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 27, 2023

 

Barclays PLC

(Name of Registrant)

 

1 Churchill Place

London E14 5HP

England

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F

 

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 on Form 6-K is filed by Barclays PLC.

 

This Report comprises:

 

Information given to The London Stock Exchange and furnished pursuant to

General Instruction B to the General Instructions to Form 6-K.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

	BARCLAYS PLC
	(Registrant)

 

 

 

Date: April 27, 2023

 

 

	By: /s/ Garth Wright --------------------------------
	Garth Wright
	Assistant Secretary

 

 

 

Barclays PLC

 

Q1 2023 Results Announcement

 

31 March 2023

 

Notes

 

The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the three months ended 31 March 2023 to the corresponding three months of 2022 and balance sheet analysis as at 31 March 2023 with comparatives relating to 31 December 2022 and 31 March 2022. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.

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

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, which can be accessed at home.barclays/investor-relations.

The information in this announcement, which was approved by the Board of Directors on 26 April 2023, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2022, which contained an unmodified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

These results will be furnished on Form 6-K with the US Securities and Exchange Commission (SEC) as soon as practicable following their publication. Once furnished with the SEC, a copy of the Form 6-K will be available from the SEC’s website at www.sec.gov.

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group.

 

Non-IFRS performance measures

Barclays’ management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays’ management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 38 to 43 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures.

 

Forward-looking statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group’s future financial position, income levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions (including dividend policy and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), business strategy, plans and objectives for future operations and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulation and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the policies and actions of governmental and regulatory authorities; the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents and similar events beyond the Group’s control; the impact of competition; capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the Russia-Ukraine war on European and global macroeconomic conditions, political stability and financial markets; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the UK’s exit from the European Union (EU), the effects of the EU-UK Trade and Cooperation Agreement and any disruption that may subsequently result in the UK and globally; the risk of cyber-attacks, information or security breaches or technology failures on the Group’s reputation, business or operations; the Group’s ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group’s control. As a result, the Group’s actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group’s forward-looking statements. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in Barclays PLC’s filings with the SEC (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the financial year ended 31 December 2022), which are available on the SEC’s website at www.sec.gov.

 

Subject to Barclays PLC’s obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US) in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Performance Highlights

 

Barclays delivered a return on tangible equity (RoTE) of 15.0% and remains on track to deliver its 2023 targets, with all performance metrics in line with or ahead of guidance at Q123

 

C. S. Venkatakrishnan, Group Chief Executive, commented "This is a strong first quarter with Group income up 11% to £7.2bn and profit before tax up 16% to £2.6bn, generating a Group RoTE of 15.0% and earnings per share (EPS) of 11.3p. All three businesses have performed well with high quality income growth and double-digit returns. The momentum across the Group allows us to maintain a robust capital position, deliver attractive returns to shareholders, and support our customers and clients through an uncertain economic environment."

 

Key financial metrics:

 

	Income	Cost: income ratio	LLR	Profit before tax	Attributable profit	RoTE	EPS	LCR	Loan: deposit ratio	TNAV per share	CET1 ratio
Q123	£7.2bn	57%	52bps	£2.6bn	£1.8bn	15.0%	11.3p	163%	73%	301p	13.6%

 

Q123 Performance highlights:

 

●	Group attributable profit was £1.8bn and RoTE was 15.0%, with all operating divisions delivering double-digit returns
●	Group income was £7.2bn, up 11% year-on-year, with diverse sources of growth across the Group as well as the benefit from USD appreciation:
	–	Barclays UK income increased 19% primarily driven by net interest income growth from higher rates and continued structural hedge income momentum, delivering a net interest margin (NIM) of 3.18%
	–	Corporate and Investment Bank (CIB) income increased 1% to £4.0bn, representing a record Q1 income performance1. Drivers included a strong performance in Transaction banking and Global Markets, against a record prior year comparative, with lower Investment Banking income due to a reduced industry fee pool2
	–	Consumer, Cards and Payments (CC&P) income increased 47% from growth in US cards balances, including the Gap portfolio acquisition3, and growth in client assets and liabilities in the Private Bank, as well as the higher rate environment
●	Group operating expenses were £4.1bn, in line with prior year, including the non-repeat of certain litigation and conduct items. Group operating expenses excluding litigation and conduct charges increased to £4.1bn (Q122: £3.6bn) reflecting the impact of business growth, inflation and USD appreciation. The Group delivered positive statutory cost: income jaws and a cost: income ratio of 57%
●	Credit impairment charges were £0.5bn, with a loan loss rate (LLR) of 52bps, within the guided range of 50-60bps, reflecting higher US cards balances and the continuing normalisation anticipated in US cards delinquencies. Coverage ratios remain strong
●	Common Equity Tier 1 (CET1) ratio of 13.6% (December 2022: 13.9%) reflected the expected reduction of an aggregate c.40bps of capital impacts in Q123 including the £0.5bn buyback announced at FY22, and seasonally higher Risk Weighted Assets (RWAs) in the Global Markets business, which supported the strong Q1 income performance
●	Tangible net asset value (TNAV) per share of 301p, increased 6p since December 2022
●	Liquidity coverage ratio (LCR) of 163% (December 2022: 165%) and Net Stable Funding Ratio (NSFR) of 139% (December 2022: 137%), well above regulatory minimum requirements
●	Loan: deposit ratio was maintained at 73% (December 2022: 73%). The Group maintains a diverse and stable deposit franchise including across wholesale and consumer as well as across different geographies

