barc201304246k.htm
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
April 24, 2013
 
Barclays PLC and

Barclays Bank PLC
(Names of Registrants)
 
 
 1 Churchill Place

London E14 5HP
England
(Address of Principal Executive Offices)

 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

 
Form 20-F x           Form 40-F

 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 
Yes           No x

 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):

 
This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays
Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is
owned by Barclays PLC.

 
This Report comprises:

 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.


 
 
EXHIBIT INDEX
 
 
Interim Management Statement dated 24 April 2013







 




SIGNATURES

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
BARCLAYS PLC
(Registrant)

 
Date: April 24, 2013
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Deputy Secretary
 
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: April 24, 2013
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Joint Secretary
 
 


 
 
 

 
Barclays PLC
Interim Management Statement


31 March 2013
 

 
 

 
Table of Contents
 
Interim Management Statement
Page
Performance Highlights
4
Barclays Results by Quarter
6
Group Performance Review
7
Results by Business

  
—  Retail and Business Banking (RBB)

  
-     UK
10
­  -     Europe
11
­  - Africa
12
—  Barclaycard
13
—  Investment Bank
14
—  Corporate Banking
16
—  Wealth and Investment Management
18
—  Head Office and Other Operations
19
Appendix I – Quarterly Results Summary
20
Appendix II – Performance Management
23
Appendix III – Balance Sheet and Capital
26
Appendix IV – Credit Risk

 
—  Retail and Wholesale Loans and Advances to Customers
30
—  Group Exposures to Eurozone Countries
33
—  Credit Market Exposures
40
Appendix V – Other Information
41
   
 
 
 
 
 
 
 
 
 

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

 
Notes
 
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months to 31 March 2013 to the corresponding three months of 2012 and balance sheet comparatives relate to 31 December 2012. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of pounds sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US dollars respectively.
 
The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011), the reallocation of elements of the Head Office results to businesses and portfolio restatements between businesses, as detailed in our announcement on 16 April 2013.
 
Adjusted profit before tax and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant and not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; gains on debt buy-backs; impairment and disposal of the investment in BlackRock, Inc.; the provision for Payment Protection Insurance redress payments and claims management costs (PPI redress); the provision for interest rate hedging products redress and claims management costs (interest rate hedging products redress); goodwill impairments; and gains and losses on acquisitions and disposals. The regulatory penalties relating to the industry-wide investigation into the setting of interbank offered rates have not been excluded from adjusted measures.
 
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the Results glossary that can be accessed at www.barclays.com/results.
 
The financial information on which this Interim Management Statement is based, and other data set out in the appendices to this statement, are unaudited and have been prepared in accordance with Barclays’ previously stated accounting policies described in the 2012 Annual Report.
 
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 British Bank Association 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 announcement, which was approved by the Board of Directors on 23 April 2013, does not comprise statutory accounts or interim financial statements within the meaning of Section 434 of the Companies Act 2006 and IAS 34 Interim Financial Reporting respectively. Statutory accounts for the year ended 31 December 2012, 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.
 
For qualifying US and Canadian resident ADR holders, the interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will mail the interim dividend on 7 June 2013 to ADR holders on the record on 3 May 2013.
 
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”, “projected”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe”, “achieve” or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group’s future financial position, income growth, assets, impairment charges and provisions, business strategy, capital ratios, leverage, payment of dividends, projected levels of growth in the banking and financial markets, projected costs, commitments in connection with the Transform Programme, 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 macroeconomic and business conditions, the effects of continued volatility in credit markets, market related risks such as changes in interest rates and foreign exchange rates, effects of changes in valuation of credit market exposures, changes in valuation of issued 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 Eurozone), changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards (“IFRS”) and prudential capital rules applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards, the outcome of current and future legal proceedings, the success of future acquisitions, disposals 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 speak only as of the date they are made. Except as required by the Prudential Regulation Authority, the Financial Conduct Authority, the London Stock Exchange plc (the “LSE”) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein 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 published or may publish via the Regulatory News Service of the LSE and/or has filed or may file with the US Securities and Exchange Commission.
 
Performance Highlights
 
“We set out in our Strategic Review in February our path to become the “Go-To” bank for all our stakeholders. While there remains much to do to build a stronger and more resilient Barclays, we are completely focused on executing our Transform programme and are making good early progress. 
 
Strategic cost management is a critical factor in delivering our commitments. We have recognised around £500m of ‘costs to achieve Transform’ in the first quarter, reflecting our immediate priorities to reduce our European retail branch network in order to focus on the mass-affluent segment and on re-positioning our equities and investment banking operations in Asia and Europe.  As indicated in the Strategic Review, we expect to recognise a further £500m of costs to achieve Transform in 2013.

For the first quarter, adjusted profit before tax was £1.8bn including the costs to achieve, driven by good momentum across the businesses, particularly in the Investment Bank, Barclaycard and Wealth and Investment Management.

In our goal to become the ‘Go-To’ bank we have not chosen an easy path for Barclays, but we have chosen the right one.”

 
Antony Jenkins, Chief Executive

 
 
 ·  Adjusted profit before tax was down 25% (£609m) to £1,786m.  Excluding costs to achieve Transform of £514m and non-recurrence of a £235m gain in Q1 12 in relation to hedges of employee share awards would have resulted in
         an increase in adjusted profit before tax of 6%

 ·  Statutory profit before tax improved to £1,535m (Q1 12: £525m loss), reflecting a reduced own credit charge of £251m (Q1 12: £2,620m)
 
 ·  Adjusted return on average shareholders’ equity decreased to 7.6% (Q1 12: 12.4%) reflecting the costs to achieve Transform. Statutory return on average shareholders’ equity improved to 6.5% (Q1 12: negative 4.5%)
 
 ·  Adjusted income decreased 5% to £7,734m, principally due to non-recurrence of the gain in relation to hedges of employee share awards. Investment Bank income was up 1% at £3,463m (Q1 12: £3,436m) and was up 34% on Q4
         12
 
 ·  Credit impairment charges decreased 10% to £706m, with an annualised loan loss rate of 56bps (Q1 12: 63bps), principally reflecting improvements in the Investment Bank and Corporate Banking
 
 ·  Adjusted operating expenses were up 7% at £5,296m. This reflected £514m of costs to achieve Transform, restructuring principally in Europe RBB and the Investment Bank, partially offset by a £183m reduction in other operating
         expenses. Adjusted cost to income ratio was 68% (Q1 12: 61%) with the increase attributable to costs to achieve Transform
 
 ·  Risk weighted assets increased 3% to £398bn primarily driven by foreign currency movements
 
 ·  Core Tier 1 ratio strengthened to 11.0% (2012: 10.8%), principally reflecting capital generated from earnings and the exercise of warrants
 
 ·  Net asset value per share of 405p (2012: 414p) and net tangible asset value per share of 344p (2012: 349p) reflecting an increase in shares issued, including the exercise of warrants
 
 ·  We provided an estimated £20bn of Funding for Lending Scheme (FLS) eligible gross new lending to UK households and businesses in Q1 13. Barclays was the leading provider of loans to UK households and businesses under
         the national loan guarantee scheme and the FLS through Q4 12
 
 

 
 
 
 
Performance Highlights
Barclays Unaudited Results  
Adjusted1 
  
Statutory1 
for the three months ended 
31.03.13
31.03.12
  
  
31.03.13
31.03.12
  
  
£m
£m
% Change 
  
£m
£m
% Change 
Total income net of insurance claims 
7,734 
8,108 
(5) 
  
7,483 
5,488 
36  
Credit impairment charges and other provisions 
(706)
(784)
(10) 
  
(706)
(784)
(10) 
Net operating income  
7,028 
7,324 
(4) 
  
6,777 
4,704 
44  
Operating expenses excluding costs to achieve Transform  
(4,782)
(4,965)
(4) 
  
(4,782)
(5,265)
(9) 
Costs to achieve Transform 
(514)
- 
  
  
(514)
- 
  
Operating expenses 
(5,296)
(4,965)
7  
  
(5,296)
(5,265)
1  
Other net income2 
54 
36 
50  
  
54 
36 
50  
Profit/(loss) before tax  
1,786 
2,395 
(25) 
  
1,535 
(525)
  
Profit/(loss) after tax   
1,215 
1,820 
(33) 
  
1,044 
(385)
  
  
    
  
      
  
Performance Measures 
    
  
      
  
Return on average shareholders' equity 
7.6%
12.4%
  
  
6.5%
(4.5%)
  
Return on average tangible shareholders' equity 
9.0%
14.6%
  
  
7.6%
(5.3%)
  
Return on average risk weighted assets 
1.2%
1.8%
  
  
1.1%
(0.4%)
  
Cost: income ratio 
68%
61%
  
  
71%
96%
  
Loan loss rate (bps) 
56 
63 
  
  
56 
63 
  
  
    
  
      
  
Basic earnings/(loss) per share  
8.1p
13.2p
  
  
6.7p
(4.9p)
  
Dividend per share  
1.0p
1.0p
  
  
1.0p
1.0p
  
   
    
  
      
  
Capital and Balance Sheet  
    
  
  
31.03.13
31.12.12
  
Core Tier 1 ratio  
    
  
  
11.0%
10.8%
  
Risk weighted assets  
    
  
  
£398bn
£387bn
  
Adjusted gross leverage 
    
  
  
20x
19x
  
Group liquidity pool  
    
  
  
£141bn
£150bn
  
Net asset value per share  
    
  
  
405p
414p
  
Net tangible asset value per share  
    
  
  
344p
349p
  
Loan: deposit ratio  
    
  
  
105%
110%
  
   
    
  
      
  
Adjusted profit reconciliation 
    
  
  
31.03.13
31.03.12
  
Adjusted profit before tax 
    
  
  
1,786 
2,395 
  
Own credit 
    
  
  
(251)
(2,620)
  
Provision for PPI redress 
    
  
  
- 
(300)
  
Statutory profit/(loss) before tax 
    
  
  
1,535 
(525)
  
  
    
  
      
  

 
Adjusted1 
  
Statutory1 
 
31.03.13
31.03.12
  
  
31.03.13
31.03.12
  
Profit/(Loss) Before Tax by Business
£m
£m
% Change 
  
£m
£m
% Change 
UK RBB
299 
232 
29  
  
299 
(68)
  
Europe RBB
(462)
(72)
  
  
(462)
(72)
  
Africa RBB
81 
132 
(39) 
  
81 
132 
(39) 
Barclaycard
363 
347 
5  
  
363 
347 
5  
Investment Bank
1,315 
1,182 
11  
  
1,315 
1,182 
11  
Corporate Banking
183 
203 
(10) 
  
183 
203 
(10) 
Wealth and Investment Management
60 
50 
20  
  
60 
50 
20  
Head Office and Other Operations
(53)
321 
  
  
(304)
(2,299)
  
Total profit before tax
1,786 
2,395 
(25) 
  
1,535 
(525)
  


1  
The comparatives on pages 5 to 24 have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011), the reallocation of elements of Head Office results to businesses and portfolio restatements between businesses, as detailed in our announcement on 16 April 2013.
 
2  
Comprises: share of post-tax results of associates and joint ventures; profit or loss on disposal of subsidiaries, associates and joint ventures; and gains on acquisitions.
 
 
 
 
 
Barclays Results by Quarter
 
Barclays Results by Quarter 
Q113
  
Q412
Q312
Q212
Q112
  
Q411
Q311
Q211
  
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted basis  
                    
Total income net of insurance claims  
7,734 
  
6,867 
7,002 
7,384 
8,108 
  
6,213 
7,001 
7,549 
Credit impairment charges and other provisions  
(706)
  
(825)
(805)
(926)
(784)
  
(951)
(1,023)
(907)
Net operating income  
7,028 
  
6,042 
6,197 
6,458 
7,324 
  
5,262 
5,978 
6,642 
Operating expenses (excluding UK bank levy and costs to achieve Transform)  
(4,782)
  
(4,345)
(4,353)
(4,555)
(4,965)
  
(4,441)
(4,686)
(4,967)
UK bank levy  
- 
  
(345)
- 
- 
- 
  
(325)
- 
- 
Costs to achieve Transform 
(514)
  
- 
- 
- 
- 
  
- 
- 
- 
Operating expenses 
(5,296)
  
(4,690)
(4,353)
(4,555)
(4,965)
  
(4,766)
(4,686)
(4,967)
Other net income 
54 
  
43 
21 
41 
36 
  
5 
18 
19 
Adjusted profit before tax  
1,786 
  
1,395 
1,865 
1,944 
2,395 
  
501 
1,310 
1,694 
   
                    
Adjusting items  
                    
Own credit  
(251)
  
(560)
(1,074)
(325)
(2,620)
  
(263)
2,882 
440 
Gains on debt buy-backs  
- 
  
- 
- 
- 
- 
  
1,130 
- 
- 
Impairment and gain/(loss) on disposal of BlackRock investment 
- 
  
- 
- 
227 
- 
  
- 
(1,800)
(58)
Provision for PPI redress 
- 
  
(600)
(700)
- 
(300)
  
- 
- 
(1,000)
Provision for interest rate hedging products redress 
- 
  
(400)
- 
(450)
- 
  
- 
- 
- 
Goodwill impairment  
- 
  
- 
- 
- 
- 
  
(550)
- 
(47)
(Losses)/gains on acquisitions and disposals  
- 
  
- 
- 
- 
- 
  
(32)
3 
(67)
Statutory profit/(loss) before tax 
1,535 
  
(165)
91 
1,396 
(525)
  
