, inflation, interest and unemployment rates, the different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in Barclays PLC’s filings with the SEC (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the financial year ended 31 December 2023), which are available on the SEC’s website at www.sec.gov
 
Subject to Barclays PLC’s obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US) in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
Performance Highlights
 
In 2023 Barclays delivered a return on tangible equity (RoTE) of 10.6% excluding Q423 structural cost actions1, with total capital distributions of £3.0bn2, equivalent to c.19.4p per share
 
C. S. Venkatakrishnan, Group Chief Executive, commented
“In 2023 Barclays delivered solid performance against a mixed macroeconomic backdrop, meeting its financial targets. Our strong 13.8% Common Equity Tier 1 (CET1) ratio enables us to deliver increased total capital distributions of £3.0bn to shareholders, up c.37% on 2022, which includes a further share buyback of £1.0bn. Our new three-year plan, which we will be announcing at the Investor Update today, is designed to further improve Barclays' operational and financial performance, driving higher returns, and predictable, attractive shareholder distributions”
 
Group FY23 RoTE of 10.6% and earnings per share (EPS) of 32.4p, excluding £0.9bn of Q423 structural cost actions
●Total capital distributions of £3.0bn announced in relation to 2023, up c.37% on 2022, reflecting a total dividend of 8.0p and total share buybacks of £1.75bn for 2023. This includes our intention to initiate a further share buyback of up to £1.0bn
Group net interest income (NII) of £12.7bn, up 20% year-on-year, with Barclays UK NII of £6.4bn, up 9% year-on-year, delivering a Barclays UK net interest margin (NIM) of 3.13%
Group cost: income ratio of 63% excluding Q423 structural cost actions
Group FY23 loan loss rate (LLR) of 46bps
CET1 ratio of 13.8% and tangible net asset value (TNAV) per share of 331p
 
2023 Key financial metrics:
 
 
Statutory
 
Excluding Q423 structural cost actions
 
Income
Profit before tax
Attributable profit/(loss)
LLR
TNAV per share
CET1 ratio
Total capital return
 
Cost: income ratio
RoTE
EPS
FY23
£25.4bn
£6.6bn
£4.3bn
46bps
331p
13.8%
£3.0bn
 
63%
10.6%
32.4p
Q423
£5.6bn
£0.1bn
£(0.1)bn
54bps
 
71%
5.1%
4.2p
 
2023 Performance highlights:
 
Group statutory RoTE was 9.0% (2022: 10.4%) with profit before tax of £6.6bn (2022: £7.0bn), including £0.9bn of structural cost actions in Q423, taking total structural cost actions for 2023 to £1.0bn
–Group income was £25.4bn, up 2% year-on-year
–Group total operating expenses were £16.9bn, an increase of 1% year-on-year
Excluding the impacts of Q423 structural cost actions and the Over-issuance of Securities in the prior year3:
Group RoTE of 10.6% (2022: 11.6%) with profit before tax of £7.5bn (2022: £7.7bn)
Group income of £25.4bn, up 3% year-on-year:
Barclays UK income increased 5% to £7.6bn, driven by NII growth from higher rates, including higher structural hedge income
Corporate and Investment Bank (CIB) income decreased 4% to £12.6bn, driven by lower client activity in both Global Markets and Investment Banking, partially offset by a strong performance in Corporate driven by Transaction Banking
–Consumer Cards and Payments (CC&P) income increased 18% to £5.3bn reflecting higher balances in US cards and favourability from higher rates and client balance growth in Private Bank
Group total operating expenses were £16.0bn, up 2% year-on-year. Cost: income ratio of 63% as the Group delivered positive cost: income jaws of 1%
 
1
The impact of the Q423 structural cost actions was £0.9bn. At Q323 Results the Group highlighted it was evaluating actions to reduce structural costs to help drive future returns. Given the materiality of these actions in Q423, certain 2023 performance measures included in this document exclude the impact of Q423 structural cost actions. Page 6 includes a reconciliation of FY23 financial results excluding the impact of Q423 structural cost actions. Total 2023 structural cost actions were £1.0bn (Q323 YTD: £0.1bn).
2
Includes total dividends and share buybacks announced in relation to 2023. Total dividend for 2023 of 8.0p per share comprises the 2.7p 2023 half-year dividend and the 5.3p full-year dividend for 2023. Total share buybacks announced in relation to 2023 include the £750m buyback announced at H123 and a further share buyback of up to £1.0bn announced today.
3
Excluding £0.3bn income gain and £1.0bn litigation and conduct charge in 2022 from the Over-issuance of Securities under Barclays Bank PLC's US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019. Page 6 includes a reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year
 
2023 Performance highlights (continued):
 
Credit impairment charges were £1.9bn (2022: £1.2bn) with an LLR of 46bps (2022: 30bps):
Barclays UK credit impairment charges were £0.3bn (2022: £0.3bn) with an LLR of 14bps (2022: 13bps), consistent with low delinquencies in UK cards and a high quality mortgage lending portfolio
CC&P credit impairment charges increased to £1.5bn (2022: £0.8bn) with an LLR of 354bps (2022: 175bps), driven by higher delinquencies in US cards, which was anticipated and led to higher coverage ratios
CET1 ratio of 13.8% (2022: 13.9%), with risk weighted assets (RWAs) of £342.7bn (December 2022: £336.5bn) and TNAV per share of 331p (December 2022: 295p)
 
Q423 Performance highlights:
 
Excluding the impacts of Q423 structural cost actions1:
Group RoTE was 5.1% (Q422: 8.9%) with profit before tax of £1.0bn (Q422: £1.3bn)
Group income was £5.6bn down 3% year-on-year:
–Barclays UK income was 9% lower, with NII broadly stable and net fees, commissions and other income down 41% reflecting one-off items and the transfer of Wealth Management & Investments (WM&I) to CC&P during Q223
–CC&P was 6% higher, driven by balance growth in US cards and the transfer of WM&I, partially offset by lower Payments income
–CIB income was 7% lower, reflecting decline in Global Markets against a record Q4222
Group total operating expenses were £4.0bn, broadly stable year-on-year
Credit impairment charges were £0.6bn (Q422: £0.5bn), with an LLR of 54bps (Q422: 49bps)
 
Impact of £0.9bn structural cost actions in Q423
 
To help drive future returns, Barclays has taken £0.9bn of structural cost actions in Q423 which are expected to result in gross cost savings of c.£0.5bn in 2024, with an expected payback period3 of less than 2 years
●Structural cost actions include initiatives across people, property and infrastructure, with the allocation by business and type as follows:
£0.2bn in Barclays UK, £0.2bn in CIB, £0.1bn in CC&P and £0.5bn in Head Office
£0.3bn related to People, £0.2bn related to Property and £0.4bn related to Infrastructure
 
1
Q423 structural cost actions of £0.9bn.
2
Period covering 2014-2023. Pre 2014 data was not restated following re-segmentation in 2016.
3
Payback period is the length of time to recoup the cost from the structural cost actions.
 
