UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER


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


UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

February 22, 2018

 

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

 

 

  Final Results dated 22 February 2018.





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: February 22, 2018

 

 

By: /s/ Garth Wright

----------------------

Garth Wright

Assistant Secretary

 

 

 

 

 

BARCLAYS BANK PLC

(Registrant)





Date: February 22, 2018

 

 

By: /s/ Garth Wright

----------------------

Garth Wright

Assistant Secretary

 

 

Barclays PLC

Results Announcement

 

31 December 2017

Table of Contents

Results Announcement	Page
Notes	1
Performance Highlights	2-3
Group Chief Executive Officer's Review	4
Group Finance Director's Review	5-7
Results by Business
●  Barclays UK	8-10
●  Barclays International	11-13
●  Head Office	14
Barclays Non-Core Results	15
Discontinued Operation Results	16
Quarterly Results Summary	17
Quarterly Results by Business	18-21
Performance Management
●  Margins and Balances	22
●  Remuneration	23-24
Risk Management
●  Overview	25
●  Credit Risk	26-28
●  Treasury and Capital Risk	29-40
Statement of Directors' Responsibilities	41
Condensed Consolidated Financial Statements	42-46
Financial Statement Notes	47-54
Appendix: Non-IFRS Performance Measures	55-57
Shareholder Information	58

 

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

 

Notes

 

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the year ended 31 December 2017 to the corresponding twelve months of 2016 and balance sheet analysis as at 31 December 2017 with comparatives relating to 31 December 2016. 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 that can be accessed at home.barclays/results.

 

The information in this announcement, which was approved by the Board of Directors on 21 February 2018, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2017, which includes 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 contain an unqualified audit report under Section 495 of the Companies Act 2006 (which does not make any statements under Section 498 of the Companies Act 2006) will be delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

 

These results will be furnished as a Form 20-F to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 20-F will also be available from the Barclays Investor Relations website at home.barclays/results and from the SEC's website at www.sec.gov.

 

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

 

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 business' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management. However, any non-IFRS 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 55-57 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. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, income growth, assets, impairment charges, provisions, business strategy, structural reform, capital, leverage and other regulatory ratios, payment of dividends (including dividend payout ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets and the impact of any regulatory deconsolidation resulting from the sell down of the Group's interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for future operations, projected employee numbers, IFRS 9 impacts and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards including the implementation of IFRS 9, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules (including with regard to the future structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entities within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; the implications of the exercise by the United Kingdom of Article 50 of the Treaty of Lisbon and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals, expectations and guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our annual report on form 20-F for the fiscal year ended 31 December 2017), which will be available on the SEC's website at www.sec.gov.

 

Subject to our obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Performance Highlights

 

Transatlantic Consumer and Wholesale Bank with Global Reach

 

Significant strategic progress was made in 2017, as profit before tax improved and the CET1 ratio strengthened further, enabling a reset of the dividend in 2018 and enhanced focus

Composition of the Group liquidity poolon driving improved returns

 

●  Returns:	●  Group profit before tax increased 10% to £3.5bn. The attributable loss of £1.9bn (2016: profit of £1.6bn) and Return on Tangible Equity (RoTE) of negative 3.6% (2016: positive 3.6%) included: -     litigation and conduct of £1.2bn, including charges for Payment Protection Insurance (PPI) of £0.7bn, -     losses related to the sell down of Barclays Africa Group Limited (BAGL) of £2.5bn, and -     a one-off net tax charge of £0.9bn due to the re-measurement of US deferred tax assets (DTAs) in Q417 ●   Group RoTE, excluding the material items listed above, was 5.6% ●   Group RoTE target, excluding litigation and conduct, of greater than 9% in 2019 and greater than 10% in 2020, based on a Group Common Equity Tier 1 (CET1) ratio of c.13%
●  Cost efficiency:	●  Group operating expenses were £15.5bn (2016: £16.3bn), including litigation and conduct charges of £1.2bn (2016: £1.4bn), resulting in a cost: income ratio of 73% (2016: 76%) ●  Excluding litigation and conduct charges, Group operating expenses were £14.2bn, in line with 2017 guidance ●  Guidance for Group operating expenses of £13.6-13.9bn in 2019, excluding litigation and conduct
●  Capital and dividends:	●  CET1 ratio increased to 13.3% (December 2016: 12.4%), within the end-state target range of c.13% ●  Improvement driven by organic capital generation from continuing operations, and the benefit of the proportional consolidation of BAGL and the rundown of Non-Core, partially offset by adverse movements in reserves and the net impact of the re-measurement of US DTAs ●  Declared dividend of 3.0p per share for 2017 and the intention to pay 6.5p in 2018

 

●	Group profit before tax increased 10% to £3,541m driven by positive operating jaws as operating expenses reduced 5%, primarily reflecting lower Non-Core related costs. Income decreased 2%, primarily driven by lower revenue in Barclays International and Head Office, whilst impairment was broadly stable
	-	Barclays UK profit before tax increased to £1,747m (2016: £1,738m) reflecting 2% lower income, a 13% reduction in impairment and a cost: income ratio of 66% (2016: 65%), including charges for PPI of £700m (2016: £1,000m)
	-	Barclays International profit before tax declined to £3,275m (2016: £4,211m) driven by a 4% decrease in income, largely as a result of weak market conditions impacting the Corporate and Investment Bank (CIB) in H217, while operating expenses increased 4% and credit impairment charges increased 11%
●	Group attributable loss of £1,922m (2016: profit of £1,623m) included losses of £2,525m related to the sell down of BAGL and the one-off net tax charge of £901m due to the re-measurement of US DTAs
●	Group basic loss per share was 10.3p (2016: earnings per share of 10.4p). Excluding litigation and conduct, losses related to the sell down of BAGL and the net charge due to the re-measurement of US DTAs, earnings per share was 16.2p
●	Tangible net asset value per share decreased to 276p (December 2016: 290p) as profit before tax was more than offset by the net impact of the re-measurement of US DTAs in Q417 and adverse movements across reserves

 