786 
2,395 
962 
Statutory profit/(loss) after tax 
1,044 
  
(364)
(13)
943 
(385)
  
581 
1,345 
721 
  
                    
Attributable to: 
                    
Equity holders of the parent 
839 
  
(589)
(183)
746 
(598)
  
335 
1,132 
465 
Non-controlling interests 
205 
  
225 
170 
197 
213 
  
246 
213 
256 
  
                    
Adjusted basic earnings per share  
8.1p
  
7.2p
8.3p
9.2p
13.2p
  
1.0p
6.8p
8.7p
Adjusted cost: income ratio  
68%
  
68%
62%
62%
61%
  
77%
67%
66%
Basic earnings/(loss) per share  
6.7p
  
(4.8p)
(1.5p)
6.1p
(4.9p)
  
2.8p
9.4p
3.9p
Cost: income ratio  
71%
  
90%
85%
69%
96%
  
75%
58%
76%
  
                    

Adjusted Profit/(Loss) Before Tax by Business 
 
Q113
  
 
Q412
 
Q312
 
Q212
 
Q112
  
 
Q411
 
Q311
 
Q211
  
£m
  
£m
£m
£m
£m
  
£m
£m
£m
UK RBB 
299 
  
275 
358 
360 
232 
  
162 
429 
378 
Europe RBB 
(462)
  
(114)
(81)
(76)
(72)
  
(176)
21 
(109)
Africa RBB 
81 
  
105 
34 
51 
132 
  
231 
191 
178 
Barclaycard 
363 
  
335 
396 
404 
347 
  
261 
367 
273 
Investment Bank 
1,315 
  
760 
988 
1,060 
1,182 
  
(32)
210 
888 
Corporate Banking 
183 
  
61 
88 
108 
203 
  
(10)
140 
37 
Wealth and Investment Management 
60 
  
105 
70 
49 
50 
  
43 
70 
34 
Head Office and Other Operations 
(53)
  
(132)
12 
(12)
321 
  
22 
(118)
15 
Total profit before tax 
1,786 
  
1,395 
1,865 
1,944 
2,395 
  
501 
1,310 
1,694 
 
 
 
 
 
Group Performance Review
 
Income Statement
 
—  
Adjusted profit before tax decreased £609m to £1,786m, driven by costs to achieve Transform of £514m in Q1 13 and by non-recurrence of gains of £235m in relation to hedges of employee share awards during Q1 12
 
—  
Statutory profit before tax improved to £1,535m (Q1 12: loss of £525m), reflecting a significantly lower own credit charge of £251m (Q1 12: £2,620m)
 
—  
Adjusted return on average shareholders’ equity decreased to 7.6% (Q1 12: 12.4%) with an improvement in statutory return on average shareholders’ equity to 6.5% (Q1 12: negative 4.5%)
 
—  
Adjusted income decreased 5% to £7,734m, driven by non-recurrence of gains of £235m in relation to hedges of employee share awards in Head Office in Q1 12. Investment Bank income was up 1% at £3,463m driven by increases in Equities and Prime Services, and Investment Banking, partially offset by a decrease in Fixed Income, Currency and Commodities, and was up 34% on Q4 12
 
—  
Customer net interest income for RBB, Barclaycard, Corporate Banking and Wealth and Investment Management was broadly stable at £2,509m (Q1 12: £2,449m). Total net interest income remained stable at £2,775m (Q1 12: £2,721m) while the growth in assets offset the net interest margin decline of 4bps to 179bps
 
—  
Credit impairment charges were down 10% to £706m, principally reflecting improvements in the Investment Bank and Corporate Banking, partially offset by increases in Europe RBB and Africa RBB
 
-  
The annualised loan loss rate decreased to 56 bps (Q1 12: 63bps)
 
-  
Challenging local economic conditions have led to some stress and higher impairment in the Europe and South Africa home loan portfolios
 
-  
Credit metrics in the wholesale portfolios have generally shown some improvement during Q1 13, although conditions in Europe remain challenging
 
—  
Adjusted operating expenses were up 7% to £5,296m, principally reflecting costs to achieve Transform of £514m
 
-  
Following the launch of the Transform programme, the costs to achieve Transform in Q1 13 related to restructuring principally in Europe RBB, with headcount reducing by nearly 2,000 and the distribution network reducing by 30%, and in the Corporate and Investment Bank, where we are reducing headcount by 1,800. The below table summarises the Q1 13 costs to achieve Transform by business
 

   
Three Months
Ended
31.03.13
 
Costs to achieve Transform by Business
£m
 
Europe RBB
(356)
 
Investment Bank
(116)
 
Corporate Banking
(37)
 
Head Office and Other Operations
(5)
 
Total costs to achieve Transform
(514)
 
-  
Non-performance costs excluding costs to achieve Transform decreased 2% to £3,978m with the non-recurrence of a £115m charge relating to the setting of inter-bank offered rates in Q1 12
 
-  
Performance costs excluding costs to achieve Transform reduced 10% to £804m and the compensation: income ratio in the Investment Bank improved to 41% (Q1 12: 43%)
 
—  
The adjusted cost: income ratio increased to 68% (Q1 12: 61%). The Investment Bank cost: net operating income ratio improved to 62% (Q1 12: 65%)
 

 

 
 

 

 
Group Performance Review
 
Balance Sheet
 
·  
Total assets increased to £1,596bn (2012: £1,488bn), principally reflecting increases in reverse repurchase agreements and other similar secured lending, loans and advances to customers and available for sale investments
 
·  
Total loans and advances increased to £501bn (2012: £464bn) due to higher settlement balances in the Investment Bank and the acquisition of ING Direct UK
 
·  
Total shareholders’ equity, including non-controlling interests, was £61.4bn (2012: £60.0bn). Excluding non-controlling interests, shareholders’ equity increased £1.5bn to £52.1bn, reflecting a £1.5bn increase in share capital and share premium, including the exercise of warrants.  There was also an increase of £1.1bn in currency translation reserves, partially offset by a £0.5bn reduction due to an increase in retirement benefit liabilities and dividends paid of £0.4bn
 
·  
Net asset value per share was 405p (2012: 414p) and the net tangible asset value per share was 344p (2012: 349p).  The decrease was mainly attributable to an increase in shares issued, including the exercise of warrants
 
·  
Adjusted gross leverage was 20x (2012: 19x). Excluding the liquidity pool, adjusted gross leverage increased to 17x (2012: 16x)
 
Capital Management
 
·  
The Core Tier 1 ratio strengthened to 11.0% (2012: 10.8%)
 
·  
Core Tier 1 capital increased by £2.1bn to £43.8bn, due to foreign currency movements of £1.1bn, the exercise of outstanding warrants of £0.8bn and £0.6bn of capital generated from earnings which excludes the impact of own credit, after absorbing the impact of dividends paid
 
·  
Risk weighted assets increased by £11bn to £398bn, primarily driven by foreign currency movements
 
·  
We have estimated our CRD IV Common Equity Tier 1 (CET1) ratio on both a transitional and fully loaded basis assuming the rules were applied as at 31 March 2013 using a consistent basis to the reported 2012 year end position. Barclays estimated transitional CET1 ratio is approximately 10.8% (2012: 10.6%) and the estimated fully loaded CET1 ratio is approximately 8.4% (2012: 8.2%). We are currently reviewing the CRD IV rules approved by the European Parliament on 16 April 2013 and will provide an updated view on the estimated impact in our half year results announcement
 
·  
 In April, Barclays issued a further $1.0bn of Tier 2 contingent capital notes and repurchased existing Tier 2 instruments for a similar amount, as a step in transitioning towards its end state CRD IV capital structure
 
Funding and Liquidity
 
—  
The liquidity pool as at 31 March 2013 was £141bn (2012: £150bn)

Liquidity Pool 
Cash and Deposits
with Central Banks1 
Government
Bonds2 
Other Available
Liquidity
Total3 
  
£bn 
£bn 
£bn
£bn 
As at 31.03.13 
67  
55  
19 
141  
As at 31.12.12 
85  
46  
19 
150  
 
—  
As at 31 March 2013, the Group estimates it was compliant with the Liquidity Coverage Ratio (LCR) requirement at 110% (2012: 126%) based upon the latest standards published by the Basel Committee. This is equivalent to a surplus of £13bn above a 100% LCR requirement (2012: £32bn)
 
—  
RBB, Corporate Banking and Wealth and Investment Management activities are largely funded by customer deposits with the remaining funding secured against customer loans and advances. At 31 March 2013, the customer loan to deposit ratio for these businesses was 98% (2012: 102%)
 
 
 
1  
Of which over 95% (2012: over 95%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.
2  
Of which over 80% (2012: over 80%) of securities are comprised of UK, US, Japan, France, Germany, Denmark and the Netherlands.
3  
£134bn (2012: £144bn) of which is eligible to count towards the LCR as per the Basel standards.
 


 
 
Group Performance Review
 
—  
The Investment Bank activities are primarily funded through wholesale markets. As at 31 March 2013, total Group wholesale funding outstanding excluding repurchase agreements was £235bn (2012: £240bn), of which £98bn matures in less than one year (2012: £102bn) and £36bn matures within one month (2012: £29bn)
 
—  
The Group has term funding maturities of £11bn for the remainder of 2013. However, with expected deposit growth and reduction in legacy assets, funding needs are likely to be lower. In addition, a significant portion of the Group’s 2013 funding needs were pre-funded in 2012
 
Exposures to Selected Eurozone Countries
 
—  
During Q1 13 the Group’s net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece remained flat at £59.4bn (2012: £59.3bn)
 
—  
The Group continues to  monitor developments in Cyprus and has taken steps to mitigate any financial and operational risks as appropriate. The Group’s exposure to Cyprus remains minimal at £177m
 
Other matters
 
—  
As of 31 March 2013,  £1.9bn of the total £2.6bn PPI redress provision raised to date has been utilised leaving a residual provision of £0.7bn. The volume of customer initiated claims has continued to decline in Q1 13 while proactive mailing of customers is now 45% complete with 335,000 of the applicable 750,000 policy holders mailed to date. Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision. It is possible that the eventual costs may materially differ from current estimates. Based on claims experience to date and anticipated future volumes, the remaining provision of £0.7bn reflects Barclays best current estimate of future expected PPI redress payments and claims management costs
 
—  
The Interest Rate Hedging Product redress provision at 31 March 2013 was £759m (2012: £814m), after utilisation of £55m during Q1 13, primarily related to administrative costs. The provision reflects Barclays best current estimate of the ultimate cost. It will be kept under ongoing review as the main redress and review exercise progresses, as further information regarding the extent and nature of amounts payable across the impacted population emerges
 
Dividends
 
—  
It is our policy to declare and pay dividends on a quarterly basis. We will pay a first interim cash dividend for 2013 of 1.0p per share on 7 June 2013
 
Outlook
 
—  
The good start to the year has continued into the second quarter across our businesses. Although the macroeconomic environment remains unpredictable, as part of the Transform programme, we continue to focus on costs, returns and capital to drive sustainable performance improvements
 
 
 
 
 
Results by Business
 
UK Retail and Business Banking 
Three Months Ended
Three Months Ended
 
  
31.03.13
31.03.12
  
Income Statement Information 
£m
£m
% Change
Adjusted basis 
      
Total income net of insurance claims 
1,067 
1,066 
- 
Credit impairment charges and other provisions 
(89)
(76)
17 
Net operating income 
978 
990 
(1)
Operating expenses 
(704)
(757)
(7)
Other net income/(expense) 
25 
(1)
  
Adjusted profit before tax 
299 
232 
29 
  
      
Adjusting items 
      
Provision for PPI redress 
- 
(300)
  
Statutory profit/(loss) before tax 
299 
(68)
  
  
      
Performance Measures 
      
Adjusted return on average equity 
11.3%
9.6%
  
Adjusted return on average risk weighted assets 
2.2%
2.0%
  
Adjusted cost: income ratio 
66%
71%
  
Return on average equity 
11.3%
(3.5%)
  
Return on average risk weighted assets 
2.2%
(0.6%)
  
Cost: income ratio 
66%
99%
  
Loan loss rate (bps) 
27 
25 
  
  
      
  
As at 31.03.13
As at 31.12.12
  
Balance Sheet Information 
£bn
£bn
  
Loans and advances to customers at amortised cost 
134.3 
128.2 
  
Customer deposits 
130.8 
116.0 
  
Risk weighted assets 
42.6 
39.1
  
 
·  
On 5 March 2013, Barclays acquired ING Direct UK. This part of the business will be known as Barclays Direct
 
2013 compared to 2012
 
 
·  
Income was flat at £1,067m reflecting additional income from Barclays Direct and good mortgage growth offset by reduced contribution from structural hedges.  Other net income of £25m relates to a gain on acquisition of ING Direct UK
 
·  
Credit impairment charges increased £13m to £89m due to increased impairment in unsecured lending
 
-  
Loan loss rate was stable at 27bps (Q1 12: 25bps)
 
-  
90 day arrears rates improved 16bps on UK Personal Loans to 1.4% and increased 4bps on UK mortgages to 0.3%
 
·  
Adjusted operating expenses decreased 7% to £704m driven in part by reduced Financial Services Compensation Scheme costs
 
·  
Adjusted profit before tax improved 29% to £299m, while statutory profit before tax improved by £367m to £299m principally due to the non-recurrence of the Q1 12 provision for PPI redress of £300m
 
·  
Adjusted return on average equity improved to 11.3% (Q1 12: 9.6%). Statutory return on average equity increased to 11.3% (Q1 12: negative 3.5%)
 