New Operating Divisions
 
Subsequent to FY23 reporting, Barclays will be managed and reported via five focused operating divisions:
–Barclays UK
–Barclays UK Corporate Bank
–Barclays Private Bank and Wealth Management
–Barclays Investment Bank
–Barclays US Consumer Bank
Barclays segmental reporting will reflect these five operating divisions, in addition to Head Office, from Q124. Further detail is provided in the 20 February 2024 Investor Update
This resegmentation will provide an enhanced and more granular disclosure of the performance of each of these operating divisions, alongside more accountability from an operational and management standpoint
Barclays 2021, 2022 and 2023 segmental performance, including Head Office, has been re-presented to reflect these new operating divisions. A resegmentation document may be accessed via the Barclays website at: home.barclays/investor-relations
 
Revised Group Financial Targets and Outlook:
 
Returns: targeting RoTE of greater than 10% in 2024 and c.10.5% excluding inorganic activity, with a greater than 12% target in 2026
Capital returns: plan to return at least £10bn of capital to shareholders between 2024 and 2026, through dividends and share buybacks, with a continued preference for buybacks. Plan to keep total dividend stable at 2023 level in absolute terms, with progressive dividend per share growth driven through share count reduction as a result of increased share buybacks. Dividends will continue to be paid semi-annually. This multiyear plan is subject to supervisory and Board approval, anticipated financial performance and our published CET1 ratio target range of 13-14%
Income: targeting Barclays Group NII excluding Barclays Investment Bank and Head Office of c.£10.7bn, of which Barclays UK NII of c.£6.1bn, in 20241. Targeting Group total income of c.£30bn in 2026
Costs: targeting Group cost: income ratio of c.63% in 2024. Targeting total Group operating expenses of c.£17.0bn and a Group cost: income ratio of high 50s in percentage terms in 2026. This includes c.£1bn of gross efficiency savings in 2024 and total gross efficiency savings of c.£2bn by 2026
Impairment: continue to expect an LLR of 50-60bps through the cycle
Capital: expect to continue to operate within the CET1 ratio target range of 13-14%
–Targeting Barclays Investment Bank RWAs of c.50% of Group RWAs in 2026
–Impact of regulatory change on RWAs in line with prior guidance, expected to be at lower end of 5–10% of Group RWAs. This includes c.£16bn RWAs expected in H224 due to Barclays US Consumer Bank moving to Internal Ratings-Based (IRB) models
 
1
This excludes the impact of Tesco Bank acquisition, which is expected to generate annualised NII of c.£400m in the first year post-completion. See Other Matters on page 9 for further details of the acquisition.
 
Barclays Group results
 
Year ended
 
Three months ended
 
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
 
£m
£m
% Change
 
£m
£m
% Change
Barclays UK
7,587
7,259
5
 
1,792
1,970
(9)
Corporate and Investment Bank
12,610
13,368
(6)
 
2,390
2,576
(7)
Consumer, Cards and Payments
5,308
4,499
18
 
1,364
1,286
6
Barclays International
17,918
17,867
 
3,754
3,862
(3)
Head Office
(127)
(170)
25
 
52
(31)
 
Total income
25,378
24,956
2
 
5,598
5,801
(3)
Operating costs
(16,714)
(14,957)
(12)
 
(4,735)
(3,748)
(26)
UK bank levy
(180)
(176)
(2)
 
(180)
(176)
(2)
Litigation and conduct
(37)
(1,597)
98
 
(5)
(79)
94
Total operating expenses
(16,931)
(16,730)
(1)
 
(4,920)
(4,003)
(23)
Other net (expenses)/income
(9)
6
 
 
(16)
10
 
Profit before impairment
8,438
8,232
3
 
662
1,808
(63)
Credit impairment charges
(1,881)
(1,220)
(54)
 
(552)
(498)
(11)
Profit before tax
6,557
7,012
(6)
 
110
1,310
(92)
Tax (charge)/credit
(1,234)
(1,039)
(19)
 
23
33
(30)
Profit after tax
5,323
5,973
(11)
 
133
1,343
(90)
Non-controlling interests
(64)
(45)
(42)
 
(25)
(22)
(14)
Other equity instrument holders
(985)
(905)
(9)
 
(219)
(285)
23
Attributable profit/(loss)
4,274
5,023
(15)
 
(111)
1,036
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
9.0%
10.4%
 
 
(0.9)%
8.9%
 
Average tangible shareholders' equity (£bn)
47.4
48.3
 
 
48.9
46.7
 
Cost: income ratio
67%
67%
 
 
88%
69%
 
Loan loss rate (bps)
46
30
 
 
54
49
 
Basic earnings per share
27.7p
30.8p
 
 
(0.7)p
6.5p
 
Dividend per share
8.0p
7.25p
 
 
 
 
 
Share buyback announced (£m)
1,750
1,000
 
 
 
 
 
Total payout equivalent per share
c.19.4p
c.13.4p
 
 
 
 
 
Basic weighted average number of shares (m)
15,445
16,333
(5)
 
15,092
15,828
(5)
Period end number of shares (m)
15,155
15,871
(5)
 
15,155
15,871
(5)
 
 
As at 31.12.23
As at 30.09.23
As at 31.12.22
Balance sheet and capital management1
£bn
£bn
£bn
Loans and advances at amortised cost
399.5
405.4
398.8
Loans and advances at amortised cost impairment coverage ratio
1.4%
1.4%
1.4%
Total assets
1,477.5
1,591.7
1,513.7
Deposits at amortised cost
538.8
561.3
545.8
Tangible net asset value per share
331p
316p
295p
Common equity tier 1 ratio
13.8%
14.0%
13.9%
Common equity tier 1 capital
47.3
48.0
46.9
Risk weighted assets
342.7
341.9
336.5
UK leverage ratio
5.2%
5.0%
5.3%
UK leverage exposure
1,168.3
1,202.4
1,130.0
 
 
 
 
Funding and liquidity
 
 
 
Group liquidity pool (£bn)
298.1
335.0
318.0
Liquidity coverage ratio2
161%
159%
156%
Net stable funding ratio3
138%
138%
137%
Loan: deposit ratio
74%
72%
73%
 
1
Refer to pages 55 to 59 for further information on how capital, RWAs and leverage are calculated.
2
The liquidity coverage ratio (LCR) is now shown on an average basis, based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency.
3
Represents average of the last four spot quarter end positions.
 
Reconciliation of financial results excluding adjusting items1
 
Year ended
31.12.23
 
 
 
31.12.22
 
 
 
 
 
Statutory
Adjusting items
Excluding adjusting items
 
Statutory
Adjusting items
Excluding adjusting items
 
 
 
£m
£m
£m
 
£m
£m
£m
 
% Change
Barclays UK
7,587
7,587
 
7,259
7,259
 
5
Corporate and Investment Bank
12,610
12,610
 
13,368
292
13,076
 
(4)
Consumer, Cards and Payments
5,308
5,308
 
4,499
4,499
 
18
Barclays International
17,918
17,918
 
17,867
292
17,575
 
2
Head Office
(127)
(127)
 
(170)
(170)
 
25
Total income
25,378
25,378
 
24,956
292
24,664
 
3
Barclays UK
(4,393)
(168)
(4,225)
 
(4,260)
(4,260)
 
1
Corporate and Investment Bank
(8,335)
(188)
(8,147)
 
(7,630)
(7,630)
 
(7)
Consumer, Cards and Payments
(3,243)
(118)
(3,125)
 
(2,731)
(2,731)
 
(14)
Barclays International
(11,578)
(306)
(11,272)
 
(10,361)
(10,361)
 
(9)
Head Office
(743)
(453)
(290)
 
(336)
(336)
 
14
Total operating costs
(16,714)
(927)
(15,787)
 
(14,957)
(14,957)
 
(6)
UK bank levy
(180)
(180)
 
(176)
(176)
 
(2)
Litigation and conduct
(37)
(37)
 
(1,597)
(966)
(631)
 
94
Total operating expenses
(16,931)
(927)
(16,004)
 
(16,730)
(966)
(15,764)
 
(2)
Other net (expenses)/income
(9)
(9)
 
6
6
 
 
Profit before impairment
8,438
(927)
9,365
 
8,232
(674)
8,906
 
5
Credit impairment charges
(1,881)
(1,881)
 
(1,220)
(1,220)
 
(54)
Profit before tax
6,557
(927)
7,484
 
7,012
(674)
7,686
 
(3)
Attributable profit
4,274
(739)
5,013
 
5,023
(552)
5,575
 
(10)
 
 
 
 
 
 
 
 
 