Barclays Group results
for the year ended	31.12.17	31.12.16
	£m	£m	% Change
Total income	21,076	21,451	(2)
Credit impairment charges and other provisions	(2,336)	(2,373)	2
Net operating income	18,740	19,078	(2)
Operating expenses excluding UK bank levy and litigation and conduct	(13,884)	(14,565)	5
UK bank levy	(365)	(410)	11
Litigation and conduct	(1,207)	(1,363)	11
Operating expenses	(15,456)	(16,338)	5
Other net income	257	490	(48)
Profit before tax	3,541	3,230	10
Tax charge	(2,240)	(993)
Profit after tax in respect of continuing operations	1,301	2,237	(42)
(Loss)/profit after tax in respect of discontinued operation	(2,195)	591
Non-controlling interests in respect of continuing operations	(249)	(346)	28
Non-controlling interests in respect of discontinued operation	(140)	(402)	65
Other equity instrument holders1	(639)	(457)	(40)
Attributable (loss)/profit	(1,922)	1,623
Performance measures
Return on average tangible shareholders' equity1	(3.6%)	3.6%
Average tangible shareholders' equity (£bn)	48.9	48.7
Cost: income ratio	73%	76%
Loan loss rate (bps)	57	53
Basic (loss)/earnings per share1	(10.3p)	10.4p
Basic earnings per share in respect of continuing operations1	3.5p	9.3p
Dividend per share	3.0p	3.0p
Balance sheet and capital management
Tangible net asset value per share	276p	290p
Common equity tier 1 ratio	13.3%	12.4%
Common equity tier 1 capital (£bn)	41.6	45.2
Risk weighted assets (£bn)	313	366
Average UK leverage ratio2	4.9%	4.5%
Average fully loaded tier 1 capital2 (£bn)	51.2	51.6
Average UK leverage exposure2 (£bn)	1,045	1,137
Funding and liquidity
Group liquidity pool (£bn)	220	165
CRD IV liquidity coverage ratio	154%	131%
Loan: deposit ratio3	80%	89%

 

1	The profit after tax attributable to other equity instrument holders of £639m (2016: £457m) is offset by a tax credit recorded in reserves of £174m (2016: £128m). The net amount of £465m (2016: £329m), along with non-controlling interests, is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity.
2	The average UK leverage ratio uses capital and exposure measures based on the last day of each month in the quarter; additionally the average exposure measure excludes qualifying central bank claims.
3	Loan: deposit ratio excludes Head Office and investment banking balances other than interest earning lending. Comparative has been restated to include interest earning lending balances within the investment banking business.

 

Group Chief Executive Officer's Review

 

"2017 was a year of considerable strategic progress for Barclays. The sell down of our shareholding in Barclays Africa, closure of our Non-Core unit, the establishment of our Service Company, and the creation of our UK ring-fenced bank, mean that, in terms of size and structure, we are now the diversified Transatlantic Consumer and Wholesale bank we set out in our strategy in March 2016. 

 

We have a portfolio of profitable businesses, producing significant earnings, and have plans and investments in place to grow those earnings over time.

 

We have already started to see some of the benefits of our work in 2017. Group profit before tax increased 10% year-on-year as a result of our team's focus on execution. Barclays UK navigated the year well, reaching a digital banking milestone with our ten millionth customer. Within Barclays International, we increased Banking fee share in our Corporate and Investment Bank in 2017, and our Consumer, Cards and Payments business continued to produce very strong income while managing risk effectively.

 

Although we are only seven weeks into the first quarter, and it is too early to offer formal guidance, we are pleased with the start to the year, and in particular in the markets businesses in CIB, where income is tracking above the level for the corresponding period in 2017 in dollars, and also in sterling, despite the weaker dollar we are currently experiencing.

 

Critically, as we have carried out the work to reshape the business, we have continued to generate capital organically. Our CET1 ratio today stands at 13.3%, comfortably within our end-state target range.

 

While we still have a number of legacy conduct issues to address, I am confident in the capacity of this business to generate excess capital going forward, and it remains our intention over time to return a greater proportion of that excess capital to shareholders through dividends, and other means of capital distribution, including share buybacks.

 

As a first demonstration of that intent, we are pleased to be able to announce today the restoration of the dividend to six and a half pence for 2018."

 

James E Staley, Group Chief Executive Officer

 

Group Finance Director's Review

 

Financial performance in 2017 was encouraging, with increased profit before tax, a reduced cost: income ratio and strong capital ratio progression. Significant progress was also made on strategic objectives in the year, with the closure of Barclays Non-Core and the sale of a stake in, and consequent accounting deconsolidation of, BAGL. New Group returns targets were set: to achieve RoTE of greater than 9% in 2019 and greater than 10% in 2020, excluding litigation and conduct, based on a CET1 ratio of c.13%. The 2017 financial results provide a firm platform on which to build towards these.

 

Following the closure of Barclays Non-Core on 1 July 2017, Group results for 2017 included a Barclays Non-Core loss before tax for the six months ended 30 June 2017 of £647m, compared to a loss before tax of £2,786m for the full year in 2016. From 1 July 2017, residual Barclays Non-Core assets and liabilities were reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office.

 

Group performance

 

●	Profit before tax increased 10% to £3,541m driven by a 5% reduction in operating expenses, partially offset by a 2% reduction in income and lower other net income. Results were impacted by the appreciation of average USD and EUR against GBP of 5% and 7% respectively, compared to 2016, which positively impacted income and adversely affected impairment and operating expenses
●	Total income decreased to £21,076m (2016: £21,451m) reflecting a £613m decrease in Barclays International and a £262m reduction in Head Office, partially offset by a reduction in losses related to Non-Core
●	Credit impairment charges were broadly stable at £2,336m (2016: £2,373m) and reflected a charge of £168m in 2017 relating to deferred consideration from an asset sale in US Cards and the non-recurrence of a £320m charge in 2016 following the management review of the UK and US cards portfolio impairment modelling. Impairment increased in Barclays International driven by an increase in underlying delinquency trends and business growth in US Cards. The Group loan loss rate increased 4bps to 57bps
●	Operating expenses reduced 5% to £15,456m driven primarily by lower Non-Core related operating expenses. The cost: income ratio reduced to 73% (2016: 76%)
●	Other net income of £257m (2016: £490m) primarily reflected a gain of £109m on the sale of Barclays' share in VocaLink to MasterCard and a gain of £76m on the sale of a joint venture in Japan
●	Profit after tax in respect of continuing operations was £1,301m (2016: £2,237m). The tax charge of £2,240m included a one-off tax charge of £1,177m due to the re-measurement of US DTAs as a result of the US Tax Cuts and Jobs Act, partially offset by an unrelated £276m increase in US DTAs due to a re-measurement of Barclays Bank PLC's (BBPLC) US branch DTAs
●	Loss after tax in respect of the Africa Banking discontinued operation of £2,195m included a £1,090m impairment of Barclays' holding in BAGL and a £1,435m loss on the sale of 33.7% of BAGL's issued share capital, primarily due to recycling of currency translation reserve losses to the income statement on accounting deconsolidation
●	RoTE was negative 3.6% (2016: positive 3.6%) and basic loss per share was 10.3p (2016: earnings per share of 10.4p). Excluding litigation and conduct, losses related to the sell down of BAGL and the one-off net charge due to the re-measurement of US DTAs, RoTE was 5.6% and earnings per share was 16.2p
●	Refer to pages 8-14 for further detail on Results by Business