Q1 13 compared to Q4 12
 
—  
Adjusted profit before tax improved 9% to £299m principally due to the acquisition of ING Direct UK, offset partially by higher impairment. Statutory profit before tax improved by £354m to £299m reflecting the non-recurrence of the Q4 12 provision for PPI redress of £330m
 
—  
Loans and advances to customers increased 5% to £134.3bn with customer deposits growing 13% to £130.8bn, both reflecting the ING Direct UK acquisition which added £11.4bn customer deposits and £5.3bn mortgage balances
 
—  
Risk weighted assets increased 9% to £42.6bn primarily reflecting the ING Direct UK acquisition and other mortgage asset growth
 
 
 
 
 
Results by Business
 
Europe Retail and Business Banking 
Three Months Ended
Three Months Ended
 
  
31.03.13
31.03.12
  
Income Statement Information 
£m
£m
% Change
Adjusted and statutory basis 
      
Total income net of insurance claims 
176 
188 
(6)
Credit impairment charges and other provisions 
(70)
(54)
30 
Net operating income 
106 
134 
(21)
Operating expenses excluding costs to achieve Transform 
(215)
(209)
3 
Costs to achieve Transform 
(356)
- 
  
Operating expenses 
(571)
(209)
  
Other net income 
3 
3 
  
Adjusted and statutory loss before tax 
(462)
(72)
  
  
      
Performance Measures 
      
Return on average equity 
(67.1%)
(10.7%)
  
Return on average risk weighted assets 
(8.6%)
(1.4%)
  
Cost: income ratio 
324%
111%
  
Loan loss rate (bps) 
70 
51 
  
  
      
  
As at 31.03.13
As at 31.12.12
  
Balance Sheet Information 
£bn
£bn
  
Loans and advances to customers at amortised cost 
40.0 
39.2 
  
Customer deposits 
17.6 
17.6 
  
Risk weighted assets 
16.4 
15.8 
  
 
2013 compared to 2012
 
—  
Income declined by 6% to £176m driven by lower net interest income and lower fees and commissions, as a result of reduced mortgage volumes and lower sales of investment products partially offset by foreign currency movements. The customer net interest margin remained stable at 44bps (Q1 12: 44bps)
 
—  
Credit impairment charges increased by £16m to £70m as a result of increased recovery balances and deterioration in loss given default within the Spanish and Portuguese home loan portfolios
 
—  
Operating expenses increased £362m to £571m largely reflecting costs to achieve Transform of £356m related to restructuring costs to significantly downsize the distribution network
 
—  
Loss before tax increased to £462m (Q1 12: £72m) principally due to cost to achieve Transform
 
Q1 13 compared to Q4 12 
 
 
—  
Loss before tax increased to £462m (Q4 12: £114m) largely as a result of costs to achieve Transform of £356m
 
—  
Income increased 9% to £176m driven by higher income from sales of investment products
 
—  
Risk weighted assets increased 4% to £16.4bn primarily driven by foreign currency movements
 
 
 
 
 
Results by Business
 
Africa Retail and Business Banking 
Three Months
Ended
Three Months
Ended
 
  
31.03.13
31.03.12
  
Income Statement Information 
£m
£m
% Change
Adjusted and statutory basis 
      
Total income net of insurance claims 
668 
764 
(13)
Credit impairment charges and other provisions 
(114)
(106)
8 
Net operating income 
554 
658 
(16)
Operating expenses 
(474)
(528)
(10)
Other net income 
1 
2 
  
Adjusted and statutory profit before tax 
81 
132 
(39)
  
      
Performance Measures 
      
Return on average equity 
1.6%
4.6%
  
Return on average risk weighted assets 
0.9%
1.4%
  
Cost: income ratio 
71%
69%
  
Loan loss rate (bps) 
148 
122 
  
  
      
 
As at 31.03.13
As at 31.12.12
 
Balance Sheet Information 
£bn
£bn
  
Loans and advances to customers at amortised cost 
29.7 
29.9 
  
Customer deposits 
19.3 
19.5 
  
Risk weighted assets 
24.9 
24.5 
  
 
2013 compared to 2012
 
·  
Income declined 13% to £668m largely driven by foreign currency movements relating to the depreciation of major African currencies against Sterling. Excluding the impact of foreign currency movements income remained under pressure with lower transaction volumes.
 
·  
The economic environment in South Africa remained challenging for consumers and credit impairment charges increased £8m to £114m principally reflecting higher loss given default rates and higher charge-offs in the South African home loans recovery book
 
·  
Operating expenses decreased 10% to £474m largely due to foreign currency movements with costs in local currency broadly in line with Q1 12
 
·  
Profit before tax decreased 39% to £81m.  Excluding the impact of foreign currency movements, profit before tax decreased 24%.  Return on average equity declined to 1.6% (Q1 12: 4.6%)
 
Q1 13 compared to Q4 12
 
 
·  
Profit before tax decreased 23% to £81m due to a seasonal reduction in transaction volumes, partially offset by lower impairments in the commercial property portfolio in South Africa
 
·  
Both loans and advances to customers and customer deposits decreased by 1% to £29.7bn and £19.3bn respectively, driven by foreign currency movements
 
·  
Risk weighted assets remained broadly stable at £24.9bn
 
 
 
 
 
Results by Business
 
Barclaycard 
  
Three Months Ended
Three Months Ended
  
  
  
31.03.13
31.03.12
  
Income Statement Information 
  
£m
£m
% Change
Adjusted and statutory basis 
        
Total income net of insurance claims 
  
1,153 
1,033 
12 
Credit impairment charges and other provisions 
  
(303)
(250)
21 
Net operating income 
  
850 
783 
9 
Operating expenses 
  
(496)
(445)
11 
Other net income 
  
9 
9 
  
Adjusted and statutory profit before tax 
  
363 
347 
5 
  
        
Performance Measures 
        
Return on average equity 
  
17.9%
17.8%
  
Return on average risk weighted assets 
  
2.8%
2.8%
  
Cost: income ratio 
  
43%
43%
  
Loan loss rate (bps) 
  
340 
309 
  
  
        
 
 
As at 31.03.13
As at 31.12.12
  
Balance Sheet Information 
  
£bn
£bn
  
Loans and advances to customers at amortised cost 
  
34.1 
33.8 
  
Customer deposits 
  
3.8 
2.8 
  
Risk weighted assets 
  
39.0 
37.8
  
 
2013 compared to 2012
 
·  
Income increased 12% to £1,153m reflecting continued growth across the business predominantly in the UK and US, contributions from Q1 12 acquisitions and stable customer asset margins
 
·  
Credit impairment charges increased 21% to £303m driven by higher volumes, including the impact of portfolio acquisitions, and non-recurrence of provision releases in Q1 12  
 
-  
Impairment loan loss rates in consumer credit cards are trending at low levels in the UK and US
 
·  
Operating expenses increased 11% to £496m due to business growth and the impact of portfolio acquisitions
 
·  
Profit before tax improved 5% to £363m.  Return on average equity improved to 17.9% (Q1 12: 17.8%)
 
Q1 13 compared to Q4 12
 
 
·  
Adjusted profit before tax improved 8% to £363m due to business growth and non-recurring costs in relation to provisions for certain insurance products in Q4 12, partially offset by an increase in impairment due to contribution from acquisitions and foreign exchange movements.  Statutory profit before tax improved by £298m reflecting the non-recurrence of the Q4 12 provision for PPI redress of £270m
 
·  
Loans and advances to customers remained stable at £34.1bn (2012: £33.8bn) reflecting business growth and foreign currency movements which were offset by seasonal pay-downs.  Customer deposits increased to £3.8bn (2012: £2.8bn) driven by business funding initiatives in the US
 
·  
Risk weighted assets increased 3% to £39.0bn primarily driven by foreign currency movements and asset growth
 
 
 
 
 
Results by Business
 
Investment Bank 
Three Months Ended
Three Months Ended
  
  
31.03.13
31.03.12
  
Income Statement Information 
£m
£m
% Change
Adjusted and statutory basis 
      
Fixed Income, Currency and Commodities 
2,190 
2,319 
(6)
Equities and Prime Services  
706 
591 
19 
Investment Banking  
558 
515 
8 
Principal Investments  
9 
11 
(18)
Total income 
3,463 
3,436 
1 
Credit impairment charges and other provisions 
14 
(81)
  
Net operating income 
3,477 
3,355 
4 
Operating expenses excluding costs to achieve Transform 
(2,054)
(2,195)
(6)
Costs to achieve Transform 
(116)
 -
 
Operating expenses 
(2,170)
(2,195)
(1)
Other net income 
8 
22 
  
Adjusted and statutory profit before tax 
1,315 
1,182 
11 
  
      
Performance Measures 
      
Return on average equity 
16.3%
13.8%
  
Return on average risk weighted assets 
1.9%
1.7%
  
Cost: income ratio 
63%
64%
  
Cost: net operating income ratio 
62%
65%
  
Compensation: income ratio 
41%
43%
  
Loan loss rate (bps) 
(5)
17 
  
  
      
 
As at 31.03.13
As at 31.12.12
  
Balance Sheet Information 
£bn
£bn
  
Loans and advances to banks and customers at amortised cost 
170.3 
143.5 
  
Customer deposits 
104.2 
75.9 
  
Assets contributing to adjusted gross leverage 
637.6 
567.0 
  
Risk weighted assets 
181.9 
177.9 
  
 
2013 compared to 2012
 
 
—  
Total Income of £3,463m was up 1%, reflecting an improvement in Equities and Prime Services, and Investment Banking, offset by a decline in Fixed Income, Currency and Commodities (FICC)
 
-  
FICC income declined 6% to £2,190m, reflecting lower contributions from Rates, Commodities and Emerging Markets due to a strong Q1 12 where markets were supported by the European Long-Term Refinancing Operation. There were improvements in Credit and Securitised Products which benefitted from increased volumes and tightening of spreads on positive economic news at the start of the year
 
-  
Equities and Prime Services income increased 19% to £706m across US, Asia and European businesses, reflecting an improvement in global equity markets driven by increased market confidence, strong inflows and market share gains. An increase in client activity in Prime Services further improved the results
 
-  
Investment Banking income increased 8% to £558m, driven by higher income in equity underwriting reflecting increases in client activity and market share gains
 
—  
Net credit impairment release of £14m (Q1 12: £81m charge), including a release of £40m across a number of counterparties was offset by charges of £26m driven by a number of single name exposures
 
—  
Operating expenses decreased 1% to £2,170m, which included £88m relating to improving infrastructure to meet the requirements of Basel 3 and other regulatory reporting change projects and deliver cost efficiencies.  Q1 13 included £116m of costs to achieve Transform related to restructuring costs. Q1 12 included a £115m charge relating to the setting of inter-bank offered rates
 
—  
Cost to net operating income ratio improved 3% to 62%. The compensation to income ratio improved to 41% (Q1 12: 43%)
 
—  
Profit before tax increased 11% to £1,315m. Return on average equity improved to 16.3% (Q1 12: 13.8%)
 
Results by Business
 
Q1 13 compared to Q4 12
 
 
·  
Income of £3,463m was up 34% on Q4 12 reflecting an increase in FICC income and Equities and Prime Services income, partially offset by a reduction in Investment Banking
 
-  
FICC income increased 47% to £2,190m, reflecting seasonally higher contributions from most business areas due to increased volumes and a rally in credit markets
 
-  
Equities and Prime Services income increased 56% to £706m, reflecting improved performance in cash equities and equity derivatives and continued strong performance in Prime Services driven by increased client activity
 
-  
Investment Banking income decreased 10% to £558m, reflecting the lower number of completed advisory deals in Q1 13 compared to Q4 12.  The decrease in advisory was partially offset by higher income in equity underwriting
 
·  
Operating expenses increased 17% to £2,170m, reflecting £116m costs to achieve Transform and a higher performance cost accrual driven by income growth
 
·  
Profit before tax increased 73% to £1,315m
 
·  
Assets contributing to adjusted gross leverage increased 12% to £637.6bn reflecting increases in reverse repurchase agreements and trading portfolio assets, partially offset by a decrease in cash and balances at central banks
 
·  
Risk weighted assets increased 2% to £181.9bn primarily driven by foreign currency movements offset by a reduction in trading book sovereign exposures
 
 
 
 
 
Results by Business
 
Corporate Banking 
Three Months Ended
Three Months Ended
 
  
31.03.13
31.03.12
  
Income Statement Information 
£m
£m
% Change
Adjusted basis 
      
Total income net of insurance claims 
772 
849 
(9)
Credit impairment charges and other provisions 
(130)
(208)
(38)
Net operating income 
642 
641 
- 
Operating expenses excluding costs to achieve Transform 
(422)
(437)
(3)
Costs to achieve Transform 
(37)
-
 
Operating expenses 
(459)
(437)
5 
Other net expense
- 
(1)
  
Adjusted and statutory profit before tax 
183 
203 
(10)
  
      
Adjusted profit/(loss) before tax by geographic segment 
      
UK 
269 
250 
8 
Europe 
(114)
(79)
44 
Rest of the World 
28 
32 
(13)
Total  
183 
203 
(10)
  
      
Performance Measures 
      
Return on average equity 
6.1%
6.6%
  
Return on average risk weighted assets 
0.8%
0.8%
  
Cost: income ratio 
59%
51%
  
Loan loss rate (bps) 
74 
117 
  
  
      