 
Average tangible shareholders' equity (£bn)
47.4
 
47.4
 
48.3
 
48.3
 
 
Return on average tangible shareholders' equity
9.0%
 
10.6%
 
10.4%
 
11.6%
 
 
Cost: income ratio
67%
 
63%
 
67%
 
64%
 
 
 
1
Adjusting items: Q423 structural cost actions in 2023 and impact of the Over-issuance of Securities in 2022.
 
Reconciliation of financial results excluding adjusting items1
 
Three months ended
31.12.23
 
31.12.22
 
 
 
Statutory
Adjusting items
Excluding adjusting items
 
Statutory
Adjusting items
Excluding adjusting items
 
 
 
£m
£m
£m
 
£m
£m
£m
 
% Change
Barclays UK
1,792
1,792
 
1,970
1,970
 
(9)
Corporate and Investment Bank
2,390
2,390
 
2,576
2,576
 
(7)
Consumer, Cards and Payments
1,364
1,364
 
1,286
1,286
 
6
Barclays International
3,754
3,754
 
3,862
3,862
 
(3)
Head Office
52
52
 
(31)
(31)
 
 
Total income
5,598
5,598
 
5,801
5,801
 
(3)
Barclays UK
(1,153)
(168)
(985)
 
(1,108)
(1,108)
 
11
Corporate and Investment Bank
(2,134)
(188)
(1,946)
 
(1,796)
(1,796)
 
(8)
Consumer, Cards and Payments
(925)
(118)
(807)
 
(747)
(747)
 
(8)
Barclays International
(3,059)
(306)
(2,753)
 
(2,543)
(2,543)
 
(8)
Head Office
(523)
(453)
(70)
 
(97)
(97)
 
28
Total operating costs
(4,735)
(927)
(3,808)
 
(3,748)
(3,748)
 
(2)
UK bank levy
(180)
(180)
 
(176)
(176)
 
(2)
Litigation and conduct
(5)
(5)
 
(79)
(79)
 
94
Total operating expenses
(4,920)
(927)
(3,993)
 
(4,003)
(4,003)
 
Other net (expenses)/income
(16)
(16)
 
10
10
 
 
Profit before impairment
662
(927)
1,589
 
1,808
1,808
 
(12)
Credit impairment charges
(552)
(552)
 
(498)
(498)
 
(11)
Profit before tax
110
(927)
1,037
 
1,310
1,310
 
(21)
Attributable (loss)/profit
(111)
(739)
628
 
1,036
1,036
 
(39)
 
 
 
 
 
 
 
 
 
 
Average tangible shareholders' equity (£bn)
48.9
 
48.9
 
46.7
 
46.7
 
 
Return on average tangible shareholders' equity
(0.9)%
 
5.1%
 
8.9%
 
8.9%
 
 
Cost: income ratio
88%
 
71%
 
69%
 
69%
 
 
 
1
Adjusting items: Q423 structural cost actions in 2023 and impact of the Over-issuance of Securities in 2022
 
Group Finance Director's Review
 
2023 Group performance
 
Barclays delivered a profit before tax of £6,557m (2022: £7,012m), RoTE of 9.0% (2022: 10.4%) and EPS of 27.7p (2022: 30.8p)
Group income increased 2% to £25,378m primarily driven by the net benefit from the higher interest rate environment, including continued structural hedge income, and higher balances in US cards, partially offset by the non-repeat of the prior year income from hedging arrangements related to the Over-issuance of Securities and lower income in Global Markets and Investment Banking
Group total operating expenses increased to £16,931m (2022: £16,730m)
Group operating expenses excluding litigation and conduct charges increased to £16,894m (2022: £15,133m) driven by:
£927m of structural cost actions in Q423 supporting the Group’s structural transformation and updated strategic priorities, bringing total structural cost actions for FY23 to £1,046m (2022: £151m)
the impact of business growth and the Kensington Mortgage Company (KMC) acquisition in Barclays UK, as well as investments in resilience and controls
the impact of inflation on the Group was more than offset by efficiency savings
Litigation and conduct charges decreased to £37m (2022: £1,597m). Prior year charges included £966m of costs related to the Over-issuance of Securities, £282m of customer remediation costs relating to legacy loan portfolios in CC&P and £165m related to the Devices Settlements1
Credit impairment charges were £1,881m (2022: £1,220m), driven by higher delinquencies in US cards, which was anticipated and led to higher coverage ratios. Total coverage ratio remains strong at 1.4% (December 2022: 1.4%)
The effective tax rate (ETR) was 18.8% (2022: 14.8%). The 2023 ETR includes tax relief on payments made under Additional Tier 1 (AT1) instruments and on holdings of inflation-linked government bonds
Attributable profit was £4,274m (2022: £5,023m)
Total assets decreased to £1,477.5bn (December 2022: £1,513.7bn) reflecting a decrease in derivatives driven by lower market volatility and a decrease in the forward interest rates, and a reduction in the liquidity pool primarily driven by lower customer deposits in Barclays UK reflecting broader market trends. This was partially offset by an increase in trading securities and client balances as we facilitate client demand in Global Markets
TNAV per share increased to 331p (December 2022: 295p) including: EPS of 27.7p, positive cash flow hedge reserve movements of 22p, and 8p from the reduction in share count following share buybacks of £1.25bn completed in 2023. This was partially offset by an 8p reduction from dividends paid during 2023 and net negative other reserve movements
 
Group capital and leverage
 
●The CET1 ratio decreased to 13.8% (December 2022: 13.9%) as RWAs increased by £6.2bn to £342.7bn partially offset by an increase in CET1 capital of £0.4bn to £47.3bn:
c.125bps increase from 2023 attributable profit, including the c.25bps negative impact of structural cost actions, of which c.10bps are offset in other capital movements
c.70bps decrease driven by returns to shareholders including the 8p per share total dividend and £1.25bn of share buybacks announced with FY22 and H123 results
c.10bps decrease from other capital movements, including the impact of regulatory change on 1 January 2023 relating to IFRS 9 transitional relief, the impact of the KMC acquisition, and movements in other regulatory capital deductions
c.50bps decrease as a result of a £13.2bn increase in RWAs excluding the impact of foreign exchange movements, primarily driven by higher CIB and CC&P RWAs
An £8.2bn decrease in RWAs as a result of foreign exchange movements was offset by a £1.1bn decrease in CET1 capital due to a decrease in the currency translation reserve
●The UK leverage ratio decreased to 5.2% (December 2022: 5.3%) primarily due to a £38.3bn increase in leverage exposure to £1,168.3bn, largely driven by an increase in trading portfolio assets within Global Markets
 
1
Refers to the settlements with the SEC and Commodity Futures Trading Commission (CFTC) in connection with their investigations of the use of unauthorised devices for business communications.
 