 

1	On a comparable basis, period covering 2014-Q123. Pre 2014 data was not restated following re-segmentation in 2016.
2	Data source: Dealogic for the period covering 1 January to 31 March 2023.
3	The Gap portfolio refers to the Gap Inc. US credit card portfolio.

 

Group Targets and Outlook:

●	Returns: targeting RoTE of greater than 10% in 2023, consistent with our medium-term target
●	Income: diversified income streams continue to position the Group well for the current economic and market environment including higher interest rates. In 2023, Barclays UK NIM is expected to be greater than 3.20%1
●	Costs: targeting a cost: income ratio percentage in the low 60s in 2023, investing for growth whilst progressing towards the Group’s medium-term target of below 60%
●	Impairment: expect an LLR of 50-60bps in 2023, based on the current macroeconomic outlook
●	Capital: expect to operate within the CET1 ratio medium-term target range of 13-14%
●	Capital returns: capital distribution policy incorporates a progressive ordinary dividend, supplemented with share buybacks as appropriate

 

1	Assumes the UK bank rate peaks at 4.25% in 2023.

 

Barclays Group results for the three months ended
	31.03.23	31.03.22
	£m	£m	% Change
Barclays UK	1,961	1,649	19
Corporate and Investment Bank	3,976	3,938	1
Consumer, Cards and Payments	1,306	886	47
Barclays International	5,282	4,824	9
Head Office	(6)	23
Total income	7,237	6,496	11
Operating costs	(4,111)	(3,588)	(15)
Litigation and conduct	1	(523)
Total operating expenses	(4,110)	(4,111)	—
Other net expenses	(5)	(10)	50
Profit before impairment	3,122	2,375	31
Credit impairment charges	(524)	(141)
Profit before tax	2,598	2,234	16
Tax charge	(561)	(614)	9
Profit after tax	2,037	1,620	26
Non-controlling interests	(8)	(1)
Other equity instrument holders	(246)	(215)	(14)
Attributable profit	1,783	1,404	27
Performance measures
Return on average tangible shareholders' equity	15.0%	11.5%
Average tangible shareholders' equity (£bn)	47.6	48.8
Cost: income ratio	57%	63%
Loan loss rate (bps)	52	15
Basic earnings per share	11.3p	8.4p
Basic weighted average number of shares (m)	15,770	16,682	(5)
Period end number of shares (m)	15,701	16,762	(6)

 

	As at 31.03.23	As at 31.12.22	As at 31.03.22
Balance sheet and capital management1	£bn	£bn	£bn
Loans and advances at amortised cost	403.5	398.8	371.7
Loans and advances at amortised cost impairment coverage ratio	1.4%	1.4%	1.5%
Total assets	1,539.1	1,513.7	1,496.1
Deposits at amortised cost	555.7	545.8	546.5
Tangible net asset value per share	301p	295p	294p
Common equity tier 1 ratio	13.6%	13.9%	13.8%
Common equity tier 1 capital	46.0	46.9	45.3
Risk weighted assets	338.4	336.5	328.8
UK leverage ratio	5.1%	5.3%	5.0%
UK leverage exposure	1,168.9	1,130.0	1,123.5
Average UK leverage ratio	4.8%	4.8%	4.8%
Average UK leverage exposure	1,251.3	1,281.0	1,179.4
Funding and liquidity
Group liquidity pool (£bn)	333.0	318.0	319.8
Liquidity coverage ratio	163%	165%	159%
Net stable funding ratio2	139%	137%
Loan: deposit ratio	73%	73%	68%

 

1	Refer to pages 29 to 34 for further information on how capital, RWAs and leverage are calculated.
2	Represents average of the last four spot quarter end positions.