 
31.03.13
31.12.12
 
Balance Sheet Information 
£bn
£bn
  
Loans and advances to customers at amortised cost 
64.8 
64.3 
  
Loans and advances to customers at fair value 
17.4 
17.6 
  
Customer deposits 
103.3 
99.6 
  
Risk weighted assets 
72.7 
70.9 
  
 
2013 compared to 2012
 
 
—  
Total income decreased 9% to £772m reflecting a reduction in gains on fair value items to £31m (Q1 12: £78m), increased funding costs, non-recurring income from exited businesses and reduction in legacy portfolios in Europe, partially offset by an increase in UK product income
 
—  
Credit impairment charges reduced 38% to £130m. Loan loss rate improved to 74bps (Q1 12: 117bps)
 
-  
UK impairment reduced by £54m to £30m, partly reflecting increased recoveries in 2013
 
-  
Europe impairment charges reduced by £26m to £98m with ongoing action to reduce exposure to the property and construction sector in Spain
 
—  
Operating expenses increased 5% to £459m, reflecting costs to achieve Transform of £37m related to restructuring costs in Europe, partially offset by the benefits of prior year restructuring
 
 

 
 

 

 
 
Results by Business
 
—  
Profit before tax decreased 10% to £183m.  Return on average equity declined to 6.1% (Q1 12: 6.6%)
 
-  
UK profit before tax improved 8% to £269m driven by increased product income, lower impairment and operating expenses, partially offset by lower gains on fair value items
 
-  
Europe loss before tax increased 44% to £114m principally due to costs to achieve Transform and lower income reflecting the impact of exited business lines, partially offset by improved credit impairment charges of £98m (Q1 12: £124m) largely driven by reduced exposure to the property and construction sector in Spain
 
-  
Rest of the World profit before tax decreased by 13% to £28m, reflecting lower income due to exited businesses partially offset by improved operating expenses as a result of prior year restructuring
 
Q1 13 compared to Q4 12 
 
 
—  
Adjusted profit before tax tripled to £183m, reflecting reduced impairment charges in the UK and Europe and gains on fair value items of £31m (Q4 12: £10m). Statutory profit before tax improved by £522m reflecting the non-recurrence of the Q4 12 provision for interest rate hedging products redress of £400m
 
—  
Customer deposits increased 4% to £103.3bn primarily within the UK. Loans and advances to customers remained stable at £64.8bn
 
 
 
 
 
Results by Business
 
Wealth and Investment Management 
Three Months Ended
Three Months Ended
  
  
31.03.13
31.03.12
  
Income Statement Information 
£m
£m
% Change
Adjusted and statutory basis 
      
Total income net of insurance claims 
469 
452 
4 
Credit impairment charges and other provisions 
(14)
(7)
100 
Net operating income 
455 
445 
2 
Operating expenses 
(400)
(395)
1 
Other net income
5 
-  
  
Adjusted and statutory profit before tax 
60 
50 
20 
  
      
Performance Measures 
      
Return on average equity 
7.9%
7.0%
  
Return on average risk weighted assets 
1.1%
1.1%
  
Cost: income ratio 
85%
87%
  
Loan loss rate (bps) 
25 
16 
  
  
      
 
As at 31.03.13
As at 31.12.12
  
Balance Sheet Information 
£bn
£bn
  
Loans and advances to customers at amortised cost 
22.2 
21.2 
  
Customer deposits 
58.3 
53.8 
  
Risk weighted assets 
17.1 
16.1 
  
Total client assets 
200.2 
186.0 
  
 
2013 compared to 2012
 
—  
Income increased by 4% to £469m driven by the High Net Worth businesses. Net Interest income increased driven by growth in deposit and lending balances primarily in the High Net Worth businesses.  Net fee and commission income remained broadly in line
 
—  
Operating expenses of £400m were broadly flat against Q1 12 as ongoing costs of the strategic investment programme were offset by cost control initiatives
 
—  
Profit before tax increased 20% to £60m.  Return on average equity increased to 7.9% (Q1 12: 7.0%)
 
Q1 13 compared to Q4 12 
 
 
—  
Profit before tax decreased 43% to £60m primarily due to increased funding costs and costs of the ongoing strategic investment programme
 
—  
Loans and advances to customers increased 5% to £22.2bn and customer deposits increased 8% to £58.3bn primarily driven by growth in the High Net Worth businesses
 
—  
Client assets increased to £200.2bn (2012: £186.0bn) driven by net new assets in the High Net Worth businesses and favourable market movements
 
 
 
 
 
Results by Business
 
Head Office and Other Operations 
  
Three Months
Ended
Three Months
Ended
  
  
31.03.13
31.03.12
Income Statement Information 
  
£m
£m
Adjusted basis 
      
Total (expense)/income net of insurance claims 
  
(34)
317 
Credit impairment charges and other provisions 
  
- 
(2)
Net operating income 
  
(34)
315 
Operating expenses excluding costs to achieve Transform 
  
(17)
1 
Costs to achieve Transform 
  
(5)
- 
Operating expenses 
  
(22)
1 
Other net income 
  
3 
5 
Adjusted (loss)/profit before tax  
  
(53)
321 
  
      
Adjusting items 
      
Own credit 
  
(251)
(2,620)
Statutory loss before tax  
  
(304)
(2,299)
  
      
  
  
As at 31.03.13
As at 31.12.12
Balance Sheet Information  
  
£bn
£bn
Risk weighted assets 
  
3.2 
5.3 
 
2013 compared to 2012
 
—  
Adjusted income loss of £34m (Q1 12: income of £317m) deteriorated principally due to the non-recurrence of gains related to hedges of employee share awards in Q1 12 of £235m
 
—  
Operating expenses of £22m (Q1 12: gain of £1m) increased by £23m, including costs related to the Salz review and costs to achieve Transform
 
—  
Adjusted loss before tax of £53m (Q1 12: profit of £321m). Statutory loss before tax of £304m (Q1 12: £2,299m) included an own credit charge of £251m (Q1 12: £2,620m)
 
Q1 13 compared to Q4 12 
 
 
—  
Adjusted expense of £34m reduced from £53m in Q4 12
 
—  
Operating expenses decreased by £55m to £22m mainly due the non-recurrence of costs relating to the Transform strategic review and the bank levy, and a reduction in costs arising from litigation and regulatory investigations
 
—  
Adjusted loss before tax improved to £53m (Q4 12: £132m). Statutory loss before tax of £304m (Q4 12: £692m) included an own credit charge of £251m (Q4 12: £560m)
 
 
 
 
 
Appendix I – Quarterly Results Summary
 
  
Q113
  
Q412
Q312
Q212
Q112
  
Q411
Q311
Q211
UK Retail and Business Banking 
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted basis  
                    
Total income net of insurance claims  
1,067 
  
1,077 
1,123 
1,118 
1,066 
  
1,129 
1,244 
1,168 
Credit impairment charges and other provisions  
(89)
  
(71)
(76)
(46)
(76)
  
(156)
(105)
(131)
Net operating income  
978 
  
1,006 
1,047 
1,072 
990 
  
973 
1,139 
1,037 
Operating expenses excluding bank levy 
(704)
  
(718)
(689)
(713)
(757)
  
(790)
(711)
(658)
UK bank levy 
- 
  
(17)
-
-
-
  
(22)
-
-
Operating expenses   
(704)
  
(735)
(689)
(713)
(757)
  
(812)
(711)
(658)
Other net income/(expense) 
25 
  
4 
-
1 
(1)
  
1 
1 
(1)
Adjusted profit before tax  
299 
  
275 
358 
360 
232 
  
162 
429 
378 
   
                    
Adjusting items  
                    
Provision for PPI redress  
- 
  
(330)
(550)
-
(300)
  
-
-
(400)
Statutory profit/(loss) before tax  
299 
  
(55)
(192)
360 
(68)
  
162 
429 
(22)
  
                    
Europe Retail and Business Banking 
                    
Adjusted and statutory basis  
                    
Total income net of insurance claims  
176 
  
161 
168 
191 
188 
  
198 
309 
254 
Credit impairment charges and other provisions  
(70)
  
(74)
(58)
(71)
(54)
  
(65)
(46)
(40)
Net operating income  
106 
  
87 
110 
120 
134 
  
133 
263 
214 
Operating expenses excluding bank levy and costs to achieve Transform 
(215)
  
(185)
(193)
(200)
(209)
  
(290)
(244)
(327)
UK bank levy 
- 
  
(20)
-
-
-
  
(21)
-
-
Costs to achieve Transform 
(356)
  
-
-
-
-
  
-
-
-
Operating expenses   
(571)
  
(205)
(193)
(200)
(209)
  
(311)
(244)
(327)
Other net income 
3 
  
4 
2 
4 
3 
  
2 
2 
4 
Adjusted (loss)/profit before tax 
(462)
  
(114)
(81)
(76)
(72)
  
(176)
21 
(109)
  
                    
Adjusting items  
                    
Goodwill impairment 
- 
  
-
-
-
-
  
(427)
-
-
Statutory (loss)/profit before tax  
(462)
  
(114)
(81)
(76)
(72)
  
(603)
21 
(109)
  
                    
Africa Retail and Business Banking 
                    
Adjusted and statutory basis  
                    
Total income net of insurance claims  
668 
  
721 
714 
729 
764 
  
806 
883 
858 
Credit impairment charges and other provisions  
(114)
  
(142)
(176)
(208)
(106)
  
(86)
(108)
(125)
Net operating income  
554 
  
579 
538 
521 
658 
  
720 
775 
733 
Operating expenses excluding bank levy 
(474)
  
(455)
(506)
(471)
(528)
  
(468)
(584)
(556)
UK bank levy 
- 
  
(24)
-
-
-
  
(23)
-
-
Operating expenses  
(474)
  
(479)
(506)
(471)
(528)
  
(491)
(584)
(556)
Other net income 
1 
  
5 
2 
1 
2 
  
2 
-
1 
Adjusted profit before tax  
81 
  
105 
34 
51 
132 
  
231 
191 
178 
  
                    
Adjusting items  
                    
Gains on acquisitions and disposals   
-
  
-
-
-
-
  
-
2 
-
Statutory profit before tax  
81 
  
105 
34 
51 
132 
  
231 
193 
178 
 
 
 
 
 
Appendix I – Quarterly Results Summary
 
  
Q113
  
Q412
Q312
Q212
Q112
  
Q411
Q311
Q211
Barclaycard 
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted basis  
                    
Total income net of insurance claims  
1,153 
  
1,140 
1,092 
1,079 
1,033 
  
1,037 
1,177 
1,072 
Credit impairment charges and other provisions  
(303)
  
(286)
(271)
(242)
(250)
  
(287)
(356)
(351)
Net operating income  
850 
  
854 
821 
837 
783 
  
750 
821 
721 
Operating expenses excluding bank levy 
(496)
  
(508)
(432)
(441)
(445)
  
(478)
(462)
(455)
UK bank levy 
- 
  
(16)
-
-
-
  
(16)
-
-
Operating expenses 
(496)
  
(524)
(432)
(441)
(445)
  
(494)
(462)
(455)
Other net income 
9 
  
5 
7 
8 
9 
  
5 
8 
7 
Adjusted profit before tax  
363 
  
335 
396 
404 
347 
  
261 
367 
273 
   
                    
Adjusting items  
                    
Provision for PPI redress  
- 
  
(270)
(150)
-
-
  
-
-
(600)
Goodwill impairment 
- 
  
-
-
-
-
  
-
-
(47)
Statutory profit/(loss) before tax  
363 
  
65 
246 
404 
347 
  
261 
367 
(374)
  
                    
Investment Bank 
                    
Adjusted and statutory basis  
                    
Fixed Income, Currency and Commodities 
2,190 
  
1,494 
1,675 
1,761 
2,319 
  
933 
1,299 
1,623 
Equities and Prime Services 
706 
  
454 
523 
615 
591 
  
300 
346 
615 
Investment Banking 
558 
  
620 
493 
509 
515 
  
518 
402 
533 
Principal Investments 
9 
  
26 
30 
139 
11 
  
36 
89 
99 
Total income  
3,463 
  
2,594 
2,721 
3,024 
3,436 
  
1,787 
2,136 
2,870 
Credit impairment charges and other provisions  
14 
  
1 
(3)
(121)
(81)
  
(89)
(114)
79 
Net operating income  
3,477 
  
2,595 
2,718 
2,903 
3,355 
  
1,698 
2,022 
2,949 
Operating expenses excluding bank levy and costs to achieve Transform 
(2,054)
  
(1,644)
(1,737)
(1,849)
(2,195)
  
(1,527)
(1,818)
(2,068)
UK bank levy 
- 
  
(206)
-
-
-
  
(199)
-
-
Costs to achieve Transform 
(116)
  
-
-
-
-
  
-
-
-
Operating expenses  
(2,170)
  
(1,850)
(1,737)
(1,849)
(2,195)
  
(1,726)
(1,818)
(2,068)
Other net income/(expense) 
8 
  
15 
7 
6 
22 
  
(4)
6 
7 
Adjusted and statutory profit/(loss) before tax 
1,315 
  
760 
988 
1,060 
1,182 
  
(32)
210 
888 
  
                    
Corporate Banking 
                    
Adjusted basis  
                    
Total income net of insurance claims  
772 
  
746 
717 
734 
849 
  
753 
902 
866 
Credit impairment charges and other provisions  
(130)
  
(240)
(214)
(223)
(208)
  
(252)
(284)
(328)
Net operating income  
642 
  
506 
503 
511 
641 
  
501 
618 
538 
Operating expenses excluding UK bank levy and costs to achieve Transform 
(422)
  