Group funding and liquidity
 
●The liquidity metrics remain well above regulatory requirements, underpinned by well-diversified sources of funding, a stable global deposit franchise and a highly liquid balance sheet
●The liquidity pool was £298.1bn (December 2022: £318.0bn). The decrease in the liquidity pool was driven by a reduction in wholesale funding, a slight reduction in overall deposits, with a decrease in Barclays UK deposits being largely offset by growth in Corporate deposits, and changes in business funding consumption
●The average1 Liquidity Coverage Ratio (LCR) increased to 161% (December 2022: 156%), equivalent to a surplus of £117.7bn (December 2022: £114.4bn)
●Total deposits remained largely stable at £538.8bn (December 2022: £545.8bn)
●The average2 Net Stable Funding Ratio (NSFR) was 138% (December 2022: 137%), which represents a £167.1bn (December 2022: £155.6bn) surplus above the 100% regulatory requirement
Wholesale funding outstanding, excluding repurchase agreements, was £176.8bn (December 2022: £184.0bn)
The Group issued £14.1bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) during 2023. The Group has a strong MREL position with a ratio of 33.6%, which is in excess of the regulatory requirement of 30.1% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer
 
Other matters
 
KMC acquisition: on 1 March 2023, Barclays completed the acquisition of UK specialist mortgage lender KMC, including a portfolio of mortgages totalling £2.2bn with an RWA impact of £0.8bn
Combination of the Private Bank and Barclays UK Wealth business: on 1 May 2023, WM&I was transferred from Barclays UK to CC&P, creating a combined Private Bank and Wealth Management business. The combination seeks to improve customer and client experience and create business synergies:
–The business transferred includes c.£28bn of invested assets, generating annualised income of c.£0.2bn
Purchase of Tesco Bank: Barclays announced on 9 February 2024 that Barclays Bank UK PLC has entered into an agreement with Tesco Personal Finance plc (operating using the trading name “Tesco Bank”) to acquire its retail banking business, which includes credit cards, unsecured personal loans, deposits and the operating infrastructure. Additionally, upon completion, Barclays Bank UK PLC will enter into a long-term, exclusive strategic partnership with Tesco Stores Limited for an initial period of 10 years to market and distribute credit cards, unsecured personal loans and deposits using the Tesco brand, as well as explore other opportunities to offer financial services to Tesco customers. The transaction involves the acquisition of approximately £8.3bn of unsecured lending balances, including approximately £4.2bn of gross credit card receivables and £4.1bn of gross unsecured personal loans, together with approximately £6.7bn in customer deposits. The acquisition is expected to reduce Barclays' CET1 ratio by c.30bps on completion, which is expected to occur in H224, subject to court sanction and regulatory approvals
Sale of German consumer finance business: Barclays is currently engaged in a process to sell its German consumer finance business (comprising credit cards, unsecured personal loans and deposits), currently included within CC&P, as part of our ambition to simplify Barclays and support our focus on growing our key businesses. Any sale is expected to complete in 2024 and would be expected to be accretive to Barclays' CET1 ratio
Barclays Payments business: going forward, Barclays will separate its issuing and merchant acquiring Payments businesses, moving the issuing business to the UK Corporate Bank and the merchant acquiring business to Head Office. Barclays has a UK market leading position in merchant acquiring, and continued investment into our propositions, particularly for Small and Medium Sized Enterprise (SME) clients, and leveraging greater scale are important. Barclays is considering various options to achieve this and has commenced a review of strategic partnership opportunities for the business. In connection with this, related goodwill and intangible assets of c.£0.3bn have been written down as structural cost actions, predominantly within Head Office
Disposal of Italian retail mortgages: Barclays is in discussions with respect to the disposal of its Italian retail mortgage book currently in Head Office. Should the disposal occur, it would be expected to generate a loss on sale but to be broadly neutral to Barclays’ CET1 ratio as a result of a reduction in RWAs
US credit card model migration to IRB: Barclays expects to migrate US credit card models from standardised to IRB in H224. This is a result of the PRA objective requiring banks using IRB modelling to apply it to at least 85% of their credit risk RWAs. This is expected to result in an increase in RWAs of c.£16bn in H224. Outside of US cards, Barclays is not expecting any further material impact from model migrations of current portfolios and has a number of planned mitigating actions
FCA motor finance review: in January 2024, the UK Financial Conduct Authority (FCA) announced that it was appointing a skilled person to undertake a review of the historical use of discretionary commission arrangements and sales in the motor finance market across several firms. The FCA plans to set out next steps on this matter by the end of September 2024
 
Anna Cross, Group Finance Director
 
1
Represents average of the last 12 spot month end ratios.
2
Represents average of the last four spot quarter end ratios.
 
Results by Business
 
Barclays UK
Year ended
 
Three months ended
 
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
6,431
5,893
9
 
1,575
1,600
(2)
Net fee, commission and other income
1,156
1,366
(15)
 
217
370
(41)
Total income
7,587
7,259
5
 
1,792
1,970
(9)
Operating costs
(4,393)
(4,260)
(3)
 
(1,153)
(1,108)
(4)
UK bank levy
(30)
(26)
(15)
 
(30)
(26)
(15)
Litigation and conduct
8
(41)
 
 
(4)
(13)
69
Total operating expenses
(4,415)
(4,327)
(2)
 
(1,187)
(1,147)
(3)
Other net income
 
 
1
 
Profit before impairment
3,172
2,932
8
 
605
824
(27)
Credit impairment charges
(304)
(286)
(6)
 
(37)
(157)
76
Profit before tax
2,868
2,646
8
 
568
667
(15)
Attributable profit
1,962
1,877
5
 
382
474
(19)
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
19.2%
18.7%
 
 
14.9%
18.7%
 
Average allocated tangible equity (£bn)
10.2
10.0
 
 
10.2
10.2
 
Cost: income ratio
58%
60%
 
 
66%
58%
 
Loan loss rate (bps)
14
13
 
 
7
27
 
Net interest margin
3.13%
2.86%
 
 
3.07%
3.10%
 
 
 
 
 
 
 
 
 
Key facts
 
 
 
 
 
 
 
UK mortgage balances (£bn)
160.9
162.2
 
 
 
 
 
Mortgage gross lending flow (£bn)
22.7
30.3
 
 
 
 
 
Average loan to value of mortgage portfolio1
54%
50%
 
 
 
 
 
Average loan to value of new mortgage lending1
63%
68%
 
 
 
 
 
Number of branches
306
481
 
 
 
 
 
Mobile banking active customers (m)
11.0
10.5
 
 
 
 
 
30 day arrears rate - Barclaycard Consumer UK
0.9%
0.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
 
 
 
 
Loans and advances to customers at amortised cost
202.8
205.1
 
 
 
 
 
Total assets
293.1
313.2
 
 
 
 
 
Customer deposits at amortised cost
241.1
258.0
 
 
 
 
 
Loan: deposit ratio
92%
87%
 
 
 
 
 
Risk weighted assets
73.5
73.1
 
 
 
 
 
Period end allocated tangible equity
10.2
10.1
 
 
 
 
 
 
1
Average loan to value (LTV) of mortgages is balance weighted and reflects both residential and buy-to-let (BTL) mortgage portfolios within the Home Loans portfolio.
 
Analysis of Barclays UK
Year ended
 
Three months ended
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
Personal Banking
4,729
4,540
4
 
1,067
1,229
(13)
Barclaycard Consumer UK
964
1,093
(12)
 
242
269
(10)
Business Banking
1,894
1,626
16
 
483
472
2
Total income
7,587
7,259
5
 
1,792
1,970
(9)
 
 
 
 
 
 
 
 
Analysis of credit impairment charges
 
 
 
 
 
 
 
Personal Banking
(170)
(167)
(2)
 
35
(120)
 
Barclaycard Consumer UK
(162)
30
 
 
(73)
(12)
 
Business Banking
28
(149)
 
 
1
(25)
 
Total credit impairment charges
(304)
(286)
(6)
 
(37)
(157)
76
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
 
 
 
 
 
Personal Banking
170.1
169.7
 
 
 
 
 
Barclaycard Consumer UK
9.7
9.2
 
 
 
 
 
Business Banking
23.0
26.2
 
 
 
 
 
Total loans and advances to customers at amortised cost
202.8
205.1
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
Personal Banking
185.4
195.6
 
 
 
 
 
Barclaycard Consumer UK
 
 
 
 
 
Business Banking
55.7
62.4
 
 
 
 
 
Total customer deposits at amortised cost
241.1
258.0
 
 
 
 
 
 
Barclays UK delivered a RoTE of 19.2% (20.4% excluding Q423 structural cost actions) supported by the higher interest rate environment and the continued investment in our transformation into a next-generation, digitised consumer bank.
 