 

Group capital and leverage

 

●	The fully loaded CET1 ratio increased to 13.3% (December 2016: 12.4%) principally due to a reduction in risk weighted assets (RWAs) of £52.6bn to £313.0bn. CET1 capital decreased £3.6bn to £41.6bn
	-	The sell down of Barclays' holding in BAGL to 14.9%, resulting in regulatory proportional consolidation, increased the CET1 ratio by c.60bps with a £31.1bn reduction in RWAs, offset by a £1.8bn reduction due to BAGL minority interests no longer being included in CET1 capital
	-	Losses in respect of the discontinued operation due to the impairment of Barclays' holding in BAGL allocated to goodwill, and the recycling of the BAGL currency translation reserve losses to the income statement, had no impact on CET1
	-	The CET1 ratio increased by a further c.50bps as a result of other RWA reductions, excluding the impact of foreign currency movements, including reductions in Non-Core
	-	Excluding the impacts of BAGL and foreign currency movements, CET1 capital decreased further, as profits relating to continuing operations, after absorbing the net impact of the re-measurement of US DTAs, were offset by the redemption of USD preference shares and the payment of pension deficit reduction contributions in the year
●	The average UK leverage ratio increased to 4.9% (December 2016: 4.5%) primarily driven by the issuance of additional tier 1 (AT1) securities, the reduction in Non-Core related exposures and due to regulatory proportional consolidation of BAGL
●	Tangible net asset value per share decreased to 276p (December 2016: 290p) as profit before tax was more than offset by the net impact of the re-measurement of US DTAs in Q417 and adverse movements across reserves

 

Group funding and liquidity

 

●

The Group continued to maintain surpluses to its internal and regulatory requirements. The liquidity pool increased to £220bn (December 2016: £165bn) reflecting the approach of holding a conservative liquidity position and through net deposit growth, the unwind of legacy Non-Core portfolios, money market borrowing and drawdown from the Bank of England Term Funding Scheme. The liquidity coverage ratio (LCR) increased to 154% (December 2016: 131%), equivalent to a surplus of £75bn (December 2016: £39bn) to 100%

●

Wholesale funding outstanding excluding repurchase agreements was £157bn (December 2016: £158bn). The Group issued £11.5bn equivalent of capital and term senior unsecured debt from Barclays PLC (the Parent company) of which £6.1bn was in public senior unsecured debt and £5.4bn in capital instruments. In the same period, £6.1bn of BBPLC capital and senior public term instruments either matured or were redeemed, including the $1.375bn 7.1% Series 3 USD preference shares

 

Other matters

 

●	On 1 June 2017, Barclays sold 286 million ordinary shares of BAGL, representing 33.7% of BAGL's issued share capital. The sale resulted in the accounting deconsolidation of BAGL from the Barclays Group. Following the sale, BAGL was no longer reported as a discontinued operation, with the retained investment accounted for as an Available for Sale (AFS) asset in Barclays' financial statements. The contribution of a further 1.5% of BAGL's ordinary shares to a Black Economic Empowerment scheme in Q317 resulted in Barclays accounting for 126 million ordinary shares in BAGL, representing 14.9% of BAGL's issued share capital. For regulatory reporting purposes, BAGL is treated on a proportional consolidated basis
●	Barclays' measurement of its US DTAs reduced £0.9bn in Q417, as a £1.2bn decrease as result of the US Tax Cuts and Jobs Act, enacted on 22 December 2017, was partially offset by an unrelated £0.3bn increase due to a re-measurement of BBPLC's US branch DTAs, as a result of BBPLC making a tax election in the period to exclude the future profits and losses of its overseas branches from UK taxation. The net reduction in the measurement of US DTAs resulted in a one-off net charge of £0.9bn to Group profit after tax, a c.20bps reduction to the Group CET1 ratio and a decrease in tangible net asset value of 5p per share
●	Additional charges of £700m (2016: £1,000m) relating to PPI were recognised in Q217. The remaining PPI provision as at 31 December 2017 was £1.6bn (December 2016: £2.0bn). Management views its current PPI provision as appropriate, however, will continue to closely monitor complaint trends and the associated provision adequacy
●	A provision of £240m in respect of Foreign Exchange matters was recognised in Q417
●	In June 2017, the Serious Fraud Office (SFO) brought certain charges against Barclays PLC in relation to matters that arose in the context of Barclays' capital raisings in 2008. Further to that development, in February 2018, the SFO has also charged BBPLC in respect of this matter
●	Certain legal proceedings and investigations relating to legacy issues remain outstanding. Resolving outstanding legacy issues in an appropriate timeframe and manner will continue to be a priority

 

IFRS 9 Financial Instruments1

 

●	IFRS 9 Financial Instruments is effective for periods beginning on or after 1 January 2018. Barclays' estimated IFRS 9 impact is a decrease in shareholders' equity of approximately £2.2bn post-tax. The estimated reduction in shareholders' equity equates to a decrease in tangible net asset value of approximately 13p per share
●	The Group's CET1 ratio will be impacted by IFRS 9 primarily from an increase in credit impairment provisions net of tax, offset by a reduction in the regulatory deduction where expected loss is greater than impairment
●	As at 1 January 2018, the expected fully loaded CET1 ratio impact without transitional arrangements would be an estimated reduction of approximately 34bps. The Group intends to use transitional arrangements, under which the impact is negligible as at 1 January 2018 and is expected to remain immaterial during 2018

 

1	Note:
	-	The estimated decrease in shareholders' equity includes the impact of both balance sheet classification and measurement changes, and the increase to credit impairment provisions compared to those at 31 December 2017 under IAS 39.
	-	This impact assessment has been estimated under an interim control environment with models that continue to undergo validation. The implementation of the comprehensive end state control environment will continue as Barclays introduces business-as-usual controls throughout 2018.