(412)
(421)
(402)
(437)
  
(469)
(480)
(503)
UK bank levy 
- 
  
(39)
-
-
-
  
(43)
-
-
Costs to achieve Transform  
(37)
  
-
-
-
-
  
-
-
-
Operating expenses 
(459)
  
(451)
(421)
(402)
(437)
  
(512)
(480)
(503)
Other net income/(expense) 
- 
  
6 
6 
(1)
(1)
  
1 
2 
2 
Adjusted profit/(loss) before tax  
183 
  
61 
88 
108 
203 
  
(10)
140 
37 
   
                    
Adjusting items  
                    
Goodwill impairment 
- 
  
-
-
-
-
  
(123)
-
-
Provision for interest rate hedging products redress  
- 
  
(400)
-
(450)
-
  
-
-
-
Losses on disposal 
- 
  
-
-
-
-
  
(9)
-
(64)
Statutory profit/(loss) before tax  
183 
  
(339)
88 
(342)
203 
  
(142)
140 
(27)
 
 
 
 
 
Appendix I – Quarterly Results Summary
 
  
Q113
  
Q412
Q312
Q212
Q112
  
Q411
Q311
Q211
Wealth and Investment Management 
£m
  
£m
£m
£m
£m
  
£m
£m
£m
Adjusted and statutory basis  
                    
Total income net of insurance claims  
469 
  
483 
443 
442 
452 
  
453 
462 
429 
Credit impairment charges and other provisions  
(14)
  
(13)
(6)
(12)
(7)
  
(10)
(12)
(9)
Net operating income  
455 
  
470 
437 
430 
445 
  
443 
450 
420 
Operating expenses excluding bank levy 
(400)
  
(361)
(369)
(380)
(395)
  
(398)
(380)
(386)
UK bank levy 
- 
  
(4)
-
-
-
  
(1)
-
-
Operating expenses   
(400)
  
(365)
(369)
(380)
(395)
  
(399)
(380)
(386)
Other net income/(expense)  
5 
  
- 
2 
(1)
-
  
(1)
-
-
Adjusted and statutory profit before tax 
60 
  
105 
70 
49 
50 
  
43 
70 
34 
  
                    
Head Office and Other Operations 
                    
Adjusted basis  
                    
Total (expense)/income net of insurance claims  
(34)
  
(53)
22 
70 
317 
  
49 
(112)
33 
Credit impairment charges and other provisions  
- 
  
1 
- 
(3)
(2)
  
(1)
1 
(3)
Net operating (expense)/income  
(34)
  
(52)
22 
67 
315 
  
48 
(111)
30 
Operating expenses excluding bank levy and costs to achieve Transform 
(17)
  
(59)
(7)
(101)
1 
  
(26)
(7)
(13)
UK bank levy 
- 
  
(18)
-
-
-
  
-
-
-
Costs to achieve Transform  
(5) 
  
-
-
-
-
  
-
-
-
Operating expenses   
(22)
  
(77)
(7)
(101)
1 
  
(26)
(7)
(13)
Other net income/(expense) 
3 
  
(3)
(3)
22 
5 
  
-
- 
(2)
Adjusted (loss)/profit before tax 
(53)
  
(132)
12 
(12)
321 
  
22 
(118)
15 
   
                    
Adjusting items  
                    
Own Credit 
(251)
  
(560)
(1,074)
(325)
(2,620)
  
(263)
2,882 
440 
Gain/(loss) on disposal and impairment of BlackRock investment  
- 
  
-
-
227 
-
  
-
(1,800)
(58)
Gains on debt buy-backs   
- 
  
-
-
-
-
  
1,130 
-
-
(Losses)/gains on acquisitions and disposals   
-  
  
-
-
-
-
  
(23)
1 
(3)
Statutory (loss)/profit before tax  
(304)
  
(692)
(1,062)
(110)
(2,299)
  
866 
965 
394 
 
 
 
 
 
Appendix II – Performance Management
 
Returns on Equity by Business
 
Returns on average equity and average tangible equity are calculated using profit after tax and non-controlling interests for the period, divided by average allocated equity or tangible equity as appropriate. Average allocated equity has been calculated as 10.5% of average risk weighted assets for each business, adjusted for capital deductions, including goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. The higher capital level currently held, reflecting the Core Tier 1 capital ratio of 11.0% as at 31 March 2013, is allocated to Head Office and Other Operations. Average allocated tangible equity is calculated using the same method but excludes goodwill and intangible assets.
 
  
Adjusted 
  
Statutory 
  
Three Months
Ended
Three Months
Ended 
  
Three Months
Ended
Three Months
Ended 
  
31.03.13
31.03.12 
  
31.03.13
31.03.12 
Return on Average Equity 
%
% 
  
%
% 
UK RBB 
11.3 
9.6  
  
11.3 
(3.5) 
Europe RBB 
(67.1)
(10.7) 
  
(67.1)
(10.7) 
Africa RBB 
1.6 
4.6  
  
1.6 
4.6  
Barclaycard 
17.9 
17.8  
  
17.9 
17.8  
Investment Bank 
16.3 
13.8  
  
16.3 
13.8  
Corporate Banking 
6.1 
6.6  
  
6.1 
6.6  
Wealth and Investment Management 
7.9 
7.0  
  
7.9 
7.0  
Group excluding Head Office and Other Operations 
9.1 
10.5  
  
9.1 
8.6  
Head Office and Other Operations impact 
(1.5)
1.9  
  
(2.6)
(13.1) 
Total 
7.6 
12.4  
  
6.5 
(4.5) 
  
  
  
    
  

  
Adjusted 
  
Statutory 
  
Three Months
Ended
Three Months
Ended 
  
Three Months
Ended
Three Months
Ended 
  
31.03.13
31.03.12 
  
31.03.13
31.03.12 
Return on Average Tangible Equity 
%
% 
  
%
% 
UK RBB 
20.1 
18.3  
  
20.1 
(6.7) 
Europe RBB 
(73.4)
(11.7) 
  
(73.4)
(11.7) 
Africa RBB1 
7.6 
11.8  
  
7.6 
11.8  
Barclaycard 
24.1 
24.0  
  
24.1 
24.0  
Investment Bank 
16.9 
14.3  
  
16.9 
14.3  
Corporate Banking 
6.4 
6.9  
  
6.4 
6.9  
Wealth and Investment Management 
10.5 
9.7  
  
10.5 
9.7  
Group excluding Head Office and Other Operations 
10.9 
12.6  
  
10.9 
10.4  
Head Office and Other Operations impact 
(1.9)
2.0  
  
(3.3)
(15.7) 
Total 
9.0 
14.6  
  
7.6 
(5.3) 






 




 
1  
The return on average tangible equity for Africa RBB has been calculated including amounts relating to Absa Group’s non-controlling interests.
 
 
 
 
 
Appendix II – Performance Management
 
  
Adjusted 
  
Statutory 
  
Three months
ended
Three months
ended 
  
Three months
ended
Three months
ended 
  
31.03.13
31.03.12 
  
31.03.13
31.03.12 
Profit attributable to equity holders of the parent 
£m
£m 
  
£m
£m 
UK RBB 
218 
165  
  
218 
(61) 
Europe RBB 
(363)
(60) 
  
(363)
(60) 
Africa RBB 
9 
33  
  
9 
33  
Barclaycard 
242 
220  
  
242 
220  
Investment Bank 
823 
747  
  
823 
747  
Corporate Banking 
120 
133  
  
120 
133  
Wealth and Investment Management 
45 
33  
  
45 
33  
Head Office and Other Operations  
(84)
337 
 
(255)
(1,643)
Total
1,010
1,608 
 
839 
(598)
  
  
  
    
  

  
Average Equity  
  
Average Tangible Equity  
  
Three months
ended
Three months
ended 
  
Three months
ended
Three months
ended 
 
31.03.13
31.03.12 
  
31.03.13
31.03.12 
 
£m
£m 
  
£m
£m 
UK RBB 
7,705 
6,890  
  
4,337 
3,625  
Europe RBB 
2,165 
2,220  
  
1,977 
2,037  
Africa RBB 
2,270 
2,866  
  
938 
1,370  
Barclaycard 
5,408 
4,945  
  
4,022 
3,673  
Investment Bank 
20,166 
21,640  
  
19,469 
20,910  
Corporate Banking 
7,868 
8,093  
  
7,497 
7,708  
Wealth and Investment Management 
2,283 
1,894  
  
1,722 
1,361  
Head Office and Other Operations1 
4,044 
4,694  
  
4,027 
4,694  
Total2 
51,909 
53,242  
  
43,989 
45,378  




 
 
Three months ended 31.03.13
Additional adjusted performance measures by business excluding costs to achieve Transform
Costs to
achieve
Transform
£m
Profit before
tax
£m
Return on
average equity
%
Cost: income
ratio
%
UK RBB
- 
299 
11.3 
66 
Europe RBB
(356)
(106)
(16.0)
122
Africa RBB
- 
81 
1.6 
71 
Barclaycard
- 
363 
17.9 
43 
Investment Bank
(116)
1,431 
17.9 
59 
Corporate Banking
(37)
220 
7.5 
55 
Wealth and Investment Management
- 
60 
7.9 
85 
Head Office and Other Operations
(5)
(48)
(1.7)
n/a
Group excluding costs to achieve Transform
(514)
2,300 
10.6 
62 




 


 
1  
Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average shareholders’ equity and tangible equity.
2  
Group average shareholders’ equity and average shareholders’ tangible equity excludes the cumulative impact of own credit on retained earnings for the calculation of adjusted performance measures.  
 
 
 
 
Appendix II – Performance Management
 
Margins and Balances 
  
 
  
 
  
 
 
 
 
 
 
  
 
  
 
 
 
Analysis of Net Interest Margin 
  
 
  
 
  
 
 
 
  
RBB - UK margin
RBB - Europe margin
RBB - Africa margin 
Barclay-
card margin
Corporate Banking margin 
Wealth and Investment Management margin
Total RBB, Barclaycard, Corporate and Wealth margin
RBB, Barclaycard, Corporate and Wealth interest income
Three Months Ended 31.03.13 
%
%
% 
%
% 
%
%
£m
Customer asset margin/ interest income 
1.10 
0.45 
2.92  
9.49 
1.32  
0.85 
2.14 
1,723 
Customer liability margin/ interest income 
0.96 
0.42 
2.73  
(0.35)
0.97  
1.02 
1.05 
786 
  
    
  
  
  
      
Customer generated margin/ interest income 
1.03 
0.44 
2.85  
8.77 
1.12  
0.97 
1.62 
2,509 
Non-customer generated margin/ interest income 
0.25 
0.37 
0.18  
(0.28)
0.11  
0.14 
0.17 
266 
  
    
  
  
  
      
Net interest margin/ income 
1.28 
0.81 
3.03  
8.49 
1.23  
1.11 
1.79 
2,775 
  
    
  
  
  
      
Average customer assets (£m) 
 130,546 
 40,494 
 30,451  
 35,887 
 66,741  
 22,221 
 326,340 
n/a
Average customer liabilities (£m) 
 118,721 
 14,307 
 18,925  
 2,822 
 93,423  
 55,642 
 303,840 
n/a
  
    
  
  
  
      
Three Months Ended 31.03.121 
    
  
  
  
      
Customer asset margin/ interest income 
0.99 
0.41 
3.10  
9.53 
1.25  
0.63 
2.04 
1,632 
Customer liability margin/ interest income 
0.97 
0.53 
2.79  
-
1.27  
1.08 
1.19 
817 
  
    
  
  
  
      
Customer generated margin/ interest income 
0.98 
0.44 
2.98  
9.53 
1.26  
0.95 
1.65 
2,449 
Non-customer generated margin/ interest income 
0.36 
0.36 
0.09  
(0.79)
0.04  
0.30 
0.18 
272 
  
    
  
  
  
      
Net interest margin/ income 
1.34 
0.80 
3.07  
8.74 
1.30  
1.25 
1.83 
2,721 
  
    
  
  
  
      
Average customer assets (£m) 
 121,898 
 41,956 
 33,212  
 32,844 
 73,008  
 18,914 
 321,832 
n/a
Average customer liabilities (£m) 
 109,879 
 15,730 
 20,238  
-
 83,515  
 47,287 
 276,649 
n/a

 
—  
Net interest income for the Retail Banking businesses, Barclaycard, Corporate Banking and Wealth and Investment Management businesses remained stable at £2,775m (Q1 12: £2,721m), reflecting business growth in Barclaycard, UK RBB and Wealth and Investment Management. This was partially offset by foreign exchange movements and lower volumes in Africa RBB and the withdrawal from certain business lines in Europe RBB and Corporate Banking
 
 
—  
The Retail Banking businesses, Barclaycard, Corporate Banking and Wealth and Investment Management net interest margin reduced 4bps to 179bps, reflecting reductions in contribution from customer liabilities and structural hedges. Customer generated margin remained stable at 162bps (Q1 12: 165bps) with an increase in customer asset margin to 2.14% (Q1 12: 2.04%)
 
 
—  
Group net interest income including contributions for the Investment Bank and Head Office and Other Operations was £2,877m (Q1 12: £2,868m). The total contribution from Group product and equity structural hedges reduced £46m to £391m
 


 
 
 
1  
The comparatives have been restated to reflect the reallocation of elements of the Head Office results to businesses and portfolio restatements between businesses.
 