2023 compared to 2022
 
Income statement
 
Profit before tax increased 8% to £2,868m with a RoTE of 19.2% (2022: 18.7%)
Total income increased 5% to £7,587m. NII increased 9% to £6,431m with a NIM of 3.13% (2022: 2.86%), as higher interest rates and associated structural hedge benefit outweighed mortgage margin pressure and adverse deposit dynamics reflecting wider market trends. Net fee, commission and other income decreased 15% to £1,156m including the impact of the transfer of WM&I to CC&P
Personal Banking income increased 4% to £4,729m, driven by higher interest rates, partially offset by mortgage margin compression and movements in deposit volumes and mix resulting from cost of living pressures and customers searching for yield
Barclaycard Consumer UK income decreased 12% to £964m as higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management
Business Banking income increased 16% to £1,894m driven by higher interest rates, partially offset by lower government scheme lending as repayments continue and lower deposit volumes
Total operating expenses increased 2% to £4,415m, including £168m impact from Q423 structural cost actions. Excluding the impact of Q423 structural cost actions, operating expenses decreased 2%, driven by the transfer of WM&I to CC&P partially offset by the impact of inflation and the acquisition of KMC. Ongoing efficiency savings continue to be reinvested, including in our transformation programme to support sustainable improvement to the cost: income ratio over the longer term
Credit impairment charges increased to £304m (2022: £286m), consistent with low delinquencies in UK cards and a high quality mortgage lending portfolio. UK cards 30 and 90 day arrears remained low at 0.9% (Q422: 0.9%) and 0.2% (Q422: 0.2%) respectively. The UK cards total coverage ratio was 6.8% (December 2022: 7.6%)
 
Balance sheet
Loans and advances to customers at amortised cost decreased by 1% to £202.8bn (December 2022: £205.1bn), primarily reflecting continued repayment of government scheme lending in Business Banking, subdued mortgage lending amid lower market demand, partially offset by the acquisition of KMC
Customer deposits at amortised cost decreased 7% to £241.1bn (December 2022: £258.0bn). Primarily driven by reduced current account balances in Personal and Business Banking, reflecting broader market trends. The loan: deposit ratio increased to 92% (December 2022: 87%)
RWAs increased to £73.5bn (December 2022: £73.1bn), primarily due to the acquisition of KMC, broadly offset by reduction across lending portfolios
 
Barclays International
Year ended
 
Three months ended
 
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
6,197
4,927
26
 
1,458
1,465
Net trading income
5,878
7,709
(24)
 
720
1,169
(38)
Net fee, commission and other income
5,843
5,231
12
 
1,576
1,228
28
Total income
17,918
17,867
 
3,754
3,862
(3)
Operating costs
(11,578)
(10,361)
(12)
 
(3,059)
(2,543)
(20)
UK bank levy
(136)
(133)
(2)
 
(136)
(133)
(2)
Litigation and conduct
(47)
(1,503)
97
 
(7)
(67)
90
Total operating expenses
(11,761)
(11,997)
2
 
(3,202)
(2,743)
(17)
Other net (expenses)/income
(2)
28
 
 
(14)
5
 
Profit before impairment
6,155
5,898
4
 
538
1,124
(52)
Credit impairment charges
(1,548)
(933)
(66)
 
(511)
(328)
(56)
Profit before tax
4,607
4,965
(7)
 
27
796
(97)
Attributable profit/(loss)
3,025
3,844
(21)
 
(124)
625
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
8.2%
10.2%
 
 
(1.3)%
6.4%
 
Average allocated tangible equity (£bn)
37.0
37.6
 
 
37.1
38.9
 
Cost: income ratio
66%
67%
 
 
85%
71%
 
Loan loss rate (bps)
87
54
 
 
114
75
 
Net interest margin
5.78%
5.02%
 
 
5.43%
5.71%
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
 
 
 
 
Loans and advances to customers at amortised cost
126.8
133.7
 
 
 
 
 
Loans and advances to banks at amortised cost
8.4
8.7
 
 
 
 
 
Debt securities at amortised cost
39.0
27.2
 
 
 
 
 
Loans and advances at amortised cost
174.2
169.6
 
 
 
 
 
Trading portfolio assets
174.6
133.8
 
 
 
 
 
Derivative financial instrument assets
255.2
301.7
 
 
 
 
 
Financial assets at fair value through the income statement
203.7
210.5
 
 
 
 
 
Cash collateral and settlement balances
103.6
107.7
 
 
 
 
 
Other assets
254.8
258.0
 
 
 
 
 
Total assets
1,166.1
1,181.3
 
 
 
 
 
Deposits at amortised cost
297.7
287.6
 
 
 
 
 
Derivative financial instrument liabilities
249.8
288.9
 
 
 
 
 
Loan: deposit ratio
58%
59%
 
 
 
 
 
Risk weighted assets
259.1
254.8
 
 
 
 
 
Period end allocated tangible equity
37.6
36.8
 
 
 
 
 
 
Analysis of Barclays International
 
 
 
 
 
 
 
Corporate and Investment Bank
Year ended
 
Three months ended
 
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
2,551
1,949
31
 
530
548
(3)
Net trading income
6,056
7,733
(22)
 
763
1,201
(36)
Net fee, commission and other income
4,003
3,686
9
 
1,097
827
33
Total income
12,610
13,368
(6)
 
2,390
2,576
(7)
Operating costs
(8,335)
(7,630)
(9)
 
(2,134)
(1,796)
(19)
UK bank levy
(129)
(126)
(2)
 
(129)
(126)
(2)
Litigation and conduct
6
(1,189)
 
 
(3)
(55)
95
Total operating expenses
(8,458)
(8,945)
5
 
(2,266)
(1,977)
(15)
Other net (expenses)/income
(3)
2
 
 
(6)
2
 
Profit before impairment
4,149
4,425
(6)
 
118
601
(80)
Credit impairment charges
(23)
(119)
81
 
(23)
(41)
44
Profit before tax
4,126
4,306
(4)
 
95
560
(83)
Attributable profit/(loss)
2,667
3,364
(21)
 
(61)
454
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
8.4%
10.2%
 
 
(0.8)%
5.4%
 
Average allocated tangible equity (£bn)
31.7
32.8
 
 
31.6
33.7
 
Cost: income ratio
67%
67%
 
 
95%
77%
 
Loan loss rate (bps)
2
9
 
 
7
13
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
 
 
 
 
Loans and advances to customers at amortised cost
87.8
90.5
 
 
 
 
 
Loans and advances to banks at amortised cost
7.4
8.1
 
 
 
 
 
Debt securities at amortised cost
38.9
27.2
 
 
 
 
 
Loans and advances at amortised cost
134.1
125.8
 
 
 
 
 
Trading portfolio assets
174.5
133.7
 
 
 
 
 
Derivative financial instrument assets
255.1
301.6
 
 
 
 
 
Financial assets at fair value through the income statement
203.6
210.5
 
 
 
 
 
Cash collateral and settlement balances
102.9
106.9
 
 
 
 
 
Other assets
205.4
222.6
 
 
 
 
 
Total assets
1,075.6
1,101.1
 
 
 
 
 
Deposits at amortised cost
217.7
205.8
 
 
 
 
 
Derivative financial instrument liabilities
249.7
288.9
 
 
 
 
 
Risk weighted assets
216.8
215.9
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
FICC
4,845
5,695
(15)
 
724
976
(26)
Equities
2,373
3,149
(25)
 
431
440
(2)
Global Markets
7,218
8,844
(18)
 
1,155
1,416
(18)
Advisory
593
768
(23)
 
171
197
(13)
Equity capital markets
219
166
32
 
38
40
(5)
Debt capital markets
1,148
1,281
(10)
 
301
243
24
Investment Banking fees
1,960
2,215
(12)
 
510
480
6
Corporate lending
475
(231)
 
 
40
(128)
 