 

Group Finance Director’s Review

 

Group performance

 

●	Barclays delivered a profit before tax of £2,598m (Q122: £2,234m), RoTE of 15.0% (Q122: 11.5%) and EPS of 11.3p (Q122: 8.4p)
●	The Group has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and total operating expenses
●	Group income increased 11% to £7,237m primarily from the higher interest rate environment and continued structural hedge income momentum benefiting Barclays UK, Transaction banking and the Private Bank, the benefit of higher balances in US cards, and growth in client assets and liabilities in the Private Bank
●	Group operating expenses were stable at £4,110m (Q122: £4,111m)
	–	Group operating expenses excluding litigation and conduct charges increased to £4,111m (Q122: £3,588m) reflecting the impact of business growth and inflation
	–	The prior year litigation and conduct charges of £523m included charges relating to the Over-issuance of Securities in the US (Over-issuance of Securities1) and customer remediation costs relating to a legacy loan portfolio
●	Credit impairment charges were £524m (Q122: £141m) reflecting higher US cards balances, including the Gap portfolio acquisition in Q222, and the continuing normalisation anticipated in US cards delinquencies. Total coverage ratio remains strong at 1.4% (December 2022: 1.4%)
●	The effective tax rate (ETR) was 21.6% (Q122: 27.5%). The prior year included the tax charge recognised for the re-measurement of the Group’s UK deferred tax assets as a result of the UK banking surcharge rate being reduced from 8% to 3%
●	Attributable profit was £1,783m (Q122: £1,404m)
●	Total assets increased to £1,539.1bn (December 2022: £1,513.7bn) driven by increased trading and client activity within Global Markets and the acquisition of Kensington Mortgage Company (KMC), partially offset by strengthening of GBP against USD since December 2022. The Group liquidity pool was further strengthened by growth in deposits and wholesale funding
●	TNAV per share increased to 301p (December 2022: 295p) as EPS of 11.3p and other reserve movements were partially offset by the 2022 full year dividend paid on 31 March 2023

 

Barclays UK

 

Barclays UK delivered a RoTE of 20.0% supported by higher interest rates and the continued investment in our transformation into a next-generation, digitised consumer bank.
●	Profit before tax increased 27% to £754m with a RoTE of 20.0% (Q122: 15.6%)
●	Total income increased 19% to £1,961m. Net interest income increased 21% to £1,618m with a NIM of 3.18% (Q122: 2.62%), continuing to build as higher interest rates and associated structural hedge benefit outweighed mortgage margin pressure. Net fee, commission and other income increased 11% to £343m partially driven by transactional income in Business Banking and UK cards
	–	Personal Banking income increased 23% to £1,253m, driven by higher interest rates, partially offset by mortgage margin compression
	–	Barclaycard Consumer UK income decreased 11% to £247m as higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management
	–	Business Banking income increased 31% to £461m driven by higher interest rates alongside improved transaction based revenues, partially offset by lower government scheme lending as repayments continue
●	Total operating expenses increased 9% to £1,094m from the impact of inflation with ongoing efficiency savings reinvested in digitisation to support further improvements to the cost: income ratio over time
●	Credit impairment charges were £113m (Q122: £48m), reflecting limited observed deterioration. UK cards 30 and 90 day arrears remained below pre-pandemic levels at 0.9% (Q122: 1.0%) and 0.2% (Q122: 0.3%) respectively2. The UK cards total coverage ratio was 7.7% (December 2022: 7.6%)
●	Loans and advances to customers at amortised cost increased 2% to £208.2bn primarily reflecting the acquisition of KMC
●	Customer deposits at amortised cost decreased 1% to £254.3bn. Increases in savings product balances were more than offset by reduced current account and business banking deposits, reflecting broader market trends. The loan: deposit ratio increased to 90% (December 2022: 87%)
●	RWAs increased to £74.6bn (December 2022: £73.1bn) including £0.8bn related to the acquisition of KMC

 

1	Denotes the Over-issuance of Securities under Barclays Bank PLC's (BBPLC) US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019.
2	As at 31 December 2019, UK cards 30 and 90 days arrears were 1.7% and 0.8% respectively.

 

Barclays International

 