 

Structural reform

 

●	Barclays' plans for UK ring-fencing remain on track. The relevant court processes began in November 2017 with the Sanction Hearing to be held on 26 and 27 February 2018 at which the Court will be requested to sanction Barclays' ring-fencing transfer scheme. We intend to complete the reorganisation and establish the UK ring-fenced bank in April 2018, ahead of the 1 January 2019 legislative deadline for implementation
●	Barclays Services Limited (the "Group Service Company") was established in September 2017 as a direct subsidiary of Barclays PLC to deliver operational continuity and to drive operational efficiencies across the Group
●	Illustrative, unaudited pro-forma financials for Barclays Bank UK PLC (BBUKPLC) and BBPLC will be available at home.barclays/annualreport

 

Dividends

 

●	A final dividend for 2017 of 2.0p per share will be paid on 5 April 2018, resulting in a total 3.0p dividend per share for the year
●	Barclays understands the importance of the ordinary dividend for our shareholders. Barclays is therefore committed to maintaining an appropriate balance between total cash returns to shareholders, investment in the business and maintaining a strong capital position. Going forward, Barclays intends to pay an annual ordinary dividend that takes into account these objectives and the medium-term earnings outlook of the Group. It is also the Board's intention to supplement the ordinary dividends with additional returns to shareholders as and when appropriate
●	For 2018, Barclays anticipates resuming a total cash dividend of 6.5p per share, subject to regulatory approvals

 

Outlook and financial targets

 

●	The Group is targeting RoTE, excluding litigation and conduct, of greater than 9% in 2019 and greater than 10% in 2020, based on a Group CET1 ratio of c.13%
●	Guidance for Group operating expenses, excluding litigation and conduct, is £13.6-13.9bn in 2019
●	As part of the US Tax Cuts and Jobs Act, the US federal corporate income tax rate has been reduced from 35% to 21% with effect from 1 January 2018. Given the Group's substantial US operations, this is expected to result in a reduction of the Group's effective tax rate in 2018 and future periods to mid-20 percent. Some of the provisions introduced into US tax law by the Act are complex and present uncertainties, in particular the new US Base Erosion and Anti-Abuse Tax (BEAT). Our current expectation is that in the event that BEAT liabilities are incurred by the Group these should not be sufficiently material to cause the Group's effective tax rate to exceed mid-20 percent

 

Tushar Morzaria, Group Finance Director 

 

Results by Business

 

Barclays UK	Year ended	Year ended
	31.12.17	31.12.16
Income statement information	£m	£m	% Change
Net interest income	6,086	6,048	1
Net fee, commission and other income	1,297	1,469	(12)
Total income	7,383	7,517	(2)
Credit impairment charges and other provisions	(783)	(896)	13
Net operating income	6,600	6,621	-
Operating expenses excluding UK bank levy and litigation and conduct	(4,030)	(3,792)	(6)
UK bank levy	(59)	(48)	(23)
Litigation and conduct	(759)	(1,042)	27
Operating expenses	(4,848)	(4,882)	1
Other net expenses	(5)	(1)
Profit before tax	1,747	1,738	1
Attributable profit	853	828	3
Balance sheet information	£bn	£bn
Loans and advances to customers at amortised cost	183.8	166.4
Total assets	237.4	209.6
Customer deposits	193.4	189.0
Loan: deposit ratio	95%	88%
Risk weighted assets	70.9	67.5
Period end allocated tangible equity	9.6	8.5
Key facts
Average LTV of mortgage portfolio1	48%	48%
Average LTV of new mortgage lending1	64%	63%
Number of branches	1,208	1,305
Mobile banking active customers	6.4m	5.4m
30 day arrears rate - Barclaycard Consumer UK	1.8%	1.9%
Performance measures
Return on average allocated tangible equity	9.8%	9.6%
Average allocated tangible equity (£bn)	9.1	8.9
Cost: income ratio	66%	65%
Loan loss rate (bps)	42	52
Net interest margin	3.49%	3.62%

 

1	Average loan to value (LTV) of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.

 

Analysis of Barclays UK	Year ended	Year ended
	31.12.17	31.12.16
Analysis of total income	£m	£m	% Change
Personal Banking	3,823	3,891	(2)
Barclaycard Consumer UK	1,977	2,022	(2)
Wealth, Entrepreneurs & Business Banking	1,583	1,604	(1)
Total income	7,383	7,517	(2)
Analysis of credit impairment charges and other provisions
Personal Banking	(222)	(183)	(21)
Barclaycard Consumer UK	(541)	(683)	21
Wealth, Entrepreneurs & Business Banking	(20)	(30)	33
Total credit impairment charges and other provisions	(783)	(896)	13
Analysis of loans and advances to customers at amortised cost	£bn	£bn
Personal Banking	139.8	135.0
Barclaycard Consumer UK	16.4	16.5
Wealth, Entrepreneurs & Business Banking1	27.6	14.9
Total loans and advances to customers at amortised cost	183.8	166.4
Analysis of customer deposits
Personal Banking	141.1	139.3
Barclaycard Consumer UK	-	-
Wealth, Entrepreneurs & Business Banking	52.3	49.7
Total customer deposits	193.4	189.0

 

1	Includes the integration of the ESHLA portfolio at amortised cost from Barclays Non-Core.

 

2017 compared to 2016

 

Income statement

 

●	Profit before tax increased 1% to £1,747m as lower PPI charges of £700m (2016: £1,000m) and a reduction in credit impairment charges were partially offset by the non-recurrence of the gain on disposal of Barclays' share of Visa Europe Limited in 2016, higher costs of setting up the ring-fenced bank and increased investment, primarily in cyber resilience, digital and technology
●	Total income decreased 2% to £7,383m, of which £151m reflected the non-recurrence of the gain on disposal of Barclays' share of Visa Europe Limited in 2016
	-	Personal Banking income decreased 2% to £3,823m driven by the non-recurrence of the Visa gain and the impact of the UK base rate reduction in 2016, partially offset by deposit pricing initiatives, growth in balances and an update to effective interest rate (EIR) modelling
	-	Barclaycard Consumer UK income decreased 2% to £1,977m reflecting a provision for remediation in H217
	-	Wealth, Entrepreneurs & Business Banking (WEBB) income decreased 1% to £1,583m driven by the non-recurrence of the Visa gain, partially offset by growth in balances
	-	Net interest income increased 1% to £6,086m due to deposit pricing initiatives and growth in loans and advances to customers and deposits, partially offset by the impact of the UK base rate reduction in 2016
		-	Net interest margin decreased 13bps to 3.49% reflecting the integration of the Education, Social Housing and Local Authority (ESHLA) portfolio from Non-Core on 1 July 2017
	-	Net fee, commission and other income decreased 12% to £1,297m driven by the non-recurrence of the Visa gain
●	Credit impairment charges decreased 13% to £783m principally reflecting the non-recurrence of a £200m charge in 2016 following the management review of the cards portfolio impairment modelling, partially offset by higher charges in Barclaycard Consumer UK and Personal Banking
●	Operating expenses decreased 1% to £4,848m due to lower charges for PPI of £700m (2016: £1,000m), partially offset by the costs of setting up the ring-fenced bank and increased investment, primarily in cyber resilience, digital and technology. The cost: income ratio was 66% (2016: 65%)