Transaction banking
2,957
2,540
16
 
685
808
(15)
Corporate
3,432
2,309
49
 
725
680
7
Total income
12,610
13,368
(6)
 
2,390
2,576
(7)
 
Analysis of Barclays International
 
 
 
 
 
 
 
Consumer, Cards and Payments
Year ended
 
Three months ended
 
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
3,646
2,979
22
 
928
918
1
Net fee, commission, trading and other income
1,662
1,520
9
 
436
368
18
Total income
5,308
4,499
18
 
1,364
1,286
6
Operating costs
(3,243)
(2,731)
(19)
 
(925)
(747)
(24)
UK bank levy
(7)
(7)
 
(7)
(7)
Litigation and conduct
(53)
(314)
83
 
(4)
(12)
67
Total operating expenses
(3,303)
(3,052)
(8)
 
(936)
(766)
(22)
Other net income/(expenses)
1
26
(96)
 
(8)
3
 
Profit before impairment
2,006
1,473
36
 
420
523
(20)
Credit impairment charges
(1,525)
(814)
(87)
 
(488)
(287)
(70)
Profit before tax
481
659
(27)
 
(68)
236
 
Attributable profit/(loss)
358
480
(25)
 
(63)
171
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Return on average allocated tangible equity
6.7%
10.0%
 
 
(4.5)%
13.0%
 
Average allocated tangible equity (£bn)
5.3
4.8
 
 
5.5
5.2
 
Cost: income ratio
62%
68%
 
 
69%
60%
 
Loan loss rate (bps)
354
175
 
 
449
245
 
 
 
 
 
 
 
 
 
Key facts
 
 
 
 
 
 
 
US cards 30 day arrears rate
2.9%
2.2%
 
 
 
 
 
US cards customer FICO score distribution
 
 
 
 
 
 
 
<660
12%
11%
 
 
 
 
 
>660
88%
89%
 
 
 
 
 
Total number of payments clients
402k
395k
 
 
 
 
 
Value of payments processed (£bn)1
324
307
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
 
 
 
 
Loans and advances to customers at amortised cost
39.0
43.2
 
 
 
 
 
Total assets
90.5
80.2
 
 
 
 
 
Deposits at amortised cost
80.0
81.8
 
 
 
 
 
Risk weighted assets
42.3
38.9
 
 
 
 
 
 
 
 
 
 
 
 
 
Analysis of total income
£m
£m
% Change
 
£m
£m
% Change
International Cards and Consumer Bank
3,569
2,913
23
 
944
860
10
Private Bank
1,190
1,014
17
 
306
285
7
Payments
549
572
(4)
 
114
141
(19)
Total income
5,308
4,499
18
 
1,364
1,286
6
 
1
Includes £311bn (2022: £296bn) of merchant acquiring payments.
 
Barclays International delivered a RoTE of 8.2% (8.8% excluding Q423 structural cost actions of £306m) despite the reduced banking industry fee pool and lower client activity in Global Markets. Excluding Q423 structural cost actions, CIB delivered a RoTE of 8.9%, reflecting the benefits of income diversification and investment in sustainable growth, and CC&P delivered a RoTE of 8.6%, reflecting the impact of higher impairment charges, partially offset by balance growth and increased income from the continued investment in the business. Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US.
 
2023 compared to 2022
 
Income statement
 
Barclays International RoTE was 8.2% (2022: 10.2%) with a profit before tax of £4,607m (2022: £4,965m) including £306m (CIB: £188m, CC&P: £118m) of Q423 structural cost actions. CIB delivered a RoTE of 8.4% (2022: 10.2%) and CC&P 6.7% (2022: 10.0%)
Total income was broadly flat at £17,918m, prior year included a £292m income impact from hedging arrangements related to the Over-issuance of securities
Total operating expenses decreased 2% to £11,761m including £306m of structural cost actions in Q423. Prior year included £966m of litigation and conduct charges relating to the Over-issuance of securities
Excluding the impact of Q423 structural cost actions and the Over-issuance of Securities in the prior year1:
Total income increased to £17,918m (2022: 17,575m)
CIB income decreased 4% to £12,610m (2022: £13,076m)
Global Markets income decreased 16% to £7,218m against a record prior year comparative2. FICC income decreased 15% to £4,845m, reflecting lower market volatility and client activity. Equities income decreased 17% to £2,373m, driven by a decline in derivatives income reflecting less volatile equity market conditions.
Investment Banking fees decreased 12% to £1,960m due to the reduced fee pool across the industry3. Advisory decreased 23% and Debt capital markets decreased 10%, while Equity capital markets increased 32%
Within Corporate, Transaction banking income increased 16% to £2,957m driven by improved deposit margins in the higher interest rate environment with stable deposit balances. Corporate lending income increased to £475m (2022: £231m loss) mainly driven by lower costs of hedging and lower fair value losses on leverage finance lending net of mark to market gains on related hedges
CC&P income increased 18% to £5,308m
International Cards and Consumer Bank income increased 23% to £3,569m reflecting higher cards balances and improved margins, including the Gap Inc. portfolio acquisition in Q222
Private Bank income increased 17% to £1,190m, due to the transfer of WM&I from Barclays UK, client balance growth and improved deposits margin in the higher rate environment
Payments income decreased 4% to £549m driven by margin compression
Total operating expenses increased 4% to £11,455m
CIB total operating expenses increased 4% to £8,270m, reflecting investment in talent and technology, and the impact of inflation, partially offset by the non-repeat of prior year litigation and conduct charges mainly relating to Device Settlements4 and efficiency savings
CC&P total operating expenses increased 4% to £3,185m, driven by higher investment spend to support growth, mainly in marketing and partnership costs, the transfer of WM&I from Barclays UK, and the impact of inflation, partially offset by the non-repeat of prior year litigation and conduct charges mainly relating to customer remediation costs and efficiency savings
●Credit impairment charges were £1,548m (2022: £933m)
CIB credit impairment charges were £23m (2022: £119m), driven by single name charges, partially offset by the benefit of credit protection
CC&P credit impairment charges increased to £1,525m (2022: £814m), driven by higher delinquencies in US cards, which was anticipated and led to higher coverage ratios. 30 and 90 day arrears at 2.9% (Q422: 2.2%) and 1.5% (Q422: 1.2%) respectively. The US cards total coverage ratio was 10.2% (December 2022: 8.1%)
 
1
The Over-issuance of Securities in the prior year impacted Equities within Global markets, CIB and Barclays International only.
2
Period covering 2014-2023. Pre 2014 data was not restated following re-segmentation in 2016.
3
Data source: Dealogic for the period covering 1 January to 31 December 2023.
4
Refers to the settlements with the SEC and CFTC in connection with their investigations of the use of unauthorised devices for business communications.
 