Barclays International delivered a RoTE of 14.5%. CIB continued to support clients through a period of market volatility, with performance reflecting the benefits of income diversification and continued investment in sustainable growth. CC&P performance reflects continued investment in the business resulting in balance growth and increased income, partially offset by higher impairment charges.
●	Profit before tax increased 13% to £1,928m with a RoTE of 14.5% (Q122: 14.8%), reflecting a RoTE of 15.2% (Q122: 17.1%) in CIB and 10.5% (Q122: (1.5)%) in CC&P
●	Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits, and adversely impacted credit impairment charges and total operating expenses
●	Total income increased to £5,282m (Q122: £4,824m)
	–	CIB income of £3,976m (Q122: £3,938m) represented the best Q1 on a comparable basis1
		–	Global Markets income of £2,492m decreased 8% against a record prior year comparative. FICC income increased 9% to £1,788m, driven by a strong performance in credit. Equities income decreased 33% to £704m driven by a decline in derivatives income reflecting less volatile equity market conditions relative to prior year
		–	Investment Banking fees decreased 7% to £603m due to the reduced fee pool2, partially offset by a strong performance in advisory representing the best Q1 performance1
		–	Within Corporate, Transaction banking income increased 68% to £786m representing the best Q1 performance1, driven by improved margins, in the higher rate environment, in deposits. Corporate lending income decreased 24% to £95m mainly driven by costs of higher credit protection
	–	CC&P income increased 47% to £1,306m
		–	International Cards and Consumer Bank income increased 67% to £900m reflecting higher cards balances and improved margins, including the Gap portfolio acquisition in Q222
		–	Private Bank income increased 21% to £258m, reflecting client balance growth and improved margins
		–	Payments income increased 10% to £148m driven by merchant acquiring turnover growth
●	Total operating expenses decreased 2% to £2,953m and increased 18% to £2,956m excluding litigation and conduct, reflecting continued investment in the business
	–	CIB total operating expenses decreased 2% to £2,199m. Operating expenses excluding litigation and conduct charges increased 15% to £2,202m driven by continued investment in talent and technology, and the impact of appreciation of average USD and inflation
	–	CC&P total operating expenses decreased 3% to £754m. Operating expenses excluding litigation and conduct charges increased 29% to £754m, driven by higher investment spend to support growth, mainly in marketing and partnership costs, including the Gap portfolio acquisition, and the impact of appreciation of average USD and inflation
●	Credit impairment charges were £404m (Q122: £101m) reflecting higher balances and the continuing normalisation anticipated in US cards delinquencies
	–	CIB credit impairment charges of £33m (Q122: £33m net release) were driven by single name charges partially offset by the benefit of credit protection
	–	CC&P credit impairment charges increased to £371m (Q122: £134m), reflecting higher US cards balances, including the Gap portfolio, and the continuing normalisation anticipated in delinquencies. US cards 30 and 90 day arrears were 2.3% (Q122: 1.6%) and 1.2% (Q122: 0.8%) respectively. The US cards total coverage ratio was 8.9% (December 2022: 8.1%)
●	RWAs increased to £255.1bn (December 2022: £254.8bn) mainly supporting increased client and trading activity within Global Markets, partially offset by strengthening of GBP against USD since December 2022

 

Head Office

 

●	Loss before tax was £84m (Q122: £73m)
●	Total income was an expense of £6m (Q122: £23m income) with hedge accounting gains offset by treasury items. The prior year included a one-off gain of £86m from the sale and leaseback of UK data centres
●	Total operating expenses were £63m (Q122: £86m)
●	RWAs were £8.8bn (December 2022: £8.6bn)

 

1	On a comparable basis, period covering 2014-Q123. Pre 2014 data was not restated following re-segmentation in 2016.
2	Data source: Dealogic for the period covering 1 January to 31 March 2023.

 

Capital distributions

 

●	Barclays paid the 2022 full year dividend of 5.0p on 31 March 2023 and completed the £0.5bn share buyback programme announced at FY22 results on 14 April 2023
●	Barclays is committed to maintaining a balance between a strong capital position, delivering total cash returns to shareholders and investment in the business. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the Group. The Board will also continue to supplement the ordinary dividend as appropriate, including with share buybacks

 

Group capital and leverage

 

●	The CET1 ratio decreased by c.30bps to 13.6% (December 2022: 13.9%) as RWAs increased by £1.9bn to £338.4bn and CET1 capital decreased by £0.9bn to £46.0bn:
	–	c.50bps increase from attributable profit generated in the quarter
	–	c.40bps aggregate decrease from expected capital impacts in Q123, including the £0.5bn share buyback announced at FY22 results, the impact of regulatory change on 1 January 2023 relating to IFRS 9 transitional relief, and the impact of the KMC acquisition
	–	c.20bps decrease as a result of a £5.2bn increase in RWAs primarily driven by increased client and trading activity within Global Markets
	–	c.20bps decrease primarily due to increased regulatory capital deductions and an accrual for the FY23 dividend
	–	A £4.0bn decrease in RWAs as a result of foreign exchange movements was broadly offset by a £0.5bn decrease in the currency translation reserve
●	The UK leverage ratio decreased to 5.1% (December 2022: 5.3%) primarily due to a £38.9bn increase in leverage exposure and a £0.4bn decrease in Tier 1 capital. The UK leverage exposure increased to £1,168.9bn (December 2022: £1,130.0bn) largely due to an increase in securities financing transactions (SFT) client and trading activity within Global Markets

 

Group funding and liquidity

 

●	The liquidity and funding position remains robust and strengthened further in Q123. The liquidity pool increased to £333.0bn (December 2022: £318.0bn) driven by growth in deposits and increased wholesale funding. The composition of the liquidity pool is conservative, with 82% held in cash and deposits with central banks and the remainder primarily held in high quality government bonds, materially held at fair value or hedged
●	The strength of the funding and liquidity position is supported by a diverse and stable deposit franchise. Total deposits increased to £555.7bn (December 2022: £545.8bn)
●	The liquidity coverage ratio remained significantly above the 100% regulatory requirement at 163% (December 2022: 165%), equivalent to a surplus of £122.0bn (December 2022: £116.4bn)
●	Net Stable Funding Ratio (average of last four quarter ends) was 139% (December 2022: 137%), which represents a £166.7bn (December 2022: £155.6bn) surplus above 100% regulatory requirement
●	Wholesale funding outstanding, excluding repurchase agreements, was £192.2bn (December 2022: £184.0bn)
●	The Group issued £2.8bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) in Q123. The Group has a strong MREL position with a ratio of 32.7%, which is in excess of the regulatory requirement of 29% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer

 

Other matters

 

●

KMC acquisition: further to the announcement in Q222, on 1 March 2023 Barclays completed the acquisition of UK specialist mortgage lender KMC, including a portfolio of mortgages totalling £2.2bn with an RWA impact of £0.8bn. The transaction broadens Barclays' existing mortgage product range by adding a leading UK specialist residential mortgage lender with an established track record in the UK market, further enhancing its product capabilities consistent with Barclays’ strategic priority to deliver next-generation, digitised consumer financial services

 

Anna Cross, Group Finance Director

Results by Business

 

Barclays UK	Three months ended
	31.03.23	31.03.22
Income statement information	£m	£m	% Change
Net interest income	1,618	1,339	21
Net fee, commission and other income	343	310	11
Total income	1,961	1,649	19
Operating costs	(1,092)	(998)	(9)
Litigation and conduct	(2)	(9)	78
Total operating expenses	(1,094)	(1,007)	(9)
Other net income	—	—
Profit before impairment	867	642	35
Credit impairment charges	(113)	(48)
Profit before tax	754	594	27
Attributable profit	515	396	30
Performance measures
Return on average allocated tangible equity	20.0%	15.6%
Average allocated tangible equity (£bn)	10.3	10.1
Cost: income ratio	56%	61%
Loan loss rate (bps)	20	9
Net interest margin	3.18%	2.62%
	As at 31.03.23	As at 31.12.22	As at 31.03.22
Balance sheet information	£bn	£bn	£bn
Loans and advances to customers at amortised cost	208.2	205.1	207.3
Total assets	308.6	313.2	317.2
Customer deposits at amortised cost	254.3	258.0	260.3
Loan: deposit ratio	90%	87%	85%
Risk weighted assets	74.6	73.1	72.7
Period end allocated tangible equity	10.3	10.1	10.1

 

Analysis of Barclays UK	Three months ended
	31.03.23	31.03.22
Analysis of total income	£m	£m	% Change
Personal Banking	1,253	1,022	23
Barclaycard Consumer UK	247	276	(11)
Business Banking	461	351	31
Total income	1,961	1,649	19
Analysis of credit impairment charges
Personal Banking	(28)	21
Barclaycard Consumer UK	(83)	(44)	(89)
Business Banking	(2)	(25)	92
Total credit impairment charges	(113)	(48)
	As at 31.03.23	As at 31.12.22	As at 31.03.22
Analysis of loans and advances to customers at amortised cost	£bn	£bn	£bn
Personal Banking	173.6	169.7	166.5
Barclaycard Consumer UK	9.0	9.2	8.4
Business Banking	25.6	26.2	32.4
Total loans and advances to customers at amortised cost	208.2	205.1	207.3
Analysis of customer deposits at amortised cost
Personal Banking	194.3	195.6	196.6
Barclaycard Consumer UK	—	—	—
Business Banking	60.0	62.4	63.7
Total customer deposits at amortised cost	254.3	258.0	260.3

 

 

Barclays International	Three months ended
	31.03.23	31.03.22
Income statement information	£m	£m	% Change
Net interest income	1,354	936	45
Net trading income	2,419	2,446	(1)
Net fee, commission and other income	1,509	1,442	5
Total income	5,282	4,824	9
Operating costs	(2,956)	(2,505)	(18)
Litigation and conduct	3	(513)
Total operating expenses	(2,953)	(3,018)	2
Other net income	3	8	(63)
Profit before impairment	2,332	1,814	29
Credit impairment charges	(404)	(101)
Profit before tax	1,928	1,713	13
Attributable profit	1,348	1,300	4
Performance measures
Return on average allocated tangible equity	14.5%	14.8%
Average allocated tangible equity (£bn)	37.1	35.1
Cost: income ratio	56%	63%
Loan loss rate (bps)	94	28
Net interest margin	5.87%	4.15%
	As at 31.03.23	As at 31.12.22	As at 31.03.22
Balance sheet information	£bn	£bn	£bn
Loans and advances to customers at amortised cost	131.0	133.7	113.9
Loans and advances to banks at amortised cost	9.8	8.7	10.2
Debt securities at amortised cost	30.8	27.2	20.7
Loans and advances at amortised cost	171.6	169.6	144.8
Trading portfolio assets	137.7	133.8	134.1
Derivative financial instrument assets	256.6	301.7	288.8
Financial assets at fair value through the income statement	245.0	210.5	203.8
Cash collateral and settlement balances	125.5	107.7	132.0
Other assets	275.0	258.0	255.5
Total assets	1,211.4	1,181.3	1,159.0
Deposits at amortised cost	301.6	287.6	286.1
Derivative financial instrument liabilities	246.7	288.9	277.2
Loan: deposit ratio	57%	59%	51%
Risk weighted assets	255.1	254.8	245.1
Period end allocated tangible equity	36.8	36.8	35.6