Appendix III – Balance Sheet and Capital
 
Consolidated Summary Balance Sheet 
  
  
  
As at
As at 
  
31.03.13
31.12.121 
Assets 
£m
£m 
Cash, balances at central banks and items in the course of collection 
72,463 
87,664  
Trading portfolio assets 
168,290 
146,352  
Financial assets designated at fair value 
48,802 
46,629  
Derivative financial instruments 
460,500 
469,156  
Available for sale investments 
85,390 
75,109  
Loans and advances to banks 
43,893 
40,462  
Loans and advances to customers 
457,283 
423,906  
Reverse repurchase agreements and other similar secured lending 
234,879 
176,522  
Other assets 
24,622 
22,535  
Total assets 
1,596,122 
1,488,335  
  
  
  
Liabilities 
  
  
Deposits and items in the course of collection due to banks 
83,731 
78,599  
Customer accounts 
437,548 
385,411  
Repurchase agreements and other similar secured borrowing 
260,466 
217,178  
Trading portfolio liabilities 
61,412 
44,794  
Financial liabilities designated at fair value 
80,044 
78,561  
Derivative financial instruments  
453,955 
462,721  
Debt securities in issue 
112,207 
119,525  
Subordinated liabilities 
24,557 
24,018  
Other liabilities 
20,771 
17,542  
Total liabilities 
1,534,691 
1,428,349  
  
  
  
Shareholders' Equity 
  
  
Called up share capital and share premium 
13,977 
12,477  
Other reserves 
1,772 
1,253  
Retained earnings 
36,391 
36,885  
Shareholders' equity excluding non-controlling interests 
52,140 
50,615  
Non-controlling interests 
9,291 
9,371  
Total shareholders' equity 
61,431 
59,986  
  
  
  
Total liabilities and shareholders' equity 
1,596,122 
1,488,335  

 


1  
The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011).
 
 
Appendix III – Balance Sheet and Capital
 
Key Capital Ratios 
As at
As at
   
31.03.13
31.12.121
Core Tier 1  
11.0%
10.8%
Tier 1  
13.3%
13.2%
Total capital  
17.2%
17.0%
   
    
Capital Resources  
£m
£m
Shareholders' equity (excluding non-controlling interests) per balance sheet  
52,140 
50,615 
Own credit cumulative loss2 
1,034 
804 
Unrealised gains on available for sale debt securities2 
(475)
(417)
Unrealised gains on available for sale equity (recognised as tier 2 capital)2 
(136)
(110)
Cash flow hedging reserve2 
(1,963)
(2,099)
   
    
Non-controlling interests per balance sheet  
9,291 
9,371 
- Less: Other Tier 1 capital - preference shares  
(6,197)
(6,203)
- Less: Non-controlling Tier 2 capital  
(583)
(547)
Other regulatory adjustments to non-controlling interests  
(141)
(171)
   
    
Other regulatory adjustments and deductions:  
    
Defined benefit pension adjustment2 
496 
49 
Goodwill and intangible assets2 
(7,623)
(7,622)
50% excess of expected losses over impairment2 
(798)
(648)
50% of securitisation positions  
(897)
(997)
Other regulatory adjustments  
(372)
(303)
Core Tier 1 capital  
43,776 
41,722 
   
    
Other Tier 1 capital:  
    
Preference shares  
6,197 
6,203 
Tier 1 notes3 
535 
509 
Reserve Capital Instruments  
2,914 
2,866 
   
    
Regulatory adjustments and deductions:  
    
50% of material holdings  
(481)
(241)
50% of the tax on excess of expected losses over impairment  
24 
176 
Total Tier 1 capital  
52,965 
51,235 
   
    
Tier 2 capital:  
    
Undated subordinated liabilities  
1,638 
1,625 
Dated subordinated liabilities  
14,409 
14,066 
Non-controlling Tier 2 capital  
583 
547 
Reserves arising on revaluation of property2 
24 
39 
Unrealised gains on available for sale equity2 
139 
110 
Collectively assessed impairment allowances  
1,980 
2,002 
   
    
Tier 2 deductions:  
    
50% of material holdings  
(481)
(241)
50% excess of expected losses over impairment (gross of tax)  
(822)
(824)
50% of securitisation positions  
(897)
(997)
   
    
Total capital regulatory adjustments and deductions:  
    
Investments that are not material holdings or qualifying holdings  
(1,168)
(1,139)
Other deductions from total capital  
(102)
(550)
Total regulatory capital   
68,268 
65,873 

 

1  
The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011).
2  
The capital impacts of these items are net of tax.
3  
Tier 1 notes are included in subordinated liabilities in the consolidated balance sheet.

 

Appendix III – Balance Sheet and Capital
 

·  
The Core Tier 1 ratio increased to 11.0% (2012: 10.8%) reflecting an increase in Core Tier 1 capital to £43.8bn (2012: £41.7bn), partially offset by a 3% increase in risk weighted assets to £397.9bn (2012: £387.4bn)

·  
Barclays generated £0.6bn Core Tier 1 capital from earnings, which excludes movements in own credit, after absorbing the impact of dividends paid.  Other material movements in Core Tier 1 capital include:

-  
£1.1bn increase due to foreign currency movements, primarily due to appreciation of Euro and US Dollar against Sterling, which was broadly offset by foreign currency movements in risk weighted assets
 
-  
£0.8bn increase in share capital and share premium due to warrants exercised
 
-  
£0.3bn net decrease in reserves due to share purchases to settle share awards
 

Risk Weighted Assets by Business 
As at
31.03.13
As at
31.12.121
  
£m
£m
UK RBB 
42,613 
39,088 
Europe RBB 
16,358 
15,795 
Africa RBB 
24,929 
24,532 
Barclaycard 
39,021 
37,836 
Investment Bank 
181,922 
177,884 
Corporate Banking 
72,731 
70,858 
Wealth and Investment Management 
17,092 
16,054 
Head Office and Other Operations 
3,188 
5,326 
Total 
397,854 
387,373 

   
Movement in Risk Weighted Assets
Risk Weighted Assets
 
£bn
As at 1 January 2013
387.4  
Foreign exchange
8.5  
Methodology and model changes
2.3  
Business activity
- 
Change in risk parameters
(0.3)
As at 31 March 2013
397.9 


·  
Risk weighted assets increased 3% to £397.9bn, principally reflecting:

-  
Foreign exchange movements of £8.5bn primarily due to the appreciation of Euro and US Dollar against Sterling during the period
 
-  
Methodology and model changes, primarily model recalibration resulting in a £2.3bn increase 
 
-  
Business activity being broadly flat, with the largest components being a £3.0bn decrease in the Investment Bank primarily relating to reductions in trading book sovereign exposures offset by a £2.5bn increase in UK RBB primarily driven by the ING Direct UK acquisition and other mortgage asset growth
 
-  
These were offset by a £0.3bn decrease in risk parameters driven by improvements in underlying risk profiles and market conditions
 





1  
The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements, IAS 19 Employee Benefits (revised 2011), the reallocation of elements of the Head Office results to businesses and portfolio restatements between businesses.
 
 
Appendix III – Balance Sheet and Capital
 
Balance Sheet Leverage 
  
  
  
As at
As at   
  
31.03.13
31.12.121 
  
£m
£m 
Total assets2 
1,596,122 
1,488,335  
Counterparty netting 
(378,426)
(387,672) 
Collateral on derivatives 
(47,147)
(46,855) 
Net settlement balances and cash collateral 
(94,862)
(71,718) 
Goodwill and intangible assets 
(7,910)
(7,915) 
Customer assets held under investment contracts3 
(1,569)
(1,542) 
Adjusted total tangible assets 
1,066,208 
 972,633  
Total qualifying Tier 1 capital 
52,965 
51,235  
Adjusted gross leverage 
20x
19x 
Adjusted gross leverage (excluding liquidity pool) 
17x
16x 
Ratio of total assets to shareholders' equity 
26x
25x 
Ratio of total assets to shareholders' equity (excluding liquidity pool) 
24x
22x 
 
—  
Barclays continues to manage its balance sheet within limits and targets for balance sheet usage
 
—  
Adjusted gross leverage increased to 20x (2012: 19x) due to qualifying Tier 1 capital increasing by 3% to £53bn and adjusted total tangible assets increasing by 10% to £1,066bn
 
—  
At month ends during Q1 13, the ratio moved in a range from 20x to 21x (full year 2012: 19x to 23x) primarily due to fluctuations in collateralised reverse repurchase lending and high quality trading portfolio assets
 
—  
Adjusted total tangible assets include cash and balances at central banks of £69.3bn (2012: £86.2bn). Excluding these balances, the balance sheet leverage would be 19x (2012: 17x). Excluding the whole liquidity pool, leverage would be 17x (2012: 16x)
 
—  
The ratio of total assets to total shareholders’ equity was 26x (2012: 25x) and during Q1 13 moved within a month end range of 26x to 27x (full year 2012: 25x to 28x), driven by fluctuations in collateralised reverse repurchase lending, high quality trading portfolio assets and settlement balances
 


 
 
1  
The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and IAS 19 Employee Benefits (Revised 2011).
2  
Includes Liquidity Pool of £141bn (2012: £150bn).
3  
Comprising financial assets designated at fair value and associated cash balances.
 
 
 
 
Appendix IV – Credit Risk
 
Retail and Wholesale Loans and Advances to Customers and Banks
As at 31.03.13 
Gross
 L&A
Impairment Allowance
L&A Net of Impairment
Credit Risk
Loans
CRLs % of Gross L&A
Loan Impairment Charges1 
Loan Loss
 Rate 
  
£m
£m
£m
£m
%
£m 
bps 
Total retail 
240,061 
4,687 
235,374 
8,621 
3.6 
561  
95  
Wholesale - customers 
225,667 
3,124 
222,543 
6,054 
2.7 
145  
26  
Wholesale - banks 
43,294 
35 
43,259 
54 
0.1 
(8) 
(7) 
Total wholesale 
268,961 
3,159 
265,802 
6,108 
2.3 
137  
21  
  
          
  
  
Loans and advances at amortised cost 
509,022 
7,846 
501,176 
14,729 
2.9 
698  
56  
Traded loans 
2,523 
n/a
2,523 
    
  
  
Loans and advances designated at fair value 
21,659 
n/a
21,659 
    
  
  
Loans and advances held at fair value 
24,182 
n/a
24,182 
    
  
  
  
          
  
  
Total loans and advances 
533,204 
7,846 
525,358 
    
  
  
  
          
  
  
As at 31.12.122 
          
  
  
Total retail 
232,672 
4,635 
228,037 
8,821 
3.8 
2,075  
89  
Wholesale - customers 
199,423 
3,123 
196,300 
6,252 
3.1 
1,251  
63  
Wholesale - banks 
40,072 
41 
40,031 
51 
0.1 
(23) 
(6) 
Total wholesale 
239,495 
3,164 
236,331 
6,303 
2.6 
1,228  
51  
  
          
  
  
Loans and advances at amortised cost 
472,167 
7,799 
464,368 
15,124 
3.2 
3,303  
70  
Traded loans 
2,410 
n/a
2,410 
    
  
  
Loans and advances designated at fair value 
21,996 
n/a
21,996 
    
  
  
Loans and advances held at fair value 
24,406 
n/a
24,406 
    
  
  
  
          
  
  
Total loans and advances 
496,573 
7,799 
488,774 
    
  
  

 


1  
Loan impairment charge as at December 2012 is the charge for the 12 month period.
2  
Comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and portfolio restatements between businesses.
 
 
Appendix IV – Credit Risk
 
Retail Loans and Advances to Customers and Banks at Amortised Cost
  
  
As at 31.03.13 
Gross L&A
Impairment Allowance
L&A Net of Impairment
Credit Risk Loans
CRLs % of Gross L&A
Loan Impairment Charges1,4
Loan Loss  Rates
  
£m
£m
£m
£m
%
£m 
bps
UK RBB 
 136,104 
 1,349 
 134,755 
 2,819 
 2.1 
 89  
 27 
Europe RBB2 
 40,793 
 600 
 40,193 
 1,747 
 4.3 
 70  
 70 
Africa RBB 
 23,786 
 724 
 23,062 
 1,659 
 7.0 
 98  
 167 
Barclaycard 
 36,093 
 1,941 
 34,152 
 2,303 
 6.4 
 303  
 340 
Corporate Banking3 
 631 
 56 
 575 
 59 
 9.4 
 -  
 - 
Wealth and Investment Management 
 2,654 
 17 
 2,637 
 34 
 1.3 
 1  
 15 
Total 
 240,061 
 4,687 
 235,374 
 8,621 
 3.6 
 561  
 95 
  
          
  
  
As at 31.12.125 
          
  
  
UK RBB 
 129,682 
 1,369 
 128,313 
 2,883 
2.2 
 269  
 21 
Europe RBB2 
 39,997 
 560 
 39,437 
 1,734 
4.3 
 257  
 64 
Africa RBB 
 23,987 
 700 
 23,287 
 1,790 
7.5 
 472  
 197 
Barclaycard 
 35,732 
 1,911 
 33,821 
 2,288 
6.4 
 1,050  
 294 
Corporate Banking3 
 739 
 79 
 660 
 92 
12.4 
 27  
 365 
Wealth and Investment Management 
 2,535 
 16 
 2,519 
 34 
1.3 
 -  
 - 
Total 
 232,672 
 4,635 
 228,037 
 8,821 
3.8 
 2,075  
 89 

 


1  
Loan impairment charges, comprising impairment on loans and advances and charges in respect of undrawn facilities and guarantees.
2  
Includes loans and advances to business customers.
3  
Primarily comprises retail portfolios in India and UAE.
4  
Loan impairment charge as at December 2012 is the charge for the 12 month period.
5  
Comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and the portfolio restatements between businesses.