Balance sheet
 
Loans and advances at amortised cost increased £4.6bn to £174.2bn driven by increased investment in debt securities in Treasury. In addition, there has been balance growth in CC&P which was offset by net loan repayments in CIB and transfer to held for sale of the German consumer finance business
Trading portfolio assets increased £40.8bn to £174.6bn driven by an increase in debt and equity securities as we facilitate client demand in Global Markets
Derivative assets and liabilities decreased £46.5bn and £39.1bn to £255.2bn and £249.8bn respectively reflecting lower market volatility and a decrease in the forward interest rates
Financial assets at fair value through the income statement decreased £6.8bn to £203.7bn driven by increased secured lending which was more than offset by trade optimisations
Deposits at amortised cost increased £10.1bn to £297.7bn driven by increased deposits in CIB
RWAs increased to £259.1bn (December 2022: £254.8bn) driven by higher CC&P RWAs
 
Head Office
Year ended
 
Three months ended
 
31.12.23
31.12.22
 
 
31.12.23
31.12.22
 
Income statement information
£m
£m
% Change
 
£m
£m
% Change
Net interest income
81
(248)
 
 
106
(324)
 
Net fee, commission and other income
(208)
78
 
 
(54)
293
 
Total income
(127)
(170)
25
 
52
(31)
 
Operating costs
(743)
(336)
 
 
(523)
(97)
 
UK bank levy
(14)
(17)
18
 
(14)
(17)
18
Litigation and conduct
2
(53)
 
 
6
1
 
Total operating expenses
(755)
(406)
(86)
 
(531)
(113)
 
Other net (expenses)/income
(7)
(22)
68
 
(2)
4
 
Loss before impairment
(889)
(598)
(49)
 
(481)
(140)
 
Credit impairment charges
(29)
(1)
 
 
(4)
(13)
69
Loss before tax
(918)
(599)
(53)
 
(485)
(153)
 
Attributable loss
(713)
(698)
(2)
 
(369)
(63)
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
Average allocated tangible equity (£bn)
0.2
0.7
 
 
1.6
(2.4)
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
 
 
 
 
 
Total assets
18.3
19.2
 
 
 
 
 
Risk weighted assets
10.2
8.6
 
 
 
 
 
Period end allocated tangible equity
2.3
(0.2)
 
 
 
 
 
 
 
2023 compared to 2022
 
Income statement
 
Loss before tax was £918m (2022: £599m) including £453m Q423 structural cost actions
Total income was an expense of £127m (2022: £170m) primarily reflecting hedge accounting and treasury items
Total operating expenses increased to £755m (2022: £406m) primarily driven by £453m of Q423 structural cost actions partially offset by lower litigation and conduct charges
Head Office structural cost actions principally include the software intangibles impairment related to the merchant acquiring business (c.£260m), and the Canary Wharf office lease exit (c.£140m)
 
Balance sheet
 
RWAs were £10.2bn (December 2022: £8.6bn) primarily driven by methodology and policy updates, and increases in non-customer assets
 
Quarterly Results Summary
 
Barclays Group
 
 
 
 
 
 
 
 
 
 
Q423
Q323
Q223
Q123
 
Q422
Q322
Q222
Q122
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
3,139
3,247
3,270
3,053
 
2,741
3,068
2,422
2,341
Net fee, commission and other income
2,459
3,011
3,015
4,184
 
3,060
2,883
4,286
4,155
Total income
5,598
6,258
6,285
7,237
 
5,801
5,951
6,708
6,496
Operating costs
(4,735)
(3,949)
(3,919)
(4,111)
 
(3,748)
(3,939)
(3,682)
(3,588)
UK bank levy
(180)
 
(176)
Litigation and conduct
(5)
(33)
1
 
(79)
339
(1,334)
(523)
Total operating expenses
(4,920)
(3,949)
(3,952)
(4,110)
 
(4,003)
(3,600)
(5,016)
(4,111)
Other net (expenses)/income
(16)
9
3
(5)
 
10
(1)
7
(10)
Profit before impairment
662
2,318
2,336
3,122
 
1,808
2,350
1,699
2,375
Credit impairment charges
(552)
(433)
(372)
(524)
 
(498)
(381)
(200)
(141)
Profit before tax
110
1,885
1,964
2,598
 
1,310
1,969
1,499
2,234
Tax credit/(charges)
23
(343)
(353)
(561)
 
33
(249)
(209)
(614)
Profit after tax
133
1,542
1,611
2,037
 
1,343
1,720
1,290
1,620
Non-controlling interests
(25)
(9)
(22)
(8)
 
(22)
(2)
(20)
(1)
Other equity instrument holders
(219)
(259)
(261)
(246)
 
(285)
(206)
(199)
(215)
Attributable (loss)/profit
(111)
1,274
1,328
1,783
 
1,036
1,512
1,071
1,404
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Return on average tangible shareholders' equity
(0.9)%
11.0%
11.4%
15.0%
 
8.9%
12.5%
8.7%
11.5%
Average tangible shareholders' equity (£bn)
48.9
46.5
46.7
47.6
 
46.7
48.6
49.0
48.8
Cost: income ratio
88%
63%
63%
57%
 
69%
60%
75%
63%
Loan loss rate (bps)
54
42
37
52
 
49
36
20
15
Basic earnings per share
(0.7)p
8.3p
8.6p
11.3p
 
6.5p
9.4p
6.4p
8.4p
Basic weighted average number of shares (m)
15,092
15,405
15,523
15,770
 
15,828
16,148
16,684
16,682
Period end number of shares (m)
15,155
15,239
15,556
15,701
 
15,871
15,888
16,531
16,762
 
 
 
 
 
 
 
 
 
 
Balance sheet and capital management1
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Loans and advances to customers at amortised cost
333.3
339.6
337.4
343.6
 
343.3
346.3
337.2
325.8
Loans and advances to banks at amortised cost
9.5
11.5
10.9
11.0
 
10.0
12.5
12.5
11.4
Debt securities at amortised cost
56.7
54.3
53.1
48.9
 
45.5
54.8
46.1
34.5
Loans and advances at amortised cost
399.5
405.4
401.4
403.5
 
398.8
413.7
395.8
371.7
Loans and advances at amortised cost impairment coverage ratio
1.4%
1.4%
1.4%
1.4%
 
1.4%
1.4%
1.4%
1.5%
Total assets
1,477.5
1,591.7
1,549.7
1,539.1
 
1,513.7
1,726.9
1,589.2
1,496.1
Deposits at amortised cost
538.8
561.3
554.7
555.7
 
545.8
574.4
568.7
546.5
Tangible net asset value per share
331p
316p
291p
301p
 
295p
286p
297p
294p
Common equity tier 1 ratio
13.8%
14.0%
13.8%
13.6%
 
13.9%
13.8%
13.6%
13.8%
Common equity tier 1 capital
47.3
48.0
46.6
46.0
 
46.9
48.6
46.7
45.3
Risk weighted assets
342.7
341.9
336.9
338.4
 
336.5
350.8
344.5
328.8
UK leverage ratio
5.2%
5.0%
5.1%
5.1%
 
5.3%
5.0%
5.1%
5.0%
UK leverage exposure
1,168.3
1,202.4
1,183.7
1,168.9
 
1,130.0
1,232.1
1,151.2
1,123.5
 
 
 
 
 
 
 
 
 
 
Funding and liquidity
 
 
 
 
 
 
 
 
 
Group liquidity pool (£bn)
298.1
335.0
330.7
333.0
 
318.0
325.8
342.5
319.8
Liquidity coverage ratio2
161%
159%
157%
157%
 
156%
156%
157%
159%
Net stable funding ratio3
138%
138%
139%
139%
 
137%
 
 
 
Loan: deposit ratio
74%
72%
72%
73%
 
73%
72%
70%
68%
 
1
Refer to pages 55 to 59 for further information on how capital, RWAs and leverage are calculated.
2
The Liquidity Coverage Ratio is based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency.
3
Represents average of the last four spot quarter end positions.
 