 

Analysis of Barclays International
Corporate and Investment Bank	Three months ended
	31.03.23	31.03.22
Income statement information	£m	£m	% Change
Net interest income	465	385	21
Net trading income	2,437	2,450	(1)
Net fee, commission and other income	1,074	1,103	(3)
Total income	3,976	3,938	1
Operating costs	(2,202)	(1,921)	(15)
Litigation and conduct	3	(318)
Total operating expenses	(2,199)	(2,239)	2
Other net income	—	—
Profit before impairment	1,777	1,699	5
Credit impairment (charges)/releases	(33)	33
Profit before tax	1,744	1,732	1
Attributable profit	1,209	1,316	(8)
Performance measures
Return on average allocated tangible equity	15.2%	17.1%
Average allocated tangible equity (£bn)	31.8	30.8
Cost: income ratio	55%	57%
Loan loss rate (bps)	10	(12)
	As at 31.03.23	As at 31.12.22	As at 31.03.22
Balance sheet information	£bn	£bn	£bn
Loans and advances to customers at amortised cost	89.2	90.5	79.5
Loans and advances to banks at amortised cost	9.2	8.1	9.4
Debt securities at amortised cost	30.7	27.2	20.7
Loans and advances at amortised cost	129.1	125.8	109.6
Trading portfolio assets	137.6	133.7	134.0
Derivative financial instrument assets	256.5	301.6	288.7
Financial assets at fair value through the income statement	244.9	210.5	203.8
Cash collateral and settlement balances	124.7	106.9	131.2
Other assets	230.3	222.6	222.5
Total assets	1,123.1	1,101.1	1,089.8
Deposits at amortised cost	221.0	205.8	214.7
Derivative financial instrument liabilities	246.7	288.9	277.1
Risk weighted assets	216.8	215.9	213.5
	Three months ended
	31.03.23	31.03.22
Analysis of total income	£m	£m	% Change
FICC	1,788	1,644	9
Equities	704	1,052	(33)
Global Markets	2,492	2,696	(8)
Advisory	212	185	15
Equity capital markets	50	47	6
Debt capital markets	341	416	(18)
Investment Banking fees	603	648	(7)
Corporate lending	95	125	(24)
Transaction banking	786	469	68
Corporate	881	594	48
Total income	3,976	3,938	1

 

Analysis of Barclays International
Consumer, Cards and Payments	Three months ended
	31.03.23	31.03.22
Income statement information	£m	£m	% Change
Net interest income	889	551	61
Net fee, commission, trading and other income	417	335	24
Total income	1,306	886	47
Operating costs	(754)	(584)	(29)
Litigation and conduct	—	(195)
Total operating expenses	(754)	(779)	3
Other net income	3	8	(63)
Profit before impairment	555	115
Credit impairment charges	(371)	(134)
Profit/(loss) before tax	184	(19)
Attributable profit/(loss)	139	(16)
Performance measures
Return on average allocated tangible equity	10.5%	(1.5)%
Average allocated tangible equity (£bn)	5.3	4.3
Cost: income ratio	58%	88%
Loan loss rate (bps)	332	145
	As at 31.03.23	As at 31.12.22	As at 31.03.22
Balance sheet information	£bn	£bn	£bn
Loans and advances to customers at amortised cost	41.8	43.2	34.4
Total assets	88.3	80.2	69.2
Deposits at amortised cost	80.6	81.8	71.4
Risk weighted assets	38.2	38.9	31.6
	Three months ended
	31.03.23	31.03.22
Analysis of total income	£m	£m	% Change
International Cards and Consumer Bank	900	538	67
Private Bank	258	214	21
Payments	148	134	10
Total income	1,306	886	47

 

Head Office	Three months ended
	31.03.23	31.03.22
Income statement information	£m	£m	% Change
Net interest income	81	66	23
Net fee, commission and other income	(87)	(43)
Total income	(6)	23
Operating costs	(63)	(85)	26
Litigation and conduct	—	(1)
Total operating expenses	(63)	(86)	27
Other net expenses	(8)	(18)	56
Loss before impairment	(77)	(81)	5
Credit impairment (charges)/releases	(7)	8
Loss before tax	(84)	(73)	(15)
Attributable loss	(80)	(292)	73
Performance measures
Average allocated tangible equity (£bn)	0.2	3.6
	As at 31.03.23	As at 31.12.22	As at 31.03.22
Balance sheet information	£bn	£bn	£bn
Total assets	19.1	19.2	19.9
Risk weighted assets	8.8	8.6	11.0
Period end allocated tangible equity	0.2	(0.2)	3.6