 


Appendix IV – Credit Risk
 

Wholesale Loans and Advances to Customers and Banks at Amortised Cost
  
  

 
As at 31.03.13 
Gross
L&A
Impairment Allowance
L&A Net of Impairment 
Credit
Risk Loans 
CRLs % of Gross L&A
Loan Impairment Charges3 
Loan Loss Rates
 
£m
£m
£m 
£m 
%
£m 
bps
Africa RBB 
 7,416 
 222 
 7,194  
715  
9.6 
 16  
 88 
Investment Bank1 
 170,871 
 562 
 170,309  
583  
0.3 
(20) 
(5)
Corporate Banking 
 69,069 
 2,225 
 66,844  
4,159  
6.0 
 128  
 75 
- UK 
 53,372 
 423 
 52,949  
1,288  
2.4 
 30  
 23 
- Europe 
 8,186 
 1,605 
 6,581  
2,632  
32.2 
 96  
 477 
- Rest of World 
 7,511 
 197 
 7,314  
239  
3.2 
 2  
 11 
Wealth and Investment Management 
 20,096 
 135 
 19,961  
632  
3.1 
 13  
 26 
Head Office and Other Operations 
 1,509 
 15 
 1,494  
19  
1.3 
 -  
 - 
Total 
 268,961 
 3,159 
 265,802  
6,108  
2.3 
 137  
 21 
  
    
  
  
  
  
  
As at 31.12.122 
    
  
  
  
  
  
Africa RBB 
 7,313 
 250 
 7,063  
681  
9.3 
 160  
 219 
Investment Bank1 
 144,143 
 586 
 143,557  
768  
0.5 
 192  
 13 
Corporate Banking 
 67,337 
 2,171 
 65,166  
4,232  
6.3 
 838  
 124 
- UK 
 52,667 
 428 
 52,239  
 1,381  
2.6 
 279  
 53 
- Europe 
 8,122 
 1,536 
 6,586  
 2,607  
32.1 
 527  
 649 
- Rest of World 
 6,548 
 207 
 6,341  
 244  
3.7 
 32  
 49 
Wealth and Investment Management 
 19,236 
 141 
 19,095  
603  
3.1 
 38  
 20 
Head Office and Other Operations 
 1,466 
 16 
 1,450  
19  
1.3 
 -  
 - 
Total 
 239,495 
 3,164 
 236,331  
6,303  
2.6 
 1,228  
 51 

 
 
 
1  
Investment Bank gross loans and advances include cash collateral and settlement balances of £110,165m as at 31 March 2013 and £85,116m as at 31 December 2012. Excluding these balances CRLs as a proportion of gross loans and advances were 1.0% and 1.3% respectively.
2  
Comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements and the portfolio restatements between businesses.
3  
Loan impairment charge as at December 2012 is the charge for the 12 month period.
 
Appendix IV – Credit Risk
 
Group Exposures to Eurozone Countries1
 
 
—  
The Group recognises the credit and market risk resulting from the ongoing volatility in the Eurozone and continues to monitor events closely while taking coordinated steps to mitigate the risks associated with the challenging economic environment
 
 
—  
During Q1 13 the Group’s net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece remained stable at £59.4bn (2012: £59.3bn)
 
-  
Sovereign exposure decreased 12% to £4.8bn principally due to a reduction in Italian government bonds held as available for sale
 
-  
Exposure to retail customers and corporate clients rose marginally by 1% to £48.4bn. Excluding the effects of foreign exchange, exposure reduced 3% reflecting the Group’s continuing focus on managing exposures in Spain, Italy and Portugal
 
-  
Exposure to financial institutions rose by 9% to £6.2bn driven by increased lending to a single Irish counterparty
 
 
—  
The local net funding mismatches in Italy and Portugal were broadly stable in Q1 13. As at 31 March 2013, the deficit in Italy was €11.9bn (2012: €11.8bn) and the deficit in Portugal was €4.3bn (2012: €4.1bn). The net funding surplus in Spain was €1.3bn (2012: €2.3bn). Barclays continues to monitor the potential impact of the Eurozone volatility on local balance sheet funding and will consider actions as appropriate to manage the risk
 
 
—  
The Group continues to monitor developments in Cyprus and has taken steps to mitigate the financial and operational risks:
 
-  
The Group‘s exposure to Cyprus remains minimal at £177m (2012: £184m), with exposure predominantly relating to corporate counterparties whose main operations are outside of Cyprus
 
-  
As at 31 March 2013 Barclays’ Cyprus branch had €1.3bn of customer deposits. Subsequent to the reopening of the Cyprus banking system on 28 March 2013, the branch saw €0.2bn of deposit outflow. There has been no observed impact of the Cyprus banking crisis on customers outside of the branch including retail and corporate deposits in our other European business

 

1  The comparatives on pages 33 to 39 have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements.
 
Appendix IV – Credit Risk
 
 
Summary of Group Exposures
 
—  
The following table shows Barclays exposure to Eurozone countries monitored internally as being higher risk and thus being the subject of particular management focus. Detailed analysis on these countries is on pages 35 to 39. The basis of preparation is consistent with that described in the 2012 Annual Report
 
 
—  
The net exposure provides the most appropriate measure of the credit risk to which the Group is exposed. The gross exposure is also presented below, alongside off-balance sheet contingent liabilities and commitments
 

 
 
 
 
  
Other
Net on- 
  
Gross on-
Contingent
 
 
Financial
 
Residential
 retail
balance sheet 
  
balance sheet
liabilities and
 
Sovereign
institutions
Corporate
mortgages
lending
exposure 
  
exposure
commitments
As at 31.03.13
£m
£m
£m
£m
£m
£m 
  
£m
£m
Spain
 1,816 
 1,719 
 4,033 
 13,587 
 2,592 
 23,747  
  
 33,047 
 3,257 
Italy
 2,247 
 346 
 1,660 
 15,847 
 2,123 
 22,223  
  
 32,509 
 3,070 
Portugal
 661 
 21 
 1,587 
 3,591 
 1,776 
 7,636  
  
 8,328 
 2,627 
Ireland
 31 
 4,149 
 1,208 
 108 
 96 
 5,592  
  
 11,037 
 1,496 
Cyprus
 - 
 - 
 101 
 39 
 37 
 177  
  
 287 
 48 
Greece
 2 
 - 
 6 
 6 
 13 
 27  
  
 1,077 
 3 
           
  
      
As at 31.12.12
          
  
      
Spain
 2,067 
 1,525 
 4,138 
 13,305 
 2,428 
 23,463  
  
 32,374 
 3,301 
Italy
 2,669 
 567 
 1,962 
 15,591 
 1,936 
 22,725  
  
 33,029 
 3,082 
Portugal
 637 
 48 
 1,958 
 3,474 
 1,783 
 7,900  
  
 8,769 
 2,588 
Ireland
 21 
 3,585 
 1,127 
 112 
 83 
 4,928  
  
 10,078 
 1,644 
Cyprus
 8 
 - 
 106 
 44 
 26 
 184  
  
 300 
 131 
Greece
 1 
 - 
 61 
 8 
 9 
 79  
  
 1,262 
 5 


 
—  
Barclays has exposures to other Eurozone countries as set out below. Total net on-balance sheet exposures to individual countries that are less than £1bn are reported in aggregate under Other
 

           
  
      
         
Other
Net on- 
  
Gross on-
Contingent
   
Financial
  
Residential
retail
balance sheet 
  
balance sheet
liabilities and
 
Sovereign
institutions
Corporate
mortgages
lending
exposure
  
exposure
commitments
As at 31.03.13
£m
£m
£m
£m
£m
£m 
  
£m
£m
France
 3,408 
 5,543 
 4,925 
 2,571 
 190 
 16,637  
  
 60,428 
 8,413 
Germany
 1,590 
 5,184 
 6,841 
 26 
 1,874 
 15,515  
  
 63,739 
 7,047 
Netherlands
 4,209 
 4,475 
 1,937 
 14 
 69 
 10,704  
  
 29,956 
 2,432 
Belgium
 2,789 
 6 
 316 
 10 
 6 
 3,127  
  
 10,821 
 1,595 
Luxembourg
 42 
 779 
 861 
 218 
 31 
 1,931  
  
 5,713 
 922 
Austria
 1,470 
 287 
 194 
 1 
 4 
 1,956  
  
 4,294 
 138 
Finland
 1,201 
 163 
 35 
 3 
 - 
 1,402  
  
 7,882 
 478 
Other
 203 
 3 
 34 
 5 
 65 
 310  
  
 586 
 10 
           
  
      
As at 31.12.12
          
  
      
France
 3,746 
 5,553 
 4,042 
 2,607 
 121 
 16,069  
  
 59,317 
 7,712 
Germany
 282 
 4,462 
 4,959 
 27 
 1,734 
 11,464  
  
 62,043 
 6,604 
Netherlands
 3,503 
 4,456 
 2,002 
 16 
 92 
 10,069  
  
 28,565 
 2,205 
Belgium
 2,548 
 333 
 239 
 9 
 6 
 3,135  
  
 10,602 
 1,525 
Luxembourg
 13 
 1,127 
 704 
 151 
 49 
 2,044  
  
 6,009 
 812 
Austria
 1,047 
 228 
 187 
 5 
 - 
 1,467  
  
 3,930 
 127 
Finland
 1,044 
 209 
 140 
 3 
 - 
 1,396  
  
 9,120 
 461 
Other
 210 
 9 
 24 
 26 
 41 
 310  
  
 649 
 25 





Appendix IV – Credit Risk
 
Spain
                
Designated
  
  
  
Fair Value through Profit and Loss
Trading Portfolio
  
Derivatives
at FV
Total 
  
Total 
           
Cash
  
through
as at 
  
as at 

 
Assets
Liabilities
Net
  
Assets
Liabilities
Collateral
Net
P&L
31.03.13 
  
31.12.12 
 
£m
£m
£m
 
£m
£m
£m
£m
£m
£m  
  
£m  
Sovereign
 1,073 
 (1,073)
 - 
  
 30 
 (30)
 - 
 - 
 367 
 367  
  
 476  
Financial institutions
 844 
 (158)
 686 
  
 7,731 
 (7,217)
 (514)
 - 
 314 
 1,000  
  
 788  
Corporate
 345 
 (100)
 245 
  
 434 
 (208)
 - 
 226 
 400 
 871  
  
 817  
                   
  
  
  
                   
  
  
Total 

Fair Value through Other Comprehensive Income (OCI)
Available for Sale Assets as at 31.03.131 
  
as at 
         
Cost
AFS Reserve
  
Total 
  
31.12.12 
         
£m
£m
 
£m  
  
£m  

Sovereign
        
 1,427 
  
 (8)
  
 1,419  
  
 1,562  
Financial institutions
        
 506 
  
 6 
  
 512  
  
 480  
Corporate
          
 8 
  
 - 
  
 8  
  
 10  
                   
  
  
  

Held at Amortised Cost
    
Loans and Advances as at 31.03.13 
  
Total 

               
Impairment
  
  
  
as at 
           
Gross
 
Allowances
  
Total 
  
31.12.12 
           
£m
 
£m
 
£m  
  
£m  
Sovereign
          
 30 
  
 - 
  
 30  
  
 29  
Financial institutions
        
 216 
  
 (9)
  
 207  
  
 257  
Residential mortgages
        
 13,718 
  
 (131)
  
 13,587  
  
 13,305  
Corporate
          
 4,288 
  
 (1,134)
  
 3,154  
  
 3,311  
Other retail lending
        
 2,716 
  
 (124)
  
 2,592  
  
 2,428  
                   
  
  
  

Contingent Liabilities and Commitments
            
Total 
  
Total 
             
as at 
  
as at 

                   
31.03.13 
  
31.12.12 
                   
£m 
  
£m 
Financial institutions
                
 167  
  
 88  
Residential mortgages
                
 10  
  
 12  
Corporate
                  
 1,896  
  
 1,938  
Other retail lending
                
 1,184  
  
 1,263  

 

 


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.
 
 
Appendix IV – Credit Risk
 
Italy
                
Designated
  
  
  
Fair Value through Profit and Loss
Trading Portfolio
  
Derivatives
at FV
Total 
  
Total 
           
Cash
  
through
as at 
  
as at 

 
Assets
Liabilities
Net
  
Assets
Liabilities
Collateral
Net
P&L
31.03.13 
  
31.12.12 
 
£m
£m
£m
 
£m
£m
£m
£m
£m
£m  
  
£m  
Sovereign
 2,508 
 (2,317)
 191 
  
 1,775 
 (668)
 - 
 1,107 
 3 
 1,301  
  
 1,123  
Financial institutions
 196 
 (104)
 92 
  
 6,375 
 (4,367)
 (2,008)
 - 
 180 
 272  
  
 391  
Corporate
 236 
 (196)
 40 
  
 709 
 (475)
 (151)
 83 
 323 
 446  
  
 699  
                   
  
  
  
                   
  
  
Total 

Fair Value through OCI
    
Available for Sale Assets as at 31.03.131 
  
as at 
         
Cost
AFS Reserve
  
Total 
  
31.12.12 
         
£m
£m
 
£m  
  
£m  

Sovereign
        
 929 
  
 17 
  
 946  
  
 1,537  
Financial institutions
        
 57 
  
 2 
  
 59  
  
 138  
Corporate
          
 28 
  
 2 
  
 30  
  
 29  
                   
  
  
  

Held at Amortised Cost
    
Loans and Advances as at 31.03.13 
  
Total 
               
Impairment
  
  
  
as at 
           
Gross
 
Allowances
  
Total 
  
31.12.12 
           
£m
 
£m
 
£m  
  
£m  

Sovereign
          
 - 
  
 - 
  
 -  
  
 9  
Financial institutions
        
 15 
  
 - 
  
 15  
  
 38  
Residential mortgages
        
 15,963 
  
 (116)
  
 15,847  
  
 15,591  
Corporate
          
 1,318 
  
 (134)
  
 1,184  
  
 1,234  

Other retail lending
        
 2,242 
  
 (119)
  
 2,123  
  
 1,936  
                   
  
  
  

Contingent Liabilities and Commitments
            
Total 
  
Total 
             
as at 
  
as at 

                   
31.03.13 
  
31.12.12 
                   
£m 
  
£m 
Financial institutions
                
 126  
  
 90  
Residential mortgages
                
 44  
  
 45  
Corporate
                  
 2,102  
  
 2,158  
Other retail lending
                
 798  
  
 789  

 



 
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.
 