 

Balance sheet

 

●	Loans and advances to customers increased 10% to £183.8bn and total assets increased 13% to £237.4bn, reflecting the integration of the ESHLA portfolio from Non-Core into WEBB on 1 July 2017 and mortgage growth in Personal Banking in H217
●	Customer deposits increased 2% to £193.4bn due to deposit growth, partially offset by the realignment of certain clients between Barclays UK and Barclays International in preparation for structural reform
●	RWAs increased to £70.9bn (December 2016: £67.5bn) reflecting the integration of the ESHLA portfolio

 

Barclays International	Year ended	Year ended
	31.12.17	31.12.16
Income statement information	£m	£m	% Change
Net interest income	4,307	4,512	(5)
Net trading income	3,971	4,580	(13)
Net fee, commission and other income	6,104	5,903	3
Total income	14,382	14,995	(4)
Credit impairment charges and other provisions	(1,506)	(1,355)	(11)
Net operating income	12,876	13,640	(6)
Operating expenses excluding UK bank levy and litigation and conduct	(9,321)	(9,129)	(2)
UK bank levy	(265)	(284)	7
Litigation and conduct	(269)	(48)
Operating expenses	(9,855)	(9,461)	(4)
Other net income	254	32
Profit before tax	3,275	4,211	(22)
Attributable profit	847	2,412	(65)
Balance sheet information	£bn	£bn
Loans and advances to banks and customers at amortised cost1	198.7	211.3
Trading portfolio assets	113.0	73.2
Derivative financial instrument assets	236.2	156.2
Derivative financial instrument liabilities	237.8	160.6
Reverse repurchase agreements and other similar secured lending	12.4	13.4
Financial assets designated at fair value	104.1	62.3
Total assets	856.1	648.5
Customer deposits2	225.1	216.2
Loan: deposit ratio3	62%	78%
Risk weighted assets	210.3	212.7
Period end allocated tangible equity	27.5	25.6
Performance measures
Return on average allocated tangible equity	3.4%	9.8%
Average allocated tangible equity (£bn)	28.1	25.5
Cost: income ratio	69%	63%
Loan loss rate (bps)	75	63
Net interest margin	4.16%	3.98%

 

1	As at 31 December 2017 loans and advances included £170.4bn (December 2016: £185.9bn) of loans and advances to customers (including settlement balances of £15.7bn (December 2016: £19.5bn) and cash collateral of £35.9bn (December 2016: £30.1bn)), and £28.3bn (December 2016: £25.4bn) of loans and advances to banks (including settlement balances of £2.3bn (December 2016: £1.7bn) and cash collateral of £18.0bn (December 2016: £6.3bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £38.6bn (December 2016: £39.7bn).
2	As at 31 December 2017 customer deposits included settlement balances of £15.2bn (December 2016: £16.6bn) and cash collateral of £27.3bn (December 2016: £20.8bn).
3	Loan: deposit ratio excludes investment banking balances other than interest earning lending. Comparative has been restated to include interest earning lending balances within the investment banking business.

 

Analysis of Barclays International
Corporate and Investment Bank	Year ended	Year ended
	31.12.17	31.12.16
Income statement information	£m	£m	% Change
Macro	1,634	2,304	(29)
Credit	1,241	1,185	5
Equities	1,629	1,790	(9)
Markets	4,504	5,279	(15)
Banking fees	2,612	2,397	9
Corporate lending	1,093	1,195	(9)
Transaction banking	1,629	1,657	(2)
Banking	5,334	5,249	2
Other	40	5
Total income	9,878	10,533	(6)
Credit impairment charges and other provisions	(213)	(260)	18
Operating expenses	(7,742)	(7,624)	(2)
Other net income	133	1
Profit before tax	2,056	2,650	(22)
Balance sheet information	£bn	£bn
Loans and advances to banks and customers at amortised cost	160.1	171.6
Customer deposits	165.9	166.2
Risk weighted assets	176.2	178.6
Performance measures
Return on average allocated tangible equity	1.1%	6.1%
Average allocated tangible equity (£bn)	24.0	21.9

 

Consumer, Cards and Payments
Income statement information	£m	£m	% Change
Total income	4,504	4,462	1
Credit impairment charges and other provisions	(1,293)	(1,095)	(18)
Operating expenses	(2,113)	(1,837)	(15)
Other net income	121	31
Profit before tax	1,219	1,561	(22)
Balance sheet information	£bn	£bn
Loans and advances to banks and customers at amortised cost	38.6	39.7
Customer deposits	59.2	50.0
Risk weighted assets	34.1	34.1
Key facts
30 day arrears rate - Barclaycard US	2.6%	2.6%
Total number of Barclaycard business clients	366,000	355,000
Value of payments processed (£bn)	322	296
Performance measures
Return on average allocated tangible equity	16.7%	31.4%
Average allocated tangible equity (£bn)	4.2	3.6

 

2017 compared to 2016

 

Income statement

 