Barclays UK
 
 
 
 
 
 
 
 
 
 
Q423
Q323
Q223
Q123
 
Q422
Q322
Q222
Q122
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
1,575
1,578
1,660
1,618
 
1,600
1,561
1,393
1,339
Net fee, commission and other income
217
295
301
343
 
370
355
331
310
Total income
1,792
1,873
1,961
1,961
 
1,970
1,916
1,724
1,649
Operating costs
(1,153)
(1,058)
(1,090)
(1,092)
 
(1,108)
(1,069)
(1,085)
(998)
UK bank levy
(30)
 
(26)
Litigation and conduct
(4)
9
5
(2)
 
(13)
(3)
(16)
(9)
Total operating expenses
(1,187)
(1,049)
(1,085)
(1,094)
 
(1,147)
(1,072)
(1,101)
(1,007)
Other net income/(expenses)
 
1
(1)
Profit before impairment
605
824
876
867
 
824
843
623
642
Credit impairment charges
(37)
(59)
(95)
(113)
 
(157)
(81)
(48)
Profit before tax
568
765
781
754
 
667
762
623
594
Attributable profit
382
531
534
515
 
474
549
458
396
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Loans and advances to customers at amortised cost
202.8
204.9
206.8
208.2
 
205.1
205.1
205.9
207.3
Total assets
293.1
299.9
304.8
308.6
 
313.2
316.8
318.8
317.2
Customer deposits at amortised cost
241.1
243.2
249.8
254.3
 
258.0
261.0
261.5
260.3
Loan: deposit ratio
92%
92%
90%
90%
 
87%
86%
85%
85%
Risk weighted assets
73.5
73.2
73.0
74.6
 
73.1
73.2
72.2
72.7
Period end allocated tangible equity
10.2
10.1
10.1
10.3
 
10.1
10.1
9.9
10.1
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
14.9%
21.0%
20.9%
20.0%
 
18.7%
22.1%
18.4%
15.6%
Average allocated tangible equity (£bn)
10.2
10.1
10.2
10.3
 
10.2
9.9
10.0
10.1
Cost: income ratio
66%
56%
55%
56%
 
58%
56%
64%
61%
Loan loss rate (bps)
7
10
17
20
 
27
14
9
Net interest margin
3.07%
3.04%
3.22%
3.18%
 
3.10%
3.01%
2.71%
2.62%
 
Analysis of Barclays UK
Q423
Q323
Q223
Q123
 
Q422
Q322
Q222
Q122
Analysis of total income
£m
£m
£m
£m
 
£m
£m
£m
£m
Personal Banking
1,067
1,165
1,244
1,253
 
1,229
1,212
1,077
1,022
Barclaycard Consumer UK
242
238
237
247
 
269
283
265
276
Business Banking
483
470
480
461
 
472
421
382
351
Total income
1,792
1,873
1,961
1,961
 
1,970
1,916
1,724
1,649
 
 
 
 
 
 
 
 
 
 
Analysis of credit impairment charges
 
 
 
 
 
 
 
 
 
Personal Banking
35
(85)
(92)
(28)
 
(120)
(26)
(42)
21
Barclaycard Consumer UK
(73)
29
(35)
(83)
 
(12)
2
84
(44)
Business Banking
1
(3)
32
(2)
 
(25)
(57)
(42)
(25)
Total credit impairment charges
(37)
(59)
(95)
(113)
 
(157)
(81)
(48)
 
 
 
 
 
 
 
 
 
 
Analysis of loans and advances to customers at amortised cost
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Personal Banking
170.1
172.3
173.3
173.6
 
169.7
168.7
167.1
166.5
Barclaycard Consumer UK
9.7
9.6
9.3
9.0
 
9.2
9.0
8.8
8.4
Business Banking
23.0
23.0
24.2
25.6
 
26.2
27.4
30.0
32.4
Total loans and advances to customers at amortised cost
202.8
204.9
206.8
208.2
 
205.1
205.1
205.9
207.3
 
 
 
 
 
 
 
 
 
 
Analysis of customer deposits at amortised cost
 
 
 
 
 
 
 
 
 
Personal Banking
185.4
186.1
191.1
194.3
 
195.6
197.3
197.0
196.6
Barclaycard Consumer UK
 
Business Banking
55.7
57.1
58.7
60.0
 
62.4
63.7
64.5
63.7
Total customer deposits at amortised cost
241.1
243.2
249.8
254.3
 
258.0
261.0
261.5
260.3
 
Barclays International
 
 
 
 
 
 
 
 
 
 
Q423
Q323
Q223
Q123
 
Q422
Q322
Q222
Q122
Income statement information
£m
£m
£m
£m
 
£m
£m
£m
£m
Net interest income
1,458
1,655
1,730
1,354
 
1,465
1,497
1,029
936
Net trading income
720
1,461
1,278
2,419
 
1,169
1,328
2,766
2,446
Net fee, commission and other income
1,576
1,326
1,432
1,509
 
1,228
1,240
1,321
1,442
Total income
3,754
4,442
4,440
5,282
 
3,862
4,065
5,116
4,824
Operating costs
(3,059)
(2,816)
(2,747)
(2,956)
 
(2,543)
(2,776)
(2,537)
(2,505)
UK bank levy
(136)
 
(133)
Litigation and conduct
(7)
(10)
(33)
3
 
(67)
396
(1,319)
(513)
Total operating expenses
(3,202)
(2,826)
(2,780)
(2,953)
 
(2,743)
(2,380)
(3,856)
(3,018)
Other net (expenses)/income
(14)
3
6
3
 
5
10
5
8
Profit before impairment
538
1,619
1,666
2,332
 
1,124
1,695
1,265
1,814
Credit impairment charges
(511)
(358)
(275)
(404)
 
(328)
(295)
(209)
(101)
Profit before tax
27
1,261
1,391
1,928
 
796
1,400
1,056
1,713
Attributable (loss)/profit
(124)
848
953
1,348
 
625
1,136
783
1,300
 
 
 
 
 
 
 
 
 
 
Balance sheet information
£bn
£bn
£bn
£bn
 
£bn
£bn
£bn
£bn
Loans and advances to customers at amortised cost
126.8
130.8
126.6
131.0
 
133.7
137.0
126.7
113.9
Loans and advances to banks at amortised cost
8.4
10.3
9.7
9.8
 
8.7
11.0
11.3
10.2
Debt securities at amortised cost
39.0
36.4
35.2
30.8
 
27.2
36.2
29.3
20.7
Loans and advances at amortised cost
174.2
177.5
171.5
171.6
 
169.6
184.2
167.3
144.8
Trading portfolio assets
174.6
155.4
165.1
137.7
 
133.8
126.3
126.9
134.1
Derivative financial instrument assets
255.2
280.4
264.9
256.6
 
301.7
415.7
343.5
288.8
Financial assets at fair value through the income statement
203.7
238.3
232.2
245.0
 
210.5
244.7
209.3
203.8
Cash collateral and settlement balances
103.6
136.0
123.9
125.5
 
107.7
163.3
128.5
132.0
Other assets
254.8
285.5
268.8
275.0
 
258.0
257.2
275.1
255.5
Total assets
1,166.1
1,273.1
1,226.4
1,211.4
 
1,181.3
1,391.4
1,250.6
1,159.0
Deposits at amortised cost
297.7
318.2
305.0
301.6
 
287.6
313.2
307.4
286.1
Derivative financial instrument liabilities
249.8
268.3
254.5
246.7
 
288.9
394.2
321.2
277.2
Loan: deposit ratio
58%
56%
56%
57%
 
59%
59%
54%
51%
Risk weighted assets
259.1
259.2
254.6
255.1
 
254.8
269.3
263.8
245.1
Period end allocated tangible equity
37.6
37.1
36.7
36.8
 
36.8
38.8
38.0
35.6
 
 
 
 
 
 
 
 
 
 
Performance measures
 
 
 
 
 
 
 
 
 
Return on average allocated tangible equity
(1.3)%
9.2%
10.3%
14.5%
 
6.4%
11.6%
8.4%
14.8%
Average allocated tangible equity (£bn)
37.1
36.8
37.1
37.1
 
38.9
39.1
37.3
35.1
Cost: income ratio
85%
64%
63%
56%
 
71%
59%
75%
63%
Loan loss rate (bps)
114
78
63
94
 
75
62
49
28
Net interest margin
5.43%
5.98%
5.85%
5.87%
 
5.71%
5.58%
4.41%
4.15%
 
Analysis of Barclays International
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Investment Bank
Q423
Q323
Q223
Q123
 
Q422
Q322
Q222
Q122