 

Quarterly Results Summary

 

Barclays Group
	Q123		Q422	Q322	Q222	Q122		Q4211	Q3211	Q2211
Income statement information	£m		£m	£m	£m	£m		£m	£m	£m
Net interest income	3,053		2,741	3,068	2,422	2,341		2,230	1,940	2,052
Net fee, commission and other income	4,184		3,060	2,883	4,286	4,155		2,930	3,525	3,363
Total income	7,237		5,801	5,951	6,708	6,496		5,160	5,465	5,415
Operating costs	(4,111)		(3,748)	(3,939)	(3,682)	(3,588)		(3,514)	(3,446)	(3,587)
UK bank levy	—		(176)	—	—	—		(170)	—	—
Litigation and conduct	1		(79)	339	(1,334)	(523)		(92)	(129)	(143)
Total operating expenses	(4,110)		(4,003)	(3,600)	(5,016)	(4,111)		(3,776)	(3,575)	(3,730)
Other net (expenses)/income	(5)		10	(1)	7	(10)		13	94	21
Profit before impairment	3,122		1,808	2,350	1,699	2,375		1,397	1,984	1,706
Credit impairment (charges)/releases	(524)		(498)	(381)	(200)	(141)		31	(120)	797
Profit before tax	2,598		1,310	1,969	1,499	2,234		1,428	1,864	2,503
Tax (charge)/credit	(561)		33	(249)	(209)	(614)		(104)	(292)	(246)
Profit after tax	2,037		1,343	1,720	1,290	1,620		1,324	1,572	2,257
Non-controlling interests	(8)		(22)	(2)	(20)	(1)		(27)	(1)	(15)
Other equity instrument holders	(246)		(285)	(206)	(199)	(215)		(218)	(197)	(194)
Attributable profit	1,783		1,036	1,512	1,071	1,404		1,079	1,374	2,048
Performance measures
Return on average tangible shareholders' equity	15.0%		8.9%	12.5%	8.7%	11.5%		9.0%	11.4%	17.6%
Average tangible shareholders' equity (£bn)	47.6		46.7	48.6	49.0	48.8		48.0	48.3	46.5
Cost: income ratio	57%		69%	60%	75%	63%		73%	65%	69%
Loan loss rate (bps)	52		49	36	20	15		(3)	13	(90)
Basic earnings per share	11.3p		6.5p	9.4p	6.4p	8.4p		6.4p	8.0p	11.9p
Basic weighted average number of shares (m)	15,770		15,828	16,148	16,684	16,682		16,985	17,062	17,140
Period end number of shares (m)	15,701		15,871	15,888	16,531	16,762		16,752	16,851	16,998
Balance sheet and capital management2	£bn		£bn	£bn	£bn	£bn		£bn	£bn	£bn
Loans and advances to customers at amortised cost	343.6		343.3	346.3	337.2	325.8		319.9	313.5	309.2
Loans and advances to banks at amortised cost	11.0		10.0	12.5	12.5	11.4		9.7	10.6	11.0
Debt securities at amortised cost	48.9		45.5	54.8	46.1	34.5		31.8	28.9	28.3
Loans and advances at amortised cost	403.5		398.8	413.7	395.8	371.7		361.5	353.0	348.5
Loans and advances at amortised cost impairment coverage ratio	1.4%		1.4%	1.4%	1.4%	1.5%		1.6%	1.7%	1.8%
Total assets	1,539.1		1,513.7	1,726.9	1,589.2	1,496.1		1,384.3	1,406.5	1,376.3
Deposits at amortised cost	555.7		545.8	574.4	568.7	546.5		519.4	510.2	500.9
Tangible net asset value per share	301p		295p	286p	297p	294p		291p	286p	280p
Common equity tier 1 ratio	13.6%		13.9%	13.8%	13.6%	13.8%		15.1%	15.3%	15.0%
Common equity tier 1 capital	46.0		46.9	48.6	46.7	45.3		47.3	47.2	46.2
Risk weighted assets	338.4		336.5	350.8	344.5	328.8		314.1	307.7	307.4
UK leverage ratio	5.1%		5.3%	5.0%	5.1%	5.0%		5.2%	5.1%	5.0%
UK leverage exposure	1,168.9		1,130.0	1,232.1	1,151.2	1,123.5		1,137.9	1,162.7	1,154.9
Average UK leverage ratio	4.8%		4.8%	4.8%	4.7%	4.8%		4.9%	4.9%	4.8%
Average UK leverage exposure	1,251.3		1,281.0	1,259.6	1,233.5	1,179.4		1,229.0	1,201.1	1,192.7
Funding and liquidity
Group liquidity pool (£bn)	333.0		318.0	325.8	342.5	319.8		291.0	292.8	290.8
Liquidity coverage ratio	163%		165%	151%	156%	159%		168%	161%	162%
Net stable funding ratio3	139%		137%
Loan: deposit ratio	73%		73%	72%	70%	68%		70%	69%	70%

 

1	The comparative capital and financial metrics relating to Q221 - Q421 have been restated to reflect the impact of the Over-issuance of Securities.
2	Refer to pages 29 to 34 for further information on how capital, RWAs and leverage are calculated.
3	Represents average of the last four spot quarter end positions.