●	Profit before tax decreased 22% to £3,275m driven by a 4% decrease in total income, an 11% increase in credit impairment charges and a 4% increase in operating expenses
●	Total income decreased 4% to £14,382m, including the 5% appreciation of average USD and the 7% appreciation of average EUR against GBP, as CIB income decreased 6% to £9,878m, partially offset by a 1% increase in Consumer, Cards and Payments income to £4,504m
	-	Markets income decreased 15% to £4,504m
		-	Macro income decreased 29% to £1,634m driven by lower market volatility in rates, the exit of the energy-related commodities business and the integration of Non-Core assets on 1 July 2017
		-	Credit income increased 5% to £1,241m due to improved performance in municipals
		-	Equities income decreased 9% to £1,629m driven by US equity derivatives as a result of lower market volatility, partially offset by improved performance in equity financing
	-	Banking income increased 2% to £5,334m
		-	Banking fee income increased 9% to £2,612m due to higher debt and equity underwriting fees, with fee share gains in banking overall and debt underwriting
		-	Corporate lending declined 9% to £1,093m driven by lower lending balances due to the realignment of certain clients between Barclays UK and Barclays International in preparation for structural reform and the reallocation of RWAs within CIB, as well as the non-recurrence of prior year treasury gains and lower work-out gains
		-	Transaction banking declined 2% to £1,629m driven by lower trade balances and the non-recurrence of prior year treasury gains, partially offset by higher average deposit balances
	-	Consumer, Cards and Payments income increased 1% to £4,504m driven by continued business growth, a gain of £192m relating to the Q117 asset sale in US Cards and a valuation gain on Barclays' preference shares in Visa Inc. of £74m, partially offset by the non-recurrence of the £464m gain on the disposal of Barclays' share of Visa Europe Limited in 2016
●	Credit impairment charges increased 11% to £1,506m, including the appreciation of average USD and EUR against GBP
	-	CIB credit impairment charges decreased 18% to £213m primarily due to the non-recurrence of oil and gas single name charges in 2016, offset by a single name charge in 2017
	-	Consumer, Cards and Payments credit impairment charges increased 18% to £1,293m primarily due to a £168m charge in Q317 relating to deferred consideration from the Q117 asset sale in US Cards, an increase in underlying delinquency trends and business growth in US Cards. This was partially offset by the non-recurrence of a £120m charge in 2016 following the management review of the cards portfolio impairment modelling. The 30 and 90 day arrears rates within US Cards were stable at 2.6% (December 2016: 2.6%) and 1.3% (December 2016: 1.3%) respectively, including a benefit from the Q117 asset sale in US Cards
●	Operating expenses increased 4% to £9,855m, including the appreciation of average USD and EUR against GBP
	-	CIB operating expenses increased 2% to £7,742m reflecting a provision of £240m in respect of Foreign Exchange matters recognised in Q417, continued investment in technology, partially offset by lower restructuring charges and the reduced impact of the change in compensation awards introduced in Q416
	-	Consumer, Cards and Payments increased 15% to £2,113m including continued growth and investment, primarily within the US Cards and merchant acquiring businesses
●	Other net income increased to £254m (2016: £32m) due to a gain of £109m on the sale of Barclays' share in VocaLink to MasterCard and a gain of £76m on the sale of a joint venture in Japan
●	Attributable profit reduced to £847m (2016: £2,412m) including the net tax charge due to the re-measurement of US DTAs in Q417

 

Balance sheet

 

●	Loans and advances to banks and customers at amortised cost decreased £12.6bn to £198.7bn with CIB decreasing £11.5bn to £160.1bn due to a reduction in lending. Consumer, Cards and Payments decreased £1.1bn to £38.6bn due to the depreciation of period end USD against GBP, partially offset by the realignment of certain clients from Barclays UK to Barclays International in preparation for structural reform
●	Trading portfolio assets increased £39.8bn to £113.0bn due to increased activity
●	Derivative financial instrument assets and liabilities increased £80.0bn to £236.2bn and £77.2bn to £237.8bn respectively, reflecting the integration of balances from Non-Core on 1 July 2017, partially offset by adoption of daily settlements under the Chicago Mercantile Exchange (CME), an increase in major interest rate forward curves and the depreciation of period end USD against GBP
●	Financial assets designated at fair value increased £41.8bn to £104.1bn primarily due to increased reverse repurchase agreements activity
●	Customer deposits increased £8.9bn to £225.1bn, with Consumer, Cards and Payments increasing £9.2bn to £59.2bn driven by the realignment of certain clients from Barclays UK to Barclays International in preparation for structural reform
●	RWAs decreased £2.4bn to £210.3bn due to the net impact of the re-measurement of US DTAs and the depreciation of period end USD against GBP, partially offset by increased trading portfolio and securities financing transaction volumes

 

Head Office	Year ended	Year ended
	31.12.17	31.12.16
Income statement information	£m	£m	% Change
Net interest income	(435)	(183)
Net fee, commission and other income1	276	286	(3)
Total income	(159)	103
Credit impairment charges and other provisions	(17)	-
Net operating (expenses)/income	(176)	103
Operating expenses excluding UK bank levy and litigation and conduct	(277)	(135)
UK bank levy	(41)	(2)
Litigation and conduct	(151)	(27)
Operating expenses	(469)	(164)
Other net (expenses)/income	(189)	128
(Loss)/profit before tax	(834)	67
Attributable (loss)/profit	(868)	110
Balance sheet information	£bn	£bn
Total assets	39.7	75.2
Risk weighted assets2	31.8	53.3
Period end allocated tangible equity	10.0	9.7
Performance measures
Average allocated tangible equity (£bn)	9.3	6.5

 

1	Following the early adoption of the own credit provisions of IFRS 9 on 1 January 2017, own credit, which was previously reported in net fee, commission and other income, is now recognised in other comprehensive income. The comparative figure for net fee, commission and other income included own credit.
2	Includes Africa Banking RWAs of £6.4bn (December 2016: £42.3bn).

 

2017 compared to 2016

 

Income statement

 

●	Loss before tax was £834m (2016: profit of £67m)
●	Total income reduced to an expense of £159m (2016: income of £103m) primarily due to lower net income from treasury operations
●	Operating expenses increased to £469m (2016: £164m) due to costs associated with Non-Core assets and businesses, which were integrated on 1 July 2017, and increased litigation and conduct costs, including a settlement to resolve the civil action brought by the US Federal Energy Regulatory Commission's Office of Enforcement and provisions for other legacy redress
●	Other net expenses were £189m (2016: income of £128m) driven by an expense of £180m on the recycling of the currency translation reserve to the income statement on the sale of Barclays Bank Egypt. 2016 included a gain due to recycling of the currency translation reserve on disposal of the Southern European cards business

 

Balance sheet

 

●	Total assets decreased to £39.7bn (December 2016: £75.2bn) primarily due to the accounting deconsolidation of BAGL, which accounted for £65bn of total assets on deconsolidation from the Barclays Group. This was partially offset by the integration of Non-Core assets on 1 July 2017, of which c.£9bn related to Italian mortgages
●	RWAs decreased to £31.8bn (December 2016: £53.3bn) reflecting a £31.1bn reduction as a result of the proportional consolidation of BAGL, partially offset by the integration of Non-Core assets

 

Barclays Non-Core Results

 

The Non-Core segment was closed on 1 July 2017 with the residual assets and liabilities reintegrated into, and associated financial performance subsequently reported in, Barclays UK, Barclays International and Head Office. Financial results up until 30 June 2017 are reflected in the Non-Core segment within the Group's results for the year ended 31 December 2017.