 
Appendix IV – Credit Risk
 
Portugal
                
Designated
  
    
Fair Value through
Trading Portfolio
  
Derivatives
at FV
Total 
  
Total

Profit and Loss
            
Cash
  
through
as at 
  
as at
 
Assets
Liabilities
Net
  
Assets
Liabilities
Collateral
Net
P&L
31.03.13 
  
31.12.12
 
£m
£m
£m
 
£m
£m
£m
£m
£m
£m  
  
£m
Sovereign
 73 
 (73)
 - 
  
 264 
 (264)
 - 
 - 
 - 
 -  
  
 8 
Financial institutions
 26 
 (21)
 5 
  
 205 
 (154)
 (51)
 - 
 - 
 5  
  
 18 
Corporate
 23 
 (22)
 1 
  
 273 
 (102)
 (5)
 166 
 - 
 167  
  
 252 
                   
  
    
                   
  
  
Total

Fair Value through OCI
    
Available for Sale Assets as at 31.03.131 
  
as at
         
Cost
AFS Reserve
  
Total 
  
31.12.12
         
£m
£m
 
£m  
  
£m

Sovereign
        
 627 
  
 1 
  
 628  
  
 594 
Financial institutions
        
 2 
  
 - 
  
 2  
  
 2 
Corporate
          
 188 
  
 (1)
  
 187  
  
 331 
                   
  
    

Held at Amortised Cost
    
Loans and Advances as at 31.03.13 
  
Total

               
Impairment
  
  
  
as at
           
Gross
 
Allowances
  
Total 
  
31.12.12
           
£m
 
£m
 
£m  
  
£m
Sovereign
          
 33 
  
 - 
  
 33  
  
 35 
Financial institutions
        
 23 
  
 (9)
  
 14  
  
 28 
Residential mortgages
        
 3,622 
  
 (31)
  
 3,591  
  
 3,474 
Corporate
          
 1,564 
  
 (331)
  
 1,233  
  
 1,375 
Other retail lending
        
 1,978 
  
 (202)
  
 1,776  
  
 1,783 
                   
  
    

Contingent Liabilities and Commitments
            
Total 
  
Total

             
as at 
  
as at
                   
31.03.13 
  
31.12.12
                   
£m 
  
£m
Financial institutions
                
 2  
  
 1 
Residential mortgages
                
 21  
  
 25 
Corporate
                  
 865  
  
 889 
Other retail lending
                
 1,739  
  
 1,673 
 

 
 
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.
 
 
Appendix IV – Credit Risk
 
Ireland
                
Designated
  
  
  
Fair Value through
Trading Portfolio
  
Derivatives
at FV
Total 
  
Total 

Profit and Loss
            
Cash
  
through
as at 
  
as at 
 
Assets
Liabilities
Net
  
Assets
Liabilities
Collateral
Net
P&L
31.03.13 
  
31.12.12 
 
£m
£m
£m
 
£m
£m
£m
£m
£m
£m  
  
£m  
Sovereign
 241 
 (241)
 - 
  
 242 
 (11)
 (231)
 - 
 21 
 21  
  
 12  
Financial institutions
 1,202 
 (56)
 1,146 
  
 4,764 
 (3,628)
 (1,136)
 - 
 502 
 1,648  
  
 1,558  
Corporate
 301 
 (76)
 225 
  
 155 
 (65)
 (1)
 89 
 80 
 394  
  
 293  
                   
  
  
  
                   
  
  
Total 

Fair Value through OCI
    
Available for Sale Assets as at 31.03.131 
  
as at 
         
Cost
AFS Reserve
  
Total 
  
31.12.12 
         
£m
£m
 
£m  
  
£m  

Sovereign
        
 9 
  
 1 
  
 10  
  
 9  
Financial institutions
        
 51 
  
 (3)
  
 48  
  
 60  
Corporate
          
 4 
  
 - 
  
 4  
  
 4  
                   
  
  
  

Held at Amortised Cost
    
Loans and Advances as at 31.03.13 
  
Total 

               
Impairment
  
  
  
as at 
           
Gross
 
Allowances
  
Total 
  
31.12.12 
           
£m
 
£m
 
£m  
  
£m  
Financial institutions
        
 2,453 
  
 - 
  
 2,453  
  
 1,967  
Residential mortgages
        
 116 
  
 (8)
  
 108  
  
 112  
Corporate
          
 830 
  
 (20)
  
 810  
  
 830  
Other retail lending
        
 96 
  
 - 
  
 96  
  
 83  
                   
  
  
  

Contingent Liabilities and Commitments
            
Total 
  
Total 
             
as at 
  
as at 

                   
31.03.13 
  
31.12.12 
                   
£m 
  
£m 
Financial institutions
                
 667  
  
 628  
Corporate
                  
 829  
  
 1,007  
Other retail lending
                
 -  
  
 9  

 

 
 
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.
 
 
Appendix IV – Credit Risk
 
Cyprus
                
Designated
  
    
Fair Value through
Trading Portfolio
  
Derivatives
at FV
Total 
  
Total

Profit and Loss
            
Cash
  
through
as at 
  
as at
 
Assets
Liabilities
Net
  
Assets
Liabilities
Collateral
Net
P&L
31.03.13 
  
31.12.12
   
£m
£m
 
£m
£m
£m
£m
£m
£m  
  
£m
Financial institutions
 - 
 - 
 - 
  
 109 
 (55)
 (54)
 - 
 - 
 -  
  
 - 
Corporate
 - 
 - 
 - 
  
 2 
 (1)
 - 
 1 
 - 
 1  
  
 12 
                   
  
    

Held at Amortised Cost
    
Loans and Advances as at 31.03.13 
  
Total

               
Impairment
  
  
  
as at
           
Gross
 
Allowances
  
Total 
  
31.12.12
           
£m
 
£m
 
£m  
  
£m
Sovereign
          
 - 
  
 - 
  
 -  
  
 8 
Residential mortgages
        
 39 
  
 - 
  
 39  
  
 44 
Corporate
          
 101 
  
 (1)
  
 100  
  
 94 
Other retail lending
        
 37 
  
 - 
  
 37  
  
 26 
                   
  
    

Contingent Liabilities and Commitments
            
Total 
  
Total
             
as at 
  
as at

                   
31.03.13 
  
31.12.12
                   
£m 
  
£m
Corporate
                  
 33  
  
 94 
Other retail lending
                
 15  
  
 37 
                   
  
    



Greece
                
Designated
  
    
Fair Value through
Trading Portfolio
  
Derivatives
at FV
Total 
  
Total

Profit and Loss
            
Cash
  
through
as at 
  
as at
 
Assets
Liabilities
Net
  
Assets
Liabilities
Collateral
Net
P&L
31.03.13 
  
31.12.12
 
£m
£m
£m
 
£m
£m
£m
£m
£m
£m  
  
£m
Sovereign
 2 
 - 
 2 
  
 - 
 - 
 - 
 - 
 - 
 2  
  
 1 
Financial institutions
 - 
 - 
 - 
  
 1,050 
 (117)
 (933)
 - 
 - 
 -  
  
 - 
Corporate
 3 
 - 
 3 
  
 - 
 - 
 - 
 - 
 - 
 3  
  
 3 
                   
  
    

Held at Amortised Cost
    
Loans and Advances as at 31.03.13 
  
Total

               
Impairment
  
  
  
as at
           
Gross
 
Allowances
  
Total 
  
31.12.12
           
£m
 
£m
 
£m  
  
£m
Residential mortgages
        
 6 
  
 - 
  
 6  
  
 8 
Corporate
          
 3 
  
 - 
  
 3  
  
 58 
Other retail lending
        
 23 
  
 (10)
  
 13  
  
 9 
                   
  
    

Contingent Liabilities and Commitments
            
Total 
  
Total
             
as at 
  
as at

                   
31.03.13 
  
31.12.12
                   
£m 
  
£m
Corporate
                  
 3  
  
 3 
Other retail lending
                
 -  
  
 2 
 
 
 
Appendix IV – Credit Risk
 
Barclays Credit Market Exposures1
 

  
  
  
  
  
  
Three Months Ended 31.03.13
  
As at 31.03.13 
As at 31.12.122 
As at 31.03.13 
As at 31.12.122 
  
Fair Value Gains/ (Losses) and Net Funding
Impairment
(Charge)/ Release
Total Gains/
(Losses)
US Residential Mortgages 
$m 
$m 
£m 
£m 
  
£m
£m
£m
ABS CDO Super Senior 
1,505  
1,491  
991  
922  
  
72 
- 
72 
US sub-prime and Alt-A3 
1,004  
1,133  
661  
700  
  
43 
- 
43 
  
  
  
  
  
        
Commercial Mortgages 
  
  
  
  
        
Commercial real estate loans and properties 
4,135  
4,411  
2,722  
2,727  
  
4
- 
4
Commercial Mortgage Backed Securities3 
419  
411  
276  
254  
  
15 
- 
15 
  
  
  
  
  
        
Other Credit Market  
  
  
  
  
        
Leveraged Finance4 
4,847  
5,732  
3,191  
3,544  
  
(12)
- 
(12)
Monoline protection on CLO and other 
676  
956  
445  
591  
  
(11)
- 
(11)
CLO and other assets3 
176  
176  
116  
109  
  
2 
- 
2 
  
  
  
  
  
        
Total 
12,762  
14,310  
8,402  
8,847  
  
113 
- 
113 

 
·  
During Q1 2013, credit market exposures decreased by £445m to £8,402m, reflecting net sales and paydowns and other movements of £855m, offset by foreign exchange movements of £297m and net fair value gains of £113m. Net sales, paydowns and other movements of £855m included:
 
-  
£341m leveraged finance primarily relating to three counterparties
 
-  
£169m monoline protection on CLO and other
 
-  
£138m of commercial real estate loans and properties
 
-  
£124m US sub-prime and Alt-A
 
-  
£72m ABS CDO Super Senior
 
 
—  
Leveraged finance exposures are accounted for at amortised cost less impairment. The fair value of these exposures as at 31 March 2013 was £2,822m (2012: £3,059m). Materially, all other credit market exposures are accounted for on a fair value basis
 
 
 
 
 
1As the majority of exposure is held in US Dollars, the exposures above are shown in both US Dollars and Sterling.
 
2The comparatives have been restated to reflect the implementation of IFRS 10 Consolidated Financial Statements.
 
3Collateral assets of £707m (2012: £719m) previously underlying the Protium loan are now included within the relevant asset classes as the assets are managed alongside similar credit market exposures. These assets comprised: US sub-prime and Alt-A £310m ( 2012: £352m), commercial mortgage-backed securities £281m (2012: £258m), CLO and other assets £116m (2012: £109m).
 
4Includes undrawn commitments of £201m (2012: £202m).

 
 

Appendix V – Other Information
 
Other Information 
  
  
  
  
  
  
  
Results Timetable1 
Date
  
  
Ex-dividend date 
1 May 2013
  
Dividend Record date 
3 May 2013
  
Dividend Payment date 
7 June 2013
  
2013 Interim Results Announcement 
30 July 2013
  
  
  
  
  
  
Three Months Ended
Three Months Ended 
Change3 
Exchange Rates2 
31.03.13
31.03.12 
  
Period end - US$/£ 
1.52 
1.60  
5% 
Average - US$/£ 
1.55 
1.57  
1% 
Period end - €/£ 
1.18 
1.20  
2% 
Average - €/£ 
1.17 
1.20  
3% 
Period end - ZAR/£ 
13.96 
12.28  
(12%) 
Average - ZAR/£ 
13.87 
12.17  
(12%) 
  
  
  
  
Share Price Data 
31.03.13
31.03.12 
  
Barclays PLC (p) 
291.15 
235.25  
  
Absa Group Limited (ZAR) 
155.00 
156.00  
  
  
  
  
  
For Further Information Please Contact 
  
  
  
  
  
  
  
Investor Relations 
Media Relations
  
  
Charlie Rozes +44 (0) 20 7116 5752 
Giles Croot +44 (0) 20 7116 6132 
  
  
  
  
  
More information on Barclays can be found on our website: www.barclays.com 
  
 

 
 
1  
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 represents the percentage change in the sterling value of the relevant foreign currency on the basis of the exchange rates disclosed.  The change in exchange rates affects the amounts of foreign currency balances and transactions reported in the interim management statement.