 

Quarterly Results by Business

 

Barclays UK
	Q123		Q422	Q322	Q222	Q122		Q421	Q321	Q221
Income statement information	£m		£m	£m	£m	£m		£m	£m	£m
Net interest income	1,618		1,600	1,561	1,393	1,339		1,313	1,303	1,305
Net fee, commission and other income	343		370	355	331	310		386	335	318
Total income	1,961		1,970	1,916	1,724	1,649		1,699	1,638	1,623
Operating costs	(1,092)		(1,108)	(1,069)	(1,085)	(998)		(1,202)	(1,041)	(1,078)
UK bank levy	—		(26)	—	—	—		(36)	—	—
Litigation and conduct	(2)		(13)	(3)	(16)	(9)		(5)	(10)	(19)
Total operating expenses	(1,094)		(1,147)	(1,072)	(1,101)	(1,007)		(1,243)	(1,051)	(1,097)
Other net income/(expenses)	—		1	(1)	—	—		(1)	1	—
Profit before impairment	867		824	843	623	642		455	588	526
Credit impairment (charges)/releases	(113)		(157)	(81)	—	(48)		59	(137)	520
Profit before tax	754		667	762	623	594		514	451	1,046
Attributable profit	515		474	549	458	396		420	317	721
Balance sheet information	£bn		£bn	£bn	£bn	£bn		£bn	£bn	£bn
Loans and advances to customers at amortised cost	208.2		205.1	205.1	205.9	207.3		208.8	208.6	207.8
Total assets	308.6		313.2	316.8	318.8	317.2		321.2	312.1	311.2
Customer deposits at amortised cost	254.3		258.0	261.0	261.5	260.3		260.6	256.8	255.5
Loan: deposit ratio	90%		87%	86%	85%	85%		85%	86%	87%
Risk weighted assets	74.6		73.1	73.2	72.2	72.7		72.3	73.2	72.2
Period end allocated tangible equity	10.3		10.1	10.1	9.9	10.1		10.0	10.0	9.9
Performance measures
Return on average allocated tangible equity	20.0%		18.7%	22.1%	18.4%	15.6%		16.8%	12.7%	29.1%
Average allocated tangible equity (£bn)	10.3		10.2	9.9	10.0	10.1		10.0	10.0	9.9
Cost: income ratio	56%		58%	56%	64%	61%		73%	64%	68%
Loan loss rate (bps)	20		27	14	—	9		(10)	24	(93)
Net interest margin	3.18%		3.10%	3.01%	2.71%	2.62%		2.49%	2.49%	2.55%

 

Analysis of Barclays UK	Q123		Q422	Q322	Q222	Q122		Q421	Q321	Q221
Analysis of total income	£m		£m	£m	£m	£m		£m	£m	£m
Personal Banking	1,253		1,229	1,212	1,077	1,022		983	990	987
Barclaycard Consumer UK	247		269	283	265	276		352	293	290
Business Banking	461		472	421	382	351		364	355	346
Total income	1,961		1,970	1,916	1,724	1,649		1,699	1,638	1,623
Analysis of credit impairment (charges)/releases
Personal Banking	(28)		(120)	(26)	(42)	21		8	(30)	72
Barclaycard Consumer UK	(83)		(12)	2	84	(44)		114	(108)	434
Business Banking	(2)		(25)	(57)	(42)	(25)		(63)	1	14
Total credit impairment (charges)/releases	(113)		(157)	(81)	—	(48)		59	(137)	520
Analysis of loans and advances to customers at amortised cost	£bn		£bn	£bn	£bn	£bn		£bn	£bn	£bn
Personal Banking	173.6		169.7	168.7	167.1	166.5		165.4	164.6	162.4
Barclaycard Consumer UK	9.0		9.2	9.0	8.8	8.4		8.7	8.6	8.8
Business Banking	25.6		26.2	27.4	30.0	32.4		34.7	35.4	36.6
Total loans and advances to customers at amortised cost	208.2		205.1	205.1	205.9	207.3		208.8	208.6	207.8
Analysis of customer deposits at amortised cost
Personal Banking	194.3		195.6	197.3	197.0	196.6		196.4	193.3	191.0
Barclaycard Consumer UK	—		—	—	—	—		—	—	0.1
Business Banking	60.0		62.4	63.7	64.5	63.7		64.2	63.5	64.4
Total customer deposits at amortised cost	254.3		258.0	261.0	261.5	260.3		260.6	256.8	255.5