 

Barclays Non-Core	Six months ended	Year ended
	30.06.17	31.12.16
Income statement information	£m	£m
Net interest income	(112)	160
Net trading income	(488)	(1,703)
Net fee, commission and other income	70	379
Total income	(530)	(1,164)
Credit impairment charges and other provisions	(30)	(122)
Net operating expenses	(560)	(1,286)
Operating expenses excluding UK bank levy and litigation and conduct	(256)	(1,509)
UK bank levy	-	(76)
Litigation and conduct	(28)	(246)
Operating expenses	(284)	(1,831)
Other net income	197	331
Loss before tax	(647)	(2,786)
Attributable loss	(419)	(1,916)

 

	Q417	Q317	Q217	Q117		Q416	Q316	Q216	Q116
Income statement information	£m	£m	£m	£m		£m	£m	£m	£m
Net interest income	-	-	(123)	11		(54)	78	40	96
Net trading income	-	-	(411)	(77)		(462)	(288)	(463)	(490)
Net fee, commission and other income	-	-	78	(8)		97	51	79	152
Total income	-	-	(456)	(74)		(419)	(159)	(344)	(242)
Credit impairment charges and other provisions	-	-	(27)	(3)		(47)	(20)	(26)	(29)
Net operating expenses	-	-	(483)	(77)		(466)	(179)	(370)	(271)
Operating expenses excluding UK bank levy and litigation and conduct	-	-	(108)	(148)		(341)	(311)	(368)	(489)
UK bank levy	-	-	-	-		(76)	-	-	-
Litigation and conduct	-	-	(19)	(9)		(51)	(102)	(27)	(66)
Operating expenses	-	-	(127)	(157)		(468)	(413)	(395)	(555)
Other net income/(expenses)	-	-	204	(7)		146	498	(324)	11
Loss before tax	-	-	(406)	(241)		(788)	(94)	(1,089)	(815)
Tax credit	-	-	207	75		322	194	229	237
(Loss)/profit after tax	-	-	(199)	(166)		(466)	100	(860)	(578)
Non-controlling interests	-	-	(8)	(9)		(14)	(13)	(12)	(10)
Other equity instrument holders	-	-	(19)	(18)		(18)	(15)	(15)	(15)
Attributable (loss)/profit	-	-	(226)	(193)		(498)	72	(887)	(603)
Balance sheet information	£bn	£bn	£bn	£bn		£bn	£bn	£bn	£bn
Loans and advances to banks and customers at amortised cost	-	-	48.3	49.5		51.1	58.7	68.5	55.4
Derivative financial instrument assets	-	-	150.3	164.2		188.7	253.2	262.8	249.7
Derivative financial instrument liabilities	-	-	143.0	155.3		178.6	243.0	253.4	239.1
Reverse repurchase agreements and other similar secured lending	-	-	-	-		0.1	0.1	0.1	0.7
Financial assets designated at fair value	-	-	12.1	13.4		14.5	15.5	15.4	23.4
Total assets	-	-	233.0	249.1		279.7	359.8	379.1	365.4
Customer deposits	-	-	11.8	12.9		12.5	16.0	17.4	19.3
Risk weighted assets	-	-	22.8	27.4		32.1	43.9	46.7	50.9

 

Discontinued Operation Results

 

On 1 March 2016, Barclays announced its intention to reduce the Group's 62.3% interest in BAGL to a level which would permit Barclays to deconsolidate BAGL from a regulatory perspective and, prior to that, from an accounting perspective. From this date, BAGL was treated as a discontinued operation. On 5 May 2016, Barclays sold 12.2% of the Group's interest in BAGL and on 1 June 2017 Barclays sold a further 33.7% of BAGL's issued share capital, resulting in the accounting deconsolidation of BAGL from the Barclays Group. At this time, Barclays' holding in BAGL technically met the requirements to be treated as an Associate. However, following a revision of its governance rights in July 2017 and the difference being immaterial, the holding was treated as an AFS asset from the transaction date.

 

In Q317 Barclays contributed 1.5% of BAGL's ordinary shares to a Black Economic Empowerment scheme, resulting in Barclays accounting for 126 million ordinary shares in BAGL, representing 14.9% of BAGL's issued share capital. The retained investment is reported as an AFS asset in the Head Office segment, with Barclays' share of BAGL's dividend recognised in the Head Office income statement.

 

For regulatory reporting purposes, BAGL is treated on a proportional consolidated basis based on a holding of 14.9% as at Q417. Subject to regulatory approval, Barclays expects to fully deconsolidate BAGL from a regulatory perspective by the end of 2018.

 

Africa Banking	Year ended	Year ended
	31.12.171	31.12.16
Income statement information	£m	£m
Net interest income	1,024	2,169
Net fee, commission and other income	762	1,577
Total income	1,786	3,746
Credit impairment charges and other provisions	(177)	(445)
Net operating income	1,609	3,301
Operating expenses excluding UK bank levy and impairment of Barclays' holding in BAGL	(1,130)	(2,345)
UK bank levy	-	(65)
Other net income excluding loss on sale of BAGL	5	6
Profit before tax excluding impairment of Barclays' holding in BAGL and loss on sale of BAGL	484	897
Impairment of Barclays' holding in BAGL	(1,090)	-
Loss on sale of BAGL	(1,435)	-
(Loss)/profit before tax	(2,041)	897
Tax charge	(154)	(306)
(Loss)/profit after tax	(2,195)	591
Attributable (loss)/profit	(2,335)	189

 

1	The Africa Banking income statement represents five months of results as a discontinued operation to 31 May 2017.

 

	Q417	Q317	Q2171	Q117		Q416	Q316	Q216	Q116
Income statement information	£m	£m	£m	£m		£m	£m	£m	£m
Net interest income	-	-	407	617		626	561	502	480
Net fee, commission and other income	-	-	297	465		441	421	377	338
Total income	-	-	704	1,082		1,067	982	879	818
Credit impairment charges and other provisions	-	-	(71)	(106)		(105)	(96)	(133)	(111)
Net operating income	-	-	633	976		962	886	746	707
Operating expenses excluding UK bank levy and impairment of Barclays' holding in BAGL	-	-	(477)	(653)		(727)	(598)	(543)	(477)
UK bank levy	-	-	-	-		(65)	-	-	-
Other net income excluding loss on sale of BAGL	-	-	3	2		2	2	1	1
Profit before tax excluding impairment of Barclays' holding in BAGL and loss on sale of BAGL	-	-	159	325		172	290	204	231
Impairment of Barclays' holding in BAGL	-	-	(206)	(884)		-	-	-	-
Loss on sale of BAGL	-	-	(1,435)	-		-	-	-	-
(Loss)/profit before tax	-	-	(1,482)	(559)		172	290	204	231
(Loss)/profit after tax	-	-	(1,537)	(658)		71	209	145	166
Attributable (loss)/profit	-	-	(1,534)	(801)		(52)	85	70	86
Balance sheet information	£bn	£bn	£bn	£bn		£bn	£bn	£bn	£bn
Total assets	-	-	-	66.0		65.1	61.1	56.0	52.7
Risk weighted assets2	-	-	9.8	41.3		42.3	39.9	36.1	33.9

 

1	The Q217 Africa Banking income statement represents two months of results as a discontinued operation to 31 May 2017.
2	RWAs at 31 December 2017 of £6.4bn (September 2017: £8.6bn) are reported in Head Office.

 

Quarterly Results Summary

 

Barclays Group
	Q417	Q317	Q217	Q117		Q416	Q316	Q216	Q116
Income statement information	£m	£m	£m	£m		£m	£m	£m	£m
Net interest income	2,272	2,475	2,579	2,519		2,523	2,796	2,530	2,688
Net fee, commission and other income	2,750	2,698	2,479	3,304		2,469	2,650	3,442	2,353
Total income	5,022	5,173	5,058	5,823		4,992	5,446	5,972	5,041
Credit impairment charges and other provisions	(573)	(709)	(527)	(527)		(653)	(789)	(488)	(443)
Net operating income	4,449	4,464	4,531	5,296		4,339	4,657	5,484	4,598
Operating expenses excluding UK bank levy and litigation and conduct	(3,621)	(3,274)	(3,398)	(3,591)		(3,812)	(3,581)	(3,425)	(3,747)
UK bank levy	(365)	-	-	-		(410)	-	-	-
Litigation and conduct	(383)	(81)	(715)	(28)		(97)	(741)	(447)	(78)
Operating expenses	(4,369)	(3,355)	(4,113)	(3,619)		(4,319)	(4,322)	(3,872)	(3,825)
Other net income/(expenses)	13	(2)	241	5		310	502	(342)	20
Profit before tax	93	1,107	659	1,682		330	837	1,270	793
Tax (charge)/credit	(1,138)	(324)	(305)	(473)		50	(328)	(467)	(248)
(Loss)/profit after tax in respect of continuing operations	(1,045)	783	354	1,209		380	509	803	545
(Loss)/profit after tax in respect of discontinued operation	-	-	(1,537)	(658)		71	209	145	166
Attributable to:
Ordinary equity holders of the parent	(1,294)	583	(1,401)	190		99	414	677	433
Other equity instrument holders	181	157	162	139		139	110	104	104
Non-controlling interests	68	43	56	222		213	194	167	174
Balance sheet information	£bn	£bn	£bn	£bn		£bn	£bn	£bn	£bn
Total assets	1,133.2	1,149.3	1,135.3	1,203.8		1,213.1	1,324.0	1,351.3	1,248.9
Risk weighted assets	313.0	324.3	327.4	360.9		365.6	373.4	366.3	363.0
CRR leverage exposure	1,124.5	1,150.6	1,122.1	1,196.9		1,125.5	1,185.1	1,155.4	1,082.0
Performance measures
Return on average tangible shareholders' equity	(10.3%)	5.1%	(11.0%)	1.8%		1.1%	3.6%	5.8%	3.8%
Average tangible shareholders' equity (£bn)	48.1	48.9	49.3	49.4		48.9	49.4	48.3	48.3
Cost: income ratio	87%	65%	81%	62%		87%	79%	65%	76%
Loan loss rate (bps)	56	66	49	47		58	66	41	40
Basic (loss)/earnings per share	(7.3p)	3.7p	(8.0p)	1.3p		0.8p	2.6p	4.2p	2.7p
Basic (loss)/earnings per share in respect of continuing operations	(7.3p)	3.7p	1.0p	6.1p		1.1p	2.1p	3.8p	2.2p

 

Quarterly Results by Business

 

Barclays UK
	Q417	Q317	Q217	Q117		Q416	Q316	Q216	Q116
Income statement information	£m	£m	£m	£m		£m	£m	£m	£m
Net interest income	1,540	1,501	1,534	1,511		1,502	1,569	1,476	1,501
Net fee, commission and other income	330	351	286	330		326	374	467	302
Total income	1,870	1,852	1,820	1,841		1,828	1,943	1,943	1,803
Credit impairment charges and other provisions	(184)	(201)	(220)	(178)		(180)	(350)	(220)	(146)
Net operating income	1,686	1,651	1,600	1,663		1,648	1,593	1,723	1,657
Operating expenses excluding UK bank levy and litigation and conduct	(1,117)	(980)	(974)	(959)		(989)	(904)	(947)	(952)
UK bank levy	(59)	-	-	-		(48)	-	-	-
Litigation and conduct	(53)	(11)	(699)	4		(28)	(614)	(399)	(1)
Operating expenses	(1,229)	(991)	(1,673)	(955)		(1,065)	(1,518)	(1,346)	(953)
Other net (expenses)/income	(5)	1	(1)	-		-	-	(1)	-
Profit/(loss) before tax	452	661	(74)	708		583	75	376	704
Attributable profit/(loss)	245	423	(285)	470		383	(163)	141	467
Balance sheet information	£bn	£bn	£bn	£bn		£bn	£bn	£bn	£bn
Loans and advances to customers at amortised cost	183.8	182.2	166.6	164.5		166.4	166.6	166.0	166.2
Total assets	237.4	230.4	203.4	203.0		209.6	209.1	204.6	201.7
Customer deposits	193.4	189.3	187.4	184.4		189.0	185.5	181.7	179.1
Risk weighted assets	70.9	70.0	66.1	66.3		67.5	67.4	67.1	69.7
Performance measures
Return on average allocated tangible equity	10.7%	18.4%	(12.7%)	21.6%		18.2%	(7.1%)	6.6%	20.5%
Average allocated tangible equity (£bn)	9.6	9.4	8.7	8.9		8.6	8.7	9.0	9.3
Cost: income ratio	66%	54%	92%	52%		58%	78%	69%	53%
Loan loss rate (bps)	39	43	52	43		42	82	52	34
Net interest margin	3.32%	3.28%	3.70%	3.69%		3.56%	3.72%	3.56%	3.62%